In Business Magazine- 1112 by Richard McCartney

NOV. 2012

Is Your Crisis Plan In Place to Save Your Brand?

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How Education & Innovation Will Save Our Economy

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

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Associate Partners Ahwatukee Foothills Chamber of Commerce www. ahwatukeechamber.com Arizona Chamber of Commerce & Industry www.azchamber.com Arizona Hispanic Chamber of Commerce www.azhcc.com Chandler Chamber of Commerce www.chandlerchamber.com Economic Club of Phoenix www.econclubphx.org Glendale Chamber of Commerce www.glendaleazchamber.org Greater Phoenix Black Chamber of Commerce www.phoenixblackchamber.com Greater Phoenix Gay & Lesbian Chamber of Commerce www.gpglcc.org Mesa Chamber of Commerce www.mesachamber.org North Phoenix Chamber of Commerce www.northphoenixchamber.com North Scottsdale Chamber of Commerce www.northscottsdalechamber.org Peoria Chamber of Commerce www.peoriachamber.com Westmarc www.westmarc.org

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NOV. 2012

Is Your Crisis Plan In Place to Save Your Brand? IN BuSINESS MAGAZINE

Contents

We Really Want to Grow Your Business!

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NOVEMBER 2012 • inbusinessmag.com

Educating Our Work Force: How knowledge will build business in Arizona

Power Lunch By the Numbers Business Calendar

Sales Strategy to Close the Deal Restaurants –

Striving and Thriving $4.95 INBUSINESSMAG.COM

This Issue National Association of Women Business Owners

It seems to be taking forever for Arizona’s unemployment rate to drop to levels seen before the Great Recession. Much of the reason is a lack of enough qualified Arizonans to do the jobs that require more than on-the-job training. Don Rodriguez looks at some of the programs aimed at filling that structural unemployment. Departments Features

Team Prepared for a Crisis?

With long-term consequences for your brand at stake, Denise Resnik discusses what’s needed to put a response plan in place.

Business

“e-Marketing Can Be Rewarding,” “Be Prepared: Business Insurance,” “Legislative Savvy,” “Sustainability Profits in Money and Morale,” “’Horizon’ Friend of Business,” “Services Is Growth Focus of Business,” “Construction Supply Company in Expansion Mode “ and “New Golf Enterprise Focuses on Business Women”

34 Mediation: Conflict Results that Move

Business Forward

36 Ask Straight Up — and Close the Deal In sales, the direct approach gets the job done, explains John Baker.

41 National Association of Women Business Owners

of servi

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women

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Study shows Arizona tops other states in increase for pay in many key sectors.

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NAWB

View from the top looks at how Doug Fulton’s “try most anything once” attitude translates to marketing advantage.

27 Books

Celebrati

Special Sections

16 By the Numbers 18 Trickle Up

Amy Lieberman, Esq., offers insights on this process that avoids litigation and works toward a solution to satisfy all parties.

years

2013 Viper SRT Plus: Gift-giving ideas for client appreciation

12 Briefs

The industry is strong but, as local restaurateurs share with Gremlyn Bradley-Waddell, individual survival means being ready to do it all.

than 25

10 Feedback

Noted business and community leaders John Huppenthal, Andrew Morrill and Teri Radosevich respond to IBM’s burning business question of the month.

28 Restaurants: Setting the Table for

ng more

39 Assets

Donald Budinger, chairman of Rodel Foundations and of Science Foundation Arizona, introduces the “Education” issue.

26 Are You and Your Communications

9 Guest Editor

New releases offer views on the changing ways of doing business.

30 Nonprofit

Arizona Burn Foundation Ryan House

40 Power Lunch

Nobuo at Teeter House gives a taste of the chef-owner’s Japanese heritage. Plus: Where to enjoy gourmet soups

50 Roundtable

Is it Time to Change Standards for Banking’s Assessment of Risk? Business Education

38 Best Practices for

Accounts Receivable Collection Dennis Niven discusses how personal relationships can be an asset in collections in this second of a three-part “Finance” education series. On The Agenda

31 Spotlight

Understanding the Arizona Legislative Process SRP’s Twitter for Business 101

32 Calendar

Business events throughout the Valley

O NEWS

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November 2012 • Vol. 3, No. 11

Publisher Rick McCartney Editor RaeAnne Marsh

Art Director Benjamin Little

Contributing Writers John M. Baker Gremlyn Bradley-Waddell Mike Hunter Amy Lieberman, Esq. Dennis Niven Denise D. Resnik Don Rodriguez Glenn Swain

Photographer-at-large Dan Vermillion Advertising

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More: Visit your one-stop resource for everything business at www.inbusinessmag.com. For a full monthly calendar of business-related events, please visit our website. Inform Us: Send press releases and your editorial ideas to editor@inbusinessmag.com.

President & CEO Rick McCartney Editorial Director RaeAnne Marsh Senior Art Director Benjamin Little

Corporate Offices 6360 E. Thomas Road, Suite 210 Scottsdale, AZ 85251 T: (480) 588-9505 F: (480) 584-3751 info@inmediacompany.com www.inmediacompany.com

Vol. 3, No. 11. In Business Magazine is published 12 times per year by InMedia Company. POSTMASTER: Send address changes to InMedia Company, 6360 E. Thomas Road, Suite 210, Scottsdale, AZ 85251. To subscribe to In Business Magazine, please send check or money order for one-year subscription of $24.95 to InMedia Company, 6360 E. Thomas Road, Suite 210, Scottsdale, AZ 85251 or visit inbusinessmag.com. We appreciate your editorial submissions, news and photos for review by our editorial staff. You may send to editor@inbusinessmag.com or mail to the address above. All letters sent to In Business Magazine will be treated as unconditionally assigned for publication, copyright purposes and use in any publication, website or brochure. InMedia accepts no responsibility for unsolicited manuscripts, photographs or other artwork. Submissions will not be returned unless accompanied by a self-addressed, stamped envelope. InMedia Company, LLC reserves the right to refuse certain advertising and is not liable for advertisers’ claims and/or errors. The opinions expressed herein are exclusively those of the writers and do not necessarily reflect the position of InMedia. InMedia Company considers its sources reliable and verifies as much data as possible, although reporting inaccuracies can occur; consequently, readers using this information do so at their own risk. Each business opportunity and/or investment inherently contains certain risks, and it is suggested that the prospective investors consult their attorney and/or financial professional. © 2012 InMedia Company, LLC. All rights reserved. No part of this magazine may be reproduced or transmitted in any form or by any means without written permission by the publisher.

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Donald V. Budinger, Chairman, Rodel Foundations

Guest Editor

Filling the Skills Gap

Don Budinger is one of the founders and the former president of Rodel, Inc., a leading manufacturer worldwide in the electronics industry, and is currently chairman and founding director of the Rodel Foundations, whose mission is to help schools (pre-K through 12th grade) in Arizona and Delaware become national leaders. The University of Arizona graduate is also chairman and founding director of Science Foundation Arizona and a board member of several Arizona educational and economic development organizations. Budinger’s numerous honors include being named one of the Morrison Institute for Public Policy’s Distinguished Associates and receiving the “Science of Early Learning Award” from New Directions Institute.

Not only has the economy changed due to the deep recession, it is increasingly apparent that the economy is also changing because of advances in technology; therefore, business is demanding new skill sets among the work force in areas of science, technology, engineering and mathematics, in particular. These skills are in demand and beginning to shape the economy in ways that demonstrate a need to heighten the basics among students. Arizona has responded to this challenge by adopting new academic standards, Arizona’s Common Core Standards, which are designed to ensure today’s students have the knowledge and skills they need to be successful in the future. In addition to academic knowledge, the standards focus on teaching critical thinking, problem solving and effective communication skills. While we may not be able to predict the jobs of the future, we are confident that these skills will better prepare our students for college, career and life. As a business owner and one of the founders of a garage start-up that grew to become the world’s largest manufacturer of the surface finishing chemicals used to make computer chips, rigid memory disks and specialty optics, I found our need for well-educated and highly skilled employees was worldwide. In the 1990s, we started noticing a change in available candidates when hiring people for our U.S. facilities. More and more we were interviewing and hiring people who had been educated in other countries because their skill sets matched our needs better than those educated in the U.S. It is for this reason that we invested the majority of the proceeds we received upon the sale of our business into starting the Rodel Foundations, whose mission is to improve Arizona’s K-12 public education system so that it is widely recognized as one of the best in the nation by the year 2020. Science Foundation Arizona is also investing public/private dollars into a more robust science, technology, engineering and math (STEM) curriculum in our state. This growing recognition of the need for technologically adept workers to fill an increasing demand by business and carry the economy into a successful future is the focus of this issue’s cover story, “Educating Our Work Force: How knowledge will build business in Arizona.” Don Rodriguez explores programs and organizations dedicated to promoting the strong educational foundation that will produce this work force in Arizona. In the super-connected world that current technology has enabled, a single event or opinion can reach a large population in very little time. Addressing the possibility that your company may be the target of virulent ill will or bad press, Denise Resnik shares her expertise in public relations to help you formulate a crisis communication plan that will enable you to respond quickly and positively. Dennis Niven shares his expertise in financial operations for the second of a three-part “Business Education” series, “Best Practices for Accounts Receivable Collection.” Elsewhere in this issue, Gremlyn Bradley-Waddell digs into the business side of the restaurant industry for the “Focus” feature and In Business Magazine editor RaeAnne Marsh offers food for thought in a “Roundtable” article on the controversial subject of the way banks assess risk in their standards of doing business. As In Business Magazine is dedicated to helping to build business, I encourage you to read through this November issue focused on education and filling the skills gap in Arizona. Sincerely,

Donald V. Budinger Chairman, Rodel Foundations Chairman, Science Foundation Arizona

Employees for the Future It is increasingly clear that Arizona is on the rise and that many local organizations and individuals are on the right track to getting to economic success. However, politicians, business leaders and work force experts agree the skills gap will kill our chances of becoming a hub for economic development (or what many are now calling economic opportunity). Education Means Business is the subject of our Jan. 18, 2013, event. We urge

inbusine ssmag.com

business leaders, business owners, managers and educators to be a part of this important symposium on filling the skills gap. We thank Don Budinger for leading this issue of In Business Magazine and for leading the charge to bettering education in Arizona and building awareness of the importance of this topic on creating economic opportunity. —Rick McCartney, Publisher

Connect with us: Story Ideas/PR: editorial@inbusinessmag.com Business Events/Connections: businessevents@inbusinessmag.com Marketing/Exposure: advertise@inbusinessmag.com Or visit us online at www.inbusinessmag.com

N o v e m b e r 2012

Feedback

Valley Leaders Sound Off

Executives Answer What are the most important subjects or skills you feel our educational system and institutions should be concentrating on to prepare a work force that will sustain our economy?

Andrew F. Morrill

John Huppenthal

President Arizona Education Association Sector: Education We hear a lot about the importance of STEM academic areas (science, technology, engineering and math) as drivers of an education that will prepare students for the work force. But students need a variety of academic challenges to develop critical thinking skills that will serve them in whatever pursuit they follow. Research confirms that the skills required for success in college align closely with those necessary for success in the working world. Mathematics and analytical skills are mandatory for success after school. But I taught critical thinking and reasoning as part of every English lesson. I taught students to regard evidence in drawing any conclusion. What about teaching accuracy, brevity and clarity in all forms of writing? Certainly these traits are welcome in the working world. The role of our schools is not solely to prepare students for work but to prepare students to be their best: to think critically, reason with discipline and study, commit to tasks, live within an ethical framework, and feel passion for excellence. I think employers value these attributes universally.

Superintendent of Public Instruction State of Arizona Sector: Government As Superintendent of Public Instruction, my commitment to Arizona’s students is to actively prepare them to be college- and career-ready and globally competitive. I am equally committed to creating an expansive school choice environment. At the Department of Education, we have a number of innovative initiatives underway. We are increasing academic expectations through the roll-out of Arizona’s new Common Core standards, as well as developing a more rigorous assessment instrument tied to these higher standards, through the PARCC consortium of 23 states. We are also increasing accountability with Arizona’s new A-F Letter Grade System, which holds our school districts and schools responsible for the academic growth of every student. Through our blended learning initiatives, we are working with schools to introduce technology into classrooms that will enable the tailoring of education to the specific needs of every student. Our commitment to career and technical education is critical, as we recognize this essential component to creating student engagement and relevance to the needs of Arizona’s work force.

Arizona Education Association arizonaea.org

Andrew F. Morrill is president of the Arizona Education Association, the largest professional association in Arizona, which is committed to “keeping the promise of quality public education” for every Arizona student. The UA graduate (bachelor’s degree in English Literature and master’s degree in Educational Psychology) was nine times named a Marana Unified School District Top 10 Inspirational Teacher, among other professional accolades.

Arizona Department of Education azed.gov

Teri Radosevich

For the past eight years, Avnet has hosted the Avnet Tech Games, a collaborative effort by Arizona educators and technology companies, to help the state’s two- and four-year college students acquire valuable technical and communications skills to further develop their STEM education. This partnership is truly a win-win-win where students test classroom knowledge in real-world situations, schools can better align academic curricula with business realities and the technology industry benefits because graduates are better prepared for the workplace. With more collaboration between public and private institutions, I certainly believe we will have a work force that will not only sustain our economy but grow it.

Vice President, Community Relations and Public Affairs Avnet Sector: Technology The ever-changing technology industry helps improve business productivity, enhances people’s lives around the world and is one that leads our global economy. Because of this, it is vital that our educational system and institutions place more emphasis on STEM (science, technology, engineering and mathematics) education. Equally important, the private sector has a responsibility to work with educators in shaping curriculum to ensure students receive the skills and knowledge required to be successful upon graduation.

N o v e m b e r 2012

Superintendent of Public Instruction John Huppenthal’s 27 years in public service includes 18 in the state legislature. Either serving on or chairing education committees, he successfully authored and passed more than 200 bills, more than any other legislator in state history. A substantial number of those bills focused on improving education.

Avnet, Inc. avnet.com

Teri Radosevich is vice president of community relations and public affairs for Avnet, Inc., a global technology distributor. She is responsible for the company’s community outreach, government affairs and local community branding. For the Avnet Tech Games, Radosevich works closely with business leaders and educators to determine how to tailor the competition so students can enhance real-world skills in demand by employers.

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ENDLESS BUSINESS SOLUTIONS. ONE LOCATION. At SRP we know that your success is our success. That’s why we are proud to announce the SRP Business Resource Center. We’ve partnered with trusted local sources to put relevant business information at your fingertips to help your business grow and succeed. You’ll find critical insights from many experts, including the Arizona Small Business Association. We trust these sources and are confident they can help you with everything from growing your business to accessing monthly overviews of the local economy. To put this free resource to work for you, visit srpbizresource.com.

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e-Marketing Can Be Rewarding PinningRewards, a grass-roots marketing

and product distribution system, has helped Wizard Industries and a fast-growing number of other brand owners get their products into new retail markets. As the system has proven increasingly successful for its founding company, PinningRewards provides an array of functionality for varied types of manufacturers to sell and promote new products to retailers while providing pinning consumers free products. pinningrewards.com

Be Prepared: Business Insurance With so many changes to insurance law and compliance regulations over the past year, many business owners are looking for expertise to satisfy their needs when it comes to insurance for employees, company insurance and more. Visit the Arizona Department of Insurance website to get the details. azinsurance.gov/consumerbusiness.html

Legislative Savvy Business owners are among the largest demographic affected by local legislation, regulation and the impact of local governments. Here are three of the best resources to keep up, stay informed and

Sustainability Profits in Money and Morale

Mesa-based Crescent Crown Distributing, one of the nation’s largest distributors of alcoholic beverages, is reaping profits in morale as well as bottom line benefits due to the sustainability features it incorporated into its new 335,000-square-foot facility. James Moffett, president of Crescent Crown, says the company had been working toward the goal of being more energy efficient and environmentally friendly since acquiring the business in 2004, and he credits the 600 employees for buying into the company culture. “People take ownership [in the sustainability efforts],” he says, explaining employees at all levels and positions take pride in the facility and the company success that enabled the resources to build it. Now, he says, the employees “feel like they work in a better environment” and often brag about the new warehouse’s solar panels and energy efficiency. Projected to save the business more than $150,000 a year in utility costs, the company’s new building includes 230,000 square feet of controlled-temperature warehouse and 40,000 square feet of refrigerated space — with a specialized energy design to optimally protect the libations — and 63,000 square feet of office space. Crescent Crown participated in both Salt River Project’s Standard Business Solutions and Custom Business Solutions programs, netting $138,855 in rebates, and will see a return on investment in two-and-a-half years. —RaeAnne Marsh

get involved in business for Arizona.

Crescent Crown Distributing crescentcrown.com

Arizona State Legislature:

Salt River Project srpnet.com

azleg.gov Arizona Ombudsman: azleg.gov/ombudsman City Governments: statelocalgov.net/state-az.cfm

Visualize This

Seeing is Believing ‘Horizon’ Friend of Business The long-running Channel 8 KAET show

airs twice nightly (5:30p and 10:00p, Monday through Friday) and focuses on the news of the day. From candidate debates to in-depth interviews on the day’s newsmakers, Ted ability to get the “players” to sit at his table and talk makes “Arizona Horizon” a must for those vested in business here. azpbs.org/arizonahorizon

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Photo courtesy of SRP (top)

Simons’ delivery, coverage of the topics and

Briefs

Quick and to the Point

New Golf Enterprise Focuses on Business Women

Services Is Growth Focus of Business

Many companies look at services as a strategy for growth and profitability — even companies whose business is built around a product. The Center for Services Leadership, established in 1985 at ASU’s W. P. Carey School of Business, has involved many of Arizona’s biggest companies to study this growing trend. The Center’s recent creation of an executive committee of the board is a mark of its own growth and evidence of the continuing importance businesses ascribe to its research. The inaugural committee is comprised of Bob Zollars of Vocera, Mark Wheeler of Abbott Diagnostics, Adrian Paull of Honeywell, Lee Scanzano of Cox Communications, Steve Church of Avnet and Parsu Parasuraman from the University of Miami — whom Mary Jo Bitner, professor and PetSmart Chair, executive director of the Center, describes as “people who’ve had a commitment beyond our center,” including hiring students from the school. At 60 companies and growing, the board’s size hampers in-depth discussion at full-board meetings; an executive committee is needed to help with key decisions between board meetings, says Dr. Bitner. Membership will be

limited to the chair, vice chair, faculty and three other local companies “who know us well.” The board’s diverse membership represent different industries — the idea being that, all focused on the value of services to their own company’s success, they can learn from the experience of companies in other industries. Dr. Bitner notes these companies are not direct competitors with each other but compete for customers in different sectors. Pet retailer PetSmart and electronics distributor Avnet, for instance, discovered a singular similarity in their strategic direction and began meeting with each other to discuss challenges and choices, Dr. Bitner shares. The trend of companies placing an emphasis on services — even companies in non-traditional services businesses — has been growing for at least a decade and is accelerating. Says Dr. Bitner, “Customers demand more than the product; they want solutions. It’s almost into consulting and asset management.” —RaeAnne Marsh

Women represent a huge new potential market for the golf industry, and the PGA’s Connecting with Her initiative for the industry-wide Golf 2.0 growth strategy attests to that organization’s interest in tapping into it. Entrepreneur Shawn Jardine recognized the void out of personal experience; recently launched Diva Golf in Colorado Springs, Colo.; and has chosen Phoenix as the first city for the company’s planned expansion into 20 markets. “It’s a natural choice for expansion,” she says. “You can play year ’round, it’s a large market [due to its] large population, and there are a lot of courses.” Women taking up a sport traditionally dominated by men gain access into an aspect of doing business, Jardine observes, noting that, in the corporate setting of playing golf with a client, just knowing golf etiquette is very important. She developed Diva Golf to “give people confidence.” The membership organization combines sport and networking, offering weekly golf events that start with a short lesson from a golf pro (“Enough to help with one thing at a time, such as putting”), followed by 9 holes of golf and ending with a glass of wine. Additional networking and social events will round out the schedule for the year. —RaeAnne Marsh Diva Golf divagolf.net

The Center for Services Leadership wpcarey.asu.edu/csl

Construction Supply Company in Expansion Mode

Flooring retailer Lumber Liquidators, which opened a 6,239-square-foot store in Scottsdale this fall, finds the Metro Phoenix market is “one of the shining stars in performance” in its operations, according to Jim Davis, vice president of sales. The company has 280 stores, with locations in almost every state nationwide. Since opening its first store in Phoenix — its 19th company-wide — ten years ago, Lumber

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Liquidators has expanded to five locations in Arizona, four of them in Metro Phoenix. Davis says the company is now seeing a lot of activity in the housing market, but also attributes the company’s market performance to its success in taking market share from big box and other flooring companies. Lumber Liquidators’ growth plan allowed for five to seven years to ramp up customer awareness, says Davis. The company’s business model is a no-frills

operation, with no middleman and with a sales staff who are not on commission but are focused on educating the customer. It began in 1993 when founder Tom Sullivan saw an opportunity to help other contractors liquidate excess wood they had purchased (hence the name), but Sullivan realized a niche in flooring and opened his first store in 1996. —RaeAnne Marsh Lumber Liquidators lumberliquidators.com

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N o v e m b e r 2012

By the numbers

Metrics & Measurements

Arizona Employers Anticipate Employee Pay Increase

Key Indicators

Study shows Arizona tops others in increase for pay in many key sectors Employers in Arizona reported they anticipate pay increases in 2013, says a study completed by Mountain States Employers Council released in early October. Arizona employers project the highest increase of the three states surveyed, with an anticipated 2.8 percent pay increase in 2013. Survey findings were collected from 580 organizations in Arizona, Colorado and Wyoming and represent a cross-section of industries, including government, manufacturing, natural resources, nonprofits, technology, financial, real estate, insurance, healthcare, retail and wholesale, service, construction and utilities. “Our survey data indicates that employers in Arizona are looking more positively at economic conditions in 2013 and projecting continued improvements in employee pay,” says Patty Goodwin, director of surveys for Mountain States Employers Council. Some key industries reporting higher than the state average increase include nonprofit employers who are forecasting raises of 3.4

percent in 2013. Government employers (not including utilities) are projecting a 3.1 percent increase. Tucson employers surveyed predicted an overall 2.6 percent increase, while Metro Phoenix employers projected a 2.9 percent pay increase. On the other hand, the Arizona manufacturing industry reports the lowest projected increase at 1.9 percent. Arizona’s survey results also show a higher projected increase over last year, which was 2.4 percent from 2011 to 2012. “Mountain States Employers Council watches a number of economic and compensation indicators to assist Arizona decision-makers in planning future salary adjustments, and the surveys help provide a complete look at the local market,” says William L. Smith Jr., vice president, about MSEC services and the importance of these surveys for business owners and industry leaders. —Mike Hunter

Key indicators for our state economy are provided in each issue to identify those key numbers that give readers a sense of the health of our local economy. Economic Indicators (Arizona)

Number

Unemployment (Sept. 2012)

YOY % Change

8.2

-0.46

2,474.6

0.02

No. of Housing Permits (Sept. 2012)

1,626

35.61

Consumer Confidence (Q2 2012) (Arizona)

68.6

32.18

Average Hourly Earnings (Sept. 2012)

$22.70

n/a

Job Growth (in thousands) (Sept. 2012)

Eller Business Research

Retail Sales (Arizona) Retail Sales (in thousands)

June 2012

July 2012

Total Sales

$6,713,523

$6,208,113

6.16%

4.06%

Retail

$4,104,913

$3,760,612

Food

$1,023,603

$976,986

Restaurants & Bars

$839,924

$767,659

Gasoline

$745,083

$702,856

Contracting

$876,989

$843,550

Change Y0Y

Mountain States Employers Council msec.org

2013 Average Employee Salary Projections in Arizona

Eller Business Research

Real Estate Average Projected Increase by Industry

Average Projected Increase by Position

Industry

2013

2012

Position

2013

2012

Government

3.1%

2.5%

Hourly Production/ Maintenance

2.7%

2.2%

Manufacturing

1.9%

1.4%

Clinical/Technical Non-Exempt

2.9%

2.4%

Nonprofit

3.4%

2.9%

Salaried Exempt

3.1%

2.6%

Healthcare

2.9%

2.2%

Executive/Officer

2.6%

2.4%

Retail/Wholesaler

2.4%

1.5%

All Positions

2.8%

2.4%

Service

2.8%

2.4%

All Organizations

2.8%

2.4%

Average Projected Increase by Location

Commercial: Office*

Q3 2011

Vacancy Rate

27.5%

Net Absorption (in SF)

374,230

256,622

Rental Rates (Class A)

$24.04

$23.28

Commercial: Indust.*

Q3 2011

Vacancy Rate Net Absorption (in SF)

Average Projected Increase by Employment Size Employment Size

2013

2012

Less then 50 Employees

2.8%

2.7%

Q3 2012

28.1%

Rental Rates (General Industrial)

Residential:

Location

2013

2012

50-99 Employees

3.7%

2.8%

Total Sales Volume

Metro Phoenix

2.9%

2.6%

100-249 Employees

2.8%

2.4%

Total Median Sale Price

Q3 2012

13.1%

11.3%

1,166,100

1,487,763

$0.50†

$0.40†

Sept. 2011

Sept. 2012

7,659

7,030

$125,000

$156,898

Tucson

2.6%

2.0%

250-499 Employees

2.4%

0.9%

New Build Sales Volume

642

768

Other Arizona

2.9%

1.1%

500-999 Employees

2.5%

2.4%

New Median Sale Price

$236,342

$232,032

1,000 or more Employees

2.8%

3.3%

Resale Sales Volume Resale Median Sale Price

2013 Salary/Wage Budget 58% of organizations surveyed indicated the 2013 budget will be about the same as the 2012 budget

* Cassidy Turley Arizona

6% of organizations surveyed indicated the 2013 budget will be lower than the 2012 budget

†

7,017

6,262

$116,100

$146,000

Industrial rents are expressed as triple net.

36% of organizations surveyed indicated the 2013 budget will be higher than the 2012 budget Source: Mountain States Employers Council

N o v e m b e r 2012

Latest data at time of press

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Trickle Up

A View from the Top

Doug Fulton: Family Values and the Importance of Marketing

Creative leadership is second-generation CEO’s strategy against housing industry challenges Sitting in a comfortable leather chair by the baggage claim area inside the terminal at Phoenix-Mesa Gateway Airport, in the lounge that recreates one of his company’s designs, homebuilder Doug Fulton is talking to a Canadian couple who has just arrived from Toronto. The CEO of Tempe-based Fulton Homes informs the couple the life-sized living room they are lounging in is part of his marketing blueprint to encourage Canadians to buy homes in the Phoenix area. The unique L-shaped living room, unveiled in October, measures 40 feet long and eight feet wide, features several soft leather chairs and love seats made by Creative Leather in Chandler, along with tables and carpeting with the Fulton Homes logo. Photos offer faux views of the picturesque Arizona landscape, visible behind curtains draped over mock windows. “I know of no other homebuilder who has done something like this,” Fulton says. “We like to color outside the lines. We’ll try most anything once.” The unique living room cost about $20,000 to create and install, along with $4,000 in rent for the space. An interactive feature allows visitors to use cell phones to

view video testimonials from Canadians who have purchased Fulton Homes. “I had a lot of naysayers,” Fulton says of his Canadian focus. “They asked why would I spend a half million dollars in advertising from Victoria to Quebec. But it’s paid off. From 85 to 95 percent of Canadian homebuyers pay with cash.” The importance of business marketing was instilled at the age of 13 when Fulton began working in Los Angeles for Eagleson’s Big and Tall men’s clothier, where his father, Fulton Homes founder Ira A. Fulton, worked as a consultant. “Whether it’s selling navy blue blazers or a 2,400-square-foot, four-bedroom house, it’s all about marketing and delivering a quality product to your customer,” Fulton says. Fulton’s marketing savvy comes at a time when the homebuilding industry continues its slow crawl out of what he calls a “four-year hangover” due to the economic free fall. In better times, the local homebuilding industry was delivering 60,000 new homes a year. This year, the industry will be hard pressed to deliver 13,000 homes. Industry-wide, last year just over 8,000 were built. The housing market collapse severely affected Fulton Homes. Due to sharply declining home

Building Up

■■ Doug Fulton was named Fulton Homes CEO

in August 2007. His focus is to vigorously market Fulton Homes to create instant name recognition. Before becoming CEO, Doug Fulton was president of Fulton Homes Sales Corp. The company was founded in 1975 by his father, Ira A. Fulton. The number of homes sold in 2004 was 2,900; in 2007, that dropped to 800. Since then, the numbers have been as low as 400 and as high as 900, and are now trending upward from 400 in 2010 to 528 in 2011 and 600 in the first eight months of 2012. Doug Fulton contributes to the community as a special deputy for the Maricopa County Sheriff’s Office, flying a helicopter for search and rescue missions. After Hurricane Katrina, he helped to deliver emergency medical supplies to the disaster area.

■■ ■■ ■■

■■ ■■ 18

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and land values, banks revalued property owned by the company, called in the 80-percent loan-to-value, and threatened to sign deeds of trust and liquidate the homebuilder if they could not collect $163 million in outstanding debt. After trying to cut a deal with lenders, Fulton filed for a Chapter 11 in 2009 to protect the company’s name and inventory. The company and lenders came to a settlement in July 2011. Now with the episode behind him, Fulton says it was a learning process — and certainly an experience not to repeat. “It’s something you really don’t want to get good at,” Fulton says. “After two-and-a-half years and $11 million in attorney’s fees, we were at a point where we were able to stand up and tell them we can pay you back everything we owe you, plus interest. And I paid for all of their [banks’] fees, their attorneys’ fees, all of their expert witnesses. We paid them back everything we owed them, plus interest. “I learned through the process not to overextend as a business. When you sense market conditions changing, you must react. We saw the storm coming, so we immediately sold about 6,000 lots, which were still farm fields. We shed all that was not necessary for business,” says Fulton, observing, “When things are going well, you think it won’t end. But it’s a cyclical industry. I learned to set aside for a rainy day because it’s going to eventually rain on you.” During the lean times the company went from 300 employees to 64. More than 20 have been rehired. “Those are the happiest phone calls to make,” says Fulton. “We are a family-owned business, so our employees are like family. We don’t have executives in their mahogany playpens in their corner office; we don’t have secretaries taking care of people.” As Fulton is about to leave the airport lounge, he stops to chat with a TSA agent who happens to own a Fulton Home. Out of his line of sight, a weary Canadian traveler relaxes on a leather chair, sneaking a nap while she waits for her luggage to arrive. Fulton Homes fultonhomes.com

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Photo courtesy Fulton Homes

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N o v e m b e r 2012

Educating Our Work Force

How knowledge will build business in Arizona by Don Rodriguez

nough already! It seems to be taking forever for Arizona’s unemployment rate to drop to levels seen before the Great Recession. Or is it the new reality that rates never will be near 5 percent again? It’s not for a lack of jobs, as a look at help wanted listings shows. It’s a lack of enough qualified Arizonans to do the jobs that require more than on-the-job training.

Michael Brown, an economist at Wells Fargo Securities who monitors such trends, explains the United States has moved beyond the cyclical unemployment marked by layoffs that occur when demand for products and services drops. The nation now faces a disconnect between skills needed to do today’s jobs and the talents possessed by the available labor force. This is structural unemployment, he says, which is more commonly called the skills gap. “We’re already seeing those effects,” he says. A prime example in Arizona is companies bringing in people from around the country “and in some cases, the world” to fill open positions, edging out workers here. “It’s due to the skills gap,” Brown says. While on the surface those placements don’t affect the unemployment rate, such measures don’t benefit those people looking for work. “They are not competing across the state or competing across the country,” he says. “They

are competing globally.” For students who think simply getting into colleges and universities is the ticket to a career, they’re already facing disappointment. Recent reports regarding standardized tests considered in college applications showed more than half of the 2012 high school graduates lacked the skills needed to succeed in college. When they come to college unprepared, they spend time in remedial classes, which is very costly, Brown says. They can become frustrated and, within one or two semesters, they drop out. If they do get past remedial, they may major in liberal arts, the “easy majors” without the science, technology and math, he says. “It really sets students up for a tough time in the years ahead.” In Arizona, there are sectors already tackling the skills gap. Some programs underway offer payoffs in the near term as some workers get a shot at training for jobs that require more skills but also offer pay.

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Community colleges and partnerships are working to deliver new skills to a cross-section of Arizonans already in the work force or soon to enter it. Some high schools are focusing on the lessons of science, technology, engineering and math (STEM) that will be required in more competitive work forces. There are even parents raising the bar so their children — and generations to come — can decrease if not close the gap completely.

Companies Encouraged to Act

For training essential to making Arizonans competitive now, the Arizona Commerce Authority has partnered with companies throughout the state through its Arizona Job Training Program, a grant program to support custom training for employers who create new jobs or increase the skills and wages of current workers. One grant recipient cannot afford to take a chance on workers without special training. Scottsdale-based BroadcastAZ, which provides broadcast of live shots from breaking news 24/7 in the state, is the first studio outside the New York City area to use video over Internet protocol (cloud technology) for high-definition video broadcast, says Doug Collins, the company’s director of sales and marketing. The grant of more than $100,000 to its parent, Broadcast USA LLC, allowed the company to educate new hires in traditional broadcast technology as well as servers, encoders/decoders and other communication technology, Collins says. “The ACA grant became an enabling catalyst for our company to leverage and accelerate our growth into the breaking-news broadcast sector in Arizona,” he says. Broadcast USA provides broadcast services to clients such as NBC, ABC, CBS, FOX News, the Glenn Beck Network and other global networks. Although there already are skilled broadcast and telecommunication professionals in the Phoenix metro area, Broadcast AZ needed additional expertise from employees. In particular, 10 professionals were trained to operate such equipment as the TriCaster 855 professional video studio switcher system, the industry standard for producing live shows like the Super Bowl or network shows like Anderson Cooper while he was on location inbusine ssmag.com

in Scottsdale. “The skills that we provide to our staff allow them to compete not only in Arizona but on a global platform as companies will require communication professionals,” he says. Ultimately, TriCaster’s parent company, NewTek, selected BroadcastAZ as the regional training center for TriCaster students and professionals. Another extra from the training grant is BroadcastAZ’s being able to give back to not only its industry but the community. The company has partnered with the Peoria Unified School District to mentor students in the Liberty High School media program through training in the new technology areas as well as begin internships providing handson experience.

Communities Enhance Industry-specific Training

Not all companies can offer new skills training on site. That’s where some organizations have to step up, especially if they want to get their communities ready for new employers. That’s the idea behind the proposed Northern Arizona Workforce Training Center, which would provide industrial and technical workforce training for businesses expanding and relocating to the region. Spearheading the effort is the Sustainable Economic Development Initiative, which assembled funds and in-kind support for a regional workforce demand study. The results revealed the need for industry-specific employee training on a recurring basis. SEDI is joined by Northern Arizona University, Coconino County Career Center, the Northern Arizona Center for Entrepreneurship and Technology, and others. Arizona Public Service provided most of the funding for architects to design training space matching the regional demands indicated in the survey. SEDI and the others identified the underutilized shop facilities at the former Sinagua High School in Flagstaff that could serve the needs of industrial and high-technology workforce training without significant renovations. Organizers are now developing a business plan to support a request for other funding that would allow the center to begin operating in January. Arizona community colleges have programs that can prepare today’s work force now even inbusine ssmag.com

“Our focus remains preparing students by encouraging them to bolster their critical-thinking skills,” Boyce says. “This type of focus has allowed our graduates to navigate their collegiate career by reasoning out information when they are unsure and has proven to be an attribute during their college career.” if students have no immediate employer affiliation. At GateWay Community College, some of the students are gaining skills in what on the surface may not seem as high-tech as HDTV, but is very much so and definitely requires the latest skills. They are enrolled in the HVAC/Facilities program. (HVAC stands for heating, ventilation and air conditioning.) Ask anyone who has attempted to repair his or her own air conditioner in the middle of August whether it’s a task for the unskilled. To provide hands-on experience, the program has formed relationships with companies and associations that, in turn, have provided the program with new equipment, says Program Director Michael A. Corry. Additionally, adjunct instructors — many of whom are currently or recently retired from working in the field — ensure students become familiar with current industry trends. Also, a relationship with Johnson Controls, which maintains a training facility for its employees at GateWay and other locations across the country, provides access to emerging

technologies, he says. Corry notes students aren’t coming to GateWay because the skills gap is foremost on their minds. “They care about learning something that will aid them in improving their current job or get them a well-paying job,” he says. And because GateWay is an open campus for any student wishing to attend, some students need additional help with math and science. Still, Corry says one of his main goals as the new program director is to ensure “students learn how to learn.” Additionally, they will be taught practical applications of electrical and refrigeration properties so they will then be able to troubleshoot systems using those same properties, he says. As happens with any program or major, the GateWay students in the program sometimes find HVAC/Facilities work is not for them. Corry has worked with students to help them discover other programs that could be more suitable. Also, one of the items on his “to do” list as the new program director is to document not only graduates but nonN o v e m b e r 2012

Contrary to sentiment often repeated in mainstream media, most parents don’t think it’s just up to teachers to prepare students for the future. In a voter poll conducted in 2010, 90 percent of parents indicated they believe they need to take on greater responsibility in improving Arizona education, says Pearl Chang Esau, the group’s president and CEO. graduate students who still moved into better jobs because of the training provided.

High Schools Focus on STEM

Understanding that math and science will be at the heart of careers in the future, some Arizona high schools are teaching these skill sets to their students before they head to college. In southern Arizona, BASIS Tucson North has received recognition beyond the state for what it has accomplished. One such accolade is being in the Top 10 of the 2012 Best High Schools rankings by U.S. News and World Report magazine. The school is part of BASIS Schools, Inc., which launched in Tucson in 1998 as an answer to a lack of rigorous, college-prep education for the average child, says Julia Toews, head of the school. While receiving honors is a plus, the real rewards happen with every graduating class because every student goes on to four-year postsecondary institutions. About 75 percent of the senior class earns some type of merit

N o v e m b e r 2012

scholarship, Toews says, and about half the graduates are accepted by select schools. Even the proportion of students majoring in science and engineering is higher than other schools. There is no magic going on at Toews’ school. “The single most distinctive thing about our students is that they know what it is like to really work hard and see the benefits of hard work,” she says. That work is intellectual in nature, so “they leave not just skilled in reading, writing, math and science, but as critical thinkers who seek out opportunities to contribute to their communities in positive ways,” Toews says. In Phoenix, Bioscience High School was planned with a core STEM curriculum. Add to that the school is adjacent to the downtown Phoenix biomedical corridor to leverage members of the surrounding community, says Interim Principal Quintin Boyce. “This vision has resulted in our school, which exposes students in the Phoenix metro area to science while building meaningful relationships

with important community members and stakeholders,” he says. Graduates report feeling academically prepared when they continue their education. While the majority of students have gone on to pursue degrees in science fields, there are some who pursue other areas of interest. The outcome is similar to that in BASIS Tucson North. “Our focus remains preparing students by encouraging them to bolster their critical-thinking skills,” Boyce says. “This type of focus has allowed our graduates to navigate their collegiate career by reasoning out information when they are unsure and has proven to be an attribute during their college career.” In its seventh year, the word is getting out about Bioscience, with school officials fielding inquiries from others interested in potentially creating new schools with a STEM focus while others are more interested in the philosophy of teaching and learning, Boyce says. Toews says there have been inquiries about the teaching philosophy at Tucson Basis North, but not from other schools in Tucson, where some even falsely accuse the school of raiding enrollments. Toews and Boyce see long-term benefits for the state that go beyond building skill sets. “These motivated students have the potential to encourage the growth of educated, skilled employees that influence the success of our state, and this translates to better-prepared employees, critical problem solvers and compassionate citizens, which in turn means a better Arizona,” Boyce says. Noting a continuing benefit, Toews says, “I also think that investing in education in Arizona is part of what will keep our graduates here to raise families.”

Parents Promote Education

Families, particularly parents, are at the heart of Expect More Arizona, a group working to create a culture that values education as the state’s top priority. Contrary to sentiment often repeated in mainstream media, most parents don’t think it’s just up to teachers to prepare students for the future. In a voter poll conducted in 2010, 90 percent of parents indicated they believe they need to take on greater responsibility in improving Arizona education, says Pearl Chang Esau, the group’s president and CEO. “We are on our inbusine ssmag.com

STEM: More than the Sum of Its Parts way to raising expectations for all students through some of the most recent reforms in education in our state,” Esau says. For example, the adoption of Arizona’s Common Core Standards coupled with top teachers and educators will boost academic rigor to prepare all students for jobs that don’t even exist today, she says. With 85 percent of high-growth/high-wage jobs in Arizona expected to require postsecondary education, Esau says, even rural communities where high school graduation and postsecondary educational attainment rates are lower need to act. “The key message for students is that high school is no longer the finish line,” she says. Esau joins others in saying postsecondary education includes advanced career training, licenses and certificates, and associate degrees. Once inside the work force, lifelong learning is a critical component to success in a global economy, Esau says, noting many workplaces offer ongoing education opportunities to their employees. “We encourage them to do so through programs where you can work while you learn,” which also includes online programs, she says. Expect More Arizona’s message is catching on, with its movement expanding to the point that Flagstaff and Tucson each has a full-time representative from the group. Esau says signs of growth include nearly 13,000 who are registered as supporters, more than 7,400 who stay engaged through Facebook and the 2,500 who follow on Twitter. The goal is to have 1 million people join Expect More Arizona movement by 2020. “We know that this work takes time and long-term commitment,” she says. “Everything we do is focused on longterm impact.” With commitments like these among groups, schools and other supporters, the skills gap could become part of Arizona history. Arizona Commerce Authority azcommerce.com BASIS Tucson North basisschools.org Bioscience High School phxhs.k12.az.us/bioscience BroadcastAZ broadcastaz.com Expect More Arizona expectmorearizona.org GateWay Community College gatewaycc.edu Sustainable Economic Development Initiative sedinaz.org Well Fargo Securities wellsfargo.com/com/securities

“Every economic development business conversation gets back to education,” says Darcy Renfro, vice president and coordinator of Science Foundation Arizona’s STEM Initiatives, explaining SFAz’s focus on research and education that can help build a stronger economy in Arizona. That focus has zeroed in on STEM (science, technology, engineering and mathematics) education, with support from such major companies as Freeport-McMoRan. “Now, that’s the majority of what SFAz is doing,” Renfro says. But STEM, as SFAz defines it, is not those discrete subjects taught through a traditional curriculum; it’s an interdisciplinary approach that combines problem- and project-based education to provide real-world learning for students. “The goal is to help students better understand math and science, and also language arts, in the context of the real world,” says Renfro. Key is its emphasis on helping students solve problems and think critically. In other words, it is both content areas and a way of learning. Bioscience High School in Downtown Phoenix presents a full immersion program. Students do all project-based, student-led learning, and with local employers and municipal government offices. At Central Phoenix’s Metro Tech High School, it’s a partial immersion — students are doing projects around sustainability, tying cultural arts, horticulture, and construction and design to math and science. “It’s not a one-size-fits-all solution,” says Renfro. Schools can implement STEM education in smaller increments. “Maybe start with an after-school program in specific areas to help teachers and students get used to it.” SFAz met with educators throughout the state in 2010 and ‘11 and found tremendous interest in the program, according to Renfro. The most common question was, “How can I do it?” Renfro shares. Thanks to a strategic partnership recently announced between SFAz and Helios Education Foundation, grants of up to $500,000 are being made available to schools and districts to implement STEM education curricula in their classrooms. In terms of budget, however, Renfro notes STEM “doesn’t have to need a lot of equipment” and may be achieved with creativity and a reprioritization of existing funds. Another innovative approach to STEM is coming from the Phoenix Symphony. Recently launched at ASU Preparatory Academy, Mind Over Music integrates music with STEM concepts. For instance, the science of sound waves can be explored by studying how they travel based on the instrument medium and design and how tuning impacts the frequency. Experimenting with appropriate music apps can strengthen technology skills such as analysis and synthesis, creativity, and troubleshooting. Learning how to control sound through musical instruments (acoustics) and inventing and building homemade instruments (anatomy and mechanics) enhance engineering skills. And musical notes and signatures are an expression of mathematics concepts. “This is the first time any arts organization has worked with schools to create a program to teach STEM subjects,” says Phoenix Symphony CEO Jim Ward. The model is designed to provide quantifiable data on the efficacy of the program, information of great interest to the organization’s corporate sponsors. For the business community, Ward notes, “Education remains an area of key interest [due to] the importance of creating a pipeline for a strong work force.” Kim Leavitt, director of education, initiated the program based on similar models she created in Tennessee that have been cited by the U.S. Department of Education and the National Governor’s Association as viable learning models for high-risk schools. “… providing a multi-year, in-depth curriculum-based model coupled with the level of evaluation we’re doing requires experienced staff, resources and time. It’s only because the Symphony fully embraces its education mission that we were able to launch Mind Over Music.” To become the type of work force employers are looking for, students need to be able to think, solve problems and collaborate. “STEM will help in whatever career they choose,” says Renfro, emphasizing it is meant to help students be well-rounded individuals as well as foster future innovators and entrepreneurs. “These are the foundational skills necessary in today’s economy.” —RaeAnne Marsh Helios Education Foundation helios.org Phoenix Symphony phoenixsymphony.org Science Foundation Arizona sfaz.org

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N o v e m b e r 2012

Communicate

Louder than Words

Are You and Your Communications Team Prepared for a Crisis? Your response will have long-term consequences for your brand by Denise D. Resnik The fire alarm rings. Instantly, trained personnel leap into action. The dispatcher pinpoints the location and provides clear directions to the firemen and firewomen headed to the scene. Upon arrival, the first responders assess the situation and react with seamless teamwork and precision. Everyone has a role to play, everyone is prepared and the situation stays under control. If an unexpected and unpleasant incident disrupts your company — accidents, scandals, defective or harmful products to name a few — are you prepared to respond? Emergency personnel aren’t the only ones who need to be ready when an unexpected event strikes. A company’s reaction to a negative event has a direct impact on its public reputation, which in turn can impact its brand and ability to compete in the marketplace. A thoughtful crisis communications plan, developed before a crisis hits, provides complete and succinct instructions for when you need to move quickly to get in front of bad news.

Positive PR Means Being Prepared Have a media plan in place. Not all crisis situations attract the attention of reporters, but, when they do, an organization’s reaction and interaction with the media will have a significant impact on what happens next. To help your team be prepared to interact with the media, four steps need to be established ahead of time: Outline what constitutes a crisis. Designate a spokesperson. Create and post a call list for the designated spokesperson, communications personnel and consultant, and key project members. Determine the chain of command and define each team member’s specific roles and responsibilities.

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When a situation occurs, the responsible team members should gather the pertinent facts about what happened so as to assess the situation and determine where the responsibility and legal liability lie. Next is to determine a plan of action — with key talking points — to rectify the problem, including deciding how best to respond to your most important stakeholders and the media. Going public is the next step, when the media is at your door and on your phone. The spokesperson will typically limit what is said to news media to a factual assessment of the current situation, including what happened, where, when, to whom and how. Also share information on investigations and short- and long-term corrective measures as determined. Anticipate. A lot of questions are headed your way. Get your key messages in order and review, review, review. If you are on the phone with a reporter, keep them in front of you. Don’t underestimate the value of role-playing as a part of your preparation. Get grilled ahead of time by your communications manager or other trusted staffer. The rehearsal time will pay off when the cameras are on. Make your key points first and foremost. Lead with your strongest messages and continue to integrate your key messages throughout your conversation. Be aware of deadlines. In today’s world of social media and instant posting of information, your timely responsiveness to media inquiries becomes even more critical. Say what you can when you can, but without sacrificing accuracy for speed.

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Books Nothing is off the record. Stick to the script and your message points. It’s a reporter’s job to uncover as much information as possible. That includes what you may think is a casual conversation after the interview is over. But the interview is never over for a reporter. Don’t speculate and don’t engage in hypotheticals. Tell your story and stick with what is known. Truth builds trust; conjecture fosters doubt. Leave out the “what ifs.” Don’t ramble and always tell the truth. Keep your answers short and on point. Whatever you do, don’t mislead a reporter. It’s OK to repeat your key messages, but straying from them leads you into potentially dangerous territory. Avoid “No Comment.” It’s OK to say “That’s a fair question, let me get back to you with an answer.” Then do it. Let them know when they can expect to hear from you again. If you can’t answer a question for legal reasons, say so. “No comment” often translates into an admission of guilt. Providing an explanation for why you can’t answer a question adds to your credibility instead of detracting from it. Don’t use insider jargon. Using industry-specific terms can come across as being deceptive and condescending, hiding behind the lingo to confuse the public. Speak in plain language. Don’t worry about repeated questions on the same issue or silence on the line. When there’s silence on the line, don’t feel the need to rush in and fill it. Wait for the reporter to ask another question and always stick to your main points. Don’t become belligerent. As mentioned before, it’s a reporter’s job to dig for information. Cooperation, honesty about what you say — and what you can or can’t say — goes a long way. Always be polite and respectful. Keep a watch for embers. Maintain a log of all media inquiries, including the name of the reporter and media outlet. As your situation progresses, you may want to reach out to the reporters to provide positive updates. Also track mentions of your company through a service such as Google Alerts to stay on top of public conversations about your situation. Create an ongoing search for mentions of your situation on Twitter and monitor activity on your company’s Facebook page and blogs, if you have them. As much as you may want to react to every news item or comment, stop and assess the best way to respond. Don’t appear defensive. Stick to your talking points. Address inaccuracies. Social media platforms are good tools for reaching out to your audience during a difficult time. Provide your own information, sticking to the same facts as provided to the media on your company website and other public-facing pages. Importantly, demonstrate the human side of your company — expressing concern for the well-being of those impacted and demonstrating your commitment to stakeholders. Having a crisis communications plan in place is another form of insurance. You hope to never have to use it, but you want make sure it stays current and ready to go in case you do. DRA Strategic Communications dracommunications.com

Denise Resnik is president of DRA Strategic Communications, which, since 1986, has been providing strategic marketing and public relations services to a variety of clients in the fields of real estate, economic development, healthcare, energy, education and hospitality.

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Future of Business

Amplify: How the Rise of the Social Economy Empowers Us All A leading futurist offers a portrayal of how new technologies are giving individuals so much power to connect and share resources that we are entering a new era in which networks of individuals, not big organizations, will solve a host of problems by reinventing business, education, medicine, banking, government and scientific research into radical new types of organizations and services. Offering specific examples, such as that of BioCurious, a members-run and free-to-use biotech lab, Gorbis shows how innovative individuals are taking over so many of the jobs done by big businesses and organizations, and how we can all take advantage of these new opportunities. Marina Gorbis $26.00 Free Press January 2013

The Heart of Change: Real-Life Stories of How People Change Their Organizations Kotter and co-author Dan S. Cohen delve deeper into the subject of change to get to the heart of how change actually happens. Through real-life stories from people in the trenches, in all kinds of organizations, the authors tackle the fundamental problem that underlies every major transformation: How do you go beyond simply getting your message across to truly changing people’s behavior? Based on interviews within more than 100 organizations in the midst of large-scale change, The Heart of Change delivers the simple yet provocative answer to this question, forever altering the way organizations and individuals approach change. John P. Kotter and Dan S. Cohen $28.00 Harvard Business Review Press November 2012

Think Like a Futurist: Know What Changes, What Doesn’t, and What’s Next Discover how to short circuit the habits that blind us to future trends, how to break through the walls of resistance to change, and how to find the tools needed to face the future with confidence. This book brings a practical and disciplined approach to creativity and future thinking that can be immediately applied. Futurism isn’t just a profession for an elite few but a way of thinking that the fast pace of twenty-first century life requires for many of us. Cecily Sommers teaches us what we should have learned in business school or kindergarten — how to apply futures thinking to the challenges of daily life and enterprise. Cecily Sommers $27.95 John Wiley & Sons On shelves and online

N o v e m b e r 2012

Focus

Our Subject In-Depth

Restaurants: Setting the Table for Business Industry is strong but individual survival means being ready to do it all by Gremlyn Bradley-Waddell

Kitchen 56’s pulled pork

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Kitchen 56 mural showing the site’s early ancestry

environment (can you say “summertime?”) that chews up and spits out eateries daily.

A Taste for the Industry Michael DeMaria, the renowned chef behind Heirloom restaurant, Mid-City Kitchen and M Catering by Michael’s, says surviving in the industry often comes down to being creative. With food costs that have jumped from 30 percent to between 35 and 38 percent of a restaurant’s expenses, he’s talking about overall menu and not just the individual dishes. That means keeping easy-to-spoil menu items like fish to a minimum, running menu specials “so you’re not wasting anything,” and using cheaper (and previously underappreciated) cuts of meat, like skirt steak, flank steak and flatiron steak.

“It’s not always easy to get it right, but you get tuned in, and you do your best to stay ahead of the eight ball without losing fresh food to the circular bin,” says Anndee Rickey, the owner of Kitchen 56 in Phoenix’s Arcadia neighborhood. She grew up in the restaurant business, doing stints as a server in restaurants her father ran outside of Philadelphia. But when she — after first following a career in arts education research — and her business and life partner, real estate developer Andy Miller, decided to open a restaurant, they surrounded themselves with talent in a consultant and experienced personnel. Even so, Rickey says Kitchen 56 occasionally runs out of items and, on other occasions, donates extra food to local food banks. She thinks customers understand.

Availability Issues Michael Nelson, owner of the Southwestern-inspired TQLA in Mesa, says supply issues take on an additional challenge for smaller operations like his that also have locations in other states. He says since TQLA tries to find fresh, locally sourced items, maintaining product consistency between locations can be difficult. When his staff discovered some items are not available in Arizona, they had to find other brands and spent a lot of extra time re-making recipes of some items — ultimately giving them a different taste profile from the original. “A good example is our house margarita,” Nelson says. “We spent months on our recipe inbusine ssmag.com

Photos courtesy of Kitchen 56

To the casual observer, the restaurant business is exciting, even glamorous. Many chefs and restaurateurs enjoy household-name status and snag as many headlines as rock stars. Plus, being a foodie is hip, and the public fervor for flavorful fare makes restaurants more vital than ever. Add to that the fact that Arizona is seen as a growth market, and it’s no surprise that restaurateurs are tempted to open up shop here. In fact, according to the National Restaurant Association’s 2012 Restaurant Industry Forecast, the Grand Canyon State’s sales are expected to reach $9.9 billion this year. In addition, the report singles out Arizona as one of two states (Texas is the other) “predicted to experience the biggest leap in job growth.” Arizona’s restaurant and foodservice employment number for 2012 is pegged at 260,000, but by 2022, the number is expected to reach 303,000, an impressive percentage change of 16.4. So, despite the anemic economy, restaurants appear to be a fairly safe haven. Nevertheless, a restaurateur’s lot is tough, anything but glitzy. There are fluctuating food costs, supply-chain issues and a harsh

in Houston trying to get the right balance of flavors and, when we were working on the Mesa location, we found out that our tequila is not available in the state and the juices we use were not carried here as well. We worked closely with our vendors and went through a lot of trial and error to come up with a great margarita fitting of the TQLA name, and, so far, we have gotten a great response from our guests.”

Surviving the Environment, Trends

Photo courtesy of TQLA

Because the Valley’s scorching temperatures disperse the locals — not to mention drying up the significant business from tourism — practically every area eatery takes a serious hit come summer. DeMaria, for example, estimates his business was down about 20 percent this past summer. Rickey equates Phoenix to a beach town, just on an opposite cycle. The three-month void means restaurants must budget accordingly, and for Kitchen 56, that means “what you make in high season isn’t spendable,” Rickey says. But the real numbers game for her is “staffing versus guests,” trying to determine how many guests there will be on a given day and serving them well while also meeting the needs of a full-time staff who expect a certain income. Although she’s learned most of her clientele comes from within a three-mile radius, Rickey says Kitchen 56 uses point-of-sale software and an online reservation system to get a real-time view of how traffic patterns change monthly, weekly, daily and even shift to shift. “The best part of running this restaurant has been providing full-time jobs for people,” she says. “The learning curve is steep and painful, but we’ve gotten to the point of loving it.” French-born Vincent Guerithault, of the

acclaimed Vincent on Camelback, says it’s also important to understand the importance of keeping up with trends. About 10 years ago, he opened an adjacent bistro that serves meals at lower prices. He also offers catering, runs a seasonal outdoor Saturday market and a corporate delivery service and, two years ago, he and wife, Leevon, remodeled their main restaurant and opened a lounge. Nevertheless, many of the industry’s basic tenets are as true today as when Guerithault was a 16-year-old apprenticing at a restaurant outside Paris, or when he first came to the United States from France and worked for Chicago-area restaurateurs Jean and Doris Banchet, who instilled in him their passion and drive for perfection. “You have to be ready to make the commitment to be available 24 hours a day, seven days a week,” he says. “You need to be involved in your business and not rely on other people to run it for you, [and] you need to be able to handle a lot of stress and pressure!” As a chef, attention to food matters can distract from other aspects of running the business. DeMaria notes the value of having someone on board who’s fiscally responsible and can “keep the chef under control,” and he’s a big advocate of turnkey operations. But he also stresses the importance of getting out of the kitchen to build name recognition. “You have to really do everything,” he says, whether it’s a TV appearance or participating at a charity event. “If you do nothing, you won’t be around.” Kitchen 56 kitchen56.com M Culinary Concepts mculinary.com National Restaurant Association restaurant.org TQLA tqla.com Vincent on Camelback vincentsoncamelback.com

TQLA’s Tequila Flight

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N o v e m b e r 2012

NonProfit

by RaeAnne Marsh

Actions to build Community

Arizona Burn Foundation: Easing Burn Victims’ Traumas

Arizona Burn Foundation azburn.org

Snapshot:

■■ The Arizona Burn Foundation’s

■■

mission is to provide emotional and financial support to families and children going through treatment for severe burn injuries. All programs are provided free. Arizona Children’s Burn Camp, in operation 22 years, gives child burn survivors a normal camp experience while helping them build self-esteem. Mrs. HotPots visits preschools and some libraries with an interactive program to teach burn and scald prevention.

■■ ■■ Other programs include smoke alarm walks, offering and installing high-end smoke alarms street by street in low-income neighborhoods. ■■ Six full-time and two part-time staff, which include the staff of Forever Courage House ■■

and a social worker to assist the families, are augmented by an active volunteer force of about 320. Forever Courage House provides shelter for family members of critically burned patients receiving treatment at the Arizona Burn Center and the Grossman Burn Center, and for families of severe trauma patients.

Ryan House: Quality of Life to Sustain Families of Children with Life-threatening Illness Snapshot:

■■ An estimated 5,000 families in Arizona are caring for ■■ ■■ ■■ ■■

children at home who have been diagnosed with a lifethreatening illness. Ryan House has served 135 families for respite care and 75 for end-of-life care since it opened in mid-2010, and is aiming to be able to serve more than 200 in 2013. Operating budget is $1.8 million annually, and all services are provided to the families at no charge. Ryan House operates with care teams of 20 full-time employees and a growing force of volunteers that currently numbers more than 300. It has four signature fundraisers: Gourmet Golf, Run for Ryan House, Community Breakfast and White Christmas.

Golfers get to eat their way around the golf course Saturday, Dec. 1, on Ryan House fundraiser Gourmet Golf. “It’s an entertainment and food event, not just a golf tournament,” says Rusty Dees, a member of Ryan House Board of Directors and co-chair of the second annual golf tournament. At every third hole, a celebrity chef — whom Dees describes as “among the most recognizable chefs in the Valley” — will serve appetizers to the players. The tasty eating continues into postround festivities, to accompany dancing to the popular local band Elvis Before Noon. In a hospitality tent for a few of

the families Ryan House has served, “people can actually see the families their support is helping to bring a little joy to,” Dees says. A silent auction will help boost the event’s fundraising toward its goal of $120,000, which will help Ryan House in its mission to provide ongoing care to families with children with lifethreatening illnesses. The organization’s facility provides a cheering environment for the children and their families, and Dees says, “The most comfortable place for them to come for end-of-life-care is Ryan House.” Ryan House ryanhouse.org

In business to do good for the community, nonprofits enrich the lives of those who contribute as well as those who receive. In Business Magazine showcases two nonprofits in each issue, focusing on their business organization and spotlighting an upcoming fundraising event.

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Photo courtesy of The Ryans House (bottom); courtesy of Arizona Burn Foundation Arizona Burn Foundation (top)

Standing 10 to 12 feet high and stunningly adorned, the live Christmas trees towering in the Camelback Inn’s ballroom for the Holiday Festival of Trees on Dec. 8 will generate bidding among the evening’s guests that will provide nearly one-third of the Arizona Burn Foundation’s annual operating budget. Climactic as the auction is — last year, one bidding war got up to $30,000 before closing with Forever Living Products finally declared winner — for the dozen new Christmas tree owners, the real excitement comes Sunday morning when volunteer teams of Valley firefighters deliver these enormous trees on their fire trucks. The auction evening’s black-tie-optional festivities include pre-dinner cocktails, a strictly Christmasthemed silent auction — “to keep the spirit,” explains Executive Director Mike Marucci — wine toss and raffles. Short presentations about the organization punctuate the sit-down dinner that follows, this year’s main speaker to be J.R. Martinez, the Iraq War veteran burn survivor whose name became a household word as he won “Dancing with the Stars.” The auction is the highlight of the event; then, dancing to a live band completes the evening.

www.inbusinessmag.com

November 2012

O n t h e Ag e n D a

A listing of Greater Phoenix business organizations and their events. Visit www.inbusinessmag.com for an expanded monthly calendar of educational, networking and special business events.

Arizona Association for Economic Development

Understanding the Arizona Legislative Process (Module 1) Tues., Nov. 13 — 8:30a – noon Understanding the Arizona Legislative Process, which will be held Nov. 13 at Rio Conference Center at Rio Salada College, is designed to dispel the confusion that the Arizona Association for Economic Development has found among business owners about how the legislative process works, what is currently running through it and who else they can partner with to attempt to influence it. The course came out of a series of roundtables AAED conducted around the state, explains Joyce Grossman, executive director. “A repeated theme was, ‘Do our legislators even know who we are?’ ‘How can we send our message?’ and ‘How can we be heard?’” she says. The session — open to the public but also part of AAED’s eight-class academy course that leads to a Designated Arizona Economic Development designation — will be an overview of the Arizona legislative process. AAED partners from the League of Arizona Cities and Towns will open the morning event with what Grossman calls “Legislation 101” information. Eric Emmert, vice president at Dorn Policy Group and AAED’s lobbyist, will discuss economic development issues that trended through the previous legislature and may be on the horizon that impact business and our ability to attract and retain business. Michelle Rider, president and CEO of WESTMARC, will then address how business owners can effectively influence economic development legislation. In addition to the information, Grossman notes, “The networking is priceless” because attendees may be sitting in the class with people who may be their partners on legislation going forward. Interest in the class has been so strong, at press time it is nearly sold out and people are already signing up for the encore presentation in Tucson on Dec. 11. (Keeping local flavor to the information, David Welsh, of the Tucson Regional Economic Opportunities group, will present the third part of the program in Tucson.) —RaeAnne Marsh Cost for the class is $50 for AAED members and $75 for the public. Arizona Association for Economic Development aaed.com

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Salt River Project

Twitter for Business 101 Wed., Dec. 5 — 8:00a – 9:30a Twitter for Business 101, to be held at the Fiesta Resort Conference Center in Tempe on Dec. 5, is presented free of charge by Salt River Project to further serve the business community. When SRP conducted its most recent tri-annual Phoenix Metro Business Study and asked participants what they needed to help them grow and thrive in their businesses, “social media emerged as a topic they wanted to better understand,” says Cindy Marzofka, manager of program marketing and special events. The Twitter workshop is part of a series focused on social media, each session led by Ken Colburn, founder and president of Data Doctors. “In addition to providing programs that help customers save energy or providing pricing programs that help them manage costs by the way they use energy, we also view as important helping businesses manage their day-to-day other operations,” Marzofka explains. To that end, SRP partners with other business organizations in the region to provide a central source of reliable information. “A Google search yields such a range of information,” Marzofka notes. “We want to help glean the best information.” The Business Resource Center page on SRP’s website offers not only resources but advice and leading-edge information as well as stories on how other businesses are surviving and thriving in this economy. Part of that educational effort, the December workshop on how small-business owners can use Twitter to grow business is third in a series that began with a general overview of social media and focused on Facebook in the second session. It will be followed by a workshop on LinkedIn, tentatively scheduled for January, and possibly an additional one after that. Details will be available on SRP’s Business Resource Center site. —RaeAnne Marsh Salt River Project srpnet.com

Notable Dates This Month Sun., Nov. 11 Veterans Day (traditional) Mon., Nov. 12 Veterans Day (observed) Thurs., Nov. 22 Thanksgiving Agenda events are submitted by the organizations and are subject to change. Please check with the organization to ensure accuracy. See more events online at www.inbusinessmag.com.

N o v e m b e r 2012

O n t h e Ag e n d a ARIZONA HISPANIC CHAMBER OF COMMERCE Young Professionals Network Thurs., Nov. 8 5:30p – 6:30p

This YPN event will be about Servant Leadership and will be presented by Eric Rodriguez, president and board member at AGUILA Youth Leadership Institute. Free Aloft Phoenix Airport Hotel 4450 E. Washington St., Phoenix (602) 279-1800

Contactos After 5 Mixer Thurs., Nov. 15 5:30p – 7:30p

Bring your family, friends and colleagues to see one of NASCAR’s finest: threetime defending Mexican Corona Series Champion, German Quiroga. Free Phoenix International Raceway 7602 S. Avondale Blvd., Avondale (602) 279-1800

Minority Business Enterprise Summit Fri., Nov. 16 10:00a – 1:30p

The Phoenix MBDA Business Center and the Arizona Hispanic Chamber of Commerce host the inaugural 2012 Arizona Minority Business Enterprise Summit (formerly MED week). $75 Renaissance Hotel - Downtown 50 E. Adams St., Phoenix (602) 279-1800

ARIZONA SMALL BUSINESS ASSOCIATION Healthy Arizona Worksites Program Thurs., Nov. 1 7:00a – 11:30a Thurs., Nov. 29 7:00a – 4:00p

Part of a 5-part workshop series on implementing or enhancing a worksite wellness program. ASBA’s Business Education Center 4600 E. Washington St., Phoenix asba.com/events

Understanding Self and Others Workshop Wed., Nov. 7 8:00a – noon

Relationships are all about mutual benefit, respect and trust. Members: $45; non-members: $65 ASBA’s Business Education Center 4600 E. Washington St., Phoenix asba.com/events

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

N o v e m b e r 2012

November 2012

ARIZONA TECHNOLOGY COUNCIL

ECONOMIC CLUB OF PHOENIX

Council Connect: Hedging a Bet on IT’s Ultimate Gamble — The Data Center

November 2012 Luncheon

Wed., Nov. 7 11:30a – 1:00p

Presented by CyrusOne: Understand all the costs and risks associated with building a data center vs. leveraging a co-location provider. Members, $35; non-members: $55. Lunch is provided. Seasons 52 2502 E. Camelback Rd., Phoenix aztechcouncil.org

2012 Governor’s Celebration of Innovation Awards Thurs., Nov. 8 3:30 – 9:00p

Presented by Avnet, Inc.: The annual awards gala that honors technology leaders and innovators from across the state. Members, $150; non-members: $200. Dinner is provided. Phoenix Convention Center, North Building, 100 Level 100 N. Third St., Phoenix aztechcouncil.org

Lunch and Learn: Improving Development and Business Processes with Agile Tues., Dec. 4 11:30a – 1:00p

Presented by Isos Technology: Discussion about improving processes and managing Agile basics such as user stories and reporting on team progress. Members, free; non-members: $15. Lunch is provided. ASU SkySong 1475 N. Scottsdale Rd., Scottsdale aztechcouncil.org

Thurs., Nov. 8 11:30a – 1:30p

Speakers: William Toler, CEO of AdvancePierre Foods, and Matt Wilson, managing director of Oaktree Capital Management. Members: fee varies with membership; non-members: $75; advance registration required JW Marriott Desert Ridge Resort & Spa 5350 E. Marriott Dr., Phoenix econclubphx.org econclubphx.org

GREATER PHOENIX BLACK CHAMBER OF COMMERCE 2012 Economic & Career Summit Thurs. & Fri., Nov. 8 – 9 All day

“Making Coast to Coast Connections” Members, full registration: $75; nonmembers, full registration: $100; summit only: $60; Friday night concert only: $50; Friday expo and career fair: free Marriot at McDowell Mountains 16770 N. Perimeter Dr., Scottsdale (602) 307-5200

GREATER PHOENIX CHAMBER OF COMMERCE 2012 Business Growth Conference & Expo Fri., Nov. 9 Noon – 5:30p

CENTRAL PHOENIX WOMEN

Produced by YO B/Phoenix SCORE, seminar/panel presentations on issues that impact small to midsize businesses. $10 Phoenix Convention Center, South Building 100 N. 3rd. St., Phoenix (602) 308-6540

Breakfast

Small Business Legislative Forecast

Krysti Horwitz will discuss “Leveraging Social Media for Business” $75 The Ritz-Carlton, Phoenix 2401 E. Camelback Rd., Phoenix centralphoenixwomen.org

Join the Small Business Leadership Council for a review of the election and what to anticipate from the legislature from a small business perspective. Guest speaker: Chuck Coughlin, president of HighGround, Inc. Free Greater Phoenix Chamber of Commerce 201 N. Central Ave., Phoenix (602) 495-2194

Mon., Nov. 12 7:30a – 9:00a

CHANDLER CHAMBER OF COMMERCE Employers’ Seminar Series Tues., Nov. 27 8:00a – 9:15a

“Gazing into the Abyss — The Future of Healthcare Reform” presented by Shelly Winson of True Choice Benefits. Members: $5; non-members: $10 Chandler Chamber of Commerce 25 S. Arizona Pl., Chandler chandlerchamber.com

Thurs., Nov. 15 7:30a – 8:15a

MESA CHAMBER OF COMMERCE Aviation Fascination — The East Valley Takes Off Thurs., Nov. 15 5:00p – 8:00p

Presented in cooperation with the East Valley Aviation and Aerospace Alliance and Commemorative Air Force Museum. Free Commemorative Air Force Museum 2017 N. Greenfield Rd., Mesa mesachamberofcommerce.org

NATIONAL ASSOCIATION OF WOMEN BUSINESS OWNERS NAWBO University Wed., Nov. 14 9:30a – 11:00a

“Social Media Demystified” (Part 2). Featured speakers: Lisa Bhella, owner of INBOX2OUTBOX, LLC, and Kristin Slice, co-owner of Three Dog Marketing LLC. Members: free; non-members: $30 Phoenix Country Club 2901 N. 7th St., Phoenix nawbophx.org

Luncheon

Wed., Nov. 14 11:00a – 1:00p

Members: $38; non-members: $48; additional $15 after Nov. 9 Phoenix Country Club 2901 N. 7th St., Phoenix nawbophx.org

NORTH SCOTTSDALE CHAMBER OF COMMERCE NSCC 6th Anniversary Celebration & Tradeshow Wed., Nov. 14 5:00p – 8:00p

The largest trade show in the Airpark, with more than 90 Chamber members showcasing their products and services. Free North Scottsdale Chamber of Commerce 14301 N. 87th St., Scottsdale northscottsdalechamber.org

PEORIA CHAMBER OF COMMERCE 2nd Annual GPS Biz2Biz Sat., Nov. 3 9:00a – 2:00p

In partnership with Gals Prepared to Succeed, the City of Peoria and Park West Mall: an opportunity to display your business and products. This event is open to all businesses, not just women-owned. Park West Mall 9744 W. Northern Ave., Peoria Debbie Davis, davisfam88@gmail.com

SCOTTSDALE AREA CHAMBER OF COMMERCE Airpark Forum: Global Business Expansion Fri., Nov. 2 7:30a – 9:30a

Panel discussion about how to take your business into the global arena. Members: $20; guests: $30; day of event, add $5; advance registration requested Scottsdale Thunderbird Suites 7515 E. Butherus Dr., Scottsdale scottsdalechamber.com

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

27th Annual Sterling Awards Luncheon Tues., Nov. 13 11:30a – 1:30p

The Chamber’s marquee event, the Sterling Awards embody the spirit of SACC by celebrating the people and companies that make our community a great place to live, work and play. $75 Chaparral Suites Resort Scottsdale 5001 N. Scottsdale Rd., Scottsdale scottsdalechamber.com

Thunderbird Emporium of Scottsdale Fri. – Sun., Nov.16 – 18 10:00a – 8:00p Fri./Sat.; 10:00a – 5:00p Sun.

The streets will come alive with items from wood carvings to fine wines, and will include Dickensian Carol Singers, Christmas elves and Christmas-lit booths. Free Scottsdale Waterfront 7135 E. Camelback Rd., Scottsdale scottsdalechamber.com

SURPRISE REGIONAL CHAMBER of Commerce Monthly Networking Breakfast Tues., Nov. 13 7:00a – 9:00a

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Members: free; guests of members: $6 The Colonnade @ Surprise 19116 Colonnade Way, Surprise surpriseregionalchamber.com; online registration req’d.

TEMPE CHAMBER OF COMMERCE State of the City Address Fri., Nov. 9 7:30a – 9:00a

Tempe Mayor Mark Mitchell will share his thoughts on the local social and economic climate along with his vision for the growth and future of Tempe and Arizona. Advance RSVP is required. Members: $50; non-members: $70 Tempe Mission Palms 60 E. 5th St., Tempe Sachiyo Ragsdale, (480) 967-7891

Hot Topics and Lunch: Cloud Computing – What Can It Do for Your Business? Thurs., Nov. 15 11:30a – 1:00p

Industry experts Doug Gaylor of Crexendo, Robert Douglas of Red Key Solutions and Aqeel Shahid of Telesphere will discuss cloud computing. Hot Topics and Lunch is sponsored by SRP. Members: $25; non-members: $35 Location TBD Sachiyo Ragsdale, (480) 967-7891

WEST VALLEY WOMEN

OTHER BUSINESS EVENTS

2013 Philanthropy Partner

Global Marketing Magic

$35 Arizona Broadway Theatre 7701 W. Paradise Ln., Peoria westvalleywomen.org

AZIGG starts its 6th year with Lon Safko discussing how you can leverage technology to grow globally. $20 online, $25 at the door SkySong 1475 N. Scottsdale Rd., Scottsdale growthnation.com/azigg/upcoming-events

Tues., Nov. 6 11:30a – 1:00p

WESTMARC 8th Annual Golf Classic Fri., Nov. 30 11:00a – registration; 2:00 – shotgun start

This is an opportunity to golf with government and business leaders from the West Valley. Individual: $200; foursome: $750 The Wigwam Golf & Country Club, Heritage Course 451 N. Old Litchfield Rd., Litchfield Jen McSweeney, (623) 435-0431 x 202

WOMEN OF SCOTTSDALE Spirit of Scottsdale Luncheon Fri., Nov. 16 11:30a – 1:00p

$35 The Westin Kierland Resort and Spa 6902 E. Greenway Pkwy., Scottsdale womenofscottsdale.org

Mon., Nov. 5 7:30a – 9:00a

Understanding the Arizona Legislative Process (Module 1) Tues., Nov. 13 8:30a – noon

AAED Economic Development Academy of Arizona presents this training on the basics of the Arizona legislative process. Members: $50; non-members: $75 Rio Salada College, Rio Conference Center 2323 W. 14th St., Tempe (602) 240-2233 (See story on page 31.)

Twitter for Business 101 Wed., Dec. 5 8:00a – 9:30a

Presented by SRP. Free Fiesta Resort Conference Center 2100 S. Priest Dr., Tempe srpbizresource.com (See story on page 31.)

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Legal

Legal Matters to Business

Mediation: Conflict Results that Move Business Forward The goal is a solution that satisfies all parties,in lieu of an adversarial court proceeding by Amy Lieberman, Esq. According to one source, 30 percent of a manager’s time is spent dealing with conflict. If workplace conflict escalates into a lawsuit, it can cost well in excess of $100,000 to defend a case. Litigation is costly and destructive; mediation is an alternative step a business can take to reduce conflict and save money. Mediation provides a safe place for employees to voice concerns and explore positions. Set in a conference room, a neutral mediator helps people share information and get past emotional roadblocks to resolution. The goal is for everyone involved to hear and understand not only what the other side wants but why they want it, and to see if there are ways to meet the interests of both parties. The mediator meets both together and separately with employees and company representatives. Agreement is typically reached, or relationships significantly improved, in one to three sessions. Whereas in court or arbitration there is a “win-lose” outcome, the result of mediation is different. The mediator strives to obtain an agreement that works for all so the outcome can be a “win-win,” though, more often, the outcome is a practical “can live with - can live with” solution.

be more candid in exploring positions, goals, barriers, strength, weaknesses and options for resolution. In one case involving conflict at an insurance company, a manager wanted to have a new executive fired because he created a “hostile environment.” After the manager learned in mediation about a personal crisis the executive was dealing with, he viewed the executive’s actions differently. They opened up communication and were able to commit to new ways to communicate better and more often. In my experience, mediation resolves the matter more than 90 percent of the time. Settled, signed, done! Mediation costs a fraction of the expense of defending a trial and relieves the huge stress of conflict.

Why does Mediation work so well?

What kinds of cases are appropriate for mediation?

When it comes to strong conflict, we are often our own worst enemies. We say things we don’t mean or later regret. For example, an employee in a lawsuit might say, “I will take this all the way!” That statement can cause a company to fight to the end because they think there is no hope for resolution. What the employee is really saying is, “If you don’t offer me something reasonable that allows me to go on with my life, I will be forced to take this all the way.” When we are angry, we usually aren’t aware of the full extent of what’s driving us until we really begin to express our thoughts and frustration in a safe setting. In the case of an employee who, during mediation, expressed, “What really made me mad was that he gave that project to someone else and has no appreciation for what I do here!” the employee’s concern was a lack of respect. Once such a concern is identified, it can be validated and addressed. An experienced mediator is mindful of interpersonal dynamics and the psychology of conflict, plus negotiation strategy, and helps employees not to work against their own interest. Employees or partners can sometimes take action against their own interest, such as storming out of meeting out of frustration. That action can have highly negative consequences, such as disciplinary action or even termination, or cause others to want to break the relationship. Certainly, that isn’t the end goal! Here, again, the mediator is knowledgeable in negotiation strategy and so takes steps to ensure no one walks away from the process. “Shuttle diplomacy” occurs, after separate private meetings are held with each party where people can

Virtually any case that is in the court system is appropriate for mediation. In the business setting, these include contract disputes; intellectual property disputes; wage disputes; restrictive covenant claims; franchise disputes; sexual harassment claims; and charges or lawsuits alleging hostile work environment, harassment, discrimination, retaliation and wrongful termination, to name a few. Often, non-monetary solutions can be included in a settlement, such as restructured agreements in commercial cases; or transfers, promotions or letters of reference in an employment dispute. Importantly, apologies can be made confidentially in mediation, providing a huge opportunity for repairing relations and achieving a more cost-effective resolution. Mediation works for employee relations issues, partnership and organizational conflict as well. When conflict generates dysfunction in the workplace, it negatively impacts productivity and growth. Mediation enables the parties to air grievances, explore issues, commit to new ways of behaving and improve work relationships.

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Insight Mediation Group insightemployment.com

Amy Lieberman, Esq., author of Mediation Success: Get it Out, Get it Over, Get Back to Business, serves as executive director of Insight Mediation Group, L.L.C. and Insight Employment Mediation, L.L.C. She is an ACR Advanced Practitioner in Workplace Mediation and Employment Arbitration and also among the top 5 percent of lawyers in Alternative Dispute Resolution.

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Scottsdale Business Institute

Sales

Business Development

Ask Straight Up — and Close the Deal In sales, the direct approach gets the job done by John Baker Most salespeople, when it comes down to it, are downright scared of being direct and to the point and telling people in no uncertain terms, “Here’s what I want!” Think about it. There’s a conspiracy that encourages people to bury their most important wants and desires. Marketing trainers use consultative selling to draw people out. Social media consultants say, “Selling directly is suicide!” People hem and haw, and they even are afraid to ask what they most want to. They feel vulnerable about being honest and up-front. It petrifies even the best of us! Yet when it comes to being successful in business, being frank, open and clearly asking

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people to give you what you want is what wins the day. In fact, I believe the world would be a better place if marketers were totally up front and said, “I’m selling windows today; are you buying?” Several years studying the fears and trepidation people demonstrate in situations across the whole spectrum of human interactions has shown me that most people do not know the best way to get what they want. Yet my documented observations of the tactics and strategies of people who were getting exactly what they were after has resulted in a discovery that is absolutely earth-shattering in simplicity: The most successful people ask for what they want. Then they give the three very

best reasons that explain why it makes perfect sense to say yes. Consider the case of a salesperson who has met with the client and properly identified the needs and tailored a solution that meets the clients’ needs as well as budget. What happens all too often is, after the meeting is complete, the salesperson thanks the client and says he will follow up with him in a few days. Even experienced salespeople, young and old, are often stumped over asking someone for the order. They stumble and bumble their way through touchy-feely talk about their hobbies, the weather, their pets, family or weekend plans — anything but what they are really after. inbusine ssmag.com

Oh sure, all sorts of experts emphasize the importance of building a relationship, or drawing out the prospect, or listening for buying clues, and any number of other items, but the crucial, bottom-line issue is, they never get around to asking the big question. Yet the quickest and best way to ask for the order is to go right up to the person and say, “Would you do this for you? You’ll see what you want happen. You’ll be able to do this and get to do that, and I’ll have it to you by specified date … within your budget. Guaranteed.” It is crucial to identify the exact most important request, and brainstorm before deciding on the best reasons. Each reason needs to be carefully selected from a larger inbusine ssmag.com

number of options and be backed by three important facts. By far the best reasons are “emotional verbatims”: something a client or prospect has said that sheds light on the underlying motivations they have to grant what the salesperson is asking for. When making the request, the salesperson should take the opportunity to remind his audience of both what they said in the past and, more importantly, help them remember the emotions they attached to it. For example: “I remember when you told me that on-time delivery was a critical success factor for you. I recall how angry you were when you told me that the prior service provider constantly missed deadline; you said it really made you look bad in front of your boss. That’s not going to happen with us. We’re the industry’s leader in on-time delivery. We have a 100-percentmoney-back guarantee. And 100 percent of our clients will back up our claim.” Often, salespeople get tripped up when a prospect asks about price, but rarely does price carry any emotional baggage and rarely is it a best reason. By focusing on price, the salesperson allows the conversation to be commodity-based. Carefully choosing a best reason that appeals to an underlying emotional response gets things done and decisions made. When an “emotional verbatim” isn’t available, sales professionals can use the power of research to derive a best reason. This could be as easy as quoting from recent press coverage or a CEO letter to the shareholders. I trained my salespeople to walk over to the Mission and Values statement hanging on every prospect’s office wall, point to the document and say, “Right here, you state that your organization’s No. one asset is its employees. We agree. Our firm is committed to a one-and-done call standard where 100 percent of your employees’ issues are completed satisfied in the first call. None of our competitors can claim this standard, but we feel that’s how your most important asset should be treated.” A best reason needs to answer the question, “Why would this individual want to give me what I am asking for?” Brainstorming may suggest that your industry-leading technology platform gives you a competitive advantage, but if your prospect couldn’t care less about it, it’s not a best reason. It’s about that easy, and the power of this strategy is more than a little amazing. This

method is proven successful in penetrating difficult accounts; closing difficult sales calls; shortening a sales cycle; protecting price margins; reducing meeting time; speeding up Powerpoint presentations; and structuring personnel reviews, sales letters, company communications with suppliers, corporate memos and even e-mail messages. What’s more, it is proven to be quite helpful in corporate and business personal interactions with personnel, especially with supervisors and staff. And it really helps if you put your money where your mouth is: “Director, let’s implement the plan as follows. We’ve got this and that for an entrée, and it addresses the crucial factors like this. It will improve how things operate like this, and we’ll even make sure that it all happens by closing!” Conversations are clearer and there is less misunderstanding, and I earn a lot of points for being thoughtful. There are three key rules to this formula: Only offer information that is meaningful; the rest is trivial. Get to the point and ask for what it is you want. Be quick about it. Building a relationship is great, but overdoing it creates a nuisance. The biggest problem with consultative selling, for example, is that it gets in the way of the selling. It’s technique overload. It targets intimacy over decorum. It allows for procrastination. It enables salespeople to avoid rejection. After all, a salesperson who is busy probing the needs of the prospect doesn’t have to risk asking for the sale. Imagine a vendor at a ballpark consultatively selling a hot dog: “On a 1-to-10 scale, rate your level of discomfort with your hunger.” “Tell me your main objective with the hot dog.” “When you had a hot dog before, how satisfied were you with the mustard-and-ketchup ratio?” Isn’t he more effective when he just yells, “Hot dogs, hot dogs, come and get your hot dogs!” The Asking Formula theaskingformula.com

John Baker has held top leadership positions in sales, client service and operations in Fortune 25 companies for more than 25 years. A member of the National Speakers Association, Baker is a noted speaker on topics of leadership, leader development and building winning organizations. His book The Asking Formula – Ask For What You Want And Get It, is based on his Asking Formula workshops and consulting practices.

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Education

Series on Finance

Best Practices for Accounts Receivable Collection Personalizing the process reaps benefits by Dennis Niven The cash-flow crisis resulting from inadequate accounts receivable collection practices in a growing business is generally the greatest threat the business will ever face. Even a profitable firm can be forced to close by the resulting cash crunch. Here are a few tips that, when taken as seriously as client service, will greatly help collection efforts: Invoice clients in their own right time. Rather than invoicing all clients at, for example, the end of every two week cycle, invoice them at just the right time to get necessary approvals for immediate payment. Deliver invoices electronically. Whether through an electronic network, e-mail or fax, electronic delivery is timelier. Don’t lose the several days it takes an invoice to travel through the mail to its destination. Document charges concurrently. If all the documents related to an invoice have been scanned in or copied, there’s no scrambling when it’s time to send it. Where are the receiving documents? Where are the POs? Project managers should track and scan or copy any documents related to an invoice on a daily basis. Delegate invoice collection to the person responsible for the work. The professional staff on the job on a regular basis is in the best position to know the person or persons who must authorize payment and field the “Yeah, but …” questions that accounts payable clerks are trained to ask. Collections are best done as a matter of course by the person responsible for the billing. Implement a process for prompt approval. The reviewing manager should have 24 to 48 hours to approve outgoing invoices; if not done, the approval request should be escalated up the chain for immediate approval. Consistently followed, this policy ensures timely approvals and invoicing. Offer a discount for early payments. Any amount less than one percent might not be worth the effort for payables to get it out early, but most companies are attracted enough by that one percent to take it. Before the invoice goes out, call those who must approve the invoice before the client will pay it. This first call is an intelligence gathering mission as much as it is a quality control step. Verify that the job is going well enough to be approved and discuss any problems. Confirm that the person will be available to approve the invoice, or find out who will approve in the person’s absence. Flush out any objections right away, rather than allowing problems to surface at the 60-days-past-due date. Grasp the forgotten relationship. Account or project managers have relationships with client supervisors involved with the project, but they are forgetting someone, the one who controls the purse strings: the accounts payable (AP) person! Account managers should get to know this person quite well, stopping by regularly when they are in the client’s office. It’s valuable to build a cordial relationship. Remember, to be the company that gets paid — especially when money is tight — maintain a relationship with the client’s AP contact.

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Call again, two days after the invoice was sent. This time, call the AP contact. Make sure the invoice was received in the AP department and not lost on someone’s desk. This second phone call is still a call offering to be helpful. Call a third time the day the payment is due. If the company is holding onto their payables because they are having cash-flow problems, reinforce your discount terms and suggest they pay discounted invoices only at that time. Even without discounted terms, this call from you, one of the vendors the AP person enjoys talking to, will help you get moved to the front of the list when there isn’t enough money to pay all the vendors. In a recession, even clients who have paid regularly for years can have cash-flow problems. Slow payment requires human intervention; problems are not solved by automated systems or a call one month too late. Companies with cash-flow problems will put off every invoice they can, but vendors that fit comfortably within the client’s paper-flow deadlines, are completely documented and have better AP relationships are the ones that get paid. B2B CFO b2bcfo.com

Dennis Niven, CPA, CGMA, CM&AA, is a Scottsdale, Ariz., partner in B2B CFO®, The World’s Largest CFO Consulting Firm™. Niven specializes in Finding The Exit® and The Exit Strategy™ consulting, and provides articles on the subject on his website (www.dennisnivencfo.com).

Finance

the Education Series

q If Cash Is King, then Working Capital Is God q Best Practices for Accounts Receivable Collection q The Crucial Monthly Close To reference published segments, please access the archived “How To” articles on the In Business Magazine website, www.inbusinessmag.com.

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by Mike Hunter

Pure Venom: 2013 Viper SRT Set to debut in December, the new Viper SRT is a complete redesign by Chrysler engineers to offset the fear many had with the original model that was plagued with maintenance problems from day one. This new machine is expected to truly impress and begin again the race to build the next generation of American ultra sports cars and win out over the well-known European counterparts. With a 640-hp V-10 engine and a body made of magnesium, aluminum and carbon fiber, the SRT is said to be a speed demon with a 0-to-60 time of 3.5 seconds and a top speed of 206 mph. Touted by the manufacturer as more reliable with all-new stiffer suspension, lighter weight and a trustworthy Tremecsupplied six-speed manual transmission, the SRT may well have catapulted to a reliable status among sports car aficionados, comparable to the new Corvette C7, Mustang’s (much less expensive) Shelby GT500 and even a Ferrari. Styling is still sleek and updated, an obvious transition from the original model. Europeaninfluenced angles, a mean stance and many

2013 Viper SRT City MPG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a Hwy MPG. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a 0-60 MPH. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.5 sec Transmission. . . . . . . . . . . . . . . . . . Manual 6 speed MSRP. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $97,395

Assets

We Value What We Own

Client Appreciation: Give the Gift A sign that times are changing is that client gifts are back and in a big way. Retailers are reporting increased activity, so get on it and show some appreciation. Here are some top gift ideas for this holiday season.

Charity of Choice

Give the gift of charity with JustGive.org. This e-card service can e-mail, print or direct mail a gift card to one’s client. Set the amount and let the client choose the cause. justgive.org

design options allow precision customization. Six color choices are offered for the SRT Viper — Adrenaline Red, Black Venom, Bright White, Gunmetal Pearl, Race Yellow and Shadow Blue Pearl — all available with some sporty stripe choices. The more than 150,000 combinations available to customize this beast, including audio options (10 to 18 speakers), interior choices (updated leathers and amenities) and wheel designs (at least 8) mean this new Viper will truly be unique.

Harry & David

The classic gourmet gift is at one’s fingertips online. From the famed Royal Riviera Pears gift box to gourmet coffee and plants, Harry & David is the quintessential gift company that impresses with the highest quality items and packaging. harryanddavid.com

Wine Samplers

Photo courtesy of Chrysler (left); courtesy of Harry & David, tastingroom.com (right, top to bottom)

Creative and something that the client is certain to enjoy is a wine sampler. TastingRoom.com will deliver one box with six mini-bottles of wine to that special client. Many options to impress wine enthusiasts at all levels. From $28. tastingroom.com/samplers

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Power Lunch

Meals that matter

by Mike Hunter

A Hot Choice: Gourmet Soups As temps come down, it seems like the soups come out. Enjoy gourmet meals in a bowl at some of the Valley’s best lunch spots. Options abound and flavors come together.

AJ’s Fine Foods — Valley-wide

Known for gourmet foods and products, AJ’s is also home to a bistro that offers no less than six soups each day. Homemade daily, soups range from Cheese Broccoli and Minestrone to Tomato Basil and Mushroom Bisque. Breads and other accompaniments are offered at the soup bar. Multiple Valley locations ajsfinefoods.com

Café Zupas — Phoenix

NM Café — Scottsdale

Enjoy the finer things at the Neiman Marcus café where soup is central with two standards, the NM Chicken Tortilla and the Ribollita White Bean Soup, and a soup of the day that is always Neiman Marcus amazing. 6900 E. Camelback Rd., Scottsdale (480) 990-2100 neimanmarcus.com

A Japanese Tavern: Nobuo at Teeter House

Award-winning chef-owner shares his heritage with home-style cooking Asking guests to leave common expectations of Japanese cuisine at home, Nobuo Fukuda, the talent behind this award-winning restaurant, innovates and creates some amazing dishes for lunch at this historic Phoenix-home-turned-eatery. A James Beard Award winner and named “Best New Chef ” by Food & Wine magazine a while back, Fukuda translates his Japanese heritage with home-style cooking and has become famous for educating his guests. The menu is an experience that is meant to be enjoyed over multiple visits. The Warm Duck Salad, made with soy zinfandel, grilled greens and a yuzu vinaigrette, is a favorite with flavors that meld so well. The Tonkatsu Sandwich made with Panko fried pork cutlets on toasted shoku pan from Arai Bakery includes a tasty Japanese coleslaw. To top it off, the limited menu concludes with the Okonomiyaki, made up of seafood, a pork pancake, okonomi sauce, aonori, shaved Bonito and Japanese mayo. The restaurant is the old Teeter House, which Fukuda has transformed into a bit of a turn-of-the-century Japanese teahouse. Simple designs and cool, quiet stylings make this a quaint spot for a quick bite or a lengthy meeting over lunch. Open and airy, the décor is a hint of the Orient combined with the thick wood moldings and earth-toned furnishings atop the wood floors. Nobuo at Teeter House 622 E. Adams St., Phoenix

Café Zupas

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(602) 254-0600 • nobuofukuda.com

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Photo courtesy ofCafé Zupas (left); courtesy of Nobuo at Teeter House (right)

Made from scratch each day and with the finest ingredients, this “new to the Valley” casual eatery is all about flavor and quality ingredients. No more than ten soups on the menu at a time, from New England Clam Chowder to a Thai Lobster Curry. 1935 E. Camelback Rd., Phoenix (602) 889-7866 21001 N. Tatum Blvd., Phoenix (480) 339-8038 zupas.com

Celebrating more than 25 years of serving the women business owners of Phoenix

Fall 2012 • nawbophx.org

President’s Message Women Leading the Way

About NAWBO

NAWBO® prides itself on being a global beacon for influence, ingenuity and action and is uniquely positioned to provide incisive commentary on issues of importance to women business owners. NAWBO Phoenix propels women entrepreneurs into economic, social and political spheres of power. Visit one of our FREE welcome meetings, held the second Wednesday of each month – for all new and prospective members. This casual, informational opportunity highlights both local and national benefits of NAWBO membership. This is a great place to determine if NAWBO is a fit for you and your business. Take advantage of this great networking opportunity by bringing business cards and making connections. For more information, please visit NAWBOphx.org. Phoenix Metropolitan Chapter of the National Association of Women Business Owners 7949 E. Acoma Dr. #207 Scottsdale, Arizona 85260 480-289-5768 info@NAWBOphx.org

This issue Page 2

Making the Most of Networking

Page 4

Why should a business owner join a professional association?

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Stronger Together

I believe, from my experience, not only within NAWBO, but through my work with women internationally, that today’s women leaders have extraordinary economic potential, which is further strengthened by their contributions to their communities who connect and collaborate for the inclusive success of all. I hope you enjoy their contribution this month! To your success,

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Be the Change You Wish to See in the Workplace and more...

nawbophx.org

It is an honor and privilege to partner with InBusiness magazine and bring attention to the topic of connection and collaboration – this year’s theme of NAWBO Phoenix’s board. It isn’t a concept that is absent during other years, but there are poignant times where the focus on success is best shifted to the larger view of how and where we all fit together. We invite everyone who is ready and willing to travel together towards greater success. When NAWBO was started in Washington, DC 37 years ago, women did not have access to business capital. Womenowned businesses were something relegated to the kitchen or small neighborhood corner stores. NAWBO was started on the concept of connection and collaboration with the intent Lynda Bishop President, NAWBO Phoenix on making owning a strong, viable, sustainable and profitable business a reality for men and women alike. NAWBO National’s political involvement is instrumental in the passing of HR 5050, also known as the Women’s Business Ownership Act of 1988. This legislation was key in boosting women entrepreneurs’ access to capital. This directly led to a 30 percent surge in women-owned businesses in the country in the past two decades and led to the creation of the National Women’s Business Council, SBA Office of Women’s Business Ownership and the Women’s Business Center Program. This would not have been possible without connection and collaboration. There are so many ways to make connections and collaborate. The following articles address several avenues you can tap into to grow your business and at the same time help others grow theirs. You will see how connection and collaboration are put to work today to grow relationships, businesses, industries and communities. Through work with leadership development and mentoring of women-owned businesses, I have learned that women leaders are multipliers. They connect to others bringing as many as they can with them down the road of success. They use their power to empower others and the majority of successful women leaders share the following traits: • A clear vision and sense of purpose • Strong community roots • A desire to connect with others – even across dividing lines • Ability to take bold action and risks on their ideas • The fulfilled promise to lead the way for the next generation

Lynda Bishop NAWBO Phoenix Chapter President 2012-2013 lyndabishop.com

NAWBO NEWS

Making the Most of Networking By Gloria Petersen

The purpose of networking is to expand your people base and make contacts who will grow your business or provide new career opportunities. Not all networking opportunities take place outside the office. Successful networking involves making internal, external, and virtual connections.

Gloria Petersen

Internal Networking

Internal networking is key to a successful career move. Every person in your department can provide beneficial information if you are alert, respectful, and friendly. So reach back and pull the next person in line forward. Everything you do to improve the effectiveness of another improves your own image within the company. Make the effort to meet those with whom you correspond by email or phone. Put the face with the name. Also, plan regular contacts with specialists in the important functional areas of your company (e.g., finance, marketing, IT). The more you learn about their responsibilities, the more effective you become in your position.

External Networking

The primary value of external networking lies in meeting people who represent a wide range of industries. The right venue for you to make connections depends on whether you prefer planned or spontaneous events. Planned networking works for people who prefer structure: an agenda, speakers, programsâ&#x20AC;&#x201D;and often membership requirements and dues. Spontaneous networking works for people who prefer to mix and mingle in a relaxed social environment and connecting with someone by chance and out of context. Networking should not be limited to your own industry. Try to commit to three types of networking opportunities: industry-related events, community support events, and social mixers. Add others as time allows.

Virtual Networking

Networking over the Internet, which can become a 24/7 obsession, brings people together from around the world. You have a lot of options. Choose wisely, protect your reputation, and follow the protocols established by the social media world.

In summary:

Whether in-person or online, people are looking for contacts and opportunities all the timeâ&#x20AC;&#x201D;everywhere! We need both. Although social media networking tools have lowered the barriers for connecting, they cannot replace the real-life handshake that starts a friendship or business relationship internally or externally. Gloria Petersen is the author of The Art of Professional Connections: Success Strategies for Networking in Person and Online. You can learn more about her book series, seminars, and train-the-trainer opportunities at GlobalBusinessProtocol.com, gpetersen@globalprotocol.com, or calling 602-553-1045 (toll free: 866-991-2660).

NAWBO NEWS

Why should a business owner join a professional association? By Dorothy Wolden

Dorothy Wolden

NAWBO NEWS

You’ve heard the saying: “It’s all about connections.” Professional associations are the key to staying current in your field, developing your business acumen and making new connections. I know you’re thinking, “I’m too busy to join another group.” The thought of going to another meeting, or schmoozing with other professionals seems like just too much work. However, there are several reasons for joining a professional organization. In some

professions, it’s a requirement for licensing. Professional organizations offer benefits to their members, making it easier to do their jobs and solving common problems for members. Most importantly, joining a professional organization instantly associates you with the most serious people in the industry and adds to your credibility as a professional. Membership in a professional organization isn’t a luxury, it’s respected and important enough to be deemed as a legitimate tax write-off. Here are a few more great reasons to join a professional group: • Meet great, like-minded people • Showcase your experience through peer-to-peer discussions or public speaking. • Learn about industry and economic trends • Free or almost free training - most of the organizations have meetings focused on educational content • Increase others awareness of your company • Gets you thinking outside of the box • Discover what other companies are doing Just attending association meetings isn’t enough; you need to make the most of your time while your there. Here are some strategies to maximize your professional association membership. Some might seem obvious but rarely practiced: 1. Use and read the information gleaned from your professional newsletters. Information is a critical key in business development. Find out more about: • Hot topics and issues to be current • Know the key players (people and companies) • Vendors who might help you

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2. Have a strategy for attending the meeting. If you are shy, try to make this a time to go to a meeting with a friend 3. Pre-determine a goal for the meeting. “I am going to meet 2-4 new contacts.” Collect their cards. Write brief notes about them on the back to jog your memory. The notes could be both personal and professional in nature. 4. Get involved in the association on a deeper level. Join a committee. Most associations have a version of the following types of positions: • Program • Membership • Events • PR/Marketing/Outreach • Professional Development 5. Keep membership in a variety of related groups (in order to have a mix of ideas, personalities and companies). 6. Write an article if you feel you have some expertise. This catapults you into the role of expert. Professional memberships will always keep you fresh. Through professional associations, you will have an opportunity to learn and grow your business. Dorothy Wolden Creative Intuition • cistudio.com Years as a NAWBO member: 3 Years in Business: 10

NAWBO NEWS

Stronger Together By Martha Knight

Building strong alliance programs with other companies allows everyone to reap the benefits. National Bank of Arizona is a perfect example of a company that has truly utilized alliances with other companies to the fullest. Martha Knight Stephanie Poure, Women’s Financial Group (WFG) Liaison for National Bank of Arizona believes alliance programs definitely help the community by strengthening the relationship between

NAWBO NEWS

organizations. “WFG partners with fellow community organizations to host joint events, share referrals and provide support for one another,” she says. The NB|AZ Women’s Financial Group is a forum of professional women who join together to collaborate, network and succeed in finance, business and life through quality relationships and exclusive WFG events. The mission of WGF is connections, collaboration and community. “We value the connections we have made with our fellow community members and enjoy collaborating with them on events and projects,” says Stephanie. “We are also very involved in

giving back to our community. Since NB|AZ has a nonprofit banking niche, we always make sure to include a nonprofit in any of our events.” National Bank of Arizona utilizes some of its niche markets including Energy Link, Non-profit Banking and Women’s Financial Group to form some of its strongest alliances with other similar programs. There are a few simple steps you can take to begin forming alliances with other companies and organizations. 1. Asses your time – You need to decide how much time you have and are willing to put into a partnership. It can take time, but with effort, it will reap amazing rewards. 2. Do your research – Find out what is available to you in your area by contacting local women’s organizations, NAWBO, Chambers of Commerce and any industry specific organizations. 3. Get involved – Once you have found an organization who you think will be a great match to what you offer, then begin to get involved through volunteer opportunities, becoming a part of the board or becoming a corporate sponsor. 4. Stay consistent – Sometimes it takes a little while to build lasting relationships, so once you have decided on an organization or company it is important to stick with it for a period of time. The relationships grow with time, so be prepared to be consistent and show up on a regular basis. “Getting involved in your community is key to making a difference and networking with appropriate contacts,” says Stephanie. National Bank of Arizona is a presidential corporate sponsor with the National Association of Women Business Owners. Stephanie Poure is the Women’s Financial Group Liaison for National Bank of Arizona. For more information about National Bank of Arizona or its Women’s Financial Group program contact Stephanie at 602.212.6434. Martha Knight Arbonne International mknight.myarbonne.com Years as a NAWBO member: 2 Years in Business: 4

Be the Change You Wish to See in the Workplace By Katreena Hayes-Wood

The flood is eminent and lives are at stake. “The river is rising too fast. People are going to die if we don’t get those sand bags in place. How long do you think it will take?” asks the first man; “That depends,” answers the second man, “On how many people you choose to help.” Most of us participate in some version of collaborative achievement or in helping others, in Katreena Hayes-Wood some way, every day. However, when we make an intentional choice to use collaborative achievement in the workplace amazing things begin to happen. In my book, Dream Circles, How to Make Your Dreams Come True through the Power of Sharing, a Dream Circle is defined as any group of people who come together with the intention of helping one another achieve their dreams and goals. In a corporate model a DreamCircle™ is called a SuccessCircle™ and is used by team members to help one another to go “up stairs,” based on the idea that when I help you achieve what you want, I achieve what I want too. Collaborative achievement isn’t a new concept; it’s been around in the form of prayer circles, study groups, or group therapy for decades. People working together toward a common purpose achieve more. The challenge is not in knowing that collaborative achievement works, it’s in learning to

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step back from the ego’s need to be in control, which often prevents teams from achieving successful results. So how can we, as professionals, learn to make way for our team’s success? In one easy word: Choice! When we choose to take the higher road, to embrace and use our influence to effect positive change things become less complicated and goals are achieved. As you embark on a new project, attend a meeting, or approach a coworker, ask the following questions: 1. How can I help? 2. How can I serve? 3. How can I elevate a situation or those around me? Take a few minutes to review the choices available to you in the workplace. Is there an obvious area where you can contribute or help to elevate a situation? Perhaps you could offer to mentor a younger staffer or look for ways to recognize the efforts of co-workers. Collaborative achievement Katreena Hayes-Wood begins with a choice and a Career Services Network, LLC commitment to step up and CareerServicesNetwork.com be the best version of yourself Years as a NAWBO member: 1 possible; to be the change you Years in Business: 15 wish to see in the workplace.

NAWBO NEWS

NAWBO PHOENIX Corporate Partners Presidential Corporate Partners National Bank of Arizona SRP Strategic Corporate Partner Alliance Bank of Arizona Presidential Media Partner Media88 Executive Corporate Partners Benefits by Design Kolbe Corp Larry Miller Toyota Merrill Lynch Wealth Management Prudential Insurance Company of America Newtek Technology Services Snell and Wilmer Southwest Gas Wal-Mart Strategic Media Partners KFNX Radio 1100 AM Creative Intuition NetworkingPhoenix.com Executive Media Partner Arizona Capitol Times CITYSunTimes Despins Printing Easel Photography In Business Magazine Money Radio 1510 AM Business Corporate Partners AmTrust Bank APS Bank of Arizona Benjamin Franklin Plumbing Border States Electric E&J’s Designer Shoe Outlet Orchard Medical Consulting Schmeiser, Olsen & Watts, LLP Wells Fargo

NAWBO NEWS

Get social with NAWBO Phoenix Utilizing NAWBO’s social media presence not only allows you the opportunity to engage with fellow women entrepreneurs, but also find out what is happening at NAWBO Phoenix. Through our social media outlets, you can learn about upcoming events, speakers, mentorship opportunities, community service opportunities and more, while being able to engage in forums and other topics with NAWBO members. Whether you are a NAWBO member or not, you are able to follow us on Facebook and Twitter – for those of you who are not yet members, you may like what you see and want to join us! The benefits of NAWBO membership are abundant. NAWBO is also on Linked In, but is a private group for our members providing a place for collaboration and connections in a platform that allows members to connect beyond our events. You can find links to all of our social media accounts on our website at http://nawbophx.org or go directly to our Facebook account at http://www.facebook.com/NAWBOPhx and Twitter account at https://twitter.com/NAWBOphx.

NAWBO Board of Directors Executive Committee

Board of Directors

President Lynda Bishop Summit Alliance Solutions, LLC

Director of Communications/ Media Relations Martha Knight Arbonne International

President-Elect Jackie Wszalek Despins Printing & Graphics Finance Director Julie Kern, CPA, CFP, Bridge Financial Strategies Secretary Nancy Sanders Three Dog Marketing Immediate Past President Kristine Kassel Benefits By Design, Inc. Director of Administration Suzanne Lanctot NAWBO Phoenix Metro

Directors of Corporate Partners & Economic Development Amy Bruske, Kolbe Corp Kristine Kassel Benefits By Design, Inc. Director of Membership Services Magaly Masci Masci Wealth Management MSSB Director of Social Media Kristi Trimmer Orange Dragonfly Media Director of Programs Colleen O’Shaughnessy MetLife Program Co-Chair Kristin Slice Three Dog Marketing Director of Public Policy Ginger Lamb Arizona News Service/Arizona Capitol Times Awards Chair Jackie Wszalek Despins Printing & Graphics Award Co-Chair Katreena Hayes-Wood Career Services Network

Ambassadors Chair Phaedra Earhart Farmers Insurance Community Alliances/Diversity Chair Barbara Appenzeller, CPA, Appenzeller & Associate, CPAs, P.C Community Service Chair Melanie Dunlap, Peaceful Spirit Enrichment Center Events Chair Ginny McMinn McMinn Business Solutions Honorary Advisory Council Chair Cynthia Wrasman MJC Solutions, Inc. Mentor Program Chair Pamela Smith Numbers Etc. Mentor Program Co-Chair Cheryl Skummer Meridian Payment Systems NAWBO University Chair Dorothy Wolden, Creative Intuition Neighborhood NAWBO Chair Connie Zimmerlich, ClickChick Photography Retention Services Chair Joan Laubach Your Wealth and Health Women’s Enterprise Foundation (ex-officio) Jill Workman Wicked Wicker, LLC

Index Index by Name

Emmert, Eric, 31

Knight, Martha, 46

Rickey, Anndee, 28

Bishop, Lynda, 41

Esau, Pearl Chang, 20

Kotter, John P., 27

Rider, Michelle, 31

Bitner, Mary Jo, 14

Fukuda, Nobuo, 40

Leavitt, Kim, 25

Scanzano, Lee, 14

Boyce, Quintin, 20

Fulton, Doug, 18

Marucci, Mike, 30

Schaus, Paul, 50

Brown, Michael, 20

Fulton, Ira A., 18

Marzofka, Cindy, 31

Simons, Ted, 12

Budinger, Donald V., 9

Goodwin, Patty, 16

Moffett, James, 12

Smith, William L,. Jr., 16

Church, Steve, 14

Gorbis, Marina, 27

Morrill, Andrew F., 10

Sommers, Cecily, 27

Cohen, Dan S., 27

Grossman, Joyce, 31

Nelson, Michael, 28

Sullivan, Tom, 14

Colburn, Ken, 31

Guerithault, Leevon, 28

Parasuraman, Parsu, 14

Toews, Julia, 20

Collins, Doug, 20

Guerithault, Vincent, 28

Paull, Adrian, 14

Ward, Jim, 25

Corry, Michael A., 20

Hayes-Wood, Katreena, 47

Petersen, Gloria, 42

Welsh, David, 31

Davis, Jim, 14

Huppenthal, John, 10

Poure, Stephanie, 46

Wheeler, Mark, 14

Dees, Rusty, 30

Jardine, Shawn, 14

Radosevich, Teri, 10

Wolden, Dorothy, 44

DeMaria, Michael, 28

Kidder, Lee A., 50

Renfro, Darcy, 25

Zollars, Bob, 14

Crescent Crown Distributing, 12

North Scottsdale

Surprise Regional

Index by Company 5 Arts Circle, 4

Data Doctors, 31

Abbott Diagnostics, 14

Diva Golf, 14

AJ’s Fine Foods, 40

Dorn Policy Group, 31

Alerus Bank & Trust, 15

Chamber of Commerce, 32 Northern Arizona Center for Entrepreneurship and Technology, 20

Chamber of Commerce, 33 Sustainable Economic Development Initiative, 20

DRA Communications, 27

Northern Arizona University, 20

TastingRoom.com, 39

Arbonne International, 46

Driver Provider, The, 19

Northern Arizona Workforce

Tempe Chamber of Commerce, 33

Arizona Association for

Economic Club of Phoenix, 32

Economic Development, 31

Training Center, 20

TQLA, 28

Expect More Arizona, 20

NUMBERSetc, 45

TriCaster, 20

Arizona Burn Foundation, 30

Forever Living Products, 30

Peoria Chamber of Commerce, 32

Tucson Regional

Arizona Commerce Authority, 20

FSW Funding, 7

PetSmart, 14

Arizona Department of Insurance, 12

Fulton Homes, 18

Phoenix Symphony, 25

United Healthcare, 5

Arizona Education Association, 10

GateWay Community College, 20

PinningRewards, 12

University of Miami, 14

Arizona Hispanic Chamber of Commerce, 32

Global Business Protocol, 43

Rodel Foundations, 9

Vincent on Camelback, 28

Arizona Horizon, 12

Greater Phoenix Black

Rodel, Inc., 9

Vocera, 14

Ryan House, 30

W. P. Carey School of Business, 14

Salt River Project, 11, 12, 31

Wells Fargo Securities, 20

Science Foundation Arizona, 25

Wells Fargo, 19

Scottsdale Area

West Valley Women, 33

Arizona Ombudsman, 12 Arizona Public Service, 20 Arizona Small Business Association, 32, 33 Arizona State Legislature, 12 Arizona Technology Council, 32 Arizona, State of, 10 Asking Formula, The, 36 ASU Preparatory Academy, 25 AT&T, 51 Avnet, 10, 13, 14 AZIGG, 33 B2B CFO, 38 BASIS Schools, Inc. , 20 BASIS Tucson North, 20 BBVA Compass Bank, 2 Bioscience High School, 20, 25 BroadcastAZ, 20

Chamber of Commerce, 32 Greater Phoenix Chamber of Commerce, 32 H. A. Mackey and Associates, 8 Harry & David, 39 Heirloom, 28 Helios Education Foundation, 25

Stearns Bank, 52

Infusionsoft, 15 Insight Mediation Group, L.L.C., 34 Johnson Controls, 20 JustGive.org, 39

Chandler Chamber of Commerce, 32 City Governments, 12 Coconino County Career Center, 20 Cox Business, 3 Cox Communications, 14 Creative Intuition, 45

inbusine ssmag.com

WESTMARC, 31, 33 Women of Scottsdale, 33 Women’s Financial Group, 46 Bold listings are advertisers supporting this issue of In Business Magazine.

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Kitchen 56, 28 League of Arizona Cities and Towns, 31 Lumber Liquidators, 14 M Catering by Michael’s, 28 Maricopa Community College, 17 Mesa Chamber of Commerce, 32

Central Phoenix Women, 32

Business Institute, 35

Honeywell, 14

Maricopa County Attorney’s Office, 8

Center for Services Leadership, The, 14

Scottsdale Community College Sinagua High School, 20

Career Services Network, L.L.C., 47 CCG Catalyst, 50

Chamber of Commerce, 32

Holmes Murphy, 4

Café Zupas, 40 Cassidy Turley Arizona, 29

Economic Opportunities, 31

Metro Tech High School, 25

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Mid-City Kitchen, 28 Mountain States Employers Council, 16 National Association of Women Business Owners, 32, 41 National Bank of Arizona, 46 National Restaurant Association, 28 NewTek, 20 NM Café, 40 Nobuo at Teeter House, 40

N o v e m b e r 2012

Roundtable

A Candid Forum

COMMERCIAL REAL ESTATE LOANS

Is it Time to Change Standards for Banking’s Assessment of Risk? Risk, for the banking industry, needs to go beyond federal regulation by RaeAnne Marsh Banks are the underpinning of commerce. One of their key roles — if not the key role — is to intermediate financial risk among individual businesses and broad sectors. Health of the banks, as recent events have underscored, is of vital concern to those outside the banking industry as well as those in it. The Dodd-Frank Act has been variously touted or maligned as an answer to that concern. A previous Roundtable (Nov. 2011) discussed some of the perhaps unintended negative consequences: Mike Thorell, CEO of Pinnacle Bank in Scottsdale, worries that the cost of compliance will force smaller banks into merging, leading to less competition. “You have to be of a certain size to withstand the weight of all the regulation.” Candace Wiest, president of West Valley National Bank in Now’sPhoenix, an excellent time to now purchase or commercial property. Kidder suggests tremendous benefit can be estimates that her bank spends “Asrefinance early as the 17th century, the distinction $10,000 per month on compliance, a cost she had already been drawn between judging With a Commercial Real Estate Loan from BBVA Compass, you’ll enjoy:derived from “scenario planning” — based fears will rise as Dodd-Frank regulations begin the risk of future events not only according on the creative element of imagining events to pour in. to the severity of harm they might cause, and scenarios that could be a possible result • Low fixed ratesa for the entire term but also according to the probability of their CCG Catalyst, Phoenix-based firm that of different combinations of “exposures and provides strategic guidance for banks, credit happening. The designers and champions of interactions across the many individual • No balloon payments unions, mortgage lenders, captive finance quantitative approaches to risk management players, transactions, institutions, cultures and • 80% LTV for owner-occupied property; up to 95% LTV with SBA financing companies and other organizations within the clearly took the logic of this distinction to behaviors that might be involved.” And there financial industry, suggests making a more an extreme, and focused most if not all their is technology available to help in this regard. Act now and save with these limited-time basic change to banking practices. “Despite attentionoffers: on only those future risks with a high Technology, he says, “now has the capability to new laws and regulations that require more probability of occurring. Potential outcomes move from ‘monitoring’ and ‘minimizing’ risk capital and prohibit risky financial practices, that may have presented disastrous results or events to ‘foreseeing’ and ‘preventing’ events • Up to $5,000 off closing costs on loans $1 million and up such capital rules simply impose penalties failure appear to have been dismissed as too based on sophisticated data analytics.” • Up to $1,000 closing costs under $1 million for when thingsoff go wrong as opposed to on loans unlikely to happen. Attention and resources Says Kidder, “More powerful data preventing risk events from recurring,” says were then centered on reducing volatility and management should be high on the priority list Paul Schaus, president of CCG Catalyst, noting improving financial performance in the ‘highfor banks, not only to permit better analytics Plus, you can trust the commercial lending experts at BBVA Compass to the company’s white paper “calls for banks to probability’ playing field, and maintaining and forecasting, but also in order to bring to makere-examine your loan experience simple easy. Offer expires December 31, risk and develop new models and and stability within the arbitrary boundaries. ” bear2012. improved timeliness, accuracy and access, approaches to manage it more effectively.” all of which will greatly improve banks’ risk Also, he says, “Collections of risk situations In CCG Catalyst’s white or paper, author visitand management effectiveness.” events create additional risk through For more information, toitsapply, any ofcanour 46 branches in Phoenix. Lee A. Kidder notes the banking industry still juxtaposition and interaction. … for the past CCG Catalyst ccg-catalyst.com equates risk management with compliance two decades bankers and risk managers have Pinnacle Bank pinnaclebankaz.com and those responsible for it an impediment tended to treat risk as a known quantity, and 1-800-COMPASS • bbvacompass.com West Valley National Bank wvnb.net to growth and profitability, and neglects have acted as if it can be analyzed, categorized to consider it in the broader context of and classified in some fixed pattern and ‘checked determining its strategic value — including off ’ with regulators. What we are realizing keeping the bank safer from financial disaster. instead is that risks are constantly coming and Application must be received between 09/20/2012 and 12/31/2012 and loan must be booked by 03/31/2013 to be eligible for this special offer. All loans subject to eligibility, Kidder points out that ignoring lowand remorphing into different collateral and underwriting requirements, and approval, includinggoing, creditmorphing approval. Special closing costs offer available for a limited time only on qualifying commercial real Visittoour Center on Finance. estate loan applications received booked within the specifiedpatterns offer dates. Up to $5,000 off closing costs on ”loans $1 million $5 Business million; upSolution to $1,000 off closing costs on probability events hasand been short-sighted. depending on local circumstances.

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loans under $1 million. Your actual closing costs discount may vary based on several factors. Offer applies to qualified types of owner-occupied commercial real estate and qualified borrowers. Offer not valid in conjunction with any other discount or offer. Customer is responsible for any closing costs and fees outside of any special promotions and reimbursement party costs if loan is paid off within 36 months of loan closing. All promotions and offers subject to change without notice. Please contact a 50 N o v eofm bany e rthird 2012 inbusine ssmag.com BBVA Compass banker for details. BBVA Compass is a trade name of Compass Bank, a member of the BBVA Group. Compass Bank, Member FDIC. #1027

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