December 2013 In Business Magazine by InMedia

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December 2013

www.inbusinessmag.com 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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D e c e m b e r 2013

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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DEDICATION IT GOES BOTH WAYS.

TPC SCOT TSDALE | JANUAR Y 27 - FEBRUARY 2, 2014 W M P H O E N I XO P E N . C O M

Contents

December 2013

What Happened to Going Green? Are Companies Saving and Is the Industry Booming? With case studies of leading companies in the Valley’s business community, Joe Bardin explores sustainability as a business driver and how much sustainability is really accomplishing when it comes to protecting our environment, combating global warming and producing profits. Departments

11 Guest Editor

Patricia Reiter, director of the Rob and Melani Walton Sustainability Solutions Initiatives, introduces the “Sustainability” issue.

Features

28 The Plus Side

12 Feedback

of Bankruptcy

Noted business and community leaders Robert Anderson, Bo Calbert and Bob Oldfather respond to IBM’s burning business question of the month.

Bankruptcy can be a growth strategy, and Kami M. Hoskins, Esq., explains how bankruptcy can allow a reorganized business to emerge stronger and better positioned to compete in the market.

14 Briefs

Business Education

34 Explode Sales with Targeted Online Marketing

Thomas Beyer concludes his three-part education series on Internet marketing with a look at using target marketing and low-cost lead generation to attract qualified leads.

41 Top Luxury

Top

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Real Estate Agents

Partner section

57 National Association

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Our picks for the best of the best in luxury home sales for 2014

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18 By the Numbers

Studies show the better a company’s customer experience strategy, the better its earnings.

Special Sections

49 Scottsdale Area

“Get Paid Fast & Comply,” “Employer Benefit with EBX,” “License to Do Business in AZ,” “Key Corner in Tempe Becomes Liberty Center,” “APS YouTube Channel for Business,” “Teens in Business Build iPhone Repairs Company,” “International Culinary Store Franchise Expands to Arizona” and “Equity Deduction Window Is Closing”

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20 Trickle Up

View from the top looks at how Lynne King Smith took a chance on role reversal and grew TicketForce into an industry force.

36 Assets

2014 Acura MDX Plus: Amenities worthy of the corner office

38 Power Lunch

Renegade Plus: Where to host the last-minute holiday party

66 Roundtable

Companies must weigh their response and retaliation under the whistleblowing protections of DoddFrank and the Affordable Care Act. On The Agenda

29 Books

31 Spotlight Events

30 Nonprofits

32 Calendar

New releases offer insights on bringing innovation into the business model.

Arizona Assistance in Health Care Thunderbirds

StartupConnect AZ Eggs & Issues: Innovation Nexus

Business events throughout the Valley

BO NEW

D e c e m b e r 2013

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December 2013 • Vol. 4, No. 12

Visit our Business Solution Centers to learn more about Business

Need Funding? Learn more by downloading this report on alternative lending at inbusinessmag.com/ business-solution-center For much more on areas of business, visit our Business Solution Centers on: Finance & Banking • Marketing Safety • Healthcare • Legal Commercial Real Estate • Small Business

Publisher Rick McCartney

Editor RaeAnne Marsh

Art Director Benjamin Little Contributing Writers Joe Bardin

Thomas Beyer Kami M. Hoskins, Esq. Mike Hunter Kristian Seemeyer Ron Wince Photographer-at-large Dan Vermillion Advertising

Operations Louise Ferrari

Business Development Chris Bowers Louise Ferrari Alex J. Goff

Brock Gorubec

Craig Jeffries Maria Mabek Sara May Katie Pacioni Kelly Richards Cami Shore 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 Financial Manager Donna C. Mitchell, CPA Office Manager Matthew D. Whitmire

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. 4, No. 12. 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. © 2013 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.

D e c e m b e r 2013

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Patricia Reiter, Director, Rob and Melani Walton Sustainability Solutions Initiatives

Guest Editor

Accelerating Green Business: Going further faster

Patricia Reiter’s work is currently focused on impact investing, social enterprise models and performance measurement for missiondriven enterprises. She directs the eight-program Walton Sustainability Solutions Initiatives, established with a $27.5 million investment by Rob and Melani Walton through the Walton Family Foundation in order to advance sustainability practice by educating future leaders, delivering solution sets and establishing global programs. Among its achievements in its first year of operation, the Initiatives programs engaged 300 faculty and 340 students and brought in revenue of $400,000, opened global sustainability solutions centers in the Netherlands and Hong Kong, and developed a new executive master’s program.

We’ve come a long way from just a couple of decades ago when “going green” was a choice companies or individuals made in spite of the cost involved. If you define sustainability as economic prosperity, environmental resilience and social justice — or, more simply, the future we want — businesses and organizations in Arizona are leading the way. Today, as businesses operating at any level in the global economy may face sustainability reporting requirements, retailers use sophisticated assessments to rank the relative sustainability of products they stock on their shelves. At the same time, investors, clients, customers and employees expect companies to be able to generate profit and drive the transition to a sustainable future. And we can never underestimate the importance of strong leadership from those who understand and are dedicated to their organization’s sustainability mission. At ASU we use our “small town” of 90,000 students, faculty and staff to demonstrate how to drive toward carbon neutrality and zero waste. The Walton Sustainability Solutions Initiatives works with businesses globally and locally to solve their sustainability challenges and promote best practice. Our Sustainability Solutions Services provide a vehicle to tap into the vast knowledge of ASU faculty and engage students to design, optimize and evaluate sustainability-related products, services or economic development clusters. We have working relationships with many of the companies featured in this issue and are committed to going further faster. And we are excited to be partnered with The Sustainability Consortium and GreenBiz Forum to produce the inaugural Sustainability Solution Festival, February 17-22, 2014, when Joel Makower will be releasing the State of Green Business report. The adoption and application of sustainability practices are being integrated across businesses just as they are here at ASU. For his cover story, “What Happened to Going Green? Are companies saving and is the industry booming?” Joe Bardin met with businesses in the green sector and others that have adopted sustainability in their company culture to learn how the “business of sustainability” impacts the bottom line — whether that bottom line means global environmental effect or company profits. This issue’s “Finance” article takes on the often distastefully regarded subject of bankruptcy. However, as attorney Kami Hoskins explains, bankruptcy offers a prime opportunity for a business to restructure and can be a tool to help grow future success. Another article provides information on online tactics a business can follow for traffic building or search engine marketing; this is the final installment of Thomas Beyer’s three-part “Business Education” series on Internet marketing. The “Roundtable” feature explores compliance issues and best practices for leadership to deal with issues of possible wrongdoing within a company. Also in this December issue is a special section spotlighting the Valley’s top luxury residential real estate agents and their high-end properties. I am always excited to see and share how sustainability permeates through so many areas of practice. I hope you enjoy this December issue of In Business Magazine and its timely, informative and broad range of topics important to those vested in business in our community.

Connect with us:

Sincerely,

Story Ideas/PR: editorial@inbusinessmag.com

Patricia Reiter Director, Rob and Melani Walton Sustainability Solutions Initiatives Global Institute of Sustainability, Arizona State University

Sustaining Us Fads come and go. There are many who have felt over the years that the “green initiative” is a fad or a low-impact issue that would never catch on. We asked the question, “What happened to going green?” because it seemed that many companies that focused on making this their business were seeing mild success. It turns out the initiative has sparked a way of doing business and is impacting the bottom

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line for businesses, from those invested in the industry to those businesses simply trying to do their part to conserve. As is evident in our cover story this month, green is certainly on a path to grow and even become the norm. We want to thank Patricia Reiter for leading this issue for us. Her knowledge and leadership position to drive sustainability solutions is recognized internationally and the

efforts through the Arizona State University Global Sustainability Initiative, of which the Rob and Melanie Walton Sustainability Solutions Initiatives is part, are making a difference for business and the environment. Arizona has become a hub for these initiatives and we are proud to writing about this issue. —Rick McCartney, Publisher

D e c e m b e r 2013

Feedback Executives Answer Valley Leaders Sound Off

The discussion of sustainability as a business issue spans practical and ideological considerations. Looking at “green” from the practical aspect of impact on business growth, what is it you’re doing that has had an immediate, notable effect on your business?

Robert Anderson CEO Prisma Sector: Marketing Services We began examining how we could integrate more sustainable business practices into our operations about 10 years ago. This includes using more energy-efficient lighting in our buildings, now totaling 145,000 square feet; consideration on electricity usage when purchasing new equipment; and replacing older vehicles with new, more fuel-efficient delivery trucks. We also look at the best routes for deliveries in order to reduce the time it takes to deliver product to customers, the gas consumption and the costs we incur. As a full-service marketing firm that includes commercial printing services, we use soy inks and print on recycled content whenever possible. To take this a step further, we implemented a companywide recycling program that has made a significant impact. On a monthly basis, we now recycle 283,000 pounds of material, including paper cardboard and aluminum. The result is a savings of $20,000 per month, which is substantial when you look at it over the course of a year. By expanding the program to our customers and employees, everyone is now thinking about how to reduce, recycle and reuse. Prisma prismagraphic.com

Robert Anderson is a third-generation Arizona native and a graduate of Northern Arizona University. Before purchasing Prisma in 2000, Anderson spent 15 years working for two large commercial printers. Since 2000, Anderson has led the company transition from a traditional, high-end boutique printer to an all-inclusive commercial print and direct marketing solutions provider. As the driving force behind Prisma, Anderson strives to meet the changing needs of the marketplace.

Bob Oldfather Founder and CEO Bookmans Entertainment Exchange Sector: Retail Our practice of sustainability is founded on and stems from our core business model: Reuse. Our business is based on the premise that many disposable goods are actually durable and have value. When someone sells their used goods to Bookmans, they receive “trade credit” to purchase other products from Bookmans, which markedly increases that value. This model creates huge advantages for the financial management of our business. Reduced cash cost for inventory and more flexible margin

D e c e m b e r 2013

Bo Calbert President McCarthy Building Companies Southwest Division Sector: Construction The emphasis on sustainability has had an impact on McCarthy in three key ways: direct market sector growth, lower operations costs to clients through energy-efficient technologies, and “green” job-site practices. Most directly, the evolution of solar power has brought exponential growth to our renewable energy division. Whether owners are adding solar panels to structures for more affordable energy, or communities are seeking to build utility-grade solar, McCarthy’s team of experts have been integral to developing this market sector in Arizona. Advancements in technology are producing highly energy-efficient mechanical and water systems, which our teams introduce and provide to clients. These systems run more efficiently, having a positive impact on operations costs in buildings, including schools and hospitals. Finally, McCarthy brings the added value of applying our “green construction” best practices to every project. We begin by setting the project’s “Green Goals,” which are focused on diverting waste from the landfill, use of local and recycled construction materials, providing on-site recycling and carpool parking. Clients value these practices, and respond favorably to the efforts. McCarthy Building Companies, Inc. mccarthy.com

As president, Calbert oversees construction operations across the region, including projects in Arizona, Nevada, Colorado and New Mexico. He also serves on the firm’s leadership team, focusing on expanding and developing markets. During his 27-year career with McCarthy, Calbert worked through the ranks in four McCarthy regions, and was named Southwest Division President in 2000. His experience spans industries, including healthcare, semiconductor, water/wastewater, hospitality, office and public projects.

control immediately spring to mind. It also has produced arguably the greatest bounce-back offer in the history of retail: Bookmans Trade Credit. All of this is true irrespective of the implications of this model for sustainability, yet the “green” value cannot be overstated. In its 35+ years of existence, Bookmans has saved millions of items from going into landfills. It is true that Bookmans strongly supports the social and ideological goals of what we hope is the “green revolution.” But for us, our business model — defined in its essence by sustainability — is the bedrock of our success. Bookmans Entertainment Exchange bookmans.com

Bob Oldfather just wanted a cool place to work. More than 30 years later, he and his team have built six stores in Arizona and created a unique culture of respect. In 2013, he opened Bookmans Sports Exchange in Tucson, Ariz., using the same philosophy but applying it to the world of sports, fitness and outdoor gear. Bookmans also supports the community through core values that include literacy, freedom of speech, animal welfare and the environment.

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Make a big career move without leaving Phoenix. Your next big move could be right here in Phoenix. At University of Phoenix, we shape our curriculum around the skills employers are actively seeking, so your studies can prepare you for a brighter future. Get started at our local campus and see how far you can go.

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University of Phoenix is accredited by The Higher Learning Commission and is a member of the North Central Association (ncahlc.org). The Universityâ&#x20AC;&#x2122;s Central Administration is located at 1625 W. Fountainhead Pkwy., Tempe, AZ 85282. Online Campus: 3157 E. Elwood St., Phoenix, AZ 85034. ÂŠ 2013 University of Phoenix, Inc. All rights reserved. | REG-02345

Briefs

Quick and to the Point

Bytes Get Paid Fast & Comply BillingTree, one of the leading on-demand payment processors, has launched its online to inform and educate businesses and organizations about the latest laws, regulations and guidelines and how they impact payment policies and procedures. mybillingtree.com/solutions/compliance-suite

Employer Benefit with EBX Recognizing its unique position to help employers understand the coming changes to the healthcare industry, Gilbert, Ariz.-based Employee Benefits Exchange Corp. (EBX) is offering a free consultation to educate employers on the requirements and responsibilities that will be effective on Jan. 1, 2014, going forward. During the consultation, EBX can help individual participants shop through the new healthcare.gov website. ebxaz.com

License to Do Business in AZ A Guide to Taxes for Arizona Business, an online

Major Construction Project Breaks Ground in Tempe

Six hundred thousand square feet of new office space is just the beginning for the Tempe project that will have its official groundbreaking this month at Rio Salado Parkway and Priest Road. At completion, Liberty Center at Rio Salado, being developed by Liberty Property Trust, will offer more than 1 million square feet of office, flex and light industrial space on the 100-acre site, which includes the northeast and northwest corners of the intersection. The infill site is in a choice location, and the City of Tempe’s economic development director, Donna Kennedy, says the project will bring employment at a major intersection — an important focus of the city’s planning. Director of Leasing and Development for Liberty Property Trust’s Arizona region, Megan Creecy-Herman, notes the proximity to ASU will allow Liberty Center tenants to draw from an educated labor pool and convenient access to all major freeway systems also makes it attractive for employment. Office buildings can house single tenants, or multiple tenants looking for 50,000 square feet or more. The first, 150,000 square feet, began construction in November and is expected to

publication, is designed to help Arizona businesses comply with the state’s basic tax and licensing requirements. In addition to describing the types of licenses and taxes that are applicable in Arizona, a few other agencies that impose taxes and require licensing are identified. Businesspeople can check compliance or use this guide to start their Arizona business right. azdor.gov/Business/LicensingGuide.aspx

Go online for more!

be completed by June 2014. A light industrial building will offer 210,000-220,000 square feet on the west end of the project, and John DiVall, senior vice president and city manager for the Arizona region of Liberty Property Trust, a publicly traded REIT with properties in 21 markets in the United States and United Kingdom, notes the area’s shortage of industrial space of more than 100,000 square feet has made demand for this type of product so great that the company is “looking into moving that into 2014.” For the office space, too, he says there has been “interest of a level that’s caused us to decide to go ahead with Building 2, which we’re planning on starting in January.” One-of-a-kind original art pieces to enhance the project are being commissioned for Liberty Center, one of which will highlight an amphitheater built against a levee along the Salt River embankment — an amenity tenants may use for such purposes as outdoor meetings or lunch. Other options for lunch are part of the second phase of the project, which will include restaurant, retail and hotel on the northeast corner Priest Road. —RaeAnne Marsh Liberty Center at Rio Salado libertycenteraz.com

Visualize This

Seeing Is Believing APS YouTube Channel for Business

As the Solana Generating Station goes

online, APS demonstrates the power of its new

Photos courtesy of Amerisleep

Compliance Suite™

renewable energy plant and produces several videos promoting it, demonstrating the power of renewable energy and educating business owners and others on the benefits of sustainability.

Visit our “Briefs” link online.

D e c e m b e r 2013

youtube.com/user/arizonapublicservice

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Briefs

Quick and to the Point

Teens in Business Build iPhone Repairs Company

Combining his expertise in marketing and hers in repairing electronic devices, teen entrepreneurs Alex Leiphart and Jessica Atkinson launched iPhone and iPad repair business Appleite in October. Having an idea for a business is not what sets them apart from other teens, they believe; the differentiator is knowing how to put the business together. Operating Appleite out of office space in Atkinson’s father’s business in the Desert Canyon Shopping Center in McDowell Mountain Ranch, Leiphart and Atkinson promoted the business heavily through Facebook, augmented with flyers at local community centers and word of mouth in and around the high school where Atkinson is a senior. They are working on developing cross-promotions with other businesses in the commercial center where they are located. With the nail salon, Leiphart says their pitch would be, “If their customer has a broken phone, she could drop the phone with us, and by the time her nails are done, the phone is fixed.” Appleite’s website reflects Leiphart’s understanding of their target market. It’s a clean, minimalist design because “Apple customers don’t junk up their phone with apps. They’re into sleek, modern design.” He incorporated color theory, choosing green as a main color to convey on a subtle level the idea of “new start” and that getting a broken phone fixed “feels new; better,” he explains. Leiphart and Atkinson hope they will serve as an example for other teens. “In talking to our peers, people have really good ideas; they just don’t know what to do with them,” says Leiphart, who is a year younger than Atkinson but graduated early from high school. “It’s exhilarating to be able to start our own business at such a young age. It opens up so many doors — learning about business, scholarships, experience.” —RaeAnne Marsh Appleite appleite.com

International Culinary Store Franchise Expands to Arizona

Less than a year after opening their first Arizona store of the international Oil & Vinegar franchise in Scottsdale, Jessica and Mike Winn opened their second in Chandler this past October. They relocated to the Valley two years ago after buying the franchise rights to the entire state — a decision based on their experience as owners of an Oil & Vinegar franchise in Spokane, Wash. “The No. 1 region we shipped to is here [in Arizona],” Mike says. They moved on their decision quickly because “we saw a growing interest in the Arizona market.” They anticipate opening at least five stores throughout the state in the next seven years, and Mike says they are getting positive interest from property owners. “It adds a different flavor to the assortment [of stores] they can offer consumers,” he says. The store answers what the Winns see as a growing consumer demand for “foodie” shops, and offers more than 400 products that range from rubs and dried herbs to honey, sauces and pasta, along with ceramics and cookware. There are 40-55 oils and vinegars on tap, with an assortment of bottle sizes and shapes customers can purchase to use and reuse. Prices are competitive as Oil & Vinegar buys directly from the producer, cutting out the middleman, notes Mike, adding that the direct-buy arrangement supports a lot of small, local estates such as a South African farmer who makes rubs and sauces from peppers and vegetables grown on his property. “It’s nice to be able to support individual, small, family operations,” Mike says, explaining that individual franchisees are on the lookout for high-quality new products they can bring to the attention of the corporate office. —RaeAnne Marsh Oil & Vinegar oilandvinegarusa.com

Tax Tip

Equity financing “is an active market,” says Michael Brown, president of Washington Federal’s Equipment Finance Division, headquartered in Phoenix, Ariz., which has experienced tremendous growth in the six years since the nearly-century-old institution added the product to its portfolio. And this month is ripe to see even more activity in this area in the final weeks before the expiration on December 31 of two business deductions. Under Section 179 of the U.S. Tax Code, a business can write off 100 percent of the cost of certain qualified assets — which includes new and used machinery, vehicles and office equipment — but they must be not only purchased but put into service during this calendar

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year. For asset purchases up to $2 million, the maximum deduction is $500,000; this will drop dramatically in 2014 to $25,000. The second deduction comes from an additional provision of Section 179 — a 50-percent bonus depreciation, with no cap on the amount. Businesses seeking equity financing can get a fast turn-around from the bank, Brown says, but notes, “The bigger challenge is getting the asset from the vendor [in time].” However, he emphasizes, “Any business that is trying to take advantage of these deductions prior to Dec. 31, 2013, should consult with their tax experts.” —RaeAnne Marsh Washington Federal washingtonfederal.com

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Photo courtesy of Oil & Vinegar

Equity Deduction Window Is Closing

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By the numbers

Metrics & Measurements

Customer Experience Has Market Impact The better a company’s customer experience strategy, the better its earnings by Ron Wince Research from Watermark Consulting and Forrester Research tracked the six-year stock performance of companies on Forrester’s Customer Experience Index. Even during the recession years of 2007-2012, customer experience leaders averaged double-digit gains in stock performance, besting customer experience laggards by an impressive margin. This is not a coincidence — the better a company’s customer experience strategy, the better its earnings. It’s that simple. TeleTech applied the same business concept of streamlining processes through more efficient and helpful customer experience to local governments in Arizona. TeleTech worked with the State of Arizona and with the local governments of Gilbert and Goodyear to develop better, more efficient, customer-friendly ways for local businesses to get the necessary documents they need to open new businesses, expand existing business and increase employment for Arizona, which has benefits that extend far past just the customer (which, in this case, was local business). Every company likes the idea of improving the customer experience. But when put up alongside other day-to-day business concerns, it often gets kicked down the road for a later time, which often never comes. A complete customer experience strategy can increase revenue generation through higher customer satisfaction and loyalty, reduce costs through lower churn, streamline product development and processes, and lessen

price sensitivity. However, discussing the benefits of a robust and wellexecuted customer experience strategy is not a problem; finding the time to execute is. Companies are hesitant to invest in programs without a guaranteed return, and many improvements in the customer experience take time. Small, quick-win programs are an option, but without enterprise-wide strategy and alignment, they won’t reach their true potential. That is why getting the boardroom to buy in requires a proven return on investment. “Lead in customer experience, lead in the world” is not a just catchphrase; it’s a roadmap to success. The traditional differentiators that have dominated business — price and innovation — have seen their clout severely diminished in recent years thanks to the instantly comparative information provided by the Internet. This means companies need a new differentiator, and, to the delight of customers everywhere, the way in which a customer interacts with a company’s brand — the customer experience — is emerging as the new standard of business competition. TeleTech teletech.com

Ron Wince is president of Customer Strategy at TeleTech, founded in 1982, a leading global provider of data-driven, technology-enabled services that put customer engagement at the core of business success.

Customer Experience Leaders Outperform the Market 6-year stock performance of customer experience leaders vs. laggards vs. S&P 500 (2007-2012) 50.0%

40.0%

30.0%

The 2012 American Express® Global Customer Service Barometer details consumers’ response to customer service issues, including their increased propensity to spread the word about their experience.

In this current economy, do you think that …? Customer Experience Leaders 43.0%

29%

Businesses pay less attention to providing good customer service

34% 2012 2011 2010 Significantly higher/lower than previous year at the 95% confidence level.

27%

Cumulative Total Return

20.0%

10.0%

S&P 500 Index 14.5%

Businesses have increased their focus on providing good customer service

0.0%

Considering a small independentlyowned business and large company that both provide excellent customer service — which type of company are you willing to spend more with?

32%

No Difference, 50%

32%

Willing to spend more with a small business, 41%

37%

-10.0% 32%

-20.0%

-30.0%

Customer Experience Laggards -33.9%

-40.0%

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26%

Willing to spend more with a large business, 9%

28%

Businesses’ attitudes toward customer service have not changed

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Trickle Up

A View from the Top

Lynne King Smith: Carving a Niche in Tickets She gives clients more than just a ticketing platform by Kristian Seemeyer Mesa-based TicketForce is a force to be reckoned with. In 2012, the privately-held company sold $52 million in tickets in the U.S. and Canada. TicketForce is a business-tobusiness company that facilitates the sale of event tickets nationwide and in Canada. Locally, some of TicketForce’s clients include the Herberger Theater, Tempe Center for the Arts, Firebird Raceway and Celebrity Theatre. They’ve come a long way, tells co-founder and CEO Lynne King Smith, from selling tickets out of the home she and her husband, Brad, shared in Mesa. “We had been leading this nonprofit and basically working out of the garage, and had gradually gotten more into ticket sales,” says King Smith, who at the time had a strong, working background in marketing “But I came home from work one day and they had set up an online store and they were selling tickets, and I knew it was the start of something big.” The online sales provided the impetus for the couple to take off on their own, separate from the nonprofit in 2002 and found TicketForce. Since its inception, the company has sold tickets in all 50 U.S. states. King Smith has been traveling for work nearly constantly, she says. “It’s just something that the business seems to require right now. This next week, I’ll be spending quite a few days in Hawaii meeting with an existing client and also with a prospective client.” Because King Smith believes strongly in engaging one-on-one with her clients, travel does require a large chunk of her time. Along with garnering new business, King Smith often meets new clients to help them get up and running within the TicketForce model. Other times she travels with some of her

15 team members to help manage the on-site ticketing needs for large fairs and festivals. “And I work all the time,” she says with a chuckle. “Even when I’m not working, my head is always churning — ideas, figures; it never quits.” In the very beginning, the company’s most immediate struggles were related to cash flow. “It was all about finding the funding — through friends, loans; not all at the same time. But cash flow problems can put a lot of internal struggle on you,” she says. TicketForce came through its cash crunch with a series of creative and strategic loans, doubling its revenue every year the first five years with private funding and by offering cutting-edge ticketing software and following it up with superior customer care. When TicketForce came into the marketplace 10 years ago, online ticket sales were not the commonplace medium they are today. Through specialized software, TicketForce was able to offer client services at a lower fee per ticket than its competitors, giving them an edge in the market. Combining that with a high level of customer support in the form of marketing is what gave TicketForce a true edge over the competition. By offering marketing tools to their client base of thousands of venues, TicketForce ensures that its clients can utilize social media to its apex to obtain the greatest exposure for their events. It is King Smith’s background in marketing that took the company in this direction and gave it an edge over leading competitors. And to that end, one of the company’s main means of exposure over the years has been trade shows, a place where venues, ticketing

The Force Is with Them ■■ The genesis of TicketForce was a

■■

nonprofit called U-Force, created by Lynne King Smith and husband Brad Smith. They worked out of their Mesa garage building a network of training and conferences for junior high and high school students. King Smith’s expertise in marketing has enabled TicketForce to include among its client offerings free monthly consulting, webinars and LinkedIn

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■■ ■■

discussions to help them save money and optimize ticket sales. The family business has at times extended beyond the husband and wife team to include their three daughters and extended family. Currently, 15 employees serve more than 3,000 clients. In 2012, Lynne King Smith led TicketForce in creating more than $20 million in ticketing revenue.

companies, food vendors, “everything you could ever imagine that would be eventrelated,” says King Smith, come together under one roof to exchange ideas, participate in workshops and forge business partnerships. King Smith plays a pivotal role in these conferences held across the United States. With a degree in marketing, she’s taken the lead by teaching marketing and PR seminars at the conferences, coaching venue personnel on optimizing social media, blog operations and creating loyalty programs, a particularly valuable tool for venues to assure repeat customers and a devoted client base. For her depth of knowledge in the field, King Smith is often chosen to sit on panels and discussion forums at these massive conferences, an opportunity she particularly enjoys. Initially, Brad Smith functioned as the chief executive officer, while Lynne King Smith held the position of chief operating officer. But despite the business’ steady growth, sometimes things “just don’t feel right,” relates King Smith. So in 2010, King Smith and Smith changed executive positions, leaving her leading the company. “It was a big struggle,” she says. “It was a different dynamic for us. Things would come up that I wanted to do differently and he had to relinquish the final say. It was tough. There was some friction in the beginning that made it really rough. I cut $80,000 from the trade show budget that year and he was not happy about that.” Since 2010, the company has experienced tremendous growth in the U.S. and Canada. Says King Smith, “We made it through 2010 with no cuts in jobs or employees. And overall, through our business model, our practices, we’ve proven we can save our clients money in hard times.” inbusine ssmag.com

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What Happened to Going Green? Are Companies Saving and Is the Industry Booming? Going green has been touted as a means to economic and environmental improvement and a burgeoning business sector, but how does it work as a business driver? by Joe Bardin

were overwhelmed at the costs involved, so we said, ‘Let’s do what we can, when we can.’” It’s perfectly good advice for business but may be bad news for the environment, and therein lies the dilemma. How can business be true to its bottom line, and aggressively combat climate change and the further degradation of our environment? “Right now it’s a want to, rather than a need to,” says Reynolds Byers, who teaches in the Supply Chain Management Department at the W. P. Carey School of Business at ASU, “so there’s a lot of wheel-spinning that goes on. Companies create their corporate social responsibility office and send out memos and reports, and it’s all very symbolic.” In the last decade, the best thing that happened to our world environmentally was also the worse thing economically — the Great Recession. The resulting slump in manufacturing reduced the growth in damaging carbon emission. But in the long term, the recession also blocked any political progress that might have been made on related issues, including major investment in

Salt River Project maintains a fleet of electric cars for its employees

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alternative energies and major legislation to curtail climate-changing activities. Obviously, recession is no long-term fix for our environment, and, as economic indicators generally trend upward, so too does the generation of carbon emissions and other toxic threats. If goodwill gestures are symbolically significant but practically insufficient, then clearly the real answer lies at the intersection of growth and sustainability. “When you turn sustainability into a market opportunity, that changes the conversation,” says Byers.

Recycling, Obsolescence and Opportunity An example of sustainability as a business driver is the move by Avnet, the electronics distributor, into device refurbishment and recycling. Since November 2011, Avnet has acquired five companies that provide lifecycle services, such as recycling, repair and refurbishment in both the U.S. and internationally. Traditionally, Avnet has been primarily concerned with initiating the product lifecycle — that is, selling goods to end-users. But recently, it has changed its strategy to account for the entire life cycle, including sales, support and recycling, according to Tony Vottima, senior vice president and general manager of Avnet Services in the Americas. “There is money in recycling,” says Vottima, “but there are also other business opportunities that come with it. Recycling expands Avnet’s customer base, into areas like cable and telecom. We also have the opportunity to backfill with new equipment rounding out the supply chain.” Its customers have traditionally included major OEMs (original equipment manufacturers) who lease products and then take them back, as well as the end-users who purchase products outright. By servicing the end of the product lifecycle through recycling, Avnet positions itself to sell new product and start the cycle all over again. “This is the holy grail of the supply chain — closing the loop on the product lifecycle,” says Byers, “but it takes resources to do it.” There are several revenue channels within the Avnet Refurbishment Program. Some

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Photo courtesy of Salt River Project

Green is good, we all agree. That is, it’s better as a business to be more resource efficient, less polluting, and generally more thoughtful about our impact on the environment. But how much is all this green goodwill really accomplishing when it comes to protecting our environment, combating global warming and, yes, producing profits? The Phoenix Suns have been fairly good corporate citizens. In recent years, the Suns replaced all office and parking garage lighting with energy-efficient lighting, and they installed a 966-panel solar structure, which produces roughly 378,000 kilowatt-hours per year. This is enough energy to power 20 Suns home games each season. That’s great, but as basketball fans know, this is only about half the home games. Yet even this limited gesture toward sustainability was a challenge to pull off. The Phoenix Suns’ senior vice president and general manager of Sports & Entertainment Services & Ticket Operations, Ralph Marchetta, says, “When we first started looking at becoming more sustainable, we

devices are repaired for resale to customers who don’t require state-of-the-art equipment. Further revenue is gained through the resale of parts that retain some market value, such as disc drives. Other materials are melted or otherwise broken down for sale as scrap. In all, the Avnet Refurbishment Program has kept approximately 252,000 pounds, or 126 tons, of electronic waste from entering landfills over the past three years. One of the main Avnet facilities involved in this program is Avnet Global Solutions Center, in Chandler. Two trends make the timing for Avnet’s expansion in recycling particularly compelling, according to Vottima. The first is the increased rate of obsolescence in electronics. Yesterday’s gadget is becoming today’s garbage more rapidly than ever before. The second factor is cloud computing, which is enabling companies to shrink or eliminate data centers, leaving a lot of excess gear “sitting around taking up space.” Says Vottima, “The opportunity is growing, and the fact that Avnet can scale will help accelerate it.” Another way to put it is, when the big boys play, that’s when the game changes.

Small Business Sustainability Models Small businesses are building models around sustainability as well. Clean Air Cab is a Phoenix company with a 100-percent hybrid fleet of 52 Toyota Prius cars. Four years ago, Steve Lopez and his wife, Ginger, were considering a range of sustainability-based businesses, from manufacturing to travel. They were open to many ideas as long as the model was driven by sustainability at its core. At the time, Steve was studying to become a pilot, but previously had raced cars professionally and always felt comfortable around automobiles, which influenced their decision. They started Clean Air Cab with 10 cars four years ago. The business advantage was clear. The Prius requires half the fuel of a conventional automobile. Clean Air Cab’s drivers are independent contractors, and they pay for their lease and their gas. Paying half for their gas makes them want to drive for Clean Air Cab. At the moment, 102 are choosing to do so. “I’m gaining all the way around,” says

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One of several solar installations at Arizona State University, at Walter Cronkite School in Downtown Phoenix

Lopez. “The only sacrifice is the size of the car. Other companies can offer bigger cars, but other than that I’m way ahead.” Lopez also believes he is getting a boost from the marketplace for being a sustainable business, from riders who would rather go green as well, but can only guess at how much. “It’s certainly not hurting us any,” he says. Clean Air Cab employs a Toyota-certified technician whose job is to keep the hybrids running at optimum performance. This is expected to considerably extend their road life, to 500,000 miles and as high as 700,000 miles. These numbers sound improbably high to a novice, but the fleet is at 300,000 miles now and going strong. Simply keeping these hybrids on the road that long is a form of recycling itself, insofar as the cars provide much more service before they will need to be junked and replaced.

Not-for-Profits Profiting Through Sustainability Not-for-profits are leveraging sustainability as a key driver as well. Arizona State University is a case in point. The school already boasts the largest solar array of any university in the country, according to Associate Vice President of University Business Services and Sustainability Operations Officer John Riley, generating 22.4 megawatts of power, or 30 percent of the university’s total daytime demands. ASU has also installed a natural gas heat and power plant on campus, possesses 36 LEED Certified buildings and has extensive recycling programs in place.

One could argue that this is simply good citizenship being practiced by a major public institution, but, in fact, it’s also good business. Many key constituencies of ASU care deeply about sustainability, including students, faculty and upper management. “The support is both top down and bottom up,” says Riley, noting that is a key to successfully deploying such programs. According to Riley, there are now 147 degree-granting programs in sustainability nationwide, so the field is a competitive one. By becoming a model of sustainability itself, ASU positions itself at the front of the pack, supporting its own School of Sustainability, the Global Institute of Sustainability and the Walton Sustainability Solutions Initiatives. In effect, being a leader in solar power and other sustainability policies is a significant asset of the University’s brand. Seen in this light, ASU’s aggressive goal of being carbon neutral by 2035 is also a wellreasoned strategy from which the University can expect to gain significantly. To achieve its goal would require eliminating or offsetting emissions of 420,000 metric tons of carbon dioxide annually, which it currently produces. The target is so ambitious, as Riley, points out, “many of the technologies we will need to do this haven’t even been invented yet.” But for ASU, which also touts itself as a major research university, it makes sense to bet on innovation. It may generate some of the solutions inhouse as well as serving as an early adopter of solutions developed elsewhere, further enhancing its standing as an innovator.

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The Energy to Do Better While it’s in the interest of every organization large and small to help address climate change and environmental protection, clearly some are expected to do more than others. Among these are energy companies, like SRP, whose product lies at the heart of the matter. Burning fossil fuels is a leading contributor to carbon dioxide emissions and, therefore, to global warming. SRP is working toward a goal of relying on 20 percent renewable energy by 2020, according to John Hetrick, manager of Sustainability Policies and Programs. To that

end, it is developing hydro, geothermal, wind, solar and landfill gas alternatives. Hetrick says they “all are promising, and directly contributing to our goal.” Still, it remains to be seen which of these will prove to be practical replacements for the carbon-emitting coal, which many of its plants burn. Another way to contribute to this goal is simply to become more energy efficient in general, in order to consume less in the way of non-renewable energy. SRP offers rebates and discounts to consumers who take steps to improve efficiency and is increasing education to customers about water management. At the same time, SRP is now engaging employees more intensively, too. This includes preferred parking for car-poolers, bus passes to encourage the use of public transportation, and bicycles employees can ride between buildings. SRP also maintains a fleet of electric cars. These reduce emissions, of course, but they also serve as a kind of controlled experiment to “help us better understand how electric cars fit in to a business, what infrastructure they require to be effective,” says Hetrick. SRP invites employees to drive the e-cars simply to get more comfortable with them.

One of several solar installations at Arizona State University, on Universtiy Dr. and Rural Rd.

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To date, about 200 employees have taken the company up on the offer. Clearly a number that won’t change the world any time soon, but it’s a start in educating people about this alternative.

Big Answers for a Growing Problem If one considers that global warming is on the increase and consumer behavior is trending toward being more wasteful, not less so, then the claim of “making a difference” in regard to the environment requires increasingly ambitious goals to match. This is the view of Henkel, the international consumer products giant whose North American headquarters is based in Scottsdale, according to its Senior Research Fellow for Sustainability, Pete He. He says Henkel’s new strategy is to improve its environmental efficiency by a factor of three by 2030. “We want to triple the value we create for the footprint made by our operations, products and services,” he says. The only way to achieve this, He observes, is to make sustainability a business driver. One benchmark is to increase sales 10 percent net sale per production unit by 2015 through sustainability. “Using less to deliver more is good for consumers and the environment,” says He, “and eventually it should be good for business.” As the use of “eventually” implies, patience is a key component of this strategy. That’s because within the lifecycle of consumer products, the single greatest factor in sustainability, according to He, isn’t how they are manufactured, or even how they are disposed of; it’s how consumers use them. For example, if users of Dial hand wash would simply lather their hands with the product before turning on the water, they would save millions of gallons on an on-going basis. Similarly, Henkel’s Purex brand of detergent is already advanced enough to work in room temperature water, but most consumers don’t believe that. If they would simply turn their temperature knob to cold water, the environmental implications would be massive. So Henkel is seeking to partner with stores and appliance makers to change the perception that cold means not clean. This would help increase sales while saving a lot of energy. inbusine ssmag.com

An interesting twist on nonprofits leveraging sustainability for growth is Cox Charities, the charitable arm of Cox Communications, which raises money through its internal sustainability program. Cox Arizona provides employees with convenient recycling options, to divert waste from landfills and reduce waste disposal costs. All recycling revenue directly benefits Cox Charities. This double dose of do-gooding has helped support organizations like American Red Cross, Phoenix Theater and Teen Addiction Anonymous, while, of course, contributing to a slightly greener world.

“Sometimes it takes a village to move the mountain,” says He. Henkel is also marketing products that offer greater green benefits. Henkel introduced a green bottle version of Purex (normally sold in a blue bottle), which is 95-percent naturally sourced using biodegradable ingredients, twice as concentrated requiring 53 percent less packaging, and includes no unnecessary dyes. He says it is the leader in its segment. “We have a long way to go, but we are encouraged.” But Henkel, like any company, can go only so far within its own supply chain. Ultimately, it is industry-wide change that will deliver the greatest real environmental impact. Environmentally friendly industry norms are required to enable major manufacturers to follow more sustainable practices without paying a price in the marketplace. Henkel is a founding member of the Sustainability Consortium, whose members include more than 100 of the largest consumer manufacturers from around the world. They are working on building consensus for sciencebased sustainability best practices for each category of retail product. One critical issue they are addressing is over-packaging, in order to minimize resources expended on packaging without hurting the shelf performance of any one particular brand. The Sustainability Consortium developed the Walmart Sustainability Index, which provides members like Coke, General Mills, Unilever and others a framework within which to assess and rank the sustainability performance of their supply chains. When the big boys play together, the game can change even more. It could lead to businesses establishing standards for sustainability that transform industries, rather than simply polishing their own public images. Especially if they can make money while they are at it. Arizona State University sustainability.asu.edu

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Avnet ats.avnet.com Clean Air Cab cleanaircab.com Cox Charities bitly.com/coxcharities Henkel henkelna.com Phoenix Suns suns.com Salt River Project srpnet.com

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D e c e m b e r 2013

Finance

Fundamentals of Funding

The Plus Side of Bankruptcy Bankruptcy can be a growth strategy by Kami M. Hoskins, Esq. Although some people think bankruptcy is a death knell for businesses, it is actually a vital part of our economic system. Bankruptcy can allow a reorganized business to emerge stronger and better positioned to compete in the market. In fact, at its core, bankruptcy rewards entrepreneurship. Bankruptcy provides a safety net for businesses, which face economic challenges, to restructure their debts or even wind down the company in an orderly fashion. In this way, bankruptcy rewards innovation and creativity in the market. As discussed below, Chapter 7 and Chapter 11 bankruptcy can be helpful strategies for distressed companies.

Chapter 7 for Businesses Businesses contemplate filing for bankruptcy for many reasons, and the various chapters under the Bankruptcy Code can help a business accomplish its objectives. In some circumstances, a business may face such severe financial challenges that it decides to close its doors. In these cases, a Chapter 7 bankruptcy allows the liquidation of the business and payments to its creditors in an orderly manner. This orderly liquidation process alleviates the pressures the company faces in juggling the competing demands of multiple creditors. In Chapter 7, the business ceases operating, and a trustee is appointed to liquidate the business’s assets and make payments to the business’s legitimate creditors. The Chapter 7 trustee plays a vital role in administering the bankruptcy case. The Chapter 7 trustee identifies assets to liquidate or sell. These assets could include recovering transfers (or payments) the company made to creditors in the months before it filed for bankruptcy. A basic rule under the Bankruptcy Code is that similarly situated creditors must be treated the same, and one should not be preferred over another. The trustee may unwind some of these pre-bankruptcy payments to ensure similarly situated creditors are treated equitably in the bankruptcy case. If the trustee is successful at identifying and liquidating assets, it then makes payments to the debtor’s creditors.

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After fulfilling its duties as a debtor under Chapter 7, the business sheds its prebankruptcy debts. Although the company is no longer operating, its owners can seek new opportunities. It is this process that allows entrepreneurs a “fresh start” to pursue other business ventures.

Chapter 11 for Businesses A company may have other objectives for filing bankruptcy that do not include closing its doors. For example, a company may need to restructure loan payments or rework existing leases to adjust to market changes. In Chapter 11, the company continues to operate its business while it works to restructure its debts. In these cases, a Chapter 11 bankruptcy gives the business a breathing spell to negotiate more favorable contract terms. When a company files its bankruptcy petition under either bankruptcy chapter, the automatic stay of the Bankruptcy Code arises, and parties can no longer take action against the debtor company without an order from bankruptcy court lifting the automatic stay. This automatic stay is designed to give the company time to determine a plan of reorganization without the

pressure of pending debt collection activity. Any steps taken in violation of the automatic stay are considered “void” or “voidable,” and sanctions may be available against creditors that willfully violate the stay. Bankruptcy can also be a useful tool for a company to manage difficult litigation that threatens the company’s operations. High legal bills and lengthy lawsuits can take their toll on a company. It is not uncommon for a debtor’s largest creditors to be the very same parties who were fighting the company in the courtroom prior to the bankruptcy. When managed correctly, bankruptcy may assist a company in resolving its difficult legal issues. Under Chapter 11 protection, the debtor company focuses on negotiating payment plans with its creditors. Often, the company will locate an outside financing source to pay off existing lenders on more favorable terms. The company can also determine whether or not to close certain store locations, reject cumbersome contracts or leases, adjust existing equity interests, sell business lines or reassign management duties. Bankruptcy debtors under Chapter 11 also can market and sell their assets, but usually inbusine ssmag.com

Books only with bankruptcy court approval. In fact, through bankruptcy, a company can rework its corporate structure by “rolling up” subsidiaries or through mergers and acquisitions. Additionally, the debtor can work with taxing authorities to structure payment plans. Like under Chapter 7, once a Chapter 11 debtor completes its duties, including payments to creditors under the reorganization plan, it receives a fresh start. Ideally, the company emerges leaner and more nimble.

Examples of Corporate Reorganizations Some examples of national Chapter 11 reorganizations include Blockbuster and Kodak. Bashas’ is among the local businesses, both large and small, which have benefitted from bankruptcy. Often, bankruptcy trends are dictated by market forces such as changes in technology, laws and regulations, or industry. In Arizona, we are seeing an increase in bankruptcy cases in the healthcare industry. The recent changes in healthcare laws have forced some healthcare companies to reevaluate and restructure their business models through Chapter 11. In one recent case, a local company faced significant exposure in multiple lawsuits with various creditors, and filed bankruptcy to manage the litigation and complete a possible sale of the company. The company was the majority interest holder and managing member of multiple subsidiaries that did not file bankruptcy. Those subsidiaries owed significant amounts to secured creditors, repayment of which the parent company had guaranteed. Through the Chapter 11 plan of reorganization, the company was able to negotiate settlements with its pre-bankruptcy litigation opponents as well as the subsidiaries’ secured creditors. The plan of reorganization also allowed the company and its subsidiaries to determine the future corporate structure outside of bankruptcy. A business owner contemplating whether bankruptcy is a good option for his or her company should talk to an attorney — the earlier, the better, in most cases. There are many issues that must be addressed before a company files for Chapter 11 bankruptcy protection, including paying employees, creating new bank accounts, maintaining relationships with critical vendors, ensuring the lights stay on, and starting dialogs with creditors. A skilled bankruptcy attorney can assist in navigating these complex issues. Despite the common myth that bankruptcy always means “going out of business,” bankruptcy also can be a good way for companies to adjust to market demands. Effective Chapter 11 reorganizations help companies streamline their business models and exit bankruptcy better prepared to succeed. In the event a business must go out of business, Chapter 7 bankruptcy provides an orderly liquidation process that allows business owners to move through bankruptcy and seek new opportunities. Either way, bankruptcy can be a growth strategy. Jennings, Strouss & Salmon, LLC jsslaw.com

Kami M. Hoskins is an attorney with Jennings, Strouss & Salmon, P.L.C. focusing her practice on bankruptcy, commercial litigation, and labor and employment. Hoskins represents corporate, small business and individual clients by implementing effective resolutions to complex legal issues. Each case a business or individual may face is unique and may require legal advice. This article does not constitute, and should not be considered, legal advice. Individuals are urged to consult with an attorney on their own specific legal matters.

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Reinventing Your Business

Big Bang Disruption: Strategy in the Age of Devastating Innovation Free navigation apps on smartphones wreaked havoc for the makers of stand-alone GPS devices. Airbnb and other resource-sharing services are undermining hotels. Uber, SideCar and Lyft are reinventing the heavily regulated taxi and limousine industry. These are just a few of hundreds of examples of Big Bang Disruptions — new products and services that enter the market better and cheaper than established products, seemingly overnight. Big Bang Disruption presents a radical new framework for this phenomenon. The authors detail the four stages of big bang innovation and show leaders how to see disruptions headed their way — and take action before it’s too late. Larry Downes and Paul Nunes $29.95 • Portfolio Hardcover • January 2014

Quick and Nimble: Lessons from Leading CEOs on How to Create a Culture of Innovation Adam Bryant draws on interviews with more than 200 CEOs to offer business leaders the wisdom and guidance to move an organization faster, to be quick and nimble, and to rekindle the whatever-it-takes collective spark of a start-up, all with the goal of innovating and thriving in a relentlessly challenging global economy. By analyzing the lessons that these leaders have shared in his regular “Corner Office” feature in The New York Times, Bryant has identified the biggest drivers of corporate culture. As the world shifts to more of a knowledge economy, the winners will be companies that can attract and retain the best and brightest employees by creating an environment where they can grow, contribute and feel rewarded. Adam Bryant $26 • Henry Holt & Company, Inc. • January 2014

The New Corporate Facts of Life: Rethink Your Business to Transform Today’s Challenges Into Tomorrow’s Profits Still myopically chasing quarterly profits, producing the same product in the same way, issuing directives to increasingly disengaged employees? Too many organizations cling to outdated models and practices. But they won’t be able to hang on much longer. The old rules of business are being rendered obsolete by disruptive innovation, economic instability, environmental degradation, increasing stakeholder power and other sweeping global forces. Forward-thinking organizations, from global giants and the latest start-ups, view these as tailwinds propelling them into profitable markets. These bold leaders move beyond today’s best practices to develop tomorrow’s next practices. Diana Rivenburgh $27 • AMACOM • On shelves and online

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NonProfit

by RaeAnne Marsh

Actions to build Community

AZ Assistance in Health Care: A Helping Hand with Cancer’s Toll Snapshot

Arizona Assistance in Health Care is turning New Year’s Eve revelry into a special opportunity to help cancer-stricken families overwhelmed with medical bills. A Night of a Thousand Wishes — Arabian Nights New Year’s Eve Gala, at the Scottsdale Resort and Conference Center, will start with the Bazaar Lounge for the cocktail hour outside before moving inside for dinner, a live auction, and dancing to a live band. With brightly colored decorations, “It will be like Aladdin walking through the downtown city,” observes Meredith McGuire, president of the organization, who says additional entertainment now being finalized will further enhance the Arabian Nights experience. This is the second year the organization has made its fundraiser a New Year’s Eve gala, and McGuire says the event brings in a lot more donors. Last year’s sell-out crowd was 500, and the organization expects 500-600 this year, toward the goal of raising $375,000. And there’s an extra enticement: The gala includes a Kid Zone where kids from about three years old on up can enjoy video games, dress up, movies, food and even a live DJ, all under the supervision of professional staff. “On New Year’s Eve, it’s hard for people to find babysitters,” McGuire explains the impetus for the program. Arizona Assistance in Health Care arizonaassistanceinhealthcare.com

■■ Assistance in Health

■■ ■■

■■

Care was founded in 1983 to assist cancer patients and their family with non-medical expenses — such as rent, gas, utilities and food — when the cost of medical care creates financial hardship. The Arizona chapter was founded in 2008. AAHC distributes grants of $250 to families of patients who are receiving active care. The organization is supported by fundraisers, donations and grants. Cancer Treatment Centers of America at Western Regional Medical Center covers administrative costs “so we can operate with no cost,” says Meredith McGuire, president of AAHC, but patients seeking help come from throughout the Valley and only about 25 percent are CTCA patients. AAHC is an all-volunteer organization. Volunteers include those who serve on the board of directors and those who help plan and produce the various fundraising activities.

Snapshot

■■ The Thunderbirds awards grants of $500 and more to charities throughout Arizona. ■■ The primary source of revenue is package and ticket sales. ■■ The Thunderbirds also plays a large role in the promotion of golf ■■

and amateur athletics, such as helping organize and run Junior Golf Association events and helping with the Special Olympics. Members volunteer “as many hours as are needed,” says Big Chief Tom Altieri — sometimes as much as 50-80 hours per week. “Life Members remain incredibly active,” Altieri says. Life Members currently number 270.

Last year’s Waste Management Phoenix Open enabled the Thunderbirds to give more than $5.5 million to Arizona charities. The venerable organization was founded in 1937 as part of the Phoenix Chamber of Commerce to help promote tourism to the area. A committee of five was formed, and each brought on board another 10, and the resulting size of 55 active members remains constant to this day. Members “retire” to Life Membership on their 45th birthday, opening up a membership spot for someone new. It was Bob Goldwater, Sr., an active Valley businessman and an avid golfer (brother of Sen. Barry Goldwater), who suggested a golf tournament as the special event. A successful effort, the Phoenix Open became a signature event for the area and has raised more than $86.1 million for charities over its 76-year history. Now the Waste Management Phoenix Open, it boasts a title sponsorship that raises the event’s fundraising level; since 2003, when the tournament first brought in a title sponsor, it has raised more than $60.3 million. The Open has been embraced as a community event, and was recognized by the PGA Tour with the “Most Engaged Community Award” in 2012, but its fundraising purpose remains strong. In planning and organizing the event, “we are driven by, ‘How can we increase the amount we give to charity?’” says Tom Altieri, Big Chief of the Thunderbirds. Thunderbirds wmphoenixopen.com

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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Photos courtesy of AZ Assistance in Health Care (top), Thunderbirds/TODD Photographic (bottom)

Thunderbirds: ‘Open’ for Supporting Arizona Charities

by Mike Hunter

www.inbusinessmag.com

December 2013

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 Chamber of Commerce and Industry

Eggs & Issues: Innovation Nexus Tues., Dec. 17 — 7:30a – 9:00a The Eggs & Issues breakfasts presented by the Arizona Chamber of Commerce and Industry are an opportunity to explore topics that impact the business community. The December 17 breakfast meeting, at the Hyatt Regency Downtown Phoenix, delves into the common issue of innovation among three of today’s hottest topics: education, healthcare and technology. Discussing innovation in these areas will be Michael Crow, Ph.D., of ASU; Wyatt W. Decker, M.D., of the Mayo Clinic; and Sandra Watson of the Arizona Commerce Authority. The discussion will be moderated by Glenn Hamer, president and CEO of the Arizona Chamber of Commerce and Industry. Dr. Crow has held the position of president of Arizona State University since 2002, and is guiding the university’s transformation into one of the nation’s leading public metropolitan research universities. Dr. Decker assumed the position of CEO of Mayo Clinic in Arizona in July 2011. Among the numerous honors he has received are the Mayo Clinic Excellence in Leadership Award in 2007 and, recently, the Heroes of Emergency Medicine Award from the American College of Emergency Physicians. Sandra Watson brings more than 20 years of economic development leadership and experience to her position as president and CEO of the Arizona Commerce Authority. She and her teams have successfully attracted to Arizona hundreds of companies that have invested billions of dollars in capital and created more than 75,000 quality jobs. Registration for Chamber members is $40; for non-members, $55.

Photo courtesy of Jay Mark

Arizona Chamber of Commerce and Industry azchamber.com

Arizona Technology Council

StartupConnect AZ Wed., Dec. 18 — 8:00a – 5:00p StartupConnect AZ will be the first-ever conference organized expressly to connect technology start-ups with the state’s corporations and funding ecosystems. The full-day event will be held Dec. 18 at the Cronkite Building at ASU’s School of Journalism and Mass Communications in Downtown Phoenix. “Arizona’s technology ecosystem has been dramatically transforming over the last five years,” says Steven Zylstra, president and CEO of the Arizona Technology Council. “Venture capital, angel groups, start-up incubators, university technology transfer programs, service providers and government institutions are all coming together to build one of the most active technology communities in the country. The Council is proud to play a role in building the cohesiveness of the industry with education and networking opportunities such as StartupConnect AZ.” The day’s program will focus on the four key vertical markets that are growing fastest statewide. These are education technology and STEM, health technology, clean and green technology, and e-commerce and SaaS (software as a service). Centered on these markets, the conference will feature a full day of education and networking with Arizona’s leaders in technology, entrepreneurship, business, education and public policy to discuss topics that are critical to the continued growth of Arizona’s economy. “This conference is an ideal way to create interaction between Arizona’s corporate leaders and the start-ups, innovators and technology hubs where innovation is happening,” says Phoenix Councilman Daniel Valenzuela, who will be participating as a moderator for the conference’s panel on public policy and STEM. “It’s important that we all work together to create the type of jobs we need to continue to drive Arizona’s economic activity and strengthen its ability to compete in a global economy.” Impetus for the conference comes from the Arizona Technology Council’s Startup and Entrepreneurship Committee, building on the idea underlying its well-received Corporate Connect program: facilitating the connection of Tech Council’s premiere corporate members and partners with relevant technology start-ups throughout the state. Registration is $35 for Arizona Technology Council members; $55 for nonmembers. Arizona Technology Council aztechcouncil.org

Notable Dates This Month Sat., Dec. 7

Pearl Harbor Day

Tues., Dec. 10

Human Rights Day

Sat., Dec. 21

Winter Solstice

Wed., Dec. 25

Christmas Day

Tues., Dec. 31

New Year’s Eve

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.

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D e c e m b e r 2013

O n t h e Ag e n d a AHWATUKEE FOOTHILLS CHAMBER OF COMMERCE Women in Business Speaker Series Luncheon Tues., Dec. 17 11:30a – 1:00p

Members: $15; non-members: $25 Foothills Golf Club 2201 E. Clubhouse Dr., Phoenix ahwatukeechamber.com

ARIZONA CHAMBER OF COMMERCE AND INDUSTRY Eggs & Issues: Innovation Nexus Tues., Dec. 17 7:30a – 9:00a

Breakfast meeting will explore innovation in education, healthcare and technology in a discussion with Dr. Michael Crow of ASU, Dr. Wyatt W. Decker, M.D. of the Mayo Clinic, and Sandra Watson of the Arizona Commerce Authority. Members: $40; non-members: $55 Hyatt Regency Downtown Phoenix 122 N. 2nd St., Phoenix azchamber.com (See story on page 31.

ARIZONA HISPANIC CHAMBER OF COMMERCE Financial Wellness Workshop Wed., Dec. 4 Noon – 1:00p

Join us to hear Senior Personal Banker of National Bank of Arizona, Beatris Guiterrez present options for SBA lending. A light lunch and beverages will be provided. Free Arizona Hispanic Chamber of Commerce 255 E. Osborn Rd., Phoenix (602) 279-1800

22nd Annual Bud Shootout Fri., Dec. 6 7:00a – 1:00p

Join us for the tournament with business connections. Golf with Arizona’s top corporate leaders and small-business owners. Breakfast and lunch will be provided for all players. Come to golf while enjoying contests, awards and prizes! Remember, all proceeds will benefit the AZHCC Scholarship Program and other Chamber initiatives. $375 Wigwam Golf Club 300 W. Wigwam Blvd., Litchfield Park Susette Coumides, (602) 294.6082

ARIZONA INTERNATIONAL GROWTH GROUP International State of the State Mon., Dec.2 7:30a – 9:00a

7th Annual “A Report Card and the Marshall Plan.” The speaker will be Hank Marshall, economic development executive officer for the City of Phoenix. $20

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December 2013

SkySong 1475 N. Scottsdale Rd., Scottsdale growthnation.com/azigg/upcoming-events

Ritz-Carlton, Phoenix 2401 E. Camelback Rd., Phoenix centralphoenixwomen.org

ARIZONA SMALL BUSINESS ASSOCIATION

CHANDLER CHAMBER OF COMMERCE

Worksite Health 101 + 201 Seminar

Chandler Chamber City Bus Tour

A worksite wellness initiative is a key business strategy to keep Arizona employees healthy, resulting in healthier employees, less absenteeism and greater productivity, leading to competitive advantages for Arizona companies. Free ASBA Business Education Center 4600 E. Washington St., Phoenix Dean Mausolf, (877) 620-0557

The City of Chandler Economic Development Dept. will give an economic update during this Citywide bus tour. Breakfast will be held at Brunchies, and then guests will board a luxury coach bus. Participants will learn the latest about new businesses relocating to Chandler and news about planned development in Chandler. Members: $20; non-members: $35 Brunchies 17 E. Boston St., Chandler info@chandlerchamber.com

Tues., Dec. 3 9:00a – 3:30p

Creating Your Effective Networking Commercial Tues., Dec. 10 1:45p – 3:00p

Wed., Dec. 4 7:15a – 10:00a

Networking @ 9

Get tips to develop an effective 30-second networking commercial in this hands-on workshop. After some pointers, we’ll work on creating your specific message. Free ASBA’s Business Education Center 4600 E. Washington St., Phoenix asba.com

Fri., Dec. 6 8:45a – 10:30a

ARIZONA TECHNOLOGY COUNCIL

Technology Lunch Seminar Series

Lunch and Learn: Tues., Dec. 3 11:30a – 1:00p

“How to Remove the Four-Letter Word from IT,” presented by Ubora. Five basic principles to implement for you and your small business that truly become the differentiator of having technology work for you as opposed to you working for it. Members: free; non-members: $15 Eller College of Management 16425 N. Pima Rd., Scottsdale (602) 343-8324

The 2013 StartupConnect AZ Conference Wed., Dec. 18 8:00a – 5:00p

The state’s first-ever conference focused on connecting our growing start-up community with the local corporate and funding ecosystems that are so vital to its growth. Members: $35; non-members: $55 ASU School of Journalism and Mass Communications, Cronkite Building 555 N. Central Ave., Phoenix (602) 343-8324 (See story on page 31.)

CENTRAL PHOENIX WOMEN Luncheon

Mon., Dec. 16 11:30a – 1:00p

“Simple Choices” presentation by Lisa Graham Keegan. $35

This month’s topic is, “How to Land Those Big Sales.” Free; RSVP required Chandler Chamber of Commerce 25 S. Arizona Pl., Chandler info@chandlerchamber.com Thurs., Dec. 12 11:30a – 1:00p

The basics of website design and development. Guests will find out about the latest in design methods and software and learn how to draw more attention and business to their site. Members: $5; non-members: $15 Chandler Chamber of Commerce 25 S. Arizona Pl., Chandler info@chandlerchamber.com

Holiday Business Blender Thur., Dec.12 5:00p – 7:00p

Hosted by the Convention & Visitors Bureau and the Glendale Chamber of Commerce. Members: free; future members: $25 Glendale Chamber of Commerce 5800 W. Glenn Dr., Glendale (623) 937-4754

GREATER PHOENIX CHAMBER OF COMMERCE The Waste Management Phoenix Open Tee-Off Luncheon Thur., Dec. 12 11:30a – 1:30p

Steve Sands from the Golf Channel will emcee the event, which will feature Phil Mickelson. $100 The Phoenician 6000 E. Camelback Rd., Scottsdale (602) 254-5521

MESA CHAMBER OF COMMERCE The 2nd Annual AZNIGP Reverse Trade Show Mon., Dec. 2 1:00p – 5:00p

Hosted by Mesa – AZ, Arizona State Capitol Chapter of NIGP, Grand Canyon Chapter of NIGP, and Mesa Chamber of Commerce, the reverse trade show is designed for local businesses, small businesses, new start-up businesses, historically underutilized businesses and companies who want to do business with Arizona governmental agencies. Pre-register: $10; at the door: $15 Mesa Convention Center 201 N. Center St., Mesa aznigp.org

Chandler Chamber Lunch Club

NATIONAL ASSOCIATION OF WOMEN BUSINESS OWNERS

$10 Barrelhouse American Kitchen & Cocktails 2050 N. Alma School Rd., Chandler info@chandlerchamber.com

December 2013 Red Affairs

Mon., Dec. 16 11:30a – 1:00p

Business After Business – Valle Luna Thurs., Dec. 19 5:00p – 7:00p

Members: $5; non-members: $15 Valle Luna Mexican Restaurant 1949 W. Ray Rd., Chandler info@chandlerchamber.com

GLENDALE CHAMBER OF COMMERCE First Friday Networking Fri., Dec. 6 7:30a – 8:30a

Chamber’s Networking leads group $5 Bitzee Mama’s 7023 N. 58th Ave., Glendale (623) 937-4754

Wed., Dec. 11 11:00a – 1:00p

Festive red holiday attire requested. Members: $55; non-members: $65; after Dec. 6: add $15 Scottsdale Resort and Conference Center 7700 E. McCormick Pkwy., Scottsdale nawbophx.org

NORTH PHOENIX CHAMBER OF COMMERCE Golf, Gab & Grow Your Business Thurs., Dec. 5 2:00p – 6:00p

Enjoy 9 holes of golf and a networking happy hour/cocktail hour with raffles and giveaways immediately following the golf. Members: $45; non-members: $50 Stonecreek Golf Club 4435 E. Paradise Village Pkwy. S., Phoenix (602) 482-3344

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

December Business Resource and Networking Luncheon Tues., Dec.10 11:30a – 1:30p

“Competitive Edge & Survival Strategies”; speaker tba. Members: $20; non-members: $25; at the door: $30 Moon Valley Country Club 151 W. Moon Valley Dr., Phoenix Fern Hailey, (602) 482-3344

representative who has retired from that area. Free; RSVP required Scottsdale Area Chamber of Commerce 7501 E. Mccormick Pkwy., Scottsdale 480.355.2700

Members: $40; General Public: $50 Sheraton Phoenix Airport Hotel Tempe 1600 S. 52nd St., Tempe Sachiyo Spires, (480) 967-7891

OTHER BUSINESS EVENTS

WEST VALLEY WOMEN

TEMPE CHAMBER OF COMMERCE

West Valley Women “Holiday Luncheon”

The day is devoted to sustainability training and a chance to dialogue on building a greener economy in the Sun Corridor. Attendees will leave armed with the tools, strategies and connections to enact positive change at their organization. $175 Phoenix Convention Center, West Building 100 N. Third St., Phoenix phoenix.gogreenconference.net

Networking @ Noon: Holiday edition!

ORGANIZATION OF WOMEN IN INTERNATIONAL TRADE – PHOENIX Holiday Party

Tues., Dec. 3 5:30p – 8:00p

Members: free; non-members: $35 Cantina Laredo 7361 E. Frank Lloyd Wright Blvd., Scottsdale owitphoenix.org

Thurs., Dec. 12 11:30a – 1:00p

Join us for a special holiday edition of Networking @ Noon! We’ll have the usual fun with the addition of a white elephant gift exchange for those that would like to participate (value under $15). Members: $25 in advance, $30 on day of; general public: $35 Thirsty Lion Pub & Grill 2000 E. Rio Salado Pkwy., Tempe Sachiyo Spires, (480) 967-7891

State of the Schools Wed., Dec. 18

SCOTTSDALE AREA CHAMBER OF COMMERCE Business Owners Forum Fri., Dec. 13 8:00a – 9:00a

A roundtable discussion about current issues and business-related topics that are affecting business will be followed by a presentation from a SCORE

11:30a – 1:30p We believe it is critical that the educational and business communities collaborate and support one another. This event facilitates a meeting with a panel of educators to learn the condition of our educational institutions and determine how best to assist them in achieving their goals. Our focus this year is elementary education.

Tues., Dec.3 11:30a – 1:00p

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

WESTMARC 9th Annual Golf Classic

Tues., Dec. 3 8:00a – 6:00p

BMA 2013 Holiday Party and 2014 Preview

Mon., Dec. 9 10:00a – 7:00p

Wed., Dec 11 5:00p – 8:00p

$200 Trilogy Golf Club at Vistancia 12575 W. Golf Club Dr., Peoria Ashley, (623) 435-0431

WOMEN OF SCOTTSDALE Holiday Luncheon Fri., Dec. 20 11:30a – 1:30p

Go Green Phoenix Conference

An evening of cocktails, hors d’oeuvres and networking with B2B marketing peers from throughout the Valley. Members: free; non-members: $25 Kelly’s at Southbridge by the Scottsdale Waterfront 7117 E. 6th Ave., Scottsdale bmaphoenix.org

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

Prepare for 2014 and get Exposed!

Special Sections

Events Online

Email Magazine

Your company deserves to be fit. Performance Marketing: Print. Online. Email. Social Media. Events. (480) 588-9505

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info@inbusinessmag.com

D e c e m b e r 2013

Education

Helping Raise the Bar on ... INTERNET MARKETING

Explode Sales with Targeted Online Marketing Strategic traffic building attracts qualified leads by Thomas Beyer The Internet has accelerated strategic target marketing to a new level. We have access to virtually any type of information at our fingertips. Combining this with expert analytics, marketers today can create, evaluate and redeploy targeted campaigns at light speed. In the “old” days, the best advertisers could hope for was to promote their company via media that created content designed to attract specific market segments. This resulted in high-cost lead generation. Today, technology gives advertisers the ability to direct their marketing dollars where they want while having the capability to instantly analyze and adjust, thereby maximizing the effectiveness of their investment. This is the final installment in an educational series on how to get your products and services found on the Internet. Previous articles discussed website design that supports the sales process, and how to improve search rankings. Now that the fundamentals are in place, let’s take a look at target marketing and low-cost lead generation.

Grow Your Business with Low-Cost/ High-Impact Lead Generation Direct marketers have made it easy and cost-effective for companies to promote themselves on the Internet. It frequently begins with a landing page. A landing page (LP) is a one-page website that attracts keyword searchers. The LP contains links to either your website or online store. Driving traffic happens when prospects go from your LP to your website. The key is to make sure your LP is visible on Page 1 of the applicable search.

Fast and Easy — Finding Keywords & Phrases Your first step is to identify key search words and phrases. If you want to know what keywords people use to find you, either ask your prospects directly or use a software tool. These tools rank and recommend the search terms most often used to locate your products and solutions. One of the most commonly used tools is Google Adwords — and it’s free! Here’s an example using Google Adwords (which can be a keyword or a keyword phrase). Let’s say someone wants to learn more about the Affordable Care Act. If you’ve found a great tutorial that a corporate healthcare company’s website has on that subject, your landing page could briefly address the benefits of downloading or reading the tutorial. When the searcher enters “Impact of Obama Care on business” in her browser, your website will come up and she will click on the link that directs her to the applicable page on your website. This is what we call “driving traffic” to your site.

Getting on Page 1 How do you get on Page 1 of someone’s search? You advertise! Pay per click and pay per impression are two common paid alternatives that can get you on the first page of a search. In the end, the quickest way to get on Page 1 is to pay to be there.

Low-Cost Advertising Equals Low-Cost Lead Generation The budget is set by you. When setting up an Adwords account, you determine how much you want to spend. You can increase or terminate the campaign online, and you receive email alerts if your account needs

D e c e m b e r 2013

funding. We’ve seen sales explode using this simple and cost-effective technique. Aggressive campaigns can begin for as little at $50 per month. If a campaign isn’t working, you either cancel it and reinvest in a profitable campaign or test a new keyword strategy.

Leverage Existing Marketing Tools for More Low-Cost Sales Do you utilize email, social, video or webinar marketing to communicate with clients and prospects? A low-cost but very effective sales tactic is to place links within these tools that drive traffic to your website. For example, Twitter posts can contain links for “additional” information. Webinar invites can pre-educate attendees by having them visit your site. Your email campaigns can include coupons or calls to action that require interaction with your website. If you’re already communicating with your clients and prospects, think of different ways that you can leverage your efforts to drive more traffic to your website.

Keep the Sales Rolling In — Test & Monitor The Internet is a dynamic environment. It keeps marketers on their toes. After launching a campaign, we immediately evaluate what works and terminate what doesn’t. Then we begin planning the next campaign. You cannot “set it and forget it.” If you want a steady flow of new business, you’ll benefit from regularly testing new keywords and making sure that your marketing communications tools drive traffic to your website. This concludes our three-part educational series on “getting found on the Internet.” Play an active role in the design of your website. Make sure it works for your customers and your marketing plan. Do the basics of Search Engine Optimization and turbocharge your results by integrating useful back links to your website. When your website is ready to support sales, then drive traffic to the site. Start with low-cost and simple strategies. As you monitor and experience sales growth, take the time to explore more expensive and aggressive strategies that will further ignite and explode your sales. Beyer Management Consulting, Inc.

beyermanagement.com

Thomas Beyer is president of Beyer Management Consulting, Inc., located in the Deer Valley Airpark. BMC assists business owners and executives to quickly increase sales and profits through cohesive integration of traditional and digital marketing strategies and tactics.

Internet Marketing

The Education Series

q October: Base Website Design on Your Sales Process q November: Visitors Wanted - Get Your Website Found on the Internet q December: Explode Sales with Targeted Online Marketing To reference published segments of this series, please access the archived “How-to” articles on the In Business Magazine website, www.inbuisnessmag.com.

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Call 1-800- OFFICES or visit regus.com. *Terms and conditions apply. Offer not valid in all Regus locations. Twelve-month term required. Offer applies to initial term of agreement and may not be combined with other offers. Promotion available to new customers only. Offer expires 12/31/13.

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D e c e m b e r 2013

by Mike Hunter

We Value What We Own

2014 Acura MDX All-Wheel Drive This seems to be the year that car manufacturers are presenting their redesigned and rethought smaller SUV class. It is a big market, undoubtedly due to the options for professionals, heads of households and those living alone who need it all. The MDX has gone through many changes over the years, and in 2014 has seemed to have landed on what is being lauded as a viable alternative to the Range Rover Sport or the BMW X series. The allnew 3.5-liter, V-6 engine achieves 290 horsepower and 267 lb.-ft. of torque. The front-wheel drive model has a fuel rating of 20 mpg city and 28 mpg highway; the all-wheel drive version is just one or two miles fewer per gallon. Other newly engineered elements, including the suspension and triplesealed doors and windows, are being recognized as a welcome change over prior years, offering better stability, quiet precision and comfort. The 6-speed Sequential SportShift transmission allows for economical or sporty modes and can go from automatic to manual where drivers can shift using the paddle shifters. Acura is a luxury brand that focuses on practicality in its design. The MDX comes with all the bells and whistles (or screens and buttons) to provide for every convenience. The roomy cabin is equipped with the MDX Acura Premium audio and navigation systems operated by an 8-inch touch screen that manipulates all integrated technologies and includes USB audio interface and an auxiliary input jack. Bluetooth comes standard as well as a rearview camera with Dynamic Guidelines and a 170-degree view that swivels to see height. Comfort is a priority for Acura and becomes evident in this model. The leather seats are fully automatic for positioning and comfort with lateral support. There are second- and thirdrow seating, each of which is floor-storable, providing for ample cargo space. For long drives 2014 Acura MDX AWD or for navigating city streets, the all-new Acura City MPG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 MDX is a true high note. Hwy MPG. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 0-60 MPH. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.5 sec Transmission. . . . . . . . . . . . . . . 6-speed automatic MSRP. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $45,185

acura.com

Executive Makeover There is no doubt that the office phone, computer and office chair are as critical to one’s success as are the top hires within one’s company. Here are our picks for the top-of-the-line accessories that will mean true success.

DW Pro 2 Headset by Sennheiser

Aimed at professionals who need flexible yet fail-safe wireless solutions that are comfortable to wear and intuitive to use, the DW Pro2 sets the standard in listening and wearing comfort. This double-sided headset boasts an incredible range of attractive and innovative technologies, allowing users to perform at their best. $369.95 sennheiser.com

Dell XPS 27 Touch All-InOne Computer

With a Wide Quad HD touch screen, the edge-to-edge glass panel registers up to 10 fingers at once, so a user can do anything from edit spreadsheets to play a piano concerto right on the incredibly vibrant screen. Fully upgraded, this is Dell’s most powerful All-In-One with Intel® SRT solidstate hard drive for incredible performance. It includes Windows® 8 Professional and one year ProSupport. $2599.99 dell.com

Eames Soft Pad Leather Executive Chair

The cushier cousins of the Eames Aluminum Group bear the same distinctive stamp of Charles and Ray Eames: sophisticated, refined, with a graceful silhouette. Soft Pad chairs are available with new colors, materials and bases that let them sit well in homes and offices. $3,229 hermanmiller.com

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Photos courtesy of Acura (left), Sennheiser, Dell, Herman Miller (right, top to bottom)

ASSETS

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A community partner. Waste Management is a valued and trusted community partner. Every year, we give back tens of thousands of dollars to community organizations in need. Waste Management is proud to support Big Brothers Big Sisters of Central AZ, the Special Olympics, Keep Phoenix Beautiful and Habitat for Humanity. 1-800-796-9696

ÂŠ201 Waste Management, Inc.

Power Lunch

by Mike Hunter

Meals that matter

Holiday Gatherings: Last-Minute Counts Busy times make for focusing on all business. This is the time of year to thank staff and clients. Here are our picks for the immediate holiday or year-end thank-you party (big or small).

Olive & Ivy, Scottsdale Located on the Waterfront in Scottsdale, this has become a great holiday destination this time of year. With holiday décor inside and out, this whole area is bustling. Serving modern Italian, it can offer immediacy for parties up to 20. The Stamp private dining room is elegant and is open for lunch or dinner. A delightful patio is reminiscent of the Mediterranean region, with the olive trees and Old World charm. 7135 E. Camelback Rd., Scottsdale (480) 751-2200 • foxrc.com

Celebrated local chef Michael O’Dowd, known for achieving a five-diamond/ five-star rating for his work at Kai, opened Renegade for dinner earlier this year in North Scottsdale. The restaurant’s unique menu and ambience can now also be enjoyed for lunch. The man with culinary attitude has designed a lunch that those who love food and adventure and don’t mind reinvented classic dishes will be starving for. A master at taking familiar food and turning it into something memorable, O’Dowd debuted with a few dishes that will forever go down as “his” classics although, now that he has left the restaurant after opening it, some of the menu names may lose the “MOD” appelation.. The Shake & Bake is a salad made with boneless chicken nuggets, Romaine lettuce, bacon, tomato, avocado, red onion and blue cheese crumbles all tossed in his Spicy MOD Wing Dressing. The MODed Grilled Cheese includes three melted cheeses, cured ham and sliced turkey on truffle-toasted brioche bread. This is a dish that should be presented when guests sit and shared with the entire party — it’s that good. Other dishes include O’Dowd’s version of some favorites he has renamed to reflect his twist. They include the Naughty Nachos, the Defiant Wings (complete with celery sticks and blue cheese ranch dressing) and the Renegade MAC Attack Gone Wild. Located on Shea Boulevard just east of 92nd Street, this far-out place is a drive, but worth it. The look is “rebellious high-end sports bar” meets edgy “Scottsdale art gallery” and the service is exciting and fast. Diners can enjoy the patio, which feels a bit resort-like and relaxing for lunch, so plan to be there a while this time of year. There is an under-five-dollar menu with some truly delicious dishes that include the MOD Sloppy Joes. Drinks are a specialty (alcoholic or otherwise) as Renegade has a full bar. O’Dowd’s creative side shows at the bar as well This eclectic hot spot will certainly do for lunch and add a little something to life.

Orange Sky at Talking Stick Resort High atop Scottsdale on the 15th floor of the Talking Stick Resort, this memorable spot is all about the food and the view. It is a stunningly modern design with multiple bars and a dining room that features private booths, private dining rooms and outdoor ambiance for parties of 2 to 20. Dinner only. 9800 E. Indian Bend Rd., Scottsdale (480) 850-8606 • talkingstickresort.com

Buca di Beppo Its East Coast-style Italian dishes are served family-style, meant to be shared by everyone at the table, and the diverse menu will please just about everyone. Take the party to one of its locations or use its catering; it is ready for an immediate event and can accommodate both large and small parties. 4 Valley locations Arrowhead, Chandler, Mesa & Scottsdale bucadibeppo.com

Renegade 9343 E. Shea Blvd., Scottsdale (480) 614-9400 renegadescottsdale.com Olive & Ivy

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Photos courtesy of Renegade by MOD (left), Olive & Ivy (right)

Reinvent Lunch at Renegade

Saturday, April 5, 2014

Sponsorship and Event information

Contact Nancy Conway‐Dennis at 602‐648‐2761 or nconway‐dennis@childmusephx.org.

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Imagine a place that will engage your creativity and enhance your education and sense of cultural community. A place where you can explore a collection of over 17,000 works and experience new exhibitions that are sure to tenlighten your soul. Connect with Phoenix Art Museum—it’s a relationship like no other.

EXPLORE ENGAGE ENJOY The Cape | September 15 – February 19 Rufino Tamayo: Master Printmaker | September 21 – January 12 Xul Solar and Jorge Luis Borges: The Art of Friendship | October 2 – December 29 INFOCUS PhotoBid | October 5 – October 18 The West Select Exhibition and Sale | November 10 – December 31 Read My Pins: The Madeleine Albright Collection | November 23 – April 20 See, Hear, Feel: The Photographs of Debra Bloomfield and Christopher Churchill | December 7 – March 23 Hollywood Costume | March 26 – July 6

© 2013 Phoenix Art Museum. All Rights Reserved. LEFT to RIGHT: Ed Mell, Sweeping Clouds, 1989. Oil on canvas. 53” h x 53” w. Museum purchase with funds from anonymous donors. Krishna and Radha under an Umbrella, Kangra School, 19th century. Ink and color on paper. 8.375” h x 6.375” w. Gift of George P. Bickford. Robert Henri, The Laundress, 1916. Oil on canvas. 36” h x 29” w. Gift of Mr. and Mrs. Norman Hirschl.

1625 North Central Avenue Phoenix, AZ 85004 phxart.org

Top

Luxury 2014

Real Estate Agents

Chey Castro Renee Merritt Kevin Owens Jean Ransdell Marnie Rosenthal Tom Scappaticci

RECIPIENT NAME

Top Luxury Agents

Today’s Luxury Home Market Luxury homes are appreciating slowly but moving fast by RaeAnne Marsh

Phoenix-area home prices have been rising since hitting a low point in September 2011. The median single-family-home price rose 32.7 percent — from $150,000 to $199,000 — from last September to this September, according to the most recent report from the W. P. Carey School of Business at ASU. The average listing price of luxury homes — generally defined as those valued at $500,000 or more — is also up, although only about 5 percent. But then, the luxury market didn’t take the hit the overall market has suffered since 2008. The report finds the luxury market continues to perform well, thanks to the rising stock market and a big increase in the availability of jumbo loans. Sales of $500,000-plus, single-family homes grew an incredible 51 percent from September 2012 to September 2013. Luxury properties span the Valley in gated and non-gated communities, and include horse properties and golf properties. For homes listing at $500,000 to $3 million, the persquare-foot price has dropped about $7, but number of active days on the market has also dropped — from 133 days a year ago to 118 days at the present time. Inventory is up slightly from the 2,400 of a year ago, but Howard Lein, owner of Scottsdale-based franchise RE/MAX Excalibur Realty, says the number of months’ supply has dropped from 9.4 to about 7. “Sales volume has been up,” he explains, but adds that, currently, it is dropping quickly. In the Phoenix-area real estate market overall, the number of available homes for sale continues to rise, after the area experienced a very tight supply for months. Active listings, not including those already under contract, went up 32 percent from Oct. 1 of last year to Oct. 1 of this year. More people appear willing to put their homes up for sale as prices rise. “If the current trend continues, supply will exceed demand by the end of the year,” says Mike Orr, director of the Center for Real Estate Theory and Practice at the W. P. Carey School of Business. “We now expect a balanced market to prevail during November. This is great news for buyers since they will experience less competition and be in a strong position to negotiate.” Institutional investors and out-of-state buyers continue to lose interest in the Phoenix area, since better bargains can now be found elsewhere. The percentage of homes and condos bought by

About this section: As part of our

service to our readers, our editorial staff has invited these top luxury real estate agents to provide information on themselves, their expertise and details relating to their business in this Top Luxury Real Estate Agents special

investors in September was down to 22.7 percent, from the peak of 39.7 percent in July 2012. Also, the percentage of Maricopa County residences sold to owners from outside Arizona was only 16.4 percent, the lowest percentage since January 2009. Speaking of the Asian market in particular, Lein says it “has not proven to be as strong as other parts of the country. For some reason, Arizona is being overlooked by the bulk of the Asian buyers versus some of the East Coast and West Coast markets.” Observing that the luxury market “has been rolling along very well in the first part of 2013,” he notes that, however, a number of factors have slowed new buyers down dramatically. These include interest rate adjustments along with the government shutdown, which brought what was on track to be a spectacular year to a virtual slow down. “Only in the past couple weeks have the phones begun to ring again” he says. “Sellers are bringing new product to the market, giving buyers a new selection of great properties to look at.” Lein believes sellers are reacting to the sales figures from the first half of 2013 and prices, in some cases, are out of line. But he says, “Buyers are gaining confidence again and are slowly recognizing that even with the slight increase in rates, the lending market is still a tremendous bargain.” And he notes, “With labor shortages still affecting the new home builders, most of the luxury homes being bought still can’t be replaced by new construction costs.” A major factor in the appreciation of existing home inventory has been the shortage of labor and the rapidly increasing cost of lots. Additionally, Lein observes, “It appears that immigration issues have contributed to the rapid appreciation of residential properties in the Phoenix area. If continued, appreciation could continue at a more rapid pace than other parts of the country.” Financing continues to be favorable for the luxury market. Says Lein, “There are some incredible programs for the well-healed individual who has relationships with the wealth management divisions of the national banks.” RE/MAX Excalibur Realty excaliburrealestate.com W. P. Carey School of Business wpcarey.asu.edu

section. The real estate market is improving and these agents are proven leaders in the Valley. In Business Magazine recommends these agents. Please visit inbusinessmag.com for more information and articles on the local real estate market.

Luoxp ury

2014

Real Est

ate Age

nts

Chey Cas tro Renee Me rritt Kevin Ow ens Jean Ra nsdell Marnie Rosentha l Tom Sca ppaticci

RECIPIE

NT NAM E

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Top TopLuxury LuxuryRealtors Agents

Chey Castro

Russ Lyon Sotheby’s International Realty One of the primary attributes that sets Chey Castro apart from other Realtors is his in-depth knowledge and understanding of the financial side of any transaction — a skill that enables him to ensure that his clients’ financial needs are very well served. A proud native of Arizona, Castro graduated from Arizona State University (4.0 GPA; Summa Cum Laude) with a business degree in finance and went on to earn a Masters of Science in accountancy from the University of Notre Dame.

Profile Name: Chey Castro, MSA Company/Broker Name: Russ Lyon Sotheby’s International Realty Main Office Address: 7135 E. Camelback Rd., Suite 360 Scottsdale, AZ 85251

Along with the totality of his background, education and experiences, something else that sets him apart from other agents is the fact that he has been Phone: (602) 570-2516 regularly and repeatedly recognized by his peers, his company and the media as a result of Website: www.CheyCastro.com winning a bevy of “Top Producer” awards. He has been named to the Phoenix Business Journal’s “Book of Lists” for top-producing real estate agents, and been honored as the only real estate Designations: Master of Science in Accountancy agent inductee into the Phoenix Business Journal’s esteemed “40 Under 40” class of 2012. Specialty Areas: Silverleaf, DC Ranch, FireRock, His early experiences in real estate development fueled and solidified his passion for high-end North Scottsdale and Paradise Valley residential sales. It is his exceptional attention to his clients’ needs and intricate knowledge of the market that has led him to quickly become a top luxury-market Realtor. Colleagues have described Castro as “positive,” “optimistic,” “trustworthy,” “hard-working” and “ethical” — traits that he values highly in both his work and his personal life. His hope and objective is that after he completes a real estate transaction with a client, he or she would also agree with these words.

On The Market

Silverleaf

Windgate Ranch

Amazing Custom Home situated on a premium lot overlooking Homestead Park and backing to Mountain Preserve for ultimate privacy.

Highly desired singlelevel Solaria Model with breathtaking unobstructed Mountain Views and custom high-end finishes.

$6,000,000

$899,000

SOLD IN 2013

SOLD IN 2013 Windgate Ranch Silverleaf Custom Home in the Upper Canyon at Silverleaf situated on a premium lot that backs to the McDowell Mountain Preserve.

$3,250,000

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Hardwood flooring throughout, gourmet kitchen, stainless steel appliances, custom hand-carved cabinets, den/ office, game room, and extended master suite with a patio capturing breathtaking mountain views.

$1,400,000

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Top Luxury Agents

Renee Merritt

Coldwell Banker Previews International Originally from New York, Merritt relocated to the Valley more than 22 years ago and has gained an extensive familiarity and fundamental understanding of the dynamic real estate market of the Greater Phoenix area. Merritt is passionate about her profession and loves what she does. She is a renowned luxury real estate advisor and among Coldwell Banker’s elite, top-producing, certified PREVIEWS Property Specialists with an unwavering commitment to exceptional client service and professional excellence. Whether assisting the affluent buyer or seller, she works diligently to protect and advance her clients’ real estate goals and objectives while carefully and meticulously guiding them throughout the transaction process. Merritt is one of the industry’s leading practitioners, and her clients have come to rely upon her expert market insight and keen negotiating prowess. In addition to all the world-class services and international exposure the Coldwell Banker Previews International team provides, Merritt’s strategic hands-on approach, impeccable follow-up and compassionate demeanor have made her the “go-to” luxury real estate advisor among the Valley’s top professionals.

Profile Name: Renee Merritt Company/Broker Name: Coldwell Banker Previews International Office Address: 10446 N. 74th St., Suite 100 Scottsdale, AZ 85258 Phone: (480) 522-6135 Email: ReneeMerritt71@gmail.com Website: www.ReneeMerritt.com Specialty Areas: Greater Phoenix

Merritt’s passion for her profession shows in her achievements; she is among the top 1 percent of Coldwell Banker Arizona Realtors and has been recognized with a number of prestigious accolades throughout her real estate career. Merritt also enjoys giving back to the community. She donates her time and financial resources to various charitable organizations such as Childhelp, Feed My Starving Children and Compassion International, and supports K-LOVE and Air1.

On The Market Hermosa Estates

Circle G

Superbly crafted custom in one of North Mesa’s premier gated enclaves. Exceptional finishes and details throughout this 5-bedroom, 4.5-bath estate with pool & glass tile spa.

SOLD IN 2013

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Executive home with classic style & sophistication. Spacious 4-bedroom, 4.5-bath plus office on a large lot with elegant features, tranquil pool & spa.

5300 S.F. tourfactory.com/1065110

4107 S.F. tourfactory.com/1051074

$1,100,000

$895,000

Circle G

SOLD IN 2013

Gainey Ranch

A rare Gilbert Landmark! First time to ever grace the market. One-of-a-kind 10,752-sf Tudor estate on 3.3 lush acres with horse stalls & privileges. 10-bedroom, 6-bath, 12-car detached carriage house, a once-in-a-lifetime opportunity!

Located on the 7th fairway of The Dunes at Gainey Ranch with gorgeous golf course and mountain views. Enjoy carefree Scottsdale lifestyle living in this soft contemporary custom with 24-hour guarded entry, shopping, walking paths, and country club amenities.

10,752 S.F. tourfactory.com/885837

3869 S.F. tourfactory.com/837145

$1,775,000

$1,025,000

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Top Luxury Agents

Kevin Owens

Coldwell Banker Previews International

Kevin Owens represents luxury buyers and sellers, combining the market knowledge of a Scottsdale native with the history and global strength of Coldwell Banker. Early in his career, Owens earned the opportunity to partner with two of Scottsdale’s renowned top-producing luxury agents. It was from these mentorships that he mastered the art of selling luxury real estate. Owens continues his momentum by being annually recognized through “Outstanding Client Service” awards and was also awarded REALTOR.com’s “Online Marketing Award of Excellence” for his distinguished Internet marketing. Owens is also a founding member of NextGen, a collaborative group of next-generation real estate professionals who focus on innovation, technology and networking to share best practices. Recognized for his industry-leading marketing strategies, Owens combines the power of the Internet, online video showcases and international exposure with conventional time-tested marketing. Owens excels in property-specific marketing because he understands the importance of telling the story behind each unique luxury home that he represents. After all, exceptional properties deserve nothing less than exceptional representation.

Profile Name: Kevin Owens Company/Broker Name: Coldwell Banker Previews International Office Address: 23435 N. Pima Rd., Suite 173 Scottsdale, AZ 85255 Phone: (480) 217-9184 Website: www.fineAZliving.com Designations: ASP, CLHMS, CNBS, CNE, CNMS, GREEN, SFR

Specialty Areas: Scottsdale, Phoenix, Paradise When representing buyers, Owens is known for his in-depth market knowledge that only a Scottsdale Valley, Arcadia, Biltmore, Desert Ridge, native can offer. His continuing education means you will be working with a REALTOR® who Carefree/Cave Creek is immersed in the industry and understands current market trends. Through Owens’ professional networking, he provides property possibilities beyond what is available in the MLS, often knowing about listings before they hit the market. Owens is currently ranked No. 1 in the Coldwell Banker Scottsdale-Pinnacle Peak office, in the top 25 agents in Arizona, and in the top 14 percent of agents worldwide for sales production.

On The Market Southern Cross Ranch

Luxury equestrian estate Located on the “Rodeo Drive” of equestrian estates: 5-acre, 5,178-sf main house, guest house, tennis court. See the video showcase at: YouTube.com/fineAZliving

$4,250,000

Softwind Serenity Vista Monterey in North Scottsdale

McDowell mountain views, 5 bedrooms, 3.5 bathrooms, 4,278 sf on 1-acre lot, flex room w/ bar, gym. See more photos at: SoftwindSerenity.com

$1,015,000

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Top Luxury Agents

Jean Ransdell & Tom Scappaticci Russ Lyon Sotheby’s International Realty

A well-earned North Valley reputation for strong work ethic and valuable networking connections makes Jean Ransdell and Tom Scappaticci the smart choice for your next purchase or sale of luxury real estate. In today’s market, nothing less than “going the extra mile” gets the job done. Whether buying or selling a home, an experienced real estate team who is quick to see solutions and not shy about testing limits to pursue your best interests is what clients need and what they get with Ransdell and Scappaticci. Well-seasoned in the art of negotiation, Ransdell and Scappaticci are a valuable asset with the diplomacy of an ambassador and the perseverance of a bulldog. Those serious about buying or selling want them on their team, and it doesn’t take long to see why. Laws, finance strategy, tools and resources, market trends and so much more change almost daily in Arizona real estate. Ransdell and Scappaticci stay on top of current industry information and education and hold numerous certifications such as Associate Broker License, ABR and ePro Certification. With 50 plus years of combined experience in Arizona luxury real estate and hundreds of transactions under their belts, this powerhouse team benefits clients with its in-depth experience in luxury home and luxury lot sales. Land and lots are, especially, a unique sale or buy with very different considerations to be mastered. Scappaticci prides himself in being that expert.

Profile Name: Jean Ransdell & Tom Scappaticci Company/Broker Name: Russ Lyon Sotheby’s International Realty Office Address: 8852 E. Pinnacle Peak Rd., Suite J-3 Scottsdale, AZ 85255 Phone: Jean (480) 294-3257 Tom (602) 430-4081 Website: www.ArizonaLuxuryRealty.com Designations: Associate Broker, ABR, e-Pro Specialty Areas: Troon, DC Ranch, Desert Highlands, Desert Mountain, Whisperrock, Grayhawk, North Scottsdale

With Ransdell and Scappaticci comes the most prestigious brand in Arizona luxury real estate — Russ Lyon Sotheby’s International Realty. The world reaches Arizona and Arizona reaches the world via this unmatched combination of leaders in the local and international markets. Ransdell and Scappaticci are a team to trust for results and will make you proud to work with and refer others to.

On The Market

Silverleaf

Glenn Moor at Troon

Beautifully detailed & appointed home located on a GREAT LOT in the Parks at the premier guard-gated community of Silverleaf.

Surrounded by majestic boulder mountains, this Old World Estate is snuggled right alongside the lush fairway of the award-winning Troon Golf Course.

4876 S.F. tourfactory.com/1021934

7428 S.F. tourfactory.com/1035996

$1,899,000

$2,950,000 Pinnacle Peak

Impressive Old World ambiance on this elevated 2.5-acre Saguaro Forest premium home site offering panoramic mountain and city-light views.

Take-your-breath-away, one-of-a-kind Mountaintop Estate artfully sits on a 5+ acre private mountaintop lot at almost 3,000-foot elevation offering 360-degree views of SPECTACULAR sunsets, city lights & mountain vistas.

7292 S.F. Tourfactory.com/946170

7800 S.F. tourfactory.com/936103

Pending $2,995,000

$2,950,000

Desert Mountain

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Top Luxury Agents

Marnie Cooper Rosenthal Russ Lyon Sotheby’s International Realty

As a top producer in the Russ Lyon Sotheby’s International Realty organization, Marnie Rosenthal is a proven, successful real estate agent, specializing in Scottsdale homes for sale and lease within the Maricopa County real estate market. Year after year, her results-driven professionalism moves large volumes of luxury property in the North Phoenix, Scottsdale, Troon, Arcadia, Paradise Valley and Fountain Hills areas of Arizona. Buyers and sellers alike trust her and refer Rosenthal because of her stellar work ethic and broad network of resources. With an unparalleled expertise in real estate for both buyers and sellers, Rosenthal is unique in that she understands the client experience, and focuses on the client’s needs so as to not waste time. She surrounds herself with the most professional and capable experts in the business, creating a team that exudes service and reliability. Her expectations for her clients to receive nothing but the best are why she is so well-known and revered in the real estate market in Arizona and beyond. She is accredited with some of the most prestigious designations. Rosenthal’s certifications exemplify the value she places on current knowledge and education. Certifications are an Accredited Buyers Representative (ABR), Certified Short Sale Negotiation (CSSN), Certified Distressed Property Expert (CDPE) and National Association of Realtors® Green Designation (GREEN). Rosenthal’s slogan, “Luxury Homes, Quality Living...that’s My Specialty!” resonates because she cares so deeply about the needs of her clients.

Profile Name: Marnie Cooper Rosenthal Company/Broker Name: Russ Lyon Sotheby’s International Realty Office Address: Waterfront 7135 E. Camelback Rd., Suite 360 Scottsdale, AZ 85251 Phone: (480) 298-2971 Website: www.TeamMarnie.com Designations: CDPE, CSSN, CNE, SFR, ABR, GREEN, HAFA Specialty Areas: Silverleaf, DC Ranch, Grayhawk, Windgate Ranch, McDowell Mountain, Troon, Desert Mountain Golf Club, Mirabel Golf Club, Estancia Golf Club, Paradise Valley, Arcadia, Phoenix

On The Market

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Paradise Valley

Arcadia

Engulf yourself in this private Palatial estate with breathtaking Resort-style living. From the lush landscape flanked by citrus and mature trees to the designer kitchen, this highly upgraded home with stone and wood finishes has it all, sparing no expense!

Tennis courts, lap pool, fountains and more … this home has the accoutrements for the discerning family of today! Gorgeous Master retreat with spa-like bath. Wonderful intimate Guest suites with private baths. Fabulous spacious Kitchen — Family Room — Great Room feel for all social gatherings.

$3,200,000

$2,950,000

Silverleaf Golf Club

North Scottsdale

Beautifully situated showcasing the gorgeous McDowell Mountains, this charming Tuscan-inspired home in the heart of North Scottsdale is truly an Entertainer’s Paradise! Enjoy the multiple outdoor gathering spaces, Chef’s Gourmet Kitchen, private breakfast room and wonderful Master Suite complete with sitting room.

Backing to the 8th tee, this home is truly a Golfer’s Dream Retreat! Enjoy the spectacular 360-degree views encompassing the golf course, mountains and city lights in this fabulous singlestory Guard-Gated Golf Course home! Tucked away off a long drive and cul-de-sac, this home with warm color palette and designer finishes offers peace and tranquility.

$2,495,000

$1,550,000

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scottsdalechamber.com

MEMBER COMMUNIQUÉ December 2013 - March 2014

The 28th annual Sterling Awards are now in the books, and as always we have seen tremendous interest in applying for this prestigious honor and tremendous judges whose job in selecting an honoree proved most challenging. The Sterling Awards themselves speak volumes about the business community. The process is rigorous. From application to interviews to site visits, the entire Rick Kidder Sterling process is handled by volunteers who dedicate weeks of meetings, review and care to ensuring that the Sterling Awards truly reflect excellence in business and integrity of judging. Beyond coordinating the schedules and planning the event itself, Chamber staff step aside and let the volunteers do their work. Running totally against our natures, we on the staff stay completely out of the process, permit ourselves no input into the selection of finalists and honorees, and allow the cadre of nearly 50 dedicated volunteers to accomplish their daunting task on behalf of the organization. This year’s committee was chaired by Susan Potje of Celebration of Fine Art and Steve Helm from Scottsdale Fashion Square, both previous honorees of the Sterling Award. Dale Fingersh, for whom the Chamber’s annual volunteer award is named, chaired the judging committee, comprised of business people from companies large and small. This year’s Sterling Awards were sponsored by companies whose names are synonymous with excellence as well. Microsoft was our marquee sponsor. Our Big Business sponsor was Scottsdale Healthcare. Cox Media sponsored the Small Business award, and Magellan Health Services showed its commitment to the hard-working entrepreneurs of the Microbusiness category. Lastly, APS once again sponsored the NonProfit award. SRP provided tens of thousands of dollars in support by filming and editing all of the finalists’ videos,

Photograph courtesy of City of Scottsdale

Message from the CEO

The Case for McDowell Road The Early Days All cities in metropolitan Phoenix have been in a constant state of change for many decades. Phoenix has grown to become the nation’s fourth-largest city. Scottsdale has evolved from being a relatively sleepy suburban community into an economic powerhouse while continuing to be a tourism mecca. But not all of Scottsdale has seen the kind of evolution that adds strongly to the economy or the city’s quality of life. Once vibrant and exciting, McDowell Road in Scottsdale, despite its many natural assets, has fallen on hard times. To understand its evolution, one must examine its storied past. Home to the first enclosed mall in Arizona, the once-mighty Los Arcos, the intersection of Scottsdale Road and McDowell was at one time one of the busiest intersections in the State of Arizona. The success of Los Arcos brought more success, and the Scottsdale Motor

Mile was born. Automobile dealerships, at its height representing 26 different car brands, sprang up on the north and south sides of this busy street. They were looking to capture folks venturing to Los Arcos, in part because (believe it or not) automobile purchases are more often than not impulse buys. Every community covets auto dealerships because our state and municipalities depend so heavily on sales tax revenue, and for many years McDowell Road was producing an astounding amount of retail sales tax for Scottsdale. It was also Scottsdale’s first tech and major employer center thanks to the massive Motorola presence, which opened in 1956 and has since become a research and manufacturing facility for General Dynamics. The residential areas of southern Scottsdale, most of which were built in the 1950s, supported the businesses of the area and provided much-needed workforce housing for this economic center of the city.

McDowell — Continued on Page 2

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McDowell — Continued From Page 1

Freeways Giveth — and They Taketh Away

Photographs courtesy of City of Scottsdale

As the mall wound down its useful life, the city was also seeing tremendous growth in the north and the completion of a freeway system that would reduce traffic counts on McDowell dramatically. Newer, fancier mall properties rendered Los Arcos obsolete, and the Motor Mile came increasingly under stress. The mall died slowly, and the freeways changed everything quickly. With the completion of the Loop 101 freeway through Scottsdale in the late 1990s, McDowell Road was rapidly becoming an afterthought. Plans for a hockey arena came and went. Automobile dealerships, long the municipal sales tax cash cows, slowly migrated elsewhere, either to the north or to locations with better freeway access. While meeting the greater need of serving the commuting populations, the freeway system left McDowell behind.

The Incredible Assets of McDowell Lost in the challenges of McDowell’s decline were its many incredible assets. McDowell lies at the foot of the Papago Buttes, five minutes from the Desert Botanical Garden and the Zoo. McDowell is twelve minutes from Sky Harbor, a few miles from ASU, five minutes to Downtown and Spring Training baseball, five minutes from two freeways, and boasts affordable and well-built mid-century housing stock unavailable in most parts of the Valley. In 2008, from the ashes of the old Los Arcos Mall, sprang SkySong, the ASU Innovation Center. The corner of Scottsdale Road and McDowell had new life. Being built in phases, SkySong now boasts more than 300,000 square feet of office, a new apartment building wrapping a parking structure and immediate plans for two more office buildings. Housing corporate headquarters for such dynamic companies as Jobing and Ticketmaster, SkySong is also an international gateway, housing start-up

enterprises from around the world. Spin-offs from ASU research abound throughout SkySong and the energy being created there is palpable.

McDowell’s Next Life The next life for McDowell will be as exciting as its storied past. While there remains concern about empty dealerships and as-yet re-purposed spaces along this signature street, there are some good things happening. A group of citizens looking to revitalize McDowell have banded together to

form the Scottsdale Gateway Alliance. This group recognizes the assets of this great place and is working to help return McDowell to greatness. Will McDowell ever produce the same sales tax revenue as once it did? No, not likely. But McDowell will once again, project by project, get a new life. It won’t be a shopping mall or automobile dealerships in the future, but its strengths are too great for McDowell to stay down too long. SkySong will be a catalyst for more innovation, and a bright future for McDowell Road.

Kidder — Continued From Page 1 both in studio and on location. Merestone returned as the event production company for Sterling, ensuring that the event was anything but ordinary. In the pages that follow, you will see profiles of the companies who were finalists and honorees for the 28th annual Sterling Awards. These fine companies all share

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important characteristics. They care about their customers. They care about their employees. They care about their community. And they care about the honor of being declared a finalist for the Sterling Awards. As the leader of an organization that is meant to reflect the values of the business community, I am so proud that the Chamber is able to present

the Sterling Awards each year. Were it possible, we would apply ourselves! Sincerely,

Rick Kidder, President/CEO

Upcoming Signature Events at the Scottsdale Chamber The Chamber is proud to present the following upcoming Signature Events. Individuals may register for all events sponsored by the Chamber by calling 480-355-2700 or through the website at scottsdalechamber.com

Women in Leadership

Scottsdale History Hall of Fame Dinner

Date: February 12, 2014 Time: 11:30-1:30 pm Location: Silverleaf Club at DC Ranch Join the businesswomen of the Scottsdale Area Chamber of Commerce at this second annual signature event designed as a “no fluff” educational and inspirational luncheon about managing work and life while excelling in the professional world and making a difference. Accidental circumstances brought ChildHelp USA founders Sara O’Meara and Yvonne Fedderson from television fame in the 1950s to new lives, changing the fates of thousands of children around the world. These two inspiring women change the world — one child at a time. Come hear why these remarkable women were nominated five times for the Nobel Peace Prize!

Date: April 22, 2014 Time: 5:30-8:30 pm Location: Chaparral Suites Hotel For nearly 20 years, the Past President’s Council of the Scottsdale Area Chamber of Commerce has selected individuals and non-profits from Scottsdale’s past and present who have contributed demonstrably to the rich heritage of Scottsdale for induction into the Scottsdale History Hall of Fame. With inductees dating back to the founder of Scottsdale, Winfield Scott, and living individuals who have made a significant mark on our city, the Scottsdale History Hall of Fame is a Scottsdale tradition.

Scottsdale Chamber Open Golf Tournament Scottsdale Forward: A Path to Progress and Economic Development Date: March 13, 2014 Time: 7:15-10:00 AM Location: Scottsdale Community College Performing Arts Center Presented annually, Scottsdale Forward is an economic development symposium where members of the business community and the community at large gather to listen and provide input on key economic development issues in the city and the region. Featuring guest speakers and an interactive component, Scottsdale Forward has significantly altered the dialogue in our city about economic growth.

Date: April 25, 2014 Time: 1:00 pm Shotgun Location: McCormick Ranch Golf Club – Pine Course What better way to entertain clients, enjoy an afternoon of camaraderie and revel in Scottsdale’s beautiful weather and golf traditions than to play a shotgun tournament with the rest of the business community? Limited to 120 players, the Chamber Open provides fun, golf, competition and a measure of silliness that make it an annual favorite.

the freshest seafood s the finest prime steaks s exquisite wines genuine service s live entertainment 7 nights a week s private dining

mastro’s steakhouse

8852 pinnacle peak road, scottsdale 480.585.9500

mastro’s city hall steakhouse 6991 east camelback road, scottsdale 480.941.4700

mastro’s ocean club

15045 north kierland blvd., scottsdale 480.443.8555

www.mastrosrestaurants.com In Business Magazine

Scottsdale@WOrk - 3

Photograph courtesy of Sergio Dabdoub Photography

Sterling VIP attendees gathered on the roof of the beautiful Hotel Valley Ho before the big event

A Sterling Show!

Celebrating the Essence of Excellence in Business The 2013 Sterling Awards, honoring the best in business, were held on November 14 at a gala luncheon event at the Chaparral Suites Hotel ballroom. For 28 years, the Scottsdale Area Chamber of Commerce has been recognizing businesses that embody the spirit of the Sterling Awards â&#x20AC;&#x201D; excellence, community stewardship and culture.

Awarded in four categories, the Sterling Awards finalists and eventual honorees are chosen by volunteer judges who work under strict guidelines to ensure a fair and appropriate result. This year, more than 50 volunteers worked to make the Sterling process a success, and the Chamber is extremely grateful for the commitment of these businesspeople to make Sterling a quality event and a coveted award.

Award Categories, Finalists and Honorees Thunderbird Artists (Finalist)

Micro Business (1-10 employees) â&#x20AC;&#x201D; Sponsored by Magellan Health Services of Arizona, Inc. Recognizes an emerging business exhibiting success through innovation, creativity and collaboration

Thunderbird Artists is the producer of worldclass fine art festivals: Carefree Fine Art & Wine in November, January and March and the Scottsdale Waterfront Fine Art & Wine events in October and February.

College Prep Mastery, LLC (Finalist) College Prep Mastery, LLC provides college-bound students and their parents all the proven tools to plan for, prepare for and pay for college.

Small Business (11-99 employees) â&#x20AC;&#x201D; Sponsored by Cox Media Recognizes a small company demonstrating innovation, quality, professionalism and commitment to community

GPS Insight (Finalist) Pro One Media Productions (Honoree) Pro One Media Productions is a full-service provider of customized quality video for businesses, organizations and individuals. Sharp images, vivid color, clear sound and creative editing characterize each production to achieve a professional result every time.

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GPS Insight is a leading supplier of GPS fleet tracking software for commercial and government fleets. It utilizes high-quality GPS devices and adds the technology, enhancements and customization that continue to place the company at the forefront of the industry.

In Business Magazine

Telesphere (Honoree) Telesphere provides a new, smarter voice and data solution to give clients the most exciting features available and reliable service without the cost and hassle of maintaining a PBX.

Two Men and a Truck – Scottsdale (Finalist) Two Men and a Truck is a customer-servicebased company that moves people forward. It services the Greater Phoenix area and all of Arizona. It also sells boxes and packing supplies and offers packing services as well. Two Men and a Truck is “the Movers Who Care.”

Big Business (100+ employees) — Sponsored by Scottsdale Healthcare Recognizes a large company making a significant impact on the lives of its employees and the economic fabric of the community

Homeowners Financial Group (Finalist) Homeowners Financial Group is a fullservice, Arizona-based mortgage banker, leading the Valley in residential lending. The company was founded in 2004 by finance and mortgage executives with more than a century of expertise in residential lending.

Scottsdale Community College (Honoree) In addition to traditional programs of study, including university transfer and career programs, SCC offers continuing education for practicing professionals, developmental education, and English as a Second Language.

Non-Profit — Sponsored by APS Magellan Health Services of Arizona, Inc. (Finalist) Magellan Health Services of Arizona is a managed-health care organization. In Arizona, Magellan works in the public sector to ensure behavioral health services funded by Medicaid and other state and federal sources are delivered with high quality and in a timely and cost-efficient manner.

Recognizes a charitable organization contributing to the social, cultural, educational well-being of its constituents

American Cancer Society (Finalist) Nationwide community-based voluntary health organization dedicated to eliminating cancer as a major health problem through research, education, advocacy & service.

Banner Behavioral Health Hospital (Honoree)

Photographs courtesy of Sergio Dabdoub Photography

For more than 30 years, Banner Behavioral Health Hospital has provided a nationally recognized behavioral health care program for teens and adults with psychiatric and substance abuse problems.

National MS Society, Arizona Chapter (Finalist) The Arizona Chapter of the National MS Society is part of a collective of passionate individuals who want to do something about MS now — to move together toward a world free of multiple sclerosis. MS stops people from moving, The National MS Society exists to make sure it doesn’t.

In Business Magazine

Scottsdale@WOrk - 5

The Scottsdale Cure Corridor — Research Today for a Cure Tomorrow Scottsdale has long been recognized as a center for wellness and healthcare, but in September, Mayor Jim Lane staged an event at the Spear Dental Center auditorium for top business and medical professionals in the city to unveil the Scottsdale Cure Corridor. This corridor, loosely bounded by Scottsdale Healthcare’s Shea Campus and the Virginia G. Piper Cancer Center and Mayo Clinic to the east, is emerging as one of the nation’s leading cancer research and treatment locations. The event was headlined by Daniel Von Hoff, M.D., from the Translational Genomics Consortium (TGen) to begin to celebrate the incredible breakthroughs in cancer research being conducted in Scottsdale. A medical genius who somehow can speak about complex medicine in ways the layman can understand, Dr. Von Hoff has devoted thirty years to researching agents

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that can be used to combat and eventually defeat cancer. He and the drug development team at TGen, working in Scottsdale, have conducted clinical trials and brought forth the first drug known to prolong the lives of individuals suffering from pancreatic cancer. The Scottsdale Cure Corridor identifies a commitment on the part of the City of Scottsdale to promote the city as a home for medical research and cutting-edge medical technology. Healthcare is the largest employment sector in Scottsdale and will continue to grow. With the research being conducted today at Scottsdale Healthcare, TGen and Mayo Clinic, Scottsdale will one day be known not only as a beautiful place to visit but as the home of a cure for forms of cancer. For more information, please visit scottsdalecurecorridor.com

In Business Magazine

Visit the New Chamber Web Site Just before Thanksgiving, the Scottsdale Area Chamber of Commerce unveiled its new, member-friendly Web site at ScottsdaleChamber.com. The new site, designed by NuWave Commerce from Chandler and powering a new cloud-based database program from ChamberMaster, is reactive and automatically adjusts its formatting to fit whatever device is accessing it. The membership and visitors to the site will find it better than ever, easy to use, easy to register for events and easy to access information.

Board of Directors Executive Committee Rick Kidder President & CEO Scottsdale Area Chamber of Commerce rkidder@scottsdalechamber.com 7501 E. McCormick Pkwy, Suite 202-N Scottsdale, AZ 85258 Phone 480.355.2700 Fax 480.355.2710 www.scottsdalechamber.com

BOARD CHAIR Eric Larson, AVB Development Partners CHAIR-ELECT Bryce Lloyd, FirstBank of AZ IMMEDIATE PAST CHAIR Kurt Zitzer, Meagher & Geer, PLLP TREASURER Geoff Beer, Crescent Bay Holdings Partner Council Kevin Sellers, First Fidelity Bank

ECONOMIC DEVELOPMENT ADVISORY COUNCIL Don Couvillion, ASU SkySong MEMBER VALUE ADVISORY COUNCIL Pam Kelly, Pro One Media AT LARGE MEMBERS Jennifer Bongiovanni Karas, The Karas Group Kurt Brueckner, Titus, Brueckner & Levine, PLC Angela Creedon, Arizona State University

EMERGING ISSUES Bill Heckman, Heckman Marketing, Inc. PUBLIC POLICY ADVISORY COUNCIL Steve Helm, Scottsdale Fashion Square

Dale Fingersh, The Right Direction Rick Kidder, Scottsdale Area Chamber of Commerce

© 2013 Scottsdale Area Chamber of Commerce. A publication of the Scottsdale Area Chamber of Commerce. For more information or to join the Scottsdale Chamber, please contact us at www.scottsdalechamber.com. Section designed by InMedia Company, LLC.

Join the Scottsdale Area Chamber of Commerce

Serving All of Scottsdale Since 1947 With the help of our committed members, the Chamber:

• Gives business a voice in public policy for economic growth! • Serves and builds the business community! • Arms business people with new skills! • Saves members money! • Forges lifelong friendships and business connections! • Helps business grow!

The Scottsdale Chamber means strength in numbers.

Let Strength Strength in in Numbers Numbers Work Work for for your your Business! Business! Let Contac t the Chamber at 480-355-2700 or at info@scottsdalechamber.com Visit w w w.scottsdalechamber.com for more information

In Business Magazine

Scottsdale@WOrk - 7

Infocus: Grand Openings! 1

1. Scottsdale Chamber CEO Rick Kidder, Gubernatorial Candidate Christine Jones and Partner Council Annual Sponsor, Jerry Schwallier, President â&#x20AC;&#x201C; Arizona Bank and Trust; 2. Chamber Board Chair Eric Larson, Chair-Canada Arizona Business Council Glenn Williamson, Rick Kidder & US Commercial Business Services/Arizona Executive Eric Nielsen; 3. Mail and Copy Center, 7119 E. Shea Blvd., Scottsdale; 4. SunRidge Canyon Golf Club, 13100 N. SunRidge Dr., Fountain Hills; 5. Vapor Vortex, 7219 E. Shea Blvd., Scottsdale; 6. CopperWynd Resort and Club, 13225 N. Eagle Ridge Dr., Fountain Hills

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In Business Magazine

Celebrating 28 years of serving the women business owners of Phoenix

WINTER 2013 • nawbophx.org

The Power of NAWBO… The Power of Giving and Receiving...

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

An age-old question: Which came first, the giving or the receiving? They actually happen all at once — one can’t happen without the other. NAWBO members know this first hand. Many of our members are involved in giving to the organization and to the community. We are dedicated to the success of our members through education and support. This year has been filled with powerful speakers and educational offerings, along with events designed to strengthen the connections between our members, our Corporate Sponsors and the community. We kicked off the Young Entrepreneur’s Academy (YEA) in September. High School students were given the tools to build a business from the ground up in a nine-month program that includes obtaining funding from an investor panel. They will finish with a successful business and an experience that will serve them throughout their lives. Our Mentoring Program for members is a vibrant offering that rewards both the mentors and the mentees. Hands-on experiences that directly affect the bottom line are part of this well-established program. This year, in partnership with the SBDC, the experience will measure the participant’s success. Our annual Red Affair is scheduled for December 11, 2013, at the Scottsdale Resort and Conference Center. All are invited to attend this event to celebrate our members and the holiday season. The event raises funds to support the Child and Family Resource Center with a Giving Tree along with the Women’s Enterprise Foundation that gives grants and scholarships to emerging entrepreneurs. Giving and receiving are happening all at once. Join NAWBO and feel the power! For information on the organization, please check out www.nawbophx.org or follow us on Facebook.

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Emily Schwartz — The Time Goddess

Helping Small Business Succeed and Grow Through a Free E-Book

nawbophx.org

The Name ‘Hope Ozer’ Carries a Lot of Weight in Phoenix

2013-2014 Board of Directors

Jackie Wszalek President, NAWBO Phoenix

Jackie Wszalek, President, NAWBO-Phoenix 2013-2014 Despins Printing and Graphics 15770 N. Greenway Hayden Loop Suite 101 Scottsdale, AZ 85260 480-483-0166 phone www.despinsprinting.com Years in Business: 5 Years in NAWBO: 5

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2013-2014 Executive Committee

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Save the Date

NAWBO NEWS

Emily Schwartz — The Time Goddess Emily Schwartz

NAWBO NEWS

The holidays can be stressful and demanding, if we let them. So many gifts to buy, too many things to do and so little time. It doesn’t get much more stressful! Our local time-efficiency expert, Emily Schwartz, offers a few suggestions to help you get through the holidays with less stress and do what really counts — enjoy time with family and friends.

opportunity can quickly become a bad habit. Log out of your favorite apps or turn off notifications when you’re having family time so you won’t be tempted to reach for your phone at every moment. Is your smartphone also your camera? Put it on “airplane mode” so you can capture family holiday fun without being a slave to your email while you’re trying to enjoy yourself.

How to organize your time when you expect holiday guests (either for parties or overnight visits):

When planning holiday parties, it’s important to keep in mind that people remember the good times they share with you, not how clean your house was or how elaborately decorated the table. Pick one room of your house as the “staging area” where you can stash holiday clutter without worrying about keeping it presentable for guests. Plan your menu early so that when people say, “What can I bring?” you have an answer! Never turn down holiday help!

How to “reset” and get back on track if you get overwhelmed during the holidays with too many things to do:

When the holidays overwhelm you, take a time-out evening. Order a pizza, eat on paper plates, and turn off the TV. Bust out your favorite board game with your family or catch up with a good book. We put so much pressure on ourselves to make each holiday season “perfect.” We’re flooded with advertisements and crowds that make us feel guilty for not throwing the perfect holiday gathering and having all our shopping done by Black Friday. Unplug from all of that for an evening and just relax.

‘Rules’ or recommendations so people don’t let e-gifts rule their lives:

Gadgets and apps can be helpful and fun, but they can also be real time killers. Time Killers are little things that waste your time and steal your focus without your permission. This especially applies to smartphones. Checking your email and social network at every

Emily Schwartz is the founder of The Time Diet. She is a speaker and educator dedicated to helping people find simple strategies to manage their time. Emily’s advice comes from years of managing a rigorous academic schedule through three college degrees while balancing a teaching Emily Schwartz job and starting her own business. Emily@TheTimeDiet.org She is the author of two time www.TheTimeDiet.org management books as well as “The Years in Business: 4 Time Diet” blog. Years in NAWBO: 1

NAWBO NEWS

Helping Small Business Succeed and Grow Through a Free E-Book by Debra Boyd

Anyone who owns a small business will eventually read or hear that 80 percent of small businesses fail within the first seven years. They will hear that most businesses can increase their profits by 8 percent just by improving their management style. Who came up with these numbers and percentages, and have they been verified? Debra Boyd, owner of DLB Consulting, found Debra Boyd out that the numbers didn’t lie. A few years ago, she took a temporary hiatus from her practice, then redirected her focus back to business and started looking at her clientele over the past 15 years. Sure enough, 80 to 90 percent of the businesses she had worked with were out of business or barely hanging on with a skeleton crew. Another thing she realized after her hiatus is that business isn’t like it was a few years ago. The economy has taken a big hit on businesses, and although business owners are bouncing back, they are more cautious. Yet, she hasn’t seen anyone change the way they manage their business or their finances. They may be holding on tighter to their money, but that doesn’t mean they’re managing it the best way. Debra had an “ah-ha” moment when she realized that cash control and running a business isn’t about starting at step one and working through a specific system. As a small business advocate, she has always felt that

NAWBO NEWS

each business is on its own page and that customized services save a lot of time, frustration and money. Then, a business associate showed her how easy it is to write an e-book. She knew she wanted to help small businesses and figured if entrepreneurs feel they can’t afford a consulting session, at least they can afford a free e-book. Debra’s first book, Cash Flow Problems: Don’t Let Them Sink Your Ship – 20 Days To Turn Your Business Around, teaches that cash management doesn’t have to start with any one certain step. We can change the way we manage our business, our staff, even our cash by starting where we have the courage to start. As a consultant, Debra encourages business owners to pursue all they can on their own until they know that to move forward they need assistance. That’s one way to spend and invest wisely — to go as far as you can on your own, and be prepared and ready to accept help to progress to the next level. Debra’s first book can be found on her Debra Boyd website or blog. For a free download Years in Business: 16 www.dlbconsulting.com or Years in NAWBO: 2 http://dlbconsulting.com/wordpress/.

The Name ‘Hope Ozer’ Carries a Lot of Weight in Phoenix

Hope Ozer

Don’t mess with Hope! This petite grandmother, founder and publisher of the CITYSunTimes newspaper, holds Arizona and world records in powerlifting! She’s also trained in strategic firearms defense and is a damn good shot! In 2008, Hope started powerlifting. She’d never been athletic or competed in any sports but it was time to push herself outside of her comfort zone. Her mother always told her, “You can do anything if

you set your mind to it.” At her first competition she felt like she was going to throw up the entire time! Twenty-nine trophies later, and she is consistently in awe of the amount of weight she can lift. As with everything she’s ever done — she took a deep breath — held her nose — and jumped in. And considering all of the awards and records she holds, it has obviously paid off. Hope competes in the Masters Pure unequipped category. Unequipped powerlifting means the lifter may only wear wrist wraps, weightlifting shoes and approved powerlifting belt. All lifts rely entirely on the lifter’s own strength unassisted, and their technique. Masters, according to Hope, just means old! Some of her records include: • Squat: Went from 115.74 lbs. in first competition to 160 lbs. most recent. State and world records. • Bench Press: Went from 71.65 lbs. in first meet to 90 lbs. most recent. State record. • Deadlift: Went from 165.35 lbs. in first meet to 203 lbs. most recent.

old granddaughter standing on my thighs — and have her giggle with joy incessantly. What could be better than that? Not bad for a ‘Glammie’ — the name that granddaughter Oakley calls me!” And if that’s not enough, in addition to several other recognitions, Hope was honored with the Frank W. Hodges Alumni Achievement Award 2010 which “recognizes alumni of Scottsdale Leadership who have made a significant and notable contribution to the community.” Hope Ozer, Publisher Hope moved to Paradise Valley CITYSunTimes Founded and been publishing from New York with her family since 2002. in 1984. She has been an active 480-991-8061 office member of the community, holding 602-284-2222 cell leadership positions in a myriad of hope@citysuntimes.com community organizations. www.citysuntimes.com So Hope, would you like to be Years in NAWBO: A while! my bodyguard?

Named 2011 NASA Athlete of the Year for Women’s Powerlifting, Hope recommends the sport without reservation. “I have no back pain, no neck pain, became strong enough to do squats with my then three-year-

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NAWBO NEWS

Director of Corporate Partners

2013-2014 Board of Directors

Lynda Bishop lkbishop@cox.net Summit Alliance Solutions, LLC 3719 W. Fallen Leaf Lane, Glendale, AZ 85310 Phone: 623-215-6587 Cell: 480-751-9509

Director of Membership Services

Melissa Debnar, MS, CIE mdebnar@kw.com Keller Williams Legacy One Realty Cell: 480-382-2837 Office: 480-444-7200 Fax: 480-444-7201

Membership Retention Chair

Joan Laubach joan.laubach@yahoo.com Your Wealth and Health 9743 W. Horse Thief Pass, Tolleson, AZ 85353 Phone: 623-594-3533 Cell: 602-527-1970

Communications Co-Chairs

Martha Knight martha.a.knight@gmail.com Arbonne International 1327 E. Sunburst Lane, Tempe, AZ 85284-1653 Phone: 480-298-7592

Kristin Slice kristin@threedogmarketing.com Three Dog Marketing P.O. Box 54804, Phoenix, AZ 85078 Phone: 602-499-5607

Director of Education

Nancy Sanders Nancy@ThreeDogMarketing.com Galaxy Consulting Services 4433 E. Acoma Drive, Phoenix, AZ 85032 Phone: 602-476-4509 Cell: 602-476-4509

Neighborhood NAWBO Chair

Connie Zimmerlich connie@clickchickphotography.com Click Chick Photography 11194 E. North Lane, Scottsdale, AZ 85259 Phone: 480-748-9401

Young Entrepreneurs Academy Program Manager

Lynda Bishop lkbishop@cox.net Summit Alliance Solutions, LLC 3719 W. Fallen Leaf Lane, Glendale, AZ 85310 Phone: 623-215-6587 Cell: 480-751-9509

Director of Public Policy

Wendy Anderton wendy@kylemoyer.com Affinity Web & Graphic Design 8390 E. Via De Ventura, Suite F110 Scottsdale, AZ 85258 Phone: 480-941-0781

Community Alliances/Diversity Chair Choo Tay ctay@media88.com Media88, Inc. 4757 E. Greenway Road, #107B-298 Phoenix, AZ 85032-8513 Phone: 602-788-8899

Community Service Chair Phaedra Earhart phaedra.earhart@gmail.com Farmers Insurance 1423 S. Higley Road, Suite125 Mesa, AZ 85206 Phone: 602-616-7096 Fax: (480)835-5031

Ken Blanchard College of Business | College of Education | College of Nursing & Health Sciences | College of Liberal Arts | College of Fine Arts & Production

Online • Campus

A R I Z O N A’ S P R I VAT E U N I V E R S I T Y S I N C E 1 9 4 9 Get started today! 855.287.0174 | www.gcu.edu/inbusiness Grand Canyon University is regionally accredited by the Higher Learning Commission of the North Central Association of Colleges and Schools. (800-621-7440; http://www.ncahlc.org/ ).

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Event Planning Co-Chairs Christie Cothrun phoenixfloraldesign@gmail.com Phoenix Floral Design 3802 W. Cavalier Drive Phoenix, AZ 85019-1720 Phone: 602-738-8571

Carmella Dodge carmella@diamondvisionevents.com Diamond Visions, Inc. 13916 E. Geronimo Road Scottsdale, AZ 85259-3722 Phone: 480-262-5220

Womenâ&#x20AC;&#x2122;s Enterprise Foundation (ex-officio) Julie Heiland jheiland.interiors@gmail.com J. Heiland Interiors 428 E. Thunderbird Road, Suite 338 Phoenix, AZ 85022-5229 Phone: 602-320-6430

2013-2014 Executive Committee

President

Finance Director

President-Elect

Immediate Past President (Past President Chair)

Jackie Wszalek jackie@despinsprinting.com Despins Printing & Graphics 15770 N. Greenway Hayden Loop, Suite 101 Scottsdale, AZ 85260 Phone: 480-483-0166 Cell: 602-810-4005 Fax: 480-483-9109

Dorothy Wolden dwolden@gravityphx.com Gravity Webworks 130 N. Central Avenue, Suite 301 Phoenix, AZ 85004 Phone: 602-258-1300 Cell: 480-220-7293

Secretary

Melanie Dunlap melanie@peacefulspiritcenter.com Peaceful Spirit Enrichment Center 49014 N. 24th Avenue New River, AZ 85087 Phone: 623-465-5875 Cell: 623-261-1723

Julie Kern julie.kern@bridgefinancialstrategies.com Bridge Financial Strategies 8550 E. Shea Boulevard, Suite 130 Scottsdale, AZ 85260 Phone: 480-609-4332 Fax: 877-395-1502 Cell: 480-510-5750

Lynda Bishop lkbishop@cox.net Summit Alliance Solutions, LLC 3719 W. Fallen Leaf Lane, Glendale, AZ 85310 Phone: 623-215-6587 Cell: 480-751-9509

Director of Administration â&#x20AC;&#x201D; NAWBO Office

Suzanne Lanctot suzanne@nawbophx.org SOS-Association Management Solutions 7949 E. Acoma Drive, Suite 207 Scottsdale, AZ 85260 Phone: 480-289-5768 Fax: 480-289-5765 Cell: 480-332-5898

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NAWBO PHOENIX Corporate Partners

SAVE THE DATES: Women Enterprise Foundation

Chairman Corporate Partner Grand Canyon University Presidential Corporate Partners National Bank of Arizona SRP Presidential Media Partner Media88 Galaxy Consulting Services Gravity Webworks Executive Corporate Partners Allstate Insurance AZ Tech Finders Border States Electric Kolbe Corp Larry Miller Toyota Prudential Insurance Company of America Newtek Technology Services Snell & Wilmer Southwest Gas Wal-Mart Strategic Media Partners KFNX Radio 1100 AM Networking Phoenix.com Executive Media Partners Arizona Capitol Times CITYSunTimes Despins Printing Easel Photography In Business Magazine Money Radio 1510 AM Business Corporate Partners AmTrust Bank APS Auto Glass Experts by The Car Source Bank of Arizona Benjamin Franklin Plumbing E&J’s Designer Shoe Outlet Infiniti HR Orchard Medical Consulting Schmeiser, Olsen & Watts, LLP State Farm

NAWBO NEWS

A great time was had by all at the Women’s Enterprise Foundation’s fifth annual bowl-a-thon. Bowlers and ringers raised more than $ 1,500. WEF provides scholarships and grants for emerging women business owners. For more information on events, scholarships and grants, please visit: www.wefphx.org.

The Power of Leadership

Wednesday, January 8, 2014 Luncheon 11 a.m. – 1 p.m. Speaker: Renie Cavallari, CEO & Chief Inspirational Officer Aspire. People. Performance. Profits. • Hear about the 4 levels of performers/ performing teams • Engage in interactives that inspire innovation in work and life • Understand and learn to apply the 6 Pillars of Community

NAWBO University

Wednesday, January 8, 2014 9:30 a.m. – 11:00 a.m. Deborah Johnson High Stakes Communication Topic - Successful Communication in a High-Stakes Environment

Joie de Vivre

Thursday, February, 20, 2014

December 2013 Red Affair

Wednesday, December 11, 2013 11:00 AM - 01:00 PM Scottsdale Resort and Conference Center 7700 E. McCormick Pkwy., Scottsdale, AZ 85258 Don’t miss the popular NAWBO Phoenix “Red Affair” Luncheon! Join us for our holiday celebration! Join NAWBO Phoenix at the beautiful Scottsdale Resort & Conference Center for a spectacular holiday luncheon, which includes the traditional custom red dessert! Network with our amazing members, guests and colleagues, and

support the companies showcasing themselves through sponsorships, raffles and a silent auction! Festive red holiday attire requested. You won’t want to miss all the fun and festivities the Red Affair offers! Complimentary valet parking. Festive Red Holiday Attire Requested Gold Sponsor - Southwest Gas

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 to 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 LinkedIn, 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 nawbophx.org or go directly to our Facebook account at facebook.com/NAWBOPhx and Twitter account at twitter.com/NAWBOphx. Special thanks to Communications Consultant Peg Mulloy (Galaxy Consulting Services) for writing and editing this supplement. Please contact Peg if your woman-owned business has great news to share. (602.653.1580 or Peg@GalaxyConsultingServices.com).

Index Index by Name

DiVall, John, 14

Marchetta, Ralph, 22

Scappaticco, Tom, 46

Altieri, Tom, 30

Downes, Larry, 29

McGuire, Meredith, 30

Smith, Brad, 20

Anderson, Robert, 12

Emerick, Steven, 66

Merritt, Renee, 44

Valenzuela, Daniel, Councilman, 31

Atkinson, Jessica, 16

Fahlman, Michael, 66

Nunes, Paul, 29

Vottima, Tony, 22

Beyer, Thomas, 34

Hamer, Glenn, 31

O’Dowd, Michael, 38

Watson, Sandra, 31

Brown, Michael, 16

He, Pete, 22

Oldfather, Bob, 12

Wince, Ron, 18

Bryant, Adam, 29

Hetrick, John, 22

Orr, Mike, 40

Winn, Jessica, 16

Byers, Reynolds, 22

Hoskins, Kami, 28

Owens, Kevin, 45

Winn, Mike, 16

Caldwell, Bo, 12

Kennedy, Donna, 14

Ransdell, Jean, 46

Zapata-Ross, 55

Castro, Chey, 43

King Smith, Lynne, 20

Reiter, Patricia, 11

Zylstra, Steven, 31

Creecy-Herman, Megan, 14

Lein, Howard, 40

Riley, John, 22

Crow, Michael, Ph.D., 31

Leiphart, Alex, 16

Rivenburgh, Diana, 29

Decker, Wyatt W., M.D., 31

Lopez, Steve, 22

Rosenthal, Marnie, 47

Grant Thornton, 66

Scottsdale Area

Index by Company Acura, 36 Ahwatukee Foothills Chamber of Commerce, 32

Greater Phoenix Chamber of Commerce, 32 Henkel, 22

University of Phoenix, 13

Southwestern Business

W. P. Carey School of Business, 22, 40

Financing Corp., 10

Herman Miller, 36

Appleite, 16

Infusionsoft, 35

SRP, 22, 27

Arizona Assistance in Healthcare, 30

Jennings, Strouss & Salmon, LLC, 28

Stearns Bank, 48

Arizona Chamber of Commerce and

K1 Speed, 6

Stoney-Wilson

KTAR News Talk 92.3, 19

Arizona Commerce Authority, 4, 31

Liberty Center at Rio Salado, 14

Arizona Hispanic

Liberty Property Trust, 14

Chamber of Commerce, 32 Arizona International Growth Group, 32 Arizona Small Business Association, 32 Arizona State University, 11, 22, 31, 40 Arizona Technology Council, 31, 32 Arizona Theatre Company, 39 Avnet, 22

Mastro’s Restaurants, 51

Mercedes-Benz of Scottsdale, 68 Mesa Chamber of Commerce, 32

Octane Raceway, 17 Oil & Vinegar, 16

Bookman’s Entertainment Exchange, 12

Olive & Ivy, 38

Buca di Beppo, 38

Orange Sky at Talking Stick Resort, 38

Cassidy Turley, 15

Organization of Women in International Trade – Phoenix, 33

Chandler Chamber of Commerce, 32

Phoenix Art Museum, 40

Chey Castro Group, The, 43

Phoenix Symphony, The, 17

Children’s Museum of Phoenix, 39

Phoenix Suns, 9, 22

Clean Air Cab, 22

Prisma, 12

Coldwell Banker

Quarles & Brady, 66 Regus, 35

Dell, 36

Renegade, 38

Driver Provider, The, 21

Rob and Melani Walton Sustainability

Grand Canyon University, 62

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TeleTech, 18 Tempe Chamber of Commerce, 33 Tempe, City of, 14

West Valley Women, 33 WESTMARC, 33 Women of Scottsdale, 33 Bold listings are advertisers supporting this issue of In Business Magazine.

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RE/MAX Excalibur Realty, 40

Cox Communications, 22, 67

Go Green Phoenix, 33

Business Consulting, 21

Women Business Owners, 32, 57

BMA Phoenix, 33

Global Institute of Sustainability, 11

Waste Management Phoenix Open, 7

National Association of

Bibby Financial Services, 6

Glendale Chamber of Commerce, 32

Waste Management, 37

McCarthy Building Companies, 12

North Phoenix Chamber of Commerce, 32

Previews International, 44, 45

Washington Federal, 16

Mayo Clinic of Arizona, 31

Beyer Management Consulting, Inc., 34

Central Phoenix Women, 32

TicketForce, 20

Sennheiser, 36

Alliance Bank of Arizona, 2

Industry, 31, 32

Thunderbirds, 30

Chamber of Commerce, 33, 49

Solutions Initiatives, 11 Russ Lyon Sotheby’s International Realty, 43, 46, 47 SCF Arizona, 3

D e c e m b e r 2013

Roundtable

A Candid Forum

Ethics, Accounting and Whistleblowing Companies must weigh their response and retaliation under the whistleblowing protections of Dodd-Frank and the Affordable Care Act by RaeAnne Marsh The award of more than $150,000 to a whistleblower that was announced this past October by the Securities and Exchange Commission calls attention to what some see as a shortcoming in the whistleblowing provision of the Dodd-Frank Act enacted in 2010: An employee can go directly to the SEC to report an alleged violation instead of informing his employer first. With the SEC awarding 10-30 percent of the amount levied against a company for a violation, the bounty provision sets up a tempting scenario. To counter this, “Companies are working hard to incentivize employees to report internally,” says Steven Emerick, an attorney in Quarles & Brady’s Phoenix office who focuses his practice on corporate finance, securities and business transactions, noting the importance of creating a company culture of being intolerant of misconduct, at all levels. If a company’s management is informed there may be a violation, it can respond appropriately before it becomes a big problem. Recognizing this, the SEC regulations include a compromise that allows a whistleblower to file an internal report first and get credit for the tip as of that date as long as he files the report with the SEC within the following 120 days. The company, then, has the 120-day window to conduct its own investigation and deal with infractions. But it remains under the gun, as the employee could decide at any time during those 120 days to file with the SEC. “The company must take the matter seriously even if it knows the allegation is based on incomplete information,” says Michael Fahlman, a partner in Forensic Valuation Services at Grant Thornton in Phoenix. An employee may see only part of the story and conclude there is an ethical or compliance issue, and may continue to bring it up. When the company responds, says Fahlman, “Be sure to provide enough information to the person to satisfy the allegation so he doesn’t continue to bring it up.” Not all violations are in regard to financial malfeasance, points out Fahlman, but both the level of interest and the stakes involved are higher if the allegation involves financial statements than if the issue is employee fraud or theft. And the Dodd-Frank Act, by expanding the SEC’s bounty program for whistleblowers, presents a potentially distorting influence on corporate governance. “It results in expensive investigative efforts,” Emerick says, noting that companies previously could have explored allegations and then decided they were not worth a full-scale investigation. “But when the SEC comes calling, a company needs to have performed a comprehensive review; it can’t be in the position of having the SEC inquire about a whistleblower tip and the company not having done absolutely everything to examine it.” Fahlman suggests an initial response is evaluating who the stakeholders are, which can be shareholders, employees, regulators, outside auditors, vendors and customers. “Manage the information flow so the company is putting itself in the best position to deal with the severity of the issue yet be responsive to the company’s various

D e c e m b e r 2013

stakeholders.” As to whether the investigation should be done by in-house or outside auditors, he says there are no firm guidelines, but usually an outside professional will be hired in cases of financial allegations against a public company, to make sure there is a level of objectivity and independence in conducting the investigation. Whistleblowers are protected under the Sarbanes-Oxley and DoddFrank acts against retaliation. Marian Zapata-Ross, an attorney in Quarles & Brady’s Phoenix office who practices in the area of labor and employment law, points out that whistleblower protections under the Patient Protection and Affordable Care Act are much broader. Any employee who provides information about a PPACA Title I (providing quality healthcare for all Americans) violation is protected against adverse action or retaliation, as is any employee who refuses to participate in an activity if he has a reasonable belief that the activity violates the Act’s mandates — even if, in fact, it does not. Furthermore, “retaliation” is broadly construed as any change in employment condition after the employee engages in the activity. Also, if an employee receives a healthcare subsidy and, as a result, receives a change in employment condition, the employee could argue he is being retaliated against. “The employer may have a good reason for the change, but the timing raises the question,” Zapata-Ross notes. She points out two other significant aspects of the whistleblowing protection in regard to PPACA: Someone other than the employee can bring a claim on the employee’s behalf; for instance, the employee may be a quiet type of person, but the spouse may be more outspoken. And if there is any retaliation, the employee need only show that the protected activity was a contributing factor in the adverse employment action to prevail in his complaint. What’s important for employers is to have clear policies regarding the prohibited concern, says Zapata-Ross. “Consistently enforce them, and document carefully all infractions and the disciplinary action.” Grant Thornton grantthornton.com Quarles & Brady LLP quarles.com

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