AzBusiness magazine ~ Nov / Dec 2011 by AZ Big Media

Deciding to take an active role in my own I taught my three children to never healthcare, I wanted an expert team I could count give up. After my breast cancer diagnosis on. I enrolled in the Executive Health Program. I followed my own advice and got a My answer was Mayo Clinic.

second opinion. There’s always hope. My answer was Mayo Clinic.

Michelle King Robson, Phoenix, AZ founder, chairperson and CEO, EmpowHER.com Kim Loving, St. Augustine, FL

Like Kim, thousands of patients come to Mayo Clinic every year for cancer treatment, diagnosis or a second opinion. Our team approach to care means you have a compassionate group of specialists - all Michelle empowered byWe thework Mayowith Clinic Executive Health Program, and which comprehensive workingwas together for you. many insurance companies areperforms an in-network providerphysical for examinations in a compressed time period, and not just for busy executives. Mayo Clinic combines diagnostic many people, most of whom don’t need a physician’s referral. Requesting an appointment is easy at www. expertise with internationally recognized care and service. The Executive Health program is available at Mayo mayoclinic.org/cancer. Find AZ; yourRochester, answer at Mayo Clinic. Clinic in Phoenix/Scottsdale, MN; and Jacksonville, FL. To schedule an appointment, visit mayoclinic.org/executive-health or call (866) 518-4237.

TABLE OF CONTENTS CENTENNIAL SERIES

ALPHA //

EDITOR’S LETTER // .29 INVENTORS AND INNOVATORS HAVE SHAPED HISTORY

.12

HEALTH

.16

LEGAL

.20

EDUCATION

.24

TOURISM

.31

CFO AWARDS

.56

DLA

.66

MAC AWARDS

.70

AzBA

.78

FINANCE

.06 CEO SERIES

.08 FIRST JOB

.10 ALPHA WOMEN

.68 .81

CORPORATE ANGELS

.97

SBLA

.98

SPIRIT OF ENTERPRISE

.105

VALLEY FORWARD

4 AB | November-December 2011

DINING

Access Az Business online with this QR code

The banking industry has taken quite a few shots lately. In September, the Federal Housing Finance Agency sued 17 banks, alleging that they sold almost $200 billion in high-risk mortgage loans to Fannie Mae and Freddie Mac without full disclosure. And you haven’t been able to turn on a TV or pick up a newspaper without being bombarded with coverage of the Occupy Wall Street protests that have been held in Phoenix and across the country. There’s no denying that banks deserve some of the blame for the shots they have taken. But there is also no denying what the banking industry means to Arizona. In this issue of AB, we examine the banking industry in Arizona. We also look at corporate giving and how the economic downturn has changed the way businesses are giving back to the community. Which brings us back to banking. Did you know: > Charitable donations by Arizona banks totaled $15.5 million in 2010? > Arizona bank employees donated 211,615 in volunteer hours in 2010? Add that the banking industry employs more than 42,000 in Arizona and contributes $240 million in state income tax and you see that while protesters are trying to Occupy Wall Street, the banking industry continues to occupy a place of significance in the economy and in the communities of Arizona.

Michael Gossie Managing Editor

PRESIDENT & CEO: MICHAEL ATKINSON PUBLISHER: CHERYL GREEN VICE PRESIDENT OF OPERATIONS: AUDREY WEBB EDITORIAL

AZNOW.BIZ

MANAGING EDITOR: MICHAEL GOSSIE EDITOR: PETER MADRID ASSISTANT EDITOR: KRISTINE CANNON

ON THE WEB

INTERNS: ISABELLE NOVAK | HAYDEN HARRISON KAITLYN CARL | ERICK O’DONNELL

NOVEMBER //

CONTRIBUTING WRITERS: NICOLE KLAUSS | RENEE TARGOS | GERI KOEPPEL BECKY LARSEN | KASIA MARCISZEWSKA SHELBY HILL ART SENIOR GRAPHIC DESIGNER: MIKE MERTES SENIOR GRAPHIC DESIGNER: BRANDON DEVINE CONTRIBUTING PHOTOGRAPHERS: DUANE DARLING | JERRY PORTELLI CORY BERGQUIST DIGITAL MEDIA DIRECTOR: KIM MILTON WEB & GRAPHIC DESIGNER: MELISSA GERKE MARKETING/EVENTS MANAGER: WHITNEY FLETCHER INTERN: MORGAN JOHNSON OFFICE SPECIAL PROJECTS MANAGER: SARA FREGAPANE EXECUTIVE ASSISTANT: KATHY MUTSCHLER DATABASE SOLUTIONS MANAGER: CINDY JOHNSON

BIZ Whether you’re a C-Level executive, an entrepreneur, a small business owner, or work for a corporation, you can find information on the latest issues and trends in health care, law, small business, politics, work force, tech and finance. You also can find the latest articles from Arizona Business Magazine.

NOVEMBER 8 — SOCIAL MEDIA SHOP SHOPTAB ALLOWS YOU TO SHOWCASE YOUR PRODUCTS, SERVICES ON YOUR FACEBOOK FAN PAGE.

ARIZONA BUSINESS MAGAZINE

NOVEMBER 22 — SHOP FOR CHARITY

SENIOR ACCOUNT MANAGER: DAVID HARKEN ACCOUNT MANAGERS: MICHELLE MCBAY | SHANNON SPIGELMAN ARIZONA COMMERCIAL REAL ESTATE ACCOUNT MANAGERS: KEVIN SMALL | JOHN ABBEY RANKING ARIZONA VICE PRESIDENT / SALES & MARKETING: LENORE GROBSTEIN EXPERIENCE ARIZONA/PLAYBALL ACCOUNT MANAGER: LISA GRANT

BUZZ Because you’re more than your job, AZNow.biz offers tips, resources and articles in our dining, executive lifestyle, health and wellness, product reviews, travel, events and green departments.

SHOPPERS TURN TO INNOVATIVE WAYS TO HELP THEIR FAVORITE NONPROFITS THIS HOLIDAY SEASON.

DECEMBER //

SCOTTSDALE LIVING

DECEMBER 13 — A LASTING IMPRESSION

ACCOUNT MANAGER: DAVID SILVER AZ BIG MEDIA EXPOS AZ HOME & BUILDING EXPO BIG GREEN EXPO & CONFERENCE SCOTTSDALE HOME, ART & GARDEN SHOW, PHOENIX WOMEN’S EXPO EXHIBIT DIRECTORS: KERRI BLUMSACK | TINA ROBINSON | SHERI KING HOME & DESIGN IDEA CENTER SHOWROOM MANAGER: JOANNE STANLEY ACCOUNT MANAGER: MARIANNE AVILA EVENT COORDINATOR: SARA FREGAPANE

Arizona Business Magazine is published bi-monthly by AZ BIG Media, 3101 N. Central Ave. Suite 1070, Phoenix, Arizona 85012, (602) 277-6045. The publisher accepts no responsibility for unsolicited manuscripts, photographs or artwork. Submissions will not be returned unless accompanied by a SASE. Single copy price $4.95. Bulk rates available. Copyright 2011 by Arizona Business. All rights reserved. No part of this publication can be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system, without permission in writing from Arizona Business Magazine.

BEYOND Here’s your chance to have your voice heard. Our Beyond section is where you or your company can contribute whitepapers, blogs, photos and top-10 lists. You’ll also find videos, podcasts, infographics, a calendar of events and contests.

AROUND FOR NEARLY 40 YEARS, LOCAL VENUE YUCCA TAP ROOM SHARES ITS BUSINESS STRATEGIES.

DECEMBER 27 — DADDY DO-IT-ALL LOVING PARENTS AND SUCCESSFUL BUSINESSMEN — LOCAL DADPRENEURS SUCCESSFULLY JUGGLE BOTH. AB | November-December 2011 5

ALPHA // CEO SERIES

JIM TETER PRESIDENT & CEO GOODWILL INDUSTRIES OF CENTRAL ARIZONA

WHY MOVE TO A NONPROFIT AFTER ALL YOUR SUCCESS IN FOR-PROFIT INDUSTRIES? Goodwill’s board of directors was looking for a little bit different direction as we continued to grow. They were looking for someone that had business experience because we operate Goodwill like a business, but they also wanted someone who had nonprofit experience as well. I’ve been involved in nonprofits as a volunteer for more than 25 years, but I’ve run larger business operations. I think the board of directors found that appealing. It’s given me a chance to use all my experience to help make a difference for Goodwill. At the end of the day, that’s what it’s about: helping Goodwill be all it can be as we grow and get bigger. HAS THE ECONOMIC BUST BEEN A BOON FOR GOODWILL? Because of the nature of what Goodwill does, which is a thrift retail business, we tend to fare a lot better in difficult economic times than most businesses. Up until 2007, we were growing 20 to 22 percent a year. In the years during the recession, we’re still growing at 11 or 12 percent a year. So this has been an opportunity for us to introduce some new people to Goodwill because a lot of people are looking for the values that they find when they shop at Goodwill, so our customer counts are up and our revenues are up.

experiences. We still have a lot of entry-level employees that are seeking jobs ... but we have people that have college degrees, masters degrees, PhDs. What we offer them, at no cost to them, is a convenient way to build resumes and learn skills they didn’t have so they can move into a different industry. A lot of people are finding that attractive and taking advantage of that. WHERE DO YOU SEE GOODWILL 10 YEARS FROM NOW? We believe we can continue to grow. The only reason we want to be bigger is so we can reach out and serve more people and help more people prepare for and find jobs. I kind of wish we could put ourselves out of business, but I don’t think that’s going to happen. When people ask, ‘Who can help someone with employment and job training?’ I want Goodwill to be the first thing that comes to mind. That’s where we would like to be in the next five to 10 years.

see the video on

VITAL STATS: JIM TETER ARE YOU SEEING A SHIFT IN DONATIONS? We’ve found that people tend to hang on to things a 44Joined Goodwill in 2008 little bit longer. But the good news is we have more people 44Before Goodwill, was Chief Operating Officer of Calence, LLC in Tempe donating. Our donation counts are up about nine percent 44Graduate of Texas Tech University with a bachelor of science degree in year over year. I think that’s because people know that we industrial engineering are going to get the most value out of their donations, and 44Co-chaired South Texas United Way’s business campaigns, served on the we help a lot of people prepare for and find work. That’s Board of the American Heart Association what we are about: helping people find work. 44Actively supported Respite Care of San Antonio, Hacienda de los Angeles in Phoenix and Paiute Neighbor Association in Scottsdale HOW HAS THE HIGH UNEMPLOYMENT RATE IMPACTED 44Member of the Association for Corporate Growth, Arizona Business GOODWILL’S GOAL OF PUTTING PEOPLE TO WORK? Leadership, Phoenix Community Alliance, Organization for Non-Profit People that are coming into Goodwill’s career centers Executives and Greater Phoenix Leadership today are quite diverse in their backgrounds and their 6 AB | November-December 2011

“I wish for a princess party.” Mikaela, age 2½ Mikaela is a little girl from Surprise with progressive lung disease. Even though she is ventilator-dependent and non-verbal, her parents knew a princess-themed party would fulfill her greatest wish. That wish came true thanks to Make-A-Wish Foundation of Arizona. ®

All of her favorite princesses attended, and the day was filled with lots of balloons, bubbles, fairy wands, and presents. “This was the best memory I have with her,” said mom, Melody.

Read Mikaela’s full story and donate online at wishaz.org.

Make-A-Wish Foundation of Arizona 602-395-9474 711 East Northern Avenue Phoenix, AZ 85020

This ad was generously donated by Stevens Leinweber Construction.

ALPHA // FIRST JOB

TAMMY WEINBAUM SENIOR VP AND GENERAL MANAGER AMERICAN EXPRESS

DESCRIBE YOUR VERY FIRST JOB AND WHAT YOU LEARNED FROM IT. I was a water girl at a deli in Florida. My job was to make sure that as soon as customers were seated, their water glasses were filled; and when they were finished eating, their tables were cleared as quickly as possible. The major lesson I learned from this job was to listen to the customer. DESCRIBE YOUR FIRST JOB IN YOUR INDUSTRY. It was at American Express, where I’m still employed today. My first role was as a customer service clerk, which was proofreading. I was spellcheck before it existed. WHAT WERE YOUR SALARIES? My salary as a water girl was $2.10 per hour plus tips, so providing excellent customer service was very important to me. My first salary at American Express, my first industry job, was $13,500 annually. WHO IS YOUR BIGGEST MENTOR? My parents, David and Cookie. They gave me one of the greatest gifts that has carried me through personally and professionally, and that’s the confidence to believe that I could do anything that I wanted. WHAT ADVICE WOULD YOU GIVE TO A PERSON ENTERING YOUR INDUSTRY? Don’t ever lose sight of who your customers are. IF YOU WEREN’T DOING THIS, WHAT WOULD YOU BE DOING INSTEAD? One of the things I love is giving back to the community. If I weren’t doing this job, I’d be serving others through a role in community service. 8 AB | November-December 2011

Photo by Jerry Portelli

AB | November-December 2011 9

ALPHA // AZ WOMEN

NETWORKING OFFLINE WOMAN-RUN EVENTS AND ONLINE NETWORKING TOOLS PROVE B2B, FACE-TO-FACE NETWORKING AS THE NO. 1 WAY TO GROW BUSINESS BY KRISTINE CANNON Many business owners have embraced Facebook and Twitter as a way to build virtual relationships with their customers. “As far as social media goes, I think it has allowed people to believe that they can (network) very easily, and that they can do it well,” says Raven Valdes, owner of Raven Events. But are those businesses’ face-to-face networking skills up to par? Two networking powerhouses, Raven Events and NetworkingPhoenix.com, help make networking easy by providing a means to navigate and filter through the hundreds of available mixers, as well as providing their own businessto-business (B2B) networking events. Gelie Akhenblit, founder of NetworkingPhoenix.com, says although the ease of online networking has made global communication possible, people are more interested in doing business with others in their community. NetworkingPhoenix.com is an online resource for the Valley business networking community listing more than 500 events with more than 18,000 registered members. “People ask me if I think my business will change once the economy recovers,” Akhenblit says. “Face-to-face networking will never go out of style. Networking will always be the No. 1 way to find jobs, clients and meet key people.” These B2B networking mixers provide a platform where like-minded individuals can make their introductions in hopes to build longlasting relationships, according to Valdes. “To all of the exhibiting businesses at my networking events, I encourage them all the time to be proactive,” Valdes says. “There’s not problem with walking up to somebody, shaking their hands, telling them who you are, what you’re about, and why they need to know you.” While talking business is important, Akhenblit emphasizes that gaining clients and referrals is made through building friendships, instead of treating networking

Gelie Akhenblit, founder of NetworkingPhoenix.com 10 AB | November-December 2011

events as sales opportunities, which she says is not true networking. Valdes emphasizes the personal, human aspect of face-toface, B2B mixers and networking events that emailing, Facebook and Twitter can’t provide. “(B2B networking events) are beneficial because there’s still nothing more important than the handshake or looking to somebody’s eyes,” Valdes says. “You can’t really evolve that kind of confidence through any other way, without this face to face.” Both NetworkingPhoenix.com and Raven Events, which has a mailing list of more than 35,000 people, have witnessed an increase in attendance for the three and nine years they have been in business, respectively. NetworkingPhoenix. com’s Signature Event, held four times a year, attracts more than 1,500 networkers. Raven Events, holds social and B2B events with attendance ranging from 400 to 1,500 people. According to Akhenblit, B2B mixers also provide a way to save time scheduling many meetings a week, as well as getting valuable feedback about your business. “Talking to people out and about is a great way to gather research,” Akhenblit says. “People are happy to share their opinions about our company, our products, their experiences, etc.” Valdes adds that networking events are not only providing an outlet to build friendships, connections and possible business, but they are also supporting the local economy. “Raven Events is not only bringing fun, effective events to people of the Valley, but it is also hiring entertainers,” Valdes says. “I hire photographers, DJs, bands and others in the industry — even comedians and magicians. I market and brand them throughout my process of the event, and the participating exhibitors within the event, too.” For a calendar of upcoming networking events, visit www.RavenEvents.com or NetworkingPhoenix.com. z Photo by Jerry Portelli

Raven Valdes, owner of Raven Events

Voted #1 ! 7 times

www.wist.com

2002, 2006, 2007, 2008, 2009, 2010 & 2011!

x FREE NEXT DAY DELIVERY x LOCALLY-OWNED x NO MINIMUM ORDER CHARGES

As a local family owned business since 1955, Wist offers quality office products at exceptionally low prices. Order online or with customer service and receive your products next day with no minimum order charges.

Office Supplies x Computer Supplies x Office Furniture x Toner Supplies

www.wist.com

Phone 480.921.2900 x 800.999.WIST (9478) x Fax 480.921.2121 x 800.955.7404 107 W. Julie Drive x Tempe, AZ 85283 x PO Box 24118 x Tempe, AZ 85285

HEALTH

IMPACT OF OBAMACARE

SMALL BUSINESSES CONSIDER DROPPING HEALTHCARE INSURANCE IN WAKE OF HIGHER COSTS, HEALTHCARE OVERHAUL BY REBECCA LARSEN

Although most small businesses in Arizona aren’t dropping their healthcare insurance plans right now, some are thinking about doing it when the Obama administration’s Affordable Patient Care Act is fully implemented in 2014. Meanwhile, many small business owners are also looking for new plans that will save them money, but may also slash benefits for their employees. “We’re not seeing a dramatic drop in coverage as of today, but small businesses are asking a lot of questions about the health care reform act,” says Jeff Stelnik, senior vice president of strategy, sales and marketing for Blue Cross Blue Shield of Arizona, which has more small group customers than most other health insurers in the state. “Companies with from two to 49 employees are also thinking about whether it makes sense for them to drop their coverage. Those with from 50 to 100 employees and beyond are 12 AB | November-December 2011

less likely to do that.” On one hand, the smallest companies — from two to 49 workers — are not required to provide insurance for their employees in 2014 and are not subject to any penalties. Those with 50 or more employees will face fines for failing to do so. So that in itself makes it easier for the smallest firms to cancel coverage. Another incentive for small businesses to end insurance benefits is that many now offer plans with high deductibles, ranging from $3,000 to $5,000, and requiring “strong” copayments. These types of plans don’t meet the minimum requirements under the Affordable Patient Care Act. That means that as of 2014, they must upgrade their plans at great expense in order to keep insuring employees. Although some federal tax subsidies will be available to help small companies, it is still expected to be costly for small businesses to provide more generous health

AB | November-December 2011 13

HEALTH

“Companies with from two to 49 employees are also thinking about whether it makes sense for them to drop their coverage. Those with from 50 to 100 employees and beyond are less likely to do that.” benefits to employees. But even though the smallest businesses are considering dropping health insurance, “they absolutely would like to keep it if they can,” Stelnik says. “If small employers drop coverage,

14 AB | November-December 2011

they will probably give employees a bump in pay — another $50 to $75 in their paychecks,” says Thomas Katsenes, president of Katsenes Insurance in Phoenix. “But that’s not going to help those employees much when they go out to buy health insurance.” One of his clients, who owns several fast-food franchises, is considering canceling an insurance plan it has for managers; the business does not cover other employees. The franchise corporate office provides no health insurance. “Those businesses most affected are the ones with fewer employees,” Katsenes says. The full impact of the health reform legislation may not hit until 2014, but some changes already phased in have helped raise current health insurance costs by 15 percent and more,

according to Katsenes. “They’ve already phased in the mandated no-cost wellness benefits (like free mammograms for women) and the unlimited lifetime maximum costs for the insured, and they’re requiring coverage up to age 26 for children,” he says. “All these changes translate into higher premiums.” Another broker, Bob Padgett, president of the Padgett Insurance Agency in the Phoenix area, hasn’t seen any cancellations yet, but some of his clients are looking at plans with $10,000 deductibles as well as partially self-funded insurance plans. “Some businesses are reducing coverage for their employees, passing more of the cost on to them or no longer offering coverage,” says Donna Davis, CEO of the Arizona Small Business Association, a group in which

85 percent of the membership has 100 or fewer employees. “In a recent survey of our members, 74 percent indicated that the cost of healthcare was a significant challenge to the future of their businesses,” she says. “Most businesses have seen consistent year-over-year increases even before the Affordable Patient Care Act was enacted.” Some employers are investigating defined benefit plans that allow six doctor visits per year and pay a limited amount per day for hospitalization, Katsenes says. “I may have a client who will be going for that soon. He has 15 employees to insure. “It’s unknown what lies ahead for small businesses,” Katsenes adds. “So far we’ve dealt with about 900 pages of regulations and another 100,000 pages lie ahead.”

Finding answers on healthcare reform ■ Growing anxiety in the small business community has led health insurers to reach out to customers to help answer their questions. Jeff Stelnik, senior vice president of strategy, sales and marketing for Blue Cross Blue Shield of Arizona, says that more than 4,000 people have attended seminars or webinars on the impact of healthcare reform on businesses or have downloaded a brochure on the topic available on their w ebsite at healthreform.azblue.com/index.php/for-employers/. Cigna health insurance also offers information at www.cigna.com/sites/ healthcare_reform/. ■ The Arizona Small Business Association also provides educational programs, webinars and panel discussions on healthcare reform for its 10,000 – member businesses. It also sends out regular action alerts to members on issues that could affect them. For more information, go to www.asba.com.

Dental Vision Life & Disability Accident, Critical Illness/Cancer & Supplemental Health Medical Stop-Loss

What’s missing from your portfolio of specialty benefits? Our specialty benefits. Specialty Benefits from Humana We’ve combined our Fortune 100 status and 40 years of experience with a broader offering of specialty benefits. You can choose from dental, vision, life, disability, accident, critical illness/cancer, supplemental health, and medical stop-loss. As your partner, our team of experts will help you customize your benefits package and provide friendly, personal service. And we’ll give you the same kind of focused, innovative thinking we’ve provided for the PGA TOUR and other clients through the years. No matter what you’re looking for in specialty benfits, Humana has you covered. Find out more at Humana.com/Specialtybenefits or 480-515-6545 Humana Plans are offered by the Humana Family of Insurance and Health Plan Companies. GCA08CZHH 811

AB | November-December 2011 15

LEGAL

CREATIVE LICENSE PLANNING AND PATIENCE ARE THE KEYS TO PROTECTING INTELLECTUAL PROPERTY By Michael Gossie

Tim Crawley, inventor of the Snappy Grip, is president of the Inventors Association of Arizona 16 AB | November-December 2011

he seed for one of Tim Crawley’s inventions was planted in a teenage promise. “When I was 16, I was (gold) prospecting with my uncle, who had rheumatoid arthritis,” says Crawley, president of the Inventors Association of Arizona. “It tore my heart out to watch him struggle to carry those five-gallon buckets. I told him, ‘Someday, I will fix that.’” Crawley’s “someday” came more than 20 years later when he invented Snappy Grip, a replacement handle for five-gallon buckets that alleviates hand fatigue and makes it infinitely easier to carry them, particularly when they are filled. The product has been embraced by Arizona’s mining industry. One problem: Crawley’s idea was also embraced by a competitor. “Even though I filed my patent application first,” Crawley says, “he got his bucket handle into Home Depot first.” The mistake Crawley made, he admits, was that the claims listed in his patent application were too wordy and allowed his competitor to make a slight adjustment to the design and beat Crawley into the marketplace. Experts say Crawley’s error is just one of many common mistakes individuals and businesses make when it comes time to protect their intellectual property. ”Intellectual Property refers to creations of the mind,” says Robert J. Itri, a shareholder at the Phoenix law office of Gallagher & Kennedy. “Intellectual property includes inventions such as computer chips or new methods of manufacture; literary and artistic works such as novels, films and songs; symbols, names and images used to identify goods and services such as Xerox and Kodak.” When it comes to protecting those superhuman ideas, experts agree that it’s a decidedly human trait that gets most innovators into trouble. “They let the genie out of the bottle,” says Ari Bai, whose practice at the Phoenix law firm of Polsinelli Shughart involves the preparation and filing of foreign and domestic patent applications in the mechanical, electrical and computer disciplines. “People disclose their ideas to Ari Bai others. Professors rush to publish findings before their colleagues. It happens all the time. What people don’t understand is that once that occurs, they are giving up all their foreign patent rights.”

According to Itri, these are the most common mistakes innovators make: » Failing to establish an intellectual property protection policy. » Failing to identify and record intellectual property as it is created. » Failing to ensure that all employees who contributed to the intellectual property have executed invention assignments. » Failing to use non-disclosure agreements and document trade secret policy for employees and business partners. » Waiting too long to file for patent protection. U.S. law provides that a patent application must be filed within 1 year of publication or first offer of sale. » Failing to police the unauthorized use of intellectual property. The failure to do so can, and often does, result in the loss of intellectual property rights.

Protecting intellectual property To best protect its intellectual property rights, Robert J. Itri, a shareholder at the Phoenix law officer of Gallagher & Kennedy, says it is essential for the business to understand the various pieces that make up its intellectual property portfolio and which set of intellectual property rights — patent, trademark, copyright or trade secret — apply. Once identified, the intellectual property should be recorded and, with the exception of trade secrets (which should be closely guarded), registered with the appropriate governmental agency. ■ In the case of patents and trademarks, registration is with the United States Patent and Trademark Office. ■ In the case of copyrights, registration is with the U.S. Copyright office. ■ Trademark owners who have registered their marks with the USPTO and copyright holders who have registered with the Copyright Office may record these rights with the U.S. Customs and Border Protection (“CBP”). The CBP actively monitors imports to prevent the importation of counterfeited and pirated goods. ■ Any business which anticipates that its products or services will be distributed outside the U.S., should register its intellectual property in the country or countries it anticipates the product or services will be distributed. ■ In addition to registration, businesses also need to implement an intellectual property policy. Components of such a policy should include, at a minimum, employee invention and nondisclosure agreements. Intellectual Property protection language should also be developed for the various vendors and distributors with which the business deals. “There’s a big problem in the private sector because companies are pushed to constantly get new products on the market to remain competitive,” says A.J. Moss, an intellectual property attorney with Squire, Sanders & Dempsey in Phoenix. “But if these companies wait too long to protect themselves and their ideas, it wipes out all rights they have to their own ideas and inventions.” A.J. Moss There are four categories of intellectual property rights — patents, trademarks, copyrights and trade secrets. Gallagher & Kennedy’s Itri explains the rights that protect those intellectual properties like this: They are a form of property right that allow creators of intellectual property to benefit from their work or investment in a creation. These rights, which can belong AB | November-December 2011 17

DELIVERING INNOVATIVE SOLUTIONS TODAY TO ACCELERATE DEVELOPMENT OF TOMORROW’S PRODUCTS. TES develops, produces and sustains innovative Integrated Electronic Systems, Hardware and Software.

520-575-7283 www.TucsonEmbedded.com

18 AB | November-December 2011

to individuals or organizations, are recognized by governments and courts. The intellectual property rights system helps to strike a balance between the interests of the innovator and the public interest to establish an environment in which creativity and invention can flourish for all to benefit. But what U.S. intellectual property rights don’t do, experts said, is protect the creator in the global economy. “Just because you have a U.S. patent, that doesn’t protect you overseas,” Moss says. “You have to file for patent protection in every jurisdiction you plan to do business. If you don’t, you leave yourself vulnerable.” And as the Internet has changed the way we do business, it also presents a challenge when companies develop websites to boost revenue. “Just as a wedding photographer owns the copyrights to the photos taken at your wedding, the website developer who designs your website owns the rights to that design,” says John E. Cummerford, co-managing shareholder at Greenberg Traurig in Phoenix. “So if the developer suddenly thinks he wasn’t paid enough to do the job, you could have a problem if you didn’t protect yourself.” To avoid those problems, experts say, John a business is best served by consulting an attorney who has experience in Cummerford obtaining and enforcing intellectual property rights in the jurisdiction in which protection is sought. “I tell other inventors to research the patent attorney they hire,” says Crawley, who has faced costly patent infringement issues on at least three of his inventions. “Make sure they have experience writing patent claims for ideas or inventions that are similar the one you have.” If the worst case scenario happens and unauthorized use of intellectual property is detected, Itri said the property owner should consult an attorney to determine his or her legal rights. In the U.S., patent, trademark and copyrights are typically enforced through federal civil court actions. Claims for trade secret misappropriation are generally pursued through state court proceedings. Generally, an intellectual property owner may obtain both injunctive relief prohibiting and money damages for the infringing activity. In certain circumstances, the law permits enhanced or punitive damages for willful infringement. If unauthorized use is detected abroad, the property owner should consult with a legal professional in the jurisdiction in which the unauthorized use is being made to determine its rights and the process to enforce those rights. “The best way you can protect yourself and your ideas is to plan up front,” Cummerford says. “You can have the best ideas, the best business plan, the best website, the best marketing strategy, and the best product in the world, but it will all be for naught if you fail to protect your intellectual property.”

When other carriers say their networks are bigger, we just smile.

We smile because we offer access to

Get greater access. Get Delta Dental. www.deltadentalaz.com

more than 3,000 individual

dentists in AZ and more than ı35,000 across the country – the most extensive network* nationwide. So the people we cover find it quite easy to find dentists that they prefer – and that’s no small thing. *

Source: 20ı0 Independent NetMinder Data.

AB | November-December 2011 19

EDUCATION

RE-INVENTION VS. EDUCATION UNEMPLOYED WORKERS CAN GO BACK TO SCHOOL OR RE-SHAPE THEIR SKILL TO ENHANCE JOB PROSPECTS BY GERI KOEPPEL

hen Ronald Schilling, 54, of Black Canyon City lost his job as a truck driver in July 2008, the future looked bleak. “I just didn’t see myself at the age I am, getting a job driving a 12-foot box truck and busting my butt for $8 or $9 an hour,” he says. His uncle suggested he go back to school. Now, Schilling is in the honors program at Glendale Community College with a 3.9 grade point average and is on track to enter nursing school. Schilling is one of a growing number of returning students who are re-careering after losing jobs, and many are getting training and education to increase their chances in the competitive job market. Mature students are on the rise in higher education. Between 2000 and 2009, the enrollment of students under age 25 increased by 27 percent, but enrollment of ages 25 and up rose 43 percent, according to the National Center for Education Statistics. The majority of online students at Thunderbird Online are ages 38 to 42, says Joe Patterson, assistant vice president and executive director of Thunderbird Online at Thunderbird School of Global Management. 20 AB | November-December 2011

“I think what it’s changed to is a career lattice or career web. It’s not as linear. You may have to move sideways or diagonally to get to that next opportunity.” – Scott Schulz, Glendale CC Still, the idea of going back to school can be daunting, Online programs allow students to take classes when it’s convenient, and offer accelerated degree programs. Thunderbird Online offers executive certificates for three eight-week accredited non-degree classes, all the way to a full M.B.A in a year. The W. P. Carey School of Business at Arizona State University offers multiple ways to earn an M.B.A., including online. No longer is there a stigma to online education, Patterson says. Even top-tier universities such as Stanford and Cornell offer e-learning. Whether on campus or online, academic classes are more than ivory tower ideas. Instructors usually are also connected to and working in their industries, so they not only know what’s needed in the job market, they can make important referrals. Networking with other students is essential, too. You never know who might pass along that integral inside job tip. Volunteering is another way to get a foot in the door. Schilling, the trucker-turned-nursing student, volunteers each week at John C. Lincoln Deer Valley Hospital in Phoenix. And Mark Scarp of Scottsdale, a newspaper columnist who was laid off in January 2009, parlayed his 20 years of volunteering with the Society of Professional Journalists into a job as membership director with the Society of American Business Editors and Writers. While it’s a good idea to invest in continuing education, career counselors say to assess your strengths, weaknesses, passions and goals first, and keep in mind the idea of career management rather than simply career advancement. “I think we’ve all heard the term ‘climbing the career ladder,’” says Scott Schulz, director of career and employment services at Glendale CC. “I think what it’s changed to is a career lattice or career web. It’s not as linear. You may have to move sideways or diagonally to get to that next opportunity.”

Arizona institutions to go back to school Anthem College, (602) 279-9700, www.anthem.edu Apollo College, (602) 864-1571, www.apollocollege.edu Arizona State University, (6020 496-INFO, www.asu.edu Collins College, (602) 997-2166, www.collinscollege.edu DeVry University, (602) 870-9222, www.phx.devry.edu Grand Canyon University, (877) 860-3951, www.gcu.edu Maricopa County Community College District, (480) 731-8000, www. maricopa.edu. Campuses include Chandler-Gilbert Community College; Estrella Mountain Community College; Glendale Community College; GateWay Community College; Mesa Community College; Paradise Valley Community College; Phoenix College; Rio Salado College; Scottsdale Community College and South Mountain Community College. Northern Arizona University, (800) 426-8315, www.nau.edu Midwestern University, (623) 572-3215, www.midwestern.edu Thunderbird School of Global Management, (602) 978-7000, www.thunderbird.edu University of Arizona, (520) 621-3237, www.arizona.edu University of Phoenix, (866) 766-0766, www.phoenix.edu Western International University, (602) 943-2311, www.west.edu

AB | November-December 2011 21

Daughter and mother nursing students, Rebecca Nelson and Nancy Collins, in one of Glendale Community College’s high-tech labs.

Ronald Schilling, a truck driver turned nursing student at Glendale Community College.

tips for successful re-careering

Check out the hot — and not-so-hot — fields. The Bureau of Labor Statistics (www.bls.gov) gives indications of which fields expect to grow versus lose jobs, so keep that in mind when you’re deciding whether or not to become a social worker (should be a good bet) or a television anchor (not so much). But don’t throw a dart and pick a so-called hot job. Read on.

Don’t start from scratch. Re-careering doesn’t have to mean throwing out your years of work experience. If you’re an IT professional laid off from a tech company, you don’t have to become a nurse. Brush up on privacy law, network security or database management, and apply with a healthcare organization.

Follow your heart. Biotechnology might be the next big thing, but if you find it boring, don’t bother. One of the best predictors of success in a field is your passion for it. Good engineers of any type are usually in demand; mediocre ones are rarely in demand. What interests you?

Take into account the work environment and physical requirements. Do you work well when the pace is fast? Or do you prefer to be introspective and analytical? Do you despise being on your feet all day, or are you miserable sitting in a cube?

Do a 360-review. Call upon peers and colleagues — both former supervisors and employees — to assess your strengths and weaknesses. You might be surprised what others say are your best (and worst) qualities, and what you uniquely bring to a position. 22 AB | November-December 2011

Network, network, network. Whether it’s getting to know fellow students, impressing an instructor, volunteering or doing an internship, it’s essential to make connections with people who can help you with your goals.

7. 8. 9.

Seek professional help. Maricopa County Community Colleges’ career centers are free and open to the public. Go back to school. It can be as simple as taking one course to earning a certificate or a degree.

Look for financial assistance. Subsidized loans, Pell grants and scholarships are available, especially if you’ve lost a job. Even small scholarships add up. Call professional organizations in your field of interest and check the library for lists of scholarships many people don’t even know exist.

10.

Differentiate yourself. Instead of just earning a teaching degree, look into certificates such as English immersion or special education to make you more marketable and malleable. Sources: Joe Patterson, assistant vice president and executive director of Thunderbird Online at Thunderbird School of Global Management; Ruthie Pyles, director of M.B.A. recruitment and admission, the W.P. Carey School of Business at Arizona State University; Scott Schulz, director of career and employment services at Glendale Community College

Center for Workforce Development Division of Academic and Student Affairs

Building Tomorrow’s

Workforce

■ Business & Industry Partnerships ■ Customized Training ■ Programs & Courses to Prepare Students for a Variety of Careers ■ Resources for Transitioning Into the Workforce

Bioscience

Publ

ic S

e& hcar Healt ervices al S Soci

Techn

ology

en t

Gre

gies hnolo

Archite ct Constru ure & ction

afet

ess Busin

urin

act anuf

n& tatio r o p s n Tran stributio Di

Education

Ten colleges and two skill centers dedicated to student success.

www.maricopa.edu/workforce Chandler-Gilbert I Estrella Mountain I GateWay I Glendale | Mesa I Paradise Valley I Phoenix Rio Salado I Scottsdale | South Mountain I Maricopa Skill Center I SouthWest Skill Center MCCCD is an EEO/AA Institution.

TOURISM

DIAMONDS in the DESERT BY MICHAEL TRUELSEN AND TERESA TRUELSEN

The Valley of the Sun is peppered with destinations for weekend getaways, but sometimes a drive down the 51, 101 or 202 doesn’t put enough distance between you and your daily grind. If you want more “away” in your getaway, head south on Interstate 10 to Tucson. The Old Pueblo, with its Southwestern flavor and character, is rich with places to relieve the stress of the work week. Whether your agenda includes romance or family fun, the perfect resort is waiting just down the road. “The tone will be casual, relaxed, and friendly versus the frenzy of activity you might find in Phoenix,” says Jessica Stephens, director of communications and public relations at the Metropolitan Tucson Convention & Visitors Bureau.

24 AB | November-December 2011

The Arizona Inn For a real taste of Tucson and its charm, settle in at the Arizona Inn (2200 E. Elm St., (520) 325-1541, www. arizonainn.com). Founded in 1930 by Arizona’s first congresswoman, Isabella Greenway, the Arizona Inn is on the National Register of Historic Places. This unassuming resort is tucked away in a residential area near the University of Arizona campus, which you can explore on a complimentary bicycle. Relax in a casita-style room with a view of the tranquil central garden, while taking advantage of the Inn’s free Wi-Fi. Finish your day with dinner in the AAA Four Diamond Award-winning dining room. Try the Arizona Inn Getaway package (starting at $499.50), which includes two nights accommodations, a fresh fruit basket and bottle of wine in your room, a three-course dinner for two, and breakfast for two each morning. JW Marriott Starr Pass Resort Hit the links, the spa or both at one of the more recent additions to Tucson’s resort lineup. You won’t see JW Marriott Starr Pass Resort & Spa (3800 W. Starr Pass Blvd., (520) 792-3500, www. jwmarriottstarrpass.com), until you round the bend. With its emerald Arnold Palmer golf courses, it’s a jewel tucked into the rocky Tucson Mountains on the city’s west side. The Hashani Spa offers traditional

Photo courtesy of The Arizona Inn

Photo courtesy of Loews Ventana Canyon

massage and skin care to more exotic Ayurvedic treatments. It’s perfect after a day on the golf course. Bring the kids and make it a family weekend with the Starr Pass Family Fling and Swing Package (starting at $149 per night,), which includes unlimited rounds of golf for up to four people, free meals for kids 12 and younger, plus use of the pools, Lazy River and Monsoon Falls water slide. Loews Ventana Canyon At the east end of the Catalina Mountain foothills, Loews Ventana Canyon Resort (7000 N. Resort Dr., (800) 234-5117, www.loewshotels. com/en/Ventana-Canyon-Resort) has been collecting awards for years, including the AAA Four Diamond for 25 consecutive years. This pet-friendly destination will pamper you and your pooch or kitty. With two golf courses, two pools, hiking trails, five places to grab a bite and a full-service spa, there’s plenty to fill a weekend. Want to really pamper Fluffy? No

problem. Ventana Canyon’s Woofie We e k e n d p a c k a g e o f f e r s accommodations for you and your pet, a “Wag Your Tail Delight” meal for your pet that is delivered to your room, a luxury pet mat, a bowl, mat and tags. And the resort waives the $25 pet cleaning fee. Woof! Ritz Carlton Dove Mountain If it’s relaxation and golf you want – although some might say golf is the opposite of relaxation – try the Ritz Carlton Dove Mountain (15000 N. Secret Springs Dr., Marana, (520) 5723000, www.ritzcarlton.com/en/ Properties/DoveMountain). In the beautiful Tortolita Mountains northwest of Tucson, Dove Mountain’s courses are highly regarded. It is home of the Accenture Match Play Championship, attracting the likes of Tiger Woods, Geoff Ogilvy and Stewart Cink. Play 18 holes on the Jack Nicklaus course, enjoy a 50-minute massage or facial, and get breakfast the next day with the Sonoran Golf and Spa AB | November-December 2011 25

Photo courtesy of Westin La Paloma Resort & Spa

A Unique Downtown Experience Create a refreshing meeting experience at the new Westin Phoenix Downtown Hotel within our 15,000 square-feet of unique and flexible meeting space. Our tastefully designed meeting rooms and elegant ballrooms offer floor to ceiling windows with panoramic views of the city.

CONTACT THE SALES TEAM AT 602.429.3500 LEARN MORE AT WESTINPHOENIXDOWNTOWN.COM

Adventure (starting at $589 per night with a two-night minumum). Or go all out on the links with the Unlimited Golf package (starting at $439 for two people per night). That offer provides unlimited golf, use of all golf practice facilities, and unlimited use of a golf cart. Or skip the golf altogether and indulge in two 50-minute massages with the Signature Spa Deal. Westin La Paloma Resort & Spa In celebration of its 25th anniversary, the Westin La Paloma Resort & Spa (3800 E. Sunrise Dr., (520) 742-6000, www.westinlapalomaresort.com) is offering a great deal. This award-winning resort boasts five pools, a 177-foot water slide, a Jack Nicklaus signature golf course, the Red Door Spa, award-winning chef Janos Wilder’s J-Bar, plus great activities for the kids. Enjoy all this through Dec. 31, with two nights at the resort’s best rate, the third night is $19.86, in honor of the year La Paloma opened. The anniversary deal also includes 25 percent off throughout the resort and spa. Westward Look Resort In the foothills of the Santa Catalina Mountains, the Westward Look Resort (245 E. Ina Rd., (800) 722-2500, www.westwardlook.com) offers another peek into Tucson’s past. The luxurious resort opened in the early 1900s. Its 80 acres are home to three pools, tennis courts, nature trails, stables, a full-service spa and the awardwinning GOLD restaurant, where the chef prepares meals with foods grown in the resort’s garden. Once a month, Westward Look’s Cooking with the Chef program allows visitors to spend a day with executive chef James Wallace, learn about the Chef’s Garden, share a lunch made with the freshest ingredients, and take home recipes from the master. Get in the saddle with the Trail’s End Horseback Riding Package (starting at $480), which includes two guided horseback rides, dinner for two at Lookout Bar & Grill, and a fiesta basket fit for a vaquero with beer, chips and salsa.

26 AB | November-December 2011

WIPHX_AZBusinessAd_3-5x9-625.indd 1

Other resorts to consider: > Omni Tucson National Golf Resort and Spa (2727 W. Club Dr., (520) 297-2271; www.omnihotels.com/ FindAHotel/TucsonNationalGolfResortAndSpa > Hilton El Conquistador Golf & Tennis Resort (10000 N. Oracle Rd., 520-544-5000, www.hiltonelconquistador.com.

10/17/2011 3:58:16 PM

State of minds Arizona inventors and innovations leave an indelible mark in American history | By Noelle Coyle

rizona may have been one of the last states to join the Union, but in its first 100 years, it’s been a leader in revolutionizing America. From nature’s mysteries to healthcare miracles, from sports to education and the exploration of outer space, Arizonans have had a hand in shaping our lives and the way we view the world. NAME THAT SOUND: Frustrated with his putting, avid golfer Karsten Solheim created his “Ping” putter in 1959, named for the sound created when the putter hit the golf ball. Two years later, he moved from California to Arizona and continued to revolutionize golf. His success led to the start of a company that still calls Phoenix home today. RINGS OF TIME: A.E. Douglass, an American astronomer, began researching the idea of tree-ring dating, or dendrochronology, prior to Arizona’s statehood. But the Laboratory of Tree-Ring Research at the University of Arizona wasn’t formed until 1937. He is credited with pinpointing the age of ruins that include the Aztec Ruins in New Mexico and the Mesa Verde cliff dwellings in Colorado. A,B,C AND 1,2,3: Joan Ganz Cooney, who received her B.A. degree in education from the University of Arizona in 1951, was part of a team who captured the hearts and imaginations of children around the world with the development of Sesame Workshop, creators of the popular “Sesame Street,” now in its 42nd season. MARS BROUGHT TO LIFE: Launched into space in August 2008, the Phoenix Mars Lander was the first mission to Mars led by an academic institution, which was the University of Arizona and its principal investigator, Peter Smith, a professor at the school’s Lunar and Planetary Laboratory. HEART TO HEART: The first successful surgery and use of an artificial heart was conducted at the University Medical Center in Tucson by Dr. Jack Copeland in 1985. His patient lived nine days using the Jarvik 7 Total Artificial Heart before he received a donor heart. THE RIPE TEST: Dr. Mark Riley at the University of Arizona has developed a sticker that, when placed on fruit or vegetables that emit ethylene gas, will change color. If the fruit is ripe, the sticker will appear dark blue. Once the fruit stops producing the gas, the color fades. The color change takes just a couple of minutes. Tests have been successful on both apples and pears, but the stickers aren’t available yet to consumers.  28 AB | November-December 2011

DR. JACK COPELAND

KARSTEN SOLHEIM

CENTENNIAL  SERIES

ARIZONA MILITARY MILESTONES By Isabelle Novak

he military has played an enormous role in shaping the first 100 years of Arizona’s history. Here are some of the military personalities, places and things that have left their mark on the state’s history.

LUKE AIR FORCE BASE

USS Arizona (BB-39) Launched June 19, 1915, the USS Arizona is mostly remembered because of its sinking, with the loss of 1,177 lives, during the Japanese attack on Pearl Harbor on December 7, 1941, the event that provoked the United States into entering World War II.

Located in Maricopa County, Luke contains more than 8,000 personnel and covers 4,200 acres. It is home to the largest fighter wing in the world, the 56th Fighter Wing. It is also the largest and only active-duty F-16 Fighting Falcon training base in the world.

DAVIS-MONTHAN AIR FORCE BASE

Located in Tucson, DavisMonthan Air Force Base is home to the A-10 Thunderbolt II, more commonly known as the “Warthog.”

MILITARY TECHNOLOGY The Apache Longbow, produced by Boeing in Mesa, is the world’s most advanced combat helicopter. Lockheed Martin in Goodyear is a global company that provides aerospace technology worldwide. The manufacturing and integration of spacecraft hardware, software and ground-support equipment is provided by Spectrum Astro, in Gilbert. Raytheon Missile Systems in Tucson is annually awarded military contracts worth millions of dollars. General Dynamics C4 Systems in Scottsdale routinely earns military communications contracts, also in the millions of dollars.

Barry Goldwater (1909-1998) During WWII, Goldwater flew overseas between the U.S. and India, later contributing to the development of the United States Air Force Academy. The Barry M. Goldwater Range in Yuma was named in his honor. John McCain The U.S. Senator served 22 years in the military after graduating from the U.S. Naval Academy. In October 1967, while on a bombing mission over Hanoi, he was shot down, seriously injured, and captured by the North Vietnamese. He was a prisoner of war until 1973.

Lori Piestewa (1979-2003) Piestewa was the first Native American woman to die in combat for the United States military and the first woman in the U.S. armed forces killed in the 2003 invasion of Iraq.

Pat Tillman (1976-2004) The former Arizona Cardinals football player died while serving in the U.S. Army’s 75th Ranger Regiment in Afghanistan.

Ira Hayes (1923-1955) Pima Indian Ira Hayes of Sacaton was a World War II soldier in the U.S. Marine Corps and is one of the six flag raisers depicted in the Iwo Jima Memorial in Washington D.C. AB | November-December 2011 29

It’s A Date! February 25 & 26, 2012 Phoenix Convention Center

Shop Hundreds of Booths Information at ExposAZ.com or call 602.277.6045

Join us for the

ACC AWARDS January 12, 2012 6:00–8:00 pm Ritz Carlton, Phoenix

CFO

OF THE YEAR AWARDS 2011 Recognizing professionals for outstanding performance in their roles as corporate financial stewards

CFO of the Year Awards 2011 Letter from the Arizona Chapter of Financial Executives International (FEI) The Arizona Chapter of Financial Executives International (FEI) appreciates and thanks you for your interest in the 5th annual CFO of the Year Awards. FEI Arizona is presenting the CFO of the Year Awards to senior level financial professionals for outstanding performance in their roles as corporate financial leaders and stewards. The nominations and awards recognize exemplary financial management in three business sectors: public, private and nonprofit. An independent set of carefully elected and wellqualified judges from Arizona’s business community and academia have selected the winners based on their contributions to their respective organizations and their overall involvement in the Arizona business community. FEI’s mission is to advance the success of senior level financial executives, their organizations and the profession. The FEI Arizona chapter is comprised of Phoenix Metro-area executives who represent and advocate for the interests of finance professionals of companies in all industries and all sizes within the public, private and nonprofit sectors throughout the state. FEI Arizona serves the community by offering its members opportunities to network with their peers, stay apprised of current financial policy, standards and regulatory guidelines, advance their professional edge and astuteness and develop valuable relationships with community leaders. We also maintain an academic awards program to encourage professional advancement of promising, finance-focused students, offer career assistance and development to members and non-

CFO OF THE YEAR JUDGES John Farr Managing Director Columbia West Capital, LLC Norman Stout Chairman EF Johnson Technologies, Inc. Dr. Jarl Kallberg Professor of Global Finance Thunderbird School of Global Management

FINANCIAL EXECUTIVES INTERNATIONAL ARIZONA CHAPTER BOARD OF DIRECTORS Michelle Hoffman President CFO & COO ActiveForever.com Bret Lawson First Vice President CFO Unique Home Design, Inc. Bob Vreeland Second Vice President CPA 32 AB | November-December 2011

Gil Christopher Secretary/Treasurer Partner Tatum LLC Gayle Pincus Past President Social Enterprise Consultant Palo Verde Business Advisors Joan Brubacher Director Principal/CFO Resolute Commercial Services Bradley Denton Director Principal Denton Family Holdings, LLC Marcus Feder Director Consultant Salt River Project Claire Janssen Director CFO PEM Real Estate Group

members alike, and contribute to the research and advocacy activities of our national FEI organization which impact the strategic planning of the profession’s policy, standards and regulatory structure. FEI continuously looks to attract new members who fit our criteria and who are interested in the value gained from becoming an FEI chapter member. Membership is open to CFOs, controllers, treasurers, tax executives, academic professors, and other senior level finance professionals whose positions and company size meet FEI’s membership criteria. Additional information may be found on the national and chapter websites, www. financialexecutives.org and www.feiaz.org. Finally, FEI Arizona would like to express a special appreciation to our sponsors who have worked closely and diligently with us to make this event a success: Arizona Business Magazine, Bank of Arizona, CresaPartners, Deloitte, Marsh USA and Robert Half Management Resources. Very truly yours,

Michelle Hoffman President FEI Arizona

Joan Brubacher Chairman CFO of the Year Committee Chris Niezgodzki Director Director Budget, Planning & Analysis Grand Canyon Education Malcolm Persen Director Executive Vice President Business Development & Performance Renewable Energy Contracting Corp. Daniel Regan Director Principal Executive Financial Management Richard Skufza Director Executive Vice President, CFO E. B. Lane Marketing Communications Jon Steging Director Executive Vice President, CFO MicroBlend, Inc. Karen Whitney Director Vice President Financial Planning & Analysis Apollo Group Inc.

We see where financial salaries are going before they get there. Our Salary Center tools offer in-depth compensation data for more than 300 financial positions. To review salary trends, calculate local salary ranges and download a FREE 2012 Salary Guide, visit roberthalf.com/salarycenter.

Phoenix â&#x20AC;˘ 602.224.1273 2375 E. Camelback Rd., Ste. 290 ÂŠ 2011 Robert Half. An Equal Employer. 0911-9011c AB Opportunity | November-December 2011

CFO of the Year Awards 2011: Finalists KAREN M. ABRAHAM Senior Vice President and Chief Financial Officer Blue Cross Blue Shield of Arizona Karen Abraham is responsible for providing direction and accountability regarding all financial matters at Blue Cross Blue Shield of Arizona. That was evident as she helped the company’s revenue grow from $313 million when she took over as vice president of finance in 1997 to $1.5 billion as CFO today. In addition to the revenue boost, Abraham provided the vision and leadership to partner with other BCBS plans to decentralize the infrastructure necessary to process transactions, which will save the company millions of dollars.

Along with her many achievements, Abraham was responsible for getting the BCBS Association requirement to obtain a rating from S&P. Because of this rating, Abraham implemented a change in how the organization is managed, specifically providing an additional discipline in the budgeting, forecasting and rating of its products. Abraham is a member of the Ethics and Compliance Committee that wrote the book for the organization’s policies for the finance and purchasing departments and other parts of the organization. She sits on several community boards, including the YMCA Town Hall Board and the W.P. Carey School Finance Advisory Board.

DARRYL BAKER Chief Financial Officer iGo, Inc. Through his role as CFO, Darryl Baker has been instrumental in the revenue growth of iGo, Inc., a technology and consumer products company. In the past year, Baker has boosted iGo’s product diversity by adding three new product categories, and has been instrumental in the acquisitions of Adapt Mobile and Aerial7, and teaming up with Pure Energy. Baker is the driving force behind the iGo Code of Business Conduct and Ethics document, which he adheres to. In addition to this code, Baker leads iGo in an ethical manner and ensures that the financial reporting process

is carried out smoothly to ensure the safeguarding of company assets. As CFO, Baker is responsible for safeguarding company assets, maintaining its balance sheet, providing timely and accurate financial and operating performance reporting, implementing cost controls and reducing unnecessary expense, and forecasting and planning to ensure appropriate financing for the company’s business objectives.

DAN BEHRENDT Chief Financial Officer TASER International, Inc. Since 2004, Dan Behrendt has been revamping TASER International, Inc. in order to ensure success. Behrendt successfully redesigned TASER’s warranty programs, leading to a $25 million increase in revenue. In addition to this redesign, he created key performance indicators for each company department. This process measures growth and ensures that the company is moving toward its goals. During a Securities and Exchange Commission investigation, Behrendt made the decision to use an open door policy when others were against the idea. Because 34 AB | November-December 2011

of his decision, after a 30 percent drop in revenue, TASER witnessed revenue growths of 42 percent and 47 percent the next two years. In addition to his achievements, Behrendt oversees all aspects of corporate finance to make sure TASER is performing at the highest possible degree for its shareholders. He also runs the information technology department to ensure the company is being provided with the highest level of support and service. In addition to building the company, Behrendt created the TASER Foundation for Fallen Officers as a way to give back to the community.

YOU MAY NOT HAVE HEARD OF US, BUT WE CONSIDER THAT A GOOD THING. There are a lot of banks that have made the news. But for all the wrong reasons. And that’s why you might not have heard about Bank of Arizona, a division of BOK Financial Corporation – a $24 billion financial services holding company and the 22nd largest U.S.-based publicly traded holding company. A Local Bank Backed By A Powerhouse. Bank of Arizona is part of BOK Financial Corporation, the largest commercial bank in the United States that elected not to participate in the Treasury’s Capital Purchase Plan, an element of the Troubled Asset Relief Plan (TARP). And despite economic challenges in 2008, BOK Financial reported record earnings in 2010 and 2011, and has had positive earnings for the last two decades. Financial Solutions Tailored For Your Needs. We have bankers with expertise in commercial real estate, energy, healthcare, food and commodities, correspondent banking and international banking. At Bank of Arizona, you’ll get localized services from bankers who truly understand your market and know your business. But you’ll also get increased lending power and a broad array of financial products and services. So call us. We’d like to talk.

AB | November-December 2011 35

CFO of the Year Awards 2011: Finalists KAREN BRETZ Vice President Finance Fresh Start Women’s Foundation Karen Bretz relies on her unique ability of blending her analytical and creative mind to financially manage and grow Fresh Start Women’s Foundation. Bretz refinanced the foundation’s main building, expanded a second site, and developed the thrift store initiative with ease. Since she became CFO, Fresh Start Women’s Foundation has received a clean audit. In addition, Bretz’s financial leadership led to the foundation’s first profitable year from operations since 2003.

She revised the employee handbook to make the company’s policies and practices more clear. Bretz also created an internal grievance committee to implement processes to identify and resolve client complaints and grievances. Bretz is responsible for the management of foundation finances, along with support for the Finance Committee and the Board of Directors. She manages strategic initiatives, including job placement services, the development of a thrift store, and managing the facilities of both of the Women’s Resource Center buildings.

THOMAS R. CASTELLANOS Chief Financial Officer Valle del Sol Inc. In tough times for nonprofits and state-funded service providers, Valle del Sol is lucky to have Thomas Castellanos improving its finances. By forming a Multiple Employer Welfare Association as a strategic cost reduction, Castellanos saved more than $600,000 in the group’s first year. Castellanos has been a change agent for Valle del Sol in order to achieve its goal of providing services to the underserved community. He focuses on the finance, accounting, facilities, and information technology side of the business. In the past year, four new clinics have opened and become

licensed in Maricopa County with Castellanos’ assistance. Castellanos created the idea of a chair of the board fund to address shortfalls in funding, given Arizona state budget cuts. This would allow services to be provided for AHCCCS recipients for a limited time until they could find coverage. In addition to these achievements, Castellanos has increased Valle del Sol’s accountability by instituting internal controls within finance.

MARK D. CAVANAUGH Senior Vice President and Chief Financial Officer Firetrace USA, LLC It’s been said that “without Mark Cavanaugh, Firetrace would cease to function.” When Cavanaugh began working at Firetrace in 2005, the aerospace and defense business had $189,000 in revenue. In 2010, that amount rocketed to more than $64 million. Focusing on the industrial commercial markets, Cavanaugh has strategically grown operations to India, Dubai, Singapore, Australia, and, in 2011, Brazil. Using his public policy efforts, Cavanaugh secured 36 AB | November-December 2011

more than $100 million for fuel tank fire suppression and got fire suppression mandated for all military vehicles. Leading the Firetrace team in the adoption of the U.S. Foreign Corrupt Practices Act and UK Bribery Act, Cavanaugh is safeguarding the company’s financial assets. Cavanaugh has been instrumental in the growth of the aerospace and defense team by using the philosophy, “Hire the best people and get out of their way.” Cavanaugh is active in the community, coaching youth soccer, baseball, softball and basketball.

At CresaPartners, you’re number one. As North America’s largest tenant-exclusive corporate real estate advisor, our entire business is built around you. We offer a full range of integrated services, and our team is committed to innovative ideas, client collaboration, and a human touch. Full service. Invested in your success. That’s The Tenant’s Advantage.

www.cresapartners.com AB | November-December 2011 37

CFO of the Year Awards 2011: Finalists THOMAS B. FISCHER Vice President of Finance and Chief Financial Officer Express Messenger Systems, Inc. dba OnTrac Thomas Fischer provides leadership and coordination in OnTrac’s financial, business planning, accounting and budgeting efforts. During Fisher’s tenure, revenues at the overnight package delivery company have increased more than 200 percent, stockholders’ equity has increased 200 percent, and long-term debt has decreased from 75 percent to 10 percent. Fischer also has played a crucial role in defining and executing the Employee Stock Ownership Plan (ESOP.) The ESOP currently is worth more than $15 million for

550 active participants. Fischer’s aptitude for budgeting, cost control principles and managing resources is critical to the company’s success. His abilities in contracting and negotiating have allowed OnTrac to grow and expand. Fischer works with the regional management team to foster healthy relationships within the company. He also exhibits leadership by encouraging his team to think critically and promote an enriched personal and work atmosphere. He is an avid runner and a member of a Tucson running club.

WILLIAM ‘BILL’ McCLUNG Chief Financial Officer Southwest Human Development, Inc. After just three years at Southwest Human Development, Bill McClung has helped the agency grow and improve. In the past three years, the company has seen a positive gain in net assets of more than $1.5 million. This can be attributed to changes McClung made to budgeting, financial reporting and cost containment systems. In fiscal 2011. Southwest Human Development reported revenue in excess of $45 million. Budgeted revenue for fiscal 2012 is $53 million. In preparation for the tri-annual federal review of Southwest Human Development’s largest program, Head Start, McClung and his team completely rewrote agency

policies and procedures to meet federal requirements. McClung has developed a top-ofthe-line board of directors financial oversight committee and has made technological improvements, acting as the organization’s chief information officer. He has proven to be adept in preparing internal financial statements for management and the board of directors that enable them to better understand and manage finances at all levels. Under his method of “leading by example,” the company has experienced almost no turnover in staff.

STEVEN L. ORTEGA Chief Financial Officer Leslie’s Poolmart LLC For the past six years, Steven Ortega has kept Leslie’s Poolmart functioning. Leading the company through the national economic downturn, Ortega has helped it achieve 47 straight years of sales growth and 47 quarters of consecutive operating profitability. During Ortega’s tenure, the company has developed a comprehensive five-year strategic growth plan. This plan was created as a roadmap to achieve the company’s goal of growing to $1 billion in annual sales revenues. Ortega was instrumental in a financial transaction with 38 AB | November-December 2011

CVC Capital Partners to invest in the company, which helped provide capital structure. Since 2005, Ortega has opened 172 retail stores, 17 new commercial service centers, relocated 12 retail stores, and remodeled more than 200 stores. In addition, Ortega was a key part in two strategic company acquisitions that led to market growth in both Texas and Arizona. Ortega provides strategic leadership in which he revamped the new store development process, enhanced the company’s compensation plans, and enhanced the review and approval process for all contracts and agreements.

AB | November-December 2011 39

CFO of the Year Awards 2011: Finalists TANYA PERRY Senior Vice President and Chief Financial Officer Goodwill of Central Arizona Respected for her leadership, Perry has led Goodwill of Central Arizona to a new level of growth and success. During her four-year tenure, Goodwill of Central Arizona has grown from 37 retail locations to 46. Along with retail growth, revenue has grown from $60.1 million to a projected $87 million. Perry has been responsible for the stability, credibility, and overall effectiveness of the financial operations of the organization. Goodwill’s balance sheet has greatly

improved, and debt balances have decreased from $22.3 million to $13.9 million. Perry has created a financial culture that is focused on transparency, credibility (internally and externally), integrity, and a culture that is consultative, synergistic, supportive and advisory. She was instrumental to the development of an innovative campaign called “Band Together to Spread Goodwill,” which features “Giving Bands” that are being sold at all Goodwill locations. Proceeds benefit nine different charities.

KELLIE S. PRUITT Chief Financial Officer, Treasurer and Secretary Healthcare Trust of America, Inc. Healthcare Trust of America (HTA) has been in business for just four years, and its seasoned leader, Kellie Pruitt, is steering it in the right direction. During Pruitt’s tenure, the company increased its financial flexibility by obtaining a $575 million unsecured credit facility, and was assigned an investment grade credit rating by Moody’s and S&P. In the past two years, Pruitt and efforts by the management team have led to a $1.6 billion increase in equity. As CFO, Pruitt is responsible for managing HTA’s accounting, tax, and finance, treasury and investor relations functions. She established the company’s corporate headquarters and closed over

$1.2 billion of acquisitions and has helped hire and train all the company’s employees with the CEO. Pruitt is involved in all strategic operating and financial decisions, but also actively drives and monitors the results. Her leadership has been essential to leading the company through the recession, always with HTA’s financial health and the best interest of the company’s investors in mind. Displaying the highest level of ethics, integrity and trust, Pruitt believes in transparency with employees, the board of directors, and investors.

DENA L. RICHTER Chief Financial Officer SynCardia Systems, Inc. By overseeing all financial activities of SynCardia, Dena Richter leads the company that manufactures the Total Artificial Heart that helps people who suffer from heart failure. Her roles as both CFO and HR Director allow her to utilize her talents as a financial director and employee mentor. Financial reporting, cash management and five regulatory audits per year are just a few of Richter’s extensive responsibilities. Her leadership ability resulted in the vertical integration of a supply chain 40 AB | November-December 2011

with an $800,000 purchase of a supplier’s Segmented Polyurethane Solution (SPUS) reactor. Trinity Capital Investment’s confidence in Richter led to their approval of an additional leasing capacity of $2 million along with a $1 million investment in SynCardia’s Series E equity round. These are just a few of her financial accomplishments. Her fiscal management of the company has resulted in explosive growth and sales. SynCardia’s success through Richter’s example has increased product manufacturing, allowing a great number of people to receive the care their lives depend on.

AB | November-December 2011 41

CFO of the Year Awards 2011: Finalists JACK SEAVER Chief Financial Officer/Human Resources Manager CCS Presentation Systems Jack Seaver’s fiscal actions help the company provide quality audio and video systems for clients such as Intel, Arizona State University and Raytheon. With 13 years of experience, Seaver plays an essential role in making CCS one of the largest A/V integrators in the United States. His collection policies put the company’s current accounts receivable percentage at 90.4 percent based on approximately $5 million in receivables. Due to his

initiation of the American Express “Plum” Credit Card, CCS receives 2 percent cash credit for all payments made accordingly. Seaver’s unparalleled leadership style has the company recognized for having one of the best operational practices in the industry. Known as the “rock” of the company, his generosity always shines through. Whether making a personal donation to a struggling employee or raising money for the Red Cross and local charities, Seaver goes above and beyond his written responsibilities through selfless acts of kindness.

ANDREW A. STEVENS Chief Financial Officer Liberty Distribution Company, LLC As CFO and board member, Andrew Stevens is responsible for all financial aspects of Liberty Distribution, including financial reporting, treasury and risk management, investor relations, planning and analysis. As a crucial member of the company’s board, Stevens sets the strategic direction of the business while providing valuable feedback to the group. He works with sales to competitively price new account acquisition proposals, and significantly contributed to the acquisition of a competitor’s assets in 2008. Stevens seeks “balance” between risk and reward when analyzing opportunities, and is known by co-workers as both a leader and team player. His dedication to the success of Liberty

Distribution does not hinder his commitment to service. Stevens has been an active member of organizations such as Childsplay, the America West Airlines Foundation and the University of Arizona Alumni Association. An active member of the church and the community, Stevens strives to bring people together through his discipline learned as a CPA. Stevens also is actively involved in the community through serving on the board of directors of the Phoenix Children’s Hospital Foundation and the Greater Phoenix Chamber of Commerce.

BRIAN SWARTZ Senior Vice President and Chief Financial Officer Apollo Group, Inc. After previously joining the Apollo Group as vice president, corporate controller and chief accounting officer in 2007, Brian Swartz was appointed CFO two years later. Swartz is recognized by the company for his influence on goals and performance. Despite a 40 percent decline in new enrollment, he helped Apollo maintain its fiscal strength. His review of the company’s cost structure resulted in the

42 AB | November-December 2011

identification and reduction of more than $100 million in costs through operational initiatives. With the help of colleagues, Swartz spearheaded a comprehensive overhaul of the governance practices at Apollo after discovering a stock option backdating issue. His oversight of the “Apollo Excellence” program helps ensure business processes are streamlined and cost-efficient. These are just a few ways Swartz continues to contribute his expertise toward the company’s enormous success.

Firetrace USA, LLC congratulates Mark Cavanaugh on his nomination for the 2011 Chief Financial Officer

www.firetrace.com

of the Year Award, sponsored by the Arizona Chapter of Financial Executives International.

We are immensely proud of his

www.firepanel.net

contributions to the company. Since joining Firetrace in 2005, Mark has had an incredibly positive influence across all departments

www.ftaero.com

of Firetrace while keeping a steady focus on the bottom line.

Thank you Mark for your enthusiasm and energy! AB | November-December 2011 43

Tune in Weekdays to 960 AM KKNT IntellIgent conservatIve talk

CCS Presentation Systems congratulates Jack Seaver for his nomination as 2011 CFO of the Year.

Bill Bennett 4:00-7:00 AM

Mike Gallagher 7:00-10:00 AM

Dennis Prager 10:00 AM-1:00 PM

Michael Medved 1:00- 4:00 PM

Thank you, Jack, for your dedication and contribution to our company that helps to make CCS the leading audio visual systems integrator in the Southwest. Hugh Hewitt 4:00-7:00 PM

Mark Levin 7:00-10:00 PM

Dennis Miller 10:00 PM-1:00 AM

K K N T960. C O M

480.348.0100 • ccsprojects.com

Con ratu ati n Congratulations Steve! l o s g

Leslie’s Swimming Pool Supplies Congratulates their EVP and Chief Financial Officer Steve Ortega on becoming a finalist for this year’s CFO of the Year Award.

Over his tenure with Leslie’s, he has contributed to our industry leading position with solid growth as the company celebrates over half a billion in sales annually and continues to expand stores nationwide, coast to coast. He is a true leader and key member of the Leslie’s team. Congrats Steve! lesliespool.com

3925 E. Broadway Road, Suite 100

44 AB | November-December 2011

Phoenix, AZ 85040

CFO of the Year Awards 2011: Finalists SUSAN SWEENEY Chief Financial Officer CyraCom International, Inc. As CFO of CyraCom International, a provider of language services for people with limited English proficiency, Susan Sweeney executes an extensive array of financial duties. During her four-year tenure, Sweeney has accomplished an incredible amount for CyraCom. Under her guidance, the company doubled revenues to $37.4 million, and increased the earnings per share by 180 percent. The company also met all cost and revenue budgets for 41 of the past 42 months, with a staff that expanded from 248

employees to 600. Sweeney’s leadership helped increase CyraCom’s borrowing capacity from $1.5 million to $18 million, enabling its first acquisition. As a result of these successes, CyraCom was honored as the second-fastest growing company in Southern Arizona by the Arizona Daily Star, as well as listed in the Inc. 5,000 list of fastest growing companies for 2007, 2009, 2010, and 2011. Sweeney’s grasp of cost-control and decision management has made her an admirable part of CyraCom’s team. Her personal interest in the well-being of employees has them continuing to hold a full suite of benefits.

DAN URNESS Chief Financial Officer, Vice President and Treasurer Cavco Industries, Inc. Dan Urness has led Cavco Industries to financial success. He is responsible for IT functions, payroll, human resources oversight, corporate development work, as well as all financial affairs. More importantly, he has been highly influential in the company’s growth. By providing innovative ideas into Fleetwood Homes’ and Palm Harbor Homes’ bid strategies, Cavco changed from a regional manufacturer to the second-largest national supplier, retailer, financier, and insurer of systems-built housing in the U.S. During the 2008 economic market crisis, Urness demonstrated his valuable leadership by actively

managing the company’s excess cash and investments to prevent that loss in value and liquidity that many other companies experienced. This proved critical when funding subsequent expansion. By recognizing that the implementation of a companywide enterprise resource planning IT system would be critical to future success, he worked closely with the IT department to identify and retain the chosen provider. Urness volunteers as a youth leader in his free time.

DALE WANEK Chief Financial Officer Boys & Girls Clubs of Metropolitan Phoenix With 12 locations and growing, the Boy & Girls Clubs of Metropolitan Phoenix relies on Dale Wanek to oversee the accounting, information technology, human resources, and facilities functions. In his role, Wanek has worked with the organization to achieve many milestones. During his tenure, the organization has had yearly clean audits without discrepancies. His vendor negotiations have resulted in savings of $150,000 in the past year. The Boys & Girls Clubs also remodeled 46 AB | November-December 2011

existing locations, and has undertaken an expansion plan for a dental clinic that is expected to be completed in 2012. Wanek’s innovative approach to finance has helped establish new policies, such as fortifying the organization’s reserves to maintain a minimum of 90 days of cash on hand, and strengthening the business relationships in the community to solicit donations. Wanek also helped secure a $10.8 million new construction loan to build three new clubhouses. The organization recognizes him as both an easygoing and engaging person with whom to work.

Congratulations, Brian Swartz, on your deserving nomination for 2011 Chief Financial OfďŹ cer of the Year. Your colleagues at Apollo Group and University of Phoenix are proud of your dedication, leadership and service.

AB | November-December 2011 47

She keeps the

our own Karen Abraham for being chosen as a finalist for CFO of the year. And we applaud the accomplishments of all the nominees this year as well. Your talent and drive to succeed add value to our business.

11-0951

financial wheels turning.

Blue Cross Blue Shield of Arizona congratulates

48 AB | November-December 2011

Phoenix Contact Center 14415 S. 50th St., Ste. 100 Phoenix, AZ 85044

Tucson Headquarters 5780 N. Swan Rd. Tucson, AZ 85718 (800) 713-4950

Tucson Contact Center 2801 E. Elvira Rd. Tucson, AZ 85756

Las Cruces Contact Center 2303 Divot Ave., Ste. 1 Las Cruces, NM 88001

AB | November-December 2011 49

CFO of the Year Awards 2011: Finalists STEVE WARD Chief Financial Officer/Chief Operating Officer Southwest Center for HIV/AIDS Steve Ward serves as both CFO and COO for the Southwest Center for HIV/AIDS, Arizona’s oldest and largest nonprofit AIDS organization. Ward’s timely and effective tactics regarding finance have helped the agency excel during the economic crisis and beyond. By helping the agency with effective banking arrangements, it continues to have strong months of fundraising. His ability to submit financial, operational, and qualitative program narrative data directly addresses grantor’s needs.

The Southwest Center benefitted from Ward’s financial planning by receiving voter approval for $3.6 million in public funding to establish a community center. He oversees a clinical trial program which previously lost $300,000 per year, but is now breaking even and growing in revenue thanks to his leadership. Ward has been called an ambassador of collaborative, creative solutions among community partners. His popular “can-do” attitude and optimism have helped the agency become a critical outlet for those suffering from HIV/AIDS.

MARGARET WOLFORD Chief Financial Officer Children’s Museum of Phoenix Margaret Wolford has assembled financial reporting systems and procedures that have advanced the Children’s Museum of Phoenix to an unparalleled level. When her fiscal management began, the organization was staffed with a small operational planning group that oversaw $22 million in multi-year charitable gifts. After her influence and leadership, Wolford converted the museum’s systems to sophisticated management software. The reporting systems she established advanced the museum to a level of efficiency many mature organizations

have not yet seen. As a brand new museum, Wolford increased operational staff members from 12 to 85 in three weeks. The budget also skyrocketed to $3 million. Aside from her museum duties, she is an activist working on issues of human understanding and world peace. She models both peaceful and humane behavior in the workplace, and embeds the principles of ethical practices into everything she does.

MICHAEL ZIMMERMAN Chief Financial Officer and Executive Vice President The Go Daddy Group Inc. Under the financial supervision of Michael Zimmerman, the Go Daddy Group is the world’s No. 1 domain name registrar and largest Web hosting company. Responsible for financial reporting, budgeting, forecasting, as well as daily financial affairs, Zimmerman has taken the initiative as a true leader over the past 10 years. He was instrumental in managing a financial deal with other investors worth more than $2 billion. Amid the economic recession, Go Daddy earned double-digit growth, thanks to Zimmerman’s relentless approach with financial tracking. 50 AB | November-December 2011

Under his leadership, Go Daddy also increased sales by 21 percent, added a new facility and hired 400 employees. Zimmerman also oversees Go Daddy Cares, which donated more than $4.7 million in 2011, surpassing previous contributions. After negotiating a partnership with the “.co” domain name that resulted in a Super Bowl commercial, the marketing strategy generated more than a 500 percent spike in domain name sales. Zimmerman shows commitment to doing the right thing with each decision he makes, and is known as a “down-to-Earth and appreciative person.”

Most Admired CFO

Dan Behrendt Chief Financial Officer

THE EMPLOYEES OF TASER INTERNATIONAL WOULD LIKE TO CONGRATULATE OUR CFO, DAN BEHRENDT ON HIS NOMINATION FOR THE ARIZONA CFO OF THE YEAR AWARD.

| November-December ©™ is a trademark of TASER International, Inc., and TASER® is a registered trademark of TASER International, Inc., registered in the U.S. All rights reserved. © 2011AB TASER International, Inc.

2011 51

THE NUMBERS ALL ADD UP TO A GREAT CFO! Congratulations Thomas Castellanos on being a finalist for the CFO of the Year Award. Goodwill congratulates Arizona CFO of the Year Finalist Tanya Perry! Your commitment to excellence helps us Put People to Work. goodwillaz.org

w w w. v a l l e d e l s o l . c o m | 6 0 2 . 2 5 8 . 6 7 9 7 w w w. f a c e b o o k . c o m / v a l l e d e l s o l a z

CFO_DB_ad:Layout 1 10/6/2011 10:35 AM Page 1 ValledelSol QtrPg CastellanosCFO.indd 1

Fresh Start Women’s Foundation congratulates Karen Bretz on being a finalist for CFO of the year!

9/30/11 9:28 AM

iGo Applauds

Darryl Baker on his nomination for 2011 CFO of the Year Award

Thank you for your never ending passion to the women in our community and the mission of Fresh Start – Connecting Women - Changing Lives. We’re so proud of you! phoenix.WeHelpWomen.com 52 AB | November-December 2011

We at iGo are proud of your accomplishments, and strongly believe in your excellence as our Chief Financial Officer.

AB | November-December 2011 53

54 AB | November-December 2011

An investment in your career. BETTER UNDERSTAND YOUR INVESTMENT AND THE VALUE OF FEI MEMBERSHIP FOR YOU AND YOUR COMPANY.

EMPOWERED.

CONNECTED.

INFORMED.

“Ongoing personal and professional growth at each stage of my career.”

“Member relationships with financial thought leaders.”

“Leading edge content and objective research at my fingertips.”

Katherine Anderson

Mary Jo Green

Taylor Hawes

Chief Financial Officer Seattle Opera

Senior Vice President & Treasurer Sony Corporation of America

CFO Intellectual Property & Licensing Microsoft Corporation

Member since 1994

Member since 1988

Member since 2002

of our members recommend FEI membership to their colleagues and professional peers.* Your FEI membership represents: • Interaction with best-in-the-business industry peers and financial thought-leaders • Leading-edge information and objective research • Public policy education and advocacy before U.S. Congress, SEC, FASB, PCAOB, and IASB • Ethical leadership that sets the standard for the profession

Other member-only intangibles include: FEI Career Center and career management services Local peer networking and education through chapter involvement

Professional advancement resources Continuing professional education (CPE) opportunities Emerging Issue Alerts and regulatory updates

Discover more at financialexecutives.org *Statistics based on findings from FEI's Member Satisfaction & Needs Assessment Survey conducted in May 2010 by an independant, professional research company.

arizona chapter

INTERACTION. INFORMATION. INFLUENCE. INTEGRITY.

Join outstanding CFOs. Become a member of the FEI Arizona Chapter today. For more information, please contact: Robin Hirth, Chapter Administrator AB | November-December 55 480.496.4010 | 2011 admin@feiaz.org

DIVERSITY LEADERSHIP ALLIANCE

YOUTH MOVEMENT DIVERSITY LEADERSHIP ALLIANCE TURNS ITS ATTENTION TO EDUCATING THE FUTURE LEADERS OF THE ORGANIZATION – AND OF AMERICA

Christine P. French DLA co-chair

nce solely focused on educating adults about diversity, the Diversity Leadership Alliance (DLA) is going back to school to work with

Valley youth. The DLA is a non-profit organization that provides diversity and inclusion education, resources, tools and forums to the Phoenix area. Its goal is to build an inclusive community where every individual feels equally respected and empowered. “The young people are the ones that will make a difference,” says says Barnett, the DLA Youth Strategy Chair and a driving force behind many of its youth programs. “They will bring that change to the world in which they live.” The DLA Youth Council was formed in 2007, with the goal of cultivating and developing future leaders. Diversity-conscious students from various local high schools are selected to take part in numerous programs and events that allow them to assume take-charge roles in their schools and communities. DLA’s youth-oriented programs have increased exponentially in the past five years. What started out as DLA partnering with Phoenix Union High School District to teach a handful of young people about diversity has grown into hundreds of students that attend ten monthly workshops annually. The workshops, which are expanding into the Dysart Unified School District this year, not only develop leadership skills, but also teach

56 AB | November-December 2011

By Shelby Hill students about diversity, how to make sound financial decisions and apply for scholarships, and how to transition to the workplace environment. “It’s phenomenal. I don’t even have to recruit for the workshops,” says Sue Weiner, a counselor at Metro Tech High School. “Students come to me and say, ‘I heard about DLA and want to be part of it.’ “With the present political climate in Arizona, it gives our students a lot of hope,” she adds, making note of Metro Tech’s predominately Hispanic demographic.

In June, DLA partnered with Arizona State University to create a two-day diversity conference for 25 high school students, counselors and educators. Young leaders were able to explore their own values, beliefs and traditions, while increasing their capacity to develop relationships with students from other cultures. One of DLA’s most transformative

Marion K. Kelly DLA co-chair

programs is also its smallest – an average of a dozen students start and only six finish. This personal leadership course, held on weekends, teaches students how to discover and unleash their voices. Teens can find it difficult to give up their free time, but realize that the personal and financial gains are well worth it. Students who complete this leadership program are eligible for scholarships ranging from $1,000 to $3,000 and are asked to speak at DLA’s annual conference to more than a thousand attendees. One of the first graduates, Alejandra Valenzuela, had the audience in tears with her powerful story, Barnett notes. Another Valley youngster who has been impacted by the DLA is James Focht, 22, now a DLA board member. While attending Metro Tech High School, Focht ended up on a bus headed for the annual DLA conference. That chance event turned out to be life-changing. “Once I understood DLA’s goal to create an inclusive community that values individuals based on their opinions and ideas, I was hooked,” says Focht. He is now finishing up his final classes at University of Phoenix, thanks to a full-ride scholarship he received from DLA. The DLA Youth Council develops diversity advocates and provides future leaders with the educational opportunities, tools and resources needed to effectively collaborate with one another, build an inclusive community and affect cultural change.

I was caught off guard when a test showed I had a forerunner to esophageal cancer. Mayo listened and made me feel everything would be okay. My answer was Mayo Clinic. Benny Andujar, Orange Park, FL

Cancer specialists at Mayo Clinic worked together to develop an effective chemotherapy program to meet Benny’s physical and emotional needs—especially since he had already received unsuccessful treatment by other doctors. The Mayo Clinic Cancer Center is one of only 40 National Cancer Institute designated Comprehensive Cancer Centers, and is the only multi‑site facility in the southwest. To schedule an appointment, visit mayoclinic.org/cancer or call (800) 446‑2279.

AZSHRM – AWARD WINNERS

HISTORY

OF THE AZSHRM AWARDS

Studies show that employees at companies that embrace diversity are more engaged and motivated. In response to this finding, the AZ Society of Human Resources Management (AZSHRM) adopted workplace diversity as a principal value and created a Workplace Diversity Awards Program. The Workplace Diversity Awards are given to outstanding companies as well as individuals. Over the past 10 years, more

than 30 companies and individuals have been recognized as recipients of a Workforce Diversity Award A confidential committee uses an objective process to carefully assess and evaluate the nominees. The awards have been presented by AZSHRM at the annual DLA Conference. Beginning in 2012, the awards ceremony will become a featured event of the annual AZSHRM Conference.

DIVERSITY CHAMPION

EDWARD T. GUERRERO, MPA, MA Challenges Imagine promoting inclusion and diversity within a state that has passed one of the toughest illegal immigration measures in the country, within the fourth largest county in the U.S. with an everincreasing minority population, among nearly 13,000 employees. These are the challenges facing Ed Guerrero, the Maricopa County Diversity Director. In light of such challenges, Guerrero’s accomplishments in the past year are truly remarkable. Accomplishments To many, the results of diversity are largely invisible and intrinsic. Guerrero has managed to translate those results to improved performance, a more tangible measure, earning him respect and positive feedback from the county’s management team and employees. Guerrero brings subject matter expertise, exceptional

58 AB | November-December 2011

communication skills and strategic planning knowhow to his work. He transitioned the Diversity Program from simply employee awareness and training to application that increases productivity and benefits the employee, the organization and the customer. In the past year, Guerrero has: • Identified strategic goals and objectives to form partnerships that promote diversity initiatives within the workforce and impacted communities. • Matched diversity goals and objectives with business strategies. • Incorporated Managing for Results and EvidenceBased Practices in diversity initiatives. • Used interactions as a catalyst to generate moments of self-reflection, the first step in positive change. • Introduced innovation and humor in communication, thereby lowering barriers and promoting diversity.

Not Everything We Do Can Be Measured In Kilowatts. In addition to making clean, renewable energy a reality, APS is proud to support hundreds of organizations like the Diversity Leadership Alliance that improve the health, education, arts and economy of Arizonaâ&#x20AC;&#x201D;now and for generations to come.

To learn more about APSâ&#x20AC;&#x2122;s commitment to building a better Arizona, visit aps.com.

18404 8.5x11_Comm_Ad-DLA_FL.indd 1

10/11/11 3:11 PM

AZSHRM – AWARD WINNERS

VALLEY OF THE SUN UNITED WAY

QUARLES & BRADY LLP

MOUNTAIN PARK HEALTH CENTER

The Valley of the Sun United Way (VSUW) has been serving the health and human services needs of individuals and families in Maricopa County since 1925. As one of the largest nonprofits in the county, VSUW aims to create social change involving issues that impact everyone.

Quarles & Brady LLP, one of the 100 largest law firms in the U.S., has multiple offices in Arizona.

Mountain Park Health Center (MPHC) offers affordable, quality healthcare to families around the Valley and provided by caring staff. Diversity and inclusion efforts are integral components of MPHC’s corporate strategy. These efforts, the Center believes, provide it with a competitive advantage and reflect the Center’s focus on quality, customer service and financial sustainability.

Core Values Diversity and inclusion are core values for Valley of the Sun United Way and are reflected in its everyday service to its customers and the community at large. Diversity and Inclusion Committee In 2008, VSUW established a Diversity and Inclusion Committee to spearhead an organization-wide initiative that promotes diversity and inclusion as a key strategy for advancing staff development and achieving organizational success. Accomplishments The Diversity and Inclusion Committee has played a pivotal role in the following accomplishments: • Creating an organizational culture where differences are recognized, respected, valued and celebrated. • Elevating the diversity conversation to a key staff development topic and strategic organizational priority. • Increasing, through both recruitment and training, the number of bilingual staff to better serve the Hispanic population. Hispanics represent approximately 30 percent of both the Valley’s population and the recipients of VSUW-funded programs. • Encouraging VSUW staff to participate in key community activities that celebrate diversity and inclusion such as the Phoenix Pride Festival and the Annual AIDS Walk in Phoenix.

60 AB | November-December 2011

Commitment to diversity Quarles & Brady has adopted an aggressive agenda to promote and achieve diversity at all levels. The law firm has initiated a number of initiatives to better understand the subtleties of diversity and to capture the opportunities that true diversity presents for its employees, its clients and its communities. Initiatives and accomplishments Key diversity initiatives: • The Women in Leadership Program that evaluates the policies and programs that impact women at the firm. The results has helped develop female managing partners at five of its seven offices. • Diverse attorney recruiting, retention and promotion, which involves recruiting at institutions with a high percentage of diverse lawyers, attending minority job fairs and establishing relationships with career placement officers and diverse student organizations. • Scholarships for minority students at four universities and one law school. • Internships for minority law school students, providing students with the opportunity to work alongside experienced attorneys. • A tribal law summer associate program for first-year law students interested in Indian and tribal law. • Minority liaisons, which provide a second mentor for every diverse associate in the firm. • A diversity blog with contributions from attorneys in Quarles & Brady offices across the U.S. • Diverse attorney retreats that provide feedback from the diverse attorneys on how to improve the firm’s diversity initiatives.

Diversity and inclusion initiatives As a result of its ongoing assessment, MPHC has implemented a number of diversity and inclusion initiatives including but not limited to: • Medical interpreter training for 24 MPHC staff. • Diversity training for all MPHC staff. • Policies and procedures addressing translation and interpretation needs. • Increased contracting with womenand minority-owned business enterprises. • Targeted marketing and branding efforts. • Development of the MPHC Diversity Recruitment Plan. Stakeholder engagement Complementing the practice of ongoing assessment is MPHC’s commitment to stakeholder engagement. This commitment has resulted in the creation of MPHC Diversity Site Councils. The Councils provide a means of empowering stakeholders, engaging them in the decision-making process. Council activity: • Provides avenues for feedback. • Creates a culture of transparency. • Promotes accountability. As a result, all MPHC stakeholders are engaged on a continual basis in the Center’s diversity, inclusion and cultural competency efforts with a goal of strengthening MPHC’s ability to provide inclusive, cross-cultural and culturally responsible healthcare.

Cox is connecting you to a World of Opportunity.

Cox believes in the power of people. It’s more than just connecting customers to great services. It’s about connecting people with each other and to the things that are most important to them. And our commitment to employees is even stronger. As a member of the Cox employee family, you’ll enjoy free and discounted Cox services, paid vacation and employee assistance programs, tuition reimbursement and more. To search all current job postings for Arizona: • Log on to www.workatcox.com • Click “Browse All Job Postings” • Click “Advanced Search” • In the Select Locations ﬁeld, select “AZ, Flagstaff”, “AZ, Phoenix”, “AZ, Sierra Vista”, “AZ, Tucson” • Click “Search” Cox ranked 21st on the Diversity Inc. Top 50 Companies. Cox also received 100% ranking in the Human Rights Campaign Corporate Equality Index.

Henkel proudly sponsors the Diversity Leadership Alliance Annual Conference At Henkel, our diversity shows in everything we do and everything we make â&#x20AC;&#x201C; from our employees and suppliers to our products and customers. We strive to deliver excellence in the brands and technologies we deliver to the global marketplace, as well as providing support, growth and achievement to our employees and our business communities.

www.henkelna.com Henkel is an Equal Opportunity Employer

HK-DvrstyLdrshpSpnsrAd10-11.indd 1

Medtronic is a proud sponsor of DLA.

62 AB | November-December 2011

10/3/11 2:20 PM

Apollo Group and University of Phoenix are proud to employ and educate individuals with different backgrounds from throughout our community. We recognize the importance of diversity and the value of different perspectives.

Put your name on a musical masterPiece Your Support MatterS MIM gratefully recognizes donors who give $5,000 or more before December 31, 2011, as Founders. MIM will permanently engrave their names in bronze on the Founders Wall. For more information, please call our Development Department at 480.478.6054, or e-mail development@theMIM.org.

MuSICaL INS truMeNt MuSeuM MIMphx

64 AB | November-December 2011

www.theMIM.org | 480.478.6000 | open Daily Corner of tatum & Mayo Blvds., just south of Loop 101 in phoenix

MAC AWARDS

MARK of EXCELLENCE FOUR COMPANIES STAND OUT AT THE 2ND ANNUAL ARIZONA’S MOST ADMIRED COMPANIES AWARDS On Sept. 7, Arizona Business Magazine and BestCompaniesAZ honored 60 outstanding companies at the 2nd annual Arizona’s Most Admired Companies Awards. At the ceremony, held at the Arizona Biltmore, four companies received awards for excellence in the categories of Workplace Culture, Leadership Excellence, Social Responsibility and Customer Opinion. Winner Workplace Culture Catholic Healthcare West Arizona CHW Arizona is all about improving the quality of life for everyone, including its employees. By offering free yoga, zumba, tai chi classes and several different spiritual programs, CHW offers a fun way for employees to enhance the health of their bodies and spirits. The company takes pride in its employees’ hard work and dedication, so employees are applauded for their achievements through celebratory meals and an Arizona Rattlers employee appreciation game. Employees are also cared for financially with a savings plan, pension plan, and a choice of medical plans. Discounts are given to employees in cafeterias and for products and services. In order to promote climbing the career ladder, employees are offered a tuition reimbursement plan. On top of all the benefits provided, CHW Arizona distributes a survey for feedback on employee satisfaction. Winner Leadership Excellence Arizona Diamondbacks A winning attitude is what drives the management team of the Arizona Diamondbacks. Managing general partner Ken Kendrick, president and CEO Derrick Hall, and the rest of the front office staff have won numerous awards for their achievements. In 2011, Kendrick received an Ellis Island Medal of Honor. The opening of the new Salt River Fields at Talking Stick spring training facility in Scottsdale was a great accomplishment for the Diamondbacks’ leadership team. 66 AB | November-December 2011

It was a great addition to the existing major economic impact that spring training brings to the Valley. The Diamondbacks’ leadership participates in many charities and contributes to nonprofit organizations in the community, including the Phoenix Women’s Sports Association, ChildHelp USA, the Association of Professional Ballplayers of America, and many more. Aside from community service, team leaders plan and make appearances at special events for season ticket holders. Winner Social Responsibility ScriptSave ScriptSave considers social duty and giving back to the community part of being a responsible organization. As a whole, the company donated more than $105,000 to various charities. Employees choose and plan fundraisers for the charities to which they donate and participate in team competitions in order to raise money. Habitat for Humanity is one of ScriptSave’s main projects. The company sponsors a house and employees assist in the building process. ScriptSave employees worked more than 1,000 hours in order to give back to the community. Not only does ScriptSave care about humanity, but it also cares about the environment. By using intranet, the company has cut down on paper use. Employees are given a recycling bin next to their desks and are encouraged to recycle. Even sensitive paper materials are later shredded and recycled in order to help the environment. Winner Customer Opinion International Cruise & Excursions (ICE) ICE’s passion is the satisfaction of its customer. Great customer service starts with the employees, which is why ICE improved its hiring process in order to hire the best and most qualified candidates for each job. After being hired, employees go through six weeks of training in order to learn how to provide outstanding service. Providing a personal vacation planning experience by giving employees their own extension lines, customers’ problems are resolved quickly in order to ensure smooth sailing. Another way ICE makes sure customers will have great experiences is by creating a schedule to make someone available to speak with customers whenever the need arises. This provides less wait time for customers and quicker feedback. ICE uses the feedback from customers’ reviews in constantly look for ways to improve and be the best company it can be.

most

admired

What

Magnet

PCA SKIN® is honored to be recognized as a Most Admired Company for 2011. We thank our extended network of PCA SKIN Certified Professionals for supporting us in our efforts to improve people’s lives.

means to us…

…it’s peace of mind, knowing we can count on patient ratios that let us deliver the kind of patient care we became nurses for. …it’s the voice we have with shared governance; our Unit-Based Patient Care Councils truly allow us to drive our practice. pcaskin.com | 877.PCA.SKIN (722.7546)

most_admired_companies_v5.indd 1

• What’s on store for our next 100 years? • Tax implications of foreclosure • The best in-house legal advice • Greater Phoenix Economic Council • American Heart Association • Multi-generational homes increase • Technology will shape state’s next century

…it’s confidence that no matter what, Scottsdale Healthcare won’t budge on their commitments to great nursing.

We’ve become Arizona’s 1st and only Magnet® Hospital System!

8/18/11 3:59 PM

The nurses of Scottsdale Healthcare are proud to announce that we have become the first multihospital health system in Arizona to achieve elite Magnet recognition—an achievement shared with only 21 other multihospital health systems in the U.S.

Join us! Located in beautiful Scottsdale, AZ, non-profit Scottsdale Healthcare is a leader in medical innovation, talent and technology with three state-of-the-art facilities and a genuine commitment to nursing. Learn more and explore opportunities at

www.shc.org/careers Text RNJobs to 447363 [HireMe] for exclusive employment messages.

EOE/AA/M/F/D/V

AB | November-December 2011 67

DINING

STEAKING A CLAIM TO

GREATNESS

BY KRISTINE CANNON

f you’re superstitious, you might believe bad things happen in sets of three. If you’re an optimist, you might believe “the third time’s a charm.” Well, Bourbon Steak debunks both well-known expressions. At Bourbon Steak, each dish presented in a trio is nothing short of mouthwatering, and patrons are willing to spend the triple digits for the lavish — but well-worth-theprice — meals. Located on the grounds of the AAA Five-Diamond Fairmont Scottsdale Princess, Bourbon Steak’s dining area is engulfed with rays of natural light beaming from the floor-to-ceiling windows, exposing the outdoor patio with its sleek, steel and leather-bound décor — the interior boasting a similar industrial design. The lit candles flickering throughout, both inside and out, as well as the genuinely courteous and friendly staff gave the restaurant a warm, inviting touch. My dinner companions and I started off the night with a trio of seasoned fries (herb-sprinkled, onion-scented and cheddar-dusted), cooked in duck fat. The fries arrived with three different dipping sauces (pickle-infused ketchup, BBQ sauce and an onion dip). Little did I know this trend of trios would become the dominant theme of the night. We continued our meal with lemon-drizzled poached prawns; the Bibb wedge salad, with subdued Point Reyes blue cheese and touches of sprinkled bacon, avocado, croutons, tomato and onions; and the table favorite, the Foie Gras Sliders — with the liver so moist and tender, juices were not only flowing from the sliders, but also from our mouths. H o w e v e r, t h e feast had only begun, and we realized this once our surf and turf dinner entrees began making their appearances. First up, the Tasting Trio of Beef — three types of beef perfectly paired with its individual side dish. The cast included the wood-grilled rib-eye flat with sweet, creamed corn; the flat iron steak made with American Wagyu beef, paired with soy-glazed shiitakes mushrooms; and the New York strip, also woodgrill, with smoked-onion sauteed spinach. 68 AB | November-December 2011

What makes the mesquite-grilled steaks so distinct? As our waiter Chris informed us, Bourbon Steak always cooks with natural, organic and hormone-free beef, slow-poached and cooked over a wood-fired grill. And with such attentive, patient care invested into the cuisine, it’s no wonder Bourbon Steak was the critics’ pick for best steakhouse on azcentral.com’s Best of 2011 list. The surf portion of our dinner included the tapiocacrusted snapper, with a clean presentation and comprised of basmati, an almond crunch and a touch of sesame vinaigrette. Shortly after, the true show-stopper rolled up to the table — the Maine Lobster Pot Pie The lobster was tucked away beneath the crust, and as the waiter sliced open the pie, the aromas of the concoction intoxicated us, the billowing steam momentarily blinded us. We sat salivating, teased, as the waiter reassembled the lobster before us, thoroughly enjoying the presentation — especially when the green beans were delicately and playfully placed as the antennas, as the reconstructed lobster swam in a concoction of carrots, potatoes, brandied lobster cream and various other fall vegetables. Needless to say, the dish was incredible. To round out our night, it was only fitting to order the beignets, a trio of desserts, including homemade vanilla crème brulèe, Macallan 18-year butterscotch pudding and Valrhona dark chocolate pot de crème. My personal favorite? The Valrhona chocolate custard, a red velvet cake with pecans and topped with a featherlight mousse. IF YOU GO: Bourbon Steak 7575 E. Princess Dr., Scottsdale (480) 585-4848 www.scottsdaleprincess.com/dining/bourbon-steak

Master-Salt Cellar-AZBusMag-12.10:Layout 1

12/7/10

Fresh Seafood... Featuring the Valley’s largest selection of fresh fish and seafood • Live Maine lobster, Alaskan King Crab and Yakimono Hawaiian Ahi are just some of the delicacies that make the Salt Cellar Restaurant so popular • Maryland crab cakes, shrimp San Remo on artichoke pasta as well as charcoal broiled fish and Cajun-style blackened seafood are additional menu items you’ll want to try • Quiet, cozy and intimate, the Salt Cellar is a favorite for those who appreciate fine seafood • Don’t miss our popular twin happy hours daily from 4:00pm to 7:00pm and again from 10:00pm to 1:00am.

550 N. Hayden Rd • Scottsdale, AZ (480) 947-1963 • www.saltcellarrestaruant.com Dinner served nightly

DISCOVER WHERE TO MAKE MONEY IN TODAY’S MARKET!

ate D e h t Save

is coming! Attend Hourly Seminars and Hear Financial Professionals Discuss Your Financial Future

New The

602.241.1510 800.281.3378 ﬁnancialfest.com AB | November-December 2011 69

3:33 P

ARIZONA BANKERS ASSOCIATION

70 AB | November-December 2011

BACK GAME IN THE

TIME IS RIGHT FOR GROWING BUSINESSES TO REACH OUT TO BANKS FOR FINANCIAL PUNCH By Nicole Klauss

ow might be the right time for businesses looking for financial backing to reach out to banks to help with plans for expansion

Paul Hickman, president and CEO of the Arizona Bankers Association Photo by Duane Darling

and growth. The status of business lending in Arizona has been in question during a tough economy, but the reaction from Arizona banking representatives has been similar across the board: banks are lending, and the number of loans issued has increased over the past year. Most banks in Arizona have weathered the economic crisis fairly well, and have had the ability to continue to make loans. Dean Rennell, a regional president at Wells Fargo Bank says he has seen a steady improvement in business lending over the past year.

During that period Wells Fargo extended approximately $14.9 billion in loans to small businesses nationwide, a 13 percent increase over the year before. In Arizona alone, Rennell says he has seen Wells Fargo’s lending increase 15 percent over the past year. “Borrowers are showing improved financial performance,” Rennell says. “That means they’ve adjusted to what people are calling the ‘new normal,’ and they’ve diversified and become more efficient.” Rennell is seeing a significant amount of loans from small businesses looking to buy competitors or real estate, or expand the company. Companies that had cut back on expenses are now starting to invest in new equipment and technology that they had refrained from purchasing in the past. AB | November-December 2011 71

Craig P. Doyle Curt Hansen Arizona regional president executive VP of the of Comerica Bank National Bank of Arizona

CEO LECturE SEriES Please join us for the CEO Lecture Series featuring some of the valley’s most successful CEOs. Learn more about their leadership techniques and the best practices that took them to the top of their industry!

To find out more about upcoming speakers and events visit

gcu.edu/ceoseries There is no cost for this series, but space is limited.

Presented by:

72 AB | November-December 2011

Dean Rennell regional president at Wells Fargo Bank

“We’re seeing expansion requests and some businesses are taking advantage of the opportunities they see in the marketplace,” Rennell says. Arizona banks have been able to lend during the recession because Arizona has a large number of companies that are well managed and credit-worthy, experts say. “Most banks in Arizona are capitalized and have enough liquidity and capacity to make loans,” says Curt Hansen, executive vice president of the National Bank of Arizona. “There are a lot of well-run large and small banks, and Arizona is a good market long-term.” When looking at possible loans, banks still desire the same qualifications they have in the past, such as a good track record, a strong management team and an ability to weather tough times. The biggest difference now is that banks are paying more attention to the actual documents required for the loan. “Bankers are looking at borrower’s ability to withstand short-term shocks and the borrower’s ability to repay the loans requesting,” Hansen says. Lynne Herndon, city president at BBVA Compass, has seen an increasing number of loan requests coming from the small business segment. “Almost 70 percent of business owners in Arizona belong to the smaller business segment, and that’s the segment where we’re seeing growth,” Herndon says. “Those entrepreneurs and business owners were cautious before and are beginning to venture out more.” Most businesses large or small have some form of lending, whether it is a line of credit, equipment loan or real estate loan. Lines of credit are necessary for companies to continue to operate, and many companies are renewing the lines of credit they already have. BBVA Compass Phoenix saw double-digit loan growth in 2010 of about 12 percent, and has seen about a 15 percent increase in 2011. The only area where Herndon says he doesn’t see as many loans being issued is in real estate lending. According to Herndon, the uncertainty in the Arizona housing market plays a huge role in the decline of real estate lending. People are still wondering if values have hit bottom. “The economy is still a concern, and the political climate,” Herndon says. “Most of the companies and businesses here need a banking relationship in order to maintain and grow their company. The demand for loans is definitely increasing and I’m hopeful this trend will continue to improve.”

AS A LOCAL BANK THE RE IS ONLY ONE THING WE WANT TO DO.

The Biltmore Bank of Arizona is the leading locally-owned and operated business bank in the state. We provide you direct access to key decision makers, experienced bankers and the financial capacity to meet your needs – so you can get down to business without giving up local service. Treasury Management | Commercial Lending | SBA Lending | Business Banking

5055 North 32nd Street, Phoenix, AZ 85018 | 14850 North Scottsdale Road, Scottsdale, AZ 85254 Phone 602.992.5055 | Fax 602.992.5054

1 Mid-Sized Bank by Ranking Arizona

AB | November-December 2011 73

AzBA

74 AB | November-December 2011

LAWYERS SEE STABILITY IN FINANCIAL INDUSTRY BANKS’ ABILITY TO STAY ON TOP OF LOANS AND CLAIMS SHOWS THEY ARE SOLID, EXPERTS SAY By Nicole Klauss

s Arizona struggles to recover from a struggling economy, law firms are seeing a rise in the number of complaints filed in relation to banks

and loans. Arizona lawyers have specifically seen an increasing number of claims involving commercial real estate and foreclosures. This indicates to lawyers that banks are stable and will maintain stability if they continue to stay on top of these loans and claims. Brad Vynalek, partner at Quarles & Brady, says that banking cases are trending upward in number, and have become extremely common in most practices. If law firms didn’t have financial loan departments in the past, they do now. Small and mid-size firms are expanding to include departments to handle loans.

Vynalek routinely deals with financial cases, and represents banks in various aspects of the litigation process, either as the defendant or plaintiff. He has represented banks in enforcement actions against borrowers and guarantors, lender liability defense, fair market value hearings and trustee’s sales. About 50 percent of the cases Quarles & Brady takes on involve financial institutions in some way. “It’s purely a function and a reflection of the market,” Vynalek says. “We’ve seen more cases involving banks than we have over the last five years and will continue to see an increase.” Some of the most common banking cases that are popping up are cases involving loans against borrowers on large commercial properties. Often, the people and companies who have defaulted just don’t have the resources to pay the loans back. AB | November-December 2011 75

AzBA

For commercial properties that had many tenants and now have very few, it can be difficult to come up with the money to pay the lender back. Law firms are also seeing a growth in the number of counterclai ms that borrowers are filing. The counterclai ms are usually geared towards dragging out litigations. Banks are stable because Brad Vynalek, they are staying Quarles & Brady firm on settling loan delinquencies. Banks want to be able to give out loans to help stimulate the economy, but in order to do that they have to follow up with the loans in default. “Consumers should know that

76 AB | November-December 2011

banks are committed to trying to make this a better economic climate,” Vynalek says. “Banks have to enforce the loans in their books, and banks will do better as the economy does better.” Banks will continue to play a key role in the economy as they begin to sell the commercial real estate they have obtained through foreclosures. “I think that there are a lot of banks with significant portfolios of foreclosed properties that haven’t even hit the real estate market yet,” Vynalek says. “They’ve got to sell the inventory of foreclosed homes and commercial real estate properties.” Jennifer Dioguardi, partner at Snell & Wilmer, has also seen a significant increase in banking cases involving commercial properties. “A lot of commercial real estate properties are under water,” Dioguardi says. “They have a high vacancy rate,

which means they’re not generating enough cash flow to pay the note.” In cases involving commercial real estate and delinquent loans, lawyers work to help the bank achieve an agreement, either by pursuing payments or working out other options with the borrowers behind closed doors. Dioguardi regularly handles litigation involving the representation of national and local banks, mortgage lenders, and credit card issuers. She has an emphasis on banking, commercial, financial services and securities litigation. Specifically, Snell & Wilmer has seen an increase in litigation matters brought against mortgage lenders and services by homeowners. In these cases, the homeowners file documents to challenge the various aspect of loans or the foreclosure process in order to have their homes avoid being foreclosed upon.

Many of the documents being filed by homeowners are loan modifications or restraining orders to stop trustee’s sales, and oftentimes the allegations in the complaint do not have legal value; however, when loan modifications are appropriate, banks are taking care of them. According to Dioguardi, it has become common for homeowners to go online, gather information and represent themselves. Many of the arguments posed online don’t have any actual legal merit, so homeowners fail to stop the foreclosures. Banks are forced to follow up on loans in default to ensure the industry stay stable. If banks don’t take ownership of their finances, the result of many delinquent loans can be detrimental to the bank itself. If banks aren’t making money or receiving money back from loans, they can fail and be closed by the

Federal Deposit Insurance Corporation (FDIC). Arizona had 11 failed banks from 2009 to 2011, according to the FDIC failed bank list. Jennifer Dioguardi, Dioguardi isn’t Snell & Wilmer expecting that number to skyrocket over the next year. “We can anticipate some additional bank failures in the next year or so, but I think the vast majority will weather the crisis,” Dioguardi says. “There will always be a need for banking services.” Despite increasing regulation, banks have continued to remain a working part of the economy, and are focused on helping borrowers to their fullest extent.

Consumers should know that banks are committed to trying to make this a better economic climate

AB | November-December 2011 77

FINANCE

BANKING ON INFLUENCE INDUSTRY PACKS BIG IMPACT ON THE STATE’S ECONOMY AND COMMUNITIES

By Nicole Klauss Bank of Arizona President Ryan Suchala recognizes the importance of community. “This is where we live, work and play and in many cases the city where we are shaping our families,” Suchala says. “As a father of three I give my time to better our community because this is where my boys will become men. Last year, Bank of Arizona employees spent close to 450 hours working in our community and I personally became a board member at Arizona Women Education and Employment.” To show the Arizona banking industry’s impact on its communities, the Arizona Bankers Association (AzBA) produced a brochure titled “Arizona Banks Give Back.” The report provides a picture of the economic and charitable support the banking industry gives back to the communities it serves, and shows the influence banks have on Arizona’s economy. AzBA is an organization with more than 70 members that works to create a unified voice and engage members in issues that affect the banking industry. “It’s clear the banking industry has been under a microscope the last few years,” says Lynne Herndon, city president of BBVA Compass. “We wanted to pull our information and be treated collectively as an industry to say we are looking to work with companies to help them with their financial needs.” AzBA created the “Arizona Banks Give Back” survey in November 2010 to collect a variety of data from Arizona banks. The results were released in February 2011. The 12-page brochure includes statistical data that shows how banks provide financial and social stability in Arizona. The banks that chose to participate in the survey felt that it provided a good opportunity to change the way people currently view banks. The biggest surprise to Paul Hickman, president and CEO of AzBA, was how high bank lending was in Arizona in 2010. According to the survey results, Arizona banks lent $5.9 billion in new and renewed commercial loans, and more than $11 billion in new and renewed consumer loans in 2010. 78 AB | November-December 2011

Ryan Suchala, president of Bank of Arizona, recognizes the importance of community

Lynne Herndon, city president at BBVA Compass

“A lot of the feedback we’ve been getting is ‘Wow, I didn’t realize the volume of lending was that great in this economy,’” Hickman says. The number is likely higher as only 35 AzBA-member institutions responded to the survey, which only represents 63 percent of the organization’s membership, and does not include information from non-member banks. In today’s economy, banks are more cautious about lending, but the data proves that Arizona banks are continuing to lend to commercial businesses and consumers. “We keep hearing banks won’t lend,” Hickman says. “But banks don’t make money if they don’t lend.” Banks want to lend so they can pump money into Arizona’s economy. Arizona banks provide direct loans to help the state government finance public improvements by improving water, sewer and public health facilities and by helping build schools. Banks pay income tax to help support local communities as opposed to credit unions, which don’t pay federal income tax. Arizona banks are also putting money into the economy by being a leading employer of local residents. Banks bring high-wage jobs to the local community, and employ more than 42,000 Arizonans. Wells Fargo Bank was the fifth largest employer of Arizonans in 2010, and the average salary for an employee working at a bank was around $66,625 in 2010. By providing jobs, banks provide a ripple effect in the community, because employees pay state taxes and are also consumers that put money back into local businesses. Arizona banks are also doing more than just putting money into the economy. Members of Arizona banks are striving to aid their community through service. According to the results from the Arizona Banks Give Back survey, bank employees donated 211,615 volunteer hours to community service in 2010, and donated $15.5 million to charitable and cultural organizations. “Actions speak louder than words,” says Craig P. Doyle, Arizona regional president of Comerica Bank. “We get out

AB | November-December 2011 79

FINANCE and are active in making a difference in our communities. It’s better than just handing money out.” To show their commitment to the communities they serve, Comerica employees work with nonprofits like Fresh Start Women’s Foundation, Homeward Bound, Junior Achievement, Sojourner Women’s Shelter, United Food Bank, Central AZ Shelter Services and many others. An effort from Suchala and the Bank of Arizona helped improve literacy across the Valley. “Last year, we hosted our annual Caring for Kids Book Drive and collected over 14,000 books for children and adults in our community,” Suchala says. “We educate with multiple employees teaching Junior Achievement programs and with educational programs to local school children. Our employees have worked together this past year sorting school supplies at the annual Salvation Army Pack to School Drive, serving food alongside Alice Cooper for the Cooperstown Christmas for Kids event and pounded nails at two Habitat for Humanity events.” “These are good members of the community,” Hickman says. “These are people that are donating their money and time at philanthropies around the state and

WAYS BANKS GIVE BACK By Nicole Klauss

ARIZONA BANKS EMPLOY CREATIVE METHODS TO PUT THE SPOTLIGHT ON COMMUNITIES Mohave State Bank: Junior Bankers

Mohave State Bank launched a pilot program called “Junior Bankers” at Jamaica Elementary School in Lake Havasu City in 2008. Six junior bankers were selected and trained to take deposits, balance accounts, and learned banking rules. Now in its third year, the Junior Bankers program has been expanded to include three more elementary schools. 80 AB | November-December 2011

they’re trying hard to impart their discipline.” Arizona banks participate in programs such as neighborhood revitalization, financial education and assistance for the underprivileged. In 2008, Mohave State Bank created a program called “Junior Bankers.” Three years later, Mohave State bankers are still training children at Jamaica Elementary School in Lake Havasu about balancing accounts, taking deposits and bank rules. Volunteers meet each week with students before school. The program has expanded to three other elementary schools. In 2010, the National Bank of Arizona donated one of its foreclosed homes in Glendale to Habitat for Humanity Central Arizona. The bank partnered with the organization to help renovate the property, and 118 people worked to build walls, paint and landscape the property. Arizona banks are committed to helping the community both financially and through service, Hickman says. “This industry is like the cardiovascular system of our economy and it needs to be robust and healthy,” Hickman says. “We don’t grow or recover without this industry.”

Bank of Arizona: Caring for Kids Book Drive

Bank of Arizona hosted its annual Caring for Kids Book Drive and collected more than 14,000 books for children and adults in our community. In addition to collecting books, Bank of Arizona’s annual campaign focuses on raising awareness of the importance of literacy in our communities. Children are also encouraged to be active in their local communities by being educated about issues and voting.

M&I Bank: Heroes Day

M&I Bank created Heroes Day 2010, during which it honored all first responders in the greater Tucson market. M&I served breakfast, lunch and dinner to more than 800 firefighters, law enforcement officials, EMTs, and others. they also recognized four individuals who were cited for their extraordinary responses during a crisis.

National Bank of Arizona: Habitat for Humanity In 2010, National Bank of Arizona donated one it its foreclosed home to Habitat for Humanity Central Arizona. For seven weeks, 118 National Bank of Arizona employees teamed up with Habitat for Humanity to completely renovate the Glendale property, painting walls, sanding, and even doing landscaping.

The Foothills Bank: Christmas Village

In December 2010, The Foothills Bank participated in the first annual Christmas Village, which was open for 20 days in December and featured eight Dr. Seuss-style buildings, an ice-skating rink and Santa’s Gift Shop. As a sponsor, The Foothills Bank purchased a Dr. Seuss-style bank, where children could purchase a $1 gold coin that could be used in Santa’s Gift Shop, where all the gifts were $1.

A SHIFT IN THE WAY WE GIVE BUSINESSES ARE STILL CHARITABLE, BUT ARE MORE DISCRIMINATING ABOUT WHERE TO SPEND THEIR TIME AND DOLLARS By Don Harris

Like the economy, a dip in corporate giving appears to have bottomed out, but the charitable landscape has changed both for givers and receivers. Nationally, corporate giving rose 10.6 percent in 2010, according to the Giving USA Foundation. In Arizona, Laine Seaton of the Greater Arizona Chapter of the Association of Fundraising Professionals says corporate giving is improving, with some caveats. “It’s starting to get a little better – slowly,” she says. “Two years ago was definitely worse than it is now. I’m seeing more companies looking at alternate ways to support nonprofits. Definitely, volunteerism is up.” Terry Shannon, president and CEO of the St. Mary’s Food Bank Alliance, says volunteers save the food bank $5 million a year in labor costs. “We get many corporate groups from companies like American Express, Wells Fargo, Bank of America and Target,” Shannon says. “It keeps their employees together – sorting, bagging and boxing food for distribution – and it almost functions

as a team-building effort.” Besides utilizing volunteers, Seaton says nonprofits have also targetted a new demographic. “Nonprofits these days are also looking at twenty-somethings,” she says. “They didn’t have money to give. That’s not the case anymore. Young people want to make a difference. They have energy and new ideas. Social media is part of that effort.” Despite the struggles of some corporations and non-profits, Phoenix Suns Charities distributed a record $1.36 million to 178 charitable organizations last year. That tops the previous year’s record of more $1.2 million awarded to 156 recipients, and marks the two best years since Phoenix Suns Charities was formed 23 years ago. “(The community is) connected at the hip to a stellar organization – the Phoenix Suns,” says Kathryn Pidgeon, executive director of the NBA team’s charitable arm. “The community loves the Suns. Our donors really believe in us, trust us. They know the money is going for the kids.” AB | November-December 2011 81

For more than 100 years, patients have trusted their lives to Mayo Clinicâ&#x20AC;&#x2122;s expertise. Benefactors partner with Mayo Clinic because they know their gifts are helping to set a new standard for health care, saving and changing lives now and for generations to come.

arizona corporate angels

National Kidney Foundation of Arizona

4203 E. Indian School Rd., Suite 140, Phoenix, AZ 85018; (602) 840-1644; azkidney.org

Mission statement

More than 26 million people – 600,000 Arizonans – have chronic kidney disease. 90% do not know it. NKF AZ exists to spread education and awareness throughout Arizona, emphasizing the importance of “Knowing your GFR”, while offering direct aid to those who may already be living with kidney disease. NKF AZ is committed to the prevention of kidney disease through awareness, education and research and to improve the quality of life for Arizonans with kidney disease.

Board of directors

Ways to participate

NKF AZ holds many exciting fundraising events throughout the year, including Dancing with the Stars AZ, NKF Golf Classics, and Kidney Walks held in Phoenix, Tucson and Flagstaff. These events offer the opportunity to come out together as a community in support of kidney disease awareness and aid. NKF AZ also offers free public Kidney Early Evaluation Program (KEEP) events across Arizona throughout the year, providing Arizonans with medical screenings for kidney disease and its other risk factors.

Christopher J. Hogan, chairman, Blue Cross Blue Shield of Arizona Leonard McDonald, vice chairman, Tiffany & Bosco Pam Paul, treasurer, Arizona Kidney Disease & Hypertension Center John Rausch, secretary, Cigna HealthCare of AZ Andrew W. Bombeck, community leader Linda Gantt, community leader Marchelle Franklin, City of Phoenix Kevin Marinan, Marathon Resources Inc.

84 AB | November-December 2011

Coming soon

Nearly 1,500 Arizonans are waiting for a kidney and NKF AZ through The Erma Bombeck Project will provide Living Kidney Donor Awareness and Education to close the gap between the number of individuals who need a kidney and the number of kidneys that are available. Become a Living Kidney Donor. Give the Gift of Life. Watch for the launch of the The Erma Bombeck Project in early 2012.

Bruce Z. Morgenstern, M.D., Phoenix Children’s Hospital Samuel H. Rogers, Jr., community leader Savas Petrides, M.D., Arizona Kidney Disease & Hypertension Center Karny Stefan, Phoenix Children’s Hospital Foundation Michael R. Urman, Deconcini, McDonald, Yetwin & Lacy, P.C. Andre F. Wilson, Altima Business Solutions

NATIONAL KIDNEY

Arizona’s Children Association

arizona corporate angels 2833 N. 3rd St., Phoenix, AZ 85004 (602) 234-3733 2700 S. 8th Avenue, Tucson, AZ 85713 (800) 944-7611

Mission statement Protecting children. Protecting families. Across Arizona since 1912.

Board of directors

To contribute

Arizona’s Children Association has a number of ways to give that can match your interests and abilities. Visit hope3ways.org to learn more.

Ruth Osuna, chairperson, City of Eloy Ingrid Novodvorsky, chair-elect, University of Arizona

86 AB | November-December 2011

To volunteer

From fundraising event volunteers to those who provide direct care to clients, from one hour a week to hundreds of hours a year, we have a volunteer opportunity to ﬁt your unique skills and schedule.

Holley Stacy, 1st vice chair, M&I Wealth Management Thomas McKenna, 2nd vice chair, Tucson Electric Power Amelia Anderson, treasurer, US Airways

Arizonaschildren.org Hope3Ways.org

Achievements

Arizona’s Children Association provides services to children, individuals and families in every county across the state.

Barbara Sparks, secretary, Ridgewood Associates Public Relations, Inc. Thomas Knox, past chairperson, PICOR Commercial Real Estate Services

MEMBERS OF ARIZONA’S CHILDREN ASSOCIATION FAMILY OF AGENCIES

AB | November-December 2011 87

United Cerebral Palsy of Central Arizona

arizona corporate angels

1802 W. Parkside Lane Phoenix, AZ 85027 (602) 943-5472 ucpofcentralaz.org

Mission statement

UCP of Central Arizona provides comprehensive services to individuals with disabilities and their families by providing physical and developmental support, as well as educational growth, which is the foundation for independent living.

Board of directors

To contribute Donations can be made at your neighborhood Circle K stores in the coin collection canisters.

Barb Goldberg, board chairwoman Veronica De La O, board vice president/development committee chairwoman, Purple Coyote Catering, LLC Robert Anderson, board secretary, Posinelli Shughart PC Christopher A. Jones, board treasurer, Schmidt Westergard & Company, PLLC

To volunteer

Volunteers, interns, peer mentors, administrative work and help with special events are always needed.

Opened Cafe Without Limits, a snack bar and retail store that provides job skills training for adults with disabilities.

Cristina Carballo Perelman, MD, Neonatology Associates. Ltd. Heather E. Heller, Circle K Stores Richard Mart, Walmart Terry Morrison, Crescent Crown Distributing Alane Pignotti, program committee chairwoman, US Digital Media Leo Valdez, Hutchinson Shockey Enly & Co. Jane Wilbershide, ďŹ nance committee chairwoman

Page sponsored by Circle K 88 AB | November-December 2011

Achievements

For more information about our services and how you can help, please visit us at: www.UCPofCentralAZ.org

Since 1952, UCP of Central Arizona has assisted thousands of individuals with disabilities and their families. Those served have disabilities including cerebral palsy, autism, Down syndrome, developmental delays, and learning disabilities.

Our Services • Information and Referral

• Day Treatment & Training

• Early Intervention

• Home & Community Based Services

• Early Learning Center

• Therapy Services

Your small change makes a big diﬀerence. You can help support the vital work UCP does every day in the community by donating your spare change at any neighborhood Circle K. 100% of all change collected is given directly to United Cerebral Palsy of Central Arizona, where we serve thousands of children, adults and families with disabilities.

1802 West Parkside Lane Phoenix, Arizona 85027 1-888-943-5472 or 602-943-5472

arizona corporate angels

Mission statement

To provide hope and opportunity to low-income children and low-income children with disabilities, by providing tuition scholarships to attend private elementary and secondary schools.

Board of directors Clint Bolick Elizabeth McVaugh Tom Jenney

90 AB | November-December 2011

Arizona School Choice Trust P.O. Box 1616 Glendale, AZ 85311

To contribute

Individuals and corporations with a tax liability have the opportunity to receive dollar-for-dollar tax credits while funding scholarships for economically disadvantaged children in Arizona.

Dan Edwards Matthew Ladner Neland Nobel

(623) 414-3429 asct.org

To volunteer

CPAs and business leaders are needed to reach out to the community with information about the organization and tax credit opportunities.

Achievements

Arizona School Choice Trust has awarded more than 10,000 scholarships to Arizona students since 1993.

Bertrand Russell Michael Harris Diane Ortiz Parsons

Turn your corporate income tax liability into scholarships for Arizona students.

THOUSANDS OF KIDS ARE WAITING FOR YOUR HELP. Arizona allows businesses to redirect their corporate income taxes and insurance premium taxes to a scholarship organization for Arizona students to attend a private school of their choice. Contact Arizona School Choice Trust for more information today! www.asct.org

Phoenix Rescue Mission

arizona corporate angels

Mission statement

To rescue lives, to save lives, to change lives, to serve lives. The vision statement is “Glorify God by bringing people to wholeness in Christ.”

Board of directors

1801 S. 35th Ave. Phoenix, AZ 85009

To contribute

Visit phoenixrescuemission.org, call (602) 346-3336, or use their holiday catalog to buy gifts for the homeless and hungry.

To volunteer

Visit phoenixrescuemission.org/act or call 602-346-3363.

Paul Reichert, chairman, AMS Health Clinic, LLC Carl Johnson, vice chair, retired Mary O’Hanlon, vice chair, Barclay Communications CEO Kevin J. Biesty, secretary, Arizona Department of Transportation

92 AB | November-December 2011

(602) 233-3000 phoenixrescuemission.org

Achievements

The Phoenix Rescue Mission just opened the Changing Lives Center for women and children in August 2011. The Changing Lives Center is a long-term, 66-unit, intensive residential program for homeless or at-risk women and women with children who are seeking recovery from chemical dependency, domestic violence, and other life-controlling problems.

Ron Eriksson, treasurer, retired vice president of Dial Corporation Phyllis Barbee, community leader Paul C. Senseman, Jr., Policy Development Group Kathleen Hall, community leader Brenda Combs, Grand Canyon University Mike Kuzara, Sparkletts

Nancy Witherill, community leader Dr. David R. Sanderson, retired Larry Mann, Mann Asset Strategies Dennis Pickering, Behcon, Inc., president and CEO Jim Scarp, Watchdog, Inc. owner

As a company with more than 500 employees in the Valley, Magellan Health Services of Arizona brings together diverse individuals who care about doing the right thingâ&#x20AC;&#x201D;helping those whose care we are entrusted with, as well as our colleagues and others in our community, particularly in times of need. In 2011 Magellan launched its new corporate citizenship program, Magellan Cares. This program promotes social action, community engagement and employee development to give back and positively impact our community. Magellan Cares focuses on the volunteer activities of employees and their family members as well as support through sponsorships and in-kind donations. At Magellan, caring is one of our core values and serves as the foundation of the culture we foster within the company and externally with our partners in our community. Through Magellan Cares, employees turn this emotion into action. Whether itâ&#x20AC;&#x2122;s serving dinner for families with sick loved ones at the local Ronald McDonald House, collecting bottled water for those without, or donating household essentials to individuals transitioning from homelessness to a homeâ&#x20AC;&#x201D;these and other projects make a difference in the lives of those in need. To learn more about Magellan Cares, access

www.MagellanofAZ.com/communityreinvestment.

2011 Magellan looks back on a year of caring 2011 National Alliance on Mental Illness (NAMI) Walk More 250 employees and their families walked and raised funds in support of those challenged with mental illness. Dinner Prep/Serving at Ronald McDonald House Volunteers on two evenings made and served dinner for families with sick loved ones. Summer Bottled Water Drive for Behavioral Health Recipients Employees donated almost 7,500 bottles of water for those in need during the hot summer months. Healthy Food Demonstrations for Behavioral Health Service Recipients Volunteers conducted multiple work shops in area care clinics to demonstrate how small changes in the selection and preparation of foods can make a big difference in recipientsâ&#x20AC;&#x2122; health. Home Start-up Kits Donated to Arizona Behavioral Health Corporation Employees donated new household items to build kits for individuals transitioning from homelessness to housing. 2011 Walk Now for Autism Speaks 5-K Walk Magellan employees and their family and friends walked and raised funds for autism research and care.

MY Fest â&#x20AC;&#x2DC;11 Youth Festival Volunteers staffed booths for the festival, which was led by Magellan Youth Leaders Inspiring Future Empowerment (MY LIFE) and garnered more than 6,000 attendees and greater awareness of how those challenged with mental illness can and do achieve recovery and contribute to their communities. Easter Baskets for Church on the Street and Child Crisis Nursery Employees put together 120 baskets and 70 goodie bags for homeless and at-risk children to help ensure they enjoyed a happy holiday season. Care Packages for Active Duty Service Men and Women Employees donated dozens of items for multiple care packages to show their appreciation for those serving in the armed forces. Streets of Gold Leadership Program for Homeless Individuals Magellan sponsored lunches and workshop materials to help more than 250 homeless individuals learn how to share information about resources available to them and others in the community. 2011 Computer Giveaway Program Volunteers helped give away 280 computers to behavioral health recipients and their family members, and 20 computers to peer/family-run and service provider agenciesâ&#x20AC;&#x201D; connecting these individuals to online resources available with technology.

AB | November-December 2011 95

Coming March 2012

BECAUSE YOUR HEALTH IS THE POINT

CALL FOR NOMINATIONS We’ll honor the individuals and organizations that have made strides in helping Arizonans receive better health care. All of the Finalists and Winners will be published within the March/April issue of Arizona Business Magazine.

Janitorial & Custodian Services · Carpet Cleaning Metal Marble, Glass Maintenance Floor Stripping & Refinishing Medical Terminal Cleaning · Green Cleaning

480.463.4131 ~ healthpointcs.com

• Community Outreach • Dentistry • First Responder • Hospital Administrator • Hospital Executive • Institutional or Educational Program • Insurance Provider

For information on sponsorship opportunities or advertising please email: events@azbusinessmagazine.com or call 602-277-6045.

Healthcare 2011 nominations.indd 1

96 AB | November-December 2011

• Health Care Manager • Medical Center or Hospital • Nurse or Nursing Advocate • Physician • Researcher • Surgeon • Volunteer

10/21/11 4:47 PM

SMALL BUSINESS

LESSONS

FOR LEADERS SMALL BUSINESS LEADERSHIP ACADEMY HELPS BOOST KNOWLEDGE BASE FOR EXECUTIVES

Photo by Cory Bergquist

BY MICHAEL GOSSIE

ike most small business owners, Brandon Taylor is always looking for ways to boost business. “I wanted to learn how to be a better manager and entrepreneur,” says Taylor, president and co-founder of Scottsdale-based CPR Savers & First Aid Supply. “I eventually want to get an MBA and I thought the Small Business Leadership Academy program was a great step in that direction.” Jointly developed by the W.P. Carey School of Business and the Salt River Project (SRP), the Small Business Leadership Academy (SBLA) is an intensive executive education program designed to strengthen the business insight, skills and knowledge of small business executives. The 10-week program is now in its fourth year. “The curriculum is based primarily on courses taught in our MBA programs,” says Trevis Certo, an associate professor at Arizona State University who taught an SBLA module called Strategy for Competitive Advantage. “At the same time, we focus our discussions on concepts and topics that are most relevant to small companies.” Gaining a better understanding of those concepts that can impact a small business owner’s bottom line is what benefits participants the most. “The SBLA program touches on

Brandon Taylor, president and co-founder CPR Savers & First Aid Supply

strategy, marketing, procurement, negotiation,” Taylor says. “I have learned some important principles like Porter’s Five Forces (a framework for industry analysis and business strategy development formed by Michael E. Porter of Harvard Business School), services blueprinting, and procurement techniques that have helped me think about ways to improve our business efficiency and day-to-day operations.” Certo says increasing a business owner’s knowledge base is particularly important in a turbulent economic environment. “Business owners are always looking for new ideas, and these searches are amplified during economic downturns,“ Certo says. “Several participants have discussed how competitors have ‘disappeared’ during the downturn. These disappearances provide opportunities for those who remain in the marketplace.” Taylor is one small business owner who sees education as a way to grow his business and make it stronger. “The more I learn, the better businessman, leader and manager I become,” Taylor says. “Everyone gets caught up in day-to-day operations and your business becomes a job. Taking the SBLA program has forced me to spend time improving the business operations and growing the company.”

Learn more What it is: Small Business Leadership Academy. Who does it: W.P. Carey School of Business and the Salt River Project (SRP), the program’s founding sponsor What it entails: A mandatory orientation followed by five modules - each consisting of two class periods — taught over a 10-week period. Classes consist of lectures, case discussions, group exercises and simulations, all geared to provide participants with key takeaways to strengthen and grow their businesses. Requirements: To qualify, you must have a minimum business tenure of three years; have annual revenues between $1 million and $10 million; have fewer than 100 employees; be able and willing to attend all scheduled classes and related activities. Tuition: $4,000, which includes all instruction, books and materials, parking, and graduation. A limited number of scholarships will be made available. Web: wpcarey.asu.edu AB | November-December 2011 97

Spirit

E NTERPRISE AWARDS

ENTREPRENEURIAL SPIRIT THRIVES IN ARIZONA TOP BUSINESSES OVERCOME ROUGH ECONOMY, NAMED SPIRIT OF ENTERPRISE AWARD FINALISTS

s the nation and state struggle through one of the most economically turbulent times in history, some of Arizona’s best businesses are still growing, adding jobs and boosting the communities that they call home.

To honor those companies that are surviving and thriving, the W.P. Carey School of Business at Arizona State University is recognizing the top businesses in the state for their achievements. The Spirit of Enterprise Center at the W.P. Carey School of Business has named 10 finalists for the prestigious Spirit of Enterprise Awards, now in their 15th year of celebrating entrepreneurship. The awards recognize ethics, energy and excellence in entrepreneurship. Finalists are noted for creating a positive culture both internally and in the community as a whole. Past winners include prominent Arizona-based businesses such as Cold Stone Creamery, Grand Canyon Railway and Sundt Construction, Inc. “We applied for the entrepreneurial award, which is unique in that we are a 119-year-old, employee-owned company,” says Richard Condit, chief administrative officer of Sundt, winner of the 2008 Spirit of Enterprise Entrepreneurial Leadership Award. “We learned that even in this kind of an ownership structure, the entrepreneurial spirit is alive and well at Sundt.” The Spirit of Enterprise Awards were given out Nov. 8 at the Westin Kierland Resort & Spa. The names of the winners were unavailable before this issue of Arizona Business Magazine went to press, but the finalists are profiled in the pages that follow this article. The Spirit of Enterprise Awards are just one focus of the Spirit of Enterprise Center at the W.P. Carey School of 98 AB | November-December 2011

Opening doors for your great ideas Business, which helps hundreds of businesses each year. The center offers companies the chance to recruit and meet with top student talent, while students get handson business experience. Through the center, businesses can access other ASU programs and create connections with community resources. Teams of W.P. Carey School of Business students also conduct research projects to help Valley companies through the Student Teams for Entrepreneurship Projects (STEP) program. The center is self-funded and utilizes community sponsorships and volunteers. For more information on the Spirit of Enterprise Center, visit www.spiritofenterprise.org.

Spirit

ANGEL MEDFLIGHT WORLDWIDE AIR AMBULANCE

“I started Angel MedFlight because I am passionate about improving air medical transport for our patients and their families, but the continued success of the company is a reflection of our dedicated staff.” — Jeremy Freer, CEO and founder, Angel MedFlight Worldwide Air Ambulance, with Kim Halloran, director of business development, and James Curtin, associate general counsel

Working as a critical care flight paramedic in 2007, Jeremy Freer was frustrated by the overwhelmed, inefficient system that often stranded patients in need of air medical transport. Confident that he could improve the process, he decided to launch his own air ambulance company to transport critically ill or injured patients in medically configured jets between healthcare facilities. Despite his relevant experience and passion for patient care, investors considered Jeremy too young and inexperienced. Undeterred, he funded the launch of Angel MedFlight with personal credit cards and loans, amassing nearly a million dollars in debt. Today, just four years later, his company is one of the fastest-growing privately-held firms in Arizona. Angel MedFlight stands apart from its competitors in a number of ways. Says Kim Halloran, director of business development, “Our One Touch Promise reflects our singular focus on the patient’s care. Our

E NTERPRISE F INALISTS

flight coordinators, who are themselves case managers or registered nurses, handle all of the details of the patient’s transfer. That really takes the burden off the patient’s case manager and family.” Angel MedFlight was also the first air ambulance organization with an in-house legal department to assist patients with insurance claims. “We work hard to get our patients the coverage to which they’re entitled. Without experts on their side, many of these patients would simply not be able to get where they need to be.”

Name of business: Angel MedFlight Worldwide Air Ambulance Nature of business: Transportation for critically ill or injured patients between healthcare facilities domestically and internationally Address: 8014 E. McClain, Suite 220, Scottsdale, Ariz., 85260 Web: www.angelmedflight.com Founded: 2007 Number of employees: 46

DUNN TRANSPORTATION OLLIE THE TROLLEY

“At 21 years old, behind the wheel of a 30-foot trolley, driving the Scottsdale resort route, I realized my passion. And I knew I had to go out on my own.” — Margaret Dunn, CEO, Dunn Transportation/Ollie the Trolley, center, with Susan Bookspan, Phoenix Children’s Hospital, left, and Melissa Schubert, director of operations

In college at ASU in 1983, Margaret Dunn needed a job. A friend saw that Molly Trolley was hiring and recommended Margaret check it out. She got the job, and “without much training” took her seat behind the wheel of the 30-foot trolley in Old Town Scottsdale. And then her part-time job turned into a passion. In 1986, Dunn decided “I simply had to build and run a trolley business on my own.” So at 21 years old, with $65,000 from her brother, she moved to Omaha, Neb., and started Ollie the Trolley. At first, it was a one-woman show in the truest sense of the word. “I was the driver, the cleaner, the oil changer, the ad executive, the reservations agent, the customer service manager, the bookkeeper. And I loved it.” In 1991, Dunn moved the company to Scottsdale, taking over the Molly Trolley contract. Building and maintaining close relationships with clients has been a key element in the company’s success. It’s one

factor that Dunn credits for enabling her to succeed in what was, in 1986 anyway, largely a man’s business. To this day, customers get hand-written thank-you notes and $5 coffee cards. In 2008, Dunn “finally” returned to ASU to finish her education. “It was in one of my classes that Rosemary the Trolley was born.” Named after her mother, Rosemary connects center city youth to nature and to other fun and educational opportunities. To date, she has transported more than 2,000 kids to the Phoenix Zoo, Audubon Arizona, the Desert Botanical Garden, and other local spots. Name of business: Dunn Transportation/Ollie the Trolley Nature of business: Passenger transportation service on daily routes for transit and private charters Address: 1680 N. 74th St., Scottsdale, Ariz., 85258 Web: www.dunntransportation.com Founded: 1986 Number of employees: 55 AB | November-December 2011 99

FORTIS NETWORKS, INC.

“We’re making changes now, laying the foundation today, to be even better positioned for the future.” — Clarence McAllister, CEO, Fortis Networks, Inc., right, with Robert Martino, vice president of operations

Clarence McAllister, an electrical engineer from Panama, and his wife Reyna, started Fortis Networks in 2000 out of their home. At first, the company provided security system installations for consumers. Today, they are a fullblown general contractor that works on federal government projects, including transportation projects in Phoenix, Houston, Salt Lake City, and San Francisco. In 2007 the company entered into the Small Business Administration 8a program, designed to help small businesses compete in the marketplace. The program has played a large part in Fortis Networks’ growth, which was 50 percent last year and 30 percent this year. Revenues for 2011 are estimated to be $10 million. The goal is that in 2016 when Fortis Networks graduates from the 8a program, it will be competitive enough to get contracts without the government setasides. To make sure they are, the company has been working to build the

infrastructure that will enable them to be self-sustaining by 2016. In 2010, Fortis Networks hired Robert Martino as VP of operations. Martino has “instituted structure” within the firm, but credits McAllister for adding management expertise. “If Clarence didn’t recognize that he needed help, the company wouldn’t be where it is today,” he says. Martino developed a system for contract administration and an estimating department, which allows the firm to go after bigger contracts. The results? In six months, Fortis Networks’ overhead fell 7 percent and income rose 9 percent. Name of business: Fortis Networks, Inc. Nature of business: Engineering, Construction and Technology Services Address: 4108 E. Air Lane Phoenix, Ariz. 85034 Web: www.fortisnetworks.com Founded: 2000 Number of employees: 50

JONES STUDIO INC.

“Every project gets the same level of attention. No matter how small or how big it is, it’s not about the money. The focus has always been on making better communities.” — Neal E. Jones, president, Jones Studio Inc., left, with Eddie Jones, principal

100 AB | November-December 2011

Brothers Neal and Eddie Jones always knew they wanted to be architects. They also knew they wanted to work together. In 1986, Neal Jones came to Arizona to join Eddie, who had started Jones Studio seven years earlier. Their first big break came a year later when the Phoenix Cardinals and City of Tempe hired Jones Studio to design their corporate headquarters and training facility (which, for 10 years, was recognized as the best training facility in the NFL). The firm made its debut in sustainable design with the first self-sustaining trailhead (“an outhouse,” Eddie Jones clarifies). That project led to a commission in 1992 to build the APS Environmental Showcase Home, a “pioneering example of sustainable design in Arizona” that turned into a college textbook and an eight-part PBS documentary — and lots of new work for Jones Studio. The firm’s largest project to date is the Mariposa Land Port of Entry in Nogales, a

$213 million, seven-year adventure. Neal Jones quickly points out “that we had no land port of entry experience when we got that job. Now we are rewriting the book on how to design a land port.” Neal and Eddie Jones judge the “outhouse” and the land port with equal measure. “That sums up our story best: that a little outhouse was just as important to us as a 53-acre land port of entry. We are a profitable company, but it has never been about the money. We impose standards of design excellence on ourselves in order to make better places, to make better communities, to make better cities.” Name of business: Jones Studio Inc. Nature of business: Architecture, planning, interior design, sustainable design, environmental design, and graphic design Address: 4450 N. 12th St., Suite 104, Phoenix, Ariz., 85014 Web: www.jonesstudioinc.com Founded: 1979 Number of employees: 13

Spirit

E NTERPRISE F INALISTS

MOUNTAINSIDE FITNESS

“Not everything we do is dictated by the dollar. Sometimes it’s just about helping people be healthy.” — Tom Hatten, president/ owner, Mountainside Fitness, right, with William Malkovich, CEO

In March 1991, armed with $2,000 in savings, a $15,000 loan from the credit union (that his parents co-signed for) and a $15,000 loan from a family friend (at 15 percent interest), 23-year-old Tom Hatten took out a lease on the 4,800-square-foot space and launched Mountainside Fitness. Those first years define what it means to bootstrap a company. “Everything was effort. We couldn’t afford to care less or try less,” Hatten says. He painted houses on weekends, using the income to pay his personal bills and putting every extra dime back into Mountainside Fitness. In 1996, he got a $1 million Small Business Administration (SBA) loan to buy his first piece of dirt and build an 18,000-square-foot club. “That allowed Mountainside Fitness to catapult itself.” Hatten put his real estate gains back into the business, and Mountainside Fitness started to grow fast. Over the years, Hatten has learned what he didn’t know (“which was a

lot”) and acquired “great help.” Today, Mountainside Fitness has nine locations in Arizona and Colorado, with 40,000 active members and a team of more than 1,000 employees. Next year, the company will open its 10th and 11th facilities. Hatten’s biggest pride? “Being Arizona-grown.” A key element of Mountainside’s success is its passion for helping people make exercise a part of their lifestyle. “That’s a hard thing to do these days, but over the past two decades we’ve learned that people will care more about their health if we make our clubs friendly, entertaining, with something to do for the entire family.” Name of business: Mountainside Fitness Nature of business: State-of-the-art fitness facility with locations in Arizona and Colorado Address: 120 S. Ash Ave., Suite 201, Tempe, Ariz., 85281 Web: www.mountainsidefitness.com Founded: 1991 Number of employees: 1,000

PHOENIX ANALYSIS & DESIGN TECHNOLOGIES (PADT)

“Our company is deeply passionate about solving problems for our customers. Every employee at every level in every department is driven to help solve problems.” — Eric Miller, principal, Phoenix Analysis & Design Technologies (PADT), right, with Ward Rand, principal

Phoenix Analysis & Design Technologies (PADT), a mechanical engineering sales and services firm, was founded by a group of engineers who felt that the tools and skills they used to design, analyze, and prototype aerospace systems could also be applied to other industries. “We wanted to take our destiny into our own hands and build a business that was a place we wanted to go to every day,” says Eric Miller, principal. Since then, the company has provided simulation, product development, and rapid prototyping products and services to more than 1,000 customers around the world. PADT forms partnerships with its customers and gives them the tools and skills to help make their products better, faster, and less expensively. “Our most important core strategy is also our deepest passion: solving customers’ problems,” Miller says. “We have found over the years that the best way to attract and keep customers is to exceed their expectations

and assist in making them successful.” Early on, PADT honed its product development skills through Small Business Innovation Research (SBIR) grants and “leveraged clients in one area to build business in other areas.” And now, PADT is giving back, making more than $225,000 in angel investments over the past three years and incubating three companies within its own facilities to “build the technology ecosystem in Arizona.” Being a place that’s fun to come to every day is still essential for PADT’s founders. “People really like working here,” Miller says. Name of business: Phoenix Analysis & Design Technologies (PADT) Nature of business: Mechanical engineering, sales and services Address: 7755 S. Research Dr., Suite 110, Tempe, Ariz., 85284 Web: www.padtinc.com Founded: 1994 Number of employees: 68

AB | November-December 2011 101

Spirit

REAL PROPERTY MANAGEMENT EAST VALLEY

“Why did I start this company? Because I didn’t want to have a job, I wanted to build a business.” — Clint Rowley, president, Real Property Management East Valley, center, with Kim Rowley, co-owner, and Sheryl Sainz, office managerz

Clint Rowley had a 2-month old baby at home when he quit his job to build a business. Out of the back bedroom of their home in 2007, Rowley and his wife started Real Property Management East Valley and “prayed it would work.” It did. “We reached 100 properties in less than 30 days,” Rowley recalls. “By the end of our first year, we had 500 properties.” Today, just four years later, Real Property Management East Valley manages 1,300 properties. Success hasn’t been easy. Last year, 300 of the properties under their management were foreclosed. But the company has learned how to work within the real estate market as it is. Today, they are a go-to property manager for real estate owned by HSBC and Wells Fargo and the only approved property manager in Arizona for Fannie Mae and Freddie Mac. How have they done it? In addition to a heavy dose of “good old-fashioned hard work,” one of the key elements of

E NTERPRISE F INALISTS

the company’s success is its commitment to clients and tenants. “After one client lost all four of his investment rental properties, we stuck with him, even though our contract was null and void,” Rowley says. “We helped him find a home to rent for his own family and we relocated his former tenants without management fees — which would have added up to thousands of dollars.” “We want our clients to be amazed by what we can do for them.” With referrals accounting for more than 30 percent of Real Property Management East Valley’s growth, it’s clear that they are. Name of business: Real Property Management East Valley Nature of business: Full-service residential property management Address: 950 E. Brown Rd., Mesa, Ariz., 85203 Web: www.RPMEastValley.com Founded: 2007 Number of employees: 28

VIRGINIA AUTO SERVICE

“I didn’t know anything about business, but I knew how to fix cars, and I knew how to take care of people.” — Matt Allen, president, Virginia Auto Service

102 AB | November-December 2011

Matt Allen always knew he wanted his own business, and that he wanted to work with cars. He got his start at age 16 while living with his parents in Virginia working as an apprentice, and then later working for Porsche Racing Team and at Camelback Porsche. At age 24, out of work after the Porsche dealership closed, he found Virginia Auto Service — out of business, boarded up, and for sale. “I knew that was my place,” Allen recalls. He bought the shop in 1994. He kept the name, not for strategic reasons, but because he couldn’t afford a new sign. A decade later, Allen got a call that everyone dreads: his shop was on fire. The building was nearly destroyed, but like the Phoenix rising from the ashes, the catastrophe made Allen get serious about the economics of his business. “For 10 years, I was getting by just fine,” he says. “But after the fire, to survive I had to pay close attention to the numbers — cash flow, revenue, expenses. I started

reviewing the reports my CPA sent me. And I invested much more heavily in marketing, training, equipment, and support.” It paid off. By 2006, business at Virginia Auto Service had doubled. Today, Allen credits much of his success to customer service. “Customers don’t like waiting around in the repair shop, no matter what kind of coffee they serve. So we give every customer who wants one a ride back to work or home after they drop their car off. When their car is done, we go pick them up again. Customers have told me that the courtesy shuttle is by far one of the most valuable services we offer.” Name of business: Virginia Auto Service Nature of business: Complete Car Care — Certified Technicians Address: 386 E. Virginia Ave., Phoenix, Ariz., 85004 Web: www.VirginiaAutoService.com Founded: 1995 Number of employees: 11

2011 TM

Celebrating Ethics, Energy and Excellence in Entrepreneurship

Congratulations to Our 2011 Spirit of Enterprise Finalists!

Angel MedFlight Worldwide Air Ambulance • Dunn Transportation/Ollie the Trolley • Fortis Networks, Inc. Jones Studio, Inc. • Mountainside Fitness • Phoenix Analysis & Design Technologies (PADT) Real Property Management East Valley • Virginia Auto Service • WebPT, Inc. • Worthy Institute, LLC

Thank You to Our Sponsors!

David B. Lorsch & Cynthia F. Lubin 2004 Spirit Family Business Award The Spirit of Enterprise Center W. P. Carey School of Business Arizona State University P: 480.965.0474 F: 480.727.6185 E: spiritofenterprise@asu.edu

The Spirit of Enterprise Center Opening Doors for Your Great Ideas For more information about our programs please visit us at www.SpiritOfEnterprise.org

To see the 2011 Spirit of Enterprise winners, please visit our website after Novermber 8, 2011.

Spirit

E NTERPRISE F INALISTS

WebPT INC.

“We were really trying to create a software product that would be everything all the others weren’t, especially cost effective.” — Heidi Jannenga, COO and co-founder, WebPT Inc., right, with Brad Jannenga, president and co-founder

In 2006, Heidi Jannenga, a physical therapist and clinic director, needed simple medical record documentation software that was affordable for her practice. She asked her then-boyfriend (now husband), Brad, a software developer, to help. When they couldn’t find an adequate solution, they decided to build their own. “In the back of a coffee shop in downtown Phoenix, we spent a lot of long days yelling, and communicating, about how to put the physical therapist mind into a piece of software, which turned out not to be so easy to do,” Jannenga says. But they did it, and in 2008, the couple launched WebPT to offer their software to other physical therapists. Just three years later, it is the leading web-based electronic medical record (EMR) system for physical therapy clinics, with 6,964 users in more than 1,500 clinics across the U.S. Superior customer service is an absolute core value. “Every member of the team understands that they would not be here

today without happy customers. Many similar EMR software companies charge their customers for training and support. WebPT offers lifetime support for free,” Jannenga says. That has led to a 99.1 percent customer retention rate. “Members can leave WebPT with a 30-day notice,” she explains. “Yet only 0.9 percent of them ever do. That’s a number we are extremely proud of.” When they started WebPT just three years ago, did Jannenga ever imagine that the company would grow like it has? “No, I didn’t. Some days I still have to pinch myself.” Name of business: WebPT Inc. Nature of business: Web-based electronic medical record (EMR) software for physical therapists Address: 605 E. Grant St., Ste. 200, Phoenix, Ariz., 85004 Web: www.webpt.com Founded: 2008 Number of employees: 38

WORTHY INSTITUTE, LLC

“I fell in love with the feeling that it gave me to work with young people who are disadvantaged, with seeing that I was changing people’s lives.” — Rasheda Worthy, CEO, Worthy Institute LLC, right, with Stan Worthy, program director

104 AB | November-December 2011

A decade after she decided she would become a social worker rather than the attorney she always thought she would be, Rasheda Worthy had a master’s degree, doctoral studies, and lots of work for public organizations and non-profits helping families under her belt. But not much money in the bank account. So she went to work as a program advisor for a large company, where she lasted about three months. One day, she called her husband, Stan, and said, “I work on my computer and I advise people over the phone about what money they should spend on what programs.” Used to working directly with the people her programs served, she disliked her corporate job. So Worthy decided she would start a business, doing everything she had been doing for more than a decade, but as a private company. Since its inception in 2005, the for-profit Worthy Institute has served 10,000 families. Ninety percent of

its services, including health education initiatives, teen education programs, life skills workshops, and two family resource centers in the Valley, are free. “A lot of people will say, ‘Why aren’t you a 501(c)(3) non-profit? The answer is that a 501(c)(3) has a lot of bureaucratic red tape,” she says. “One of the wonderful things about being for-profit is that if we have a family at one of our resource centers who has told us they have a certain need that’s not being met, we can make a change to the program right there. It doesn’t take us 6 months. Families need that immediate response.” Name of business: Worthy Institute, LLC Nature of business: Private community organization providing programs and services to families, organizations, and the community Address: 2942 N. 24th St., Phoenix, Ariz., 85016 Web: www.worthyinstitute.com Founded: 2006 Number of employees: 8

VALLEY FORWARD IMPROVING THE ENVIRONMENT AND LIVABILITY OF VALLEY COMMUNITIES

2011

ACTION CONsCIeNTIOUs

We believe trust and responsibility go hand in hand and we take seriously the trust that our clients place in us.

RESPONSIBLE

COMMUNITY

The decisions we make are guided by how it will benefit our clients, our communities and the environment.

RESPONSIBLE We view conscientious actions such as smart lending practices, encouraging employee volunteerism and growing our state’s economy as more than just sensible goals. They’re our responsibility.

TO LEARN MORE, VISIT: WWW.NBARIZONA.COM

WWW.NBARI ZONA.COM

MEMBER FDIC

VALLEY FORWARD

BRIDGING BUSINESS and ENVIRONMENT PLANNING IS CRUCIAL TO MAINTAIN HEALTHY PHYSICAL AND ECONOMIC CLIMATES

in solar and renewable energy technology; managing precious water resources; and protecting wilderness, parks, national monuments and other natural areas for Arizona’s tourism economy. For the past 42 years, Valley Forward has been the voice of balance between economic growth and environmental quality. We’ve now taken our mission statewide through Arizona Forward. Through this new initiative, we’re bringing together business, community and civic leaders from throughout Arizona to convene thoughtful public dialogue and advocacy on statewide sustainability issues. As Arizona approaches its centennial, our state is at a critical juncture related to its environment and quality of life. The livability and vitality of Arizona’s cities and towns will be impacted by upcoming pivotal decisions related to land use planning and open spaces; a balanced multi-modal transportation system; improving and maintaining healthy air quality; leadership

We hope you enjoy reading about some of the programs and people in Valley Forward and Arizona Forward. These environmental stewards are vested in our Valley and state. Their committed, nonpartisan public/private sector partnerships are working to help to create a healthier environment and more vibrant economy for Arizona. Diane Brossart President

AB | November-December 2011 107

VALLEY FORWARD

WIDE SPACES

ARIZONA FORWARD HOPES TO PUT BUSINESS, COMMUNITY AND CIVIC LEADERS ON SAME PAGE TO PRESERVE PARKS, OPEN LAND By Kasia Marciszewska

108 AB | November-December 2011

s one of the earliest pioneers of sustainability in the Valley, Valley Forward has had an Arizona presence for 42 years. The organization’s focus on land use and open space, air quality, water, energy and transportation has grown immensely since its inception. It is no surprise that this progressive group has once again embarked on the next sustainable step with the creation of Arizona Forward — a public interest coalition aimed at bringing together business, community and civic leaders to convene public dialogue and advocacy on sustainability in the state. “By promoting cooperative efforts between Arizona cities and towns, the state’s livability, sustainability and economic vitality will be enhanced for both current and future generations,” says Kurt Wadlington, employee-owner at Sundt Construction, Tucson Building Group Leader and Arizona Forward advisory board chair. Arizona Forward is initially expected to focus on the Sun Corridor, the region

“

As a community, we have to step forward collectively and make a strong case for the parks system and open space preservation.”

encompassing Tucson to Phoenix and beyond from Prescott to Flagstaff, hoping to encourage collaborative efforts between members and strike a balance between economic growth and environmental quality. “We believe there is a strong connection between the health of our environment and the health of our economy,” says Pat Graham, state director of the Nature Conservancy in Arizona. “Arizona Forward provides an opportunity for like-minded businesses and organizations from across the state to come together and come up with solutions.” First on the agenda for the coalition is spreading the message about the importance of parks and open spaces and their economic impact on the state. According to the Outdoor Industry Foundation, nearly 5.5 million Arizonans participate in outdoor recreation. This leads to approximately $350 million in annual state tax revenue and supports 82,000 jobs in Arizona. Arizona Forward leaders say the economic impact of

parks and open spaces is just one reason why the business community should take notice and take a stand. “One of the challenges today is the complexity of the problems we face,” Graham says. “It requires working together in new ways and with new partners to find solutions that improve the health of both the economy and our environment to maintain a good quality of life in Arizona.” A study compiled by WestGroup Research on behalf of Valley Forward found that 93 percent of Arizonans categorize parks and open space as “essential” to Arizona’s tourism industry. The study also found that 23 percent of Arizonans visit parks or recreation areas at least once a week. Just how much open space are we talking about? State and federal entities, along with Native American tribes in Arizona manage more than 70 million acres of land (excluding county and municipal parks). Not surprisingly, negative effects on our parks and open space have a big impact on the state’s bottom line. “Economic development and new

jobs rely on lifestyle considerations,” Wadlington says. “Parks, forests, refuges and other open spaces support the quality-of-life factors that can make a difference for communities seeking to attract employers and a strong workforce. Access to open space boosts property values and provides healthy outdoor recreational opportunities for residents and tourists alike. If we don’t prioritize our parks and open space, we will lose our most treasured resources.” Prioritizing these aspects has a major economic impact on Arizona. A 2009 National Parks Second Century Commission projected that every $1 in taxpayer money spent on national parks returned a $4 economic benefit through tourism and private sector spending. A June 2011 press release from the Department of the Interiors’ Economic Contributions Report further emphasized this information, with data showing that Arizona’s public lands supported 21,364 jobs and contributed nearly $2 billion to Arizona’s economy. AB | November-December 2011 109

T E A M W O R K Success depends on pulling together. At Sundt, our team goes the extra mile, working with you to make your project a success. We combine innovation with hands-on construction experience and management expertise to ensure a winning project every time.

Proud to be a Charter Member of Arizona Forward

2620 S. 55th St. Tempe, AZ 85282 (480) 293-3000 2015 West River Road, Ste 101 Tucson, Arizona 85704 (520) 750-4600 www.sundt.com

“

Arizona Forward provides an opportunity for likeminded businesses and organizations from across the state to come together and come up with solutions.”

Arizona Contractor License Nos.: ROC068012-A; ROC068013-B01

Building a Brighter Future for Arizona At APS, we want every generation to be able to enjoy the Arizona we all love today. That is why APS customer programs support sustainability while our community programs continue to support the hundreds of organizations like Valley Forward that are improving the environment, health, education, arts and economy of Arizona. Congratulations to the Environmental Excellence Award finalists and to Valley Forward for 42 years of successful environmental advocacy and three decades of recognizing outstanding projects that contribute to the region’s overall sustainability.

aps.com

110 AB | November-December 2011

It is figures like these that Arizona Forward hopes will get the public and policy makers involved with protecting parks and open spaces. State legislators must stop encroaching on the parks-system budget and instead focus on securing funding for their protection, Valley forward leaders say. “A depressed economy has impacted parks negatively at every jurisdictional level,” Wadlington says. He noted that an already-weakened parks system could be further depleted if lawmakers don’t get the message from their voters about protecting these open spaces. “As the economy recovers and state revenues return, legislators will be faced with many choices on how to best allocate these funds,” Wadlington says. w “As a community, we have to step forward collectively and make a strong case for the parks system and open space preservation.” Like the mission Valley Forward embarked on 42 years ago, Arizona Forward hopes to serve as the catalyst for change during these trying times. A diverse membership group with a common goal of environmental stewardship hopes to protect the state’s important parks and open spaces and other environmental issues facing Arizona. “Future Arizona vision: A place where people want to live and work, where growth occurs responsibly and does not diminish quality-of-life,” Wadlington says. “A place where business thrives, creating public revenue that can be reinvested in perpetuating sustainability of our state’s natural resources and quality-of-life amenities.”

WE GIVE YOU THE POWER OF THE SUN.

623.879.0010 www.harmonsolar.com 21410 N. 15th Lane, Suite 112 Phoenix, AZ 85027 ROC 134789 ROC 070948

BTWT ad 3.5x9.625_. 10/13/11 9:22 AM Page 1

IMUS IN THE MORNING

THE LAURA INGRAHAM SHOW THE EASIEST WAY FOR YOU AND FRIENDS TO PLAY GRAYHAWK

THE NEAL BOORTZ SHOW Mid-Mornings

THE LOU DOBBS SHOW

Purchase White Tee card before 12/1/11 and receive a complimentary 4-some* $359 for renewals / $379 for new buyers Purchase 12/1/11 – 12/31/11 / $379 Purchase after 12/31/11 / $495

OR IF YOU’RE REALLY SERIOUS,

ASK ABOUT BLACK TEE

THE STEVE

MALZBERG SHOW Mid-Days

THE LARS LARSON SHOW

To advertise, host a show, or for more information: Call (602)-277-1100 or goto the website: www.1100kfnx.com

112 AB | November-December 2011

for details call 480 502 1800 or visit GrayhawkGolf.com

A limited number of White Tee golf cards are for sale. White Tee cards are non-transferable and non-refundable. Grayhawk reserves the right to cancel the privileges of the card holder at any time. Applicable sales tax will be added to all fees quoted. 2012 White Tee benefits valid through Dec. 31, 2012. *Some restrictions apply.

INVESTING IN SUSTAINABLE ENERGY FOR A BRIGHTER TOMORROW. SRP is committed to helping manage our state’s natural resources. We’re expanding our existing programs and seeking new opportunities to ensure a clean environment, steady water supply, and renewable energy sources for future generations. One exciting new program is SRP Community Solar, which offers customers an easy and affordable way to adopt solar energy. Our goal is to meet 20% of our retail energy needs from sustainable sources by 2020. However, we can’t reach this goal alone. To learn how you can help, visit srpnet.com/environment.

VALLEY FORWARD

MAINTAINABLE SUSTAINABLE WITHOUT A COHESIVE PLAN, EXPERTS WORRY THAT THE ‘GREEN’ MOVEMENT COULD BECOME MUDDY By Kasia Marciszewska

he United States Environmental Protection Agency has a straightforward definition for sustainability. “Sustainability is based on a simple principle: Everything that we need for our survival and well-being depends, either directly or indirectly, on our natural environment. Sustainability creates and maintains the conditions under which humans and nature can exist in productive harmony, that permit fulfilling the social, economic and other requirements of present and future generations.” It is this simple principle that has resulted in sustainability making an increasing presence across the globe — and Arizona is no exception. There has been such push for green in Arizona that numerous groups, organizations and companies with a focus on sustainable energy and growing renewable energy resources have emerged in in the state. All this is great news. However, while many of these businesses and organizations share a passion, what they don’t share is a cohesive vision for how best to proceed forward. The piece of the puzzle that is missing

114 AB | November-December 2011

begs the question: how do we get all the players on the same page to create the best plan for sustainable energy in Arizona? “I suppose if we looked at any area — like the automobile industry — that are now considered very mature industries, they’ve gone through the same kind of thing where there is a plethora of different ways to pursue the business,” says Craig Robb, managing director of Zion Energy Link, a new branch of Zions Bancorporation dedicated to funding renewable energy projects. And just like any burgeoning industry, sustainability in Arizona has achieved incredible growth over the last several years. The Grand Canyon State is home to the first sustainability school of its kind, Arizona State University’s School of Sustainability. The school offers a wide-ranging program focused on various aspects of sustainability, including its economic, environmental, and social challenges. It has also put Arizona on the map in the eyes of the global green industry. In addition, many sustainabilityfocused companies have chosen to make Arizona their home, including China-based Suntech Power

Holdings and Rioglass Solar. This was no doubt helped by the passing of Senate Bill 1403, the Renewable Energy Tax Incentive Program that was signed into law in 2009. Incentives for this program include a refundable tax credit and a property tax reduction. “Arizona is making great progress,” says Barbara Lockwood, director of energy innovation for APS. “We have some very aggressive goals and we’ve seen a tremendous amount of success to date.” But yet, this success hasn’t translated to a strategic and unified vision between all the entities rooting for this industry to succeed. The verdict is in. “Yes, there are definitely differing opinions and largely those differences are simply a matter of perspective,” Lockwood says. “Everyone agrees that growth in sustainable energy is good for Arizona. The key issues are how to achieve that growth in a responsible, sustainable fashion.” There are many ideas as to what direction the industry should take and the key to executing them will be ongoing communication and cooperation. “The fortunate thing is I’m really seeing a very assertive effort by some

â&#x20AC;&#x153;

Everyone agrees that growth in sustainable energy is good for Arizona. The key issues are how to achieve that growth in a responsible, sustainable fashion.â&#x20AC;?

Photo courtesy of Solon AB | November-December 2011 115

48TH ANNUAL

The Most Trusted Economic Forecasting Event in the Valley WEDNESDAY DECEMBER 7, 2011

PHOENIX CONVENTION CENTER West Ballroom 2nd Street & Monroe Street Phoenix, Arizona

11:15 a.m. – 1:30 p.m.

wpcarey.asu.edu/efl (480) 965–3531 Presented by:

DEPARTMENT OF ECONOMICS

116 AB | November-December 2011

great business leaders to try to … create a consistency to those programs and concepts and look at where (everyone can fit),” Robb says. “They all can work together… It’s going to take work and there is a lot people that have a keen focus on taking care of Arizona and dealing with a well-designed, sustainable program for the state,” he adds. One way to create consistency is to continue growth. Companies that already have a well-known presence in the state are doing their part to keep the green momentum going. First Solar, a global leader in the manufacture of thin film photovoltaic modules chose to base their efforts in a community committed to sustainability, says Steve Krum, director of internal communications at First Solar. “Our new manufacturing facility in Mesa brings it all home for us,” Krum says. “It shows how the work we do can directly contribute to the local economy. And we receive the benefit of a talented workforce and a community that understands and values the contribution industry has to sustainability efforts.” Local businesses across the board have also started to implement a variety of sustainability agendas. From the smaller but equally important aspects of sustainability such as recycling programs and green practices to larger facets such as solar installation and wind energy — sustainability isn’t going anywhere. “There is huge opportunity for all forms of alternative energy to contribute to the grid. Solar, wind, hydro, geo-thermal … all of these make a real difference,” Krum says. For those involved in the sustainability industry the answer seems to be pretty simple. “The forum created and nurtured by Valley Forward — and now Arizona Forward — is crucial to ongoing dialogue between all stakeholders aspiring to shape sustainable development. Understanding of each other’s visions, goals and objectives will allow each of us to better define and clarify our individual contributions,” Krum says.

leading the

evolution. join the future.

Since 2007, SOLON corporation has been a leading provider of utility-scale and large commercial photovoltaic systems for the North American market. Based in Arizona, SOLON is revolutionizing the solar industry with innovative solar solutions and a guarantee of unrivaled quality and reliability.

www.solon.com

AB | November-December 2011 117

VALLEY FORWARD

ENVIROMENTAL

IMPACT

TO HELP ‘GREEN’ MOVEMENT GROW, ARIZONA WILL FACE MANY LEGAL ISSUES By Kasia Marciszewska

hough Arizona may be working to reach a higher standard of sustainability, a myriad of environmental legal issues will be seen as these changes are implemented. Arizona Business Magazine spoke with the state’s top law firms and industry experts to find out the most important environmental legal issues the state can expect to face in the next decade. PARTICULATE MATTER-10 Attorney Megan Lennox of Bryan Cave LLP says, “The single biggest environmental legal issue Arizona will be facing for the foreseeable future is the regulation, implementation and enforcement of regulations concerning Particulate Matter-10, also referred to as PM-10, which is essentially “dust.”’ According to an Aug. 25, 2011, press release by the Arizona Department of Environmental Quality stressing a high pollution advisory: “State and county agencies measure PM-10 and PM-2.5 which are extremely small solid particles and liquid droplets found circulating in the air. PM, or particulate matter, comes from either combustion (cars, industry, woodburning) or dust stirred up into the air. High levels of PM are typically created when the air is especially stagnant or especially windy. PM-10 stands for particulate matter measuring 10 microns or less. PM-2.5 stands for particulate matter measuring 2.5 microns or less. To put this in perspective, one strand of human hair is 70-100 microns in size.” “Over the summer, we saw a number of High Pollution Advisory (HPA) warnings issued by the Arizona Department of Environmental Quality (ADEQ) relating to PM-10, particularly in connection with the haboobs (dust storms) we’ve been having in the Valley this summer,” Lennox says. “But what is not as commonly known is that, even without a haboob, Arizonans face real health threats caused by common everyday dust generating activities.

118 AB | November-December 2011

“Indeed, the EPA has not been satisfied with what the Arizona has done in the way of dust control thus far, and because Arizona continues to exceed federal air quality standards for PM-10, we are now facing a very real possibility that the EPA will push the Arizona regulators aside and step in with their own plan to reduce PM-10. “The real issue of concern is that, if the EPA is required to step in, Arizona will stand to lose over a billion dollars in federal highway funds,” Lennox says. “This translates to further loss of jobs, no new transportation projects, and likely intense regulation and economic impact to the construction industry — all of which will be decidedly detrimental to Arizona’s economy overall.” Lennox says Arizonans must prevent this from happening by doing their part, which includes refraining from leaf blowers, no fires in the fireplace, avoiding dusty roads and joining forces with regulators “toward the common goal of reduction of PM-10 and maintenance of federal funding – both of which ... are critical for the long-term health and prosperity of the Valley.” UTILITY DEREGULATION As the state continues to develop renewable energy, several legal issues can arise. Court Rich, an attorney at Rose Law Group states that: “As renewable energy prices come down its implementation will grow quicker. At some point the technology involved in distributed roof top solar energy is going to allow people not only to produce energy during the day but to store energy for power at night.” If people are able to produce the energy they need, should they pay a utility company for its electricity service? These are the types of questions Arizona may face as renewable energy production grows. “The State has previously looked into forms of utility deregulation...(and) could review forms of deregulation that may set up a better environment for future competition

among energy providers ultimately providing lower cost electricity to all Arizonans and providing greater choices to the consumer,” Rich adds. BALANCING ENVIRONMENTAL PROTECTIONS WITH ECONOMIC IMPACTS “Implementing more protective environmental regulations must be balanced with their economic impacts,” says Matt Bingham, attorney at Lewis and Roca. Sometimes, small improvements that can be made come at a significant cost and may not be worthwhile for the state to pursue. “(Government) agencies have accomplished A LOT since environmental laws were first enacted,” says Bingham, “but at some point, the costs of making further improvement are going to outweigh the benefits. Agencies need to adequately consider industry’s concerns when developing stricter environmental standards to ensure that the benefits outweigh the costs. Failing to do so will prolong Arizona’s economic recovery.” GROWTH OF RENEWABLE ENERGY “In Arizona, regulated utilities are expected to get 15 percent of their electricity from renewable sources by 2025 (in 2011, the goal is 3 percent),” says Bingham, attorney at Lewis and Roca. “This will require a massive expansion of our renewable energy capabilities over the next 10-15 years.” As Arizona tries to catch up on renewable energy growth compared with some of its sustainability-driven neighboring states, many environmental impacts will need to be addressed. These include land use, water use, and effects on wildlife, endangered species and several others. “The growth of renewable energy in the state also involves policy choices by the legislature and the Arizona Corporation Commission,” says Bingham. Some examples: » Requiring utilities to procure renewable energy. » Increasing demand for solar by providing incentives. » Providing tax incentives for companies who locate manufacturing and other facilities in the state. “Arizona has decided that it wants to be a hub of the solar industry and has made some good moves in that direction, but it needs to continue pursuing an effective, comprehensively designed strategy while assuring companies that this support will not fade,” Bingham adds. ENFORCEMENT OF REGULATORY POLICIES: Since 61 percent of land in Arizona is either managed or controlled by federal agencies, many policies involving land use have a disproportionate impact upon our state, says Jeff Littell, principal geologist at Brown & Caldwell. “The greatest environmental issues ... will arise from federal agencies and their imbalanced enforcement of existing regulatory policies or the increased promulgation of new rules and regulations,” Littell says. The state should apply balanced and measured responses to difficult environmental issues while empowering state agencies and the Legislature to defend Arizona against misapplied federal actions, Littell adds. “The results of their interaction with county and state agencies will have a profound impact on the long term success of Arizona, the diversity of our economy, and our ability to emerge from the current economic situation.” AB | November-December 2011 119

STAY CONNECTED Arizona始s Morning News Weekdays 5 - 9 a.m.