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CONNECT » GUIDE » INSPIRE

JULY // AUGUST 2016

2016

MOST INFLUENTIAL WOMEN PAGE 33

Arizona Chamber of Commerce & Industry

62

Healhcare Report

66

Visit Glendale

76

WESTMARC

81


World Class Amenities Endless Possibilities Here, outdoor adventure awaits, history is ready to be retold and family fun is around every corner.


You’ll Love Every Minute Glendale, Arizona & the West Valley are more than a perfect blend of the old and the new, the wild and the tame, the luxurious and the rustic. With so much to see and do, you’ll love every minute of your visit. Call us for your personalized itinerary at 623.930.4500. visitglendale.com


Avondale Buckeye El Mirage Glendale Goodyear Laveen Litchfield Park

VisitGlendale

Peoria Sun City Sun City West Surprise Tolleson Wickenburg Youngtown

@VisitGlendaleAZ


Table Of Contents 6

Up Front

12

CEO Series

14

Law

18

Banking

22

Technology

24

Workforce

28

Marketing

30

Dining

33 2016 Most Influential Women 62

Arizona Chamber of Commerce & Industry

66

Healthcare Report

76

Visit Glendale

81

WESTMARC

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33 Honoring influential women

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The July issue of Az Business is always our most popular issue because it features the Most Influential Women in Arizona Business. This year we had some fun with the issue and did a group shot for the cover. The image was shot at the Musical Instrument Museum, one of the nation’s top attractions and workplace of April Salomon, one of this year’s most influential women. In case you’re wondering, here’s who is on the cover and be sure to read all about these amazing leaders starting on page 33. 1. Sandy Gibson, BCBSAZ 2. Nicholle Harris, Gust Rosenfeld 3. Kimberly Anderson-Matich, Anderson Security Agency 4. Sintra Hoffman, WESTMARC 5. Roxann Gallagher, Sacks Tierney P.A. 6. Susan Brichler Trujillo, Quarles & Brady 7. Cynthia A. Ricketts, Sacks, Ricketts & Case LLP 8. Alexi Venneri, Digital Air Strike 9. Mirja Riester, RIESTER 10. Sharon Grambow, Sun Health Senior Living 11. Kami Cothrun, Pieceful Solutions 12. Dr. Jasgit Sachdev, HonorHealth 13. Deanna Wise, Dignity Health 14. Heidi McNeil Staudenmaier, Snell & Wilmer 15. Cathy Reece, Fennemore Craig 16. Karen S. Gaylord, Jennings, Haug & Cunningham 17. Kim Sabow, Arizona Lodging and Tourism Association 18. Molly Greene, SRP 19. April Salomon, MIM 20. Jody Sarchett, Lovitt & Touche 21. Kate Maynard Hickman, Alliance Bank 22. Sharon Bondurant, Tech Finders 23. Pam Nenaber, Banner Pharmaceutical Operations 24. Clare H. Abel, Burch & Cracchiolo, P.A. 25. Dr. Parul Goel, Barrow Neurosurgical Associates

26. Dawn Nagle, Metro Phoenix Export Alliance 27. Lisa Urias, Urias Communications 28. Trish Stark, First Western Trust 29. Dr. Janice Johnston, Redirect Health 30. Dr. Melanie D. Logue, Grand Canyon University 31. Linda Little, iHeartMEDIA 32. Mary Orlando, USAA 33. Jalina Kerr, Charles Schwab & Co. 34. Kate Gallego, City of Phoenix 35. Jaime R. Daddona, Squire Patton Boggs 36. Dawn Rogers, 2017 Phoenix NCAA Basketball Final Four 37. Christina Burroughs, Miller Russell Associates 38. Melanie Pate, Lewis Roca Rothgerber Christie 39. Ruth Engle, Troon Golf Not pictured: Margery Brown, GPEC; Roopali Desai, Coppersmith Brockelman; Nima Kelly, GoDaddy; Deborah Ostreicher, City of Phoenix; and Dr. Cecilia Rosales, University of Arizona College of Public Health.

Michael Gossie Editor in chief michael.gossie@azbigmedia.com


SHOUT-OUTS

President and CEO: Michael Atkinson Publisher: Cheryl Green Vice president of operations: Audrey Webb

Resolution Copper digs the environment

EDITORIAL Editor in chief: Michael Gossie Associate editor: David McGlothlin Interns: Jesse Canales | Matt Durack | Samantha Pouls Gianna Tracey Contributing writers: Alison Bailin Batz | Melissa DiGianfilippo Steven G. Zylstra

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he Arizona Mining Association presented its Sustainability, Preservation and Diversity in the Environment (SPADE) award for environmental excellence to Resolution Copper. The award, which is AMA’s top recognition for exemplary achievement in environmental stewardship, recognizes individuals, businesses, organizations and agencies that have made a remarkable contribution to invest in creative ways to protect and preserve Arizona’s precious natural resources. Resolution Copper is developing one of the largest copper deposits in the world in the area of the former Magma Copper mine near the town of Superior, while protecting the area’s unique natural surroundings and cultural heritage.

Phoenix Children’s Hospital earns accolades Phoenix Children’s Hospital once again has been named to U.S. News & World Report’s 2016-17 Best Children’s Hospitals rankings, the only Arizona hospital to make the prestigious list. U.S. News & World Report’s national publication ranks children’s hospitals annually for its clinical expertise and patient outcomes in 10 medical specialties. For the first time, Phoenix Children’s is now ranked in all 10 categories. The rankings help guide families to make the best medical care decisions for their children. Families can look up the new rankings and detailed information about each hospital for free at usnews.com.

Alliance Bank improves education

ART Art director: Mike Mertes Graphic designer: Anita Richey Intern: Shannon Finn DIGITAL MEDIA Digital editor: Jesse A. Millard MARKETING/EVENTS Marketing & events manager: Heidi Maxwell Marketing coordinator: Kristina Venegas OFFICE Special projects manager: Sara Fregapane Executive assistant: Mayra Rivera Database solutions manager: Cindy Johnson AZ BUSINESS MAGAZINE Senior account manager: David Harken Account managers: Ann McSherry | Bailey Young AZRE | ARIZONA COMMERCIAL REAL ESTATE Director of sales: Jeff Craig

Alliance Bank of Arizona announced a $100,000 scholarship donation to College Success Arizona, which will benefit students in Phoenix-metro, Tucson and Northern Arizona enrolling in a community college. Along with the scholarships that will be distributed by College Success Arizona to 20 students over a twoyear period beginning in spring 2016, Alliance Bank is initiating a campaign to appeal to other local businesses in order to raise awareness about the need to improve Arizona’s education system and the importance of workforce development.

AZ BUSINESS LEADERS Director of sales: Sheri Brown

HomeSmart gives students a boost

AZ BUSINESS ANGELS Director of sales: Felix Mayo

HomeSmart International recently announced the franchising company and more than half of its franchisees nationwide will partner together to launch a program dubbed Tools 4 Schools by HomeSmart to donate school supply necessities to thousands of children who desperately need them for the 2016-17 school year.

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RANKING ARIZONA Director of sales: Sheri King EXPERIENCE ARIZONA | PLAY BALL Director of sales: Jayne Hayden CREATIVE DESIGNER Director of sales: Joe Freedman

Az Business magazine is published bi-monthly by AZ BIG Media, 3101 N. Central Ave. Suite 1070, Phoenix, Arizona 85012, (602) 277-6045. The publisher accepts no responsibility for unsolicited manuscripts, photographs or artwork. Submissions will not be returned unless accompanied by a SASE. Single copy price $4.95. Bulk rates available. Copyright 2016 by AZ BIG Media. All rights reserved. No part of this publication can be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system, without permission in writing from AZ BIG Media.


Honoring Arizona’s Most Admired Companies at the most celebrated awards dinner in the state!

Save the date! Thursday, September 15, 2016 6:00 - 8:00 p.m.

Chateau Luxe 1175 E Lone Cactus Dr. Phoenix, AZ 85024

Honored for outstanding

• Leadership Excellence • Social Responsibility • Customer Excellence • Workplace Culture • Innovation Sponsorships available Presented by:

602.227.6045 | azBIGmedia.com


UP FRONT

Child’s play Arizona’s leading adoption attorney celebrates 25 years of changing lives

Tara Kitcheyan Senior advisor on Native American affairs Resolution Copper

BUILDING FAMILIES: Kathryn Pidgeon is celebrating the 25th anniversary with her firm, Kathryn A. Pidegon, P.C., a law firm dedicated to adoption law and the best interests of children in the state. PHOTO BY MIKE MERTES, AZ BIG MEDIA

By JESSE A. MILLARD Background: Kitcheyan is a member of the San Carlos Apache Tribe and the daughter of Kathleen Wesley-Kitcheyan, the first woman elected to serve as chairwoman for the San Carlos Apache Tribe. Advice: “It is important to make the commitment to the industry, dedicate your time and attention to your job and put your whole heart into what you are doing. I have had great mentors at Resolution Copper who have taught me that success in small proportions leads to success in greater proportions and that my professional success contributes to the overall success of our company.” Greatest achievement:“I am most proud of my work with my own people, the San Carlos Apache. I have become the voice at the corporate level within the company for Arizona tribes, and as an Apache woman, anytime we can be a voice for the people, it is something to be proud of.” To read more about the best and brightest business leaders in Arizona, get a copy of the 2016 edition of Az Business Leaders at azbigmedia.com.

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athryn Pidgeon always wanted to be a teacher, but her father convinced her to go to law school, something she approached “halfheartedly.” After graduation, Pidgeon still considered becoming a teacher, but her credits wouldn’t roll over, so she ended up working in construction law. Pidgeon’s dream of working with children would eventually be realized when she found her passion and started working at an adoption agency after having her first child. “That changed my world, because I fell in love with the law of adoptions,” Pidgeon says. “When I went to work with the adoption agency, it was a moment in time where all of this law background could be used to help children.” Not only was Pidgeon’s life changed, so were the lives of the children she would come to help in the years to come. Eventually, Pidgeon started her own practice — Kathryn A. Pidegon, P.C. — to help children. For her first year, Pidgeon didn’t

draw a salary and then the phone calls started coming in. She started placing children and matching birth mothers with prospective adoptive parents. For 25 years, Pidgeon has worked on thousands of adoptions and foster care cases. Many of the children she initially found homes for are now starting to invite her to graduation ceremonies. Striving to help the thousands of children in the foster care system, Pidgeon was one of the key people who helped form the Maricopa County National Adoption Day Foundation, a nonprofit charity that helps find hundreds of children a permanent home. A lot of Pidgeon’s focus now is working with the state to find foster children a “forever home,” she says, which is a very rewarding experience. “To watch the transformation, both for the families that are building their families through adoption and the (foster) children who, for the first time, have permanency and love, it’s pretty powerful,” she says.


ROCK THE VOTE! Which companies would you recommend doing business with? Be a part of Arizona’s largest business opinion poll.

Voting ends July 31, 2016 Visit azBIGmedia.com

! e r e h k Cli c Voting is an annual process.*Vote for one company, in one subcategory once per hour.


UP FRONT

Personality testing may pay off as a hiring tool F

irst, the good news. The unemployment rate is at an all-time low and while the fluctuating labor force may be a driver of the current stats, the fact is, companies are hiring. The not-so-good news is that you, as a business owner or executive, have new positions to fill and stacks of resumes. How do you choose candidates who are not only right for these roles, but also have the aptitude to contribute to your organization for the long haul? Personality testing is a viable answer. The question then becomes what do personality tests really tell you and how do you use them in a way that best benefits your organization. There are dozens of tools available and many are extremely valuable. These tools help you gain Jodi Low clarity and insight into how others Workforce think and act and unquestionably, are worth the time and expense. However, much like how some doctors are better than others, the same is true with personality assessments. Some are more valuable than others. The tool of choice for U & Improved, a Scottsdale-based leadership development and training organization, is Emergenetics, a personality assessment framework that measures how people think and behave. Emergenetics has been

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an invaluable tool to the organization and countless companies they’ve trained for two key reasons. One, the resulting profile is easy to understand, remember and apply. Two, the Emergenetics program requires a certified trainer to administer the profiles, so that the information is understood both by the business owner/manager and the profile recipient. It’s all too easy to use the resulting information in a way that traps a staff member or potential employee in a box. As an example, the Myers-Briggs personality test classifies a person as either an introvert or extrovert. Someone designated as an “E,” might be considered for a more social, interactive position while an “I” might be overlooked. With the varying degrees of these designations, it’s a piece of information that should be considered, but not used to make final hiring decisions. Although classifications can give you a baseline of where a person might thrive and be energized as opposed to limited, using Emergenetics can show you where a person is energized and illuminates his or her gifts rather than limitations. Bottom line, yes, personality testing can be a valuable part of the hiring process—as long as they are administered properly and used in a positive manner. It can be a game changer and perhaps exactly what you need to make the decision between a good candidate and a great one. Jodi Low is the founder and CEO of U & Improved, an award-winning leadership development company.


Sept/October 2016 CONNECT » GUIDE » INSPIRE

MAY // JUNE 2016

IRE E » INSP T » GUID CONNEC

MAY //

JUNE

2016

CON NECT » GUI DE »

INSPIRE

JANUAR Y // FEB RUARY 2016

2016

MOST INFLUENTIAL WOMEN PAGE 33

RS VATO INNO HEAT: TECHNOLOGY ERS IN D THE LEAD ROSPACE AN ERGY, AE CARE, EN HEALTH

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San Diego Travel Guide

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36

HEAT

49

Healhcare Report

66

Visit Glendale

76

WESTMARC

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MIL LE MEET

ARIZO NA'S MO ST INFL

NNI A LS

UENTIA

Arizon Corporate a Coun Awards sel

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Industry Leaders of Arizon a

L YOUN G BUSIN ESS LE

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Greater Phoen Economic ix ouncil

$4.95

ss Small Busine

Arizona Getaways

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$4.95

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Arizona Chamber of Commerce & Industry

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ADERS

Arizon Lodging a & Touris Association m

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COMING NEXT ISSUE • Who are the Most Admired Companies in Arizona? • How can you keep your meetings and events safe? • When should you stop offering health insurance? • Is it time to reinvent your performance evaluations?

AB | July - August 2016

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UP FRONT

John M. Randolph Member Sherman & Howard shermanhoward.com

Randolph has represented banks and other lending institutions in transactions ranging from $2 million to $200 million, including multi-state collateralized transactions and restructuring of existing financing arrangements. Advice: “Immerse yourself completely in your area. Learn everything you can about it. Seek out industry related interest groups and attend their meetings and presentations. Don’t miss an opportunity to meet people that are recognized authorities in your area.” Greatest achievement: “While most of my work helps my clients, it is the pro bono work I have done for clients who could not afford my services that has given me the greatest satisfaction.” Preferred superpower: “The power to freeze time. No matter how efficient I am, I never have enough time to read all the books I want to read and complete all of the work I need to complete so that I can attend all of the events I want to attend.” To read more about the best and brightest business leaders in Arizona, get a copy of the 2016 edition of Az Business Leaders at azbigmedia.com. 10

AB | July - August 2016

Following her passion pays off By ALISON BAILIN BATZ

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uarles & Brady LLP was named the “Best BigLaw Firm For Female Attorneys” by Law360 and Phoenix Office Managing Partner Nicole France Stanton was named Woman of the Year by Arizona Summit Women’s Law Association. Given that this issue of Az Business is dedicated to the most influential women in Arizona, it’s appropriate to hear from one of Nicole Stanton the state’s best and brightest female leaders. Az Business: You started the Dion Initiative for Child Well-Being and Bullying Prevention. What inspired that? Nicole France Stanton: The Dion Initiative is named in honor of my brother, Dion France, who was bullied relentlessly as a child. Dion passed away in the early 1990s. The seeds for the Dion Initiative began when I launched an organization called Stop Bullying AZ in 2012.  That first year, Stop Bullying AZ sponsored an anti-bullying summit at Arizona State University’s Tempe campus in 2012. The summit provided about 300 school administrators and teachers with information and strategies to help stop bullying in schools. The support we received from educators, local and national leaders, parents and students has been overwhelming. So much so, in fact, in 2015, Stop Bullying AZ was renamed the Dion Initiative for Child Well-Being and Bullying Prevention and is now located within Arizona State University. 

AB: In what other ways do you give back to the community? NFS: I am a founding board member and the past president of the Women’s Metropolitan Arts Council at the Phoenix Art Museum. I assisted with forming this organization, now in its 11th year, to get more professional women engaged in the art museum. I have assisted with fundraising galas or brunches for both Southwest Center for HIV and AIDS (“Night for Life”) and Aunt Rita’s Foundation (“Red Brunch”).  My only brother died of AIDS in 1991.  AB: What attracted you to the legal profession? NFS: Throughout my life, I’ve been very justice-driven. I have a real internal passion for what’s right and what’s wrong. I didn’t know any lawyers growing up. It wasn’t until my mass communications law professor in college suggested law school to me that I even considered it.  AB: How do you balance your community work with your family? NFS: I try to dispel the notion for other women that there is such a thing as balance. If it exists, it is an elusive creature. My life is often very out of balance. From week to week, I have to make difficult decisions about the priorities in my life. On the community front, I have started more and more to try to involve my children in my activities. They are my priority and everything else has to take a backseat when they need me.  AB: How would you like to be remembered? NFS: For being the type of leader that creates more leaders, not more followers.


CEO SERIES

Shining

Tempe-based CEO is one of only a few women leading aerospace companies By MICHAEL GOSSIE

W

hen Shawn Linam was a little girl, she was told that she could not be good at both piano and math. “That was the message that was coming in to me,” Linam recalls. “But my father said, ‘No, you can do this,’ and insisted I could excel at math. When he put me in algebra, I struggled and the spent nights tutoring me and something in those tutoring sessions finally clicked. I got over the hurdle and did well in math throughout the rest of school.” Now, Linam is co-founder and CEO of Qwaltec, a Tempe-based aerospace company. Az Business sat down with one of the few female CEOs in the aerospace sector to talk technology. Az Business: How did you get into the aerospace industry? Shawn Liman: I stumbled into it. After college, I had to figure out what to do with my biological engineering degree. I originally wanted to go to med school, but realized I didn’t have the stomach for it. So I looked at law school, getting my MBA, typical stuff when you’re trying to figure out what to do with your life. I took a job doing technical training and loved it. I was the first woman that company had ever hired in a technical position. I loved learning the technical information and then training someone else. I started looking around for another job and happened to meet someone at a wedding who worked at NASA training astronauts. He said, “You have an engineering degree and have training experience. Would you be interested working for NASA?” I originally got hired to work on the Space Station and developed training for astronauts, flight controllers and mission controllers. I switched to the Space Shuttle so I could deliver training instead of just developing it. AB: Why did you pick Arizona as home to your company? SL: The three on us who started the company came to Phoenix to work Iridium. Motorola had it and we were training the operators and doing engineering for the program. Iridium went bankrupt and the company we were working for closed its Phoenix office. We were either naive enough or entrepreneurial enough to say, “No time like the present to make a go of it on our own.” We had grown fond of Phoenix and the weather and the desert, so we started Qwaltec as a necessity to be employed. AB: What do you do now at Qwaltec? SL: Unmanned space systems are what pays

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the bills. We specialize in mission readiness and technical training for predominantly satellites, but we can do any space systems. We also do systems engineering. We really focus on the ground systems and the operations teams that are operating a satellite system. We have done work with commercial space flight companies who want to put tourists into space. The three of us that founded the company all worked at NASA, so human space flight is still a first love for us. AB: How far are we from space tourism? SL: The companies that are vying to put someone into space are saying 2017 or 2018, but I think realistically we are five years away. AB: You trained astronauts. Any interest in traveling to space yourself? SL: I do, but I’m not quite as brave as the astronauts who have gone into space. The Space Shuttle might not have been too bad. Now, our astronauts are going up in Soyuz, which is a very small capsule and a very confined environment. I don’t want to go up in that. I’m waiting for the Richard Branson Virgin Galactic, where it’s more comfortable.

SHAWN LINAM: “We have worked on several satellite programs at Goddard Space Flight Center that do Earth observation or imaging,” says the CEO of Qwaltec, “so when I see images come back from those satellites, it’s exciting to see that the teams we got ready are responsible for these incredible images.” PHOTO BY MIKE MERTES, AZ BIG MEDIA


602.808.0766

TCooksPhoenix.com


LAW

Battling drive-by lawsuits Experts offer advice on how to protect your business against frivolous ADA-related legal issues By GIANNA TRACEY

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here is a wave of frivolous Americans with Disabilities Act (ADA) lawsuits hitting Arizona, but now it’s not just in the hospitality industry. “All types of businesses are affected, from big box stores to small mom-and-pop businesses,” says Lindsay Leavitt, a litigator who practices commercial litigation, personal injury, administrative law and labor and employment law for Jennings Strouss. This rash of ADA-related lawsuits started showing up in Arizona in the summer of 2015, Leavitt says. According to the Arizona Department of Transportation (ADOT), the “ADA prohibits a public entity from discriminating against qualified persons with disabilities in access to facilities and services that the public entity provides.” In 2015, Theresa Brooke, a woman restrained to her wheelchair, called different hotels around the Valley to see if they had a pool lift at their facility. If they said “no,” she went and filed a lawsuit against the facility. She filed more than 100 lawsuits. According to Leavitt, most of these cases are not going court. But in the ones that do, the hotels are arguing that they shouldn’t be sued because Brooke never intended to actually visit the hotel. Even though this sounds like a reasonable defense, the courts sided with Brooke because it

All types of businesses are affected, from big box stores to small mom-and-pop businesses. AB | July - August 2016

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LAW

Anoop Bhatheja

Lindsay Leavitt

Marc Lamber

Craig O’Loughlin

Wendi Sorensen 16

is required that any building built after March 2015 have accommodations for the disabled. Brooke is known as a serial plaintiff, according to Leavitt, because of her multiple cases on ADA regulations on the same topic and against the same industry. Based on the case Molski v. Evergreen Dynasty Corp in 2007, it was established that, “For the ADA to yield its promise of equal access for the disabled, it may indeed be necessary and desirable for committed individuals to bring serial litigation advancing the time when public accommodations will be compliant with the ADA.” But, in order to file these ADA lawsuits, an individual must be regarded as disabled, Leavitt says. After Brooke, Leavitt has seen a swell of lawsuits hit businesses around the Phoenix area. There is a man that Leavitt says is going around and suing businesses that do not have the proper signage or proper number of spaces allowed for handicapped parking. According to the Americans with Disability Act Accessibility Guidelines, which was adopted by the Department of Justice to monitor places of public accommodation and commercial facilities, new structures must comply with 2010 ADA standards. But, if the building is already in compliance with the 1991 ADA standards and the business is not doing any renovations, it is not required to be up-todate with the 2010 guidelines. “About 300 ‘parking lot’ ADA lawsuits have been filed this year,” Leavitt says. “I estimate that as many as 10,000 to 15,000 (ADArelated) lawsuits could be filed in Arizona.” Right now, these lawsuits are on the rise and the first step a business owner should take is to seek assistance from an experienced ADA compliance attorney, Leavitt says, issuing a stern warning to businesses. Leavitt says that when business owners come into contact with a serial plaintiff or just needs to be in compliance with the ADA, they should find an ADA attorney because they are knowledgeable and familiar with the new requirements and trends on regulation. Leavitt says he helps educate businesses on how to protect themselves and become aware of ADA regulations. He writes articles and blogs in industry publications and also takes time to do presentations for local business groups.

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Protect your business

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hat can businesses do to protect themselves from frivolous ADA lawsuits? Legal experts offer their opinions. Anoop Bhatheja, shareholder, Sanders & Parks: “Business owners can have a qualified design professional with expertise in ADA regulations conduct a site visit and audit their premises. An audit can reveal potential violations of the ADA. Many violations are not costly to correct and can enhance the accessibility of the premises to disabled patrons.” Marc Lamber, chair of the Personal Injury Practice, Fennemore Craig, P.C.: “As a business owner, the worst thing you can do is to bury your head in the sand and wait until there’s a problem. Be proactive and consult with an attorney experienced in ADA compliance issues for an evaluation of your premises. According to the Department of Justice, more than 50 million Americans – 18 percent of our population – have disabilities, and each is a potential customer.” Craig O’Loughlin, chair of the Labor and Employment Group, Quarles & Brady: “Generally speaking, businesses should have their parking and accessibility audited by a qualified ADA surveyor.  More specifically, for this particular wave of lawsuits, businesses should make sure they have disabled parking that identifies the spaces with signage that is at least 60 inches above the ground and includes a specific placard identifying any space that is van accessible.” Wendi Sorensen, partner, Burch & Cracchiolo: “Be proactive. Retain a professional ADA evaluator to determine whether your business is ADA compliant. Don’t think that because your building is older, it is “grandfathered” and may remain noncompliant. Older businesses generally must  make changes that are “readily achievable” based on the ability of the business to afford such changes. Additionally, buildings undergoing remodeling may be required to fully comply with the ADA, and this compliance extends to all portions of the property including walkways and parking areas.”


Since 1931, Financial Executives International is recognized globally as the leading organization for senior-level financial executives. FEI AZ is proud to present the 10th annual CFO of the Year Awards.

10th ANNUAL

NOMINATIONS ARE OPEN Go to azBIGmedia.com

This event is the most prestigious financial executive awards in Arizona and the one not to miss!

Deadline August 5, 2016


BANKING

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The virtual reality of modern banking

Technology, micro-branches and specialization is re-shaping the industry

By JESSE CANALES

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hen most people think about traditional banking, they envision long lines leading up to the bank teller from their local brick-and-mortar bank. Well, that style of banking maybe coming to a close. Modern banking can take place at home or on the go. Banking has become as simple as a tap or click of a button. Customers are now able to make deposits, create a loan and manage their accounts online. Mike Brown, Arizona regional president of Washington Federal Bank, was astounded when he first learned mobile banking was possible. “I saw an ad on the television and went ‘Wow, that’s pretty amazing,’” Brown recalls. “Now, everybody does it.” Modern banks are looking at various avenues of banking to maximize profits. The old strategy banks utilized was putting branches in intersections that have a lot of traffic. In today’s banking world, the banking strategies have become more scientific. Many factors, such as demographics and speciialization, are taken into account. No other style of banking has become more important than mobile and online banking. Banks are beginning to invest

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BANKING

Mike Brown

Pam Conboy

Patricia Rourke

David Sweiderk

more on information technology than ever before just to keep up with the dramatic changes in the technolgy and banking world. “What the next step is?” Brown asks. “Who knows? You’ve got to continually put money into IT just to be prepared for it.” More banks are closing or amending their brick-and-mortar branches as online and mobile banking grows. “Probably, the one I thing think about that has changed a lot is on the mobile deposit side, which saw a 49 percent increase (fromm March 2015 to March 2016),” says said Bankers Trust Arizona Market President Patricia F. Rouke. “That’s what is driving your branch traffic and that might be why, at least in our market, you’ve seen some banks close branches because they don’t have that walk-in traffic.” As banking has evolved, so have the criminals. The days of Bonnie and Clyde may be long gone, but a new criminal has come to take their place — the cyber criminals. Banks are investing money to not only develop new features for online and mobile banking, but to protect their customers from cyber criminals as well. Bankers Trust offers internal cybersecurity to their employees and now spends more on cybersecurity and compliance than they did five to 10 years ago. “I don’t know the dollar amount, but I will say probably between cybersecurity and new mortgage rules and regulations, I remember our CEO saying, ‘We probably spent a million to a million and a half additional dollars.’ I believe our CEO would still say, along with even our security officer, ‘cybersecurity continues to be probably the No. 1 thing we think about,’” says Rouke. The convenience of online and mobile banking does not mean the end of in-person banking. In fact, based on customer feedback, Wells Fargo has found that many of their customers still enjoy in-person banking. Banks are opening up more and more micro-branches, which are relatively inexpensive and convenient compared to the brick-and-mortar branches. Washington Federal opened a micro-branch in Ashland, Oregon, inside a retail market 20

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Mobile b an deposit king ss a 49% in aw crease

to see if they were able attract some new foot traffic. “The customers are looking for different kinds of opportunities,” says Brown. “There is a lot more foot traffic and a lot more transaction traffic in the micro-branches. Once again, you have to adapt to what that demographic is looking for.” As part of its growth and development plan, Arizona State Credit Union has changed its name to OneAZ Credit Union. The name change coincides with OneAZ’s ambitious plan to upgrade its infrastructure with a best-in-class phone system with password authentication, voice recognition and other features, along with a next-level digital experience. Prototype branches also are being planned in Sedona and at Kierland Commons in Scottsdale. The branches, set to open this summer and fall, respectively, will feature an Apple-esque design, with consultation, learning and the latest customer service technologies. “We want to make our contact with members as easy, enjoyable and effective as possible, regardless of how they reach us,” says David Sweiderk, the credit union’s executive vice president and chief operating officer. Wells Fargo, one of the leaders in mobile banking with 17 million mobile banking customers, has developed an Omni channel strategy which allows their customers to switch from selfservice banking, mobile, to full-service banking. “You click ‘Click-for-care’ and you can turn your mobile phone into a voice-activated system,” says Wells Fargo Regional President Pam Conboy. “Say, ‘I want help’ when you are on your mobile device and you’ll be connected to a Wells Fargo phone representative. You’ll have the opportunity to either go to a VRU (voice response unit) or directly to a banker.” Mobile and online banking have certainly revolutionized the way many people bank today but it is unclear if these are the final technological products. Banks have invested a lot of money to keep up with the technological advancements. Who knows, we may even see virtual reality banking in the future. Stay tuned.


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Perseverance-HalfPg-Bjerk-120215_Layout 1 12/2/15 1:16 PM Page 1

With a steady course of action and perseverance, a Bjerk Builders crew on your next endeavor will help to ensure your project will be completed on time, within budget, all while exceeding your expectations and goals.

PERSEVERANCE.

License B1-088897

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BUILDING SUCCESSFUL ARIZONA PROJECTS FOR 29 YEARS

480.497.2300 • fax: 480.497.9610 www.bjerkbuilders.com AB | July - August 2016

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TECHNOLOGY TAKING OFF: Orbital ATK’s satellite production process in Gilbert incorporates a unique, assembly line system consisting of 18 different work stations ranging from panel integration and payload testing to full satellite integration, solar array installations and alignment checks. PROVIDED PHOTOS

world Out of this

Arizona-manufactured communication satellites build on state’s aerospace impact By JESSE A. MILLARD

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his September, the first 10 of 70 Arizona-manufactured communication satellites will launch into space out of Vandenberg Air Force Base aboard a SpaceX Falcon 9 rocket. Chandler’s Orbital ATK finished the first two of the 70 satellites in June, and plans to build the satellites at a quick speed that is unique for the industry.  “Pretty soon, one satellite a week will go out this factory door,” says Frank Culbertson, executive vice president and president for the Space Systems Group at Orbital ATK.  The satellites are being built to replace an existing satellite network that is operated by Virginia-based Iridium.  Iridium’s current satellite network, or constellation, has been orbiting Earth since 1997, and Orbital ATK has been contracted to build 70 of the 81 Iridium NEXT satellites that will replace the old network incrementally through 2017.  Each satellite built in Orbital ATK’s Gilbert manufacturing plant was designed by the French firm Thales Alenia Space.   Satellites require a lot of testing, and production can take years at times, but to speed up the process, Orbital ATK is building each satellite in an assembly line fashion.  “One a week is an amazing  achievement for satellite production,” Culbertson says. Producing satellites so quickly is something new, and something the industry is striving for as Orbital ATK sets a new example, he adds.  There are 120 Orbital ATK employees working on the $3

billion satellite project in Gilbert, Culbertson says. Each satellite moves through 18 stations, where it is assembled and tested.  Employees are working hard to build these satellites at a high-rate of production with as much care and attention to detail as possible, Culbertson says. During a June news conference, announcing the completion of the first two Iridium NEXT satellites, Orbital ATK engineers worked in the background at each production station in a large modern assembly line, moving from station to station.  SpaceX will be launching the satellites 10 at a time. The first batch of satellites for the September launch will be finished and rolled out to California by the end of July, says Iridium CEO Matt Desch.   When the satellite is deployed into space, it will have a 50-foot wingspan, and has a unique technology that keeps every satellite in the constellation in constant communication with one another as they orbit around Earth, Desch says.  Arizona has a history with Iridium satellites, Much of the initial fleet currently in orbit was produced here in the 1990s, Desch says. There are even people who worked on the first network currently working on the new constellation at Orbital ATK, Desch mentions.  About $2.3 billion of the program’s cost went towards the satellites themselves, Desch says, with a couple hundred million of the cost invested directly into the Gilbert area.   “This is a really exciting milestone,”  Desch says. “After more than seven years of effort, the first of our next-generation satellites are finally ready for space.” AB | July - August 2016

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WORKFORCE

Out of site There are ways to plan events outside of the office that will boost your bottom line 24

AB | July - August 2016


By MATT DURACK

C

ompanies are always looking for new and more effective ways to increase their employees’ productivity and building morale and camaraderie. Employers have a strong desire to create workplace environments that make people excited to work there. As a result, the act of taking the employees out of the office for a little bit of team building has become a very big part of workplace culture.

Justin Barlow

Susan Lagarde

Lee Vikre

An offsite team building event can include many different kinds of outings. On one end of the spectrum is the relaxed, laid back day out, intended to relieve stress and provide entertainment for employees. These kinds of outings include trips to the bowling alley, museum or theater, the zoo and restaurants. However, competitive events that require employees to team up to achieve a goal are becoming increasingly popular. These can include obstacle course races, paintball, scavenger hunts, go-kart races and escape rooms. Employers see this kind of team building event as a way to both boost morale and improve valuable workplace skills such as leadership, communication and problem solving. The rise in popularity of these events is due in part to employers recognizing the value in having a staff that can work together and are happy, according to Susan Lagarde, special events coordinator at Dave & Buster’s in Phoenix. Lagarde has coordinated company team-building events ranging from ten to 250 people, and boasts that Dave and Buster’s is the originator of the corporate team builder. “I think with the stress and the constant push for people to do good and do better, they’re placing the greater emphasis back on their workforce and the people,” Lagarde said. “They realize that when their people are happy, they’re productive. And they’re productive because they can work together.” Most corporate team-building events are staged by professionals and are elaborate and designed to challenge employees to work together. The event organizers specifically focus on events that require employees to work as a team and overcome obstacles in order to solve problems. In addition, the event organizers take into AB | July - August 2016

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WORKFORCE

PROVIDED PHOTOS

GAME ON: Every Dave & Buster’s has private rooms that come complete with everything you need to host business meetings or off-site corporate events.

account the culture and atmosphere of the particular company, according to Lee Vikre, consulting partner at BestCompaniesAZ, an Arizona-based consulting and promotional services firm that identifies, develops and promotes best companies. “The focus of the activity, the level of personal interaction, physical or psychological risk, creativity and physicality should be shaped by the company’s culture,” Vikre said. “The person planning the event needs to be very in touch with the company culture.” Occasionally, companies will also take the opportunity to combine their own team building needs with philanthropy and community service. This is the case with Habitat for Humanity, who put on “TeamBuild with Purpose,” an event created for businesses to build 26

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camaraderie and also make a positive impact in the Valley. Justin Barlow, president and CEO of Habitat for Humanity Central Arizona, believes that working together to help the community is the best way to team build. “(Habitat for Humanity’s) team-builds create an immediate and tangible difference in a neighborhood and for those participating,” Barlow said. “The experience stays with the individual for years because they can drive by at a later date, point to their handywork and say, ‘I helped build that.’ It’s gratifying, really.” Other popular companies organizing team building events in the Phoenix area include One Day Adventures, Octane Raceway, Escape the Room AZ and Western Destinations.


MARKETING

How to use Facebook Live to tell your brand’s story

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acebook recently gave its 1.6 billion-plus users access to its coveted live video streaming service, Facebook Live. Differentiating itself from other mobile live streaming apps like Periscope and Meerkat, Facebook’s new technology allows users to broadcast their lives, brands and ideas in real-time to a larger audience than ever due to the social network’s global reach. On top of that, the feature can be accessed from any device - yes, even a drone. Facebook Live is shaping modernday storytelling, and while it seems like the majority of users are large companies and celebrities, you too could reap the benefits of this hot Melissa DiGianfilippo new social media feature.

Marketing

BUILD BRAND AWARENESS:

When it comes down to it, live broadcasting is yet another way of getting your name and image out there. It’s a method of increasing engagement with your audiences, and because of this, the use of Facebook Live is a tool that can be used to keep your brand relevant. OFFER A BEHIND-THE-SCENES LOOK AT BUSINESS: Facebook Live makes it easy for business owners to build a deeper connection with their followers. The nature of live content gives viewers the sense that what they are watching is transparent and authentic - and it is! Facebook Live users have the ability to give their followers interviews with employees, show the ins and outs of a typical day in the office or a sneak-peek at a new product. Live broadcasts also have the potential to humanize your brand and make your company more relatable and in turn, it becomes more trustworthy. ENGAGE WITH POTENTIAL NEW CUSTOMERS AND CLIENTS: One of the major appeals of Facebook Live is that it allows viewers to participate in the conversation through a personal and direct 28

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line of communication. Since your audience will be able to highlight their questions, comments and concerns in real-time, you can profit from engaging in a valuable discussion. Even better, it allows you to show off your company’s A+ customer service by saying hello to the commenters by name, offering a change or different perspective that parallels their feedback, and forming a relationship. CREATE VALUABLE CONTENT: Once you stream a video with Facebook Live, whether it be a two-minute video or 30-minute segment, the video is here to stay. There is no need to worry about your content disappearing in a matter of seconds, hours or days because your Facebook Live videos automatically save to your Facebook timeline. You can get the most out of your video by sharing it, embedding it in blog posts, tweeting it out, and emailing it to colleagues, customers and prospective clients. BROADCAST LIVE EVENTS: Today, your customers are busier than ever; make it easy for them to attend your events without leaving their kids or job. Sharing live events with your audience allows them to feel connected to both the event, and your brand, without even being there. To make the most of your followers’ interest, show them around the entire event, allowing them to experience every aspect of it. Pay attention to their comments as well, so that you can answer any questions or follow any requests they may have to see certain aspects of the event. Proceed with purpose. Decide on the goal of your broadcast, be crystal clear on your key messaging and leave viewers with an action to take. When used effectively, Facebook Live can do wonders for a brand and your bottom line. Melissa DiGianfilippo is co-owner and president of public relations at Serendipit Consulting, a full-service marketing and communications agency.


DINING

A modern twis t

Stingray Sushi combines classic Japanese dishes with a Latin flair

By MICHAEL GOSSIE

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ere’s the best thing about Stingray Sushi: It wins the triple crown for versatility. • It’s the perfect place to take a client or customer for a business lunch or dinner. • The atmosphere is ideal for happy hour or dinner with friends. • It’s a great place to spend a romantic dinner with your significant other or meet to someone for a first date. Stingray Sushi puts a unique twist on the typical sushi restaurant by combining Japanese-American classics with Latin influence. The ultra-modern décor utilizes vibrant colors, rich woods and contemporary style to create a distinctive atmosphere that make Stingray the perfect place to watch all the beautiful people who regularly fill Stingray’s tables. For those who love people watching, Stingray is your Nirvana. Foodies will love Stingray, too. There is something on the menu that will excite even the most discriminating diner. From the lunch Bento Boxes to the spicy miso edamame — glazed with butter, sriracha and miso (does it get any better?) — to the lobster dynamite, Stingray serve up dishes packed with flavor and the finest ingredients available. You really cannot go wrong with anything on the menu, but these are some that stood out: • The lobster tempura tacos ($4): We know what you’re thinking:

“Tacos at a sushi place?” Trust us, the crispy lobster with cabbage, pico de gallo and lemon aioli, wrapped in crispy lettuce or tortilla is the definition of deliciousness. • The steak tataki salad ($14): Those that need their red meat fix, while still choosing a healthy option will love how this salad features steak grilled to perfection and sliced over petite spring mix and a miso ginger vinaigrette. • Yuzu chilean sea bass ($17): The sea bass is pan seared with white truffle yuzu and micro greens. The fish is prepared so perfectly, if you didn’t know better, you would think you were taking a bit of hand-churned butter instead of fish. This dish literally melts in your mouth. • You cannot go wrong with any of the sushi on the menu. After all, sushi is Stingray’s speciality. But if you’re looking for some highlights, the crispy spicy fish is fresh and delicious and among the favorite. The Cucumber Wrap Maki, the original lollipop and the pepino — made with King Crab, salmon, avocado and spicy tuna — are among the most delicious items on the menu. Stingray Sushi has one of the best happy hours in the Valley every day from 2:30 p.m.-6:30 p.m. and features half-price house maki, appetizers, specialty drinks, seasonal wines, $2.50 tacos, sake bombers and more.

Stingray Sushi locations • 900 N. 54th St., Chandler, 480-272-7991 • Biltmore Fashion Park, 2502 E. Camelback Rd., Phoenix, 602-955-2008 Info: stingraysushi.com

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Clare H. Abel, Burch & Cracchiolo, P.A. • Kimberly Anderson-Matich, Anderson Security Agency • Sharon Bondurant, Tech Finders Susan Brichler Trujillo • Quarles & Brady • Margery Brown, GPEC Christina Burroughs, Miller Russell Associates • Kami Cothrun, Pieceful Solutions • Jaime R. Daddona, Squire Patton Boggs • Roopali Desai, Coppersmith Brockelman • Ruth Engle, Troon Golf • Roxann Gallagher, Sacks Tierney P.A. • Kate Gallego, City of Phoenix • Karen S. Gaylord, Jennings, Haug & Cunningham • Sandy Gibson, Blue Cross Blue Shield of Arizona • Dr. Parul Goel, Barrow Neurosurgical Associates Sharon Grambow, Sun Health Senior Living • Molly Greene, hey are innovators, trailblazers and leaders of industry. They are Az SRP Nicholle Harris, Rosenfeld • Sintra BusinessGust magazine’s Most Influential Women inHoffman, Arizona BusinessWESTMARC for 2016, as selected from a pool of more than 1,000 candidates by the Dr. Janice Johnston, Redirect Health • Nima Kelly, GoDaddy • Jalina editorial team at Az Business magazine and a panel of industry experts. their resumes industries may differ, the women we • Dr. Melanie Kerr, Charles“While Schwab & Co.and • Linda Little, iHeartMEDIA selected have all procured influence in their respective fields through hard-earned track records of professional excellence, D. Logue, Grand Canyon University • Kate leadership, Maynard Hickman, innovation and community impact,” said Az Business magazine Alliance Bank Arizona • Heidi McNeil Staudenmaier, Snell & Editorof in Chief Michael Gossie. “Az Business magazine is proud to congratulate the women who earned the right to call themselves one Wilmer • Dawn Nagle, Metro Phoenix Export Alliance • Pam Nenaber, of the Most Influential Women in Arizona Business. They are changing the face of ArizonaOperations business.” Banner Pharmaceutical • Mary Orlando, USAA • Deborah Az Business does not allow a woman to make the Most Influential Ostreicher, City Phoenix Melanie Pate, Roca Rothgerber Womenof in Arizona Business• list more than once. If youLewis know someone who should be considered for 2017, nominate them at azbigmedia.com. Christie • Cathy Reece, Fennemore Craig • Cynthia A. Ricketts, Sacks, Ricketts & Case LLP • Mirja Riester, RIESTER • Dawn Rogers, 2017 Phoenix NCAA Basketball Final Four • Dr. Cecilia Rosales, University of Arizona College of Public Health • Kim Sabow, Arizona Lodging and Tourism Association • Jasgit Sachdev, HonorHealth • April Salomon, Musical Instrument Museum • Jody Sarchett, Lovitt & Touche Trish Stark, First Western Trust • Lisa Urias, Urias Communications Alexi Venneri, Digital Air Strike • Deanna Wise, Dignity Health

The 2016

Most Influential Women

in Arizona Business

T


The 2016 Most Influential Women in Arizona Business

How can we attract more women to technology? The male-dominated industry faces hurdles when trying to create a diverse workforce

T

here’s no issue more pressing in the technology industry than the lack of gender and ethnic diversity. The danger lies in losing touch with a diverse nation and world that form the industry’s customer base. Tech companies have been engulfed in a diversity debate for years, in part because data released by giants like Google, Facebook and others have showed how overwhelmingly tilted the population of workers is toward white males. From giant companies and small startups to venture capital firms, African-Americans and Hispanics are largely absent, and women are underrepresented. As a consequence of that scrutiny — and of their own volition — technology industry leaders have been working hard to not only achieve balance in diversity but to achieve equality in pay. Microsoft and Facebook recently announced they offer equal pay to men and women possessing the same job titles and levels Steven G. Zylstra in their respective companies. A lot of Technology this progress at larger tech companies has fed downstream to smaller enterprises, which now are focused on these issues as well. Equal pay is a much easier problem to solve than recruiting minorities to pursue science, engineering, technology and math (STEM) careers. In the case of women, a survey conducted by McKinsey & Company revealed that performance models for work-life balance issues tilt against them. Most men and women agree that a top-level career implies “anytime, anywhere” availability to work and that this imposes a particularly severe penalty on women. When asked whether having children is compatible with a top-level career for women, 62 percent of all respondents agreed. However, a much larger share (80 percent) felt the same for men. The survey also found men were less likely to see value in diversity initiatives and more likely to believe that too many measures supporting women are unfair to men. And while nearly all male and female executives expressed some level of agreement that women can lead as effectively as men do, male respondents were not as strongly convinced.

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“From giant companies and small startups to venture capital firms, African-Americans and Hispanics are largely absent, and women are underrepresented.

Perhaps most importantly, a significant body of research shows the gender bias that persists in organizations and society disrupts the learning cycle for women. This research also points to some steps that companies can take to rectify the situation. It’s not enough to identify and instill the “right” skills and competencies as if in a social vacuum. People excel in their chosen fields by internalizing an identity and developing a sense of purpose. Internalizing a sense of oneself is an iterative process. As a person’s capabilities grow and opportunities to demonstrate them expand, high-profile, challenging assignments and other organizational endorsements become more likely. The bottom line is that gender-diversity programs aren’t enough. While such programs can provide an initial jolt, all too often enthusiasm wanes and old habits resurface. Values last if they are lived every day from leadership down. If gender diversity fits with that value set, almost all the people in an organization will want to bring more of themselves to work every day. The good news is that at a local level, Arizona has an unusually rich history of trailblazing women in top leadership positions. Sandra Day O’Connor was the first female Supreme Court justice and Lorna Lockwood was the first female Arizona Supreme Court chief justice — the first woman in U.S. history to head a state supreme court. We’ve had four female governors — the most of any state. Women also have tremendous support at the university level. Arizona State University President Michael Crow declared gender diversity a university-wide initiative, recognizing ASU’s responsibility to empower women for full participation and leadership in society. The Arizona Technology Council also has been trying to help solve the diversity issue by being very active in motivating students to seek educational and career paths in STEM-related fields. The Arizona Technology Council Foundation supports the Arizona SciTech Festival and the Intel International Science and Engineering Fair, and is home to the Arizona Science Bowl for middle and high school students. The Foundation also sponsors students who are pursuing careers in technology through scholarships and grants. Arizona-based companies are also doing their part. At Axosoft, Tania Katan, Sara Breeding and others began an awareness campaign titled “#ItWasNeverADress” that was designed to spur the conversation about the underrepresentation of women in tech. It received national attention and was picked up by numerous mainstream media outlets. Axosoft was also co-founded by a woman − current CEO Lawdan Shojaee. Another prominent Arizona startup co-founded by a woman is WebPT where Heidi Jannenga also currently serves as president. We must continue to be vigilant in providing opportunities for everyone. We have to continue the festivals, fairs and competitions to help encourage our youth to get engaged early. As the recent progress in LGBT rights has demonstrated, results can be achieved rapidly when our society decides to tackle an issue. We’ve come a long way by focusing our attention on the important issue of diversity in tech and we ultimately will prevail. Companies that don’t get on board stand to lose out on great talent. Steven G. Zylstra is president and CEO of the Arizona Technology Council.


Delivering

ACCOLADES.

SRP congratulates Molly Greene, Senior Director, Arizona Government Relations, for being selected as one of the Most Influential Women in Arizona Business in 2016. We appreciate her expertise promoting sound public policy that best serves SRP customers and our communities.


The 2016 Most Influential Women

Clare H. Abel

Shareholder Burch & Cracchiolo, P.A. Abel is certified by the Arizona Board of Legal Specialization as a Real Estate Specialist. She concentrates in the areas of real estate, zoning and condemnation law and administrative law, specifically liquor licensing matters. Advice: “Find a way that works for you, and only you, to balance career and family. I was able to raise three happy, bright, well- adjusted children while still pursuing my legal career.  My children have grown into wonderful people of whom I am very proud.” Surprising fact: ““My first job was painting lines on parking lots when I was 17 in Pittsburgh.”

Kimberly Anderson-Matich

Sharon Bondurant

Anderson-Matich’s foresight allowed her company to introduce the state’s first privately-owned emergency command unit, which is a multi-purpose vehicle used for on-site training, human resources, emergency and strike situations. Advice: “I have always tried to surround myself with really great people, people whom I admire and respect. I also strive for constant self-improvement, always learning and doing new things. In addition, I believe in being involved in my community and giving back to my community.” Surprising fact: “I am one of nine children and I myself have five fantastic children, one wonderful adopted child and six awesome grandchildren.”

Bondurant started the tech recruiting firm from her spare bedroom 18 years ago and has built it into a $4 million+ firm that finds exceptional talent for Arizona companies. Surprising fact: “I was really shy and insecure growing up. My biggest regret: being too scared to try out for seventh-grade cheer. To overcome my regret, I started lifting weights at age 40, competed and won my first fitness competition at 41, and reached IFBB Pro status last July by winning a national show (at 45). My mantra is ‘Age is just a number and it is never too late.”

CEO Anderson Security Agency

Susan Brichler Trujillo Partner Quarles & Brady

Trujillo serves as chair of the Quarles & Brady Phoenix Health Law Group. Her practice focuses on health law, litigation and dispute resolution. Advice: “Understand people – and how to effectively manage human relationships. Also know that empathy plays a huge role in effective leadership.” Surprising fact: “I have a giant – GIANT – ax hanging on the wall in my office from the United Phoenix Firefighters Association and Phoenix Fire Department. They awarded it to me several years ago as a thank you gift for going above and beyond the call of duty volunteering with Wills for Heroes.”

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Founder and CEO Tech Finders


The 2016 Most Influential Women

Margery Brown

Chief operating officer Greater Phoenix Economic Council (GPEC) Brown is COO of GPEC and executive director of the Partnership for Economic Innovation, the organization responsible for positioning Greater Phoenix as a global hub for innovation. Brown serves as the chairman of the board for the Arizona Health Facilities Authority, and is on the boards of the Arizona Voices Institute, Arizona School for the Arts and the Healthcare Transitional Funding Corporation. Advice: “Go out of your way to support other women.” Surprising fact: “In my 30s, I had a motorcycle named Buttercup.”

Christina Burroughs

Managing partner MRA Associates Burroughs leads the private client practice at MRA Associates. Delivering excellence with passion, the team serves families’ best interests through sophisticated wealth planning. Advice: “Align yourself with an organization whose unwavering objective is to serve clients’ interests above everything else. Pay attention to those who have gone before, and help those who come behind – both teach us.” Surprising fact: “I can still recite the 4-H pledge, having spent many years learning and competing at the county and state levels in Nebraska. No, not with livestock, but just about everything else.”

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Kami Cothrun Founder Pieceful Solutions

Cothrun is the founder of Pieceful Solutions schools, which opened in 2008 to offer children with autism spectrum disorders and other developmental delays a comprehensive program from kindergarten through 12th grade. Advice: “Never give up. I’m a believer in the saying, ‘Where there is a will, there is a way.’ No matter what hurdles I’ve come across, I have always refused to quit.” Surprising fact: “Believe it or not, when I first started college I wanted to become an optometrist, but then somehow things took a massive turn and I fell in love with education.”

Jaime R. Daddona

Partner Squire Patton Boggs Daddona’s practice focuses on corporate matters, with an emphasis on mergers and acquisitions, commercial transactions, securities offerings and compliance, and corporate governance. She is also active in community and charitable organizations and is a director of My Help Button, a nonprofit dedicated to suicide prevention. Advice: “Work harder and smarter than your peers and rise to the top because you’re the best, not because you’re a woman.” Surprising fact: “If I could no longer practice law, my dream job would be to host the British television series ‘Top Gear.’”


The 2016 Most Influential Women

Roopali Desai

Partner Coppersmith Brockelman Desai is among the state’s top election and government law attorneys, as well as a soughtafter commercial litigator. Advice: “Even if you are not sure of yourself or have doubts about your abilities, take a risk because you will inevitably surprise yourself and those around you, and it will lead to more opportunities.” Surprising fact: “I love to experiment in the kitchen and create my own recipes. I get my love of cooking from growing up in an East Indian home where women would convene in the kitchen to tell stories, laugh together and make delicious food for their families.”

Ruth Engle Executive vice president and CFO Troon Golf

Engle joined Troon Golf after serving as vice president and controller of the aerospace division of Honeywell International. During her time at Honeywell, she also held vice president and CFO positions over three leading divisions. Advice: “Rising through the ranks as a female within a male dominated industry has its challenges. That said, exceptional performance will always get you a seat at the table somewhere in the organization. From there, it is up to you to own your own career, take calculated risks, accept and respond to feedback, adapt culturally and seek out opportunities to find a way to drive value.”

Kate Gallego Vice mayor City of Phoenix

Gallego, an advocate for infrastructure investment, chaired the campaign to pass Proposition 104, Phoenix’s 50-year transportation plan. Advice: “Negotiate your salary. I was proud to lead the effort to pass the Equal Pay Ordinance at the Phoenix City Council, which works toward closing the pay gap between men and women. It would really help us if all of the women reading this could get a raise.” Surprising fact: “Growing up, I wanted to be a veterinarian. Then, in high school, I developed an allergy to cats that forced me to come up with new plans.  No one would want a veterinarian who was sneezing in the middle of surgery.”

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Roxann Gallagher

Attorney Sacks Tierney P.A. Gallagher’s practice focuses on business and finance, public finance and Indian law, with an emphasis on economic development. She is board chair for Native American Connections. Advice: “Take advantage of the gifts that most women innately possess … including the ability to think strategically, work collaboratively, focus on minute details without losing the overall picture, stand out in most rooms, remember everything, organize anything and juggle competing obligations.” Surprising fact: “I was kidnapped from a Las Vegas grocery store as an infant, was in a 100-year flood as a child in Colorado and was robbed at gunpoint as an adult in Texas.”


The 2016 Most Influential Women

Karen S. Gaylord

Partner Jennings, Haug & Cunningham Gaylord has been recognized as one of Arizona’s top environmental lawyers by her peers, clients and the business community. Municipalities, water providers, businesses and individuals rely on her to counsel them on environmental and natural resources matters related to their business operations and new developments. Gaylord is also a community leader and advocate for the environment. Advice: “I tell other lawyers to never underestimate the importance of technology. We can’t fall behind in use of important new software and hardware as our clients move forward.” Surprising fact: “I lived in Japan for many years.”

Sandy Gibson

Dr. Parul Goel, MD

Sharon Grambow

Gibson’s job is to keep BCBSAZ running smoothly. At BCBSAZ, Gibson leads by example with a daily focus on the company’s products, technology, financial performance and customer experience. Advice: “It is important to understand the big picture. Everyone should give themselves the chance to get involved in all areas of their business, even if it’s out of their comfort zone, and invest time learning the fundamentals.” Surprising fact: “I’m a big fan of the whimsy and magic of Harry Potter. I’ve read the entire series and am waiting for the next book to be released.”

Dr. Goel employs a comprehensive approach to treat the pain conditions of her patients, which includes X-ray guided injection therapy, physical therapy and medication management. Advice: “Do what you are passionate about. Speak up and trust your instincts.  Surround yourself with a team that has the same vision and standards as you. Don’t be afraid to step out of your comfort zone and challenge yourself.” Surprising fact: “I graduated college with a business degree … I have been able to apply my knowledge in business to running a successful medical practice.”

Grambow is responsible for Sun Health’s organizational strategy for senior living, as well as the overall management of Sun Health Senior Living’s three Life Care communities — Grandview Terrace, La Loma Village and The Colonnade, and its nearly 600 employees. Advice: “Don’t create self-limiting barriers to meeting your goals by focusing on what you can’t do. Rather think about your strengths and what you can do for success.” Surprising fact: “When I took my first job in healthcare as director of finance, I didn’t know anything about Medicare and Medicaid, other than they were governmentrun programs.”

Chief operating officer Blue Cross Blue Shield of Arizona

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Interventional pain management specialist Barrow Brain and Spine

Executive vice president and chief operating officer Sun Health


The 2016 Most Influential Women

Molly Greene

Nicholle Harris

Greene has worked in public policy for more than 25 years and oversees chambers of commerce engagements, state and local government relations and SRP’s role in providing input and information on the political front. Advice: “Listen carefully and ask questions. If you are an expert in a subject matter or have provided input to a policy or operational issue, it is especially prudent to solicit alternative perspectives.” Surprising fact: “I cherish counted cross-stitch, reading and cooking and if I had another hour any day, I would spend it on those soul-nourishing activities that feed an introvert like me.”

Harris represents municipalities across Arizona in various legal issues. She serves on Gust Rosenfeld’s Diversity Committee and was recently named a Top Minority Business Leader by Az Business magazine. Advice: “Remain flexible because the client issues you deal with vary from day to day. Don’t shy away from unchartered territory. I’ve expanded my practice area by stepping outside of my comfort zone.” Surprising fact: “I love adventure. I’m always open to trying new foods, travel destinations, activities, etc. I skydive, scuba dive and I’m looking forward to bungee jumping in the near future.”

Senior director for state government relations SRP

Partner Gust Rosenfeld

Dr. Janice Johnston, MD Co-founder and medical director Redirect Health

Dr. Johnston oversees medical operations and the patient experience, spearheading efforts to enhance quality care while improving administrative efficiencies. Advice: “Don’t be afraid to challenge the status quo in your industry. ‘Because that’s how we’ve always done it’ is not a good reason to continue down an ineffective path. Don’t be afraid to second-guess existing processes or procedures, especially if changing things up will benefit your customers and employees.” Surprising fact: “I’ve been to more than 100 George Thorogood and the Destroyers concerts. I’m a huge blues fan.”

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Sintra Hoffman

President and CEO WESTMARC Hoffman’s professional background includes more than 19 years experience in local, state and federal government. Hoffman led ADOT’s Office of Public Affairs, which focused on building and sustaining relationships with leaders in Arizona’s cities, towns, counties and business community. Advice: “Don’t take things too personal and learn to laugh at yourself. Know that things are going to turn out well because you have the drive to make it go well.” Surprising fact: “I’m actually 5-1½. It’s kind of a weird thing because I have a big personality and I wear heels a lot, so people don’t realize how short I am.”


• • • • • •


The 2016 Most Influential Women

Nima Kelly

Executive vice president, general counsel and corporate secretary GoDaddy Officially, Kelly is responsible for all things legal at GoDaddy — mergers and acquisitions, governance, litigation and intellectual property matters. Unofficially, she is somewhat of a corporate historian because of the tenure and is often referred to as “VP of everything.” Advice: “Broaden your horizons and try other things by leaving the legal department to work in the operational/engineering side of a business.” Surprising fact: “Recently, I helped start an employee resource group called GoDaddy Latinos in Technology, which thrills me as I’m proud of my Mexican heritage.”

Jalina Kerr

Vice President Advisor Services Charles Schwab & Co. Kerr, a 25-year financial services professional, has honed her expertise in client experience and service leadership in each of the roles she has held. Advice: “I encourage more women to consider financial services as a viable career choice. Ultimately, the nature of the industry is secondary to the fulfillment that can come from helping people, whether it is clients achieving their financial goals or employees achieving professional success.” Surprising fact: “I’m a fantasy football aficionado, so I can’t wait for September. I play in two different leagues.”

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Linda Little

President, Arizona Region iHeartMEDIA Little is known for using a combination of broadcast, digital and event marketing assets to create and execute marketing solutions that drive results. Advice: “Be open to change, because it’s a part of the media world … Be open, and always strive to be the one who embraces the new, and becomes an expert at it and you will grow your career.” Surprising fact: “I started in the radio and media industry at the age of 31 as a single mom just when my divorce was final. It was a risk, but knew in outside sales I had the ability to earn enough to support us.”

Melanie D. Logue, PhD, DNP

Dean of the College of Nursing and Health Care Professions Grand Canyon University Logue earned her PhD/DNP in her home state of Arizona and has a passion for educating the next generation of nurses. Advice: “Embrace change and continuous quality improvement … Learn how to give and receive feedback in a healthy way. What we think about feedback and how we receive it and deliver it tells us a lot about ourselves.” Surprising fact: “I am a licensed Zumba instructor and enjoy exercise as a way of managing stress, but also to help others to achieve their best health.”


The 2016 Most Influential Women

Kate Maynard Hickman

Heidi McNeil Staudenmaier

Dawn Nagle

One of Alliance’s most seasoned bankers, Hickman currently leads treasury management sales, focusing on the nonprofit and political sectors, while serving on the boards of Ryan House and the Arizona Technology Council. Advice: “Don’t be afraid to start ground level and move around within the organization until you find the area that fits for you. I went from loan servicing, to teller, to new accounts to treasury management and now I manage the team. I’d love to see more women in banking. It’s not as intimidating as it seems.”

McNeil Staudenmaier is nationally recognized in the areas of Native American Law, Gaming Law and Business Litigation. She represents tribes, tribal entities and businesses who engage in commercial transactions with tribes and tribal entities. Advice: “Maintain your reputation. Once lost or tarnished, it is difficult to repair. Never give up. If you think you can, you can. If you think you can’t, you’re right.” Surprising fact: “In my former life before I became a lawyer, I was a sportswriter and was proud to be among the women pioneers in the profession in the late 1970s and early 1980s.”

Nagle oversees MPEXA’s initiatives, creating a stronger Greater Phoenix export-driven regional economy, by making exporting easier for businesses. Advice: “Be collaborative with like-minded businesses and organizations to drive substantial change. Stay razor focused on the end result. Never confuse effort with results.” Surprising fact: “I like a bit of adventure. One of my favorites was a private rowing trip through the Grand Canyon. Bailed water from the rafts, cooked the meals, hauled the equipment, took some amazing canyon hikes and did not leave a crumb behind … then hiked out.”

Senior vice president Alliance Bank of Arizona

Partner Snell & Wilmer LLP

Pam Nenaber

CEO Banner Health Pharmacy Services Prior to her current role, Nenaber was CEO for Banner Gateway Medical Center and COO for Banner Medical Group, which has more than 1,100 providers in 197 locations across six states. Advice: “Always be willing to try something new. You never know how new experiences may change your perspective and push you to think differently.” Surprising fact: “Gilbert proclaimed March 2, 2012 to be Official Gilbert Day of Appreciation for Pam Nenaber. It was truly an honor to be recognized by the community I love to be a part of and continue watch it grow and thrive.”

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Executive director Metro Phoenix Export Alliance (MPEXA)


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The 2016 Most Influential Women

Mary Orlando

Assistant vice president of banking and insurance solutions USAA Orlando led USAA through a complex culture change to improve the member experience for loans. As an expert in process improvement and design, her team shortened the cycle time for third party calls and improved its ability to resolve member problems. Advice: “Be true to yourself. Embrace and celebrate your unique qualities. You’ll be happier and more effective for it.” Surprising fact: “While I started my career as a CPA, people say I don’t ‘look like an accountant.’ I assure them that accountants, like many other roles, cannot be stereotyped and that my background provided me a strong foundation for my career.”

Deborah Ostreicher

Melanie Pate

Cathy Reece

Prior to her current position, Ostreicher lived and worked overseas in corporate responsibility, computers and media. Advice: “Support, don’t compete with, other women. Surround yourself with the smartest people you can find — men and women. You will not only get the job done, but you’ll learn a ton along the way. And communicate with confidence: don’t apologize for speaking the truth or for having a different perspective.” Surprising fact: “My husband and I spend a great deal of our time mentoring Valley homeless children through NPFY.org and find it to be unbelievably rewarding.”

Pate received the firm’s John P. Frank Pro Bono Attorney of the Year award in 2016 and is former chief counsel of the Arizona Civil Rights Division in the Arizona Attorney General’s Office. Advice: “Focus on listening to your clients’ needs and providing practical solutions that mitigate risk and prevent future legal problems … Act with sincerity and integrity in everything you do.” Surprising fact: “I was born at the Grand Canyon and I am a fourth-generation Arizonan. My father’s family owned and operated a souvenir store on the South Rim for over 100 years.”

Reece chairs Fennemore Craig’s Financial Restructuring, Bankruptcy, Creditors’ Rights Group focusing on loan workouts, distressed asset sales, complex restructures of real estate, mining, operating companies, among others. She is recognized  in Benchmark’s Top 250 Women in Litigation and Legal Advisor of the Year by M&A Advisor. Advice: “Learn to think outside the box and find creative workable solutions to problems. Develop and offer good judgment and advice.” Surprising fact: “I have a music degree and taught music in Oxford, England for two years before attending law school.”

Assistant aviation director City of Phoenix

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Partner Lewis Roca Rothgerber Christie LLP

Director Fennemore Craig


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The 2016 Most Influential Women

Cynthia A. Ricketts

Co-founding partner Sacks, Ricketts & Case LLP Ricketts, a lifelong resident of Phoenix, focuses her practice on complex consumer and employment class action defense and commercial litigation matters. Prior to founding her firm, Ricketts was the most senior woman partner at DLA Piper. Advice: “Don’t expect it to be easy. Work hard and develop a passion for your clients, your expertise and your colleagues.” Surprising fact: “I am an avid sports fan and have been to 11 of the last 14 World Series, including when the Diamondbacks beat the Yankees in Game 7 in 2001 and the last two Super Bowls.”

Mirja Riester Principal RIESTER

Riester owns RIESTER, one of the largest advertising and public relations firms in the western United States.  She is an international market researcher, brand management expert and business executive with global marketing experience. Advice: “Be persistent, intuitive and emotional. Our business relies on emotions to connect with audiences, on intuition to identify anticipation and on persistence from women who seek true outcomes.” Surprising fact: “I am a fierce competitor. Growing up as a gymnast training every day, I learned how to be competitive, to train hard and to never give up.”

Dr. Cecilia Rosales, MD, MS

Assistant dean and associate professor University of Arizona Mel and Enid Zuckerman College of Public Health – Phoenix Rosales was appointed to the Academic Technical Council of the Binational Border Health Network, which is comprised of experts from 10 border states to improve response to the challenges posed by public health conditions on the U.S.-México Border. Surprising fact: “My resolution this year is to say ‘yes’ to opportunities that take me out of my comfort zone. I (participated) in (Southern Arizona Diaper Drive fundraiser) Dancing With the Stars. Most people that know me would never expect me to compete (given my two left feet).”

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Dawn Rogers Executive director and CEO 2017 Phoenix NCAA Basketball Final Four

Before she was hired by the Phoenix Local Organizing Committee, Rogers spent nine years at ASU as senior associate athletics director and senior women’s administrator. Advice: “Reach out to men and women you admire from across fields. I did not realize until I was an athletic director that there were women who shared my same challenges in business. I have learned so much from women around me. There are tremendous leaders who have become mentors and friends as well.” Surprising fact: “I’ve run nine marathons, including the Boston Marathon twice.”


CONGRATULATIONS APRIL SALOMON!

The team at the Musical Instrument Museum wishes to congratulate you on your nomination as one of the Most Influential Women in Arizona Business. Thank you for your outstanding leadership, dedication, and ongoing commitment to this world-class museum.

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The 2016 Most Influential Women

Kim Sabow

President and CEO Arizona Lodging and Tourism Association Sabow joined AzLTA in 2015 and previously served as director of the Arizona-Mexico Commission. Advice: “Surround yourself with strong talent — hire people smarter than you. Listen. Communicate. Take risks and don’t be afraid to make mistakes. Never stop learning. It’s OK not to have all of the answers. Focus on collaboration and modernization. Most of all, be authentic and do what you love.” Surprising fact: “I grew up playing competitive tennis and went to college on a tennis scholarship. My career goal at the time was to be a sports broadcaster.”

Dr. Jasgit C. Sachdev, MD

Director, Breast and GYN Early Trials Program HonorHealth Research Institute In addition to her role at HonorHealth, Dr. Sachdev is an associate professor in the Clinical Translational Research Division at the Translational Genomic Research Institute. She leads the new drug development program for women’s cancers at the HonorHealth Research Institute in Scottsdale and is actively engaged in clinical and translational research with a particular focus in triple negative breast cancer. Surprising fact: “I am a very emotional person, though often I have to keep a tough exterior as I help patients navigate through making some tough life decisions.”

Jody Sarchett Senior vice president Lovitt & Touche

Sarchett assists companies with property/casualty insurance and employee benefits solutions. She has concentrations is manufacturing, large nonprofits, and construction. Advice: “You can’t rely on cold calling or impersonal tactics to build your business. You need to identify your passions, get involved in the community, give back, and focus on building real relationships. Insurance is a people business and your relationships will help you build your reputation and grow both personally and professionally.” Surprising fact: “I’m an award-winning rodeo champion in both national team roping and the Women’s Professional Rodeo Association Barrel Racing Circuit.”

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April Salomon Executive director Musical Instrument Museum

Salomon played an integral role in the design, staffing, collection acquisition and launch of the $250 million museum, which has been ranked among the Top 20 museums in the United States and is rated the No. 1 attraction in Phoenix. Advice: “Sometimes the journey teaches you a lot about your destination. I never expected to be where I am now, but I stayed focused. Do what you love and the reward will follow.” Surprising fact: “I was a private chef and business owner in my early 20s. It was both a meaningful and humbling experience. Eggs are still the hardest to perfect.”


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The 2016 Most Influential Women

Trish Stark

Lisa Urias

Alexi Venneri

Stark is president of First Western Trust, Scottsdale. Previously, she was a  national sales executive at Bank of America. Stark serves as a Trustee of ASU and the Catholic Community Foundation. She is a Phoenix Children’s Hospital Emeritus Board member, having served as chairman of the board. Advice: “Never, ever give up. Persistence, determination and a willingness to learn from your mistakes makes all the difference in reaching your goals.” Surprising fact: “I’ve skied a glacier in New Zealand, pushing myself farther than I thought possible, and lived to tell the tale.”

After more than 15 years in international marketing, Urias founded CoNecs North America, a merger of her advertising and PR firm, Urias Communications, and Molera Alvarez Government Affairs, to provide branding, digital, government affairs and PR services to clients throughout the U.S. Southwest and in Mexico. Advice: “Listen, be present and thoughtfully express your opinions. Influencers aren’t afraid to speak their minds. Remember that understanding various perspectives — particularly in today’s rapidly changing world — is critical to the success of any business.” Surprising fact: “I’m a bit of a party person … People often see me as ‘polite and demure.’ Not always.”

Venneri previously worked for the Seattle Mariners and multiple technology companies before starting her awardwinning social media and digital engagement company company that now employs 170 with most based in Scottsdale. Advice: “If you see an opportunity – take it. I started Digital Air Strike during a recession in 2010 because that’s when I saw an opportunity to help businesses find innovative and low-cost ways to reach consumers through social media.” Surprising fact: “I’ve always been interested in entrepreneurs and wrote a book, ‘Balls! 6 Rules for Winning Today’s Business Game,’ about them.”

Scottsdale president First Western Trust

Managing partner CoNecs North America

Deanna Wise

Executive vice president and chief information officer Dignity Health Wise has a deep understanding and vast experience in the implementation and support of industry-leading clinical IT systems. Advice: “It is important to create a brand strategy for yourself. My personal brand strategy includes the cornerstones of people, strategy, outcomes, and innovation. We are all in the service business, so everything we do begins and ends with people. With a clear strategy, you can set and exceed outcomes while delivering innovative solutions.” Surprising fact: “I grew up in Indiana and competed in western pleasure horse competitions.”

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Co-founder and CEO Digital Air Strike


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HEALTHCARE REPORT

Tough pill to swallow AzHHA hopes to help businesses do a better job dealing with insurance plans

By MICHAEL GOSSIE

T

he Arizona Hospital and Healthcare Association (AzHHA) has been trying to help the business community become more effective in doing business with insurance plans. “One thing we’re seeing is that as we go through payment reform — from volume to value — there are some business challenges as systems try to integrate the new model when parts of the old and antiquated model are still in place,” says Greg Vigdor, president and CEO of AzHHA. Az Business talked with Vigdor about how the business of healthcare is changing. Az Business: Why do you need to educate the public about doing business with insurance plans? Greg Vigdor: Part of what you hear is how we’ve moved into new ways of paying for healthcare and there are all kinds of opportunities for businesses to buy care differently and it’s great because it’s going to promote value instead of volume. The reality is that most of healthcare is still working with these somewhat Byzantine payment systems that reward volume and incent the insurance companies to play these transactional games to make their business work — claims denials, slow payment of legitimate claims. So we’re not in this new model, yet we’re still operating in this old model. The way the system is being gamed presents problems for providers and those problems trickle down to a business’ employees. AB: Can you give me an example? GV: An issue that keeps coming up is “surprise billing” and how to resolve it. There is usually a fight between the person getting the care and the health plan and the provider. We’re trying to figure out how to develop a policy so the person is not stuck in the middle. We think the health plan is the one that needs to be more clear about what the person gets billed, how the system works and how the payment dispute is resolved. We’re trying to settle that world for not only the providers, but for the consumers. AB: How do you hope to settle that? GV: We are trying to figure out how to partner with the health plans 66

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on a host of issues, including how to do value-based payments. How do we reward doing the right thing, creating value and creating health? That should be a partnership between providers and health plans. It’s where the system wants to go. AB: How can business leaders do a better job dealing with insurance plans? GV: The most fundamental thing they can do is understand when they select health plans for their employees, be conscious of the next level of choices for the employees and how it’s going to work. It’s more than just looking at it and saying, “We got a cheaper price.” The value is not just what you’re paying up front, but how does it actually work for your folks? If you find a new health plan and it doesn’t work for your employees, it’s not going to do much for morale or productivity. the best advice I can give is to try to work with a good broker who can help you navigate the full decision. AB: How is payment reform impacting the healthcare industry? GV: It’s creating a lot of trepidation. The uncertainty is off the charts. Where is the value equation if you’re already looking at a negative bottom line or a very small bottom line? As you start to look at what you need to do to move to the new models, it’s a fundamental shift. It’s still unclear exactly when it’s going to happen. Some people think it already happened. It might happen in three to five years, but it could be five to 10 years. So if you flipped your business model to respond to payment reform immediately, you’d probably go out of business. Right now, you’re rewarded for doing more tests and more services and if you suddenly stopped doing that, you’ll find out you don’t have any money. That’s the angst we’re feeling out there. AB: What is the best way to tackle payment reform? GV: It involves working with physicians who have historically been independent practitioners and not your typical employees. So it’s figuring out how to work with that very complicated world with very bright independent-minded folks. It’s also very much caught up in


“It’s a paradigm shift in the industry.”

information systems technology, which is a huge financial investment. So that’s also part of it: when do we make that investment if we’re not really being paid that way? It’s a paradigm shift in the industry. AB: What are the other major uncertainties? GV: Unlike other changes we’ve faced in healthcare where the government is involved, we’re not really sure we can count on their timelines. If Donald Trump becomes president, what does it mean for all this? We don’t have a clue. We don’t have a much clearer picture if Hillary Clinton becomes president, but if Donald Trump becomes president, it’s a wildcard. Will all this come to a screeching halt? AB: Are we are going to see an increase in the number of businesses who self-insure?

GV: Yes, it’s just when? Paradigm shifts happen quickly and until enough businesses get into that, we hang onto the old model. We are still far away, but I expect it to grow experimentally and there will be a flashpoint where people say, “That old system doesn’t work very well,” and it will be time to do things differently and things will start to change immediately and it will be a whole new world. AB: What are AzHHA’s priorities or goals for the next year? GV: Dealing with the shift to value-based payments and redesigning the system. A lot of it has to do with what is described in healthcare as the “triple aim” — create lower cost, better care and better health. Our job is not just to treat sick people, it’s actually to keep people healthy, so how do we do that better?

LEADING THE CHARGE: “We are going to start by trying to tell our story to the health plans themselves to get them to pay greater attention,” says Greg Vigdor, president and CEO of the Arizona Hospital and Healthcare Association. “If that doesn’t work, we will take it a notch further to the Arizona Department of Insurance. We’ll consider going to the State Legislature and lobby for new legislation. We’ll consider public affairs campaigns. We’ll try to bring the issues to light so we can do things better for folks when it comes to healthcare.” PHOTOS BY ANITA RICHEY, AZ BIG MEDIA AB | July - August 2016

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HEALTHCARE REPORT

Unhealthy grade What can we do to improve Arizona’s low national ranking for overall health? By SAMANTHA POULS

A

ccording to United Health Foundation’s America’s Health Ranking Annual Report, Arizona is struggling with graduation rates, children in poverty and drug deaths. These challenges have resulted in Arizona ranking at No. 30 for overall health in the country. “I’m not shocked with our rating,” said Peter “Chip” Coffey, MAPC, LPC, NCC and director of therapy services at St. Luke’s Behavioral Health Center. “I see evidence of our ranking, especially related to drugs.” According to the report, drug deaths have increased in the past two years by 13 percent — from 16 to 18.1 deaths per 100,000 people. Although this rate does not place Arizona in the bottom five states for drug deaths, it does place the state at No. 41 in this category. “We see an increase in use of opiates,” Coffey said. “Heroin is extremely cheap, so people can get it easily on the streets. For instance, college kids will start abusing prescription drugs and then 70

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Stephen Chakmakian

Chip Coffey

Keith Lindor

transition to heroin that they can buy for a cheap price on the street.” Particularly within Maricopa Country, there has been a 44 percent increase in heroin deaths, according to Coffey. Overall, the number of drug deaths in the United States increased 4 percent, from 13 to 13.5 per 100,000 people. The Health Ranking Annual


HEALTHCARE REPORT “We teach kids how to take a test, but we don’t have ways to motivate them and get kids invested in learning.”

Arizona’s overall health T

he 2015 America’s Health Rankings Annual Report finds Arizona has a combination of strengths and challenges.

Arizona’s strengths: Low rate of cancer deaths: Arizona ranks 5th in the country

Report estimates the total healthcare cost of that results from illicit drug use at $193 billion within the United States. “A lot of programs will teach people how to get off a drug, but they kick the person out as soon as they relapse,” Coffey said. “In order to reduce the rate of drug deaths, medical centers need to treat all the symptoms. We’re trying to educate them on relapse.” While the drug death rate in Arizona may not be as low as physicians and residents would like, steps are being taken to reduce the number of drug related overdoses. One such precaution revolves around a pharmacist monitoring system. Pharmacies now have an online report protocol that notifies the pharmacist if a person is coming in repeatedly for the same drug. “We regulate the system as best we can and we are sensitive to quantity limits on drugs,” said Steve Chakmakian, D.O, chief medical officer for Community Plan at UnitedHealthcare. Alternate practices — such as e-prescriptions and counter-active drugs — have also been put into place. E-prescriptions are recorded and kept online, thereby preventing people from making copies and continuously refilling and abusing the same prescriptions. “Narcan is a drug used to override overdoses,” Coffey said. “It’s about $25 and if a loved one finds someone who has overdosed, it can be administered.” Narcan can either be given as an injection or a nasal spray. The drug acts as an opiate antidote by kicking 72

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the opioids out of the opiate receptors located in the brain. “We don’t see as many young teens dying from overdoses, but one of the things that is a struggle, is a lack of investment in our education,” Coffey said. “We teach kids how to take a test, but we don’t have ways to motivate them and get kids invested in learning.” According to the 2015 report, college graduates are expected to live five years longer than those who did not complete high school. Studies within the report illustrate that college graduates are more likely to find better job opportunities and thereby will have better access to healthier food and health insurance. “The state could provide more support for higher education to lower out-ofpocket costs to students,” said Keith Lindor, dean of the College Health Solutions at Arizona State University. “Financial reasons are the main reason people drop out of college.” Arizona ranks No. 44 out of 50 for overall graduation rate. Chakmakian suggests that healthcare officials need to work with the schools in order to increase healthcare and thus promote healthier living and behavioral patterns. “As I read the report, I tied the results back to community and poverty,” Chakmakian said. “Arizona ranked No. 46 for children in poverty.” Within the past 10 years, the number of children in poverty within Arizona increased 35 percent — from 21.1 percent to 28.5 percent of the state’s children. As one of the bottom

Low rate of preventable hospitalizations: The rate of preventable hospitalizations in Arizona is 40.1 discharges per 1,000 Medicare beneficiaries, ranking 7th in the country. Low rate of cardiovascular deaths: Arizona ranks 10th in the country.

Arizona’s challenges: Low per capita public health funding: Arizona ranks 49th in the country, with only $39 per person of public health funding. High percentage of children in poverty: More than 28 percent of Arizona’s children are living in poverty, ranking the state 46th in the country. Low rate of high school graduation: Arizona ranks 44th in the U.S., with just over 75% of students graduating.


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HEALTHCARE REPORT five states for children in poverty, it is not far fetched to see the correlation between this rate and the absence of children who have healthcare. “There is a bubble line that has to be met to reach the federal policy level,” Chakmakian said. “Many people often qualify for programs such as Medicaid, but they do not know they are a potential candidate for the program.” Yet, the problem is not that there are not ample resources available to provide health aid, but rather, facilities are not given the opportunities to help patients without health insurance. “There is a quality lack of health insurance within the state,” Chakmakian said, “and speaking as a chief medical officer, I think this is a big factor to our low ranking.” However, when given the opportunity, Arizona has been making progress in other areas of healthcare. Over the past two years, the number of preventable hospitalizations decreased from 51.4 to 40.1 per 1,000 Medicare beneficiaries, according to the 2015 Annual Health Ranking report. “We have a lower rate of preventable hospitalizations and that is a good strength to have,” Chakmakian said. “The low number of cardiovascular deaths is probably related to a lower obesity rate.” Within the past year, physical inactivity in Arizona decreased 16 percent and cardiovascular deaths decreased 21 percent. Arizona ranked No. five for cardiovascular deaths in the country. “I see fewer smokers and more people are caring for their physical health,” Coffey said. Additionally, incentives have been put into place in order to continue decreasing the physical inactivity rate. According to the 2015 report, UnitedHealthcare promotes wellness incentives of $20 per month for families who visit fitness centers. “Incentives can be effective and we have seen them work with health and fitness programs,” Chakmakian said. “However, these programs need to be smart and innovative, and should be continuously evaluated to ensure they are working.” Although Arizona is not amongst the high rankers this year, physicians are hopeful that after seeing where the state stands, they can begin to make a difference. “It is sad that we don’t react to these problems until it affects the larger community,” Coffey said. 74

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Health of seniors in Arizona T

he United Health Foundation’s fourth annual America’s Health Rankings Senior Report took an in-depth look at today’s middleaged population (age 50 – 64) who will age into senior status (age 65 and older) over the next 14 years and compared their health across several measures to the health of the middle-aged population in 1999. Here is how Arizona fared:

Ranking: Arizona ranks 27th in America’s Health Rankings Senior Report. It was 22nd last year.

Arizona’s strengths: • High hospice care use • Low rate of preventable hospitalizations • Low prevalence of obesity

Arizona’s challenges: • Low flu vaccination coverage • Low Supplemental Nutrition Assistance Program (SNAP) enrollment • Limited availability of home-delivered meals

Arizona’s highlights: • In the past year, SNAP reach decreased 37 percent, from 67 percent to 42.5 percent of adults aged 65 and older in poverty. • In the past year, home-delivered meals decreased 21 percent, from 14.1 percent to 11.1 percent of seniors in poverty. • In the past 2 years, volunteerism increased 16 percent, from 17.6 percent to 20.4 percent of adults aged 65 and older. • In the past 3 years, poverty increased 15 percent, from 8.2 percent to 9.4 percent of adults aged 65 and older. • In the past 3 years, preventable hospitalizations decreased 24 percent, from 52.9 to 40.1 discharges per 1,000 Medicare beneficiaries.


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By MICHAEL GOSSIE

A

t first blush, you’d think Visit Glendale primarily impacts those traveling to the West Valley. But the organization’s impact hits close to home, too. “Throughout the year, we participate in charity projects that make a difference locally,” says Lorraine Zomok, manager of Visit Glendale. Those projects include collecting more than 8,000 Teddy bears to put on first responders’ trucks to help comfort those who have gone through traumatic experiences, partnering with Soroptimist International for Operation Women Warriors to send care packages to deployed female members of the military and organizing the Treats for the Troops Drive to support members of the military who are deployed overseas. “They are some of the warm and fuzzy things we do that make us feel a little better when we turn off the light at the end of the day,” Zomok says. But what Visit Glendale has done outside of its warm and fuzzy moments is create an organization that has become an economic force that is boosting West Valley tourism to new heights. As Glendale prepares to host its first Final Four is 2017, Az Business sat down with Zomok to talk tourism. Az Business: Why did you decide to rebrand the organization as Visit Glendale? Lorraine Zomok: We changed our name from the Glendale Convention & Visitors Bureau to Visit Glendale last October and revealed it an our annual meeting. We are heading into our sixth year as a CVB and changed because we saw that bureaus throughout the nation were rebranding themselves to better tell the story of who they are. The average visitor really doesn’t know what a convention and visitors bureau is. That’s a lot of words and it really doesn’t speak to who we are. Visit Glendale is action oriented and it really talks about what we do. We are all about that visit experience, that visit destination and it better tells the story of what we are doing. AB: Unlike other CVBs, you represent a region, not just a city. What challenges does that present? LZ: We showcase all 14 communities in the West Valley. We don’t look at it as a challenge, but as a great opportunity. In the City of Glendale, we have 1,500

hotel rooms. But when you encompass the entire West Valley region, it swells to 8,000 rooms. Wildlife World Zoo isn’t in Glendale, it’s in Litchfield Park. Lake Pleasant isn’t in Glendale, it’s in Peoria. All these major destinations make the region what it is. Because we form partnerships, we have more to bring to the table. The visitor coming in doesn’t know that one side of an avenue is Glendale and the other side is a different city. They are looking at us as a whole and we can sell the region as a package. Strength truly does come in numbers. AB: What kind of impact have the last two years — the Super Bowl in 2015 and the College Football Playoff National Championship game in 2016 — had on your organization? LZ: Because of the international spotlight that is now on Glendale and the West Valley, it has continued to change the way we do business each and every day. Ten years ago, we were a visitors center in a small tourism office that really sold a daytime destination. With the 2008 Super Bowl, everything changed: We have been in the world’s spotlight; we are growing our programs, tools and techniques; and each day, we are expanding, learning, growing and trying new things to elevate tourism throughout our region. AB: What impact did those mega events have on tourism? LZ: These mega events are not just one-day events. They really impact the destination for years to come. When you host those big games, great things come and continue to come. Now, because we have been in the international spotlight and host these mega events, we don’t just host travelers and the media for those events, it’s grown tourism throughout the year. When someone is sitting in Chicago in the middle of winter and they see Glendale in February and it’s sunny and in the 70s, we become their destination and vacation place. Or, we become the place where they move their business. It might be a one-day game, but the footprint goes all throughout the year. AB: What does the fact that you’ve hosted sports’ biggest events say about Glendale? LZ: The key thing is partnerships. When these mega events come to Glendale, they AB | July - August 2016

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Visit Glendale

PHOTO BY MIKE MERTES, AZ BIG MEDIA

MAP TO SUCCESS: Lorraine Zomok, manager of Visit Glendale, stands next to a map in the Glendale Visitors Center in which visitors put a pin to mark their hometown. “We’ve had so many people come in,” Zomok says, “we’re going to have to get a bigger map.”

are truly coming to the state of Arizona. What I’ve been most proud of is the partnerships that the convention and visitors bureaus and the Arizona Office of Tourism have formed that are unlike any you see elsewhere in the country. We really stand alone with our partnerships. We are all working together to bring these mega events to Arizona because everyone benefits. We are confident that when people come for these mega events, we not only meet their expectations, we exceed them. That comes with experience, but it also comes with a city staff and a community that believes in rolling out the red carpet, which we do. As a 45year resident of Glendale, what I’ve seen happen to this city gives me goosebumps. What was once farm fields is now home to Super Bowls. There is a lot to be proud of for that. AB: What has guided the success of your organization? LZ: Our advisory boards are crucial and vital to our success. When we became a CVB, we had an advisory board made up of nine members that were elected by our membership to represent the bureau. They make up all sectors of the tourism industry — restaurants, hotels, sports, attractions. These nine members are 78

AB | July - August 2016

the foundation and lifeblood of who we are. They really drive what is best and most vital for the West Valley. After we became a CVB in 2010, an amazing thing happened: our hotel community came together and went to city management and said, “We want to see the CVB succeed and part of that is through funding, so we would like to institute a specialized hotel bed tax that will go to the CVB for marketing and promotion.” We were able to put into place an additional 1.6 percent bed tax. We are honored and thrilled that the hoteliers had the confidence in us to ask for this additional tax. Because we are bed-tax funded, we no longer receive general funds through the City of Glendale, so it’s vitally important that we work closely with the hoteliers. Our second board is a hotel and venue advisory committee that is made up of hoteliers and the major venues. We meet regularly with them on marketing, advertising and national sales initiatives. AB: From where has the growth in your organization come? LZ: It’s coming from our national sales. About 18 months ago, one of the charges that came from the hotel and venue advisory committee was that we needed to grow a national sales division.


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Visit Glendale everyone is truly working together. There is such a sense of We hired a national sales manager, Danielle Dutch from Southern California, and she has really benchmarked so many programs community throughout the region and throughout the State for us. We no longer wish or dream about being at national trade of Arizona. At the end of the day, it’s about getting tourists shows and missions — we ARE attending those national trade to Arizona. When you see all the Valley CVBs and statewide shows, building business and generating leads, which is ultimately (destination marketing organizations) working together along what we send to our hotels to fulfill. We’ve seen phenomenal with the Arizona Office of Tourism to make sure tourism is a success on the national sales side. We are booking hotel rooms, prime economic driver for the state and seeing those success, events, conferences and all of this happened because the hotels we know that we are doing a really good job and the best is yet had confidence in the CVB. to come. AB: Has the visibility you’ve gained from hosting mega events AB: March is always a big month for tourism in Arizona. How helped boost national sales? will hosting the Final Four next year add to that economic impact? LZ: Saying that we’re hosting the Super Bowl, the College LZ: The month of March is our everything. We continue each and every year to benchmark record-breaking occupancy at our Football Playoff National Championship or the Final Four is a hotels and attendance at our Cactus League baseball games. We great opening line when you’re talking with a meeting planner for the first time. That definitely perks up ears and we no longer have have honed expertise since hosting the Super Bowl in 2008 in to answer the question, “Where is Glendale?” because everyone Glendale. We know what to expect and we are ready. AB: What are your goals over the next five years for Visit Glendale? knows where Glendale is now. Mega events help unlock the door, LZ: Growth, growth, growth. We’ve seen what we can do with open the door and give us an opportunity for dialogue. national sales, so where do we go from here? As we approach our AB: How are you reaching potential visitors? LZ: We have always had very strong print advertising. Print 10-year mark in a couple years, we want to grow our staff, grow is still very successful for us and still the No. 1 way people hear our programs and grow our footprint. We always look for the next about us. But we know that we needed to diversify because the great thing around the corner and we are going to find that, grab world is diversifying demographically with generations emerging onto that and nothing will stop us. who are looking at information in different ways. We are tapping into so many new digital resources that a year ago I might not have even known about. In the last year, we’ve had huge success in our SEO, our site re-targeting, our prospecting and our geofencing. Our analytical reports show that this is not only the emerging way, this is the most effective way that many of our visitors are receiving information. We’ve also seen some really fun success during the last spring training season with some customized advertising that showcased the Visit Glendale staff. We know that no matter how you reach out to someone, it’s that personal connection that matters. People want to talk to someone and ask, “Where’s the best burger? Where’s the best place to hang out in town?” We have our Glendale Visitors Center, which is our call to action for all advertising, whether it’s online, social, digital or print. It’s all about getting people to our visitors center because we want that local connection. AB: What do you consider Visit Glendale’s greatest PROVIDED PHOTO success? SUCCESSFUL CAMPAIGN: “Our spring training campaign this year was ‘Always in season,’ and it LZ: Knowing that we have featured a picture of the Visit Glendale staff in their spring training apparel and it really invited truly made a difference in visitors to come meet us,” says Lorraine Zomok, manager of Visit Glendale. “It turned out to our community through be the most successful campaign to date and had a very strong call to action.” our partnerships shows that 80

AB | July - August 2016


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WESTMARC

next The

West

thing

WESTMARC president and CEO brings local experience with her statewide connections

PHOTOS BY ANITA RICHEY, AZ BIG MEDIA

LEADING THE WAY:: Sintra Hoffman, WESTMARC’s president and CEO, came to WESTMARC from ADOT, where she had been a policy advisor to the director and leadership team and an assistant director on public affairs and local government outreach.

By MICHAEL GOSSIE

W

hen WESTMARC’s board of directors was looking for a new president and CEO to lead the economic development organization, Chairman Bill Sheldon said they were looking for a West Valley brand. In Sintra Hoffman, Sheldon said WESTMARC got a West Valley brand with statewide connections. Before taking the leadership role at WESTMARC earlier this year, Hoffman served as assistant division director for the Arizona

84

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Department of Transportation (ADOT). Hoffman led ADOT’s Office of Public Affairs, which focused on building and sustaining relationships with leaders in Arizona’s cities, towns, counties and business community. Prior to her time at ADOT, Hoffman spent 10 years with the City of Surprise, serving as the director of intergovernmental relations and deputy city manager. Az Business sat down with Hoffman to talk about all things West Valley.


Az Business: What attracted you to the position at

job selling Goodyear. What I get to do is market the West Valley as a region and sell the region’s assets on a more global scale. Sintra Hoffman: I’ve been a member of WESTMARC for AB: What kind of impact will the Loop 303 have on economic years. When this opportunity came up, they actually called to development in the West Valley? bounce different names off me and as the conversation went on, SH: In my time at ADOT, we always described transportation (WESTMARC Chairman) Bill Sheldon said, “You really need to as the lifeblood and spine of economic development. Some of the apply for this job.” The more we talked about it, the more excited things we need to be cautious about is how we plan and develop I got because it was an opportunity to really rebuild WESTMARC that corridor because we have multiple jurisdictions that are and recreate it. That’s what really makes me tick: making things my aligned with Loop 303. We need to make sure we plan diligently own and working with other people to get things done. and take advantage of the opportunities that will follow. AB: What has been your biggest initial challenge? AB: How has the image of the West Valley changed? SH: The biggest challenge is that industries coming here today SH: We really don’t have the negative image we had years ago. want the workforce in place right now. We need to find out what What we have is an image and perception that we are so far out we actually do have and messagethat to them, so we are working there. When I worked at ADOT, my co-workers would ask, “Do you on a study to create our Workforce Development Implementation live in California?” People know now that the West Valley has great Strategy. The purpose of the study is to identify the workforce we housing — Verrado and Vistancia are gems — but the perception is have in the West Valley and show the talent that we have. We know that there is still a lot of drive time. The reality is that the majority of we have the talent to get companies to move here and get them the West Valley is within 20 minutes of downtown Phoenix. fully staffed, but the perception is that we don’t. This data is going AB: What sectors do you see as having the greatest potential for to be huge in getting that message out there. economic growth in the West Valley? Then, we need to grow beyond logistics and distribution. It’s SH: I absolutely see the greatest growth coming in healthcare. kind of a double-edge sword because we have the infrastructure We have a very strong base in healthcare. Grand Canyon University — I-10, soon-to-be I-11, the Loops 303 and 101 — that are very has a great nursing program and Midwestern University has important to logistics, but at the same time, we want to take amazing healthcare programs that are producing the workforce it to the next level and make sure we are focused on advanced needed to fuel the growth that we are already seeing in the West manufacturing, advanced technology and healthcare. Valley’s healthcare corridor. AB: What are WESTMARC’s strengths? AB: How has the West Valley capitalized on hosting the Super Bowl, the College Football Playoff National Championship and SH: It’s the strength of the membership. The Economic other mega events? Development Committee is so engaged. They are really vested WESTMARC?

in this. WESTMARC is more relevant than ever because the competition extends beyond the region. It’s not East Valley vs. West Valley. It’s Phoenix vs. Denver. It’s Phoenix vs. Sacramento. We are really banding together more as a region and I see that as one of WESTMARC’s strengths: the ability to get communities to work together to sell the region and work together effectively and celebrate each other. The crash of the economy taught us all that we are not stand-alone. We need each other. AB: What are WESTMARC’s priorities or goals for the next year? SH: No. 1 is getting that Workforce Development Implementation Strategy moving forward and getting the buy-in from all of the West Valley cities. The other piece is marketing that. Peoria does a great job selling Peoria. Goodyear does an amazing

SH: It’s another opportunity to put us on the map nationally and get national exposure. When I first interviewed, I described our two major industries as healthcare and sports. We have the majority of the spring training complexes here, we have the Coyotes, we have the Cardinals and this is a sports town. And we need to market it that way. AB: What are your goals for WESTMARC? SH: No. 1 is bringing stability to the organization and getting the word out to the world and using the assets we have to position the West Valley for economic development. What that means to me is that our messaging has to be coordinated. We have a lot of new housing out here and we have a lot of new development, but there is still a lot of dirt out there, so we still have a lot of untapped potential. AB | July - August 2016

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WESTMARC

World

view Greater Maricopa Foreign Trade Zone brings investment and jobs to the West Valley By MICHAEL GOSSIE

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A

Foreign Trade Zone What is a Foreign Trade Zone (FTZ)? An FTZ is an area that, for U.S. Customs purposes, is considered to be international commerce. Any foreign or domestic material can be moved into an FTZ without being subject to U.S. Customs duties. An FTZ is operated as a public venture sponsored by a municipality or other authority.

Doug Ducey

Why do communities develop FTZs? Local communities benefit from the increased economic development and business development/retention that result from the FTZ. Foreign Trade Zones provide an attractive business climate and encourage foreign or domestic companies to expand and retain operations in the U.S. that might otherwise be relocated overseas. The result is more jobs for the region.

Why do companies use FTZs?

Sintra Hoffman

Impact on West Valley

Companies utilize Foreign Trade Zones in order to reduce operating costs associated with a U.S. location that can be avoided when operating from a foreign site. In Arizona, real and personal property taxes may be reduced by 72 percent. These benefits allow firms to be cost competitive at their U.S.-based operations.

What is Foreign Trade Zone No. 277? On Dec. 22, 2010, the Foreign Trade Zones Board issued a Grant of Authority under Board Order No. 1733 to establish Foreign Trade Zone No. 277 to serve Western Maricopa County and designated Greater Maricopa Foreign Trade Zone (GMFTZ) as the grantee of the zone. Since that time, the zone has spurred investment in infrastructure, speculative industrial buildings and attracted more than 1,400 new jobs and $448 million in capital investment.

rizona has definitely gone global. “We want to extend our hand so that Arizona is an inviting place for foreign direct investment and for companies that are looking to relocate,” says Arizona Gov. Doug Ducey. But Arizona hasn’t always been as attractive to global companies. “At one time, we had some issues in the West Valley where we were getting glossed over for economic development opportunities,” says Art Othon, chairman of Greater Maricopa Foreign Trade Zone. “We were on the short list to become a new site for target.com for its merchandising warehousing and Internet distribution.” Target chose another location and Othon says only one thing prevented the West Valley from landing that economic development prize. “We did not get it because we did not have foreign trade zone status,” Othon recalls. “At that point, a couple economic developers said, ‘enough is enough.’”

Ron Jones

Source: WESTMARC

Scott Whyte

Earl Wiggins

Since WESTMARC helped spearhead the organization and approval of Foreign Trade Zone (FTZ) No. 277 in 2010, the zone has become a catalyst for attracting new economic development and businesses to the West Valley and creating jobs. Since its inception, the Greater Maricopa FTZ (GMFTZ) has attracted an estimated $448 million of capital investment and created more than 1,400 West Valley jobs within WESTMARC’s cities. Based on an economic impact study completed by Elliott D. Pollack & Company in March, it is estimated that an additional 1,500 jobs will be added over the next six years as a direct result of FTZ No. 277. These figures are exclusive of the jobs that are created as a result of new construction, as well as the jobs that are created from the additional ripple effects throughout the economy. “As the first site activated in Zone 277 in 2011, Sub-Zero experienced significant savings from the real and personal property tax reductions,” according to Ron Jones, plant manager for SubZero, Inc. “Our facility has grown consistently in the past five years and reached capacity, which has led to a facility expansion scheduled for completion in October (of this year).” By definition, an FTZ is a governmentdesignated site where foreign and domestic materials remain in a kind of international commerce limbo. While the goods remain in the zone, the materials may be stored, manipulated, mixed with domestic and/or foreign materials, used in assembly or manufacturing processes, or exhibited for sale without triggering the payment AB | July - August 2016

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WESTMARC of U.S. Customs and Border Protection (CBP) duties and excise taxes. Imports may flow directly into the zone and be held there indefinitely duty free. Duty is only assessed when those goods are shipped out of the zone and into the United States marketplace.

Catalyst for growth

5 reasons to use an FTZ 1. Improve cash flow • • • • •

Import duties are deferred until goods leave the zone Re-exported goods which never enter U.S. commerce are not subject to duties No duty is paid on scrap, waste or damaged goods Company can use the duty dollars during the times the goods are in the FTZ. The final duty rate paid is that of the component, part or finished article, whichever is lowest. • Products transferred from zone to zone are duty free. • Weekly entry process reduces merchandise processing fees.

FTZ designation is a powerful tool for economic developers as this federal program provides importers, third-party 2. Reduce paperwork and expense logistics providers, manufacturers and For distribution and manufacturing, companies may consolidate multiple exporters with a number of cost-saving customs entries into one per week. benefits, including reduced duties, This process reduces customs brokerage costs and merchandise costs. consolidated weekly entries and local tax 3. Reduces Arizona real and personal property taxes by reclassification. Having this designation 72 percent within a community provides a value-added Activated companies meeting federal and local eligibility requirements benefit that can be utilized when competing can benefit from a 5 percent assessment rate (reduced from 18 against other locations for a corporate percent) on new investment in personal and real property. relocation, expansion or investment. This designation is given through the U.S. 4. Security Department of Commerce and each of The top priority of U.S.Customs and Border Protection (USCBP) is security. As an activated FTZ, operators enjoy the highest level of the approved sites are monitored by U.S. security as an importer. Customs & Border Protection. Discounted cargo insurance rates — up to 40 percent less — have “We are creating a cluster of advanced been negotiated. manufacturing and innovation that provides the foundation to drive sustainable growth 5. Reduce supply chain time in employment and productivity,” said Scott FTZs can eliminate delays related to U.S. Customs clearances. Special Whyte, Peoria’s economic development direct delivery procedures can be requested to expedite the receipt of services director. “This FTZ designation merchandise in company facilities, reducing the inventory sicle time. fosters an environment that facilitates Source: WESTMARC business attraction and expansion, as well as encourage international trade in the region.” Othon says the GMFTZ features seven magnet sites and seven usage-driven sites. single shipment for a total fee of $485 Four companies are active in operations Benefits of FTZ per week, which translates into savings — Sub-Zero, Cookson Company, Maxwell Those benefits are numerous: of $226,980 per year. Technologies and Dick’s Sporting Goods • Big savings in processing fees. The • Direct delivery is a CBP procedure only — and three more companies are being 2000 Trade and Development Act allowed in an FTZ. This benefit gives activated this year. contained a provision that provided the users the ability to sign for CBP While most FTZs are applied for and for “weekly entry” procedures in all upon receipt of goods that normally approved for a single city, the GMFTZ FTZs. Companies located outside have to go to another location for a is one of only a few in the United States FTZs pay a 0.3464 percent (value of signature before the goods can be that was supported by a consortium of merchandise) fee for every shipment delivered. Importers can cut out up cities for an entire region. And that move processed by CBP. The minimum fee to two days of inbound time on their has paid off. Companies that have taken is $25, and maximum (which applies receipt of goods. advantage of FTZ status include Subto any shipment valued at $140,000 • Specifically in Arizona — and within Zero, Dick’s Sporting Goods and Cookson or above) is $485, regardless of the no other state — there is a tax benefit amount of duty paid. Say a company in Goodyear; Maxwell Technologies in tied to the real estate and property located in an FTZ received 10 Peoria; and IRIS USA in Surprise. taxes that all real property, machinery shipments, each with a value of only “The FTZ was one of the benefits we and equipment pays in Arizona. The $150,000, every week. At $485 each, saw when we were deciding where to FTZ re-classification under Arizona the processing fees outside the zone move,” says Earl Wiggins, senior director law allows for any property in a FTZ would be $4,850 weekly and $252,200 of Maxwell Technologies. “I’ll be the first that is approved and activated to be annually. Within the Zone, these same to admit that I dragged my feet because I re-classified down from 20 percent 10 receipts would be processed as a didn’t understand the benefits.” 90

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WESTMARC valuation to 5 percent valuation. Therefore, FTZ users, tenants, owners and operators receive a discount on their taxes of 75 percent annually. • Eliminating duty drawback. Goods that are imported and stored in an FTZ may be re-exported without ever incurring duties. This eliminates the need to file for duty drawback refunds, a lengthy

procedure that ties up funds. “Having the GMFTZ definitely gives economic developers another tool to attract new businesses,” says Sintra Hoffman, president and CEO of WESTMARC, which provides marketing and administrative services to GMFTZ. “The GMFTZ also gives the West Valley an amazing opportunity for growth.”

Greater Maricopa Foreign Trade Zone FTZ No. 277 is organized under the Alternative Site Framework. Under this framework, there are two types of site: Magnet Sites and User-Driven Sites. Magnet Sites are sites that are pre-approved for future zone users. Future Magnet Sites may be added inside the FTZ No. 277 service area if approved by the U.S. Foreign Trade Zones Board. User-Driven Sites are sites that can be designated at any location within the western part of Maricopa County with a qualified user using the fast-track process that takes 30 days for federal approval.

GMFTZ sites

Sub-Zero, Inc. 4295 S. Cotton Ln. Goodyear Size: 37.74 acres

IRIS USA, Inc. 13423 W. Cactus Rd., Surprise Size: 30.1 acres

1 2 3 4 5 6 7

Type: User-Driven Site

Type: User-Driven Site

4320 S. Cotton Ln. Goodyear Size: 3.53 acres

Type: User-Driven Site

Buckeye Industrial Park

Turner Road and Baseline Road, Buckeye Size: 185 acres

Type: Magnet Site

Maxwell Technologies, Inc.

Conn’s, Inc.

8644 W. Ludlow Dr., Peoria

100 N. 127th Ave., Avondale

Size: 2.62 acres

Type: User-Driven Site

8 9 10 11 12 13 14

Schoeller Allibert, Inc.

600,000 square feet

Type: Spec./User-Driven Site

Airport Gateway at Goodyear

PV303 Industrial Park

(includes Michael Lewis Co. on 30 acres)

Indian School Road and Loop 303

Van Buren and Bullard Avenues, Goodyear Size: 230.25 acres

Type: Magnet Site

Size: 616,818 square feet Type: Spec./Magnet Site

PV303 Industrial Park

The CornellCookson Company

(includes Dick’s Sporting Goods on 53.75 acres)

1901 S. Litchfield Rd., Goodyear

Size: 196.78 acres

Size: 14.5 acres

Loop 303, Goodyear

Type: Magnet Site

Surprise Pointe

Type: User-Driven Site

REI (Recreational Equipment, Inc.)

Waddell and Litchfield Roads, Surprise

Loop 303 and Camelback Road, Goodyear

Size: 133.01 acres

Size: 34 acres

Type: Magnet Site

Type: User-Driven Site

Goodyear Crossing industrial Park

10 West Arizona Logistics Hub

16885 W. Commerce Dr., Goodyear

339th Avenue and 1-10, Buckeye

Size: 198 acres

Size: 319.84 acres

Type: Magnet Site

Source: WESTMARC

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Type: Magnet Site

How can a company qualify? How does a company become part of the Greater Maricopa Foreign Trade Zone and reap the benefits associated with the GMFTZ? Here are the steps that must be taken to qualify: 1. A prospective site or company must be located (or looking to locate) within the GMFTZ service area. 2. The prospective Company should contact the city’s or town’s economic development office to determine if there are sites available and what the city’s/town’s tax policy is comprised of. 3. The prospective landowner and/or user will need to contact the grantee/ WESTMARC regarding their desire to be part of the GMFTZ project. 4. The major taxing entities must all submit letters for inclusion within the application, reflecting their support of the proposed FTZ site. This may take time and require meetings and formal agreements, while in other cases it may simply require a pre-approved letter. 5. An application must be submitted to the FTZ board for review and approval, along with the proper corresponding fee, depending on application type. More information: gmftz.org


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AzBusiness magazine July/August 2016  

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