JAN. 2017
Secrets to Success: New Year’s Business Resolutions
Top Thinkers Our Guest Editors speak out on business today Legal: Accountability in
Human Rights Quantifying
Love in Business Are we Failing to Deliver Future Leaders? THIS ISSUE Global Chamber Alliance of Arizona Nonprofits
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JANUARY 2017
COVER STORY
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Top Thinkers
The Valley’s top executives share their wisdom for business as In Business Magazine checks back in with six years of our Guest Editors to hear what they are saying about business today. FEATURES
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Global Businesses and HR Leaders Are Failing to Deliver Future Leaders
Anthony Abbatiello discusses why empowering new leaders may be harder than HR executives thought.
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Leadership in the Era of Digital Disruption
WINTER 2016
Guest Editor
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Feedback
Tom Beyer and Jack Eberenz respond to In Business Magazine’s burning business question of the month.
Global Chamber® Tucson
Thursday, January 19 Global Expansion Tucson’s Modular Mining Systems 4:00pm – 5:30pm MST tucson.globalchamber.org/events Global Chamber® Phoenix
Tuesday, January 25 Magnificent Global Leaders Virtual Event/Webinar 3:00pm MST phoenix.globalchamber.org/events
Grow More Easily
SPOTLIGHT EVENT Global Chamber® Phoenix
by Doug Bruhnke, CEO and Founder of Global Chamber®
Tuesday, January 17th CEO Forum on Funding for Growth Skysong 8:00am – 9:30am Featuring Lee Benson, CEO of Able Aerospace and ETW. phoenix.globalchamber.org/events Global Chamber® Phoenix
Friday, January 27 Global Data Management Lunch ‘n Learn 11:30am – 1:00pm MST phoenix.globalchamber.org/events
Inside this Section
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Global Chamber® Teams with U.S. State Department Global Chamber® and U.S. Trade and Development Agency Stories of Success in Japan Being Smart about Trade and Global Business ‘Globies’ Always Find a Way Global Case Study with Student Entrepreneurs Global Chamber® Virtual Events Help You Connect and Grow!
You want to grow your business, but you can’t be everywhere to do it. You don’t have an unlimited budget — time or money. And so how do you make multi-metro growth more attainable? That’s a problem we’ve been working on for two years. Yes, we’re two years old here at Global Chamber®. My, how time flies! When we started this journey, we had a somewhat vague aspiration to grow to 500 cities around the world. In our first year, we further refined that to a specific goal of 525 metro areas by 2020 and, along the way, 110 metros by the end of 2016. We just hit 115, so we’re on track! As with your business, the challenge to grow is always tempered by the ability to staff and fund. We don’t have unlimited resources, and you don’t, either. And, like you, I’m sure we’ve had things go wrong along the way. For us, first and foremost, was choosing the wrong website technology. That slowed us down for a year. But what doesn’t kill you makes you stronger, and we came roaring back with a Web technology from outside the U.S. that saved us. Here we keep going and growing! You can, too! We’ve read that 85 percent of the business opportunities in the next five years will be outside the US. — 99 percent of them will be outside our metro. Cross-metro and crossborder business isn’t for everyone. But more
companies need to think about it because, increasingly, the opportunity to grow comes from somewhere else. We’ve heard some experts say that companies that aren’t global won’t survive past the next five years. That seems pretty extreme, but why wait to see if it’s true? Change your paradigm and you’ll likely have a better chance to reach 2020 and beyond a lot wealthier and happier. Conversely, we’ve heard that “globalization is dead” as well. Not exactly. Businesses around the world are capturing more and more opportunity every hour and every second of the day. Code and key words don’t change anything … executives will do what’s right for their business. And so, if some U.S. companies think globalization is ending, then companies from another country will take their place. What’s pretty cool is, we’re building out a worldwide system that touches every city, town and company in the world. We’re making it easier for you to grow from here to the metro across the state line or the country border. It’s hard to know what opportunities are the best, the most reliable and the ones that pay. Global Chamber supplies a lot of that information directly and indirectly — through members, connections and collaborators — and then we connect you. Want to grow? Join us! GlobalChamber.org
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Global Chamber
Legal
33
Quantifying Love in Business
Arizona Governor Doug Ducey introduces the “Guest Editors Speak Out” issue.
phoenix.globalchamber.org/events
20
40
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Global Chamber® Events
“Magellan Health Expands,” “Packaging Keeps Med Log,” “It’s All about Meditation” and “U.S. Health Advances — and Declines”
Dushyant Sukhija offers five ways leaders can take charge.
DEPARTMENTS
GLOBAL CHAMBER®
Healthcare
Businesses may be accountable for human rights violations in their supply chain.
Wrapping up his three-part series, Jonathan Cottrell assures business leaders that, although it’s a qualitative factor, love in business generates measurable results.
PARTNER SECTIONS
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11
Briefs
“New Year’s Business Resolutions,” “Luxury Rentals Hot,” “PV Adds Destination,” “Barnone Creates Craftsman Community” and “Matson Money West Opens as Investment Destination”
Books
New releases give fresh insights on business thinking.
34
Nonprofit
Major campaigns are among the most energizing and positive ways to effect change.
42
Assets
2017 Range Rover Sport SE Plus: The case for hand-held protection
44
Power Lunch
The Vig Plus: Stand-out pizzas
64
Roundtable
The ethical choice is less about codified law than about inspiration — are we really masters of our own decisions and can our own small act, at the right time, really change the world?
WINTER 2017
UNITING, STRENGTHENING, AND ADVANCING ARIZONA’S NONPROFIT SECTOR. ARIZONANONPROFITS.ORG
The Alliance of Arizona Nonprofits is an action-oriented group of partners across Arizona — both nonprofits and those in the community who support them — dedicated to uniting, strengthening and advancing Arizona’s nonprofit sector. The Alliance envisions an Arizona where all nonprofits are valued, empowered and thriving.
CONTENTS p. 2
Boardmembers Should Be Fundraisers
p. 3
On the Board and In the Spotlight
p. 4
Minimum Wage Increase Impacts Nonprofits
p. 5
The Nonprofit/For-Profit Connection: Big Brothers Big Sisters of Central Arizona and APS
p. 6
New Way to Connect with Alliance Members How Businesses Can Support Arizona Gives Day
p. 7
Benefits of Working with Nonprofits
p. 8
Arizona Nonprofits: Economic Power, Positive Impact
Don’t Put Charitable Giving on Your New Year’s Resolution List by Kristen Merrifield, CAE, Chief Executive Officer, Alliance of Arizona Nonprofits Gasp … Did I really just tell you to not put giving on your list of resolutions? Yes, indeed, I did. But why? New Year’s resolutions are a great way to inspire, nay force, yourself to do something good to improve yourself or those around you. Lose ten pounds, complain less, read a book a month, save more … give more. And yet, many of us find ourselves back to our same old habits by the end of January. The statistics are bleak: Only 8 percent of people who make New Year’s resolutions stick to them. In fact, if you want to start going to the gym, start on February 1 and you won’t have to fight anyone over the treadmill closest to the TV. While resolutions are, normally, rooted in the desire to do good for yourself or others, the practice itself may not be the best structure to truly make a change. While it’s easy to flip the page on your calendar and change from December to January, it may be unrealistic to simply “flip the switch” and become a different person. Instead, there may be some planning involved, some education needed, and some stepping stones put in place in order to really be most successful. This was indeed the case when I lost 50 pounds a few years ago. This wasn’t a New Year’s resolution success story; in fact, I had made the resolution many times over and never reached this goal. I actually started in March, and I began with the very small baby step of drinking two bottles of water every morning for three weeks. You may have often heard that it takes 21 days to create a habit, and I put that theory into practice, making another small change every three weeks. The idea was to build good habits over time, not to simply stop doing something one day and start doing something else the next. This holds true when we talk about charitable giving and the bigger idea of philanthropy itself. You may not consider yourself a philanthropist unless you have the ability to write a million-dollar check. But philanthropy, at its root, means having “the desire to promote the welfare of others.” When we engage in charitable giving, in any way or amount, we are building the spirit of philanthropy within ourselves and our community. But it doesn’t happen overnight. Instead of simply adding “giving more” to our list of resolutions, we can start with small steps over time to become a philanthropist in our own unique way and make an impact on causes that mean the most to us. The Alliance can help you find ways to meaningfully connect with nonprofits in Arizona throughout the year. Visit our website and click on the Connect with the Sector tab to learn more, or check out the article in this section. Finally, save the date for Arizona Gives Day coming up on April 4, 2017.
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By the Numbers
Omni-channel engagement is trending for 2017 as aggregating data is seen as key to tapping into tremendous potential.
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Alliance of Arizona Nonprofits
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Technology
“Custom Tailoring Online,” “Driving Blind,” “Diamonds — Made in America” and “Vacation Rental Platform for Sports Fans”
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ON THE AGENDA
37
Spotlight
Expert HR Series — Scottsdale Area Chamber of Commerce U.S. Export Controls Seminar — Bureau of Industry and Security
38
Calendar
Business events throughout the Valley
“Last year’s flurry of economic expansions in Arizona is a clear sign to the rest of the country that we’re looking forward while other states are still looking backward — and, only months away from hosting Spring Training and the NCAA Final Four, we’ll have plenty of opportunities to keep showcasing all we have to offer.” —Governor Doug Ducey, Guest Editor Letter (page 9)
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January 2017 In Business Magazine is a collaboration of many business organizations and entities throughout the metropolitan Phoenix area and Arizona. Our mission is to inform and energize business in this community by communicating content that will build business and enrich the economic picture for all of us vested in commerce.
PARTNER ORGANIZATIONS Kristen Merrifield, CEO Alliance of Arizona Nonprofits (602) 279-2966 www.arizonanonprofits.org Jack Lunsford, Interim CEO Arizona Small Business Association Central Office (602) 306-4000 Southern Arizona (520) 327-0222 www.asba.com Steven G. Zylstra, President & CEO Arizona Technology Council One Renaissance Square (602) 343-8324 www.aztechcouncil.org Doug Bruhnke, Founder & President Global Chamber® (480) 595-5000 www.globalchamber.org Phaedra Earhart, President NAWBO Phoenix Metro Chapter (480) 289-5768 www.nawbophx.org
Read conference calls in real time.
Anne Gill, President & CEO Tempe Chamber of Commerce (480) 967-7891 www.tempechamber.org Our Partner Organizations are vested business organizations focused on building and improving business in the Valley or throughout Arizona. As Partners, each will receive three insert publications each year to showcase all that they are doing for business and businesspeople within our community. We encourage you to join these and other organizations to better your business opportunities. The members of these and other Associate Partner Organizations receive a subscription to In Business Magazine each month. For more information on becoming an Associate Partner, please contact our publisher at info@inbusinessmag.com.
ASSOCIATE PARTNERS Ahwatukee Foothills Chamber of Commerce ahwatukeechamber.com Arizona Chamber of Commerce & Industry azchamber.com Arizona Hispanic Chamber of Commerce azhcc.com The Black Chamber of Arizona phoenixblackchamber.com Chandler Chamber of Commerce chandlerchamber.com
Now, Deaf and hard of hearing participants can be actively involved in multi-party calls. Relay Conference Captioning (RCC) is free to Arizonans, streaming live text to any Internet-connected computer, tablet or mobile device worldwide.
Economic Club of Phoenix econclubphx.org Glendale Chamber of Commerce glendaleazchamber.org Greater Phoenix Chamber of Commerce phoenixchamber.com Greater Phoenix Gay & Lesbian Chamber of Commerce gpglcc.org Mesa Chamber of Commerce mesachamber.org North Phoenix Chamber of Commerce northphoenixchamber.com Peoria Chamber of Commerce peoriachamber.com Phoenix Metro Chamber of Commerce phoenixmetrochamber.com
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I N FAMI LY BUSI N ESS, FAMI LY ALWAYS COMES BEFORE BUSI N ESS.
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January 2017
FENNEMORECRAIG.COM
VOL. 8, NO. 1
LAW THAT LEADS®
Publisher Rick McCartney
Editor RaeAnne Marsh
Art Director Benjamin Little
COVERS MORE GROUND
Contributing Writers Anthony Abbatiello
Jonathan Cottrell
REAL ESTATE ATTORNEYS AT FENNEMORE CRAIG are a part of one of the largest Real Estate practice groups in the Mountain West, which encompasses all aspects of real estate, from acquisition and finance, through development, leasing and sale. Our attorneys have significant experience in:
Gregory Hawkins Mike Hunter Lonn Litchfield Ajitav Mick Misra
• Commercial, Retail & Industrial Projects • Commercial Property Leasing • Health Care Real Estate • Production Home Builders • Joint Ventures & Syndications
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Property Tax Real Estate Finance Real Estate & Lease Litigation Workouts & Restructurings Land Use Planning & Zoning Master-Planned Communities
For more information about Fennemore Craig, visit FennemoreCraig.com or contact Joe Chandler, Real Estate Practice Group Chair, at 602.916.5403 or jchandler@fclaw.com.
William Schiemann, Ph.D. Dushyant Sukhija Richard Tollefson ADVERTISING
Operations Louise Ferrari
Business Development Louise Ferrari
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Events Amy Corben
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Accounting Manager Todd Juhl Corporate Offices 4455 E. Camelback Road Building C, Suite 135 Phoenix, AZ 85018 T: (480) 588-9505 F: (480) 584-3751 info@inmediacompany.com www.inmediacompany.com Vol. 8, No. 1. In Business Magazine is published 12 times per year by InMedia Company. POSTMASTER: Send address changes to InMedia Company, 4455 E. Camelback Road, Building C, Suite 135, Phoenix, AZ 85018. To subscribe to In Business Magazine, please send check or money order for one-year subscription of $24.95 to InMedia Company, 4455 E. Camelback Road, Building C, Suite 135, Phoenix, AZ 85018 or visit inbusinessmag.com. We appreciate your editorial submissions, news and photos for review by our editorial staff. You June send to editor@inbusinessmag.com or mail to the address above. All letters sent to In Business Magazine will be treated as unconditionally assigned for publication, copyright purposes and use in any publication, website or brochure. InMedia accepts no responsibility for unsolicited manuscripts, photographs or other artwork. Submissions will not be returned unless accompanied by a self-addressed, stamped envelope. InMedia Company, LLC reserves the right to refuse certain advertising and is not liable for advertisers’ claims and/or errors. The opinions expressed herein are exclusively those of the writers and do not necessarily reflect the position of InMedia. InMedia Company considers its sources reliable and verifies as much data as possible, although reporting inaccuracies can occur; consequently, readers using this information do so at their own risk. Each business opportunity and/or investment inherently contains certain risks, and it is suggested that the prospective investors consult their attorney and/ or financial professional. © 2017 InMedia Company, LLC. All rights reserved. No part of this magazine June be reproduced or transmitted in any form or by any means without written permission by the publisher.
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DOUG DUCEY, GOVERNOR, THE STATE OF ARIZONA
Into the New Year
Doug Ducey is the 23rd governor of Arizona. He previously served as state treasurer and was the chief executive officer of Cold Stone Creamery, growing the company from a few local Arizona stores into a worldwide brand.
The start of a new year is traditionally the time we step back — if only for a moment — from our daily routines to take stock of where we are heading and what opportunities the new year may hold in store. Arizonans have a lot to look forward to in 2017 — and the credit goes to our business owners, entrepreneurs and their hard-working employees making it clear that our state is the place to be. Uber’s recent announcement that the company will be moving its self-driving vehicle program to Arizona is a reflection of how open our state is to new, exciting ideas and business models. Uber isn’t by any means the first company to see our state’s bright future, and it won’t be the last. Last year’s flurry of economic expansions in Arizona is a clear sign to the rest of the country that we’re looking forward while other states are still looking backward — and, only months away from hosting Spring Training and the NCAA Final Four, we’ll have plenty of opportunities to keep showcasing all we have to offer. Helping the business community keep informed about economic trends and functional issues that impact both day-to-day and long-term operations has been the mission of In Business Magazine from its inception. To that end, the staff makes a point of inviting a business or community leader well-grounded in the cover story topic to be the Guest Editor of the monthly edition. That roster is comprised of a truly illustrious list of leaders — many of whom have once again shared their perspective on their industry and the current economy to give us the cover story for 2017’s inaugural issue. To help businesses step into the year on the right foot, the Briefs pages start with an article presenting business resolutions for company success. Two “Leadership” articles examine leadership in the era of digital disruption and how building a context for leader growth improves both business and talent outcomes. Nonprofits — treated by In Business Magazine as businesses separate from their social mission — are a regular focus. This month’s article looks at the transformational power of a major campaign. This month’s Roundtable expands the usual single-page feature to three pages as it explores ethics from different angles and offers a mind-opening view of what inspires and motivates the ethical choice. Its diverse content covering business activity, healthcare, technology and even where to enjoy that “Power Lunch” continues to make In Business Magazine a reliable resource for the Greater Phoenix business community. I’m pleased to join the roster of Guest Editors. I hope you enjoy this issue, and wish you a prosperous new year. Sincerely,
Doug Ducey Governor The State of Arizona
CONNECT WITH US: Story Ideas/PR: editor@ inbusinessmag.com
Experts Sound Off In every issue of In Business Magazine since our inception in
companies to connect, inform and elevate the overall business
November 2010, we have sought the leadership and advice from the
community and drive success. We say we are “the magazine for
Valley’s top businesspeople by asking them to be our Guest Editor
business success,” and we take that very seriously. As we move
for one of our issues. We are 72 Guest Editors strong after more than
into 2017, we want to thank all the amazing guest editors who
six years of publication. In this issue, we decided to check back in
have shaped In Business Magazine and inbusinessmag.com,
with many of them and expand our cover story to hear what they are
and welcome your feedback and comments on what we can be
saying about business today.
doing to better inform and represent our local market.
The idea of collaboration is what created this magazine when we
—Rick McCartney, Publisher
began. Our concept is to work with the local business groups and
Let us know what you think of this issue of In Business Magazine. Email our publisher at feedback@inbusinessmag.com.
Business Events/ Connections: businessevents@ inbusinessmag.com Marketing/Exposure: advertise@ inbusinessmag.com Visit us online at www.inbusinessmag.com
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VALLEY LEADERS SOUND OFF
BRING YOUR TEAM LEADERSHIP IS ENGAGEMENT LEADERSHIP IS TEAM BUILDING LEADERSHIP IS INNOVATIVE LEADERSHIP IS EMPOWERING LEADERSHIP IS INFORMING LEADERSHIP IS FOCUSED LEADERSHIP IS INSPIRING LEADERSHIP IS MAKING A DIFFERENCE LEADERSHIP IS FAST PITCH!
BE A LEADER. Team tickets available for SVPAZ Fast Pitch. March 28, 2017 Scottsdale Center for the Performing Arts 10 tickets for $650 available at svpaz.org/arizona/fast-pitch Includes a one hour SVPAZ training for your team. #svpfastpitch
svpaz.org/arizona/fast-pitch 602.224.0041 • info@svpaz.org
is a lesson learned from 2016 that you anticipate using to Q: What your business’s benefit in 2017?
TOM BEYER
JACK EBERENZ
President and CEO Beyer Management Consulting, Inc. Sector: Management Consulting
Chairman of the Board Precision Door Service Sector: Home Repair
Strategically, the “total product solution” must be a primary part of the planning process. Total solution is more than the features and benefits of a product or service. Total solution includes the entire process. For example, if a person buys a home, the total solution includes the entire purchase experience. The search, offer and counter offer, financing, inspection, appraisal, walk through, renegotiation, HOA, taxes signing, closing, and moving are all sub processes within the entire experience. The company that wins is the one that aligns all the sub-processes to deliver the best experience for the customer, regardless of where they make their money in the process. A willingness to accept this view and utilize technology to bring everyone together will create the winners of tomorrow. The lesson: All revenue planning should begin with the question, “What is the end game for the customer and therefore what is the total product/service solution?”
Strategic relationships with capital sources, political and national business contacts will be even more important in 2017. Franchising has been a vital growing part of the U.S. economy for many years, but government interference in labor issues from unionizing to minimum wage are straining the resources of franchise companies. Franchising is the chance for many people to reach the American dream through business ownership. As leaders in this business-generating system, we need to step forward politically and with a strong business voice to make sure people understand the value that 14 percent of the private sector economy contributes to protect the future for thousands of business owners and their employees.
Beyer Management Consulting, Inc. beyerconsulting.com Since 1988, Beyer Management Consulting, Inc. has been advising senior management of companies, lenders and private investors on strategies, establishing revenue models and the application of corresponding tactics resulting in sustainable profits and long-term value creation for all stakeholders.
JAN. 20 1 7
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Franchise Integration franway.com Jack Eberenz is a nationally known business consultant concentrating in multi-unit growth. He is chairman of the board of Precision Door Service (www.precisiondoor.net) and has more than 40 years of business consulting experience. He is often identified by his tag line “If someone says, ‘Franchising,’ you say, ‘Call Jack.’”
Sign up for the monthly In Business Magazine eNewsletter at www.inbusinessmag.com. Look for survey questions and other research on our business community.
QUICK AND TO THE POINT
New Year’s Business Resolutions It’s that time of year again for business owners to think about change, improvement and new achievements for their company in 2017. We know from research that 92 percent of New Year’s resolutions fail, but rather than say, “Why bother?” try going about those resolutions in a more effective way. The following “secrets to success” are culled from more than three decades studying and working with successful companies. 1. Set a baseline. Leaders should spend time with their team to reflect on its past accomplishments. The new year is a perfect time to take stock of where one is and where one wants to go as an organization at any level — the entire company, a department or a team. Creating a list of accomplishments for 2016 is a good starting place. Even if one’s unit is doing routine work such as processing payroll, it can celebrate on-time performance or accuracy. It requires work to do those things well. Other departments can celebrate new sales, products, processes or customers. 2. Reaffirm one’s vision and mission. Today’s workforce, especially millennials, wants to be a part of an organization that makes a difference. If a business has not translated its purpose and mission into terms that employees can rally around, it’s worth taking a day to work through this; even better is building or updating a compelling story with teams of employees from different functions, levels and locations. This will produce a rallying cry that everyone understands and buys into. 3. Help one’s employees reflect. Have employees spend some introspective time reflecting on their life goals and the role of their work in that. This may sound soft and squishy, but it is not. Achieving fulfillment in life is important to nearly every person we interviewed recently in our research. It can be helpful to offer them resources to help that thinking — books, training, a webinar or a mentor. Fulfilled employees are far more productive because they are more aligned, capable and engaged with the organization; unfulfilled people either leave or stay in a way that is debilitating for others. 4. Set realistic and stretch goals that will energize people. The realistic targets should be ones in which there
is reasonable confidence of accomplishing. It’s best to break those up into smaller milestones that will allow one to celebrate accomplishments throughout the year. The stretch targets create a bit of risk and challenge, which, as we learned from our research, create greater fulfillment for people. Most of the highly fulfilled people in our study reflected back to times along the way in which they took risks and had some of their best learnings in life. 5. Measure, measure, measure. Vague goals never really generate much momentum. A long history of psychological research tells us that goals which are specific and measurable are the most motivating and likely to be accomplished. Nearly everything at work, even softer things like employee engagement or customer loyalty, can be measured. If it’s worth doing, it’s worth measuring. Those who don’t know how to set up measurements can ask their HR or quality department or bring in outside resources. 6. Feedback. Performance feedback is critical in enabling people to make course corrections in pursuit of goals. Without good feedback, we are often distracted by competing demands. Today, this is a big issue with the constant bombardment of information and many alternatives competing for our time. Timely, frequent feedback from a respected source — a measure, customers or a supervisor — will provide that extra momentum boost to reach those resolutions which otherwise will go unfinished. 7. Accountability. While most of us take responsibility for actions leading to those agreed-upon goals, stuff happens. It helps to have rewards tied to the accomplishment of goals. Stretch goals should be rewarded handsomely. Rewards are the last element that will provide the finishing touches to keep your resolutions on track. And a final note: It pays to jump on these early in the year while there is plenty of time to launch new plans and goals. Remember, it will be impossible to accomplish stretch goals by doing the same thing as what’s been done before. Innovating and taking new approaches will set a business up for success in 2017. —William A. Schiemann, Ph.D.
In its recent “Voice of the Workplace” survey, Waggl — a technology platform that enables organizations to crowdsource feedback — found only one-third of business and HR leaders feel their current training programs are meeting their development needs. waggl.com
William A. Schiemann, Ph.D., is CEO of Metrus Group. He is a thought leader in human resources, employee engagement and fulfillment, and author of Fulfilled! Critical Choices – Work, Home, Life. metrus.com wschiemann.com
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QUICK AND TO THE POINT
GET REAL
Luxury Rentals Hot The City of Phoenix was one of the 75 largest U.S. cities included in a market report from RENTCafé that tracks apartment rental rates. It clocked a 7.3 percent growth rate, which placed it No. 12 on the cities with the fastestgrowing rents. Mesa topped that, with its 9.7 percent rent increase making it the fourth-fastest-growing. Renting has become increasingly favored over home-ownership among millennials and baby boomers, and the report goes on to say, “The changing dynamics of the housing sector has created a market for luxury housing and it surely isn’t lacking in demand. Renting has become the hip thing to do, even at the highest income levels.” In fact, the number of renter households who earn more than $150,000 per year more than tripled over the last decade, jumping from 551,000 in 2005 to more than 1.75 million in 2015, according to the latest Census data. And rental prices followed suit; the average rent for a high-end apartment is now $1,408, up 3.9 percent year-over-year. Manhattan and San Francisco boast the highest monthly rents, at $4,165 and $3,399, respectively. rentcafe.com
PV Adds Destination The overwhelmingly residential community of Paradise Valley will soon offer a new resort, Mountain Shadows. Completely rebuilt from the ground up by Westroc Hospitality and Woodbine Development, Mountain Shadows will feature 183 modern guest rooms, including a presidential suite facing Camelback Mountain. An additional wing with 42 resort condominiums and suites will open in fall 2017. Guests can enjoy a full-service restaurant, two pools, a hightech fitness facility, a juice bar, an 18-hole golf and lounge and a boutique featuring local goods. It will also serve the business community with 37,500 square feet of indoor and outdoor event space split between 12,500 square feet of bright indoor space and 25,000 square feet of scenic outdoor space. It will accommodate events for up to 500 people, from upscale corporate retreats to picturesque weddings. Meeting spaces will include two modern ballrooms, three meeting rooms, two fully appointed boardrooms and five scenic outdoor spaces. The 10,000-squarefoot putting green is a unique space for receptions and events, while the centerpiece of the resort will be the 4,000-square-foot Camelback Overlook event deck
Barnone Creates Craftsman Community Gilbert’s Agritopia community has a new retail component. Barnone, housed in a remodeled 1950s Quonset hut that formerly served as a barn for the farm, has been sectioned to spaces for local craftsmen and restaurateurs, and opened to the public last November. In keeping with the spirit with which the Johnston family founded Agritopia to preserve the agricultural and village life within the growing urbanization surrounding their land, Joe Johnston invited only true craftsmen to participate in Barnone. Shops include florist Everybody Loves Flowers, printing company Prickly Pear Paper — which displays in its front window the letterpress that owners Mark Johnston and Lauren Elliott use to make their handmade paper products — and Letter Craft, which offers lasercut wood gifts and home décor. With a beauty salon and high-end gunsmith of custom firearms also in the mix, three restaurants onsite are a pizzeria, taproom for local craft beer brewery
12West Brewing, and The Uprooted Kitchen — which brings it all full circle. The Barnone location for The Uprooted Kitchen is the first standing location for the popular food truck operated by Erin and Chad Romanoff, and Chad notes much of the produce for their menu comes from the Agritopia fields. —RaeAnne Marsh Barnone barnoneaz.com
Matson Money West Opens as Investment Destination Registered investment advisory firm Matson Money, which moved to Scottsdale two years ago, is putting a touch of the tourism industry to its presence here. “When determining where to open our new facility, we were looking for a location that offered the best of climate, entertainment, and amenities for our visiting guests,” says Michelle Matson, author of Rich Chick and vice president of marketing at Matson Money. “Our goal was to create an ‘investing destination’ for financial advisers, clients and guests where we could share the amazing power of capitalism, free markets and structured investing that would encourage people to stay and enjoy all the exciting features the location has to offer.” Its own office expands on that attitude, with two pieces of the Berlin Wall — which symbolize capitalism — and a Free Market Museum for investors to visit. That investing destination was realized a few months ago when the company held a grand opening of its 50,000-square-foot “Matson Money West.” Attracting advisors to visit the new headquarters is expected to help spur local economic activity. “Hundreds of advisers
and investors from all over the country visit our Scottsdale office each year, and our guests have really enjoyed all of the wonderful options that Phoenix and Scottsdale have to offer,” Matson notes. “We are excited to be a part of the growing financial community here in greater Phoenix and look forward to bringing a fresh perspective to financial services,” says Matson, who was part of the contingent that included 20 employees and their families who moved with the company from Mason, Ohio. Sharing, “The community has been very welcoming to us and we are thrilled to be a part of it,” Matson describes the company’s experience with local businesses — from construction and maintenance companies to caterers, florists, hotels and restaurants — as “fantastic.” Matson Money manages more than $6.6 billion for investors nationwide. It has hired 10 new local employees since relocating here, and reports that it plans to aggressively add to its headcount over the next few years. —RaeAnne Marsh Matson Money matsonmoney.com
with a built-in bar. mountainshadows.com
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Axiometrics reported in December that it found Phoenix remained one of the strongest apartment markets in the country through November. However, tapering job and population growth will moderate that boom in 2017 (though strength should still remain). axiometrics.com
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METRICS & MEASUREMENTS
Omni-Channel Engagement Trending for 2017
Aggregating data seen as key to tapping into tremendous potential
According to marketers, the top areas for budget allocation will surround specific campaign drivers. The top ones named by in the CMO Council’s Connected Interaction to Power Brand Attraction study are: Content marketing development and deployment: 59% Matric and analytics to measure campaign performance: 48% Social media (advertising and engagement campaigns): 47% Data management (including data cleansing, aggregation and collection): 39% Digital advertising (including retargeting, asset management and placement): 33% cmocouncil.org
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Changing Engagement How has the shift to digital experiences most changed how your organization engages with customers and prospects? Altered content strategies and heightened the need for more types and formats of content: 60% Heightened the need for aggregated data that is pulled from across the entire company: 44% Revealed cracks in organizations’ systems as data is difficult to aggregate and centralize for a clear view of the customer: 43% Tuned the organizations’ customer engagement into a 24/7 opportunity to connect with customers: 38% Made managing how and where customers want to engage, learn and transact incredibly complex and difficult to keep up with: 33% Lowered costs and improved the impact of organizations’ marketing investments: 29% Accelerated the sales cycle, moving organizations’ prospects quickly from first inquiry to qualified lead and opportunity: 17% Created silos across the organization that unintentionally segment traditional, in-person and digital experiences: 11%
changed where, how and when customers are choosing to engage and transact coupled with a shift in business behavior that has fundamentally changed where, how and when organizations are connected both internally and externally.” Recognizing that the shift to digital experiences has invigorated customer engagements, the report explores the many ways digital transformation has impacted marketing and the organization’s ability to grow and profit from expanded relationships with customers. “Savvy CMOs don’t see digital as a destination for transformation but instead see the digital experience as a constantly moving evolution for both engagements and operations,” notes Liz Miller, senior vice president of marketing for the CMO Council. “The year ahead will represent a real turning point in the customer experience as marketers plan to turn their sights toward connecting, streamlining and measuring the entire journey.” Among the challenges iterated by those surveyed, though, is a need for aggregated data that is pulled from across the entire organization; a full 43 percent of marketers say digital has revealed cracks in systems as data is difficult to aggregate and centralize for a clear view of the customer. Chief Marketing Officer Council cmocouncil.org
Top Digital Experience Goals for the Coming Year Better connect campaigns into a comprehensive, connected experience that drives engagement throughout the engagement lifecycle: 42% Tie the entire customer experience journey together across both physical and digital engagements: 37% Bring on additional resources and technologies to better manage data, initiatives and experience automation: 29% Establish a company-wide initiative around optimizing customer experience through all touchpoints and channels: 28% Re-focus attention on digital experience as a loyalty and advocacy driver, not just an acquisition engine: 26% Engage in more two-way experiences with customers, engaging in real time in a highly personalized manner: 25% Re-think channels that are failing to engage customers in ways that are meaningful for the customer and for the business: 23% Advance the organization’s capabilities in advanced analytics, including predictive analytics and real-time learning: 23% Ensure that data, analytics and customer intelligence programs are not limited to marketing, but embraced across the organization to influence everything from product to pricing: 22% Develop a comprehensive digital experience map that reaches outside of marketing to catalog all customer touchpoints, including those owned by channels, resellers and partners: 17%
Nearly half of marketers (49 percent) reported their organization’s alignment of physical experiences (including traditional media experiences) with digital ones to be selective, with some remaining totally disconnected, in the recently released Connected Interaction to Power Brand Attraction report from the CMO Council. cmocouncil.org
Source: cmocouncil.org/authority-leadership/reports/318
BUDGETING FOR THE SOLUTION
Online-offline connected experiences will be the focus in 2017 as chief marketers, largely not satisfied with the current state of omni-channel engagement, work toward bridging that disconnect. According to a recently released study from the Chief Marketing Officer Council, one of the biggest challenges for marketers in 2017 will be understanding the connected customer journey across all touchpoints and how best to interact on a more personal, content-rich level. Connected Interaction to Power Brand Attraction reports that, while digital engagement continues to grow and dominate the customer experience, marketers believe there’s a long way to go to deliver on the big promise of true omni-channel alignment across both digital and physical worlds. Of the marketers surveyed, 38 percent feel that digital strategies have delivered mixed results to date. This is especially the case when it comes to bridging the physical and digital customer experiences — 49 percent of marketers stated that alignment between physical and digital is selective at best, with some ties between the two being made while many remain totally disconnected. Noting that “an organization can’t ‘reach’ digital as an end point of a project,” the report explains, “There is no digital finish line, where the work is suddenly done and marketers can sit back and marvel at the transformation. The shift to digital is two-fold: a shift in buyer behavior that has fundamentally
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INNOVATIONS FOR BUSINESS
TECH NOTES
by Mike Hunter
Custom Tailoring Online Custom tailoring has gone beyond the province of brick-and-mortar to the global world of e-commerce. London-based Santamaria Shirt Makers adds an innovative advance that enables consumers to convincingly explore the virtual representation. The technology enables the online consumer to customize his design through the world’s only photorealistic, fully 3-D shirt customizer. It uses specialized photography to mirror shirt components incredibly closely and even display how fabrics would appear where the material naturally folds when a shirt is worn. The image is responsive to the cursor, providing the customer with a full 360-degree view and unlimited zoom, as opposed to merely a few preselected views. santamariashirtmakers.com
Driving Blind? Test-driven on Austin’s public streets last October by a blind man, self-driving cars are becoming reality. The new company Waymo (the name stands for a new way forward in mobility) purchased a physical warehouse in Chandler and has been testing its cars on the streets of Chandler, Ahwatukee and Tempe since April. Previously known as the Google selfdriving car project, it has been testing in the Phoenix area since April 2016. waymo.com
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Diamonds — Made in America Disruption in the diamond industry? You betcha! Spence Diamonds brings to retail an innovative offering that pairs a fun, friendly, transparent and educational experience with a breakthrough product: Spence Artisan Created Diamonds™. “After decades of development, scientists have replicated the diamond creation process of applying temperature and pressure to carbon that created diamonds in the Earth’s mantle layer,” says Eric Lindberg, president. The process takes place in a titanium reactor in which a ball of plasma heats carbon atoms to create new diamonds over a six- to twelve-week process; in fact, guests at the store will be able to watch a diamond being created from that ball of plasma. Noting this is not 3-D printing, Lindberg explains, “These new diamonds are physically identical to those mined from the Earth, except for their source and age.” Spence’s Artisan Created Diamonds offer a better diamond for an equivalently priced earth-mined diamond. Says Lindberg, “Shoppers looking for one- to two-carat diamonds will generally find they can afford a 30- to 100-percent larger Artisan Created Diamond at the same price” — and this holds true also for previously exotic stones like vivid pink and yellow
diamonds. “And,” he adds, “our Artisan Created Diamonds are ecologically friendly, ethically pristine, and most are made in America.” The local store will open in February at Scottsdale Quarter as one of the Canadian-based company’s first U.S. stores. “When we assessed U.S.A. markets for our launch, Scottsdale and Phoenix were at the top of our list because of the very sophisticated consumer market and wide embrace of technology here,” says Lindberg. Spence stores carry both Artisan Created Diamonds and traditional mined diamonds, allowing customers to learn about and choose between traditional stones and the new Artisan Created Diamonds. —RaeAnne Marsh Spence Diamonds spencediamonds.com
Vacation Rental Platform for Sports Fans Using technology to tie together vacation rentals and major sporting events, Mike Doyle expanded what was initially conceived around the idea of weekend apartment rentals for visiting college football fans and leads Rent Like A Champion as the company expands to the Avondale area for the 2017 NASCAR season. In fact, he says, “Our business is entirely technology-based. We connect homeowners near big sporting events (mainly PGA tournaments, NASCAR races and college football stadiums) with traveling sports fans.” Explaining the company uses technology to help facilitate a home rental between those two parties, he says the website handles all the logistics, such as payments, insurance, contracts and security deposits. But the online business adds a concierge level of customer support in working with interested homeowners. Doyle notes Rent Like A Champion has been successful by focusing on event-based home rental, namely those surrounding big sporting events, and observes, “There is no shortage of big-time sporting events in the Greater Phoenix
Who’s behind the wheel? December saw Uber also choosing Phoenix — at Governor Ducey’s invitation — to test its self-driving cars.
area — the Phoenix Open, NASCAR, ASU football, Spring Training and more. We have been getting inundated with requests from travelers looking to book in the area, and decided the time was right to launch the market.” The company fosters synergy with other local businesses, says Doyle. “Partnerships have been key to our success around the country. We have partnered with event organizers (including official partnerships with six PGA Tournament events), services that our guests will want access to (parking, tailgating services and more), as well as local landmarks that our guests should check out.” —RaeAnne Marsh Rent Like A Champion rentlikeachampion.com
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The Waste Management Phoenix Open is a golf tournament like no other. Huge crowds. Enthusiastic fans. Exciting golf. It’s truly The People’s Open.
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J a n u a r y 3 0 – F e b r u a r y 5, 2 017 | T P C S c o t t s d a l e | W M P H O E N I XO P E N .C O M
YOUR BENEFIT IN BUSINESS
WELL WELL WELL
by Mike Hunter
Magellan Health Expands Magellan Health, Inc. has entered into an agreement to acquire Veridicus Holdings, LLC, a privately held pharmacy benefit management (PBM) organization with a unique set of clinical services and capabilities. Veridicus’ differentiated approach to pharmacy management leverages proprietary analytics and clinical software that integrates pharmacy, medical and lab data to drive targeted interventions resulting in better health outcomes and lower costs for complex patient populations. In addition, Veridicus owns and operates a fully licensed insurance company which is contracted with the Centers for Medicare and Medicaid Services and serves members enrolled in the Medicare Part D Employer Group Waiver Plan program. “This acquisition will build upon Magellan Rx Management’s clinically oriented approach to PBM (pharmacy benefit management) services with additional capabilities that further amplify our laser focus on improving quality of care and outcomes for the patients we serve, while reining in overall costs for payers,” says Mostafa Kamal, chief executive officer of Magellan Rx Management. magellanhealth.com
Packaging Keeps Med Log TimerCap LLC is a leading innovator of easy and effective medication compliance packaging solutions to address poor medication adherence. TimerCap makes it simple to stay on top of medication schedules by replacing traditional prescription vial caps with a reusable simple cap incorporating a built-in digital timer. Working with Medisafe, a leading personalized medication management platform, TimerCap offers its iConnect line, a new Bluetooth-connected product line that includes iCap and iSort, which are connected compliance devices that store and record medication consumption, allow relevant reminders, and provide alerts to authorized loved ones and caregivers. The iCap can also alert a user and a caregiver if the cap is opened at the incorrect time, which can help prevent incorrect dosing and accidental overdoses. Citing Facing Addiction in America: The Surgeon General’s Report on Alcohol, Drugs, and Health, Philip Sugarman, TimerCap’s director of public relations, notes that nearly 21 million Americans struggle with substance addictions and one dies every 19 minutes from an opioid or heroin overdose. One of the biggest causes of opioid addiction is incorrect dosing — only 50 percent of patients take their medications as directed, with the main culprit being forgetfulness. medisafe.com timercap.com
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It’s All about Meditation Current Meditation’s raison d’être is empowering people to tap into the benefits of meditation and use it every day to improve their quality of life. “Meditation is becoming mainstream,” says Ross Weisman, president and chief operating officer, who, with his co-founders, brings to the enterprise a combined 40-plus years of business experience. In vogue now as the science of health and happiness known as “mindfulness,” it is “showing up more and more in our culture,” Weisman notes, pointing out sports teams are practicing meditation and companies have begun adding it to their wellness programs. With meditation its sole focus, Current Meditation specializes in mental fitness and guided meditation practice, combining scientifically backed meditation curriculum with a cutting-edge environment that provides a place for people to focus on the practice of mental fitness as a part of their regular routine. Weisman sees the growing interest in meditation as a “natural evolution of what’s happening in the west as we’re picking up on health and wellness trends,” and compares it
to the boom in gyms that began in the 1950s as large numbers of people moved out of industrial jobs to white collar jobs. “People are starting to see mindfulness and the formal practice of meditation to be a way to stay mentally fit.” The owners turned to local artisans to create the environment of a contemporary studio featuring chic décor and technology, such as iPads and proprietary sound proofing in its meditation studio, to embrace the modern world and offer a multi-sensory experience for meditation in the modern world. And they chose to open their first location in the heart of Arcadia because, Weisman says, “We feel the area is attuned to concepts like this.” —RaeAnne Marsh Current Meditation becurrent.com
U.S. Health Advances — and Declines With employee health continuing to be an important focus for employers, recognizing the direct correlation to productivity and healthcare premiums and thus profitability, the 27th America’s Health Rankings Annual Report® recently released by United Health Foundation has both good news and bad. The report — which is prepared through an analysis of 34 measures of behaviors, community and environment, policies and clinical care data — points up many years of success against public health challenges that include smoking (41 percent decrease among adults since 1990), preventable hospitalization (35 percent over the past decade and 13 percent in the past year alone) and a high rate of uninsured (35 percent over the past five years, to 10.6 percent — the lowest point in the report’s history). However, key findings show those gains are being undercut now by other serious health challenges. For the first time in the 27-year history of the America’s Health Rankings’ Annual Report, the cardiovascular death rate has increased in the past year (from 250.8 to 251.7 deaths per 100,000). The rate of drug deaths has increased by 9 percent over the past five years, and increased by 4 percent in just the past year. The premature death rate has increased for the second
The number of unintentional overdose deaths from prescription pain relievers has quadrupled in the United States since 1999.
consecutive year — suggesting a troubling trend. And the prevalence of obesity among adults has increased — by an astounding 157 percent. Hawaii took the honors in 2016 as having the healthiest residents, holding that ranking for five straight years. But its vacation-aura climate is probably not the deciding edge, as the other top-ranking states are, in consecutive order, Massachusetts, Connecticut, Minnesota and Vermont. Arizona lands in the middle of the rankings, its residents’ health moving it up one spot from the previous year to 29th in 2016. “We have made important strides across the country against public health challenges; however, we are at a crossroads between a healthier future as a nation and a future in which troubling public health measurements become increasingly common,” says Reed Tuckson, M.D., external senior medical adviser to United Health Foundation. “Of particular concern is the firsttime rise in cardiovascular deaths, despite all the medical advances in this area. This data provides a roadmap for states, local communities and the public health sector to work together to get ahead of the challenges coming.” —Mike Hunter Americas Health Rankings americashealthrankings.org
LAW MATTERS TO BUSINESS
A Business’s Accountability in Human Rights Violations Companies face legal and reputational risks by ignoring human rights abuse in their supply chain by Ajitav Mick Misra, Esq.
Ajitav Mick Misra has been a practicing business and tax lawyer since 2002. Senior counsel with Radix Law, he represents businesses in all their activities and has worked with technology, real estate and energy companies in domestic and international transactions, capital raises, financings and contractual relationships. radixlaw.com
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Corporate human rights abuse is a topic getting more and more visibility, and most companies today are aware of violations across the world and are keen to not promote such abuses. But how much of a duty does a company have to actively monitor whether its activities lead to human rights abuses? Do companies face legal or reputational risks if they don’t take steps to actively reduce human rights abuses? These questions have garnered a lot of attention in recent years as customers and governments have become more aware of human rights abuses and seek ways to reduce the number of abuses around the world. Recently, this issue has come to the forefront in the United Kingdom and other parts of Europe. A study published by the British Institute of International & Comparative Law and global law firm Norton Rose found that almost half of major companies are not performing an assessment of potential human rights impact on their business or supply chain. Of the companies that performed such an assessment, more than 75 percent identified actual human rights impacts and more than 70 percent found impacts linked to the activities of third-party relationships. The takeaway from this study is that, while there are widespread human rights impacts from business activities, almost half of businesses are not aware of them. This can pose a major problem for businesses if they face legal repercussions as a result of not being aware of human rights abuses related to their businesses. The UK has introduced legislation in the form of the Modern Slavery Act, which seeks to impose legal duties for companies above a certain size to investigate and report steps they are taking to fight human slavery and human trafficking. Additionally, Norton Rose notes that there is an emerging body of law in different nations that may impose legal liability on companies for human rights abuses in their supply chain. While the current legislation and legal liability seemingly apply to foreign companies, U.S. businesses should not be lax about monitoring the potential human rights abuses related to their activities. Any publicly traded business will likely
have operations throughout the world. Particularly if they are in industries known for human rights abuses, such as the garment or manufacturing industries, it may not matter if the U.S. company did not know about abuses in foreign countries. Rather, what may matter is whether the company investigated potential human rights abuses in its own business as well as potential human rights abuses associated with companies in its supply chain. For instance, if a U.S. apparel company makes products in Asia through a third-party manufacturer, it should investigate the labor practices of its manufacturing partner. Not doing so could result in legal liability in the U.S. or in other nations where it operates and could also result in significant damage to its brand. Even companies that are not multinational corporations may find themselves on the wrong end of a potential human rights abuse situation. With the increasing globalization of markets, a company that operates predominantly in the U.S., or even in only one region or state, may still have a supply chain that includes foreign labor. In such cases, the sins of the company’s supply chain may pass through to the company itself. As of today, there are no U.S. laws that would impose legal liability on such a company if it did not know about human rights abuses in its supply chain. However, given how fast information spreads through the internet and traditional media sources, it’s quite likely that a human rights violation in a company’s supply chain will not only be known, but also that customers and the public at large will demand change. In this type of a situation, a company could suffer serious reputational consequences, and the damage to its brand could take a lot of time and money to fix. This threat is compounded by potential of legal liability imposed by governments. The best option, therefore, is for companies to get ahead of the curve and actively promote respect for human rights in their own business activities as well as the business activities of their suppliers where it’s practical to do so. By doing so, a company may not only avoid legal and reputational damage, but also increase the value of its brand in the process.
Companies need to pay more attention to human rights abuses in their own activities as well as in the activities of their business partners. Best practices suggest that companies should get ahead of the curve and actively monitor human rights issues that could affect them.
Because differences matter.
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Top Thinkers
Our Guest Editors speak out on business today by RaeAnne Marsh
With New Year’s resolutions in place, it’s always tempting to contemplate how the coming year will play out. In Business Magazine has no crystal ball to make predictions, but we dare to offer some perspective into 2017 as we turn to our past Guest Editors — recognized leaders in our community — to share their insight into their industry and our economy.
POWER FOR BUSINESS “Banking in Arizona (and everywhere) is so integral to a healthy economy — if banking is healthy, then the overall economy can be healthy. And the converse also is true,” says Jim Lundy, founding CEO of Alliance Bank of Arizona. To illustrate the significance of the banking system being caught up in an economic downturn, he points out that, while Arizona has had a number of economic downturns over the last 25 years, the one in 1988/’90 and most recent one were more severe than the other times of economic slowness, and they involved the financial services and banking system directly. But at least for the foreseeable future, Lundy believes the future of banking in Arizona is good. “We have a number of healthy banks,” he says. Not just the “big 3” — Wells Fargo, Chase and Bank of America — but more than 60 in all. “There’s enough variety and assortment of smaller and midsized regional banks so businesspeople, consumers and real estate developers have a good array of alternatives for financing. As I look ahead, I see no reason capital should not be available.” Capital is key for banks themselves. As Lundy points out, “The capital conserve is an important buffer to banks’ health when we do have another economic downturn.” So where does that stand now? “We have more significant capital levels as pre-crisis — one-and-a-half to three times more capital,” says Lundy. “The enhanced capital position of the banking industry is a good thing for the stable economic future of the state.” In the realm of making capital available to consumers, banks have suffered some erosion of their market. For instance, auto lending from banks has gone to auto companies getting in the financial business themselves. And for unsecured personal loans, credit cards commonly take the place of personalized short-term loans. The current challenge is financial technology services, which are harnessing technology to get investors and going directly to consumers and businesses through a technology platform intermediary. But Lundy notes, “Lending to business is time-consuming. You need to understand the business. So, it will be a long time before the fintech industry takes a huge chunk of regular local business lending away from banks.” Cyber security is another challenge, although admittedly not unique to banks. But Lundy explains, “Because banks’ job is to keep our customers’ financial information safe and secure, we have an extra layer of responsibility in that regard. This may be an area where fintech and bitcoin, etc., innovators will find it’s not that easy to have the rigorous infrastructure you need. It’s not easy to duplicate what banks have. So, banks are well-positioned to maintain their critical space in the economy.” Additionally, the government expects banks to take an active role in helping it monitor illegal funds flow, for criminal activity or tax
avoidance. After all, all of those activities that aren’t legal have to have a money source. “It’s difficult, and it puts a burden on banks,” says Lundy, “but it gives banks a natural advantage because the government expects that kind of commitment.” Dodd Frank has placed higher capital and more intense regulatory requirements on banks since the financial crisis, and Lundy notes the stock market has indicated that a more business-friendly president and congress may scale back some of those regulations, but, he says, “I don’t look for wholesale significant changes in the responsibility of banks to keep higher capital levels and be very active participants in the cyber security and customer privacy and anti-money-laundering efforts.” This also helps explain why Lundy does not foresee a proliferation of startup banks in Arizona’s future. “It takes more capital and more expertise and more effort to run a successful bank today, so investors have been taking a wait-and-see attitude before they weigh in and invest in a large number of startup banks,” says Lundy, adding, “It’ll be interesting to watch to see if there’s enough regulatory relief to attract new money to support new banks.” “Keeping the lights on” is a common metaphor for “staying in business.” But energy is another fundamental requirement for commerce to exist. Mark Bonsall, general manager and CEO of Salt River Project, noting that technology has had enormous impacts on the utility industry and will continue to drive change in the future, shares, “Our customers tell us they want products delivered to them quickly and reliably to meet their particular wants and needs and they want it using the latest technology. That’s why we are researching how to further differentiate, on a retail basis, the basic electricity commodity by reliability, fuel mix, or other variables.” He notes that this involves building a generation mix with variable costs driven by customer preferences, rather than a onesize-fits-all, least-cost generation mix, and says, “We are also looking at developing new customer segmentation approaches, built around customer preferences, not consumption patterns, which will drive product and service development.” Bonsall observes that providing the energy that has enabled Valley businesses to succeed and commerce to thrive is vital and will continue to be in the future. Looking ahead, he says, “The emphasis in the utility industry will continue to focus on developing resource plans that increasingly rely on new and different forms of energy and technologies that will meet the needs of the economy and our customers. Amidst all these changes, the mission remains to provide reliable and affordable power, improve energy efficiency and meet the environmental responsibilities that lie ahead.”
“There’s enough variety and assortment of smaller and midsized regional banks so businesspeople, consumers and real estate developers have a good array of alternatives for financing. As I look ahead, I see no reason capital should not be available.” —Jim Lundy, Founding CEO of Alliance Bank of Arizona
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HEALTH — CARING DOWN TO THE BOTTOM LINE The advice from Paul Johnson, CEO of Redirect Health, is, “Count on healthcare changing ... again!” Healthcare coverage for employees continues to be a critical issue for businesses in their war for talent. And Johnson notes that, while disruptive companies have been setting out to solve today’s healthcare problems, a controversial election, an uncertain future with Obamacare and Trumpcare, and fickle insurers have yet again changed the playing field for small businesses. “Among the latest challenges: Their employees have been shut out of individual health insurance options.” Johnson expects solutions to be driven by less by additional government, regulations and restrictions, but rather a free market. Noting that today’s businesses are, more and more, slamming the status quo and taking their future into their own hands, he says in the healthcare sector, “we’re seeing this with the increased adoption of self-funded and partially self-funded health plans as a means to lower premiums, limit liability and increase the value for employees.” He has three suggestions for small and midsized businesses to transform healthcare from a stressful and overwhelming burden to a competitive advantage. One is to buy common healthcare services directly, bypassing big insurance, and purchase traditional insurance only for catastrophic illnesses and accidents. Another is to try to control where a procedure is performed or prescription is filled, as prices can vary dramatically from one location to another. The third is to invest in technology and/or a trusted third-party partner that helps employees navigate the system, increases access to doctors, and helps
manage the 10 percent of employees who spend 90 percent of the healthcare dollars. Physical well-being is one of a multitude of responsibilities employers face, observes R. Allan Allford, president and CEO of Delta Dental of Arizona. Another is the more subjective psychological well-being — much of which derives from the workplace environment created by company culture. “It’s a bottom-line issue as well,” he says, pointing out studies have proven that a healthy employee is more productive, and citing, as example, the study referenced in former U.S. Surgeon General Dr. David Satcher’s report Oral Health in America, which found that employed adults lose more than 164 million hours of work each year due to dental disease or dental visits. Although that’s no small number, he notes that the significance of one’s oral health on overall health is often a secondary consideration in the discussion of corporate-sponsored health and wellness benefits. In fact, Allford says, dentists can detect the signs and symptoms of more than 120 diseases in one’s mouth, including cancer, diabetes and heart disease. Helping increase awareness that good dental health is an important part of our well-being, Delta Dental created its Healthentic tool to help employers better understand dental benefits utilization and introduce wellness programs that guide employees to better oral and overall health. Says Allford, “Looking ahead, the demand for solutions like these will be even greater, as employers look to achieve a balance between benefits cost and employee wellbeing and satisfaction.”
“Count on healthcare changing … again!” —Paul Johnson, CEO of Redirect Health
“The emphasis in the utility industry will continue to focus on developing resource plans that increasingly rely on new and different forms of energy and technologies that will meet the needs of the economy and our customers.” —Mark Bonsall, General Manager and CEO of Salt River Project
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… employed adults lose more than 164 million hours of work each year due to dental disease or dental visits. Although that’s no small number, the significance of one’s oral health on overall health is often a secondary consideration in the discussion of corporate-sponsored health and wellness benefits. —R. Allan Allford, President and CEO of Delta Dental of Arizona
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DEVELOPING WORKFORCE & EDUCATION Donald Budinger, chairman and founding director of both the Rodel Foundations and Science Foundation Arizona, noted in 2012 that changes we were experiencing in our economy were due only partly to the recession but also because of advances in technology that resulted in business needing a workforce with new skill sets, in particular in areas of science, technology, engineering and mathematics. “These skills,” he said, “are in demand and beginning to shape the economy in ways that demonstrate a need to heighten the basics among students. “As a business owner and one of the founders of a garage start-up that grew to become the world’s largest manufacturer of the surface finishing chemicals used to make computer chips, rigid memory disks and specialty optics, I found our need for well-educated and highly skilled employees was worldwide. In the 1990s, we started noticing a change in available candidates when hiring people for our U.S. facilities. More and more we were interviewing and hiring people who had been educated in other countries because their skill sets matched our needs better than those educated in the U.S. It is for this reason that we invested the majority of the proceeds we received upon the sale of our business into starting the Rodel Foundations, whose mission is to improve Arizona’s K-12 public education system so that it is widely recognized as one of the best in the nation by the year 2020. Science Foundation Arizona is also investing public/private dollars into a more robust science, technology, engineering and math curriculum in our state.” Emphasizing the need for academic standards that, in addition to academic knowledge, focus on teaching critical thinking, problem solving and effective communication skills, Budinger notes the importance of empowering students with the knowledge and skills they need to be successful in the future. This remains as important now as ever, he says, pointing
“Globalization and technology — including all their explosive economic dynamics — are here to stay, so each and every one of us needs to adjust.” —Donald Budinger, Chairman and Founding Director of Rodel Foundations, Chairman and Founding Director of Science Foundation Arizona
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out that technology and globalization have been drivers of the global economy since the beginning of the recovery in 2009. “Smart devices have enabled every human being on the planet to communicate with one another, which creates huge demand for those products, and corporations can and do build their factories, research centers and distribution facilities anywhere in the world they choose. The result is that we have different winners and losers. Those left behind are not happy and are part of the current political populism that we saw in the UK’s decision to leave the EU last summer and the election in the U.S. of a man who appealed to those who feel left behind and not represented in the new economic reality. “But globalization and technology — including all their explosive economic dynamics — are here to stay, so each and every one of us needs to adjust.” Amy Hillman, Ph.D., dean and Rusty Lyon Chair of Strategy at ASU’s W. P. Carey School of Business, speaks to the need for soft skills as well, in today’s business environment. “As educators of the business leaders of today and tomorrow, we know that whether our students start their own businesses or make their careers in others’, technical skills are essential to success. But the technical skills will change over time, necessitating lifelong learning, and, in the end, it’s the soft skills like leadership, teamwork, motivating others and being a strong communicator that will make your career. “Technological enhancements in business and society have accelerated faster than expected the past two years. But the need for insights and sensitivities to how technology impacts strategy and the human elements of an organizations — its impact on products, customer service, employees, teams and processes — still requires leadership with strong capabilities in human capital management and motivation.”
“The need for insights and sensitivities to how technology impacts strategy and the human elements of an organizations — its impact on products, customer service, employees, teams and processes — still requires leadership with strong capabilities in human capital management and motivation.” —Amy Hillman, Ph.D., Dean and Rusty Lyon Chair of Strategy at ASU’s W. P. Carey School of Business
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THE BEST PRACTICES Addressing the areas of finance and professional services, Matthew Feeney, chairman of the law firm of Snell & Wilmer, notes that Arizona’s continuing economic vitality in entrepreneurship and business startups needs those small businesses to scale and grow. While there are resources available to assist companies in reaching that higher level, he believes businesses can look inward to leverage their resources and invest in themselves to grow business, opportunity and profits. “In the early stages of any entrepreneurial venture, the natural focus is on attracting talent, acquiring customers and generating revenue,” Feeney says. With limited resources to confront a seemingly endless stream of competitive threats, business owners often take a reactive approach where it comes to professional services, for instance engaging counsel only when something goes wrong. However, he notes, it’s almost always more expensive and time-consuming to address an issue after the fact — plus there’s the reality that, in certain situations, what’s broken can’t be fixed. “Since a little knowledge can go a long way in avoiding costly, and potentially fatal, mistakes, business owners should also invest in their own continuing education.” His firm, for instance, offers a monthly Emerging Business Seminar Series™ to help clients understand and proactively address the challenges that may confront their businesses. “Through continuous education and strategic consultation, entrepreneurs can construct a solid (but cost-effective) legal foundation upon which to build their next great company.” Wealth management is another area of critical importance. In fact, Deborah Bateman, vice chairman with National Bank of Arizona and director of its Premier Wealth Management, believes it’s more important now than perhaps ever before that business owners proactively manage their wealth in ways that help ensure security while positioning them to take advantage of opportunities in both the near and long term. “Whether they are growing their businesses or simply preparing themselves and their employees for the future,
“Since a little knowledge can go a long way in avoiding costly, and potentially fatal, mistakes, business owners should also invest in their own continuing education.” —Matthew Feeney, Chairman of Snell & Wilmer
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the current environment requires that wealth management be as much a part of business as profitability,” she says. “By working closely with an experienced and trusted financial advisor, to determine and plan for their financial needs and goals, business owners can develop effective strategies while continuing to focus on their real interests: their families and their businesses.” She suggests business owners — responsible both for family and business finances — create time in their schedule to develop, implement and monitor a comprehensive, well-crafted plan to help achieve their personal goals as well as maintain and attract talented employees while operating their companies efficiently. Incorporating philanthropy into a business’s operations is accepted as good practice. Steven Seleznow, Ed.D., president and CEO of the Arizona Community Foundation, reports that Arizona is home to a wide range of highly effective and even nationally recognized charitable organizations — and this offers businesses a variety of ways to support the community through philanthropic investments and activities. “Successful companies — whether family-owned businesses or large corporations — recognize the value of aligning their charitable giving with strategic business goals,” says Seleznow. “This alignment can boost employee morale, enhance a company’s reputation and raise awareness of corporate values.” However, Seleznow notes that, while it may be relatively easy to identify causes that merit a company’s commitment, the more significant step is choosing nonprofit organizations that will do the most good with the support they receive. In this regard, he says the Arizona Community Foundation, through its Pakis Center for Business Philanthropy, is seeing an exciting evolution in the way companies direct their resources toward the goal of developing strong, vibrant communities. “Businesses are stepping up to the challenge of being good corporate citizens in the communities where they do business,” he says. Among the options are corporate grantmaking, employee scholarship programs and staff volunteer activities.
“Whether they are growing their businesses or simply preparing themselves and their employees for the future, the current environment requires that wealth management be as much a part of business as profitability.” —Deborah Bateman, Vice Chairman and Director of Premier Wealth Management with National Bank of Arizona
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GETTING SECTOR-SPECIFIC We’ve taken the pulse of a few of our key industries. Elliott Pollack, CEO of Elliott D. Pollack and Company, says the real estate market now has significantly improved since three years ago. “The outlook for virtually all forms of residential and commercial construction is much better today. And given the pro-business policies the Trump administration is likely to follow, the outlook will improve even more.” He notes that excess inventory in the residential market in terms of houses and lots is gone; the demographics and the potential for a faster growing economy overall under Trump suggest that single-family housing will do much better over the next few years; and the demographics for apartments have never been better in the history of man. On the commercial side, vacancy rates in office have declined to levels that suggest a 2018 boom in construction, and industrial is also underbuilt relative to new demand. “In addition,” he says, “if Arizona has a sufficient number of shovel-ready projects that will allow it to get its share of the new infrastructure program that Trump campaigned on, our biggest problem will be finding enough labor to fill all the jobs.” Chuck Vermillion, who built a name for himself as CEO of OneNeck IT Services and recently launched AccountabilIT, observes that technology is sometimes portrayed in the media for its man-vs-machine role in workplace job losses. “But it is also touted as an economic growth sector,” he says. “In fact, it is one of the areas Arizona’s leaders have identified as key to the state’s development of a sustainable, strong, high-wage-based economy. “A number of organizations, including the Arizona Technology Council, are focusing on developing the State of Arizona into a Technology Titan. And we’ve seen great results.” Vermillion points to Raytheon announcing its Southern Arizona expansion — which will add nearly 2,000 jobs over the next five years — as well as Vector Space, Lucid and Galvanize announcing the opening of new
“Successful companies — whether familyowned businesses or large corporations — recognize the value of aligning their charitable giving with strategic business goals.” —Steven Seleznow, Ed.D., President and CEO of Arizona Community Foundation
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locations in Arizona in 2017. “Efforts to develop innovative and impactful homegrown companies resulted in our entrepreneurial ecosystem having its strongest year ever,” he says. “Serial entrepreneur and co-founder of AOL Steve Case brought his Rise of the Rest startup competition to Phoenix after we were identified by his organization as a growing startup market. Having complete faith in the local market myself, I recently launched my latest startup in Scottsdale, AccountabilIT, focused on enterprise resource planning applications management and cloud IT services. The outlook for 2017 is encouraging and it may be Arizona’s most robust year since the recession.” Offering his perspective on sports special events, Mike Kennedy, shareholder with Gallagher & Kennedy, whose practice includes working with Arizona sports teams, and who chaired the Arizona Super Bowl Host Committee through the successful staging of the Super Bowl here in 2008 and 2011, says, “Here in Arizona, we have the year-round privilege of being able to root for our home-town teams, as the Valley is home to professional teams for football, baseball, basketball, hockey and soccer with its new management and name, Phoenix Rising F.C.” And the result of our three-year run in hosting Super Bowl XLIX in February 2015, the College Football Playoff National Championship Game in January 2016 and the NCAA Basketball Final Four in March 2017 is impressive. “In fact,” he says, “‘off the charts’ would be an understatement.” The economic impact realized by Super Bowl XLIX was $719.4 million and the College Football Playoff National Championship generated another $274 million. The upcoming NCAA Final Four will easily drive the total economic impact for these three events well over one billion dollars. “Perhaps even more importantly, CEO Forums held during Super Bowl XLIX and the College Football Playoff National Championship resulted in 14 companies relocating to Arizona, representing 3,614 jobs with an average salary of $71,196 and $207 million in capital investment.”
“If Arizona has a sufficient number of shovelready projects that will allow it to get its share of the new infrastructure program that Trump campaigned on, our biggest problem will be finding enough labor to fill all the jobs.” —Elliott Pollack, CEO of Elliott D. Pollack and Company
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Kennedy also points to Valley mainstays Waste Management Phoenix Open hosted by The Thunderbirds and Cactus League baseball, which in 2016 generated economic impacts of $222 million and $809 million, respectively. “Far beyond just entertainment, the business of professional sports and hosting mega-sporting events has an enormous, tangible impact on our Valley economy,” Kennedy states. The Valley has seen a proliferation of restaurants, and one of the leaders in that industry is Sam Fox, founder and CEO of Fox Restaurant Concepts. As he shared with us when he introduced the “restaurant” issue of In Business Magazine a few months ago, local Phoenicians have known the Valley has been a dining destination for some time. “Now, the rest of the country is taking note. We’re finally being recognized as a city that’s driving dining trends by way of some incredible culinary talent. Truth is, we’re tired of not being seen as the foodcentric market we’ve become. Phoenix has earned its seat at the table and I’m more excited than ever about the innovation and creativity emerging from Arizona. The talent here is impressive, and, while the list of veteran restaurateurs in the Valley is long, so too is the list of fresh, homegrown talent.” Fox sees the Valley’s restaurant growth — with guests exploring new neighborhoods and tapping into the local food scene — as proof that locals and visitors alike are seeking experiential dining in Arizona. “Today, there’s a great range of successful restaurateurs in Arizona. Whether it’s a James Beard Award-winning restaurant, a cool local dive bar, or a place that serves family favorites in a creative atmosphere, there’s quality in the kitchen, hospitality on the floor, creativity in design, and a million reasons out there to love our growing restaurant scene. Arizona is a dining scene, and we are only going to get better.” While there is a business sector that has grown up around sustainability, it is also a trend in business overall. “Businesses, cities and universities in Arizona are leading the way toward a sustainable, inclusive, resourceful economy,” says Patricia Reiter, director of Rob and Melani Walton Sustainability Solutions
“A number of organizations, including the Arizona Technology Council, are focusing on developing the State of Arizona into a Technology Titan. And we’ve seen great results.” —Chuck Vermillion, Founder, AccountabilIT
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Initiatives. “This is even more obvious now than it was when I wrote my editorial in 2013. International business leaders were on the forefront of climate negotiations in Paris last December, and local enterprises are key players in a circular economy that keeps consumer dollars in our state, provides jobs, and reduces the financial and air quality costs of transportation. “Going green is no longer just a marketing meme or employee engagement strategy. Businesses see opportunity in creating products and services that have a triple bottom line — people, planet and profit. Forward-looking industry leaders are not waiting for regulation, they are creating science-based targets for their operations and products because it’s good for business. Many have begun to measure their social impact through the United Nations’ Sustainable Development Goals. In addition, investor reporting frameworks are integrating sustainability factors which can have a material influence on the financial performance of a company’s stock.” Reiter notes that ASU works with business and civic leaders locally and globally to create sustainable solutions for an ethical circular economy — 76 projects since 2012, in nine countries with 194 partners, including businesses with combined market value of $365 billion. The Walton Sustainability Solutions Services initiative is currently working with the City of Phoenix and several emerging businesses to create the Resource Innovation and Solutions Network, which will create jobs while developing uses for problematic waste that would otherwise go to the landfill. Reiter says business leaders at the RISN hub in Lagos, Nigeria, have adopted this same strategy. “To ensure inclusive, intergenerational well-being and economic prosperity, we all need to work together. Businesses are investing in this future now,” Reiter says. Next month, her organization will present its Sustainability Solutions Festival (http://bit.ly/sustainability-solutions-festival), which will include hosting international business leaders at partner event GreenBiz 17 as well as inviting the public to be engaged in sustainability solutions activities throughout the month of February.
“Perhaps even more importantly, CEO Forums held during Super Bowl XLIX and the College Football Playoff National Championship resulted in 14 companies relocating to Arizona, representing 3,614 jobs with an average salary of $71,196 and $207 million in capital investment.” —Mike Kennedy, Shareholder with Gallagher & Kennedy, Past Chairman of Arizona Super Bowl Host Committee
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WHERE WE’RE GOING WITH ECONOMIC DEVELOPMENT “Business in Arizona is still in growth mode, from startups creating their space in the marketplace to established companies expanding their operations,” says Robert Blaney, director of the U.S. Small Business Administration’s Arizona District. “It is also interesting to see new methodologies develop for raising capital to either start or grow a business,” he adds, noting “crowdfunding” was not part of the business lexicon a few years ago. “The world of business, especially small business, changes quickly and it is important to keep your business and yourself agile.” The U.S. Small Business Administration’s loan program activity further confirms that small business is on the right track here in Arizona. The federal fiscal year begins on October 1 and ends September 30. From October 1, 2015, to September 30, 2016, SBA guaranteed 1,387 loans, or 26 more loans and about 35 million more dollars than in FY2015. Perhaps the better part of the story, Blaney says, is that over the last two fiscal years the dollar amount increased 33 percent compared to FY2014. On September 30, 2016, the loan dollar total was $681 million versus $646 million for the same period last year and $516 million the prior year. And, citing this as another good sign, he shares that more than 36 percent of the loans went to new business applicants, attesting to the appetite for entrepreneurship that characterizes our state. Noting geography being another important aspect for Arizona business, Blaney cites the more than $240 billion in U.S. products and services that Mexico imported last year. Says
Blaney, “Exporting products or services will help grow your business because 95 percent of all consumers live outside the United States.” But there is also a very important local movement, as Kimber Lanning, founder and executive director of Local First Arizona, explains. “As technology continues to transform the shape of many industries, we’re living more and more in a global economy and local companies have opportunities to expand and grow by connecting outward to new markets. But there is economic strength derived by encouraging business-tobusiness interaction within the local community, as well.” Lanning notes the “buy local” movement has definitely taken hold in Arizona, with consumers consciously seeking out independent businesses and understanding that when they support the locally owned businesses in their communities, up to four times more dollars stay and circulate in the local economy versus money spent with national corporations or global online retailers. “They know the money they spend goes toward creating more local jobs, and that the dollars re-circulate to create additional revenue that strengthens local schools and helps protect unique and vibrant communities,” she says. “Through the ‘buy local’ strategy, we’re building community wealth, and an economy that works for everyone, no matter their socio-economic status or background,” Lanning says. “Businesses and consumers alike are working together to support Arizona-owned businesses of all kinds, and are
“We’re living more and more in a global economy and local companies have opportunities to expand and grow by connecting outward to new markets. But there is economic strength derived by encouraging business-to-business interaction within the local community, as well.” —Kimber Lanning, Founder and Executive Director of Local First Arizona
“Arizona is a dining scene, and we are only going to get better.” —Sam Fox, Founder and CEO of Fox Restaurant Concepts
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“The ease of access to quality mentors, the openness of this community to take meetings with early-stage startups, and the collective desire to put Phoenix on the map nationally is not something every community can claim.” —Courtney Klein, Founder and CEO of SEED SPOT
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creating prosperity not only for themselves but for their neighbors and communities overall.” Courtney Klein, founder and CEO of business incubator SEED SPOT, affirms the entrepreneurial fever is alive and well in Arizona. Reiterating her observations from last month’s “startup” issue of In Business Magazine, she notes that entrepreneurs represent the foundation of a growing economy, and that those which have experienced exponential growth have demonstrated the ability to listen to customer needs, iterate quickly through change and execute relentlessly on their vision. What’s required is not only strong leadership and dynamic teams to bring new ideas to life, but also a community of people who are willing to take early risks, place big bets, and roll up their sleeves to lend expertise and energy to help startups go from idea to scale. To these points, she says, “Traveling across the country as we expand SEED SPOT to new markets, I can attest that Phoenix has a unique asset in being a big small town. The ease of access to quality mentors, the openness of this community to take meetings with earlystage startups, and the collective desire to put Phoenix on the map nationally is not something every community can claim.” Making Arizona the best place for business, strengthening the economy through high-value job creation and building a vibrant innovation ecosystem are primary focus areas for the Arizona Commerce Authority, the state’s top economic development agency, of which ACA President and CEO Sandra Watson says it “is led by a dynamic public-private sector board, chaired by Governor Ducey and guided by his probusiness policies.” Observing that Arizona is experiencing incredible economic development success with new and existing Arizona
businesses, Watson cites recently announced large-scale expansion projects with global leaders such as Lucid Motors, Caterpillar, Raytheon, Orbital ATK, ADP, McKesson, Rogers Corporation, Kudelski Group and Carlisle Corporation. “Adding to this recent wave has been the growth of our innovation ecosystem, which is being recognized across the country as a place to test new business models, such those in the sharing economy, automotive technology and information technology,” Watson says. For example, in November, Arizona was selected over 12 other states and nearly 60 sites across the country as the future home of Lucid Motors, an electriccar manufacturer that plans to invest $700 million in Casa Grande and create 2,000 new jobs by 2022. “And tech-based companies like Uber, Google and Airbnb all have a significant presence in the state and are testing bold ideas that will help create a sustainable future for the state.” These companies also have something in common: California. Says Watson, “Arizona has been incredibly successful in attracting California companies seeking fewer regulations, low taxes and a welcoming environment.” The ACA reports that, over just the past 18 months, it has worked collaboratively with companies that have committed to creating 28,629 projected new Arizona jobs and making $2.77 billion in capital investments in our economy. “Arizona provides all businesses, small and large, the perfect platform for growth and success. The ACA, under Governor Ducey’s leadership and with the support of our Legislature, will continue to drive the message home that Arizona is indeed the best place to live, work, do business and thrive,” Watson says. “I’m confident that in 2017, we will see this strong momentum continue in our economy.”
“Adding to this recent wave has been the growth of our innovation ecosystem, which is being recognized across the country as a place to test new business models, such those in the sharing economy, automotive technology and information technology.” — Sandra Watson, President and CEO of Arizona Commerce Authority
AccountabilIT accountabilit.com
Elliott D. Pollack and Company edpco.com
Redirect Health redirecthealth.com
Snell & Wilmer swlaw.com
Alliance Bank of Arizona westernalliancebancorporation.com/ alliance-bank-of-arizona-home
Fox Restaurant Concepts foxrc.com
Rodel Foundation rodelaz.org
Gallagher & Kennedy gknet.com
Salt River Project srpnet.com
U.S. Small Business Administration/ Arizona District sba.gov/offices/district/az
Local First Arizona localfirstaz.com
Science Foundation Arizona sfaz.org
National Bank of Arizona nbarizona.com
SEED SPOT seedspot.org
Arizona Commerce Authority azcommerce.com Arizona Community Foundation azfoundation.org Delta Dental of Arizona deltadentalaz.com
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W. P. Carey School of Business wpcarey.asu.edu Walton Sustainability Solutions Initiatives sustainability.asu.edu/ sustainabilitysolutions
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A PATH TO FOLLOW
Anthony Abbatiello is a principal in Deloitte Consulting LLP’s Human Capital practice and is the global leader of Deloitte Leadership, which helps organizations address constantly evolving business challenges and diverse employee expectations to build leadership pipelines and programs for emerging, next generation, and senior leaders. Abbatiello specializes in leadership development, culture transformation, and HR strategy. He has led industry and functional human capital practices, provided thought leadership, and developed practitioners to deliver business results to clients. He serves global clients as a senior advisor in leadership development, talent strategy and digital HR. bit.ly/abbatiello
Global Businesses and HR Leaders Are Failing to Deliver Future Leaders Empowering new leaders may be harder than HR executives thought by Anthony Abbatiello
Given constantly changing market dynamics, new technologies, shifting government regulations and evolving customer expectations, leaders must understand and respond effectively to seismic shifts that affect their businesses. Traditional leadership development programs are failing to deliver collaborative and visionary business leaders, according to new research from Bersin by Deloitte entitled “High-Impact Leadership: The New Leadership Maturity Model.” Based on responses from global business and HR leaders across industries, Deloitte’s research finds organizations that build a context for leader growth — including systems, processes, cultures and practices to support leaders in their daily development — generate better business and talent outcomes than those which rely on traditional leadership programs alone. Furthermore, organizations that adopt the new systemic leadership maturity model have 37 percent more revenue by employee and are twice as profitable as compared with organizations that focus only on formal leadership programs. These organizations are also three times more likely to innovate and six times more likely to produce leaders who are collaborative and provide vision and direction than peer organizations that rely solely on traditional leadership development programs. However, 75 percent of organizations surveyed find themselves at lower maturity levels, focusing primarily on formal training programs as the only means of building leadership talent.
To create the right context for leadership growth beyond formal training, the new research-based leadership maturity model from Deloitte’s High-Impact Leadership report identifies multiple important practices organizations should implement. In addition to communicating what it means to be a leader, some of the most critical practices for building a context for leadership growth call for organizations to: • Communicate the leadership model and expectations; • Foster a climate of risk-taking for leaders; • Extend knowledge-sharing for leader development, internally and externally; • Expose leaders to other organizations, industries and challenges; and • Create strong ties between HR and business to identify leader development needs.
Leadership in the Era of Digital Disruption Dushyant Sukhija, a former executive with Cisco Systems, is author of The Cisco Way: Leadership Lessons Learned from One of the World’s Greatest Technology Services Companies. He has an MBA from Santa Clara University in California and a Bachelor of Technology degree in electrical engineering from the Indian Institute of Technology in New Delhi, India. As a Silicon Valley thought leader and insider, he now shares his insights as a speaker at forums around the world. dushyantsukhija.com
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Five ways leaders can take charge by Dushyant Sukhija
The rapid advancement of technology continues to change the world — and the marketplace — faster than many businesses can keep up with, disrupting all their plans and threatening to render them obsolete. It may be time for business leaders to take the initiative and start doing a little disrupting of their own. In this era of “digital disruption” — which refers to how technology can transform everything about the way businesses are run and interact with customers — leaders who don’t transform to master the digital era to disrupt will get disrupted. And it will be a brutal disruption, where the majority of companies will not exist in a meaningful way 10 to 15 years from now. Those in leadership positions can guide their organizations through the new digital era by following a simple five-step operational blueprint: Build and execute a compelling vision. Business leaders need to focus on developing a vision that is disruptive to
their industry, and think three to five years out. They should engage their customers and partners in the process, clarify and articulate the value to their stakeholders, and ensure that their entire organization and ecosystem internalize and drive in formation toward that vision. They must build robust execution plans to work toward it, review their performance regularly and make course corrections when needed. Adopt a partner-centric model to deliver. Collaboration is core to delivering superior competitive advantage with speed in the new digital world. Business leaders need to pick the right partners to build unique and sustainable value for their customers. They will need to convince their partners and customers of their vision and strategy, and demonstrate their ability to innovate and create new markets. Reinvent yourself. A nimble organization that can read market transitions and adapt itself to refocus on cheaper and faster ways to deliver new customer value is best suited
Among the top priorities for business and HR leaders in 2017, according to crowdsourcing platform Waggl, are making sure everyone feels informed through better two-way internal communication and improving execution through better prioritization. waggl.com
BETTERING YOUR BUSINESS
The Employee Experience
The figure below breaks down the three factors and 17 dimensions of Leadership Maturity described in the research:
The Employee Experience helps organizations attract and retain top talent, and reveals the secrets for
Designed Leadership
Organizational Culture
Organizational Design
building a deeply engaged workforce. With insights
Exposure as a learning method
Strong culture
Matrix structure
into the dynamics of trust and mutual expectations,
HR and business collaboration
Enactment of core values and beliefs
Clarity in decision making
transcendent customer experience (CX), it must first
Career management integration
Risk taking
Management of collaborative overload
Business leader involvement
Knowledge sharing
Retention of high-potential employees
Organizational support
requirements. But by establishing a clear set of expectations and promises —
Strong leadership pipeline
Clear company identity
can build the essential trust that leads to powerful employee engagement.
Leader motivation Communication of leadership model
Integrated programs designed around these practices will help organizations create a context for leadership growth and the ability to set strategic priorities. Evidence-based, specialized leadership frameworks enable businesses to use leadership development to drive business growth. For instance, Xerox is piloting a program in which millennial mentors and senior executives meet once per month, one on one, to exchange opinions and viewpoints on topics related to both work and life, leading to greater understanding of the other generation and the changes that affect them both. While formal leadership programs remain important, this latest research underscores the need to utilize the organization as a system to develop leaders in their daily context, and expose them to sources outside the company that can accelerate their development. The resulting improvements in innovation, collaboration and financial performance demonstrate the value of this contextual approach.
this book proves that before a business can deliver a build a superlative employee experience (EX). It’s not about perks. It’s not about creating a worker’s utopia, and it doesn’t mean that work must be easy; employees are responsible for managing expectations and meeting the organization’s collectively known as “the Contract” — and upholding it consistently, employers
The Employee Experience: How to Attract Talent, Retain Top Performers, and Drive Results Authors: Tracy Maylett and Matthew Wride Publisher: Wiley
Pages: 240 Available: 1/30/17
$28
The 9 Types of Leadership In the past few years, mindfulness and other approaches to self-awareness have begun to transform the American workplace. The 9 Types of Leadership provides a pathway to greater self-awareness and social skillfulness, helping one orient oneself when caught up in people problems that one doesn’t know how to work one’s way out of. By providing extremely detailed and accurate descriptions of nine recognizable personalities, this book is an unmatched tool for businesspeople to use to decode the mysteries involved in understanding why people do what they do, why we have conflicts with some people but not others, and how we can become aware of our blind spots. Most importantly, it can help leaders know themselves in a deeper way so they can more effectively lead others.
to lead through the digital disruption. Business leaders must deploy a governance process to listen, learn, execute, lead and adjust to changing market dynamics and competitiveness. Turn people into the business’s secret weapon. Employees are the true intellectual capital of every company, and that means businesses must invest in their people to enable them to become the catalysts to help in navigating the digital transformation. Business leaders need to align employees to a common goal and create a nurturing environment, and harness their intellectual horsepower to drive exceptional thought leadership and repeatability of proven leading practices. Accelerate the speed of innovation. Innovation is not just about the technology but also about how the business leaders organizes himself, how he engages his customers, and how he drives cultural change through his organization. Resource sharing and clustering talent should come into laser-sharp focus to get closer to customers and streamline the business. It’s important to learn from the customers by engaging them in the business’s innovation cycles. Business leaders must become nimble to react to changing market needs and adapt to them. Digital disruption is bound to propel the rise of new companies that master the digital transformation, and bring about the demise of those that fail to do so. Business leaders can either take the steps to embrace it or risk being left behind.
The 9 Types of Leadership: Mastering the Art of People in the 21st Century Workplace Author: Beatrice Chestnut, Ph.D. Publisher: Post Hill Press
Pages: 352 Available: 1/31/2017
$27
Data for the People Every time we Google something, Facebook someone, Uber somewhere, or even just turn on a light, we create data that businesses collect and use to make decisions about us. In many ways, this has improved our lives, yet whether it is a bank evaluating our credit worthiness, an insurance company determining our risk level or a potential employer deciding whether we get a job, it is likely this data will be used against us rather than for us. Andreas Weigend draws on his years as a consultant for commerce, education, healthcare, travel and finance companies to outline how Big Data can work better for all of us. Too often, outdated standards of control and privacy force us into unfair contracts with data companies, but it doesn’t have to be this way. Data for the People: How to Make Our Post-Privacy Economy Work for You Authors: Andreas Weigend and Robin Dennis
Pages: 272
Publisher: Basic Books
$27.95
“Disruptive technologies are potentially some of the most powerful forces in the business world today.” —Marcus Shingles, Bill Briggs and Jerry O’Dwyer, “Social Impact of Exponential Technologies” (Deloitte University Press, 2016) dupress.deloitte.com
Available: 1/31/17
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INVESTING IN COMMUNITY
Transforming the Nonprofit
Major campaigns are among the most energizing and positive ways to effect change. Feb
UP NEXT MONTH The Art and Science of Campaigns
ESSENTIAL FIRST STEPS — CAMPAIGN PREPARATION Key pre-planning tasks include: • Developing a campaign plan and timelines; • Initiating or advancing campaign volunteer recruitment; • Accelerating prospect and donor development; • Initiating leadership gift cultivation and solicitation; • Training and coaching volunteer leadership, board members and staff; • Finalizing staffing structure and budget; • Developing campaign communications and events calendars; • Ensuring the fundraising “house” is in order; and • Establishing campaign infrastructure, to include data management, performance metrics, campaign policies and procedures and naming guidelines.
Richard Tollefson is founder and president of The Phoenix Philanthropy Group, an Arizona-based international consulting firm serving nonprofit organizations as well as institutional and individual philanthropists. phoenixphilanthropy.com
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by Richard Tollefson
When Darlene Newsom, CEO of Phoenix-based UMOM, the largest shelter for homeless families in Arizona, tackled a $25 million campaign in 2006, she — along with her board — aimed to reach more families and expand services through the creation of a new facility. What she didn’t expect were the myriad additional benefits a successful campaign could generate. “Not only were we able to expand our capacity and physical space for a child development center and healthcare clinic, but we also were able to partner with 48 different organizations as a result of that physical space,” says Newsom. Moreover, the new services and facility enabled UMOM to apply for and receive national accreditation for early care and education programs, a stamp of approval that made the nonprofit attractive to an even wider donor base. UMOM is not alone in experiencing the transformational power of a major campaign. But oftentimes, nonprofits excited about propelling their organizations into the future overlook the campaign as a vehicle of change — whether for bricks-and-mortar, strategic growth, endowment or comprehensive needs. “A fundraising campaign, especially during its planning and preparation stages, fosters an ideal opportunity to revisit, reassess and, ultimately, reaffirm the goals and mission of the organization,” says Gregory Leet, former vice chancellor for university advancement at University of California Irvine and now vice president of advancement at The Jackson Laboratory for Genomic Medicine in Connecticut. Leet’s $1 billion campaign at UC Irvine in 2008 funded a transformative new school of nursing, but he says other benefits also emerged. “The campaign became a lightning rod for ongoing internal discussions about the levels of financial and emotional investment required from the campus leaders to elevate and then sustain a major gifts program.” He says that shifting the existing fundraising model (primarily corporate and foundation grant proposals) to a more relationship-driven approach of soliciting individual major gifts, was an oftentimes uncomfortable — but profound and necessary — readjustment.
CAMPAIGN CREDIBILITY
“Marketing from our capital campaign helped us with credibility, awareness and name recognition in the community,” says Newsom. The capital campaign, she believes, also paved the way for success during a subsequent $3.5 million operational campaign in 2014. “We already had staff in place after the capital campaign, and then were able to go back to our core campaign donors.”
That’s not to say that every organization seeking change should rush into a major campaign. Leaders must do their homework and be able to answer: Why is a campaign needed? Beyond that, they should also: Ask: What is the intended strategic outcome of a campaign? How will it impact the community and those served? What are the real needs of the nonprofit? Plan: Board members and staff leadership must identify priorities from the strategic plan and champion internal assessments and external market research. “Assessments and feasibility studies tell you a lot about your capacity and readiness,” says Newsom, “and that sets the tone for the intensity of a campaign.” Understand: Annual and unrestricted giving must remain consistent. Ask donors to sustain unrestricted giving during a campaign while also supporting a specific campaign initiative. Assemble: The right team is crucial. “You must have board members with connections to donors,” says Newsom. Some board members will solicit, some will build and steward donor relationships, and others will act as spokespersons. Operate: Deliberate and focused operations are key. Part of that focus, says Leet, is understanding the need for additional financial — and potentially personnel — resources during a campaign. “Failure to do this can lead to a campaign stalling out after the energy of its initial launch.” Celebrate: At successful campaign completion, celebrate. But don’t let down afterward; plan ahead and transition directly into the next strategic effort. Major campaigns support new initiatives, but they also create cohesion. When volunteer leaders are part of the planning process and work toward a common set of goals and priorities with internal constituents, they often are empowered to spread the word about the campaign. The resulting enthusiasm and intensity can advance a nonprofit’s strategic plan faster and further than during a non-campaign year. The bottom line? “Don’t obsess about just the fundraising dollars during a campaign,” says Leet. “Leverage the campaign as a productive tool to achieve other important goals, such as acquiring new donors and consistently renewing them to grow the base of support.”
Campaigns can and should have an impact on overall giving to the institution. In the CASE campaign report of 2013, 20 percent of institutions reported raising between 176 and 200 percent more during a campaign vs. a non-campaign cycle.
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WE PUT SOME OF THE VALLEY’S TOP BUSINESS EXPERTS IN ONE PLACE. Business Resource Center. You need timely, relevant information to help you manage your business. But finding it can be a hassle. That’s why SRP has partnered with local business organizations to bring you professional insights on everything from marketing and human resources to financing and forecasting. All in one place. All from experts in their fields. SRP is happy to provide this free service, because what’s good for business is good for all of us. Learn more at srpbizresource.com.
JANUARY 2017
Scottsdale Area Chamber of Commerce
Expert HR Series – Motivating Employees from the Inside Out Tues., Jan. 24 | 7:30a – 9:00a The Mountain State Employers Council is working with Scottsdale Area Chamber of Commerce to offer businesses a series focused on Human Resources. Each seminar will have a different topic, such as hiring practices, social media and legal issues today. This informal series is designed to be a discussion between human resource representatives and is facilitated by a Human Resource professional or staff attorney. This month, the focus is a discussion on employers motivating their employees. Employers count on motivated, highly engaged employees to deliver high levels of performance. However, in the current environment, multiple studies have uncovered widespread employee disengagement. Today’s jobs require more initiative, creativity, flexibility, judgment and a different kind of motivation. Research shows that “intrinsic” rewards enhance commitment and energize individuals to keep performing at their best. Through instruction and group discussion, participants will examine a variety of motivation models and gain new insights and tools to make jobs more meaningful and rewarding and create more positive outcomes for the organization and employee. The monthly series continues through April. Scheduled seminars are “Managing Employee Health Issues, Disabilities, and Job Accommodations: A Practical Guide to the ADA,” with speaker Ellen McKitterick (Feb. 22); “Flex and Remote Work: Does the Office Have an Advantage?” with speaker Jennifer Ward (March 28); and “Hiring Success,” with speaker Karen Stafford (April 25). —Mike Hunter
Bureau of Industry and Security and Arizona District Export Council
2017 Complying with U.S. Export Controls Seminar Wed. & Thurs., Jan. 25 & 26 — 7:30a – 5:00p This two-day program is led by the Bureau of Industry and Security’s (BIS) professional counseling staff, and provides an in-depth examination of the Export Administration Regulations (EAR). The program will cover the information exporters need to know in order to comply with U.S. export control requirements on commercial goods. This program will focus on what items and activities are subject to the EAR, steps to take to determine the export licensing requirements for an item, how to determine the export control classification number (ECCN), when a business can export or re-export without applying for a license, export clearance procedures and record-keeping requirements, and how to submit an application for an export license. Presenters will conduct a number of hands-on exercises that will prepare attendees to apply the regulations to their own company’s export activities. This program is well suited for those who need a comprehensive understanding of their obligations under the EAR. Technical, policy and enforcement professionals from BIS, as well as specialists from other agencies will participate in this program. —Mike Hunter $595 (includes continental breakfast, lunch and materials)
$20
Embassy Suites by Hilton Scottsdale Resort
Mountain States Employers Council
5001 N. Scottsdale Rd., Scottsdale
7975 N. Hayden Rd., Scottsdale
exportaz.org
scottsdalechamber.com
SAVE THE DATE
Upcoming and notable 3rd Annual Tribute to Leadership Gala Feb.
Sat., Feb. 11
11
YWCA’s Tribute to Leadership is a special evening set aside to recognize individuals and corporations that have generously donated their time and talents to the community. ywcaaz.org Expert HR Series Feb.
22
Wed., Feb. 22
Mountain States Employers Council presents “Managing Employee Health Issues, Disabilities and Job Accommodations: A Practical Guide to the ADA.” scottsdalechamber.com Human Rights Campaign Arizona Gala 2017 Feb.
25
Sat., Feb. 25
The HRC Arizona Gala is Arizona’s way of recognizing heroes who have moved equality forward, while supporting the Human Rights Campaign. hrcazgala.org
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Sun., Jan. 1 — Hanukkah Ends Sun., Jan. 1 — New Year’s Day
Mon., Jan. 16 — Martin Luther King Day Fri., Jan. 20 — Inauguration Day
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JANUARY 2017 Thurs., Jan. 5
5:30p – 7:30p
Setting U Up for Success U&Improved In this workshop, U will uncover the critical components of effective goals and help attendees identify where they’ve been and where they want to be, discover the 5 Stepping Stones of Success, and learn how to create an action plan to reach their goals. $149 Courtyard Marriott Salt River Scottsdale
5201 N. Pima Rd., Scottsdale
uandimproved.com Thurs., Jan. 5
Tues., Jan 10
9:00a – 5:00p
Tues., Jan 10
11:00a – 1:00p
Business Law and Fundraising Fundamentals for Startups and Advisors
Speaker: May Busch
Business Law Seminar Group LLC
Speaking will be May Busch, international leadership consultant, former COO of Morgan Stanley Europe, and author, as she provides insight into leaping forward in one’s career. Being “good at your job” is no longer enough, as there are dozens of hidden rules to follow and skills to master in order to succeed and thrive.
Greater Phoenix Chamber of Commerce – Professional Women’s Alliance
A comprehensive one-day seminar for building one’s company on a solid legal and regulatory foundation, raising funds successfully and legally, and avoiding common missteps that distract and derail new businesses. CO+HOOTS at Midtown Phoenix
Phoenix Country Club
221 E. Indianola Ave., Phoenix
Learn strategies and tools from featured guest speaker Hannah Brown, financial advisor with Waddell & Reed. Brown focuses her practice on working with women through challenging times. This event will provide strategies on overcoming the mental roadblocks that can hinder women when it comes to making wise financial decisions. $20
2901 N. 7th St., Phoenix
YWCA Conference Room
phoenixchamber.com
arizonacommerce.com 1 1:00p – 4:00p
6 Fri., Jan. 6
Arizona: Selling to the Federal Government U.S. Small Business Administration Attendees will learn how to sell their goods and services to the Federal Government. This seminar teaches small businesses about federal government contracting programs for small business. Seminar will include discussion about government contracting, 8(a) certification, Hubzone program information and more. Free U.S. Small Business Administration Arizona District Office 2828 N. Central Ave., Phoenix
2999 N. 44th St., Phoenix
ywcaaz.org
3 Wed., Jan. 4
YWCA
Free for all. With lunch: $30 for members; $450 for non-members
$225
11:00a – 1:00p
Your Mind & Your Money, Overcoming Mental Roadblocks
10
Noon – 1:30p
2017 Legislative Forecast Luncheon Arizona Chamber of Commerce and Industry Info coming I have emailed them to get a description, still waiting Price The Sheraton Grand Phoenix 340 N. 3rd St., Phoenix arizonachamber.com
sba.gov Fri., Jan. 6 Wed. – Fri., Jan 4 – 6
Wed.: 6:30p – ??; Thurs. & Fri.: 8:00a – 5:00p
The Unstoppable Confidence Networking Conference
‘Meet the Elected Officials’ Breakfast 2017
Tish Times
Chandler Chamber of Commerce
Event is designed to catapult entrepreneurs’ and business leaders’ confidence, proficiency and strategy for networking, empowering them to become successful, confident and profitable connectors.
Meet the 2017 Arizona State Legislators, Federal, Local, and School Governing Board Officials. The chamber will also be unveiling its legislative agendas and priorities for the coming year.
$297
Members: $20; non-members: $30
Heard Museum
Hilton Chandler
2301 N. Central Ave., Phoenix
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INBUSINESSMAG.COM
For more events, visit “Business Events” at www.inbusinessmag.com
2929 W. Frye Rd., Chandler
chandlerchamber.com
b-unstoppable.com
JAN. 20 1 7
7:30a – 9:30a
Please confirm, as dates and times are subject to change.
Wed., Jan. 11
Thurs., Jan. 26
11:30a – 1:30p
6:00p – 9:30p
Leads Over Lunch Charity Expo
4th Annual Chinese Auction Benefit Dinner
Phoenix Metro Chamber of Commerce
Gilbert Chamber of Commerce and MidFirst Bank
Group is not industry specific. Guests are welcome to “check it out” before committing to becoming a member. This will be a special luncheon that will focus on all of our charitable organizations. Each organization will have a display table and will share their mission and vision for the coming year.
This special event will feature more than 75 raffle items to raise funds with a lively and fast-paced Chinese auction benefiting the Gilbert Chamber of Commerce. MidFirst Bank will assist in the collection of quarters and will match donations for an additional contribution of up to $750.
Members: free; non-members: $10
$35; after January 19: $45
Rick Bronson’s House of Comedy
5350 E. High St., Phoenix
The Falls Event Center
phoenixmetrochamber.com Thurs., Jan. 12
Thurs., Jan. 26
11:30a – 1:00p
11:30a – 1:30p
Lunch and Learn: YOU and the Media – It’s a Winning Team!
Luncheon with speaker David Jacofsky
Arizona Technology Council
Economic Club of Phoenix
With the expansion of the digital age, everyone is talking about the changes to social media platforms and how to promote their business online … but what about the rest of media? Attendees will learn how to grab an editor’s attention while also learning about the different ways to work effectively with public relation firms. A panel of media experts, which includes AZ Big Media Editor-In-Chief Michael Gossie and public relations professionals, will offer advice and tips on better promoting one’s business.
Experts and leaders in every industry, from pilots to musicians to financial analysts to surgeons, once were convinced that their industry required some degree of art over science. All industries go through a predictable phased transition, from professing that their labor and work can’t be measured nor automated to the disruption seen when it is proven that computers and processes can outperform everyone in every industry. Dr. David Jacofsky will discuss these phases, and share how his company has successfully been driving this change in healthcare.
Members: free; non-members: $15 AZ Big Media
3111 N. Central Ave., Phoenix
$85
aztechcouncil.org
11
4635 E. Baseline Rd., Gilbert
gilbertaz.com
18
19 Thurs., Jan. 19
Wed., Jan. 18
8:30a – 2:00p
2017 Phoenix Golf Tournament Arizona Technology Council Eighth annual Phoenix Golf Tournament. This scramble format tournament brings industry leaders and technologists together for a day of networking and sportsmanship. Each registration includes a sleeve of golf balls and lunch for all players. The tournament will be followed by lunch, raffle prizes and awards presentation. Members: $150; non-members: $175 Troon North Golf Club 10320 E. Dynamite Blvd., Scottsdale aztechcouncil.org
Camelback Golf Club
7847 N. Mockingbird Ln., Scottsdale
wpcarey.asu.edu
24 5:00p – 7:00p
26 Tues., Jan. 24
7:30a – 9:00a
Art from the Heart
Achieving Success as a Young Professional
Glendale Chamber of Commerce
Greater Phoenix Chamber of Commerce – Valley Young Professionals
Check out more than 350 paintings, drawings and sculpture from more than 200 Arizona artists in this year’s show. Proceeds benefit two art scholarships at Glendale Community College; grants to local art teachers for classroom supplies; and grants for youth summer art classes, mural projects and art programs for at-risk kids. Festivities include food, drinks (including wine and beer), music and a premium raffle prize.
Attendees will hear valuable insight from the 2016 ATHENA Young Professional Award finalists on achieving success as a young professional. As up-andcoming businesswomen who have already made an impact on our community, the ATHENA finalists will focus on professional development and what steps young professionals should take to advance their careers and skill sets. VYP/Members: free; non-members: $20 Fennemore Craig
2394 E. Camelback Rd., Phoenix
phoenixchamber.com
Members: free; non-members: $40 Saguaro Ranch Park – Fruit Packing Shed Gallery
Tues., Jan. 24
9802 N. 59th Ave., Glendale
Expert HR Series – Motivating Employees from the Inside Out
glendaleazchamber.org
7:30a – 9:00a
Scottsdale Area Chamber of Commerce Today’s jobs require more initiative, creativity, flexibility, judgment and a different kind of motivation. Through instruction and group discussion, participants will examine a variety of motivation models and gain new insights and tools to make jobs more meaningful and rewarding and create more positive outcomes for the organization and employee. $20 per session; $100 for the series Mountain States Employers Council
7975 N. Hayden Rd., Scottsdale
scottsdalechamber.com
If your event is directed to helping build business in Metro Phoenix, please send us information to include it in the In Business Magazine events calendar. Full calendar online. Events@inbusinessmag.com
39 20JAN.1 7 INBUSINESSMAG.COM
OUR SUBJECT IN-DEPTH
Quantifying Love in Business This qualitative factor generates measurable results by Jonathan Cottrell
In this age of analytics, big data, business intelligence and data science, it is commonly understood that one must measure something if one wishes to manage it. Simple enough. But when it comes to something that is explicitly qualitative — a healthy, loving business culture — how might a leader go about quantifying the impact of such a workplace? Can love really be measured? It turns out that the results of such workplaces extend far beyond the emotional and psychological well-being of its staff. In fact, the results are staggering.
MITIGATING LOSSES
Love within business cultures cannot exist without healthy relationships between managers and employees. Unsurprisingly, the statistics reveal: • 60 percent of employees feel their relationship with their employer positively impacts their focus or productivity at work, • 44 percent say such relationships positively impact stress levels, and • A remarkable 91 percent of workers at companies that support well-being efforts have a positive relationship with their managers.
A serial starter, community builder and self-proclaimed cranial nudist, Jonathan Cottrell serves entrepreneurs and their communities in Love as the chief entrepreneur officer of Hopscratch and early instigator behind local movements like #yesphx and PHX Startup Week. hopscratch.com.
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One could start by looking simply at what’s lost in the economy when businesses fail to effectively engage their employees. Gallup reports that $30.5 billion is lost every year with millennial turnover alone. Unfortunately for business owners, according to ERE Media, it costs 30 to 50 percent of annual salary levels to replace entry-level employees, 150 percent to replace mid-level employees, and a gigantic 400 percent among high-level or specialized employees. Ouch. Gallup also shows that employee engagement drops to an abysmal 2 percent among teams with managers who ignore their employees, compared to 61 percent for teams led by managers who focus on their employees’ strengths. Given the choice, 45 percent of employees reported that, for reasons exactly like this, they would be likely or very likely to look for other jobs outside their current organization within the next year. On the other hand, Bright Horizons reports that employees who work for “dream companies” are 11 times more likely to stay at their company than those in “dream jobs,” are 41 percent more satisfied with their job, and are 3.5 times more likely to say that their job inspires them. Clearly, love is an effective countermeasure that can drive down the turnover many businesses face.
INCREASING OUTPUTS
Quantifying love in business doesn’t require a look at only negative numbers, either. There’s a high increase in productivity when workplace cultures are healthy. Employees who believe their managers can name their strengths are 71 percent more likely to feel engaged and energized. Every business owner should desire such teammates, as highly engaged employees are: • Two times more likely to help someone at work, even if they don’t ask for help; • Two-and-a-half times more likely to stay at work late if something needs to be done after the normal workday ends; • Three times more likely to do something good for the company that is not expected of them; and • Five times more likely to recommend that a friend or relative apply for a job at their company.
Engaging employees like this requires only minor adjustments, too. For example, 54 percent of employees who feel they can approach their manager with any type of question are highly engaged, proving again that it is simply authentic care among humans that can very often lead to greater business results.
DOLLARS AND SENSE
While extra output is helpful, love even has a direct monetary impact, too. Reports have shown that 20 percent of new recruits would switch companies for less pay were they empathetic employers. In fact, 28 percent of employees would rather have a better boss than a $5,000 raise. Furthermore, while bonuses never hurt anybody, nearly one-third of employees would much rather be recognized in a companywide email from an executive than receive a bonus of $500. While a culture of recognition, care, engagement and, yes, love should start with a business owner, it shouldn’t stop there, either. According to Gallup, workers’ most memorable recognition comes from an employee’s manager (28 percent), high-level leader or CEO (24 percent), the manager’s manager (12 percent), a customer (10 percent) and peers (9 percent). Everyone has a role to play.
A SIMPLE EQUATION
There are so many other ways to measure the effects of a healthy business culture. But in the end, it’s a rather simple rule of life and business: Treat others how you want to be treated. Contrary to popular belief, this attitude in action will impact far more than the psychological and emotional health of workplace staff. Love equals results, and that’s the bottom-line.
Love in Business: A Three-Part Series The Integration of Love and Business (Nov. 2016) Loving Well, Sans Weirdness (Dec. 2016) Quantifying Love in Business (Jan. 2017)
When trying to increase employee engagement — and thus results — recognition can be one of the easiest things to implement. According to BambooHR, 30 percent more of the workforce is satisfied when even an informal recognition program is in place at their company. In fact, 75 percent of employees receiving at least monthly recognition, even if informal, are satisfied with their job.
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Put your business on the road to sweet success
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Apply for a Wells Fargo Equipment Express® loan today Growing your business is how you’ll achieve the dreams you have for yourself and your family. Wells Fargo is here to help. Our Equipment Express loan is a flexible way to purchase the new or used vehicles or equipment you need to move your business forward. Stop by or call and speak to your banker today. Finance cars, trucks, trailers, commercial vehicles, or other business equipment
© 2014 Wells Fargo Bank, N.A. All rights reserved. Member FDIC. (1211586_13013)
WITHOUT GREAT PEOPLE, EVEN THE BEST TOOLS JUST SIT THERE. Strategies That Drive Your Organization Forward Few firms match The Phoenix Philanthropy Group’s direct and diverse experience in fundraising, strategic planning, and organizational development. With national and international expertise, we are one of the most successful and experienced firms in the nation. Learn more about our talented team members, range of services and how we can help propel your organization to success at www.PhoenixPhilanthropy.com.
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www.phoenixphilanthropy.com
WE VALUE WHAT WE OWN
WATER & WADING Land Rovers have long been all-terrain vehicles with a very practical off-road element. In fact, most dealerships have a track they can take prospective buyers on to demonstrate the vehicle’s characteristics. The Sport SE has a wading depth of 23.6 inches and a turning radius of 38.1 feet.
BY MIKE HUNTER
2017 Range Rover Sport SE Known as the luxury SUV brand around the world, Land Rover has continually shaped the market with multiple models to accommodate for size, price, performance and terrain. The 2017 Range Rover Sport SE comes at a time when the market is being dominated again by sportier and more efficient SUVs. The Discovery may be the perfect option. The 6-cylinder, 3.0-liter, Turbocharged I-4 engine is a master of design and efficiency. It outputs an impressive 340 horse power and 332 pound-feet of torque. With a max speed of 125 mph and a 0-60 clocked time of 5.8 seconds, this midsized SUV can perform and please drivers who are used to
2017 RANGE ROVER SPORT SE City: 17 mpg Hwy: 23 mpg Transmission: 9-speed Automatic
more power under the hood. The eco efficiency of this vehicle is getting great acclaim in that its technologies are leveraged to ensure smooth transmission, fuel efficiencies and terrain alternatives to improve carbon dioxide emissions output. The sleek and simple design is a new trademark look that Land Rover has accomplished across all of its models. This midsized option is well-proportioned, resulting in a modern and compact vehicle. The sleek exterior comes inside to evoke a cockpit that is comfortable and adorned with only the best to enhance the overall experience and comfort. The three rows of seating accommodate five adults and two children comfortably while allowing for added room and an open cabin. The premium leather and convenient instrument panel design that Land Rover is known for make driving this vehicle a pleasure. Land Rover’s premium audio system boasts 10 speakers and engulfs the cabin with noise-cancelling sound. The eight-inch color touchscreen is a virtual infotainment center, with audio, navigation, eco data, Bluetooth® and multimedia connectivity and more. Land Rover landroverusa.com
0-60: 5.8 sec MSRP: $ 65,650
The smartphone is any businessperson’s best asset. To protect that asset, one may wish to obtain an insurance plan through one’s carrier. However, to offset any downtime, it may be necessary to have the right case to protect this asset from any injury. Here are our picks for the best, given what a businessperson may be doing to destroy his or her phone.
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Lifeproof Known to cover life’s accidents and adventures, this brand boasts four areas of proofing: water, dirt prof, snow and shock. Cases are available for the most popular devices, including Apple, Samsung and Motorola. $80 to $130. lifeproof.com
Otterbox Recognized as an innovator of protective solutions for the leading global handheld manufacturers, wireless carriers and distributors, Otterbox is a leader in the protective case world and has many different models to handle virtually any situation. Options for all major brands of smartphones. $40 to $250. otterbox.com
Go Black: The black design package for the Discovery Sport includes 19-inch, 5-spoke, Style 521 alloy wheels; a black contrast roof; black mirrors; and black lettering and badging.
Trident Whether it’s protecting the device or making it more efficient, Trident offers seven different product series that support a broad range of mobile devices to protect the “impacts of your life.” Major smartphone brands are supported. $40 to $80. tridentcase.com
Photos courtesy of Land Rover (top and far left), Lifeproof, Otterbox, Trident (bottom)
Phone Bashing
BY MIKE HUNTER
MEALS THAT MATTER
The Vig: Four Neighborhood Hotspots Grilled potatoes, wilted greens, mango chutney & yellow pepper vinaigrette $17
VIGAZZ BURGER Bacon, smoked Gouda, tomato, grilled red onion, spicy mayo & mustard on a Kaiser roll $11
Fillmore — 606 N. 4th Ave., Phoenix; (602) 254-2242 Uptown — 6015 N 16th St., Phoenix; (602) 633-1187 McCormick Ranch — 7345 N. Via Paseo Del Sur, Scottsdale; (480) 758-5399 thevig.us
It’s still one of the most popular meals in
Pizzeria Bianco Town & Country
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and celebrities of all kinds,
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always come back.
1916 E. Camelback Rd.,
(623) 847-3301
4743 N. 20th St., Phoenix
Phoenix
lapiazzaalforno.com
(602) 368-3273
(602) 248-2480
pizzeriabianco.com
theparlor.us
lunchtime pizza one can find in the Valley. Pizzeria Bianco
INBUSINESSMAG.COM
Arcadia — 4041 N 40th St., Phoenix; (602) 553-7227
La Piazza al Forno
Here are our picks for some of the best
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The Vig
Pizza, Pizza, Pizza America and always a great idea for lunch.
JAN. 20 1 7
which can be customized to include bacon, chicken, chorizo or broccoli atop the campanelle pasta smothered in American, white cheddar and gruyere cheeses. While the food will keep guests coming back, the atmosphere of fun is also a great enticement. Each location has its unique look and appeal. The Uptown location is set in an historic former bank building with an enclosed patio and seating that makes for a great place to do an event. The patio at the Arcadia location is always a hot spot on weekends and in the cooler evenings, with live music and plenty of seating in what feels like a modern backyard. Patrons can play bocce ball or any number of games to further their experience. Each location has lively weekend events, such as brunch DJs at the Fillmore location and a jampacked happy hour at the McCormick Ranch Vig.
Named as one of Food
Fundraise for Your Cause. The Vig offers its locations to generate funds for local organizations by donating 20 percent of the total pre-tax sales for organized timeframes Monday through Wednesdays in an effort to give back within each of the communities surrounding the Vig locations. thevig.us/fundraising
Photos courtesy of The Vig (top and far left), Pizzeria Bianco (bottom)
FRESH HERB GRILLED SALMON
The Vig restaurants began with a first location in the Arcadia neighborhood — to great acclaim. The intent was to create a family-friendly and fun neighborhood tavern serving American and tavern-inspired comfort food at a good price with the highest-quality ingredients. Today, there are four Valley locations; each has its unique amenities, but all share in the lively and flavorful concept. The menu at The Vigs ranges from salads and healthy plates to rich and delectable dishes — all comfort food and all delicious. For the most part, each location has the same menu. For lunch, a favorite is the Lean & Green Steak Salad made with flat iron steak, seasonal vegetables and arugula tossed in a red wine vinaigrette with gorgonzola, parmesano, reggiano cheeses and an aged balsamic. The Prime Vig Dip is also a satisfying choice as it is made with medium rare sliced beef, smoked Gouda and grilled onions on a pretzel bun spread with a chipotle mayo and then accompanied with au jus. One of the special dishes is the Vanilla Braised Short Rib Tacos, which are rich and delicious and come on a flour tortilla topped with Asian sweet glaze, house-made kimchi, spicy aioli and crispy shallots. Also an all-around favorite is the Holy Mac & Cheese,
GLOBAL CHAMBER
®
Global Chamber® Events
WINTER 2016
phoenix.globalchamber.org/events
Global Chamber® Tucson
Thursday, January 19 Global Expansion Tucson’s Modular Mining Systems 4:00pm – 5:30pm MST tucson.globalchamber.org/events Global Chamber® Phoenix
Tuesday, January 25 Magnificent Global Leaders Virtual Event/Webinar 3:00pm MST phoenix.globalchamber.org/events
SPOTLIGHT EVENT Global Chamber® Phoenix
Tuesday, January 17th CEO Forum on Funding for Growth Skysong 8:00am – 9:30am Featuring Lee Benson, CEO of Able Aerospace and ETW. phoenix.globalchamber.org/events Global Chamber® Phoenix
Friday, January 27 Global Data Management Lunch ‘n Learn 11:30am – 1:00pm MST phoenix.globalchamber.org/events
Inside this Section
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Global Chamber® Teams with U.S. State Department Global Chamber® and U.S. Trade and Development Agency Stories of Success in Japan Being Smart about Trade and Global Business ‘Globies’ Always Find a Way Global Case Study with Student Entrepreneurs Global Chamber® Virtual Events Help You Connect and Grow!
Grow More Easily
by Doug Bruhnke, CEO and Founder of Global Chamber®
You want to grow your business, but you can’t be everywhere to do it. You don’t have an unlimited budget — time or money. And so how do you make multi-metro growth more attainable? That’s a problem we’ve been working on for two years. Yes, we’re two years old here at Global Chamber®. My, how time flies! When we started this journey, we had a somewhat vague aspiration to grow to 500 cities around the world. In our first year, we further refined that to a specific goal of 525 metro areas by 2020 and, along the way, 110 metros by the end of 2016. We just hit 115, so we’re on track! As with your business, the challenge to grow is always tempered by the ability to staff and fund. We don’t have unlimited resources, and you don’t, either. And, like you, I’m sure we’ve had things go wrong along the way. For us, first and foremost, was choosing the wrong website technology. That slowed us down for a year. But what doesn’t kill you makes you stronger, and we came roaring back with a Web technology from outside the U.S. that saved us. Here we keep going and growing! You can, too! We’ve read that 85 percent of the business opportunities in the next five years will be outside the US. — 99 percent of them will be outside our metro. Cross-metro and crossborder business isn’t for everyone. But more
companies need to think about it because, increasingly, the opportunity to grow comes from somewhere else. We’ve heard some experts say that companies that aren’t global won’t survive past the next five years. That seems pretty extreme, but why wait to see if it’s true? Change your paradigm and you’ll likely have a better chance to reach 2020 and beyond a lot wealthier and happier. Conversely, we’ve heard that “globalization is dead” as well. Not exactly. Businesses around the world are capturing more and more opportunity every hour and every second of the day. Code and key words don’t change anything … executives will do what’s right for their business. And so, if some U.S. companies think globalization is ending, then companies from another country will take their place. What’s pretty cool is, we’re building out a worldwide system that touches every city, town and company in the world. We’re making it easier for you to grow from here to the metro across the state line or the country border. It’s hard to know what opportunities are the best, the most reliable and the ones that pay. Global Chamber supplies a lot of that information directly and indirectly — through members, connections and collaborators — and then we connect you. Want to grow? Join us! GlobalChamber.org
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Global Chamber® Teams with U.S. State Department
by Kim Bridges, Marketing Communications Director at Global Chamber®, and Nia Febriyanti, Product Manager of Bank Danamon Indonesia.
This past fall, once again Global Chamber® was selected by the Department of State’s Professional Fellows Program (PFP) to host two more Professional Fellows from its program, designed to teach young leaders around the world about the U.S., and foster the creation of long-term business relationships and business opportunities that grow wealth on every side of every border. This fall, we hosted Ms. Thongmala Keola (or, as she prefers to be called, Oi), trade official of the Trade and Product Promotion Department, Ministry of Industry and Commerce in Vientiane, Laos; and Ms. Alexandra Shitova (or Sasha), head of Microfinance Department, Nonprofit Partnership Rostov Regional Agency for Business Support in Rostov-on-Don, Russia. During this fall’s fellowship, Sasha and Oi worked alongside the Global Chamber team at our global headquarters in SkySong, where they gained experience in running global startup businesses. We’re not the only startup — each of our metros around the world is a startup, too. “Their knowledge and expertise of business practices in their respective metros was a tremendous asset to Global Chamber®,” says Doug Bruhnke, CEO and founder of Global Chamber, “and we hope that the lessons learned here will ultimately help them in their professional global business development.”
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Global Chamber®
Ms. Alexandra (Sasha) Shitova and Ms. Thongmala (Oi) Keola (left to right)
Oi’s main responsibilities back home in Laos are serving as a project coordinator of the U.N. Trade Cluster Initiative and as a specialist on international relations and exports strategy. “I hope to use what I’ve learned at Global Chamber® to help entrepreneurs in my region increase their volume of exports and build stronger brands on the international stage,” says Oi. Sasha has a rich experience in business consulting and is very interested in the different approaches to business growth and cross-border trade and investment. “I hope that my experience with Global Chamber® will enable me to come up with new service opportunities for my organization to provide to our customers as they work to grow their business and foster community improvement,” says Sasha. PFP is a two-way exchange that embraces the power of individual citizens to find creative solutions to challenges in their home communities. The program commences with a visit to the U.S. by a professional fellow — who has been selected from hundreds of applicants — to work within a selected U.S. business, and concludes with an exchange program that brings an individual from the U.S. to help implement a selected program in the fellow’s home country.
In fact, when Oi and Sasha arrived at Global Chamber, CEO and Founder of Global Chamber Doug Bruhnke was in Indonesia working on another professional fellow’s exchange program that was selected earlier this year. Nia Febriyanti, product manager of Bank Danamon Indonesia, a PFP alumnus whom Global Chamber hosted earlier this year, was awarded financing for her project entitled “Enhancing & Broadening Knowledge in Indonesia’s SME Sector to Grow Business Globally.” Bruhnke was ultimately selected to be the business leader implementing the program, which also resulted in a connection that is starting Global Chamber in Indonesia. It all works together. Since 2010, more than 2,600 participants in the State Department program from more than 90 countries have taken part in PFP in cities across the U.S., with more than 1,200 American hosts having participated in reciprocal exchanges overseas. This is an important diplomatic program developed by the U.S. State Department, one that makes a difference in peoples’ lives, and Global Chamber is honored to be part of it. Contact us to learn more. Professional Fellows Program exchanges.state.gov/non-us/program/ professional-fellows-program
Global Chamber® and U.S. Trade and Development Agency by Kim Bridges, Marketing Communications Director at Global Chamber®
Global Chamber® announces a new partnership relationship with the U.S. Trade and Development Agency (USTDA). Through its Making Global Local initiative, the USTDA assists U.S.-based businesses in their global business growth by establishing links between business and foreign project sponsors, bringing private-sector solutions to development challenges abroad. Global Chamber and 25 of its U.S.-based chapters are joining this initiative to help members access global markets with less risk. Last year, the USTDA reverse trade missions program connected nearly 700 U.S. firms to foreign decision makers across 69 American cities. We’re expanding the success of the program!
“This is just an amazing program that provides tangible results. We are excited to work closely with USTDA to actively engage our members with cross-border opportunities that will help them expand their business outside of the U.S.,” says Doug Bruhnke, CEO and founder of Global Chamber. “We’re extremely proud that Making Global Local has grown into the Agency’s largest domestic outreach campaign,” says Ashley E. Chang, USTDA’s director of public engagement. “Partnering with Global Chamber will help us connect a greater number of businesses in more U.S. communities with export-promotion programs by USTDA.”
The U.S. Trade and Development Agency helps companies create U.S. jobs through the export of U.S. goods and services for priority development projects in emerging economies. USTDA links U.S. businesses to export opportunities by funding project planning activities, pilot projects and reverse trade missions while creating sustainable infrastructure and economic growth in partner countries. Making Global Local ustda.gov/program/making-global-local
GlobalChamber.org
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Stories of Success in Japan by Nobuo Yoneyama, Executive Director of Global Chamber® Tokyo
Japan is the third-largest economy in the world and the second-largest consumer and brand products market in the world. Japan is a pro-U.S. country with sophisticated consumers and a large potential opportunity for non-Japanese suppliers to compete and thrive. Recently, our Global Chamber® Tokyo team had the opportunity to host and help U.S. companies that are members of Global Chamber Albuquerque, New Mexico, to find partners and distribution channels in Japan. All the companies that came to Japan are successful small and medium-sized enterprises (SMEs) in their home country, including a Native American jewelry maker who manufactures traditional, hand-woven beads; a lavender essential-oil-based body care products manufacturer; a rehabilitation tape supplier for medical and athletic purposes; and a water treatment services engineering company. As the executive director for Global Chamber Tokyo, I asked these companies about their capabilities and opportunities, and then began to help them navigate their next steps to organize individual meetings, helping them to find potential distributors or retailers, and gather and understand critical market intelligence. Our help at
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Global Chamber®
Global Chamber is quite customized and unique. The key words I found during their visit were “vision,” “value” and “stories” — local stories that appeal to Japanese affluent consumers. Fortunately, the Japanese companies we met shared the same or similar vision and value as the American visitors. These U.S. companies told their own stories. For instance, the jeweler shared his Native American success stories and the other business founders told stories of local lifestyle and business styles — all of which sounded unique to me and certainly to potential Japanese consumers. These stories became the foundation of mutual trust on which new business began across borders. We are all people — Japanese, Americans and executives on every side. So, would the results have been different between the U.S. and Japanese businesses had this visit occurred after the now likely demise or delay of TPP? Surely, the government of Japan and major industries are hoping that the United States stays committed to the TPP. Japanese Prime Minister Abe met in person with U.S. President-elect Donald Trump to gain some visibility in the JapanU.S. relationship for both security and
economy. But there is still a great amount of uncertainty for the destiny of the TPP. It is noticeable here in Japan that the series of domestic debates of pro- and conTPP brought some public attention to vested interest groups such as the Agricultural Coop and so forth. It used to be politically correct for Japanese politicians to support the Agricultural Coop, which could have funneled the votes for individual local politicians who are committed to supporting the coop. But, now, a sort of national consensus was made to liberalize its agricultural market to some extent thanks to the TPP debates, and its liberalizing trend is now irrevocable regardless of the uncertainty of the TPP. So, despite the fact that political uncertainty is here and there with regard to the free trade agreement, the trend in Japan to a more open and deregulated market in order to welcome foreign investment and people continues to be strengthened. Multinational corporations are on their own to ride on the trend, while SMEs still need good sources of intelligence to navigate for their international business exploration. The Global Chamber® network and local hands-on support has (and will continue to) help U.S. businesses and positively impact global business. Learn more by contacting any of us.
Being Smart about Trade and Global Business by Doug Bruhnke, CEO and Founder of Global Chamber®
I just returned from an extended visit to Asia where I witnessed first-hand the rapid growth of consumer and business markets. Every day, hour and minute, more business is created. It’s stunning! Opportunity is everywhere. And so, the thought that progress with globalization will be slowed because folks in the U.S. Rust Belt say so, is not grounded in reality. Eighty-five percent of business opportunities in the world in the next five years is outside the U.S. Those consumer markets are not waiting for American companies to capture the opportunity. Companies there or in other countries are taking it. And smart U.S. companies are, too, by the way. Those U.S. companies haven’t and won’t stop, and we love working with them at Global Chamber®. And so, globalization is
marching on, no matter what politicians say. Capitalism trumps nationalism and pretty much any other ‘ism’ you can think of. And what about the Trans-Pacific Partnership (TPP), NAFTA and other trade deals? There’s certainly a lot of politicization of all these to make this a slippery slope, because everybody now has an opinion — often more emotion-based than reality-based. Remember this: Trade carries on. And how do American companies compete? They become more competitive with lower barriers, including tariffs, that these deals put forth. After years of negotiation among the 12 participating countries for TPP, 18,000 product tariffs for U.S. companies in the other 11 countries were to drop to zero — including electronics in Malaysia and beef in Japan. Without TPP, that
opportunity is likely lost for U.S. companies, but Australia will be happy to take the beef business in Japan with its trade deal, and China will say thank you for the electronics business in Malaysia with its deal with ASEAN countries. Life and trade goes on. And all countries who want their companies to be competitive need to be smart about it. Will the U.S. be smart about it? I’m not sure. But the companies will be. To learn more about how you can compete more easily around the world no matter what the politicians do, contact us.
GlobalChamber.org
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‘Globies’ Always Find a Way by Ty Richardson, Executive Director of Global Chamber® Trinidad-Tobago
The “Global Tribe” of business leaders — the “globies” — always finds a way to succeed. We’re resilient and flexible to constantly adapt, and so we often thrive in the entrepreneurial world. Last month, I had the opportunity to attend one of Europe’s largest startup and technology conferences, Slush 2016. This event is hosted by more than 2,000 volunteers and brings in more than 17,000 participants! It was large and great! This year with Slush 2016, as with every year, Helsinki, Finland, was abuzz with creative minds, business opportunities, innovative ideas and investment opportunities. Global Chamber® was “in the house!” Meeting young, startup entrepreneurs who are changing the world with innovations brings new insight into global opportunities for me and my members. One such startup I came across is Kgoshigadi
(thegreencitystartup.co.za), a South Africa company that produces biodegradable sanitary pads. This innovative solution helps resolve a serious health issue and provides women in this market an affordable way to stay in school each month and reduce the number of school days missed each year. This is just one of the stories and innovative solutions I came across during Slush 2016. This and other opportunities have taught me that the world around us is moving forward and problems are being solved every day. While there may still be a variety of positions and initiatives around the world that, in the short term, seem to inhibit global business, there are many more initiatives and programs out there that continue to build bridges and tunnels of commerce to connect nations, companies and people under the banner of global growth.
As we look forward to 2017 with the team, members, partners and affiliates we’ve amassed over the past year, we are excited about global potential. “Globies” will always find a way to work with people of, and in, every country of the world to meet needs and grow trade. We are global and unstoppable.
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Global Chamber®
@inbusinessmag
Global Case Study with Student Entrepreneurs by Henry Ines, Executive Director of Global Chamber® San Francisco
Students are our future, and it’s looking good on the global side of things! Global Chamber® San Francisco hosted the Global Case Challenge 2016, where undergraduate and graduate student teams from the San Francisco Bay Area and beyond were invited to compete and pitch innovative ideas and solutions addressing a particular global or local problem or issue. Students presented their ideas to a panel of judges and were evaluated on their performance and business plan. In addition to gaining valuable professional experiences, including a formal presentation for their new venture and their business plan in a competitive environment, First Place Team “Life Chair” from Yonsei University in South Korea. The co-founders Jin Seok Ha and Hee Won Jin are biomedical engineers. The team created an innovative and proprietary product design for a combo chair and personal flotation device. They were inspired to develop the product in the aftermath of the recent ferry tragedies in Asia. The judges were very impressed with the team’s presentation, product design, bold vision and potential for considerable social impact. Award Lunch with legendary Silicon Valley venture capitalist Tim Draper, founder of Draper Associates, DFJ and the Draper Venture Network, a global network of venture capital funds.
they met other like-minded globally oriented peers and had the opportunity to earn professional recognition and special accolades for their performance. The competition brought students together in an international student ideation and business pitch competition that demonstrated the power of innovation on a global stage. Students were asked to develop a new venture to uniquely address a particular global or local issue. The judges were impressed with all of the submittals and each team’s performance, passion and preparation. The awards for Global Case Challenge 2016 are:
Second Place Team “CarbonCraft” from San Jose State University (SJSU), USA. Matthew White and his team developed a unique online gaming and education platform focused on climate change, environment and sustainability issues. The platform will offer a one-stopshop for apps and games developed by both CarbonCraft and external developers.
Third Place Team “H2fl0w” from San Jose State University, USA. Comprised of students Michelle Vu, Manpreet Singh, Kent Tran, Mohak Rastogi and Emilie Wang, the team is developing an innovative water conservation and sensor-based product solution, which will allow homeowners to more effectively monitor water usage at each outlet.
Award Externship with Silicon Valley startup EVAOS, which develops, builds and sells innovative vehicle add-on systems that upgrade light-duty and medium-duty trucks into plug-in hybrid and all-electric vehicles. EVAOS currently offers upgrades for Ford F-150, F-250 and F-350 pickup trucks. Special thanks to EVAOS CEO Richard Simpkins for coming out and presenting the special award to the team!
Award Career counseling, coaching and preparatory sessions with Randstad Professionals, gaining invaluable insights and guidance to learn how to more effectively market and position themselves in the marketplace. To learn more about Global Case Challenge 2017, email sfo@globalchamber.org.
GlobalChamber.org
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Global Chamber® Virtual Events Help You Connect and Grow! by Dakota Drake, Operations Manager at Global Chamber®
Virtual events are an efficient and hasslefree way of staying apprised of what’s happening in global business. Organized by Global Chamber® and hosted by the CEO and founder of The Magnificent Leader, Patty Azar, the Global Chamber Magnificent Global Leader virtual events bring global business leaders engaging and useful information in the comfort of their office or home, anywhere in the world. Recent examples of speakers include the chairman of United States Export-Import Bank, Fred Hochberg, and Diana Harbison, director of the Office of Program Monitoring and
Global Chamber®
Global Chamber Phoenix and Tucson Chairman/CEO Sponsors
Evaluation for the U.S. Trade and Development Agency. Community and business leaders speak at Global Chamber virtual events to provide you global business information and innovative ideas to help you grow your business across borders with greater ease.
Polsinelli Squire Patton Boggs Thunderbird School of Global Management Vision Alignment President Sponsors Alliance Bank of Arizona Bank of America BMO Harris Bank InWhatLanguage Morgan Stanley Tiffany & Bosco Special Global Advisors Charles Bruce, Johnny Rockets, The Original Hamburger Hank Marshall, UK Honorary Consul in Arizona Melissa Sanderson, Freeport McMoRan Kiyoko Toyama Michael Patterson, Polsinelli
Our 2016 Progress on the Way to 525 Metros by Doug Bruhnke, CEO and Founder of Global Chamber®
We’re pleased to announce that Global Chamber® continues to grow throughout the world by adding chapters and growing our business team, on the way to fully covering 525 metros, in every country. New agreements these past months include a partnership with social impactors between Indonesia and the world. HIPMI (Himpunan Pengusaha Muda Indonesia) and Global Chamber have agreed to work together to build Global Chamber® member connectivity with every corner of Indonesia. Why does that matter? Did you know that Jakarta has 30 million people in the
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Global Chamber®
metro area? And that Indonesia will become a top 10 economy in the world by 2020? It already has surpassed the Netherlands and Switzerland. Now, through Global Chamber, you’ll have better access to opportunities in Indonesia and to every country in the world. From Jakarta to Singapore to Sydney to Barcelona, we are building more bridges to encourage foreign direct investment, foreign tourism, importing and exporting in countries worldwide. Grow globally through Global Chamber. Lower the risk of global business and have more fun, too!
Don Henninger, DH Advisors, Global Chamber Lee Benson, Able Aerospace Services Committees All Metros, Industries and Regions Contacts CEO/Founder: Doug Bruhnke, doug@globalchamber.org Global Marketing: Kim Bridges kim.bridges@globalchamber.org Business Services: Cesar Trabanco, cesar@globalchamber.org Membership: Dakota Drake, dakota@globalchamber.org
WINTER 2017
UNITING, STRENGTHENING, AND ADVANCING ARIZONA’S NONPROFIT SECTOR. ARIZONANONPROFITS.ORG
The Alliance of Arizona Nonprofits is an action-oriented group of partners across Arizona — both nonprofits and those in the community who support them — dedicated to uniting, strengthening and advancing Arizona’s nonprofit sector. The Alliance envisions an Arizona where all nonprofits are valued, empowered and thriving.
CONTENTS p. 2
Boardmembers Should Be Fundraisers
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On the Board and In the Spotlight
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Minimum Wage Increase Impacts Nonprofits
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The Nonprofit/For-Profit Connection: Big Brothers Big Sisters of Central Arizona and APS
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New Way to Connect with Alliance Members How Businesses Can Support Arizona Gives Day
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Benefits of Working with Nonprofits
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Arizona Nonprofits: Economic Power, Positive Impact
Don’t Put Charitable Giving on Your New Year’s Resolution List by Kristen Merrifield, CAE, Chief Executive Officer, Alliance of Arizona Nonprofits Gasp … Did I really just tell you to not put giving on your list of resolutions? Yes, indeed, I did. But why? New Year’s resolutions are a great way to inspire, nay force, yourself to do something good to improve yourself or those around you. Lose ten pounds, complain less, read a book a month, save more … give more. And yet, many of us find ourselves back to our same old habits by the end of January. The statistics are bleak: Only 8 percent of people who make New Year’s resolutions stick to them. In fact, if you want to start going to the gym, start on February 1 and you won’t have to fight anyone over the treadmill closest to the TV. While resolutions are, normally, rooted in the desire to do good for yourself or others, the practice itself may not be the best structure to truly make a change. While it’s easy to flip the page on your calendar and change from December to January, it may be unrealistic to simply “flip the switch” and become a different person. Instead, there may be some planning involved, some education needed, and some stepping stones put in place in order to really be most successful. This was indeed the case when I lost 50 pounds a few years ago. This wasn’t a New Year’s resolution success story; in fact, I had made the resolution many times over and never reached this goal. I actually started in March, and I began with the very small baby step of drinking two bottles of water every morning for three weeks. You may have often heard that it takes 21 days to create a habit, and I put that theory into practice, making another small change every three weeks. The idea was to build good habits over time, not to simply stop doing something one day and start doing something else the next. This holds true when we talk about charitable giving and the bigger idea of philanthropy itself. You may not consider yourself a philanthropist unless you have the ability to write a million-dollar check. But philanthropy, at its root, means having “the desire to promote the welfare of others.” When we engage in charitable giving, in any way or amount, we are building the spirit of philanthropy within ourselves and our community. But it doesn’t happen overnight. Instead of simply adding “giving more” to our list of resolutions, we can start with small steps over time to become a philanthropist in our own unique way and make an impact on causes that mean the most to us. The Alliance can help you find ways to meaningfully connect with nonprofits in Arizona throughout the year. Visit our website and click on the Connect with the Sector tab to learn more, or check out the article in this section. Finally, save the date for Arizona Gives Day coming up on April 4, 2017.
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ALLIANCE OF ARIZONA NONPROFITS
Fundraising Goes Hand in Hand with Nonprofit Board Membership by Nancy Grace, Graceful Fundraising, LLC Fundraising is an essential part of a nonprofit board member’s work. Yet for many, the very thought of asking others for money makes them want to run for the hills! Meanwhile, most nonprofit CEOs say that what they need most from their board is help in expanding the number of individual donors, connections in the community, corporate ties and foundation relationships — essential Fundraising & Development! A sector best practice includes board members fulfilling three primary roles: 1. Setting strategic direction 2. Monitoring and overseeing operations 3. Ensuring resources It is typically the last item — ensuring resources — that is the area nonprofit leaders need their board members to continually assist them with. Many people think of that most distasteful thing of “begging for money” when they think of fundraising. Yet it’s a program and process that has many pieces and parts. The asking part is a quite small portion of the total effort, and there is a myriad of ways board members can effectively help without necessarily doing a direct solicitation. These vary somewhat based on the nonprofit’s needs, but generally include doing the following: • First and foremost, making the largest possible personal donation (this sends an important message to all other donors that the organization is worthy of support); • Introducing people and companies who could help provide monetary support, in-kind support or volunteers; • Opening up their homes to host an inhome donor salon for prospective donors to get to know the organization; • Thanking donors through phone calls or hand-written notes; • Leaving a legacy by putting the nonprofit in his or her will or trust; • Participating in special event fundraisers and bringing other people along; • Using social media to get the word out;
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ALLIANCE OF ARIZONA NONPROFITS BOARD OF TRUSTEES BOARD CHAIR Kelly McCullough VICE CHAIR Sonia Perillo Audubon Arizona with the National Audubon Society SECRETARY Ellis Carter Carter Law Group
• Forwarding fundraising appeals and communication to friends, family and colleagues; and • Representing the nonprofit at important community events, including meetings and visits with donors. Being part of a winning fundraising team that benefits your nonprofit’s clients will make your volunteer service even more gratifying. And sometimes if you have success and enjoy the work that leads up to or follows solicitation (donor cultivation and stewardship), you might be more likely to dip a toe into donor solicitation. Being around donors and having the right mindset for making an ask will help enormously. Understanding that rather than taking from a donor you are giving ... an opportunity to make someone’s life better and leave the planet a better place. And who doesn’t want that? If you appreciate a nonprofit’s work and mission but don’t want anything to do with a fundraising program, that’s okay! Typically, there are all sorts of volunteer roles you could fill: advisory role, committee participant, program or event volunteer. But, alas, the role of governing board member takes dedication and a desire to help attract the necessary resources. Like the saying goes, “The best way to find yourself is to lose yourself in the service of others.” Nancy Grace is the principal in her own consulting practice, Graceful Fundraising, LLC. She regularly works to educate and inspire nonprofit staff and boards to become active and effective fundraising participants.
TREASURER Ron Stearns CliftonLarsonAllen Shaylinn Aleman Arizona College Access Network (AzCAN) Rhonda Bannard Inspired Connections Madeleine Coil United Way of Yuma County NONPROFIT LEADERSHIP COUNCIL CHAIR Pam Gaber Gabriel’s Angels Karl Gentles Back to School Clothing Drive Lee Greenfield Make-A-Wish Arizona Len Gutman American Heart Association/ American Stroke Association Kristen Merrifield, CAE Alliance of Arizona Nonprofits Amy Schwabenlender Valley of the Sun United Way Glenn Wike Arizona Community Foundation
WWW.ARIZONANONPROFITS.ORG
On The Board and In The Spotlight: Profile on Nonprofit Board Member Suzanne Walden-Wells How long have you served on this board? I am in my third year.
Name: Suzanne WaldenWells Company: DMB Job Title: Director of Community Life – Eastmark Board: Arizona Citizens for the Arts Board Title: Finance Committee Chair
What drew you to this organization? My interest in and passion for the arts was certainly a motivating factor, but just as important was the influence of Arizona Citizens for the Arts’s executive director, Rusty Foley. I have known Rusty for years and admire her unwavering dedication to lifting the arts and culture sector to its rightful place in Arizona. The arts have an economic impact of $500 million annually, and more than 50,000 are employed in creative industries throughout the state. It’s an important part of our tourism value proposition and the impact to education is undeniable. We should all understand that. What would you say is one of the biggest challenges for a businessperson serving on a nonprofit board? I feel the challenge is the same, whether you are a businessperson or a stay-at-home mom. It’s all about time management — ensuring that you are meeting your obligations and making a meaningful contribution to the organization you are
serving. Incorporating board commitments into my workday is an important first step. I am fortunate that my employer — DMB — has a genuine commitment to community service and supports my volunteer service, as well as that of many colleagues. How did you overcome that challenge? I think it’s important to focus on areas where my skills can make the most difference. There are things that are easy for me but may be very challenging for a nonprofit. Sometimes, the task is as simple as making a phone call to a colleague. It takes five minutes out of my day but can make a world of difference for the nonprofit. What about the biggest opportunity? The opportunity lies in learning new things and being exposed to new ways of thinking. High-functioning boards have members with diverse backgrounds, opinions and ideas. They debate then collaborate, which leads to better, more informed decisions. CONTINUED ON PAGE 4
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ALLIANCE OF ARIZONA NONPROFITS
Unintended Consequences of Minimum Wage Increase on Arizona’s Nonprofit Sector by Stuart Goodman, Goodman Schwartz Public Affairs While the phrase “unintended consequences” is often used to describe unwanted legislative outcomes, the recent enactment of Prop. 206, relating to increasing the Arizona minimum wage, was a self-inflicted wound by an unsuspecting electorate. Briefly, beginning on January 1, 2017, Prop. 206 will increase the statewide minimum wage from $8.05 per hour to an hourly wage of $10.00. Over the next four years, the hour wage will increase by increments of $.50 per hour until reaching $12.00 in 2020. Further increases, based on inflation, will occur thereafter. In addition, starting in July 2017, hourly workers will earn sick-leave benefits, based on the number of hours worked and the size of their employer. From a broad perspective, higher hourly wages are certainly a desirable public policy objective, as increased income will lead to a variety of benefits for both the community and the overall economy. However, the debate over statutorily increasing the minimum wage is fiercely contested, with both sides articulating the benefits and deficiencies intertwined within their respective arguments. Advocates cite the need for additional income that will improve the financial well-being of workers, increasing their likelihood to achieve selfsufficiency. Opponents assert that such policies will disproportionately impact smallbusiness interests that cannot afford the increase in personnel-related costs. However, what was lost in the debate was the impact on the nonprofit sector, as the impacts of Prop. 206 must be analyzed by each sector of the economy. That is, in broad terms, the for-profit sector largely possesses the ability to increase prices to cover the increase in hourly wages, or such interests may choose to invest in automation. Good or bad, the business sector has options. In contrast, the nonprofit sector is typically working with
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limited resources or government grants, so the passage of Prop. 206 effectively gives this sector the unenviable option of reducing staff or programs. Interestingly, Prop. 206 has the potential of increasing the demands on social services provided by nonprofit organizations, resulting from business staff reductions or job elimination through automation. Regrettably, the nonprofit community will be reducing staff and programs at a time when such services will likely be most in need, tearing at the heart of many mission statements. No doubt the passage of Prop. 206 reflects the populist mood of the country. Opponents lacked both the resources and the political courage to oppose the measure outright, given the optics of not supporting wage increases for those who need it most. The challenge, of course, is the lack of consideration that was afforded to all segments of the economy. The unfortunate and potentially cruel irony of Prop. 206 is that a portion of the population that voted in favor of the measure will directly feel the adverse effects through job loss and a lack of available social services.
CONTINUED FROM PAGE 3 What do you wish you had known before joining the board? AZCA’s mission is one of advocacy, which was new territory for me. I was a little intimidated when I went to meet with state legislators for the first time. I wish I had known that it’s not that hard and that most legislators genuinely appreciate the opportunity to hear from us. What do you feel your greatest accomplishment has been during your time on the board? This past spring, AZCA’s lobbying efforts resulted in the Arizona State Legislature earmarking $1.5 million of the annual budget for the arts. It was a huge win, especially considering that arts funding was excluded from the 2015-16 state budget. This accomplishment was the result of hard work on the part of many volunteers and staff, and I am happy I was able to play a small part. What would you say to someone considering joining a nonprofit board? Find a cause that lights you up, then find a way to serve. If you believe in the organization, your service won’t feel like work. It will feel more like a gift — a gift to yourself. Anything else you’d like to share? Make sure you know what is expected of you before you commit to serving on a board. Most nonprofits rely on the active support of volunteers to carry out their mission. Making a financial contribution is important. Rolling up your sleeves is essential.
WWW.ARIZONANONPROFITS.ORG
High School Students Venture Beyond School Walls to Make Big Plans for the Future by Brandi Devlin, Senior Director of Marketing, Big Brothers Big Sisters of Central Arizona When students from ASU Preparatory Academy cross North 7th Street and walk into APS’s downtown Phoenix headquarters, they’re taking their first steps into the professional world, and APS employees are there to guide the way. Through a partnership with Big Brothers Big Sisters of Central Arizona, high school juniors and seniors from the school are matched one-to-one with volunteers from APS through the Beyond School Walls program hosted and funded by APS. “Rarely do students have an opportunity like this to learn directly from a working professional,” says Naomi
Taylor, BBBSAZ program specialist who manages the APS program. Sienna, age 16, is one of the 23 high school upperclassmen who participate in the Beyond School Walls program. She meets with her Big Sister and mentor, Kim Wagie, two times each month at the APS headquarters, where they, along with the other matches, focus on college and career preparation. Side by side, students and their mentors engage in hands-on activities that teach students about organizational culture, teamwork, resume writing and interview techniques; yet the real magic of mentoring happens when
Sienna attends meetings with her Big Sister Kim to learn how collaboration is the key to success in the corporate world.
Kim says she feels privileged to be able to work with her Little Sister Sienna and help her develop career goals.
Students learn about every aspect of APS’s operations through the Big Brothers Big Sisters Beyond School Walls program.
the students spend one-to-one time with their mentors. The program’s Big Brothers and Big Sisters help their Littles explore college options, assist them with admission and scholarship applications, and tap into their own professional networks to set up opportunities for students to learn more about education and career choices. “As I work with my Little Sister Sienna on college applications, career planning and interviewing skills, I realize these activities are helping to shape her future,” says Wagie. Students are learning to build on their strengths and interests, and develop an education and career plan that enables them to realize their potential. Even though the program is focused on planning for the future, many Bigs notice changes in the students immediately. “These students are building self-confidence, improving their communications skills, and taking leadership roles in the program and at their school,” says Taylor. Bigs often say they get as much if not more out of being a mentor. “It is a privilege to play a small role in supporting the development of these young adults’ lives and to foster their growth,” says Wagie. Brandi Devlin is the senior director of Marketing at Big Brothers Big Sisters of Central Arizona.
5
ALLIANCE OF ARIZONA NONPROFITS
One-Stop-Shop for Connecting to Nonprofits by Kristen Merrifield, CAE, Chief Executive Officer, Alliance of Arizona Nonprofits The Alliance of Arizona Nonprofits is excited to unveil its brand-new website and online nonprofit community! Our goal was to create an online platform that would allow the nonprofit sector to connect with each other, but to also promote opportunities for meaningful interaction with the business community and general public. You can now visit the Alliance website at ArizonaNonprofits.org and click on “Connect W/The Sector” from the main navigation. Here you can: Find a Nonprofit The Alliance is home to more than 800 nonprofit organizations throughout Arizona serving a variety of different causes and communities. Use our interactive directory to find and connect to a nonprofit (or several!) that connects you to your passion.
Volunteer with a Nonprofit Looking for a way to put your talents and energy to good use? The Alliance Volunteer Center can help you find opportunities to donate your time and expertise to a nonprofit that needs your help. Serve on a Nonprofit Board Board service is an important role that business professionals and individuals can play to support the critical work of nonprofits. You can find board openings at local nonprofits through our Volunteer Center as well. Work at a Nonprofit Are you looking for a new career path? Nonprofit work is a way to align your passion with your work, and we have a lot of opportunities in our online Career Center.
Donate to a Nonprofit Make an impact by giving a donation to a local nonprofit. You can search for a nonprofit and make a donation online, or you can save the date for Arizona Gives Day on April 4, 2017. Promote Your Organization to the Nonprofit Sector through Sponsorship and Advertising Opportunities. We have several unique opportunities to help your business connect with nonprofit organizations through our multiple events and communication tools. Part of the Alliance’s strategy is to create meaningful connections between the nonprofit and business sectors, and we are excited about the new opportunities through our new Web platform. Check it out today, and start investing your time, talents and treasures with our amazing nonprofit community in Arizona!
Your Business and Arizona Gives Day by Jennifer Purcell, Director of Community Engagement, Alliance of Arizona Nonprofits Arizona is home to more than 20,000 nonprofits providing services we rely on every day. Our nonprofits create safe places to learn, live and fulfill dreams. They enrich our lives through arts and culture, and protect our natural wonders, cultural heritage and human dignity. In order to strengthen and sustain Arizona’s nonprofit community, Arizona Gives Day, a statewide 24-hour online fundraising event for Arizona’s nonprofit community, was created in 2013. The program connects causes to supporters in order to enrich and empower Arizona and begin building a spirit of philanthropy among citizens. To date, the program has raised more than $7.4 million for nonprofits statewide. The program was created by the Alliance of Arizona Nonprofits and Arizona Grantmakers Forum as a way to create awareness; connect the public and businesses; and increase financial support for these important, and often critical, organizations. Here are a few ways your business can get involved, build a spirit of philanthropy in our state, and ensure a successful future for Arizona’s nonprofit sector and Arizona Gives Day 2017:
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• Like and share posts on Facebook (Arizona Gives Day) and Twitter (@azgives). • Encourage employees and customers to participate, through your company’s e-newsletter, website, social media and email marketing. • Donate advertising space (digital, print, broadcast, outdoor) for Arizona Gives Day. • Provide a “matching” campaign gift for a participating nonprofit. • Provide a donation to support Arizona Gives Day’s program and marketing costs. • Provide a donation to increase the nonprofit incentive prize pool. • Offer a discount on your products or services to customers who show a receipt confirming they gave on Arizona Gives Day. • Host a party or event and encourage your attendees to give.
WWW.ARIZONANONPROFITS.ORG
Working with NonproďŹ ts: How does working with nonprofits benefit you and/or your employees?
Carol Farabee CEO, Farabee Publishing Helping others defines who you are. I have worked with nonprofits for the past 15 years as a leader, volunteer and board member. We can use the knowledge we have and step outside ourselves to give to others. The rewards are great, and the connections you make are solid and substantial for your business. You set the standard of expectation for trust, accountability and credibility when you are involved with nonprofits. Choose your cause today.
Kevin Johnson Founder, Alliance of Socially Responsible Agents
Rick Dircks Executive Vice President, Dircks Moving & Logistics
The key to success in working with nonprofits is showing them exactly how you can help further their mission and increase their impact. This sector is vital to the success of our business because we work only with nonprofits. The people make the nonprofit sector a joy to partner with because of their genuine appreciation for your efforts.
Through our work with nonprofit organizations over the years, Dircks has been able to fulfill our commitment to be an advocate for our community, and to leave it better than we found it. This not only builds positive business relationships, but also contributes to our company culture and allows our employees to feel like there is a greater purpose to the work they do.
connecting
REAL people with
www.readbetterbebetter.org facebook.com / readbetterbebetter
REAL
careers
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CareerConnectors is a 501 (c)(3) non-profit organization
CareerConnectors.org 480.442.5806 7
ALLIANCE OF ARIZONA NONPROFITS
Alliance of Arizona Nonprofits Staff
Arizona Nonprofits: Economic Power, Positive Impact Nonprofits are revenue generators, with earned revenue nearly three times that of philanthropic donations by Carl Jimenez, Communications Manager, Alliance of Arizona Nonprofits In order to successfully run their organizations, nonprofit professionals must also be savvy business professionals. Many Arizonans assume that most nonprofits rely entirely on philanthropic contributions, while, in fact, more than 72 percent of nonprofit income is, actually, earned revenue. Nonprofits often generate earned revenue through activities related to their mission, such as arts organizations selling tickets to exhibits and live performances, Goodwill’s sale of donated clothing or Girl Scout USA’s cookie sales. In this way, these organizations serve a social need while also contributing to Arizona’s economic vibrancy. Earned revenue can be viewed in two main categories: government-funded services and other income-generating activities. Federal, state and local government contributes nearly one-third of Arizona nonprofits’ annual revenue. However, this income should not be thought of as charitable donations. Rather, governmental bodies turn to the nonprofit community for their expertise in a wide range of social needs. By hiring nonprofits for this work rather than staffing up to do that work themselves, working with nonprofits also keeps the size of government down.
Four out of every ten dollars of revenue generated by Arizona’s nonprofits comes from program service funds and contracts, investment income, special events income, membership dues and more. As in the business community, innovative organizations are always looking to grow into other income-generating enterprises that align with their missions. Together, these two revenue sources account for more than 72 percent of nonprofit revenue, while contributions and gifts from individuals, foundations, trusts and private companies are estimated to generate only 27 percent of Arizona nonprofits’ annual revenue. With this in mind, it’s easy to understand how changes in the health of our economy can impact nonprofits as acutely as forprofit businesses. When people are out of work and have less money, they spend less on nonprofit services and pay less in taxes — which can also result in less revenue for nonprofits from governmental sources. This effect is also compounded in times of economic downturn, during which times the need for services provided by nonprofits greatly increases. To learn more about the economic impact of Arizona’s nonprofit community and download a free copy of the report, visit AZNonprofitImpact.org.
Research for this report was conducted by ASU’s Seidman Research Institute in partnership with the Alliance of Arizona Nonprofits, ASU Lodestar Center for Philanthropy & Nonprofit Innovation and The Phoenix Philanthropy Group. Funding was provided by the Arizona Community Foundation, APS and the Industrial Development Authority of Maricopa County.
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Kristen Merrifield, CAE Chief Executive Officer KristenM@arizonanonprofits.org (602) 279-2966 x14 Jennifer Blair Director of Membership JenniferB@arizonanonprofits.org (602) 279-2966 x20 Robin Hanson Program Manager AmeriCorps*VISTA RobinH@arizonanonprofits.org (602) 279-2966 x19 Carl Jimenez Communications Manager CarlJ@arizonanonprofits.org (602) 279-2966 x16 Jacki Presnal Office Manager & Executive Coordinator JackiP@arizonanonprofits.org (602) 279-2966 x10 Jennifer Purcell Director of Community Engagement JenniferP@arizonanonprofits.org (602) 279-2966 x17 Jonathan Yates AmeriCorps*VISTA Team Lead JonathanY@arizonanonprofits.org (602) 279-2966 x18
Alliance of Arizona Nonprofits 360 E. Coronado Road, Suite 120 Phoenix, AZ 85004 Phone: (602) 279-2966 www.ArizonaNonprofits.org
JANUARY 2017
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Abbatiello, Anthony, 32
Ducey, Doug, Governor, 9
Kennedy, Michael, 22
Reiter, Patricia, 22
Allford, R. Allan, 22
Eberenz, Jack, 10
Klein, Courtney, 22
Romanoff, Chad, 12
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Lanning, Kimber, 22
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Beyer, Tom, 10
Farabee. Carol, 59
Leet, Gregory, 34
Schiemann, William A., Ph.D., 11
Blaney, Robert, 22
Feeney, Matthew, 22
Lindberg, Eric, 16
Seleznow, Steve, 22
Bonsall, Mark, 22
Fox, Sam, 22
Litchfield, Lonn, 64
Sukhija, Dushyant, 32
Bruhnke, Doug, 45
Goodman, Stuart, 56
Lundy, Jim, 22
Tollefson, Richard, 34
Budinger, Donald, 22
Grace, Nancy, 54
Matson, Michelle, 12
Tuckson, Reed, M.D., 18
Chestnut, Beatrice, Ph.D., 33
Hawkins, Gregory P., 64
Maylett, Tracy, 33
Vermillion, Chuck, 22
Cottrell, Jonathan, 40
Hillman, Amy, Ph.D., 22
Merrifield, Kristen, 53
Walden-Wells, Suzanne, 55
Dennis, Robin, 33
Johnson, Kevin, 59
Miller, Liz, 14
Watson, Sandra, 22
Devlin, Brandi, 57
Johnson, Paul, 22
Misra, Ajitav Mick, 20
Weigend, Andreas, 33
Dircks, Rick, 59
Johnston, Joe, 12
Newsom, Darlene, 34
Weisman, Ross, 18
Doyle, Mike, 16
Johnston, Mark, 12
Pollack, Elliott, 22
Wride, Matthew, 33
12West Brewing, 12
Everybody Loves Flowers, 12 Farabee Publishing, 59
Phoenix Philanthropy Group, The, 34, 41
SVP Arizona, 10
AAA Phone On Hold, 8 AccountabilIT, 22
Fennemore Craig, 8
Pizzeria Bianco, 44
TimerCap LLC, 18
Agritopia, 12
Fox Restaurant Concepts, 22
Alerus, 7
FSW Funding, 61
Alliance Bank of Arizona, 3
Gallagher & Kennedy, 22
Alliance of Arizona Nonprofits, 53
Gilbert Chamber of Commerce, 39
Alliance of Socially Responsible Agents, 59
Glendale Chamber of Commerce, 39
APS, 15
Global Chamber, 45
Arizona Chamber of Commerce and Industry, 38
Goodman Schwartz Public Affairs, 56
Polsinelli, 47 Precision Door Service, 10 Prickly Pear Paper, 12 Radix Law, 20 Redirect Health, 22, 67
ThinkSmallBiz, 62 Tish Times, 38 Trident, 42 U&Improved, 38 U.S. Small Business Administration, 38
Rent Like A Champion, 16
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Rodel Foundations, 22
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Graceful Fundraising, LLC, 54
Salt River Project, 22
United Health Foundation, 18
Santamaria Shirt Makers, 16
Uprooted Kitchen, The, 12
Arizona District Export Council, 37
Greater Phoenix Chamber of Commerce, 38, 39
Science Foundation Arizona, 22
Vig, The, 44
Arizona Relay Service, 6
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W. P. Carey School of Business, 22
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Infusionsoft, 62
Scottsdale Area Chamber of Commerce, 37, 39
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Big Brothers Big Sisters of Central Arizona, 57
Land Rover, 42
Support My Club, 55
YWCA, 38
Letter Craft, 12
Blue Cross Blue Shield of Arizona, 19
Lifeproof, 42
Bureau of Industry and Security, 37
Liquid Capital, 35
Business Law Seminar Group LLC, 38
Local First Arizona, 22
Career Connectors, 59
Magellan Health, 18
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Matson Money, 12
Chandler Chamber of Commerce, 38
MereStone, 43
CMO Council, 14
Metrus Group, 11
Current Meditation, 18
MidFirst Bank, 39
Deloitte, 32
Morgan Law Offices, 6
Delta Dental of Arizona, 22
Mountain Shadows, 12
Desert Schools Federal Credit Union, 7
Mountain States Employers Council, 37
Dircks Moving & Logistics, 59
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Arizona Commerce Authority, 22 Arizona Community Foundation, 22
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DMB, 55 Economic Club of Phoenix, 39 Elliott D. Pollack and Company, 22
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A CANDID FORUM
Gregory P. Hawkins is a lawyer with 30 years of courtroom experience. He has authored four books, three of which are about ethics, and many published articles. Lonn Litchfield is a trial lawyer of 20 years and author with a JD from the J. Reuben Clark School of Law and an LLM from the London School of Economics.
This article was originally written under the title “Aspirational Ethics and the Second Chair.”
JAN. 20 1 7
64
INBUSINESSMAG.COM
BY
Motivating the Ethical Choice
It’s less about codification than about inspiration — are we really masters of our own decisions and can our own small act, at the right time, really change the world? by Gregory P. Hawkins and Lonn Litchfield
When we give public presentations on Corruption, Ethics or Leadership, we often begin with some version of a moral hypothetical. The exercise turns out exactly the same no matter the group. A father takes his only child into the state school board building where she will be tested to determine if she qualifies for a very special gifted student program. Admittance is competitive and only truly gifted students will be admitted. As he approaches the test administrators, he is surprised to see his best friend. He is apparently the chair of the selection committee. His friend greets him very warmly and tells him not to worry, his daughter will get into the program. Both men understand the implication. Most people will say that it is wrong for the administrator to treat his friend’s daughter differently from other applicants. Yet even those who speak out will hesitate to call it “evil.”
Morals are the basic internal principles that inform and govern a person’s view of right and wrong, good and evil. Although morals are a universal force, they can be diverse in their application and definition — almost as diverse as individuals are from one another. This diversity is illustrated as we add to our hypothetical. The facts added do not change the action itself, but they do change the moral context by emphasizing a competing virtue: What if the administrator and his friend were not merely lifelong friends, but they fought together in the war, side-by-side, depending on one another for their life? What if the father had actually, and rather dramatically, saved the administrator’s life? What if the father had been wounded in his heroic effort? What if the wound had left him unable to father another child? What if he was left a paraplegic, forever reliant on a wheelchair for his mobility? As we proceed with each, “what if,” more and more people begin to rethink their opinion.
The average cost for settling a discrimination lawsuit is $125,000, while the median judgment in employee court cases is $200,000 — all in addition to tarnished reputations, countless man-hours, lowered morale and abandoned trust. — Christian Schappel, “What will that next discrimination charge cost you?” (HR Morning, Nov. 6, 2015) wmfdp.com
As each group looks around the room at what they thought was a homogenous group, they begin to realize that questions of right and wrong, good and evil, even in their very own analysis, sometimes take real thought to resolve. Sometimes the questions involve good and good, right and right. Which is more important, equality or loyalty? In the abstract, this question is challenging, but it can become quite difficult if it is a question one faces in one’s own life. Which is the greater good, fairness in testing and equality of school programs, or loyalty and honoring lifechanging sacrifice? Let’s turn from the question of morals to the question of ethics. If we were to ask 100 ethicists what the definition of ethics is, we may well receive 147 different answers. For our purposes, we will use the working definition that “ethics are one’s discretionary behavior in relation to morals.” Some ethicists use the term “ethics” to mean the rules crafted by others to be applied to someone else’s moral conduct. We will refer to the creation of someone else’s rules as the codification of ethics, and define codification as simply “the creation of an organized set of rules that, if violated, have a negative consequence to the violator.” Although intended to improve the moral climate, the codification of ethics tends to decrease ethical choices. Here are five reasons why ethical choices decrease when ethics are codified into law: First is the concept of legal moralism. If the conduct is not prohibited in the code of ethics, then, by definition, it is permitted conduct. In other words, license is given to engage in conduct not specifically prohibited by the code. The question of whether the conduct is right or wrong, good or evil, for some can simply be set aside. The rules themselves determine the right and wrong of behavior. Discretion can become irrelevant. This results in less ethical behavior. To avoid this result, continuing codification is required until all conduct that is perceived as bad is prohibited. The code must be exhaustive — a nearly impossible task. Second, because violation of the code results in negative consequences, whenever the code is applied to an individual, that individual resists its application. Any individual to whom the code applies, now or in the future, naturally and even subconsciously resists the code. Because the individual resists the application of the code, the rules lose their ability to affect the person’s choices in relation to morals positively. Codification may result in nearly universal resistance by those who are governed. Third, when negative consequences are threatened, a lawyer — an expert dedicated to exploiting ambiguities in the law and its application to specific facts — is invited to participate in the ensuing battle. Yes, it will be a battle, because almost no one willingly submits to his behavior being characterized as bad or as wrong, and certainly not as evil. The lawyer’s job is to defend her client, not to promote generalized ethical behavior. The lawyer will find the ambiguities in the code being applied, as well as ambiguities in the underlying facts. In time, often a very short time, the code becomes diluted, its benefits reduced. This dilution takes us to a fourth problem of codification. Like legal moralism, dilution requires additions to the code — more codification. Dilution requires a codification that is tighter in its application and more exhaustive, which in turn will require more lawyers, and round and round and round we go. Fifth, codification does not promote good behavior. At its best, codification can only limit bad behavior. As a result of these and other effects, codification — rules that take away choices about moral behavior — result in less ethical behavior because ethics is about discretionary behavior in relation to morals; it is about choices.
WHY TRY?
Despite the problems with the codification of ethics, no one is advocating that we do away with it. Codification of ethics will always be a part of our modern world. In 1100 AD, there were about 50 million people inhabiting our planet. In the 1820s, we reached our first billion. In the 1920s, 100 years later, we reached our second billion. In January of 2013, we reached 7 billion. In 2013, there were 206 nation-states in the world. Each country represents a somewhat, if not a radically, different set of laws, rules and principles people apply when governing their lives. These are grounded in numerous cultural, religious, ethnic and racial perspectives of right and wrong, good and evil. Twenty-eight percent of the world is Christian, 22 percent Muslim, 15 percent Hindu, 8.5 percent Buddhists, 14 percent are found in the “other religions” category, and 12 percent are categorized as nonreligious. Under each general heading there is a vast number of denominations or sects. For example, there are more than 1500 different Christian sects or faith groups. And even within a group espousing the same morals, individuals apply them differently to real-life circumstances. Advances in technology are bringing the earth’s seven billion diverse inhabitants into contact with each other more and more frequently. We bump into each other, over and over again. The innumerable interactions mean people will witness more behavior that is wrong or evil. Therefore, there will be a growing cry, “There ought to be a law!” This continuing call for codification of ethics happens in many contexts: corporate, governmental or across a profession or industry. This is the reality when so many people have such easy access to one another.
CODIFICATION NOT THE ONLY ANSWER — THE POWER OF THE SECOND CHAIR
However, as discussed, codification alone will not result in more good behavior. We cannot expect that codification will increase good behavior nor can we choose simply to not codify. Nevertheless, we cannot abandon our desire to increase good behavior. Nor can we abandon our confidence that, given the opportunity, most people will exercise their discretion, their choices in relation to morals, positively. This brings us to the behavioral influence known as the Second Chair. In the 1950s, Solomon E. Asch, of Swarthmore College, conducted an unusual psychology experiment. The participants in the experiment were informed that it was a visual perception experiment. It was not. Six people are placed in chairs. Diagrams of lines are shown to them. On the left is shown a line of a certain length. On the right are three lines of different lengths, one of which matches exactly the line on the left. The correct choice is clear and obvious. The only person actually being tested is the person in the Fifth Chair; everyone else is a co-conspirator. When the test begins, chairs 1–4 and 6 purposely identify the wrong line as the correct match. If the correct answer is B, they all say, “A.” The Fifth Chair identifies the obviously correct line as the match. “It’s B.” The co-conspirators, subtly at first and then more directly, ridicule the Fifth Chair for choosing the “wrong” line. As the participants are shown set after set of lines, eventually, and often quite quickly, the Fifth Chair begins to give the wrong answer, the same as the co-conspirators, even though the correct answer is obvious.
“I have a dream.” Martin Luther King Jr., scheduled as one of the speakers at an event at the National Mall in Washington, D.C., on Aug. 28, 1963, had been cautioned by his advisers and even the Kennedy Administration to not cause problems. But he had thoughts he felt were important to share. …
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A CANDID FORUM Then the experiment changes. The person in the Second Chair begins to give the correct answer. Now, the Fifth Chair almost always gives the correct answer, too. With the voice of the Second Chair added, the Fifth Chair is not persuaded by the taunts of the others to join them in giving the wrong answer. The Fifth Chair gives what he knows is the correct answer. “It’s B.” Many people sit in the Fifth Chair. The truth of something seems obvious: this line is the same length as line B. But the multitude of voices saying, shouting, sometimes demanding, that the correct answer is A creates the environment in which the Fifth Chair finds it compelling to remain quiet or even agree with the demanding but wrong voices. When the Second Chair steps up and says, “It’s B” — when the Second Chair communicates the truth about what the Fifth Chair sees — powerful things happen.
ASPIRING TO ETHICAL BEHAVIOR
Ethics are discretionary behaviors in relationship to morals. Ethics are about the choices we make in relation to how we see right and wrong, good and evil. Codification can limit bad behavior, but as discussed, more and more codification is required to be effective. Codification does not encourage good behavior and tends to result in less overall ethical behavior—fewer choices in relationship to right and wrong, good and evil. This examination is intended to encourage awareness and choices in relationship to morals. We all sit in the Fifth Chair at times. Unfortunately, we may sometimes sit in the First Chair and get it totally wrong. But we can aspire to sit in the Second Chair. We can actively look for those sitting in the Fifth Chair whose choices are burdened with the pounding voices of those sitting in the First Chair. Our aspiration does not require heroic labors; it may be as simple as a thumbs-up or a pat on the back. The Second Chair need only communicate to the Fifth Chair, “You are seeing it right. It’s B.” Jackie Robinson sat in the Fifth Chair. In fact, he was specifically selected and purposely placed in the Fifth Chair by Branch Rickey, general manager of the Brooklyn Dodgers. Because of his moral backbone, his controlled temper and his athletic ability, Robinson was the perfect choice. Many times, the First
Chair piled on ridicule, racial epithets and even death threats. Robinson felt alone. Once, the manager of the Philadelphia Phillies, Ben Chapman, occupying the First Chair, verbally beat Robinson nearly to explosive anger while he was at bat. Chapman said things that today would be outrageous in public or private. Robinson was at the point of breaking and almost walked over to Chapman to brain him with the bat. But one of Robinson’s teammates, Eddie Stanky, stepped out of the dugout, walked over to Chapman and said, in substance, “Stop it. You are wrong.” The comments had little effect on Chapman, but they had a powerful effect on Robinson. Robinson’s teammate sat in the Second Chair at a critical time for him, as he carried the burden of a terrible Fifth Chair dilemma: Do I brain Chapman or do I hold my peace? Robinson’s teammate lifted that burden, for just a moment, and said to him, “It’s B.” Robinson was still in the Fifth Chair on another field in Cincinnati. Pee Wee Reese, also a teammate of Robinson, sat in the Second Chair. The people in the First Chair were family and friends of Reese from across the Ohio River in Kentucky. As Robinson took the field, Pee Wee Reese’s family began to throw verbal spears at him, not too different from those of Ben Chapman. Reese walked across the field to where Robinson stood and, in the presence of all, his family included, simply put his arm around Robinson and began to talk. Once more, a teammate sat in the Second Chair and said to Robinson, “It’s B.” But that’s not the end of the story. In the stands were young nephews of Pee Wee Reese. Unbeknownst to him, they were also in the Fifth Chair. They did not believe the terrible things the adult family members were saying; they had a choice to make. Reese, by simply putting his arm around Robinson, said loud and clear, “It’s B.” They chose not to participate in their elder’s efforts to intimidate Robinson. While we often struggle with our own Fifth Chair choices, we can aspire to sit in the Second Chair every time the opportunity arises. History — individual history and collective history — is about critical moments. We never know when the moment will come or how critical the moment may be. Nevertheless, we can look for and be aware of those in the Fifth Chair. We can recognize the burden placed on them by the multitude of First Chair voices. We can lift that burden, even if it is only for a moment, and inspire the choice to do good by our reaffirming voice, “It’s B.” And, when we do, powerful things will happen.
Harper Lee’s Pulitzer Prize-winning novel To Kill a Mockingbird illustrates well the principle of the Second Chair in motivating the ethical choice. Tom Robinson was a black man accused of raping and beating a white woman in
hiding and ran to Atticus. Scout, surprised at the fear that flashed across Atticus’s
“Jim Crow” Alabama in the 1930s. To put it mildly, due process and trial by a jury
face at seeing the children, did not understand what was happening and looked
of one’s peers were not the popular approach to resolve such issues in the rural
again at the crowd for a familiar face. She finally recognized Walter Cunningham, a
South at that time. There were 4,742 lynchings in America from 1882 to 1964.
client of Atticus. She said, “Hey, Mr. Cunningham.” He pretended not to hear her.
Alabama accounted for 347 of these, and the South at large more than 3,130.
She began a solo, innocent dialogue with him about his work with Atticus,
Rape, attempted rape and insult to a white person accounted for 1,285 — about
about school, about his son Walter, and so on. Mr. Cunningham tried to ignore
27 percent — of these lynchings. A black man accused of one of these crimes
her and eventually she simply said, “Tell him hey for me, won’t you?” The scene
could reasonably expect to die without due process of law.
remained tense and Scout was confused. She finally asked, “What’s the matter?”
Tom Robinson was not destined for trial. He was jailed and charged. The
Mr. Cunningham squatted down and took Scout by the shoulders and said, “I’ll
local judge asked the best-liked, most respected lawyer in Maycomb County to
tell him you said hey, little lady.” And then he stood and said, “Let’s go boys.” Tom
represent Tom in this lost cause — Atticus Finch.
Robinson would live, at least for that Sunday night.
It was a Sunday night and word came to Atticus that the locals were going
In this scene, Scout unknowingly occupies the Second Chair and Walter
to the jail to administer justice. Atticus went to the jail and sat outside reading
Cunningham the Fifth Chair. Harper Lee artfully illustrated the power of Scout’s
and waiting. Soon local justice arrived in the form of cars filled with angry and
innocent little voice helping Walter choose what, to Harper Lee, 1960 America
determined Southern white men.
and us today, was the obvious — justice does not come by a vigilante rope in
Atticus’s son, Jem, his daughter, Scout, and their friend Dill had followed him and were hiding behind a bush. When the moment got tense, they busted out from
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the dark of night. Other Cunninghams are also lastingly affected — one of them becomes a Fifth Chair himself in the jury room, “rarin’ for an acquittal.”
… What gave him the strength to, ultimately, disregard all the voices telling him to stick to the speech that had been prepared for him? Well-known singer Mahalia Jackson, standing nearby, told him, “Tell them about the dream, Martin.” She was his “Second Chair.” And the rest is history.
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