AzBusiness magazine September/October 2014

September // october 2014 A Z BUSINESS SEPTEMBER // OCTOBER 2014

SEPTEMBER // OCTOBER 2014

Adolfson & Peterson Construction • Alliance Residential Company • American Express • Arizona Diamondbacks • AXA Advisors • Banner Casa Grande Medical Center • Cancer Treatment Centers of America • CBRE, Inc. • Charles Schwab • Cresa Phoenix • Desert Diamond Casinos and Entertainment • DIRTT Environmental Solutions • Fennemore Craig • GoDaddy • Goodmans Interior Structures • Grant Thornton • Harrah’s Ak-Chin Casino Resort • Homeowners Financial Group • Hyatt Regency Phoenix • Infusionsoft • International Cruise & Excursions, Inc. • Kitchell • LaneTerralever • Laser Spine Institute • Mayo Clinic • Miller Russell Associates • National Bank of Arizona • Phoenix Children’s Hospital • Quarles & Brady • Rider Levell Bucknall • Ryan, LLC • Scottsdale Lincoln Health Network • Shutterfly, Inc. • Sonora Quest Laboratories • Sundt Construction • The CORE Institute • Telesphere • UnitedHealthcare of Arizona • University of Advancing Technology • Vanguard • Adolfson & Peterson Construction • Alliance Residential Company • American Express • Arizona Diamondbacks • AXA Advisors • Banner Casa Grande Medical Center • Cancer Treatment Centers of America • CBRE, Inc. • Charles Schwab • Cresa Phoenix • Desert Diamond Casinos and Entertainment • DIRTT Environmental Solutions • Fennemore Craig • GoDaddy • Goodmans Interior Structures • Grant Thornton • Harrah’s Ak-Chin Casino Resort • Homeowners Financial Group • Hyatt Regency Phoenix • Infusionsoft • International Cruise & Excursions, Inc. • Kitchell • LaneTerralever • Laser Spine Institute • Mayo Clinic • Miller Russell Associates • National Bank of Arizona • Phoenix Children’s Hospital • Quarles & Brady • Rider Levell Bucknall • Ryan, LLC • Scottsdale Lincoln Health Network • Shutterfly, Inc. • Sonora Quest Laboratories • Sundt Construction • The CORE Institute • Telesphere • UnitedHealthcare of Arizona • University of Advancing Technology • Vanguard • Adolfson & Peterson Construction • Alliance Residential Company • American Express • Arizona Diamondbacks • AXA Advisors • Banner Casa Grande Medical Center • Cancer Treatment Centers of America • CBRE, Inc. • Charles Schwab • Cresa Phoenix • Desert Diamond Casinos and Entertainment • DIRTT Environmental Solutions • Fennemore Craig • GoDaddy • Goodmans Interior Structures • Grant Thornton • Harrah’s Ak-Chin Casino Resort • Homeowners Financial Group • Hyatt Regency Phoenix • Infusionsoft • International Cruise & Excursions, Inc. • Kitchell • LaneTerralever • Laser Spine Institute • Mayo Clinic • Miller Russell Associates • National Bank of Arizona • Phoenix Children’s Hospital • Quarles & Brady • Rider Levell Bucknall • Ryan, LLC • Scottsdale Lincoln Health Network • Shutterfly, Inc. • Sonora Quest Laboratories • Sundt Construction • The CORE Institute • Telesphere • UnitedHealthcare of Arizona • University of Advancing Technology • Vanguard

40 most

4 1 0 2 t A I h D g i E r y M Companies p G o I C ZB A

Admired David S. Crawford President and CEO Sundt

$4.95

CONNECT » GUIDE » INSPIRE A ZRE : ARIZONA COMMERCIAL REAL ESTATE

Connect » Guide » Inspire

David A. Dexter President and CEO Sonora Quest Laboratories

Clate Mask Co-founder and CEO Infusionsoft

Arizona Hospital & Healthcare Association Financial Planning Most admired companies

46

62

51

Beth Soberg President and CEO UnitedHealthcare of Arizona

Az Meeting Professionals

81

4 1 0 2 t A I h D g i E r y M p G o I C ZB A

CTS25 CTS25

the annual gathering of the most innovative minds in business and engaging academic thought leaders to further the science of service

Don’t miss this once yearly event!

compete 4 through 1 0 2 t service A I h D g November 5 - 7, 2014 • Hilton Scottsdale Resort & Villas • Scottsdale, AZ

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i r y

E M

who speaks for the customer on your executive team?

Truly world class organizations leverage service for competitive advantage; the Compete Through Service (CTS) Symposium is where they learn how.

New service methodologies are discussed at CTS, and participants have the advantage of bringing these discoveries to their organizations FIRST.

p G o I C ZB A

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The 25th Annual Compete Through Service Symposium will feature thought-provoking insights from: Amazon.com • The Arizona Diamondbacks • Banner Health • The Brainzooming Group • The Center for Services Leadership • Dialog Direct • Global Business Policy Council (GBPC) r• Great Clips, Inc. • HEASLEY&PARTNERS, Inc. • The INSIGHT Group • A. T. Kearney • Salesforce.com • Service 360 Partners • The Service Profit Chain Institute • Siemens • Bruce Temkin, Temkin Group • Vocera Communications • W. P. Carey School of Business • Danny White • and more!

See wpcarey.asu.edu/cts for complete, current list.

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AB | September-October 2014

1

Table Of Contents 6 Up Front

4 1 0 2 30t A I h D g i E r y M p G o I 52 C ZB A This issue took 30 years to create

12 CEO Series

A lot of history was made in 1984.

• Ronald Reagan defeated Walter F. Mondale with 59 percent of the popular vote, the highest since Richard Nixon’s 61 percent in 1972.

14 Healthcare

20 Real Estate

22 Technology

• Apple Inc. placed the first Macintosh personal computer on sale in the United States.

24 Law

• The 56th Academy Awards were hosted by “Tonight Show” host Johnny Carson. “Terms of Endearment” earned the Oscar for Best Picture.

26 Banking

• Vanessa L. Williams became the first Miss America to resign after nude photos of her appeared in Penthouse magazine.

28 Marketing

• Prince had the biggest song of the year with “When Doves Cry.”

30 Tourism

• “Dynasty” was the No. 1 show on TV.

32 Dining

Planning

There is one other historic event to come out of 1984: That was the year that Mike Atkinson founded AZ Big Media, which publishes this magazine and seven other publications, including Ranking Arizona, Experience AZ and AZRE: Arizona Commercial Real Estate. We are proud to be the voice of Arizona's business community. For three decades, we have told your stories, identified trends, profiled your leaders and championed your companies. It’s a task we embrace with great determination and execute with great passion.

51 Most Admired Companies

We continue that mission in this issue with profiles of this year’s Most Admired Companies.

We hope you enjoy this issue as much as we enjoy showcasing Arizona business.

34 Executive

Education

38 Financial

81 AzMPI

82

Here’s to our next 30 years.

ON THE COVER: Sundt Construction, Sonora Quest Laboratories, Infusionsoft and UnitedHealthcare of Arizona are Arizona-based companies who have earned Most Admired Companies awards for five consecutive years.

Az Business on the Go: azBIGmedia.com 2 AB | September-October 2014

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

4 1 0 2 t A I h D g i E r y M p G o I C ZB A AB | September-October 2014

3

Polsinelli EARNS Beacon of Justice AWARD

Polsinelli earned the prestigious Beacon of Justice Award from the The National Legal Aid and Defender Association for its commitment to the delivery of pro bono legal services to those who cannot afford counsel including volunteer work done in connection with the Volunteer Lawyers Program Children’s Law Center Minor Guardianship Project. Recipients were recognized for their devotion of significant pro bono time and resources and their dedication to creating and implementing innovative strategies that improve life outcomes for low-income individuals.

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

4 1 0 2 t A I h D g i E r y M p G o I C ZB A

Chandler entrepreneur honored for innovation

Andrew Wyant, president of Chandler-based National Academy of Sports Medicine, earned Ernst & Young’s Entrepreneur Of The Year 2014 awards for the Mountain Desert region. Wyant was selected as a finalist from nearly 100 nominations and is one of just 25 finalists representing leading businesses in Colorado, Arizona and New Mexico. NASM has increased its revenue 25 percent annually in the past three years with Wyant at the helm.

Women of Avnet honored

Four of Avnet Technology Solutions’ U.S.-based executives were among the 2014 CRN Women of the Channel.

The Avnet executives honored were Alison Challman, vice president, marketing and brand solutions, HP Solutions group; Nicole Enright, vice president, marketing and strategy acceleration; Rebecca Handley, national sales director; and Jessica Yeck, vice president, sales, HP Solutions group. The annual list highlights the impact female executives are having on the advancement of the IT channel industry as a whole.

Commerce Authority offers boost

The Arizona Commerce Authority selected 18 Arizona-based, early stage technology companies for AZ Fast Grants, which provides them with training and technical assistance to help them commercialize their innovations, grow their businesses and create quality jobs. “Early stage companies play a key role in developing innovations that fuel our state’s economy,” said Sandra Watson, the ACA’s president and CEO. AZ Fast Grant recipients include Arbsource, Tempe, bio and life sciences; Arizona Medical Systems, Peoria, bio and life sciences; Elliptical Mobile, Chandler, advanced manufacturing; Engineering Science Analysis Corp., Tempe, aerospace/defense; Grannus, Tucson, cleantech/renewable energy; Hildeez Enterprises, Peoria, bio and life sciences; MediCoventures, Peoria, bio and life sciences; Movement Interactive, Laveen, bio and life sciences; Kulira, Peoria, bio and life sciences; Prime Solutions Group, Goodyear, aerospace/defense; QuantTera, Scottsdale, advanced materials; Saccadous, Scottsdale, bio

and life sciences; Score Algae, Scottsdale, cleantech/renewable energy; SiO2 Nanotech, Phoenix, advanced materials; StatTransfers, Flagstaff, IT software; Verve, Peoria, bio and life sciences; Vicinity Health, Chandler, bio and life sciences; and YourLabs, Tucson, IT software.

4 AB | September-October 2014

EDITORIAL Editor in chief: Michael Gossie Associate editor: Amanda Ventura Interns: Meryl Fishler | Elizabeth Joyce | Jesse Millard | Stephanie Romero | Kaleigh Shufeldt

Az BUSINESS MAGAZINE Senior account manager: David Harken Account managers: Ann McSherry | Shannon Spigelman ART Art director: Mike Mertes Graphic designer: Shavon Thompson Intern: David Robles DIGITAL MEDIA Web developer: Eric Shepperd Digital manager: Perri Collins MARKETING/EVENTS Manager: Angela Vaughn

OFFICE Special projects manager: Sara Fregapane Executive assistant: Mayra Rivera Database solutions manager: Cindy Johnson

AZRE | Arizona Commercial Real Estate Director of sales: Steve Koslowski AZ BUSINESS LEADERS Director of sales: Mark Blum RANKING ARIZONA Director of sales: Sheri King

EXPERIENCE ARIZONA | Play Ball Director of sales: Carla Baran

AZ BIG MEDIA HOME SHOWS SCOTTSDALE HOME & TRAVEL SHOWS Exhibit directors: Kerri Blumsack | Tina Robinson

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 2014 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.

AN 8 T N H UA L

presents

4 1 0 2 t A I h November 13, 2014 D g i E r y M p G o I C ZB A Since 1931, Financial Executives International is recognized globally as the leading organization for senior-level financial executives. FEI Arizona is proud to present the 8th annual CFO of the Year Awards. This event is the most prestigious financial executive awards in Arizona and the one not to miss!

CFO of the Year Awards Celebration November 13, 2014 6 p.m. - 8 p.m.

Camelback Inn Resort, Scottsdale

Through October 24th - Tickets $95 / Corporate Table of 10 $900 After October 24th - Tickets $120 / Corporate Table of 10 $1,150 Be there for the announcement of the 2014 CFO recipients.

For more information on table sponsorships, call 602.277.6045

To purchase tickets, visit feiaz.org

AB | September-October 2014

5

UP FRONT Lighting up Arizona business Young entrepreneur uses ASU grant to jump-start innovative business By ELIZABETH JOYCE

N

ot many people look at sign flippers or signs posted along the road and think they know how to improve those companies’ advertising. Jeff Kunowski went a step further and made it happen in a bright and eco-friendly way.

Kunowski graduated from ASU in 2011 and received the ASU Edson Student Entrepreneur Initiative grant, that helped jumpstart his business, Illumin8, which offers portable LED signs in all shapes and sizes with rechargeable batteries.

“Being younger and starting a business out of college, it’s hard getting people to take you seriously,” Kunowski said. “But winning the award from ASU gave validation to the whole thing.” It also showed Kunowksi that there were people who not only believed in him, but also believed in his company.

Kunowksi’s ability to help Illumin8 pull big-name clients like Anheuser-Busch, the Phoenix Suns and Live Nation caught the attention of MK Solutions Group, a technology solutions provider for sports and entertainment venues. The two companies formed a strategic alliance to sell Illumin8’s products to venues nationwide.

Now that Illumin8 and MK Solutions Group are starting to grow, Kunowski looks forward to the future of his company. The challenge is no longer his age, but “time management and growth.”

His advice to other college students who are looking to start their own business: “Networking. Take all the opportunities that you can and use your student status to your advantage. You aren’t a threat if you want to learn about the industry.”

4 1 0 2 t A I h D g i E r y M p G o I TOP 10 C ZB A Most Valuable Brands of 2014

PHOTO BY SHAVON ROSE, AZ BIG MEDIA

SHINING BRIGHT: Jeff Kunowski, the founder of Illumin8, a

Scottsdale-based company that provides innovative LED signage products, had 12 internships while he was a student at ASU.

Are you a hoarder?

According to a survey by used electronics marketplace uSell.com, 68 percent of U.S. residents suffer from compulsive gadget hoarding.

To calculate the percentage of gadget hoarders in the U.S. business community, uSell.com asked 1,000 business executives, sales people, and entrepreneurs how long they keep devices they no longer use: • 68 percent have kept an old gadget for 2+ years (gadget hoarding) without using the device.

• 70 percent currently have multiple old gadgets that they haven’t used within the past 3 months.

• Only 25 percent admit to having a “gadget hoarding” problem.

Additionally, more than 55 percent of respondents say that if a business meeting participant pulls out a damaged or old cell phone, this negatively affects their impression of him or her.

6 AB | September-October 2014

Category

Value

Rank in 2013

Brand Value % change

1

Technology

$159B

2

40%

2

Technology

$148B

1

-20%

3

Technology

$107B

3

-4%

4

Technology

$90B

7

29%

5

Fast food

$86B

4

-5%

6

Soft drinks

$81B

5

3%

7

Credit card

$79B

9

41%

8

Telecoms

$78B

6

3%

9

Tobacco

$67B

8

-3%

Retail

$64B

14

41%

10

4 1 0 2 t A I h D g i E r y M p G o I C ZB A of Central Arizona

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

You can support UCP and the thousands of families they serve every year through the Arizona Charitable Tax Credit. Arizona taxpayers may be eligible for an Arizona income tax credit of up to $400 for married taxpayers and up to $200 for single taxpayers when they make a donation to UCP, a qualifying charitable organization.

Visit www.UCPofCentralAZ.org to learn more.

AB | September-October 2014 1802 West Parkside Lane - Phoenix, AZ - 85027 - 602-943-5472

7

UP FRONT Setting the table

Wealth management advisor established an early work ethic that helps guide her clients’ future

4 1 0 2 t A I h D g i E r y M p G o I C ZB A

A

By MICHAEL GOSSIE

s managing partner at Miller Russell Associates, a leading Phoenix-based investment and wealth management advisor, Christina Burroughs works with client families on investment planning, strategic multigenerational planning and philanthropy. But her work life wasn’t always so sophisticated.

PHOTO BY SHAVON ROSE, AZ BIG MEDIA

CHRISTINA BURROUGHS: “I am inspired daily, working with a world-

What was your first job?

At 14, I was eager to work and was eligible for a work permit, so I went out and found a job. My first job was busing tables.

What did you learn from your first job?

class team focused on meeting client goals, at the largest independent, most highly regarded firm serving high net worth clients in Arizona.”

What was your first job in your current industry?

I learned a lot from that job: to be proud of giving 100 percent effort, that sense of self-determination and freedom that comes from working hard and earning an income, and that working with others means being part of a team. All of which still contribute to my success today.

I was an associate at Tanager Financial Services in 2001. I was coming out of the field of clinical psychology and had an opportunity to join what was, at that time, the largest, most highly regarded multi-family office for high net worth clients in New England. It was an incredible opportunity and a risk worth taking.

What did you earn at that first job?

What has been your biggest professional challenge?

I earned minimum wage, $3.35 an hour, plus tips the servers shared with me – big money at 14. I worked hard busing tables because I wanted a share of those tips – doing my job well helped the servers do their jobs well, which earned me a share of their tips.

I was momentarily in an environment where the clients’ interests were not the first and last consideration. Since this is an absolute requirement to me professionally, I joined and have helped grow a firm, Miller Russell Associates, where that value is nonnegotiable.

Social media and sales: Dynamic or dud?

Supporters say a vigorous social media presence is essential for success in today’s hyper-competitive direct sales environment. But is social media the go-to method salespeople use to sell more?

According to a recent study, most salespeople said “no.” Research from Behavioral Sciences Research Press showed almost 70 percent of salespeople said traditional forms of initiating contact with potential buyers — face-to-face (36.2 percent) and phone calls (32.3 percent) — are still the best for generating sales. Only about 16 percent endorsed technology-driven methods, such as email (12.6 percent), social media (3.1 percent) and text messaging (0.4 percent).

8 AB | September-October 2014

The keys to retaining talented employees BMO Harris Bank released a study that found that business owners and executives in Arizona believe two of the most critical strategies for retaining talented employees, other than a salary increase, are to offer flexible hours (37 percent) and provide opportunities for education, training and development (31 percent).

Other strategies seen to be most effective for retaining talented employees include: » Increased health and dental benefits (25 percent) » Telecommuting (20 percent) » Increased paid vacation time (17 percent)

4 1 0 2 t A I h D g i E r y M p G o I C ZB A AB | September-October 2014

9

UP FRONT The ears have it

Kurth wants people to check their hearing before it’s too late

By STEPHANIE ROMERO

D

4 1 0 2 t A I h D g i E r y M p G o I C ZB A PHOTO BY SHAVON ROSE, AZ BIG MEDIA

DR. CATHY KURTH: “I think I’m really truly blessed to have fallen into a field I love,”

said the founder of the Audiology & Hearing Aid Center. “I think any field you choose to go into you have to have a love, you have to have a passion and working with the hearing impaired or people with hearing loss is truly my passion.”

Arizona businesses overcoming economic adversity

One in five Arizona business owners say they have grown their business despite the effect of the economy, according to the American Express OPEN Small Business Monitor. In addition, only 39 percent of Arizona business owners report having cash flow issues, compared with the national rate of 49 percent.

Other findings about Arizona business owners: • 77 percent say they are “very happy” with their lives.

• 76 percent of entrepreneurs are confident they can access the capital they need to build their business.

• 45 percent say that the economy stresses them out.

• On average, business owners believe they will need $1,250,000 to retire.

Waste Management Phoenix Open earns honor The Waste Management Phoenix Open was named Project of the Year

by Environmental Leader magazine after it demonstrated its commitment

10 AB | September-October 2014

to environmental sustainability at the annual zero waste golf tournament. In 2012, Waste Management launched the “Zero Waste Challenge,” an initiative aimed at controlling materials brought into the event. The Zero Waste Challenge ensures that all of the waste generated is recycled, composted, or used in waste-toenergy facilities with vendors only using products and materials that can be composted or recycled at their end-of-life.

r. Cathy Kurth fell into the field of audiology by accident and founded the Audiology & Hearing Aid Center 30 years ago and now has three locations in Scottsdale. Audiology & Hearing Aid Center is a full-service hearing care clinic that offers hearing evaluations, hearing aid sales, service and accessories, hearing protection and earwax management. Kurth recently launched “Mission 1,000,” aimed at giving 1,000 free hearing screenings by the end of the year.

What inspired you to pursue a career in audiology?

I thought I was going to work toward my doctoral degree in psychology. My roommate’s father was an ear, nose, and throat doctor and was trying to get his daughter interested in audiology. She got the PhD in psych and I got interested in audiology.

I later got my doctoral degree in audiology and I’ve loved it ever since. So I guess it was a lucky accident.

What was your vision for the Audiology and Hearing Aid Center?

I started out with a 400-square-foot office, a parttime employee and me part time. The rest of the time I worked for an ear, nose and throat group. I think part of my inspiration was seeing the patients we had to refer out for any hearing assistance. They weren’t having many good choices for their hearing healthcare, so I opened up my office. Today, I have three locations with more than a dozen employees and I get to make a difference in people’s lives when it comes to being able to hear and communicate again.

What inspired you to start Mission 1,000?

How effective has this approach been so far?

There are so many health aspects that we routinely get tested and screened for, but most people do nothing about their hearing until there’s a problem.

Mission 1,000 was our opportunity to provide a free hearing screening to anyone over the age of 50, whether they suspect a hearing loss or not. When you look at 36 million Americans with hearing loss, a very high percentage of those are in the 50- to 70-year-old range. We need to protect our hearing.

Once we lose it, we don’t get it back again.

4 1 0 2 t A I h D g i E r y M p G o I C ZB A AB | September-October 2014

11

CEO

Head of the class

Mueller uses hybrid model to turn GCU into a winner in the boardroom and classroom

4 1 0 2 B t A I h D g i E r y M p G o I C ZB A

By MICHAEL GOSSIE

PHOTO BY LILLIAN REID, AZ BIG MEDIA

BRIAN MUELLER: “We don’t have faculty who are making a lot of money and not teaching

rian Mueller has created students,” said the CEO of Grand Canyon University. “We pay our faculty very well, but they all the most successful business model in teach full loads. That makes a huge difference in our financial model.” education. When he took over as Grand Canyon University’s CEO in 2008, there How did you make that happen so quickly? were fewer than 1,000 students on campus and about 10,000 I believed if we could get an infusion of funds, we could online. Today, GCU has 8,500 students on campus and 50,000 create something special. We came in June 2008, went public online, with a new East Valley campus coming in 2015. Mueller in November, got an infusion of $254 million, put huge dollars also helped launch GCU's College of Science, Engineering back into the ground campus and went to work building a and Technology. Az Business magazine caught up with the brand based on the excellence of the education.

Antelopes’ biggest fan to find out how he helped GCU make the grade in business and with the books.

How has the business model for higher education changed?

If you think of the 1970s, 1980s and 1990s, universities built their reputations based on the quality of their traditionalage students. Then, a market opened up with adults who wanted to go back to college and earn degrees while they were working and raising families. Most of the universities that ended up serving those students were private, for-profit universities and there was far greater demand than supply.

You could grow as fast as you wanted and charge whatever you wanted and people were willing to pay for that convenience.

Everything changed in 2008. Tax dollars that helped fund public universities were in decline and donor bases dried up.

Those mid-tier universities were forced to look to the adult market, which flipped the supply-demand in favor of the working adult student.

How did you use that shift to help GCU? I came here in 2008 because I saw an opportunity to create a hybrid campus — a strong traditional campus with a strong component of working adults — that shared a common infrastructure and spread the costs across two students bodies. By creating a hybrid campus, we were able to lower the price point significantly. After scholarships, the average GCU student pays $7,800 in tuition. Most students at private universities pay between $25,000 and $50,000 a year.

12 AB | September-October 2014

How did you get investors to buy into the IPO in 2008?

We were the first company to go public in three months, but I had been at Apollo Group for 22 years and was the CEO of the University of Phoenix Online when we went public as a tracking stock between 2000 and 2004, which turned out to be the most successful tracking stock in the history of Wall Street.

So I knew those guys and they had made good dollars with us before. They didn’t completely buy the business model. Nobody believed that you could be profitable with traditional students because it would always be a money loser. But the truth is, our level of profitability is now about the same on both sides.

What has been your biggest professional challenge?

There were not many people doing online education in 1997, but we saw it was going to be huge. We had to fight the traditional academic community, who said, “How dare you deliver education online? Students need to be in a classroom with a professor.” The push-back was so strong that we just needed to push through it, accept the criticism, make counter-arguments and keep moving forward. Those same people who were yelling at me in 1997 are all trying to do the same thing now.

What are your goals for GCU? Ten years from now, we will have 25,000 students on our physical campuses. Online, we will have 80,000 or 90,000 students. We want to be a university that provides excellent education, but in a values-based context and environment.

4 1 0 2 t A I h D g i E r y M p G o I C ZB A

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AB | September-October 2014

13

HEAlthcare

Ladies

fight 4 1 0 The race is on to save women who face a higher risk of developing Alzheimer’s disease By ELIZABETH JOYCE

2 t A I h D g i E r y M p G o I C ZB A warning signs of Alzheimer’s

E

very 67 seconds, someone is diagnosed with Alzheimer’s disease. It is no longer considered another ailment of getting older, but rather an epidemic because of the staggering increase in Alzheimer’s diagnoses, particularly among women. Statistics show that one in eight women will be diagnosed with the disease. With Baby Boomers aging, this number is estimated to rise to one in six women, compared with one in 11 men who will be affected by the disease. Alzheimer’s robs loved ones of their memories and eventually the capacity to function. It is just as detrimental to the individual with Alzheimer’s as to the family members who are left to take care of them.

The epidemic could be just as deadly to the healthcare system.

If nothing is done before the impending influx of women who will be diagnosed with the disease in the upcoming years, “We risk bankrupting our current healthcare system,” said Jessica Langbaum, principal scientist at Banner Alzheimer’s Institute in Phoenix. “If we do nothing and maintain the status quo, we will not be able to handle the surge of patients with Alzheimer’s because we are not equipped for it now.”

10 14 AB | September-October 2014

Medical experts fear that the current healthcare system will cripple under the stress caring for the increasing number of people who will be diagnosed with Alzheimer’s. Already, the statistics show that women in their 60s are twice as likely to develop Alzheimer’s than they are to develop breast cancer.

Paying the bill

There are 78 million Baby Boomers in the U.S. Each day, about 10,000 of them turn 65, which is the at-risk age for being diagnosed with Alzheimer’s. The majority of them are women.

“We are already starting to see an increase in women with Alzheimer’s,” said Lori Whitesell, owner of SYNERGY Home Care.

This can only complicate the expenses and funds being paid

by Medicare and Medicaid, which are already expected to be responsible for a $150 billion bill this year to treat patients with Alzheimer’s and other forms of dementia. The national cost of caring for people with Alzheimer’s and other types of dementia is projected to reach $214 billion within the next two years. As of right now, each family can expect to pay about $56,800 a year for a family member with Alzheimer’s, making it the most expensive disease in the country.

1. Memory loss that disrupts daily life 2. Challenges in planning or solving problems 3. Difficulty completing a familiar task at home, work or a hobby 4. Confusion with time or place 5. Trouble understanding visual images or special relations 6. New problems with words in speaking or writing 7. Misplacing something and losing the ability to retrace their steps 8. Decreased or poor judgment 9. Withdrawal from work or social activities 10. Changes in mood and personality

NOTE: Visit alz.org for any further questions or concerns about Alzheimer’s disease.

In 2011, President Barack Obama recognized the growing concern and signed into law the National Alzheimer’s Project Act (NAPA). This project is designed to create and maintain an integrated national plan to find a cure for Alzheimer’s. The plan is to coordinate research and services across all of the federal agencies that are focusing their energy on the disease, as well as accelerate the development of treatments that would prevent, cure or slow the progression of Alzheimer’s.

“It’s a race to figure out what to do,” said Bob Roth, managing partner of Cypress HomeCare Solutions, “and, thankfully, everyone is working together.”

NAPA hopes to increase early detection and wants to be able to prevent and effectively treat the disease by 2025.

Lower your risk of Alzheimer’s 

It is important to stay mentally, socially and physically active.

 A heart healthy diet is a brain healthy diet.  If the heart is strong, it will be able to pump

larger and stronger amounts of blood to the brain with the nutrients it needs to stay healthy.

 It is recommended to do at least 30 minutes

of physical exercise daily. It doesn’t have to be anything strenuous, but the extra movement helps to keep blood flowing which encourages the brain to develop new brain cells.

4 1 0 2 t A I h D g i E r y M p G o I C ZB A

Arizona hit hard

Despite the government’s efforts, it is only a matter of time before the epidemic of Alzheimer’s hits America. Out of the 5 million people who currently suffer from Alzheimer’s, 3.2 million are women. In Arizona alone, 11 percent of the seniors have Alzheimer’s. It is the fifth-leading cause of death in the state and it is estimated that in 2014 there will be a total of 120,000 seniors with Alzheimer’s in Arizona. It has been found that more senior citizens die from Alzheimer’s than prostate and breast cancer combined. Alzheimer’s disease is the only cause of death among the Top 10 in the United States that cannot be prevented, cured or even slowed.

To compound the problem, there are currently not enough care facilities, hospitals or caregivers in the U.S. to help take care of the Baby Boomer generation, which is expected to raise the number of people with Alzheimer’s to 16 million people by 2025.

“The statistics that we have now are probably an underestimation because of the people that are trying to hide the fact that they have the disease,” said Roth, who is also on the board for the Banner Alzheimer’s Foundation.

Roth said many senior citizens are either afraid of what will happen to them or they ignore the symptoms of the disease.

Studies have shown that women tend to live longer than men and will be widowed or separated from their families for the last 10 to15 years of their lives, which severely limits the number of people who can help support them.

Hard to understand

Not only is it hard to know what will happen in the near future with our healthcare system, but the disease itself is still very misunderstood. It is known that Alzheimer’s is a progressive disease. In the beginning stages, the memory loss is mild; however, as the illness advances to the later stages, the patient loses the ability to carry on a conversation as well as the loss of motor functions.

Scientists have yet to find the real cause of this disease, but they believe that it starts in the brain cells, also known as neurons. The brain has more than 100 billion neurons that connect with each other to form a communication network.

Researchers think that Alzheimer’s is created by an amyloid plaque buildup between the neurons, which prevents the brain cells from working properly. This causes a breakdown of the brain’s communication system and the cells lose the ability to do their job. The cells eventually die and cause irreversible damage to the brain. As the neurons die, the entire brain shrinks from tissue loss. Due to the amount of brain damage, the average person with Alzheimer’s lives about eight years.

 Alzheimer’s Prevention Registry: Experts also

strongly encouraged people to join endAlznow. org, which matches individuals to current studies. It is free to participate in a number of trials. If you don’t want to be in a study, you can still sign up to receive news about the studies and findings.

Jessica Langbaum

Bob Roth

Lori Whitesell

Currently, there are 10 million women in the U.S. who have Alzheimer’s or are caring for someone with the disease. Most caregivers are unpaid and work without any support. They usually have to give up their jobs because taking care of someone with Alzheimer’s is a 24-hour-a-day job. There are two and a half times as many women providing intensive care for Alzheimer’s patients than men. Women who take on the role of full-time caregiver are strongly encouraged to use respite care so that they can get the breaks needed to be able to take care of themselves.

Looking for answers

Banner Alzheimer’s Institute is the largest Alzheimer’s research facility in the country. It is recognized as a world leader in brain imaging research. It uses advanced brain imaging techniques that help researchers detect and track any brain changes associated with Alzheimer’s before memory loss and thinking issues arise. On Feb. 7, 2012, the Obama administration announced a historic investment of $156 million to Alzheimer’s research.

“We’re so grateful for the funds that Obama gave us, but we need more,” Langbaum said. ““It’s wonderful that the government has made (Alzheimer’s research) a priority, but a lot needs to happen before we can find a cure or a treatment by the deadline they have set in 2025. Right now, we don’t have the funds to do that.”

AB | September-October 2014

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real estate

4 1 0 Housing Boomers 2 t A I h D g i E r T py M G o I C ZB A Aging population is looking to downsize, but keep their favorite amenities By MICHAEL GOSSIE

he residential real estate market is about to go “boom.”

According to AARP, for the next 18 years, Baby Boomers will be turning 65 at a rate of about 8,000 a day. That’s a lot of homeowners who may be thinking about unloading their large family homes.

“It is often misleading to generalize for a whole generation,” said Mike Orr, director of the Center for Real Estate Theory and Practice at the W. P. Carey School of Business at Arizona State University. But Orr said some Baby Boomer trends that will impact the residential real estate industry are: • Financing retirement by selling up and moving to a less expensive location.

• Downsizing from large family-oriented trophy homes to smaller low-maintenance homes.

• Continuing to work at least part time, often from home, so looking for high-speed Internet service.

• Looking for diverse cultural, educational and recreational opportunities and good restaurants.

Valley real estate leaders are prepared for the impact.

“Throughout the next decade, we will witness large numbers of Baby Boomers downsizing,” said Mike D’Elena, a Realtor at HomeSmart Elite Group. “The first wave of Boomers turned 65 in 2011. However, most who wanted to sell had negative equity and couldn’t. Since then, the Phoenix market has bounced back significantly so the wave is coming.”

Hoping to ride that wave, Valley-based Robson Resort Communities has developed a “lock and leave” product, allowing Boomers to downsize, while still enjoying the

18 AB | September-October 2014

PROVIDED PHOTO

ROBSON RESPONDS: “One of the ways that we have responded

(to the 55+ market) is by offering low-maintenance homes,” said Steve Soriano, executive vice president of Robson Communities. “We have built and launched the Villa Home Series, featuring ‘lock and leave’ living. This way of living gives residents the ability to feel less committed to their home so they aren’t tied down at a time in their life when they want to venture freely.”

amenities they crave, such as golf, tennis, swimming and social clubs and events.

“With the Boomer demographic, builders must consider what amenities they will offer, now more than ever,” said Steve Soriano, CFO of Robson Communities. “Buyers are looking for added value to maintain an active and social lifestyle.”

One of the fastest-growing trends, the lock and leave concept allows residents to walk away and know their home is safe within a gated community and the grounds will be maintained while they’re gone.

“The lock and leave product appeals to Baby Boomers that seek a seasonal home without a lot of upkeep,” Soriano said.

“The single-story, attached townhomes in the Villa Home Series showcase an open floor plan with landscaping and exterior maintenance covered by the Villas’ homeowner association. These homes give our residents more time to enjoy the weather, luxuries and the numerous activities that they come to enjoy in Arizona.”

Mike D’Elena

Mike Orr

Steve Soriano

AZ BIG MEDIA CARES

10,000

REASONS 4 1 0 2 t A I h D g i E r y M p G o I C ZB A to participate in Az Business Magazine’s “Corporate Angels”

For the 5th consecutive year, Az Business Magazine is featuring its salute to nonprofits and charitable organizations with Corporate Angels.

This year, we are growing Corporate Angels into a two-part series — the first in the November/ December 2014 issue and the second in the May/ June 2015 issue.

In addition, we are adding an additional element called AZ Big Media Cares, which will give you 10,000 reasons to participate.

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Cheryl Green

Publisher

For more information, contact AZ BIG Media at 602.277.6045 | 3101 N Central Ave., Ste 1070 • Phoenix, AZ 85012 | azBIGmedia.com

TRENDSETTERS

HEALTHCARE /// ENERGY /// AEROSPACE /// TECHNOLOGY

?

What’s wrong with

your workout

4 1 0 2 t A I h D g i E r y S op IGM C ZB A

When the rubber hits the road

cottsdale-based Performance 3D has created 3D SMART Garment technology, which not only tells users how many calories they burn and how many miles they ran, but can tell them what they are doing wrong and how they can achieve their fitness goals or make the most out of your workout. The patentpending technology offers both positive and negative feedback through sensors in the clothing. Feedback is given during and after a workout so the user can immediately address any problems. The sensors in the clothing detect immediate threats to the body that cannot be seen by the naked eye, enabling users to correct themselves, all while helping prevent potential injuries during the workout. To learn more, visit 3dsmartgarments.com.

To celebrate Earth Day in April, Casa Grandebased tech company PanAridus, which has been innovating the natural rubber producing plant guayule (Y-U-LEE), submitted eight new patents for different types of unique variations of the plant.

The patents are a big step for Arizona and the entire world, said PanAridus CEO Mike Fraley.

Rubber is 100 percent imported into the U.S. and is the second largest import next to oil, but guayule will change that because the plant produces a natural rubber.

“In the past, (guayule) had low yield of rubber per acre,” Fraley said. “Now we’re getting enough yield to make a profit.”

Since guayule needs low inputs of water, nutrients and pesticides and thrives in arid climates, it’s a perfect crop for Arizona and companies like PanAridus and Valley-based Yulex are looking to capitalize. Besides producing natural rubber, other components of guayule can be used as biomass to create energy.

Yulex, which launched the first guayule-based wetsuit with Patagonia in 2013, and Arizona State University were awarded a $6.9 million grant from the USDA and the U.S. Department of Energy to develop manufacturing processes for the production of Guayule BioRubber as a biomaterial for tire applications, as well as to evaluate the plant’s residual biomass for biofuel applications.

Arizona's first solar winery Page Springs Cellars has partnered with Harmon Solar to install more than 375 solar panels at its vineyard and winery in northern Arizona, which will generate more than 85 percent of the winery’s energy. It makes Page Springs the first winery in Arizona to implement solar technology.

The partnership is the result of a long-time relationship between Page Springs Cellars owner Eric Glomski and Wine Club members Dan King. King, who is the co-owner of Harmon Solar, approached 20 AB | July-August 2014

Glomski in 2013 with the idea. In keeping with the winery’s core values of supporting local companies and a healthy environment, Glomski was immediately interested.

“At Page Springs, we believe it is our job to practice sustainability as much as we can” Glomski said. “From maintaining healthy soils and vineyards to providing a healthy ecological habitat for wildlife – it’s part of what we do. The move to renewable energy was the next step.”

Wanted: 4 1 F 0 2 t A I h D g i E r y M p G o I C ZB A

A tech savvy workforce for Arizona prosperity

or Arizona to achieve sustained economic growth, it’s essential that we attract, create and support businesses engaged in science, technology, engineering and math (STEM) fields. There’s no doubt that industries focused in these areas continuously generate the innovations that make our world better.

A recent report by the Brookings Institute titled “The Importance of The Science and Engineering Workforce for Future Growth,” reminds us once again that STEMrelated jobs pay a higher mean annual wage. In 2013, the median annual wage for all scientists and engineers was $87,330 and the median income for all other occupations was $45,790.

To build this type of workforce, we need an ecosystem that produces homegrown talent and keeps that talent in state. The findings of the 2009 Arizona Technology Council’s Workforce Study that assessed the issues, opportunities and competitive pressures that Arizona’s technology employers and employees face are still valid. Among the many findings was that education matters. If you want a technology job in Arizona, a four-year degree is really valuable.

To increase the size of our STEM-educated pipeline, we first need to maintain enthusiasm for science and technology throughout a young person’s educational journey. The Arizona Technology Council Foundation hosts two STEM initiatives designed to do just that - the annual Arizona SciTech Festival and the Middle School Science Bowl. The Council also hosted the Arizona Science & Engineering Fair (AzSEF) competition for four years until recently transferring it over to the Arizona Science Center. All of these examples support and provide guidance to students, teachers and the public at large on science and technology fields. These celebrations encourage hands-on activities, stunning exhibitions and spur conversations and debates that build excitement among students.

Secondly, we need to continue to work with Arizona policy makers to drive a pro-growth, business and education-focused agenda. Among its numerous public policy efforts this year, the Council vigorously supported Arizona House Bill 2265, signed into law by Gov. Jan Brewer on April 22. The law allows the State

Board of Education, school district governing boards, and charter school governing bodies to approve a rigorous computer science course that will satisfy a mathematics requirement.

This legislation will prove essential to preparing Arizona’s next generation for work in technology fields that increasingly rely on programming skills.

Steven G. Zylstra, There are many other Technology innovative solutions for creating a STEM-skilled workforce that have the opportunity to make a game-changing impact. For the last two years, the Council has been working with three former Sun Devil football players alongside other Arizona institutions and agencies and higher education leaders to solve the state’s pressing IT resource shortage issues. A prototype Digital Desert Resourcing model designed to keep jobs that are currently going overseas to be instead filled by Arizona’s more than one million undergraduate students, veterans, and many underemployed or misplaced talents is currently being tested with great success. The scalable program quickly incubates and trains talent and IT resources from within the state, and provides thousands of technical jobs for Arizonans.

The Arizona economy is currently less STEMintensive than some competing states; enhancing our presence in these industries will increase future economic health. In the decades to come, it is crucial that young Arizonans continue to pursue STEM-related degrees and careers. Both traditional and emerging industries rely on workers in STEM occupations, and a steady supply will help ensure future success.

Steven G. Zylstra is president and CEO of the Arizona Technology Council.

21 AB | July-August 2014

LAW

Draft dodgers

4 1 0 2 t A I h W rig ED y M p G o I C ZB A Before you toast your fantasy football league team, you should probably know that you might be committing a crime

By MERYL FISHLER

ith football season here, fantasy leagues will score big with sports fans. What may throw many Arizonans for a loss is that their favorite pastime can also be a crime.

The multi-billion dollar fantasy sports industry is illegal in Arizona, creating potential legal risks and gray areas for fantasy sport enthusiasts.

Since fantasy sports hit the scene, it has exploded in popularity and the professional sports leagues love it because of the marketing and exposure it generates for the leagues. In 2006, the federal government passed the Unlawful Internet Gambling Act. However, Congress made a specific exemption for fantasy sports, based on the belief that fantasy sports are rooted in skill and outcomes are based primarily on statistical results of the athletes. However, the industry is regulated on the state level.

“Arizona is a unique minority in the nation when it comes to fantasy sports,” according to Jonathan Hasebe, an attorney at Gallagher & Kennedy.

Hasebe said Arizona state law differs with federal law, stating that fantasy sports are based on chance, not skill. This makes fantasy leagues that involve any kind of reward illegal.

Whether a specific fantasy league is legal in Arizona depends on where the league originates and the operating procedures of the league. Three ways exist for the league to be legal: » The league does not play for money. » If everyone participating is over the age of 21 and no entity outside of the contest benefits financially. » If the league is conducted out of a regulated gambling establishment, like a tribal compact casino.

However, Arizonans cannot participate in nationwide fantasy sports leagues that involve reward because of the Arizona Gambling Law that states, “No other person, other

22 AB | July-August 2014

than the player or players, derives a profit from the money paid to gamble.” Contests that have an administrative fee disqualifies the league as an “amusement” or “social” gambling even. These contests include popular leagues run by ESPN and CBS. Last year, State Sen. Adam Driggs attempted to change the standing law with Senate Bill 1468. The bill intended to set fantasy sports apart from gambling and outline the specifics for what is considered a fantasy sport under state law. The Arizona Indian Gaming Association came out against the bill, which would have legalized and regulated fantasy sports gaming. The bill failed to reach the senate floor.

“Personally, I have never heard of the law being enforced,” Hasebe said.

But, Arizonans who participate are committing a misdemeanor. And under Arizona Chapter 33 of Title 13, which states, “benefiting from a game of chance” is prohibited, commissioners of leagues are committing a Class 5 felony.

The Fantasy Sports Trade Association reported that in 2013 there were more than 33.5 million people playing fantasy sports in the United States alone. It is not only illegal for Arizonans to partake in this national trend, Arizona is also missing out on the business and money-making opportunities that come along with the industry, according to Hasebe.

Adam Driggs

Jonathan Hasebe

4 1 0 2 t A I h D g i E r y M p G o I C ZB A 23 AB | July-August 2014

LAW

Up in

Increasing use of electronic cigarettes forces many companies to revisit their workplace policies By MERYL FISHLER

4 1 0 2 t A I h D g i E r y M p G o I C ZB A

i

n 2006, Arizonans made their voices heard by passing the Smoke-Free Act, which prohibits smoking tobacco products in places of employment, but where do electronic cigarettes and “vaping” — the act of inhaling water vapor through a personal vaporizer or electronic cigarette — fit into the equation?

In the past eight years e-cigarettes have become nearly an $8 billion industry. As vaping increases, so do the conversations about workplace policy. Many companies have adopted a vaping policy that echoes language in Arizona’s Smoke-Free Act. However, it is potentially problematic because the Smoke-Free Act prohibits the use of lighted tobacco products and the statute does not address electronic cigarettes. The American Lung Association has expressed concerns about e-cigarettes after a 2009 Food and Drug Administration study found they released toxic cancer-causing chemicals. However, the FDA has yet to release rules on the e-cigarettes. With no firm federal and state guidelines, companies are in limbo in terms of workplace policies regarding vaping.

John Egbert, a labor and employment attorney with Jennings, Strouss & Salmon, said the question is whether vaping legally fits into the already established law. Even though the federal government is still working on its policy, the situation is still fluid and employers need to decide how to handle the increase in the number of e-cigarette users before legal complication arise.

“Employers should consider revising their existing smoking polices to address the new issues associated with e-cigarettes in the workplace,” said Pavneet Singh Uppal, regional managing partner at Fisher & Phillips.

It benefits the employer to take a position while the government figures it out, experts said. When revising a smoking policy, companies need to address whether e-cigarettes are allowed in the workplace, in separate areas, in certain social situations, and the grievance process or ramifications when the rules are broken and infringed upon.

“Because the exact effects of e-cigarettes are still

unknown, it is best to err on the side of caution and designate a specific area where e-cigarettes are allowed, but is separate from traditional smoking areas,” Uppal said.

Many of the possible negatives of vaping are widely known — like air quality concerns and concerns about the amount of pollutants in the vapor. “But even though we all know that smoking is bad for you, employers should take time to understand how e-cigarettes work and that they may have some benefits,” Uppal said.

Gregory Conley, an attorney and president of the American Vaping Association, a nonprofit organization established primarily for the purpose of positive media advocacy regarding vaping and e-cigarettes, believes “permitting vaping in the workplace, or even just setting up areas in the office where vaping is permitted, can foster a healthier workplace by providing great incentive for smokers to quit.”

Advocates to fostering a work environment that permits vaping believe productivity could increase among vapers. Smokers often spend time not working on a “smoke break,” while vapers could be allowed to remain at their desk. Due to the lack of smoke, e-cigarettes have been marketed as a healthier alternative to traditional cigarettes. Additionally, a vaping office could serve as a more congenial atmosphere because e-cigarettes do not have a distinctive odor that is unpleasant to non-smokers.

“If vaping is better than smoking, getting smoking employees to vape is a step in the right direction,” Egbert said.

John Egbert

24 AB | September-October 2014

Pavneet Singh Uppal

It’s Time To Celebrate

4 1 0 2 t A Connect I h D g i E r and y M p G Invest o I C ZB A Arizona Bioscience Week AZBio Awards on 9/17 White Hat Life Science Investors on 9/18

AZBio.org/ABW2014 25 AB | July-August 2014

Credit unions

Regulation

overload 4 1 0 2 t A I h D g i E r y M p JCo BIG Z A Credit union officials seek relief from red tape that has come with financial reform By MICHAEL GOSSIE

uly marked the four-year anniversary of the DoddFrank Wall Street Reform and Consumer Protection Act, which was meant to reform and stabilize our financial system.

So, has it?

“Since the implementation of the Dodd-Frank Act and establishment of Consumer Financial Protection Bureau (CFPB), more than 800 credit unions have closed their doors,” said Dan Berger, president and CEO of the National Association of Federal Credit Unions (NAFCU). “Compliance costs have taken a serious toll on credit unions that do not have the resources that big banks do — and the regulations keep coming.”

According to Mark Robey, senior vice president of regulatory affairs for the Mountain West Credit Union Association, credit unions in Arizona want to work with consumers and small businesses to provide affordable credit and attractive savings to help stabilize the economy.

“But the mortgage requirements under the Dodd-Frank Act and the rules issued by the (CFPB) make it more costly for creditors to make loans,” Robey said. “Moreover, the ‘Ability to Repay Rule’ required by Dodd-Frank and issued by the CFPB encourages creditors to make mortgage loans only to borrowers with a debt-to-income ratio of no higher than 43 percent. That can cut borrowers out of a home purchase if they don’t meet that threshold, even if the borrower can actually afford to repay the loan.”

26 AB | September-October 2014

Since its enactment, the 849-page Dodd-Frank Act has imposed $21.8 billion in compliance costs while producing regulations that require nearly 60 million hours of paperwork with which to comply, according to estimates by the American Action Forum. These compliance costs can be devastating to small community banks and credit unions.

“In order to help credit unions avoid being susceptible to penalties and compliance violations, it will be necessary to add additional staff, training, hardware, software etc.,” said Robert D. Ramirez, president and CEO of Vantage West Credit Union.

“All of that further impacts the bottom line. This could hit smaller credit unions particularly hard or possibly force them to limit or exclude mortgage options.”

To help ease the regulatory burden on credit unions, the NAFCU has issued its “Five-Point Plan for Regulatory Relief,” which includes administrative improvements to the National Credit Union Administration (NCUA), capital reforms, structural improvements, operational improvements and data security reforms. To see NAFCU’s complete Five-Point Plan, visit nafcu.org.

Ramirez stressed that while financial institutions should have learned lessons from the financial crisis, consumers should take responsibility, too.

“The (Dodd-Frank Wall Street Reform and Consumer Protection Act) calls for a provision to create an Office of Financial Education,” Ramirez said. “However, the regulation does not do enough to require or even encourage consumers to share the burden of responsibility of gaining full understanding of the loan requirements prior to entering into the loan agreement. It would be helpful if there were a reduction in the number of regulations that impact our ability to serve our membership, and instead did more to encourage members to be proactive in taking advantage of financial literacy opportunities to ensure they were fully informed about the risks and benefits of entering into a loan agreement.”

Now that even lawmakers from President Barack Obama’s own party see the financial reform legislation as a destabilizing force, credit union officials say it’s time to reexamine Dodd-Frank.

“Lawmakers and regulators agree that credit unions were not responsible for the financial crisis,” Berger said. “It’s time to say ‘enough is enough’ and end the rampant overregulation of credit unions.”

Dan Berger

Robert D. Ramirez

Mark Robey

4 1 0 2 t A I h D g i E r y M p G o I C ZB umb.com/cool A STOCK MARKET CHALLENGE

Are you up for the challenge? Visit: JAAZ.org/StockMarketChallenge umb.com | 480.315.6800

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AB | September-October 2014

27

MARKETING

The

gamification

of marketing

4 1 F 0 2 t A I h D g i E r y M p G o I C ZB A

By MERYL FISHLER

or centuries, games have been a paramount element of society. Now, marketers have found a way to harness the power of games to change the way businesses engage with customers.

Gamification is the application of game intelligence and mechanics in non-game contexts to engage users.

Hoping to capitalize on the more than 183 million active gamers in the U.S., two Valley business owners are utilizing gamification to create a marketing niche.

Fiero Agency, founded this year by Todd Young and Jason Edwards, specializes in gamified marketing. They create unique interactive marketing campaigns that motivate consumers to be engaged. Gamified marketing includes mechanics such as points, badges and leaderboards.

Young believes gamification’s effectiveness is rooted in psychology.

“People seek out games for the same reason they seek out coffee: to feel different after,” he said. “It’s a place to get your fix.”

According to Young, feelings necessary to human condition can be supplied by games: socialization, purpose and achievement. Gamification allows people to be marketed to without necessarily realizing it because the game provides entertainment.

It seems to be working because gamification is becoming a more mainstream marketing tool. Gartner Inc., an information and technology research and advisory firm, predicts more than 70 percent of Global 2000 organizations will have at least one “gamified” application in 2014.

Young and Edwards attribute the trend to the popularity of video games.

A gamified marketing strategy is comprised of three key elements: personalization, rewards and pride. Games allow users to choose what they want and provide the opportunity to win rewards. Additionally, users have pride in their success by sharing their achievements on social media. A gamified marketing strategy unifies these three elements to guide the user to have enthusiasm to purchase.

Fiero’s creative process is solution based. First, Young and Edwards define success for their campaign. Each campaign has

28 AB | September-October 2014

its own characteristics of success. Success could be defined by getting more customers, expanding market share or increasing consumption of a product. Once success is defined, a solution or game is made.

Fiero’s creative process is a hybrid between the traditional “white board” marketing strategy and the gaming tactical approach. According to Young, the game strategy is about how to make it more interesting every time. “(The game needs to) legitimately create a compulsion or a new habit,” Young said.

The implementation of the proper elements of a game for the appropriate demographic or product is also key. Not every game component pertains to every campaign. Games geared toward a younger demographic might include more of a story line, while games for older demographics may include scaled down visual and audio. Game mechanics need to correlate with the product being marketed.

Fiero’s gamified marketing is not exclusively digital. Fiero applies traditional marketing strategies to game design, branding, content creation and animation. Then, cross platforms are used for campaigns to apply the game intelligence to a variety of mediums. The mediums include web development, applications for smart phones and tablets and video production.

The formula is working. Even though Fiero is a relatively new agency, created successful gamification campaigns for clients including Coca-Cola, TimeWarner and Microsoft.

Jason Edwards

TODD YOUNG

4 1 0 2 t A I h D g i E r y M p G o I C ZB A AB | September-October 2014

29

Tourism

4 1 0 2 t A I h D g i E r I y M p G o I C ZB A

Free fun Families enjoy special deals in October at San Diego hotels, attractions, restaurants By MICHAEL GOSSIE

s there any better fun than free fun?

During the entire month of October, more than 110 San Diego hotels, restaurants, attractions, museums and transportation companies offer families with children special deals so they can enjoy San Diego without emptying their wallets. “Kids Free San Diego” provides families an opportunity to save during budgetconscious times with a variety of “kids free” incentives, ranging from complimentary attraction admission, meals and Amtrak rides to welcome amenities at area hotels and much more.

In October, after the summer beach crowds diminish, visitors to San Diego can relish in the region’s sunny weather and warm temperatures and enjoy a number of fun-filled fall activities for the whole family. Home to the world-famous San Diego Zoo, San Diego Zoo Safari Park, SeaWorld San Diego, LEGOLAND California Resort and Belmont Park, San Diego is offering substantial savings this October with free kids’ admission to local attractions.

Here are a few highlights of Kids Free San Diego month. ✳ Amtrak is offering one child, ages 2 to 12, a free ride with one paid adult rail fare aboard the Pacific Surfliner route, servicing San Luis Obispo to San Diego. Stops en route include the Santa Ynez Valley, Carpinteria, Ventura, Oxnard, Van Nuys, Burbank, Glendale, Los Angeles, Anaheim, Orange, Santa Ana, Irvine, San Juan Capistrano, San Clemente and more. ✳ All kids, ages 10 and younger, are admitted free into the San Diego Zoo, home to 3,700 rare and endangered birds, mammals and reptiles, and the 1,800-acre San Diego

30 AB | September-October 2014

Zoo Safari Park, which is now home to the Tull Family Tiger Trail, featuring a new forested habitat for the Safari Park’s Sumatran tigers with up-close views of the critically endangered species. ✳ SeaWorld San Diego wants families to join in the celebration of its 50th anniversary by offering one child, ages 3 to 9, free admission with one full-paid adult admission. The same offer is valid at Dine with Shamu, and kids, ages 10 to 13, can participate for free in SeaWorld’s Dolphin Encounter and Dolphin and Beluga Interaction Programs with one paid adult participation. ✳ LEGOLAND California Resort, featuring 128 acres of LEGO-themed fun and more than 50 interactive attractions, and SEA LIFE™ Carlsbad Aquarium, with 36,000 square feet of play zones and marine exhibits, including the new Jellyfish Discovery, are offering a free one-day Child Hopper Ticket for one kid, ages 12 and under, with purchase of a full-price one-day Adult Hopper Ticket. ✳ Kids can eat free at a number of family-friendly properties, including the luxurious Manchester Grand Hyatt San Diego along San Diego Bay, The Westin San Diego in the historic Gaslamp Quarter and the Hyatt Regency Mission Bay Spa and Marina located near SeaWorld San Diego.

A complete listing of “Kids Free San Diego” month participants and their special offers are available at SanDiego. org/KidsFree. All offers are valid Oct. 1 to 31.

Where the magic of the sea comes to life.

4 1 0 2 t A I h D g i E r y M p G o I C ZB A

STORE LISTING (partial) Alamo Flags American Nostalgia Bay Company Ben & Jerry’s Ice Cream Buster’s Beach House & Longboard Bar California Candle Gallery California Original Sunglasses Crazy Shirts Del Sol Edgewater Grill

Exclusive Collections Frost Me Gourmet Cupcakes Harbor House Greek Islands Cafe

Hot Licks Magnuts Marion’s Fish Market San Pasqual Winery & Tasting Room Seaport Grill Silver Crossing Tamara G Tervis

Tinsmith Upstart Crow Bookstore

849 W. Harbor Drive | San Diego, CA 92101 | 619-235-4014 | seaportvillage.com AB | September-October 2014

31

Dining

4 Slice of heaven 1 0 2 t A I h P D g i E r y M p G o I C ZB A Grimaldi’s Coal Brick-Oven Pizzeria is in a delicious league by itself

By MICHAEL GOSSIE

lease don’t ever tell my mother this, but the thing I missed the most when I moved from New York to Arizona was the pizza.

I missed the moments of cheesy deliciousness when I would finish a workout, grab a slice, fold it in half and walk down the street with orange grease dribbling through the crack of the crust, down my forearm and off my elbow. To me, that was home and every bit as comforting as a grandmother’s hug. I missed that when I moved to Arizona.

Thankfully, I discovered Grimaldi’s.

With more that 100 years of coal fired brick-oven pizzamaking traditions, the creators of Grimaldi’s have taken generations to perfect a very distinctive and truly authentic pizza. And they have nailed it. The crust is thin, but not too thin, crunchy and always cooked perfectly. The red sauce is a perfect complement to any topping. Grimaldi’s handmade mozzarella exceeds the cheesy deliciousness of the pizza I grew up eating.

By now, I’ve been to Grimaldi’s many times and this is what I would recommend: • Build your own pizza by choosing the size, sauce and your favorite toppings. One warning: Grimaldi’s defines the words “personal” and “small” unlike any other restaurant.

The small pizza would be considered a large at any pizza chain. The same is true if you opt for the calzone. A personal calzone at 12 inches is enough for two people to share and possibly take some home for the next day.

• As for toppings, some personal favorites of mine are the roasted red bell peppers, which are cooked fresh daily and the vibrant taste complements any other topping you choose, and meatballs, which are sliced thin, cooked perfectly and have an authentic Italian flavor that reminded me of my Italian grandmother’s homemade meatballs.

32 AB | September-October 2014

• My taste buds were treated to Grimaldi’s Diavolo Pizza, a

restaurant specialty that is topped with soppressata salami, cherry peppers and kalamata olives, and had the perfect amount of kick.

• If you opt for a calzone, don’t expect the chewy calzones that are common in the typical Arizona pizza joint. Grimaldi’s brick ovens give the calzones a crisp, thin texture and every variety of calzone I’ve tried at Grimaldi’s has been excellent.

• If you want something light, I cannot stress enough that Grimaldi’s makes its own mozzarella, so you will never go wrong with the mouthwatering Caprese Salad.

• If it’s possible that you have room left for dessert, Grimaldi’s cheesecakes are made in-house daily. Grimaldi’s seasonal cheesecakes for fall are the Caramel Apple Cheesecake, a rich caramel and green apple delight topped with caramel syrup and whipped cream. And for the chocolate lovers, Grimaldi’s is bringing out its Chocolate Cheesecake, a decadent dessert served with chocolate syrup and topped with whipped cream. But for me, the perfectly creamy Blueberry Cheesecake comes with my highest recommendation.

Here is what makes eating pizza in Arizona better than eating pizza in New York: We can eat our favorite Grimaldi’s pizza while we soak up the beautiful Arizona fall weather because each of Grimaldi’s seven Arizona locations has a distinct patio.

Now, that’s as comforting as a hug from grandma.

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4 1 0 2 t A I h D g i E r y M p G o I C ZB A

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An SBA loan can help you: • Purchase commercial real estate • Acquire a business • Expand your business • Buy equipment • Build inventory

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AB | September-October 2014

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3:33 P

Education

4 1 0 the next 2 t A I h generation?

D g i E r y M p G o I C ZB A How ready is

Experts say quality education equals quality jobs for Arizona By ERIC JAY TOLL

34 AB | September-October 2014

T

he formula is simple: W = $. A wellqualified, educated workforce equals high-paying, deeply entrenched Arizona jobs and statewide economic growth.

4 1 0 2 t A I h D g i E r y M p G o I C ZB A “There are too many buzzwords and not enough solutions,” muses Rick Heumann, Chandler’s vice-mayor and a passionate education advocate. “If we don’t do something now, we’re going to lose an entire generation. The legislature cannot continue to starve schools and colleges and expect the economy to grow. Incentives will not overcome lack of a qualified workforce.”

Heumann, and other business leaders also say that the solutions are more than just funding. It’s a challenge through the whole system to create opportunities and relevance for today’s students to become tomorrow’s well-qualified workforce.

“Arizona education has to produce the talent needed to find a job and fill the gaps in the workplace,” says Steven Zylstra, president and CEO of the Arizona Technology Council. “We need to create more robust opportunities to inform students about career opportunities and the need for education.”

The Arizona business community is finding opportunities trying, step-by-step, to bring change to the state’s education system. This is a marked contrast from political attacks on Common Core that one business leader confided are demonstrations that the legislature just doesn’t understand education or economic development.”

“There’s too much rote and not enough reason,” sighs Joan Koerber-Walker, president and CEO of the Arizona Bioindustry Association, Inc. “America is a world power because we know how to think. We’re losing our edge. Not only does STEM (science, technology, engineering and mathematics) need to be at the core of what’s being taught, students must see relevancy to real life and learn to be creative and critical thinkers. It amounts to a needed change in the way we teach.”

AB | September-October 2014

35

Education Student retention through high school “Ensuring that all our students are graduating from high school is simply the biggest priority,” sums Cathleen Barton, Arizona education manager for Intel. “We need students to graduate and be career- or college-ready,” she adds.

Study after study shows that students need education to get ahead. Barry Broome, CEO of Greater Phoenix Economic Council, says that education is part of good economic development. “Improving education is a long-term investment for Arizona. Right now, only a small percentage of high schools generate half our college enrollment. That needs to change,” he says.

“We’re losing students at an unacceptable rate,” worries Bob Enderle, director of community relations at Medtronic.

“About a quarter of our students don’t graduate high school, and that rate is higher in ethnically diverse populations.”

“Making education connect and making it more relevant will help keep students in school,” echoes Dave Cano, the company’s senior manager for continuous improvement and a member of Grand Canyon University’s STEM External Advisory Board. “When students don’t graduate, they earn less, they spend less and they add more costs to the system.”

Heumann adds that workers in minimum wage jobs do not earn enough to cover the costs of their services. “We need to help our students qualify for better jobs and then we need to make sure we have the jobs in the market,” he says.

“With a high-paying job, a worker adds more value to the Arizona economy.”

Cathleen Barton

Barry Broome

Dave Cano

4 1 0 2 t A I h D g i E r y M p G o I C ZB A 35

Better education means a better economy Eve Ross, W.L. Gore & Associates, Inc.’s director of public policy and strategic initiatives, talks about the vicious cycle.

“Students are not getting a connection between what’s being learned and how it applies to careers,” she says. “There are many well-paying careers that require some college, but not necessarily a four-year or graduate degree. We need

a whole class of student understanding and interested in manufacturing. We’re not talking about a worker tightening bolts on a parade of black Fords. We’re talking about workers who can see how things are made and come up with ideas to make it better.”

“It’s a simple formula for economic growth. If we can’t attract well-paying careers, Arizona is not going to collect tax revenue for basic services,” she says. “We need a workforce who can read and understand a workplace — students who can do the math and innovate.”

Arizona does education well, but in pockets, says KoerberWalker. “Schools are short on resources and there are many gaps creating ‘haves’ and ‘have-nots.’ We’re at the bottom of the barrel in too many ways with education. Business will not come if kids are not prepared for the jobs.”

The investment in education for tomorrow’s economy comes at a crucial time. Arizona has invested millions of dollars to ready the education system for Common Core standards.

“Common Core came out of the business sector,” explains Broome. “Industry needs a uniform standard by which it can compare education achievement to the same standards in every state. This is going to create some concern in Arizona when the results start coming in.”

Building passion for learning

Hal Halladay is the chief people officer for Infusionsoft. “The world is rapidly changing. Tomorrow’s workforce needs to be 36 AB | September-October 2014

Bob Enderle

Hal Halladay

Rick Heumann

Joan KoerberWalker

Eve Ross

SteveN Zylstra

Not making the grade

Personal finance social network WalletHub conducted an indepth analysis of 2014’s states with the best and worst school systems. WalletHub used 12 key metrics, including dropout rates, test scores and bullying incident rates to assess the quality of education in each state. According to the analysis, Arizona has the 9th worst school system. Here is where Arizona schools rank in individual categories (1=best):

th

8

– Dropout rate

Champlain University High School th – Financial Literacy Grade

36th– Math test score

46th – Reading test score

49

th

– Student-to-teacher ratio

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Education able to adapt to a rapidly changing world,” says Hal. “The system needs to focus on training and teaching students to love learning.

Education does not end at graduation. Students must be able to continue to learn in order to be able to handle global change.”

Medtronic has jumped into the partnering role with education. It’s been incredibly rewarding and equally frustrating. “We tried to bring students to demonstrate relevancy between what they’re learning and career opportunities, but the process was filled with road blocks,” says Ederle. “We ended up bringing in teachers as interns. One of the science instructors going through the program said it would change the way he taught physics. That’s a success as we see it.”

Connecting science and technology to something students understand is the key of generating a passion for education.

Zylstra talks about the Arizona SciTech Festival, “We had a physics professor talk about the science of baseball. All of the sudden, the kids were seeing how math and physics are in the world relevant to their interests. It’s this type of change we need in education to connect students to learning.”

“We have a mismatch between skills and opportunity,” Barton emphasizes. “Jobs are changing too fast, and education is not changing rapidly enough to keep up. We need to take schools to the next level of teaching.”

Koerber-Walker is concerned that there has been so much focus on what needed to be learned to pass the standardized tests, students weren’t given an opportunity to understand how to use the learning.

“There needs to be improvement in outcomes,” she explains. “Students are lacking in soft skills. They need to learn critical thinking, problem solving and an ability to write and communicate.”

“We’re getting good workers coming out of college,” comments Halladay. “The problem is that while the students have the technical skills, they are not getting training on how to function in a face-to-face environment. They need an ability to adapt to changes and creatively solve challenges.”

participants in their child’s education. It requires business to partner with schools.”

Enderle and Cano, at Medtronic, agree.

Heumann doesn’t mince words. “We’re not competing with Alabama, Louisiana and Mississippi for jobs. We’re competing with Texas, California, Washington and New York.

Our education investment needs to be at their levels, not the bottom of the heap.”

“We need to re-fund education. The way education is funded does not reflect the needs of business in Arizona,” suggests Koerber-Walker. “Teachers are spending major portions of their own incomes supplying classrooms. That has to stop. We need to invest some dollars to provide schools with the tools to teach the workers we want to offer new business.”

“We have a lot of thoughtful people involved in the process of bettering our schools and workforce. In business, we know that if you don’t invest in training, you start losing ground to competition,” says Barton. She is listing off the solutions she’d like to see for schools. “We want teachers to have the resources to make the curriculum relevant to keep students engaged.”

“Charter schools need to have the same public accountability as public schools,” insists Heumann. “If we have a wellbalanced education with pay encouraging bright and effective teachers into the profession, we’re going to do a lot better with students coming out.”

Halladay sums up what a good education system means: “When I try to recruit top-level knowledgeable workers for my company, the quality of schools is a big reason they will accept or walk away from the job offer. The inconsistency of education quality across the Valley is a major recruiting challenge.”

Heumann sighs. “We can spend millions on cutting taxes and offering incentives,” he says. “If we don’t have good workers, we’re not going to get good companies locating here.

It’s simple economics.”

A well-educated workforce equals strong economic development.

4 1 0 2 t A I h D g i E r y M p G o I C A well-educated B workforce Z A equals strong economic

Partnership part of a solid solution

“This is not going to be resolved by just giving schools more money,” Zylstra says. “It starts with motivating parents to be

development.

38 AB | September-October 2014

4 1 0 2 t A I h D g i E r y M p G o I C ZB A AB | September-October 2014

39

4 1 0 2 t A I h D g i E r y M p G o I C ZB A 40 AB | September-October 2014

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855-428-9164 | gcu.edu/azbusiness Grand Canyon University is regionally accredited by the Higher Learning Commission of the North Central Association of Colleges and Schools. (800-621-7440; http://www.ncahlc.org/) For more information about our graduation rates, the median debt of students who completed the program, and other important information, please visit our website at gcu.edu/disclosures.

Please note, not all GCU programs are available in all states and in all learning modalities. Program availability is contingent on student enrollment.14COBE027 AB | September-October 2014

41

Education

4 1 0 2 Solving Arizona’s shortage t A I h of healthcare IT workers D g i E r H py M G o I C ZB A

ealth Information Management (HIM) is often cited as one of this decade’s “hot jobs” and journalists love to single it out as a growth area everyone should consider.

It’s easy to see why they pick out the profession. A recent study published in the journal Industrial Relations found that health IT job postings, a key indicator of demand, have tripled as a share of the broader healthcare job postings since 2007.

Health organizations are increasingly relying on information professionals to manage big data – meaning that HIM professionals are in demand.

According to the Greater Phoenix Economic Council, Arizona created almost 20,000 jobs in healthcare between 2007 and 2010. Phoenix is 14th in the nation for healthcare jobs. The healthcare industry in Phoenix is booming and needs top-level education programs to train qualified professionals to continue this growth.

But there’s a problem – an immense void of qualified professionals in the industry.

The demand for highly trained professionals is currently Ryan Sandefer, outweighing the pool of available Technology

42 AB | September-October 2014

talent. The latest Workforce Survey from the Healthcare Information and Management Systems Society found that half of the healthcare organizations surveyed placed an IT initiative on hold due to a shortage of qualified staff.

For people who are looking to take advantage of the boom, innovative options such as the Communiversity @ Surprise can offer a pathway to joining Phoenix’s growing healthcare industry.

The College of St. Scholastica, a national leader in health information management that opened its doors at the Communiversity this spring, offers personalized health information management bachelor’s and master’s programs, as well as a master’s in health informatics. Phoenix College also offers a health information technology associate’s degree.

The Phoenix healthcare industry needs programs such as these to support continued growth. Health information management is the bedrock of health networks, hospitals and health practices, and without these programs Arizona’s healthcare industry will be left behind.

Ryan Sandefer is chair of the Health Informatics and Information Management department at The College of St. Scholastica at Communiversity @ Surprise.

C

M

Y

CM

MY

CY

CMY

K

4 1 0 2 t A I h D g i E r y M p G o I C ZB A AB | September-October 2014

43

Education It’s easy to assume that all jobs in the future will require working with new technology and complex computer systems. And though this is true for some, it’s definitely not the case for all growing career fields. Which occupations should you focus on throughout your college education?

Jobs of the Future

4 1 0 2 t A I h D g i E r y M p + G o I C ZB A FASTEST GROWING INDUSTRIES between 2012 and 2022

+1,622.1%

Construction

1,225.80%

Offices of health practitioners

781.7%

760.7%

715.7%

Employment services

Nursing and residential care facilities

Home healthcare services

DECLINING INDUSTRIES between 2012 and 2022

Textile mills and textile product mills

Miscellaneous manufacturing

Apparel manufacturing

Newspaper, periodical, book, and directory publishers

57.3%

85.8%

105%

51.5% 44 AB | September-October 2014

Postal service

-169.1%

These five jobs did not exist a decade ago.

Proof that the futre will hold careers that we have yet to imagine.

»

Average salary

App developer

+

+ 53%

Industrial-organization psychologist

» $83,580

49%

Personal care aides

49%

Home health aides

47%

Mechanical insulation workers

46%

Interpreters and translators

46%

Diagnostic medical sonographers

43%

Brickmason assistant

43%

Occupational therapy assistants

» $19,910

» $20,820 » $39,170

» $45,430 » $65,860

4 1 0 2 t A I h D g i E r y M p G o I C ZB A

» $91,000

Market research data miner

» $81,000

» $28,220 » $53,240

41%

Genetic couselors

41%

Physical therapist assistants

» $56,800 » $52,160

THE BEST (AND WORST) JOBS FOR TOMORROW

Here are the jobs with the highest and lowest projected growth rates for the next decade.

Educational and admissions consultant

» $55,000

Motion picture projectionist

26.5%

Postal carriers

26.8%

»

»

» $59,000

27.1%

Semiconductor processors

27.1%

»

» $75,000

$24,050 $33,020

Postal service mail sorters/processors

»

$53,090

29.8%

Log graders/scalers

31.6%

Postal service clerks

31.8%

»

Millennial generational expert

$56,490

Textile cutting machine operators

»

Social media manager

$19,830

»

$32,880 $53,090

Shoe machine operators

»

$24,310

Locomotive firers

» »

$44,920

Tree fallers

$35,250

35.3% 42%

- 43.3%

Sources: www.bls.gov, www.forbes.com, www.indeed.com. Infographic by Shavon Thompson

-

Financial Planning

?

the

What’s 4 1 plan 0 2

t A I h D g i E r y M p ICo BIG Z A One of the most daunting tasks for business owners to tackle is deciding what to do when they’re gone

By MICHAEL GOSSIE

t’s been 225 years since Benjamin Franklin said, “In this world nothing can be said to be certain, except death and taxes.”

Whether you like it or not, there is another certainty for business leaders: sooner or later, one way or another, you’re going to have to leave your business.

And even though experts said most business owners don’t pay enough attention to having a succession plan because it’s one of the most daunting tasks they face, when it’s time to leave their company, business owners and executives better have a plan in place.

“It’s critical for a business to have a succession plan,” said Keith Maio, president and CEO of National Bank of Arizona.

“It’s only fair. It’s less about you as a leader and more about whether or not you’re thinking about everyone else in the organization. If you want the business to succeed beyond you, you’ve got to have a succession plan in place.”

Before you rush out to create a succession plan, Gregory W. Falls, a member at Sherman & Howard who specializes in business and corporate law, said companies often make three mistakes when creating a succession plan: • Leaders name and anoint their successors-in-waiting without considering the repercussions.

• The conflicting demands of ownership, management and family (especially in a family-owned business) are not balanced.

46 AB | July-August 2014

• Once prepared, the plan sits in a file. It does not grow,

change or adapt to new circumstances.

“Great leaders do not begin by setting vision and strategy,” Falls said. “In his book, ‘Good to Great,’ Jim Collins wrote, ‘First they get the right people on the bus, the wrong people off the bus, and the right people in the right seats.’ Have the right people in the right places and listen to them.”

Financial experts said having a succession plan in place can have a positively impact on the financial health of a business even in the midst of dramatic change.

“A proper succession plan minimizes the impact of a business transition, whether by sale, a coordinated changing of the guard, or through a sudden loss of key employees or owners,” said Joseph Macdonald, a financial professional with AXA Advisors Southwest. “The business can continue to operate, without missing a beat, under qualified leadership. Employees and customers will not panic, quality will not suffer and the business will have ample liquidity to address any needs as they arise, all helping to maintain the health and value of the company.”

Without a succession plan in place, experts said the longterm viability of the company is in jeopardy.

“One the main reasons for this is the loss of an owner or shareholder due to retirement or an untimely death,” said Danny Nelson, CEO of Nelson Financial Group. “Additionally, surviving

shareholders may or may not want to continue to operate the business with the exit of key principles or major shareholders who have been so critical to the success of the business.”

Nelson said it is essential to develop a plan that addresses retirement, disability or an untimely death of key individuals to maintain operations and profitability under new leadership that has been agreed to be put in place to successfully transition the business.

“If the owner or key employees are no longer able to work due to death or injury, unqualified people — often well-meaning family members who are simply in over their heads — try to run the business and fail,” Macdonald said. “They lose clients, revenues, employees and ultimately the business’ value. The same can happen when a business owner retires, sells the business, carries the financing for the sale and the new owners fail – often causing the previous owner to come out of retirement and try to salvage the now-damaged business and relationships.”

To prevent that from happening, Macdonald said business owners and executives should put together a succession plan that includes these four key elements: 1. Clearly defined goals and vision for the business.

2. Build an expert succession team that includes a business/estate attorney, accountant, business appraiser and financial advisor.

3. Qualify the successors to ensure they are capable of running the business (your retirement may rely on it).

4. Place life and disability insurance on the key employees and owners to provide liquidity to the company in the event of a tragedy.

“Engage in an open dialogue about the issues unique to your company and its succession plan before the conflict of change arises,” Falls said. “Put the plan in writing that can be understood and followed, and review and update it on a regular basis to address changing circumstances internally and externally.”

4 1 0 2 t A I h D g i E r y M p G o I C thingsZB A Gregory W. Falls Joseph Macdonald

3

to remember

Thomas J. Morgan, who specializes in corporate law as a member at Sherman & Howard in Phoenix, says business owners should keep these three things in mind to create a successful succession plan: 1. Implement now, not later: An organization relies upon its staff to meet the organization’s goals and carry out its mission. Loss of key staff with no qualified replacement for an extended period will negatively impact the organization’s ability to fulfill its mission. In closely held organizations intending generational succession, a long-term plan is essential to optimize tax effects and estate planning goals and to maximize family harmony.

Keith Maio

Thomas J. Morgan

2. Keep sight of the goal, not the process: The goal of succession planning is to assure continuity and sustainability of the organization. The goal is met when trained personnel are available to fill key organizational roles at times of expected and unexpected vacancies. The plan may include both internal promotion and external recruiting. The process can be elaborate — needs assessments, organizational charts, check lists, training programs, evaluations, mentorship, executive searches, governance considerations, etc.

Closely-held companies also have wealth transfer, tax planning and family dynamics considerations. The plan process is only a tool and not the goal. Mid-course adjustments to keep the process dynamic will enhance the likelihood of success.

Danny Nelson

3. Direct and collateral effects: Effective succession planning will increase the value of the business and sustainability of the organization. In closely held businesses, succession planning can also minimize family discord and maximize family wealth transfer. In addition to these direct effects, succession planning provides other positive benefits.

The organization’s reputation as an employer is enhanced. It sends a positive message to your employees — that the organization rewards their commitment with opportunities for career advancement. A commitment to developing career paths also advances the organization’s employee recruiting and retention.

47 AB | July-August 2014

Financial Planning Helping business owners transition their business post-recession

4 1 0 2 t A I h D g i E r y M p G o I C ZB A

T

he relationship between a business owner and his or her wealth manager is essential to the successful transition of a family business, especially in the aftermath of a recession. Wealth managers who build trusting relationships with their businessowner clients are better able to help them pass on the business to their children in an emotionally healthy and financially savvy manner.

According to the Economic Analysis at the Arizona Office of Employment and Population Statistics, the recession in Arizona began three months prior to the U.S. recession. Although three months is not a lifetime, the added duration has deeply affected the livelihood of families and the businesses that support them. It is important to consider that some business valuations declined post-recession, which can translate to less liquidity and much of the family’s net worth tied up in the business. This can cause a delay in transition timing and cause parents to question whether they can completely walk away from the business or should consider staying and taking on a smaller role. This realization can take its toll because many business owners work for years romanticizing about retirement: travels, golf, visiting the grandchildren or buying a retirement home. Continuing to work in the business after the children take over can affect their ability to become emotionally invested in the business.

One-third of all business owners are over the age of 55 and have run their businesses for many years with an emotional investment and attachment that can make the transition a painful process without the proper support. Relinquishing control and allowing the children to establish themselves as the new business owners can be tough because the children may not agree with how the business is transitioned or the children’s vision for the business differs from the parents,’ or they simply don’t want to take over the business. Turning over the keys

48 AB | September-October 2014

and the books to your children exposes all the mistakes you may have made and shows them exactly where the business stands financially – the good, the bad and the ugly. Bringing the children in early to meet with your wealth manager and taking them as partners along the way can help you protect and grow your assets, as well as establish an honest understanding of your family’s wishes.

Life after your business has survived the recession doesn’t have to be a struggle. When you are able to have real and sometimes difficult discussions with your wealth manager about your desires, needs and dreams, then they are better equipped to create a successful plan for your business, family and future.

A strong and solid plan at the beginning of the relationship with your wealth manager is imperative and deepening the partnership will happen naturally over time. It is also important to assist your wealth manager in establishing relationships with your spouse, your children and any other advisors, such as accountants, insurance agents and attorneys.

If you are unable to retire and pass on your business, it’s not the end of the world. Working with your wealth manager can help you look at leveraging investments and other assets to ensure that surviving Mary Martuscelli, the recession is the first step to the Financial Management retirement you envisioned.

Mary Martuscelli is the West region president for the Private Client Reserve of U.S. Bank and is located in Phoenix.

4 1 0 2 t A I h D g i E r y M p G o I C ZB A AB | September-October 2014

49

“With any endeavor in life, to have success, you have to own it.”

4 1 0 2 t A I h D g i E r y M p G o I C ZB A Chuck Schwab Founder and Chairman, Charles Schwab & Co., Inc.

I’ve always thought the best part about this country is that we get to create our own futures. We have the opportunity to make a life, not just live one. I’ve been around long enough to recognize the successful people who are out there owning it.

The ones who take control of their careers and get involved with their schools and their communities. They’re not sitting around as life unfolds. I started Schwab for people who want to take ownership of their investments like they do in every other aspect of their lives. If this sounds like you, we invite you to talk to us today.

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4 1 0 2 t A I h D g i E r y M p G o I C ZB A PHOTO BY MIKE MERTES/AZ BIG MEDIA

KEITH MAIO: When you’re a small business with eight people, the workplace

culture is defined by the person running the company,” said the president and CEO of National Bank of Arizona. “As organizations become larger, it becomes more challenging to cast a consistent corporate culture.”

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Culture club 14 Creating a healthy work environment defines the 40 Arizona firms who Most Admired Companies awards for 2014 By MICHAEL GOSSIE

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erhaps even more than its product or service, a company’s internal culture can have a huge impact on the bottom line.

“It’s important because it’s a way for all employees in an organization to have an identity as to what they’re about,” said Keith Maio, president and CEO of National Bank of Arizona, which has earned a spot on the Most Admired Companies list in each of the program’s five years. “More than mission, it really defines how we do business and what we are about. If people don’t have that baseline understanding, then no matter what the business or what strategically they’re trying to do, it’s difficult to carry out a mission.”

In a nutshell, experts said workplace culture consists of the shared values, expectations and behavioral norms that impact how employees interact with each other, within the industry, within the community it serves and with its customers. Besides impacting a business’ bottom line, having a positive workplace culture also helped Az Business magazine and BestCompaniesAZ decide which 40 companies to honor as 2014 winners of Arizona’s Most Admired Companies Awards.

With nearly 300 nominations representing the most innovative and successful companies in Arizona, being one of 40 winners selected by the juding panel shows that the companies profiled on the pages that follow truly represent the best in Arizona.

When developing the Most Admired Companies program, the primary goal of Az Business magazine and BestCompaniesAZ was to recognize those companies that excel in workplace culture, leadership, social responsibility, customer opinion and innovation.

But creating an environment that fosters effective leadership, customer interaction and innovation boils down to establishing a solid workplace culture, experts said.

“It is so important in today’s high-tech, 24/7 world that companies create a workplace culture that intertwines multi-department interactions and fun while getting the job done,” said Dillan Micus, executive vice president of AXA Advisors Southwest, which also earned a spot on the 2014 Most Admired Companies list. “When employees know they are cared for, they are more committed, motivated, loyal and productive. They start to see each other as part of a tight-knit community that has shared a lot of laughs and common experiences.

Out stems a workforce that begins to strive for a common goal of success that engages everyone. In the long run, this equates to less turnover, more teamwork (and) an increase in sales.”

So how do you establish an effective workplace culture? Maio said the leadership at of NB|AZ sat down about 12 years ago and defined the company’s core values and a general proposition for workplace AB | September-October 2014

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2014 Most Admired Companies culture, using it as an exercise for a branding launch.

“We actually brought definition to a culture by defining our core values,” Maio said. “You have to be able to look in the mirror and say, ‘What really defines us?’ Once you have a clear definition of that, that allows the culture to remain consistent through different transitions in management and over a long period of time.”

Once NB|AZ defined its values and culture, leadership put it in writing and placed it on placards in offices because, “It was important for people to see that,” Maio said.

“It’s become less important over time that employees see it and more important that they feel it and weave it into the companies day-to-day activities,” Maio said. “The thing that really seemed to take hold and have longevity in the organization was that definition of culture. It’s important to make sure everyone understands that and make it part of their indoctrination. Every kind of communication we have with employees, we make sure to weave in elements that supported our corporate culture.”

Desirae Outcalt, vice president and client relations officer at Biltmore Bank, said there are three major components to making a healthier work environment.

“First is communication,” she said. “Employees like to be in the know. When they are left in the dark, imagination runs wild. Second is recognition. Most employees want to be acknowledged for a job well done, especially by peers. Third is keeping it fun and light. Having toys at your desk, as a manager, so staff will come in and play. Wearing silly hats ... pot lucks ... having a doctor come in to give B-12 shots all can make for a pleasant work environment.”

4 1 0 2 t A I h 2014 D g i E r y M p G o I C ZB A DILLAN MICUS

DESIRAE OUTCALT

Most Admired Companies

Adolfson & Peterson Construction Alliance Residential Company American Express Arizona Diamondbacks AXA Advisors Banner Casa Grande Medical Center Cancer Treatment Centers of America CBRE, Inc. Charles Schwab Cresa Phoenix Desert Diamond Casinos and Entertainment DIRTT Environmental Solutions

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Fennemore Craig GoDaddy Goodmans Interior Structurs Grant Thornton Harrah’s Ak-Chin Casino Resort Homeowners Financial Group Hyatt Regency Phoenix Infusionsoft International Cruise & Excursions, Inc. Kitchell LaneTerralever Laser Spine Institute Mayo Clinic Miller Russell Associates National Bank of Arizona

Phoenix Children’s Hospital Quarles & Brady Rider Levett Bucknall Ryan, LLC Scottsdale Lincoln Health Network Shutterfly, Inc. Sonora Quest Laboratories Sundt Construction The CORE Institute Telesphere UnitedHealthcare of Arizona University of Advancing Technology Vanguard

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2014 Most Admired Companies American Express

Years in Arizona: 53 Employees: 7,388 Learn more:

americanexpress.com Admirable qualities:

American Express’ Wellness Centers in Phoenix feature an on-site nurse practitioner, health coach and registered nurses.

Offerings include blood draws, mammography and prostate screenings, well woman exams, flu and allergy shots, immunizations, emergency medical care, dental services, CPR training and one-toone health and nutrition coaching ... Ranked No. 1 by J.D. Power and Associates for seven consecutive years for highest customer satisfaction among credit card issuers.

Fun fact: American Express has been named a Most Admired Company every year since the program started five years ago.

4 1 0 2 t A I h D g i E r y M p G o I C ZB A Adolfson & Peterson Construction

Alliance Residential Company

aspects of Adolfson & Peterson’s workplace culture include a fully stocked kitchen with free healthy food for employees for all meals of the day, paid workout facility membership, A&P sponsored sports teams, dogs and other pets allowed at the office, flexibility to bring children to work and the annual “Queens for the Day” event for all women in the office, which includes spa visits, lunch or other activities.

Fun fact: Adolfson & Peterson has been named a Most Admired Company every year since the program started five years ago.

Under the leadership of President Bruce Ward, Alliance has acquired or developed 74,000 apartment homes across 27 markets and currently manages a $9 billion portfolio. The executive team has worked together for more than 25 years and each is active in the community through board memberships, teaching and volunteering. Alliance community teams donate time and energy to support many causes and events, including Toys for Tots, Souls4Souls, The BuddyWalk and shoreline clean-ups.

Fun fact: Ranked No. 1 on the Multifamily Executive 2014 Top 25 Developers list.

Years in Arizona: 23 Employees: 42 Learn more: a-p.com Admirable qualities: Unique

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Years in Arizona: 14 Employees: 537 Learn more: allresco.com Admirable qualities:

Talk about doing something.

Do something 4 worth talking about.

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At Dignity Health, we believe in doing work that’s worth talking about. As proud sponsors

and supporters of “Arizona’s Most Admired Companies,” we congratulate all the companies

selected this year. As an organization recognized both locally and nationally as a “Best Place to Work,” we are truly honored to be a part of this prestigious award ceremony. Throughout each of our Arizona facilities – Chandler Regional Medical Center, Mercy Gilbert Medical Center,

St. Joseph’s Westgate Medical Center and St. Joseph’s Hospital and Medical Center – we strive to promote an atmosphere of teamwork, dedication, and inclusion, where employees are given the opportunity for growth and advancement. We join in celebrating the achievements of other companies that share that same dedication, and we are confident of your continued success.

From everyone at Dignity Health, congratulations!

To learn more about Dignity Health and our current opportunities, please visit careersatdignityhealth.com/AZBIZ Follow us on Twitter at @dignityhealthaz. EOE.

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2014 Most Admired Companies

4 1 0 2 t A I h D g i E r y M p G o I C ZB A Arizona Diamondbacks

Years in Arizona: 16 Employees: 262 Learn more: dbacks.mlb.com Admirable qualities: Started as an innovation

project in 2012, the D-backs’ $150,000 School Challenge has awarded $400,000 in grants to local educators who made the best “pitch” for a $5,000 grant for their classroom or school.

Since forming the Arizona Diamondbacks Foundation in 1997,

the D-backs and the foundation have made charitable contributions totaling $37.5 million.

Fun fact: Since 2000, the Arizona Diamondbacks Foundation has built or refurbished 33 baseball fields as part of the “Diamonds Back” Field Building Program with a charitable impact of more than $10 million.

AXA Advisors Southwest Years in Arizona: 39 Employees: 96 Learn more:

axaadvisorssouthwest.com

Admirable qualities:

When Dillan Micus took the position as executive vice president of AXA Advisors Southwest in August 2005 – at just 29 – he became the youngest ever executive vice president in the region’s history. Micus has grown the firm from approximately $4 million to nearly $18 million per year in revenue. In 2013, Micus innovated a proprietary Retirement Income Distribution Strategy process, designed to directly protect against several risk factors that threaten a successful retirement.

Fun fact: In 2014, AXA was honored with the University of Arizona Eller College Corporate Partnership Award.

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Banner Casa Grande Medical Center

Years in Arizona: 30 Employees: 819 Learn more: bannerhealth.com Admirable qualities:

Under the leadership of President and CEO Rona Curphy, who took over in 2009 during a time of economic strain, the hospital has achieved economic stability, improved its image in the community and inspired employees to realize BCGMC’s mission of providing excellent patient care. Through her leadership and mentoring, BCGMC has achieved best place to work status on local, state and national levels.

Fun fact: BCGMC is the 11th hospital in the nation to partner with Mayo Clinic in telemedicine, bringing the expert to the patient.

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2014 Most Admired Companies Cancer Treatment Centers of America

at Western Regional Medical Center Years in Arizona: 5 Employees: 750 Learn more: cancercenter.com Admirable qualities: Inspired

by his own experience with cancer in his family, President and CEO Matt McGuire’s overriding goal is to reduce fear and bring new hope to cancer patients by way of innovative treatments and world-class physicians. Under McGuire’s guidance, the leadership team’s vision includes propelling Western to the forefront in delivering innovative cancer care through research, genomics, genetics and newly developed immunotherapies.

Fun fact: Employee benefits include free on-site massage services and on-site yoga, aerobics and Zumba classes.

4 1 0 2 t A I h D g i E r y M p G o I C ZB A Charles Schwab

Years in Arizona: 62 Employees: 3,300 Learn more: schwab.com Admirable qualities:

Charles Schwab Foundation focuses a significant portion of its resources on building financial literacy and capability. The foundation has had a national relationship with Boys & Girls Clubs of America since 2003 through which it provides personal finance education to teens. To date, more than 500,000 Boys & Girls Club teens have completed the program through 1,700 Boys & Girls Clubs across the U.S. and on military bases.

Fun fact: Under the Schwab Accountability Guarantee, clients can request a refund of their program fees from the prior quarter if, for any reason, they are not happy.

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CBRE, Inc.

Years in Arizona: 62 Employees: 599 Learn more: cbre.com/phoenix Admirable qualities: CBRE’s workplace culture stems from its RISE

values—Respect, Integrity, Service, Excellence —which are the foundation upon which the company is built. Diversity and inclusion are woven into CBRE’s business. One example of this commitment is its corporate support for African-Americans, Hispanics, women and LGBT networking groups ... Phoenix employees have hand-delivered nearly 700 cakes to children celebrating birthdays at Sojourner Center, a local domestic violence shelter.

Fun fact: CBRE, Inc. has been named a Most Admired Company every year since the program started five years ago.

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2014 Most Admired Companies Cresa Phoenix

Years in Arizona: 13 Employees: 17 Learn more: cresa.com/phoenix Admirable qualities: Cresa

is guided by the motto, “Do the right thing,” which is not only important for its clients, but how employees treat others within the office. Cresa’s people maintain the flexibility to create their own work schedule with the ability to have full access to the partners managing the business. Mentor programs help grow the attributes of Cresa’s people in order to provide the credibility and impact they need to win business.

Fun fact: Cresa allows its team members to participate in philanthropic activity with no limit on time away from the office.

4 1 0 2 t A I h D g i E r y M p G o I C ZB A DIRTT Environmental Solutions

Years in Arizona: 3 Employees: 70 Learn more: dirtt.net Admirable qualities: Mogens Smed, founder and

Desert Diamond Casinos and Entertainment

Years in Arizona: 30 Employees: 1,230 Learn more: ddcaz.com Admirable qualities: Through

its Leadership Development and Tribal Development programs, Desert Diamond Casinos & Entertainment (DDCE) provides professional, educational and personal growth opportunities for its full- or part-time Tohono O’odham tribal member team members. The programs drive DDCE’s mission vision, and values as an enterprise of the Tohono O’odham Nation. As a result, DDCE has designed and implemented one of the most aggressive and forward-thinking career-development programs in existence.

Fun fact: DDCE earned the Tucson Hispanic Chamber of Commerce’s 2014 Arizona Corporation of the Year Award.

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CEO, had a vision that he could design, manufacture and install prefabricated interior wall systems that would mitigate the need for drywall as a solution to the problem of environmental hazards related to traditional construction. DIRTT, Doing It Right This Time, was founded 10 years ago and has grown into a $140 million company that went public in November 2013.

Fun fact: Instead of being laid off, DIRTT’s factory workers are put to work at local food banks when there is a downturn in the manufacturing cycle.

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2014 Most Admired Companies

4 1 0 2 t A I h D g i E r y M p G o I C ZB A GoDaddy

Years in Arizona: 17 Employees: 3,050 Learn more: godaddy.com Admirable qualities: Employees can donate two

paid-volunteer days per year to their charities of choice with GoDaddy’s GoVolunteer program. Through GoDaddy Inspires, every employee can earn one $500 grant per year,

for their charity of choice. Since October 2013, employees have volunteered more than 4,121 hours and impacted more than 212 organizations. GoDaddy has donated more than $13 million to organizations with missions related to STEM (Science, Technology, Engineering, Math) education and entrepreneurship.

Fun fact: GoDaddy Cares Advocates was launched in the spring of 2014 to focus on elevating GoDaddy’s social responsibility efforts.

Fennemore Craig

Years in Arizona: 129 Employees: 331 Learn more: fclaw.com Admirable qualities: Fennemore

Craig’s Management Committee recognizes that the firm’s success depends upon its ability to recruit, retain, develop and advance a diverse pool of talented lawyers and staff.

Therefore, Fennemore Craig has appointed a Diversity Council to actively recruit, develop and retain a diverse mix of talented lawyers and staff. The best evidence of success of this strategy lies in the number of minority and women directors and in the number of leadership positions held by minorities and women.

Fun fact: Fennemore Craig has been recognized for its groundbreaking use of Google Glass.

Goodmans Interior Structures

Years in Arizona: 60 Employees: 124 Learn more: goodmansinc.com Admirable qualities: Adam Goodman, president

and CEO, is the third generation to lead the family business.

Following the tradition of innovation established by his father and grandfather, Goodman has used his leadership to help Goodmans adapt to changing markets and anticipate opportunities for growth. Goodmans is now challenging customers to understand the purpose of office space and to rethink traditional office planning paradigms. Goodman has also developed many innovative programs to give back to the community.

Fun fact: In June, Goodmans was honored with the Better Business Bureau’s International Torch Award for Ethics.

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2014 Most Admired Companies Harrah’s Ak-Chin Casino Resort

Years in Arizona: 19 Employees: 755 Learn more: harrahsakchin.com Admirable qualities: HAC’s

mission, “We inspire grown-ups to play,” fully represents how it thinks of its business and culture. To help employees inspire grown-ups to play, HAC has random employee “play days,” including moustache day, Wii bowling competitions, pajama day, ugly sweater day, March Madness and free meals.

Fun fact: HAC implemented “Wellness Rewards” to guide employees and eligible dependents to healthy life choices. Ninety-six percent of its associates completed the program, resulting in discounted benefits premiums ranging from $1,300 to $2,600 annually.

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Grant Thornton

Years in Arizona: 10 Employees: 68 Learn more: grantthornton.com Admirable qualities: The Phoenix

office developed a national initiative called Women at Grant Thornton to enhance the recruitment, retention and advancement of client-serving women professionals

and offering female employees a choice of programs aimed at creating work/life balance.

Audi partner Stella Shanovich and her team have also participated in, or sponsored, women in business panel discussions, negotiation skills training, work-life integration seminars and dress-for-success events.

Fun fact: Grant Thornton’s Phoenix location was the first “made from scratch” office opened by the company in more than 50 years.

Homeowners Financial Group Years in Arizona: 10 Employees: 161 Learn more: homeownersfg.com Admirable qualities: Members of

HFG’s executive leadership team, Bill Rogers and Bob Kennedy, travel to Washington each year to lobby as part of the Mortgage Bankers Association Political Action Committee.

They educate lawmakers and act as a voice to their constituents as they try to navigate through the real estate crisis. They pushed to implement new laws to help stabilize housing in Arizona to prevent the current problems from resurfacing in the future.

Fun fact: HFG’s Care Fund helps support Arizona families who endure financial hardship while experiencing extended illness or injury of their children.

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2014 Most Admired Companies Infusionsoft

Years in Arizona: 13 Employees: 550 Learn more: infusionsoft.com Admirable qualities: The company

Hyatt Regency Phoenix

Years in Arizona: 38 Employees: 275 Learn more: phoenix.hyatt.com Admirable qualities: The Hyatt Regency Phoenix

is known for having a superb workplace, so it’s no surprise that competition to join its growing population is fierce. In 2013, the company received more than 4,600 applications for 168 job openings, resulting in a 3.7 percent acceptance rate. Harvard University’s acceptance rate was 6.1 percent in 2012. Infusionsoft received the Inc. Hire Power award for U.S. job creation, becoming the No. 4 job-creator in the software industry over the past 18 months.

Fun fact: Infusionsoft has been named a Most Admired Company every year since the program started five years ago.

makes a continuous effort to recruit, retain and develop associates with diverse backgrounds and perspectives. The Hyatt Regency Phoenix was named one of the “Best Places to Work for LGBT Equality,” which reflects its efforts toward diversity and inclusion. It also has a local chapter of Women@ Hyatt, which supports the development and growth of women throughout Hyatt.

Fun fact: Hyatt’s “Random Acts of Kindness Program” gives associates the ability to offer a complimentary item or service just to do something nice for a guest.

International Cruise & Excursions, Inc.

Years in Arizona: 17 Employees: 1,182 Learn more: iceenterprise.com Admirable qualities: An ICE

employee recently wrote on the company’s Facebook page: “Who knew coming to work could be this fun?” In addition to standard benefits such as medical, dental, 401(k) and vacations, employees receive unique benefits that are designed to keep them healthy and provide convenience. Those include an on-site café with a “take home” family dinner option for employees, on-site spa, on-site dry cleaning, on-site health clinic and on-site fitness center.

Fun fact: Through Vacations-forVeterans, ICE donates vacations to wounded veterans and their families.

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www.uat.edu

4 1 0 2 t A I h D g i E r y M p G o I C ZB A Tech Respect for Our Community

Thank You! Students, Families, Alumni, Staff, Faculty and Community.

UAT has been named among the Most Admired Companies for 2014 by AzBusiness Magazine and we share this award with you! Your passion to become and support the premier thinkers in advancing technology education fuels our mission and earns you tech respect. The result is innovation that advances global society for the greater good.

Tempe, Arizona

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2014 Most Admired Companies Kitchell

Years in Arizona: 64 Employees: 330 Learn more: kitchell.com Admirable qualities: Kitchell

built its business by looking for the next big idea, innovation or solution that will bring value. It is how the company grew from a construction company and developer of Doubletree Hotels to

a commercial builder and developer that creates customized “apps” to keep clients apprised of progress on an iPad. To encourage this idea generation, the company created a “New Ventures Committee” that vets employees’ ideas.

Fun fact: Last year, Kitchell produced its inaugural “Build Fore Good” golf tournament, which raised nearly $30,000 for the John C. Lincoln Breast Health & Research Center.

4 1 0 2 t A I h D g i E r y M p G o I C ZB A LaneTerralever

Years in Arizona: 52 Employees: 111 Learn more: laneterralever.com Admirable qualities:

As CEO, Beau Lane has spent the past several decades growing LaneTerralever into one of the largest and most successful agencies in the region. He helped oversee the merger of E.B. Lane and Terralever, a newly formed powerhouse that includes all aspects of the marketing mix. Lane was named 2013 Ad Person of the Year by Phoenix Ad Club and under his direction the agency has received national and local recognition for years of award-winning work.

Fun fact: LaneTerralever was recognized as the 2013 Deal of the Year by the Association for Corporate Growth.

Laser Spine Institute

Years in Arizona: 6 Employees: 76 Learn more: laserspineinstitute.com Admirable qualities: Laser Spine

Institute’s emphasis toward fostering an environment of collaboration and employee satisfaction is a key aspect of the overall foundation and culture of the company. Laser Spine Institute polled employees to create its CHOICE (Care, Have fun, One team, Integrity, Commitment, Excellence) values, which allows the organization to determine what issues and principles matter to its personnel, and therefore create a foundation of values to adhere to every day.

Fun fact: Laser Spine Institute was ranked 19th nationally as one of Modern Healthcare’s “Best Places to Work” in healthcare in 2013.

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4 1 0 2 t A I h D g i E r y M p G o I C ZB DESIGN DISTINCTIVE A

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2014 Most Admired Companies Miller Russell Associates

Years in Arizona: 23 Employees: 42 Learn more: miller-russell.com Admirable qualities: As a partner-

owned firm, Miller Russell Associates is able to attract talented investment, wealth management, and tax professionals, and each of its team members has the potential opportunity to become a future owner of the firm. Miller Russell Associates select its people based not only on their skills, accomplishments, and potential, but also on their principles and values.

Fun fact: This year, the company changed its name from Miller/Russell & Associates to Miller Russell Associates to emphasize the fact that every team member at the firm is empowered to be a leader.

4 1 0 2 t A I h D g i E r y M p G o I C ZB A Mayo Clinic

Years in Arizona: 27 Employees: 5,583 Learn more:

mayoclinic.org

Admirable qualities:

Mayo Clinic’s Center for Innovation fuses design principles with the scientific method to uncover human needs in the health care environment, which include empathy, creativity, systems thinking and a humancentered focus. The center’s

philosophy is “Think big. Start small. Move fast.” Design methods include ethnographic and observational techniques, visualization, prototyping, sketching, storytelling, brainstorming and more. The complement of design allows the center to think beyond what it normally does and serve as a translator for ideas and possibilities.

Fun fact: Mayo offers free cognitive concussion testing to student athletes age 12 and older.

Phoenix Children’s Hospital

National Bank of Arizona

Years in Arizona: 30 Employees: 860 Learn more:

nbarizona.com Admirable qualities:

Rather than “give back,” NB|AZ prefers to “pay it forward,” taking a proactive approach to partnering with organizations through business

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development, sponsorships and service. NB|AZ employees are encouraged to find a way to get involved and make a difference locally. The bank has sponsored 230 volunteer activities that resulted in nearly 8,000 hours of service through the NB|AZ in Action program.

Fun fact: NB|AZ was named the No. 1 Bank in Arizona in 2014 by Ranking Arizona. It was the bank’s sixth consecutive No. 1 ranking.

Years in Arizona: 30 Employees: 3,550 Learn more: phoenixchildrens.org Admirable qualities: PCH’s clinicians

regularly conduct a variety of research studies to advance medical and nursing knowledge.

PCH is committed to discovering the treatments of tomorrow with a focus on clinical research. Its Research Strategic Plan calls to launch several laboratories within the first five years, among many other initiatives. Phoenix Children’s physicians opened 89 new research studies last year, more than half of which were initiated by its physicians and staff. There are 347 active research studies currently underway.

Fun fact: PCH received perfect scores from the Leapfrog Group in the prevention of medical errors.

4 1 0 OUR MISSION, 2 t A I h OUR iVISION, D g E r y OUR VALUES M p G o I C ZB A Harrah’s Ak-Chin Casino is, again, a proud recipient of the Most Admired Companies Award. We would like to thank the dedicated individuals who “Inspire Grown-Ups to Play” every day through outstanding customer service to our guests, each other, and our community!

Must be 21 or older to gamble. Know When To Stop Before You Start.® Gambling Problem? Call 1-800-522-4700 or 1-800-NEXT STEP. ©2014, Caesars License Company, LLC

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2014 Most Admired Companies Rider Levell Bucknall Years in Arizona: 16 Employees: 23 Learn more: rlb.com Admirable qualities:

Quarles & Brady

RLB focuses on employees through three company initiatives: 1) soliciting input from employees about the company and its client services; 2) training and succession plans that help employees reach their development goals;

and 3) paying attention to the company’s overall culture and attitude. Every year, RLB uses an anonymous online survey to ask employees for input concerning factors that impact their job experience, including workplace culture and job satisfaction.

Fun fact: A survey showed that 96 percent of clients would recommend RLB to a colleague or industry friend.

4 1 0 2 t A I h D g i E r y M p G o I C ZB A Years in Arizona: 27 Employees: 217 Learn more: quarles.com Admirable qualities: During their

first two years with Quarles & Brady, new associates have their own personal mentor and the firm also has a formal Associate Development Curriculum that includes professional aspects of social networking, building client relationships, client interviewing, negotiation skills, brief writing for litigators, contract drafting, LinkedIn professional practicum, communicating with impact, negotiation skills, accounting, client pitches and cross-selling techniques.

Fun fact: In 2014, Law360 named Quarles to its inaugural class of “Ceiling Smashers,” the 25 U.S.-based law firms out of nearly 400 surveyed, that have the highest percentage of female partners.

Shutterfly, Inc.

Years in Arizona: 5 Employees: 365 Learn more:

shutterfly.com

Admirable qualities:

Scottsdale Lincoln Health Network

Years in Arizona: 52 Employees: 10,459 Learn more: jcl.com Admirable qualities: Scottsdale Lincoln Health Network provides

trauma training for military medical personnel by providing hands-on learning through high-tech human patient simulators, expert lectures and clinical rotations. Since its beginning in 2004, the Military Partnership has provided training to more than 2,000 military participants. In 2013, Scottsdale Lincoln Health Network employees provided preceptor and instructor time worth more than $1,926,382 in community outreach to our military medical community.

Fun fact: Through Workforce Development, $3,106,422 in tuition assistance benefits was provided to more than 975 employees in 2013.

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Shutterfly’s company culture is encapsulated in its employee brand vision statement, “Memories every day. Create yours. Inspire others.”

Shutterfly’s leadership wants its employees to be truly proud of the company they work for and see their workplace as a place to make impactful memories just as they do outside of work. In order to create this environment, Shutterfly’s leadership constantly strives to create an employee-focused culture.

Fun fact: Shutterfly, Inc. has been named a Most Admired Company every year since the program started five years ago.

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4 1 0 2 t A I h D g i E r y M p G o I C ZB A Seasonal employment opportunities are available through Corestaff Services

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2014 Most Admired Companies Ryan, LLC

Years in Arizona: 8 Employees: 92 Learn more: ryan.com Admirable qualities: In

1991, Chairman and CEO G. Brint Ryan founded Ryan with a credit card and an innovative business concept.

Today, Ryan is a leading global tax services firm with the largest

indirect and property tax practice in North America and the sixth largest corporate tax practice in the United States. Ryan’s acquisition of Thomson Reuters PTS in 2013, almost doubled the firm’s size, strengthening Ryan’s market position and global reach.

Fun fact: This year, Ryan launched RyanPRIDE, a new online peer- to-peer recognition program where employees recognize co-workers for their great work.

4 1 0 2 t A I h D g i E r y M p G o I C ZB A Sonora Quest Laboratories

Years in Arizona: 17 Employees: 2,806 Learn more: sonoraquest.com Admirable qualities:

Sonora Quest Laboratories, a privately held joint venture formed in 1997 between Banner Health and Quest Diagnostics, Inc., is the largest clinical laboratory network

in Arizona. In 2014, it will perform nearly 45 million laboratory tests for more than 6.3 million people. In 2013, Sonora Quest provided more than 75,000 meals to those in need.

Sonora Quest was named a Business Ethics Award winner by the Better Business Bureau of Greater Arizona.

Fun fact: Sonora Quest Laboratories has been named a Most Admired Company every year since the program started five years ago.

Sundt Construction

Years in Arizona: 85 Employees: 423 Learn more: sundt.com Admirable qualities: Sundt’s Leadership Excellence

Accelerates Performance (LEAP) program was developed in 2000 to ensure that the next generation of company leaders would be well trained for their future roles. With the assistance of a consultant and psychologist, the company designed and implemented a program that included intensive three-day training sessions every six months, psychological assessments, team projects and individual coaching. An impressive 47 percent of the top leaders within Sundt are graduates of the program.

Fun fact: Sundt Construction has been named a Most Admired Company every year since the program started five years ago.

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The CORE Institute

Years in Arizona: 9 Employees: 427 Learn more: thecoreinstitute.com Admirable qualities: In nine

short years, The CORE Institute’s leadership has helped the organization expand from four providers to more than 100 in 14 Arizona locations. CORE also expanded its relationship with Phoenix area Bannerled hospitals and now leads orthopedics for many of the Valley’s leading hospitals, securing the highest market share for inpatient cases in Arizona. In 2014, The CORE Institute treated more than 43,000 new patients, growing more than 20 percent compared with 2012.

Fun fact: The Greater Phoenix Chamber named The CORE Institute the 2014 IMPACT Award winner for Entrepreneurial Excellence.

4 1 0 2 t A I h D g i E r y M p G o I C ZB Reputation A

Reputation-HalfPg-112213_Layout 1 11/22/13 2:13 PM Page 1

A contractor’s reputation for excellence builds by completing projects on time, within budget, and by continually exceeding expectations.

Building Successful Arizona Projects for 27 Years

License B1-088897

480.497.2300 • fax: 480.497.9610 • www.bjerkbuilders.com

77 AB | September-October 2014

2014 Most Admired Companies Telesphere

Years in Arizona: 8 Employees: 80 Learn more: telesphere.com Admirable qualities:

Since 2010, Telesphere has grown more than 150 percent and has been recognized for three consecutive years on the Inc 500/5000 Fastest Growing Companies list. Telesphere was also ranked highest among Arizona companies on the

prestigious 2013 Deloitte Tech 500 List of Fastest Growing Technology companies. As a business, Telesphere has done an exceptional job of creating shareholder value and has maintained a 36.2 percent compounded annual growth rate since 2008.

Fun fact: In 2013, the AZ Tech Council honored Telesphere founder Clark Peterson with the Ed Denison Business Leader of the Year award.

4 1 0 2 t A I h D g i E r y M p G o I C ZB A University of Advancing Technology

Years in Arizona: 31 Employees: 157 Learn more: uat.edu Admirable qualities: Before staff are even hired, they are issued a

DISC personality assessment. Having a personality profile for each staff member is beneficial for everyone within the organization and gives UAT a high level of emotional intelligence about its employees. The DISC assessment helps leaders at all levels work with their staff and determine what each employee needs, not only in terms of performance and development, but at a personal level.

Fun fact: UAT had a virtual reality degree program in 1990 – long before most knew VR existed outside of sci-fi movies.

UnitedHealthcare of Arizona

Years in Arizona: 28 Employees: 5,000 Learn more: uhc.com Admirable qualities:

UnitedHealthcare’s myEasyBook, which was introduced last year as a pilot program in Phoenix, is an online healthcare shopping service that makes it easier and more affordable for consumers to make appointments with local healthcare professionals. So far, 50 percent of all users have utilized the service more than once. The service received an Editor’s Choice Award at the 2014 Consumer Electronics Show held January 2014 in Las Vegas.

Fun fact: UnitedHealthcare of Arizona has been named a Most Admired Company every year since the program started five years ago.

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Vanguard

Years in Arizona: 20 Employees: 2,321 Learn more: vanguard.com Admirable qualities:

Vanguard’s Launch to Leadership program develops skill sets around a crew member’s current position and focuses on leadership philosophies, coaching and tips for transitioning to leadership. Since the program’s

inception in 2007, 61 percent of its participants are in leadership positions.

Vanguard also offers several options available to crew members who wish to pursue an MBA or other graduate degree.

Fun fact: During Vanguard’s annual All Cans on Deck food drive, crew members collect food items for local charities. In Arizona, Vanguard collected 161,000 pounds of food, or an average of 75 pounds per employee.

Ryan associates are making our workplace the industry gold standard.

4 1 0 2 t A I h D g i E r y M p G o I C ZB A

Ryan is Proud to be Selected as One of Arizona’s Most Admired Companies for the Third Consecutive Year.

At Ryan, we’re committed to the growth of our employees and the communities where they live. Our award-winning myRyan work environment is recognized internationally for giving employees the freedom and flexibility to achieve the highest level of success and productivity in all areas of their professional and personal lives. Our corporate training programs and commitment to employee development have earned the prestigious American Society for Training & Development (ASTD) BEST Award. And our community outreach efforts have raised millions of dollars since 2005.

At Ryan, your talent is encouraged, your abilities are challenged, and your expertise is rewarded. Learn more about exciting career opportunities with Ryan at ryan.com/careers.

Congratulations to all our Arizona employees for this well-deserved recognition!

1.855.RYAN.TAX | www.ryan.com

© 2014 Ryan, LLC. All rights reserved.

79 AB | September-October 2014

Stepping up

2014

to recognize great Arizona businesses

Your contributions have made a positive impact in Arizona.

4 1 0 2 t A I h D g i E r y M p G o I C ZB A UnitedHealthcare congratulates the winners of the AZ Business magazine 2014 “Arizona’s Most Admired Companies” Awards.

©2014 United HealthCare Services, Inc. Insurance coverage provided by or through UnitedHealthcare Insurance Company or its affiliates. Administrative services provided by United HealthCare Services, Inc. or their affiliates. Health Plan coverage provided by or through a UnitedHealthcare company.

UHCAZ706716-000

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4 1 0 2 t A I h D g i E r y M p G o I C ZB A 30 YEARS OF EXCELLENCE

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MEETING PROFESSIONALS INTERNATIONAL

Raising the

Barr

W

AzMPI president expects Arizona’s upcoming mega events to boost the state’s meeting and events industry By MICHAEL GOSSIE

4 1 0 2 t A I h D g i E r y M p G o I C ZB A

hen Cristin Barr, CMP, went to college, she was more interested in investor relations than guest relations.

“At The University of Texas I studied Investor Relations, which took me to New York City for my first professional job,” said the current president of the Arizona Sunbelt Chapter of Meeting Professionals International (AzMPI).

“For the past 10 years, though, I’ve been traveling the world and enjoying the hospitality industry.”

Now director of national accounts at The Ritz-Carlton, Dove Mountain, Barr is working with the No. 1 hotel in Arizona, according to Travel + Leisure.

“I work with meeting planners to secure guest rooms and meeting space at the hotel for programs, including incentive trips, client events, annual meetings and board retreats,” Barr said.

Az Business caught up with Barr to talk about how the next year is shaping up to be a big one for the state’s tourism brand.

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What attracted you to the hospitality industry?

The sales role in hospitality is a great mix of creative and analytical. On any given day, we have unique challenges that can be best solved with a combination of critical thinking and service-based creativity.

How has your membership in MPI impacted you professionally?

MPI membership and CMP (certified meeting planner) certification give me a sense of personal achievement as well as recognition in the industry. The increased credibility among customers and prospects is invaluable.

How do mega events like the 2015 Super Bowl impact Arizona’s meetings and events (M&E) industry?

The economic impact of hosting a Super Bowl makes Arizona itself the clear big winner. A mega event places a spotlight much wider than just expenditures during the week of the game. There is no doubt that the M&E industry will benefit from incredible media exposure, generating future event bookings.

rather than by the planners or the educators. Social media can help attendees engage before and after a meeting and provides opportunity to connect with a very broad audience or a narrow specific slice of the demographic. It’s easy, it’s inexpensive and it will continue to change the face of the industry.

What are your goals as AzMPI president?

2013-2014 was a hugely successful year for AzMPI in terms of promoting excellence in the meeting industry through education, certification, advocacy and business alliances. For the 2014-2015 year, we will focus on our key metrics with an emphasis on member satisfaction and financial management.

We will also organize six monthly educational programs, the holiday party, awards gala, as well as a golf tournament that we do in conjunction with the Hospitality Sales and Marketing Association International (HSMAI).

4 1 0 2 t A I h D g i E r y M p G o I C ZB A

What kind of economic impact does the meeting and events industry have on Arizona?

Tourists bring almost $20 billion to Arizona each year, which can be seen in employment and tax base coming from lodging, food service, transport and recreation — just to name a few. But the benefits reach far beyond the hotels and golf courses. The economic impact is evident in important public services as well as in the businesses that open or relocate to our area.

What should Arizona’s M&E industry do to capitalize on the 2015 Super Bowl?

We are lucky to have a very strong network of CVBs, offices of tourism and advocates that work year round to attract and assure successful meetings, conventions and events are held in Arizona. The Super Bowl will be a unique and exciting tool for continued messaging that Arizona is a premiere destination.

What current trends are having the biggest impact on the M&E industry?

Social media is interesting in that the content is often driven by stakeholders

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AzMPI What is AzMPI?

AzMPI member profile

Meeting Professionals International (MPI) is the largest and most vibrant global meeting and event industry association. The organization helps its members thrive by building human connections through knowledge and ideas, relationships, and marketplaces. MPI membership is comprised of approximately 20,000 members belonging to 71 chapters and clubs worldwide. For additional information or to join, visitmpiweb.org Active since 1979, the Arizona Sunbelt Chapter is MPI’s 13th largest chapter in the world. The organization is comprised of 350 members throughout Arizona, representing a mix of corporate, association, government and independent meeting planners, suppliers who provide a variety of products and/or services to the meeting and hospitality industry as well as student and faculty from our local colleges and universities. The local chapter offers members educational, networking, and community volunteer opportunities, plus industry certification and professional growth opportunities. For more information, contact Executive Director Joanne Winter, at 602-277-1494 or visit the chapter website at www.azmpi.org.

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AzMPI’s 2014-15 board of directors

Top row, from left: Rochell Planty, CMP, CFE, Rockin’ R Meetings & Events; James

Eggimann, CMP, The Ritz-Carlton, Phoenix; Jill Longfellow, Enterprise Holdings; Troy Peters, Video West; Lee Smith, Hotel Valley Ho; Chip Headman, Williams and Associates; Joanne Winter, MPI Arizona Sunbelt Chapter. Front row, from left: Lynne Wellish, CMP, CHSE, Triage Meetings & Events; Penny Allphin, CHME, Hassayampa Inn; Cristin Barr, CMP, The Ritz-Carlton, Dove Mountain; Melanie Ravalin, CMP, M.Y. Events; Susie Molinich, CMP, SMMC, American Express Meetings & Events; Tiffany Higgins, The Tiffany Event. Not pictured: Danielle Adams, KCA; Amy Miranda, Crowne Plaza Phoenix Airport; David Rosenbaum, CHME, Carefree Resort & Conference Center; Rachele Vincent, Dave and Buster’s.

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Susie Molinich CMP SMMC

Molinich has been in the hospitality and meetings industry for more than 20 years. Most recently, she was in account management. Prior to that, she spent five years leading a meetings team that was dispersed throughout the western United States. She also held sales and conference services positions with several hotel companies.

Attraction of industry: “While attending college, I had a parttime job at a local hotel, which prompted me to change my major to Recreation Management and Tourism, as I realized this was the industry for me,” Molinich said.

Impact of MPI: “Getting back involved in the industry through MPI helps keep me informed of the trends taking place within our industry, as well as building strong connections,” Molinich said.

TuRN uP THE HEAT WHEN YOu MEET.

4 1 0 2 t A I h D g i E r y M p G o I C ZB A Your meetings need more awesome. How can you find it? Have your next meeting at Hotel Valley Ho. From indoor to outdoor, floor to ceiling, we’ve got the coolest spaces for whatever you need. Want Herman Miller executive chairs and the latest digital tech? You got it. Choose from four contemporary boardrooms, two ballrooms, and a full suite of media services. Want fresh landscapes and amazing views? No problem. Take five in the amazing Arizona weather and enjoy the patios that accompany many of our meeting spaces. Or, host a reception at our Sky Line Rooftop, where you get 360° views of Downtown Scottsdale and Camelback Mountain.

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AzMPI

4 1 0 2 t A I h D g i E r y M p G o I C ZB A Meeting and event planners create altruistic activities to help team-building projects leave a dynamic impact By MICHAEL GOSSIE

alling back into your boss’ arms to build trust is about as fresh as the “chicken dance.”

“We are moving into an era where people need to give trust by being 100 percent engaged with their co-workers,” said Todd Davis, founder of Fun Coach USA. “Statistics say only 30 percent of 100 million workers are engaged at work. The biggest challenge is who wants to catch someone else when they are so busy they are tripping over themselves. We have so many diverse people, backgrounds and styles that today, the No. 1 way to build trust is to get to know each other better. It’s that simple.”

Experts in the meeting and events industry said they see new opportunities for fun and exciting ways for meeting attendees to connect, get to know each other, have fun and build a stronger team. One of the directions Davis said planners are taking is creating events that combine elements of team building and humanitarianism so the events serve a dual purpose — giving back to the community while getting to know others and learning to trust them.

“A current trend is creating philanthropic events that make a difference in the local

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communities,” said Elijah Hernandez of Event Team, one of the premier team-building companies in Arizona. “Everywhere we turn, companies get much better feedback from their employees when the activity they do at a meeting or event is positively impacting a child in need or enriching the environment.”

Hernandez said the positive reaction doesn’t just stay with the event, the philanthropic exercise builds employee loyalty and increases workplace production.

“The employee leaves the event with the belief that the company takes care of them and the community that they do business in,” Hernandez said. “Since most companies want to prove they are one with the community, Arizona charities benefit every time a corporate group visits our beautiful state.”

Hernandez said it’s important that companies recognize corporate philanthropy doesn’t always mean spending money or organizing a drive.

“You can simply schedule time with a local nonprofit,” Hernandez said. “Organize shelves and warehouses or let your employees offer extra hands at a soup kitchen. These activities prove that you care.”

Experts said it’s important to remember that the best team-building activities are not just simple tasks to build trust. Team-building activities need to be interactive and focused

4 1 0 2 t A I h D g i E r y M p G o I C ZB A Where Business & Pleasure Meet Our Four Diamond property offers flexible meeting space, comfortable guest rooms and a host of amenities. All just steps away from seven restaurants, live entertainment, nightlife, and gaming.

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AzMPI and engage employees in an event that facilitates full cooperation from your group, Hernandez said. In turn, the team learns to trust each other and work together without the grind of their actual job, but in synchronicity with the activity in which they are participating.

“People need to consider the outcome or process of team-building events as much as they consider the type of experience they will have,” Davis said.

Davis divides team-building events for groups into two types.

For fun: “These are events where the group gets out, connects, cooks, hikes or shares an experience,” Davis said.

For added value: “These are events that involve more problem solving, communication and planning,” Davis said. “These events may also be about giving back to the community through a group-based project.”

Going a step further, Davis offered these five ways to create, maintain and strengthen a team-based corporate environment: 1. Team communication: “Create a process that allows for group input so people want to go to the meeting.

Activities that focus on verbal communication will help this value.”

2. Team collaboration: “Create experiences where multiple teams must work together to achieve a group goal, while understanding the need to compete, but be available for others.”

3. Connect the I in team: “Examine individual contributions to an activity as a way to get to know all the individuals in the group better.”

4. Creative problem solving with planning: “Give the group time to develop a strategy, then a game plan before having the fun desired in the outing. I do see some old-fashioned ‘low ropes’ type of experiences coming back as long as they aren’t being lectured on trusting each other. Solving the problems and developing a game plan where people precede performing and productivity will be essential.”

5. Community service: “Programs where it takes some planning and teamwork to achieve the goal along with a celebration of the finished project is perfect. Remember that it is good to remind people how volunteering helps them in life, not just who they help at the event.”

The most important element to remember, experts said, is that teambuilding needs to remain an evolving activity, not a once-a-year proposition.

“Any fun, high-energy activity will bring excitement to the workforce,” Hernandez said. “Giving a moment for your team to enjoy themselves throughout the year always proves that you care about them and not just the bottom line.”

AzMPI member profile

4 1 0 2 t A I h D g i E r y M p G o I C ZB A Todd Davis

Elijah Hernandez

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Troy J. Peters, CTS Strategic accounts executive Video West, Inc.

Peters has worked in the entertainment, production, staging and event industry for more than 15 years. He started out in the motion picture industry as a lighting director with Fox Television, Disney, and Paramount Studios working on the “X-Files,” “Battle in Seattle,” “Rumble in the Bronx,” as well as concerts with Chris Isaak and Sarah McLachlan.

Attraction of industry: “In 2008, I sold my lighting company and moved into the event management world with an international nonprofit,” Peters said. “I embraced the industry immediately and pursued the collaboration of technology and meetings as far as I could take it.”

Impact of MPI: “Through (MPI’s) education and involvement opportunities, we’ve been able to go from being an unknown to being an industry leader,” Peters said. “The culmination of our efforts resulted in our winning the 2014 Rising Star Award.”

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AzMPI

Pay to

AzMPI member profile

play

4 1 0 2 I ight DIA E r y M p G o I C ZB A Improving economy creates increasing demand for dynamic off-site events for groups

By MICHAEL GOSSIE

n sports, success can be measured in wins and losses. Increasingly, the same can be said about business meetings and events.

“As our industry strives to meet ever-changing demands on strategic business objectives, the dynamic has shifted to require even more measurable outcomes,” said Cristin Barr, director of national accounts at The Ritz-Carlton, Dove Mountain, and president of the Arizona Sunbelt Chapter of Meeting Professionals International. “This includes what was previously known as meeting attendee ‘free time.’ For many groups, free time has developed into elaborate and organized events that often have an educational or a team-building component.”

Often, Barr said, that requires meetinggoers to strap on their game faces.

“Team-building is an important program component for many of my clients,” Barr said. “Whether the group is geocaching, horseback cattle penning or golfing, the planners hope to provide for attendees a memorable and engaging experience with a splash of competitive fun.”

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While hotels are generally the perfect spot to host business meetings and corporate gatherings, many meeting and event planners have seen a shifting dynamic in the demands for off-site events for groups.

“The groups seem to be looking for more unique, interesting options to keep attendees engaged in the event and each other,” said Angela Prestinario, general manager of Stratum Laser Tag & Event Headquarters in Mesa. “Many of the corporations are looking to incorporate their meeting, training and a teambuilding program into a one-day event.”

More and more convention groups are also looking for options and alternatives to having all their meals in the hotel ballroom.

“Many planners are finding that an effective dining experience enhances their meetings,” said Peggy Traister, director of sales for Rustler’s Rooste in Phoenix.

“Groups are looking for an ideal venue that will generate excitement. They want a venue with a history and culture of the region they are visiting. Dining can be a

Chip Headman

Vice president of sales Williams & Associates Do you ever wonder where all of those trade show bags or where all those pens and jotters for your meetings — also known as swag or chotskies — come from?

Headman had the same question until he became a leader and innovator in that business.

Attraction of industry: “In looking for a good professional group to align my services with, the M&E industry was an obvious choice,” Headman said. “I had no idea I’d end up being associated with so many great people and so many different types of meetings and events.”

Impact of MPI: “The education I’ve received has benefitted my business life as well as my personal life,” Headman said.

“The organizational skills and event management — along with fantastic resources — have all helped me to obtain insight into the needs of the M&E market.”

4 1 0 2 t A I h D g i E r y M p G o I C ZB A

Unforgettable meetings & events, affordable luxury Four Seasons is your local resource for planning events of every size. Talavera and Proof signature restaurants are the ideal venues for memorable events, featuring innovative, chef-driven cuisine, and indoor and outdoor spaces perfect for every occasion. From intimate boardrooms, ideal for retreats, to spacious ballrooms for marquee corporate events, Four Seasons is the perfect spot for all your eventplanning needs.

to learn more, contact Catering Manager Chelsa Christensen at (480)513-5266 or chelsa.christensen@fourseasons.com AB | September-October 2014 91

AzMPI AzMPI member profile

4 1 0 2 t A I h D g i E r y M p G o I C ZB A Christina Tzavellas, CMP

Business and strategy development CTZ and Associates

key element for a successful meeting and is often rated as the most memorable. The goal — using a combination of informative meetings and dining entertainment — is to provide a positive business outcome this year while building enthusiasm and anticipation for the following year.”

The increased expectations for dynamic off-site events have corresponded with the improving economy, which has given many businesses the ability to go big at their corporate gatherings, event experts said.

“The biggest change that we have seen is the amount of money that groups now have to spend on events,” said Chelsey Keller, corporate event and group sales coordinator for Desert Botanical Garden. “They are upgrading their rentals — chairs and linens — and opting for a plated dinner versus buffet dinners. We have also seen more groups choosing to buy out the entire garden.”

Keller said most groups today are looking for a truly unique experience, something that they cannot get anywhere else, especially if they are visiting from another state.

“They want their attendees to remember

Jennifer Castro

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Chelsey KelLer

the event for years to come,” Keller said.

Beyond building memories, experts said the positive energy that is created during off-site events can boost a company’s bottom line.

“The ultimate goal of any off-site event is to create a fun experience that the entire group will enjoy,” said Jennifer Castro, director of event sales at TopGolf in Scottsdale, one of the most unique new venues in the Valley. “Shared experiences enhance relationships among co-workers and with clients.”

Scott Sanders, founder and president of Octane Raceway in Scottsdale, which does more than 1,000 corporate events each year, echoed the importance of off-site team-building events.

“Companies are looking to mix business with pleasure and accomplishing their business objectives at a venue that can provide professional meeting capabilities as well as deliver engaging activities,” Sanders said. “In the end, companies want their employees to feel appreciated and engaged. Their investment in an off-site event helps show their commitment to the employee’s overall job satisfaction.”

Angela Prestinario

Peggy Traister

As a business strategist in meetings, conventions and trade shows, Tzavellas is recognized for developing progressive business tactics. She is acclaimed for creating new, non-traditional business alliances, including an exclusive industry alliance with Celine Dion and Dragone Entertainment Group. She is a 21-year Certified Meeting Professional.

Attraction of industry: “The marriage of business with the art of stimulating the five senses of sight, sound, smell, taste and feel to achieve business goals,” Tzavellas said. “It’s exciting.”

Impact of MPI: “MPI catapulted my career into the international arena,” Tzavellas said, “giving me a global perspective of how much our industry drives local to worldwide economies.”

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AzMPI

Unconventional

venues 4 w 1 0 Arizona offers a variety of interesting alternatives for off-site meetings, conferences and teambuilding events By MICHAEL GOSSIE

2 t A I h D g i E r y M p G o I C ZB A

hether you’re a meetings and event professional or the CEO of a company who is trying to organize a one-of-a-kind event for your employees, it’s time to think outside the hotel box. Arizona offers a variety of non-hotel options for meetings, conferences or off-site events and activities that may have never crossed your mind.

Imagine your company’s next meeting being held behind the wheel of a race car. Why not see who can last the longest on the “Widowmaker,” a mechanical bull? Or instead of spending the day in the office trying to boost your bottom line, what if your entire office was trying to save the lives of the residents of a Caribbean island?

Before you book your next event, here are 20 off-site, offbeat options to consider:

Bob Bondurant School of High Performance Driving

The experience: How fast do you want to go? You’ll be the one driving. For more than four decades, Bondurant has been hosting corporate and group events and team-building exercises that make for a lasting impact on employees or friends.

So buckle up and hold on for the PHOTO BY BOB BONDURANT ride of your life.

START YOUR ENGINES: The Bob Bondurant School Information: bondurant.com of High Performance Driving can customize any

Casino del Sol

program for your group or organization, no matter how big or small.

The experience: In addition to its 18,000-square-foot ballroom that divides into five smaller rooms to allow meeting planners to hold multiple events sideby-side throughout their stay, Casino Del Sol Resort offers its corporate visitors world-class gaming, a Ty Butler- and Notah Begay-designed golf course, scenic hiking trails, mountain bike trails and horseback riding.

Information: casinodelsolresort.com

Challenger Space Center

The experience: During Operation Montserrat, your group will be entrusted to save the lives of the residents of the Caribbean island of Montserrat, home to one of the world’s most active volcanoes. Based on a real life scenario, this team building program will have your group tracking the lava flows of the volcano, estimating the path of a Category 5 hurricane, and devising a plan to get the residents out of harm’s way, while communicating with a command central to make the rescue operation run smoothly.

Information: azchallenger.org

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AzMPI Clubhouse at Tonto Verde

The experience: With two distinctly different and challenging 18-hole golf courses, Tonto Verde is a desert gem with recognition for its charm and playability and views in every direction. Guests may recharge on its 18-hole natural grass putting course, a fun alternative team building event for golfers and non-golfers alike. The facility offers indoor and outdoor event space with customized programs to meet any taste or budget.

Information: tontoverdeweddings.com

Hard Rock Cafe Phoenix

The experience: Sophistication infused with funk, the Hard Rock Cafe offers stellar service and rock star experiences. Day or night there is something to fit every mood and satisfy every impulse. Hard Rock Phoenix specializes in events everyone will be talking about. “Whether you have a group of 15 or 300, we serve it up with a dramatic flair, only reserved for rock royalty,” says Rochelle Barton, sales and marketing manager for Hard Rock Cafe Phoenix. “From breakfast, dinner, after hours or live music events, our staff will be on hand to anticipate and fill every need. Come party like a Rock Star.”

Information: hardrock.com/phoenix

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Desert Belle

The experience: Originally launched in 1964, the Desert Belle has been plowing Arizona’s waters for more than 40 years and allowing passengers to see exotic Arizona wildlife, towering canyon walls, and dramatic desert vistas. The Desert Belle is a unique way to create a memorable office party or meeting.

Information: desertbelle.com

Desert Botanical Garden

The experience: The spectacular surroundings of the Desert Botanical Garden are ideal for unique and beautiful events. From open-air pavilions, scenic courtyards and historic settings, the Garden offers an unforgettable experience for groups of all sizes. With its Southwestern appeal, this enchanting location is the natural choice for your event.

Information: dbg.org

Hot Air Expeditions

The experience: Arizona is known for its beautiful weather, wide open spaces and The Sonoran Desert. When you see it from a hot air balloon, you are experiencing it all. Whether it’s a team building meeting, a wedding in the air or a corporate group, it’s an event that the passengers walk away from remembering for a lifetime and many checking an item off their bucket list.

Information: hotairexpeditions.com

Mesa Convention Center & Mesa Amphitheatre

The experience: Featuring 15 meeting rooms, and a 19,000 sq ft exhibit hall, the Mesa Convention Center offers the largest meeting space in the East Valley. The 5,000 capacity Mesa Amphitheatre is a fun, unique outdoor venue for events, festivals and concerts. The facility also boasts 15 flexible meeting rooms with 19,000 square feet of meeting space and an additional 19,000-square-foot exhibit hall. Hohokam Stadium and Dobson Ranch Golf Course can also be booked with the Convention Center for off-site events and activities.

Information: mesaamp.com or mesaconventioncenter.com

Musical Instrument Museum PHOTO BY DESERT BOTANICAL GARDEN

DESERT EXPERIENCE: Centrally located in the heart of Papago Park, the Desert Botanical Garden is a naturally beautiful setting for special meetings or events.

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The experience: The Musical Instrument Museum offers a stunning and unique setting for events, with world-class service, scrumptious cuisine, magical entertainment, and incomparable musical and cultural exhibits. Displaying more than 15,000

PHOTO BY MUSICAL INSTRUMENT MUSEUM

STRIKING A CHORD: Musical Instrument Museums’s collection of more than 15,000 musical instruments and associated objects includes examples from nearly 200 countries and territories, representing every inhabited continent.

musical instruments and artifacts from around the world, MIM provides a oneof-a-kind event experience for seated dinners, cocktail receptions, corporate meetings and other special events.

Information: mim.org

The Next

BIG

Thing is Here

4 1 0 2 t A I h D g i E r y M p G o I C ZB A DISCOVER ARIZONA’S VOICES OF LEADERSHIP.

PERFECTION

IN EVERY DETAIL

Join us to honor these leaders October 30th, 5:30 - 7:30 pm Montelucia Resort

This is the venue you’ve been searching for: where modern luxury meets laid-back comfort. This is the story of our 148 hotel guest rooms, signature dining, and Tucson’s hottest casino. Plan for compliments.

Because we’re as obsessed with perfection as you are.

Business meetings.

Conventions.

Fairy-tale weddings. Here, your every desire is possible; let’s get planning.

• 11,000 square feet of convention and meeting space • State-of-the-art audio/video equipment • Located minutes from the Tucson International Airport • An experienced staff to handle every detail • Full catering menus prepared by award-winning chefs

CALL TODAY TO PLAN YOUR PERFECT EVENT 520-342-3220.

EXPERIENCE THE POSSIBILITIES.

Call 602.277.6045 for your copy of

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AzMPI

4 1 0 2 t A I h D g i E r y M p G o I C ZB A RUSTLER’S ROOSTE: The legend says the original site, atop a butte in the foothills of South Mountain, was a hideout for cattle rustlers.

PHOTOs Provided

Octane Raceway

The experience: Companies can do a couple races per person with a catered breakfast, lunch or dinner. Off-track activities that can supplement the experience include a rock wall, Phoenix International Raceway Pit Crew Challenge, Segway course and other games. Expect to pay just $30-$60 per person or go all out and do the Octane Olympics for $100 per person.

Information: octaneraceway.com

Rawhide Western Town & Steakhouse

The experience: Rawhide Western Town & Steakhouse is the valley’s premier western venue offering groups a unique journey back in time. Take a ride back in time on Rawhide’s Butterfield Stagecoach to get a real feel of old West transportation in a classic Arizona environment that can host a private event whether you are a group of 10 or 10,000.

Information: rawhide.com

NEED FOR SPEED: Octane Raceway offers a complete, turnkey, out-of-the-box entertainment and meeting destination with kart racing and off-track activities that can accommodate up to 500 people.

Rustler’s Rooste

The experience: Looking for an “authentic” Arizona location for your next roundup, look no further than Rustler’s Rooste. Horney the Bull will meet you at the entrance of the mine shaft, a hostess will greet you with a view of the saloon and the whole Valley, then on to the waterfall walkway over to the tin slide into the main dining room. The Rooste can accommodate 30 to 1500 guests in a spectacular mountain-top setting. Whether you choose a scenic outdoor patio, the spacious Crystal Barn or the novel Branding Iron Room, you will find the Rooste offers a big helping of western hospitality and an eye for detail.

Information: rustlersrooste.com

Stand Up Live

The experience: Is there any better way to create a memorable event than with laughter? Stand Up Live is the perfect venue for private parties, receptions, luncheons or any other special occasion that needs a unique backdrop.

Stand Up Live is available during daytime or nighttime and a comedian from Stand Up Live makes a great addition to any special event.

Information: standuplive.com

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TASTE OF THE WEST: Guests can enjoy Rawhide Western Town & Steakhouse’s authentic western ambiance and on-site amenities with the shows put on by The Arizona Roughriders in the Six Gun Theater.

SEDAN MERCEDES SUV EXECUTIVE VAN LIMOUSINE SPRINTER MINI BUS MOTORCOACH

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AzMPI Stratum Laser Tag

The experience: Stratum specializes in “meetings with a mission;” out-of-the-box programs with an out-of-the-ordinary and affordable setting. Teams will incorporate their meeting message, team-building effectiveness, entertainment, camaraderie and fun along with upscale food and bar packages, all at a lower cost than a hotel and within a unique setting.

Information: stratumhq.com

The Clayton on the Park

4 1 0 2 t A I h D g i E r y M p G o I C ZB A PHOTOs Provided

TAG, YOU’RE IT: Stratum Laser Tag & Event Headquarters offers special events, corporate incentive events and team-building programs that can be hosted at Stratum’s facility or at other off-site locations.

The experience: A hidden jewel located in the heart of downtown Scottsdale, The Clayton on the Park is a full service private event venue which includes the first floor Clayton Room, second floor Gallery and our private outdoor patio. Both floors feature floor-to -ceiling windows with stunning views over the park.

Information: theclaytononthepark.com

The Venue Scottsdale

TEE IT UP: TopGolf is an entertainment complex that merges a driving range, a game of darts and a pub. Guests rent a driving range bay by the hour; each bay includes a lounge-like area where visitors can order food and drinks.

The experience: The Venue Scottsdale is one of those rare event venues that is so flexible that it can transform itself into anything. The Venue Scottsdale can accommodate day meetings, with our built in stage and production or live entertainment. The facility can do team building activities, incredible food stations, formal dinners and The Venue’s retractable roof allows it to offer and indoor/outdoor atmosphere.

Information: thevenuescottsdale.com

TopGolf

The experience: TopGolf is a golf entertainment complex that can be enjoyed by all ages, all skill levels, all year round. It offers events for groups of 12 to 1,200.

TopGolf offers private banquet rooms, A/V equipment, food prepared from scratch, golf lessons, games, music and, of course, top-notch hospitality.

Information: topgolf.com

Wild Horse Pass Hotel & Casino

The experience: With 12,000 square feet of flexible meeting space, Wild Horse Pass offers a great option for memorable meetings, epic events and special celebrations. Its showroom features amazing production possibilities for a general session for up to 1,400 people or a meal for up to 300. The venue also boasts five unique spaces from swanky lounges – including the popular AiRIA Unplugged — to a sports bar.

Information: wingilariver.com

Wrigley Mansion

THE VENUE: The Venue Scottsdale’s spacious, multi-level, newlyrenovated interior is perfect for corporate events that can be elegant, casual, professional or festive.

100 AB | September-October 2014

The experience: The Wrigley Mansion is a breathtaking landmark built in 1932 by chewing gum magnate William Wrigley Jr. as a 50th anniversary gift to his wife. The Wrigley Mansion offers a historical venue that specializes in meetings, conferences and every milestone celebration for a sit-down event for 20 to 300 or a reception-style event for up to 1,500.

Information: wrigleymansionclub.com

Everything you need...

Everything you want

4 1 0 2 t A I h D g i E r y M p G o I C ZB A CLASSIC PARTY RENTALS

3103 E. Broadway Rd. Suite 400, Phoenix, AZ 85040 Phone: 602.232.9900

www.ClassicPartyRentals.com •

Classic Party Rentals Phoenix

*APY=Annual Percentage Yield. APYs accurate as of 1/14/2013 Rates may change after account is opened.

Celebrate the season in style!

Let Talking Stick Resort handle all your holiday party planning needs this season. Our staff of professionals will provide everything you need to make the most memorable affair for you and your guests. With our signature 15th floor views, exceptional cuisine, live entertainment and holiday festivities, Talking Stick Resort is luxury and fun, all in one!

BOOK YOUR HOLIDAY PARTY Call for packages and rates

480•270•5533 1 0 1 & I N D I A N B E N D | S C O T T S D A L E | T A L K I N G S T I C K R E S O R T. C O M Locally owned and caringly operated by the Salt River Pima-Maricopa Indian Community.

9215-1_TSR_HolidayParties_AzBsnsMag.indd 1

8/13/14 1:49 PM

101 AB | September-October 2014

4 1 0 2 t A I h D g i E r y M p G o I C ZB A

THE FLEXIBILITY TEST: CHOOSE A SPACE THAT F EELS LI KE I T WAS DESI GNED FOR YOU.

4 1 0 2 t A I h D g i E r y M p G o I C ZB A Orpheum Theatre

Innovative Cuisine

Executive Conference Center

Executive Meetings. Sophisticated Galas. Unique

Venues. Innovative Cuisine. The Phoenix Convention

Center & Venues are so much more than exhibit halls. But don’t take our word for it. Put us to the test,

and see how the right space can take your event to the next level.

PHOENIXCONVENTIONCENTER.COM | 800-282-4842 |

AB | September-October 2014

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Start Meeting like this...

4 1 0 2 t A I h D g i E r y M p G o I C ZB A

Enjoy a world of luxury at Casino Del Sol Resort, the only AAA Four Diamond and Forbes Travel Guide Four-Star rated casino resort in Arizona.

Arizona’s

most

decorated

casino resort invites you to meet in style and comfort. Enjoy five

incredible

restaurants,

an award-winning Spa, our beautiful casino, or perhaps a concert under the stars at AVA Amphitheater. And now, add golf to your meeting itinerary!

Come stay and play in style at Casino Del Sol Resort in Tucson. Where every day, and

Home of the Arizona Wildcats

night, is extraordinary!

Morefun under the Sun 855.SOL.STAY CASINODELSOLRESORT.COM TUCSON, ARIZONA

I-19, EXIT VALENCIA WEST, 6 MILES

ENTERPRISE

104 AB | September-October 2014

OF

THE

PASCUA

YAQUI

TRIBE