In Business Magazine - February 2012

FEB. 2012

Does Your Business Practice Safe Social Media Policies?

Celebrating our

Centennial

as we take stock of what we can become

Power Lunch by the Numbers business Events This Issue Tempe Chamber of Commerce Arizona Technology Council

Governor Jan Brewer introduces our Centennial issue

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February 2012

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

Partner Organizations

Donna Davis, 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

Kristine Kassel, President NAWBO Phoenix Metro Chapter (602) 772-4985 • www.nawbophx.org

Rick Kidder, President & CEO Scottsdale Area Chamber of Commerce (480) 355-2700 • www.scottsdalechamber.com

AccelerAte

revenue & Business Growth

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Mary Ann Miller, President & CEO Tempe Chamber of Commerce (480) 967-7891 • www.tempechamber.org

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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.

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Greater Phoenix Gay & Lesbian Chamber of Commerce www.gpglcc.org Mesa Chamber of Commerce www.mesachamber.org North Phoenix Chamber of Commerce www.northphoenixchamber.com North Scottsdale Chamber of Commerce www.northscottsdalechamber.org Peoria Chamber of Commerce www.peoriachamber.com Westmarc www.westmarc.org

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February 2012

ARIZONA'S FUTURE

22

FEB. 2012

IN BUSINESS MAGAZINE

Contents

Does Your Business Practice Safe Social Media Policies?

Celebrating our

Centennial

What’s in Arizona’s Future?

as we take stock of what we can become

Governor Jan Brewer introduces our Centennial issue

Power Lunch by the Numbers business Events

FEBRUARY 2012 • inbusinessmag.com

We celebrate our Centennial as we take stock of what we can become. Speaking with industry leaders, Brett Maxwell explores challenges that key sectors of Arizona business will face in the next 100 years as they compete against a global marketplace to draw companies that create high-paying jobs and stimulate the economy.

This Issue

Tempe Chamber of Commerce Arizona Technology Council

Departments

11 Guest Editor

Arizona Governor Janice K. Brewer introduces the Centennial issue.

Features

28 They Built Arizona

Noted business leaders Sam Kathryn Campana, Norman McClelland and Michael Mills, M.D., M.P.H., respond to IBM’s burning business question of the month.

30 Hackers: Do Not Enter

Hacking is a serious threat to small business. Alison Stanton speaks with industry experts to learn where the problems lie and what measures can be taken to guard against hacking.

20

14 Briefs

“New Healthcare Business Model Benefits Providers and Patients,” “Unpaid Internship or Free Labor?,” “24/7 Access to Licensing and Inspection Service Advanced,” “Corporate Store Adds to Franchisee Feedback,” “From Inn Lobbies to ‘In’ Meeting Spaces” and “Fountain Hills Incubator to Aid Business”

18 By the Numbers

Employment as an indicator of economic health. Plus: Key economic indicators provide a sense of the health of the local economy.

20 Break the Innovation Chokehold

Stop ruling like a dictator and start encouraging big ideas, says OfficeMax founder Michael Feuer, and offers suggestions on how to make that happen.

19 Trickle Up

32 Solar Gets Its Day in the Sun

The U.S. has always fallen behind when it comes to turning a profit from the solar industry. Robrt L. Pela shows how, in Arizona, solar is now emerging as a booming industry. Plus: “The Power of Incentives” TEMPE

Special Sections

45 Tempe Chamber of

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Staff

2012 Panamara Turbo S and mobile phone accessories

12 Feedback

Who are the businesses that have helped shape Arizona into the state it is today? Sue Kern-Fleischer looks at the influence of three of these giants on our state’s economic engine — past, present and future.

30

42 Assets

View from the top looks at how Ted Schuman, founder and CEO of PlanetOne Communications, steered a successful course through uncharted territory.

21 Books

New releases on leadership offer direction on creating an engaged work force.

34 Nonprofit

Arizona’s Children Association Celebrity Fight Night Foundation

44 Power Lunch

“Chelsea’s Kitchen: Bringing Ingredients to their Potential.”

Plus: “Soak Up That History”

66 Roundtable

“Practice Safe Social Media Policies” Business Education

38 For Brand Power, It’s Moments that Matter

In this fifth of her six-part series, marketing and communications coach Kathy Heasley argues the critical role of personal involvement in successful branding.

40 Systems and Correct Measures of the Sales Process Sales coach Mike Toney, in this fourth of his six-part series, sales coach Mike Toney provides tools for using input and output information for successful sales.

Networking

35 On the Agenda

In Business Magazine guide to events that help build business, by chambers of commerce, trade and other organizations

Scienc e and ering Fair

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1

inbusine ssmag.com

February 2012 • Vol. 3, No. 2

passionate about your profitability Publisher Rick McCartney

At Holmes Murphy, we think providing you with innovative answers

Editor RaeAnne Marsh

to the ever-increasing challenge of rising health care costs is one

of the most important things we can do to affect your company.

That’s why we take the time to get to know your company’s

challenges and consult with you to provide the highest-quality, lowest-cost solutions — tailored especially for your business.

If you are looking for an advisor who understands the complexities of Employee Benefits and a partner who helps you develop the right financial solutions, call Holmes Murphy — the nation’s 22ndlargest* broker.

Contributing Writers Michael Feuer Kathy Heasley Mike Hunter Sue Kern-Fleischer Brett Maxwell Robrt L. Pela Carrie Pixler Ryerson Alison Stanton Mike Toney

Photographer-at-large Dan Vermillion

14850 N. Scottsdale Road, Suite 280 Scottsdale, AZ 85254 480-951-1776 | 877-951-1776 holmesmurphy.com DES MOINES | CEDAR RAPIDS | DAllAS | DAvENPORt | DENvER KANSAS CIty | MADISON | OKlAhOMA CIty | OMAhA | PEORIA PhIlADElPhIA | SCOttSDAlE | SIOux FAllS | St. lOuIS

Learn more about how Holmes Murphy will be a trusted advocate for you — visit holmesmurphy.com. ©2011 Holmes Murphy & Associates

Art Director Benjamin Little

* Business Insurance, July 2010

Advertising Operations Louise Ferrari

lferrari@inmediacompany.com

Senior L ouise Ferrari Account Executives lferrari@inmediacompany.com

April Ray

aray@inmediacompany.com

Cami Shore

cshore@inmediacompany.com

Greg Stiles

gstiles@inmediacompany.com More: Visit your one-stop resource for everything business at www.inbusinessmag.com. For a full monthly calendar of business-related events, please visit our website.

Inform Us: Send press releases and your editorial ideas to editor@inbusinessmag.com.

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

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

Vol. 3, No. 2. In Business Magazine is published 12 times per year by InMedia Company. POSTMASTER: Send address changes to InMedia Company, 6360 E. Thomas Road, Suite 210, Scottsdale, AZ 85251. To subscribe to In Business Magazine, please send check or money order for one-year subscription of $24.95 to InMedia Company, 6360 E. Thomas Road, Suite 210, Scottsdale, AZ 85251 or visit inbusinessmag.com. We appreciate your editorial submissions, news and photos for review by our editorial staff. You may send to editor@inbusinessmag.com or mail to the address above. All letters sent to In Business Magazine will be treated as unconditionally assigned for publication, copyright purposes and use in any publication, website or brochure. InMedia accepts no responsibility for unsolicited manuscripts, photographs or other artwork. Submissions will not be returned unless accompanied by a self-addressed, stamped envelope. InMedia Company, LLC reserves the right to refuse certain advertising and is not liable for advertisers’ claims and/or errors. The opinions expressed herein are exclusively those of the writers and do not necessarily reflect the position of InMedia. InMedia Company considers its sources reliable and verifies as much data as possible, although reporting inaccuracies can occur; consequently, readers using this information do so at their own risk. Each business opportunity and/or investment inherently contains certain risks, and it is suggested that the prospective investors consult their attorney and/or financial professional. © 2012 InMedia Company, LLC. All rights reserved. No part of this magazine may be reproduced or transmitted in any form or by any means without written permission by the publisher.

10

F e b r u a r y 2012

inbusine ssmag.com

Janice K. Brewer, Governor, The State of Arizona

Guest Editor

Our Centennial

Governor Jan Brewer has served the people of Arizona for nearly three decades. Her path of public service has taken her from the Maricopa County Board of Supervisors to the Arizona Legislature, the Secretary of State’s office and, ultimately, the Governorship.

Through it all, she has been guided by a personal motto to do the right things, make the tough decisions and leave her place in life a little better than she found it. Governor Brewer’s term expires in early 2015.

As we embark on Arizona’s next century, I am constantly reminded of our beautiful state’s promise. My optimism is rooted in the people of Arizona — its workers, entrepreneurs and business owners who make up our vibrant economy.

Arizona has always been the land of opportunity, and I’m confident it will remain so in our next century.

This is a place where — with hard work, dedication and perseverance — anyone can achieve his or her dream. Our history is filled with these success stories, from the early settlers who raised cattle or cotton to today’s entrepreneurs building a business with nothing more than an idea — and a website, of course.

As a state government, we can’t make a new business venture take root. But we can provide the fertile ground it requires by ensuring that our regulations are not too heavy-handed, that taxes are reasonable and our schools and higher-education institutions produce an educated, trained work force. In short, state government can help set the stage for economic success. Over the last century, the people of Arizona have proved plenty capable of doing the rest for themselves.

In this issue of In Business Magazine, Brett Maxwell uncovers the incredible advances and unique opportunities that Arizona has to move quickly and prosperously into the next 100 years. He speaks with key leaders of Arizona industry and looks at the sectors of business that will catapult us into this important next century for Arizona’s economy. Arizona’s business environment in the next century will be very different from the last, and the insights of local business leaders paint the picture of what we can expect in the coming years.

Sue Kern-Fleischer complements this view of the future with an article on some of today’s leading businesses that have helped build our economy. Intel, TGen and APS contribute their histories as important players who have helped to create the Arizona we know today.

Solar energy, a subject frequently in the headlines, continues to broaden its impact on Arizona’s economy.

Robrt Pela follows the growth of the industry, including a look at incentives that will help further development in this sector. Also in this issue, Alison Stanton focuses on the vulnerability of small businesses to computer hacking via the Internet, and explores how they can use technology to identify risks, counter hacking and protect themselves. Our leadership article offers suggestions from Michael Feuer, founder of officesupply retail giant OfficeMax, on the ways in which a company can innovate by encouraging input from its employees.

This is an important time for us as Arizonans, and a great time to celebrate everything that is unique to our state. Happy Birthday, Arizona — here’s to another prosperous century.

Sincerely,

Connect with us: Story Ideas/PR: editorial@inbusinessmag.com Business Events/Connections: businessevents@inbusinessmag.com

Janice K. Brewer Governor The State of Arizona

Marketing/Exposure: advertise@inbusinessmag.com

Working Together to Change Our Future In this issue, we explore those industries that leaders believe will be our future. It is worth noting that it is the people of Arizona (in particular the businesspeople) who will lead the Valley to a strong economic existence. Many groups, like GPEC, Arizona Commerce Authority, WESTMARC, Arizona Technology Council and other trade and economic development organizations, have a stake in this process. We will succeed in grasping the economic opportunities only if Valley and State government and economic inbusine ssmag.com

Or visit us online at www.inbusinessmag.com

leaders are working in conjunction with one another to pledge a bold campaign to gain what other cities and states are already doing to succeed in this regard. Let’s think out of the box and set aside the politics and rhetoric to focus on true gains for the Valley and Arizona. Write us to let us know what your organization is doing to bring opportunity to the Valley. We want to play a major role in expediting this effort and give exposure to great ideas and organizations.

—Rick McCartney, Publisher F e b r u a r y 2012

11

Feedback

Valley Leaders Sound Off

Executives Answer

If you were starting your business today, what aspects of the local business climate would be most important to you in deciding whether to locate your business here?

Sam Kathryn Campana

Norman McClelland

Location times three is the assumption. But in my years steeped in economic development, we sold quality. Quality of life, quality of community, quality of care. As a new business owner, I would want city policy that required lots of open space; easy walking; superb schools; clean bus stops and lots of them; healthy environmental stewardship; public art everywhere; thoughtful traffic calming; modest but fair signage; no billboards; appreciation of heritage; great view corridors; and well-cared-for curbs, gutters and lighting. All the things that assure me that this community is committed to quality.

We successfully recruited many business incubations and relocations in Scottsdale with this formula — and I looked for and found most of it in Phoenix when we built the award-winning, LEED platinum Nina Mason Pulliam Rio Salado Audubon Center just south of downtown Phoenix. Quality can root in every location, thrive in any political environment, and harvest new clients for you every season. Quality of life is the tipping point for my decision.

I have always had a long-term approach to business and my goal is to be the leader in whatever business I choose to compete. Thus, when selecting a location for my business, I ask whether or not the local business climate provides opportunities for me to be competitive and succeed for the long-term.

The three most important aspects of the local business climate to me include a history of encouraging entrepreneurs at the state, county and city levels through tax structure and regulatory requirements, with the right to work with or without representation; a strong growth market for my enterprise; and a qualified work force with the strength and desire to be a part of a family organization.

These are three key criteria that have contributed to the success and growth of Shamrock Foods Company here in Arizona. Founded in 1922 in Tucson, we are now celebrating our 90th year in business and have grown to include Shamrock Farms, one of the largest family-owned and -operated dairies nationwide, and Shamrock Foods, one of the top 10 foodservice distributors nationwide.

Audubon Arizona az.audubon.org

Shamrock Foods Company shamrockfoods.com

Sam Kathryn Campana, former mayor of Scottsdale, has for ten years been Founding Executive Director of Audubon Arizona. Her vision and plans for an urban downtown, active waterfront, ASU presence, expanded public art program, mutually productive relationship with the Salt River Indian Community, and connected open space from Scottsdale’s northernmost border to Tempe are all now coming to fruition.

Armed with bachelor degrees in agriculture and business administration from the University of Arizona, Norman McClelland transformed the small dairy farm founded by his father into the largest dairy in the Southwest and the seventh largest food distribution company in the United States. He is actively involved in the Phoenix Irish Cultural Center, one of many charitable, business and community organizations he supports.

Founding Director Audubon Arizona Sector: Nonprofit

Michael Mills, M.D., M.P.H. Founding Partner Arizona Digestive Health Sector: Healthcare

As a physician in private practice with an entrepreneurial spirit, I have enjoyed all aspects of creating business models to address opportunities for improvements in our healthcare delivery marketplace, including purchasing land, building an office building, creating a licensed ambulatory surgical center, partnering with hospitals and expanding my practice to nearly 60 physicians with 350 employees. Maricopa County Medical Society, representing physicians for 120 years, has a rich history of advocating for patient choice and supporting free enterprise.

However, threats to extinguish doctors from managing their own

12

F e b r u a r y 2012

CEO and Chairman Shamrock Foods Company Sector: Agriculture

personal medical practices are escalating, currently with more than half of all doctors becoming employees of larger entities. With reduced reimbursements, increased overhead, along with increased regulation from Washington and anticipated negative impact of the Patient Protection and Affordable Care Act, our shortage of physicians in the Valley will increase as offices close, resulting in decreased access to care. In spite of these difficulties, for those physicians who remain committed in their pursuit of private practice, Arizona, with its growing population and educational institutions, remains a viable option.

Digestive Health Center of Arizona, Division of Arizona Digestive Health, P.C. dhcaz.com Maricopa County Medical Society mcmsonline.com

Michael Mills, M.D., M.P.H., an Arizona native, is a graduate of the University of Arizona and Tulane University, earning his Doctor of Medicine and Master in Public Health concurrently. He is Board-certified in Gastroenterology, starting private practice in 1999, is founding partner of Arizona Digestive Health and managing partner of Phoenix Endoscopy, an ambulatory surgery center. He is also the newly inaugurated president of the Maricopa County Medical Society.

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Briefs

Quick and to the Point

New Healthcare Business Model Benefits Providers and Patients A partnership of Arizona Integrated Physicians, a West Valley-based physician organization comprised of more than 600 physicians, and the Banner Health Network was recently selected to participate in the Pioneer Accountable Care Organization (ACO) model, a transformative new initiative sponsored by the Centers for Medicare and Medicaid Services (CMS) Innovation Center.

The model replaces the “fee for volume” approach with a structure that rewards physicians for aligning patient satisfaction with clinical outcomes and encourages them to work together rather than competitively, explains Keith Dines, CEO of Arizona Integrated Physicians. Says Thomas Maxwell III, M.D., chairman of the board for AIP and an internal medicine physician in Sun City, “This new model of clinical and business alignment will allow BHN participants to create a comprehensive network of providers (hospital, primary care, specialty physicians, post-acute, home care, ancillary and pharmacy) with payers … [and] will provide the opportunity to reward physicians for providing the high-quality, patient-centered, cost-effective care that they were trained to provide.” Providers who band together through this model will be required to meet quality standards based upon, among other measures, patient outcomes and care coordination among the provider team.

The Pioneer ACO model is designed to encourage the development of such ACO networks.

BHN, as one in a diverse group of leading-edge healthcare organizations from around the country, was chosen specifically by the Innovation Center to test the effectiveness of several models of payment in helping organizations make a rapid transition to higher-quality care at a lower cost to Medicare. Dines notes the networks will also provide the same level of services to commercial healthcare organizations, which, as healthcare costs come down, will share the savings with employers.

—RaeAnne Marsh Arizona Integrated Physicians arizonaphysicians.com Banner Health bannerhealth.com

Unpaid Internship or Free Labor?

Strict guidelines govern what the U.S. Department of Labor accepts as unpaid internship programs at for-profit businesses, some counter-intuitive to what business owners may be practicing.

There are six criteria: The internship, even though it includes actual operation of the facilities of the employer, is similar to training which would be given in an educational environment; the internship experience is for the benefit of the intern; the intern does not

14

F e b r u a r y 2012

displace regular employees, but works under close supervision of existing staff; the employer that provides the training derives no immediate advantage from the activities of the intern, and on occasion its operations may actually be impeded; the intern is not necessarily entitled to a job at the conclusion of the internship; and the employer and the intern understand that the intern is not entitled to wages for the time spent in the internship.

The DOL has been cracking down on businesses taking advantage of “unpaid internships” as an alternative to paid positions since it released the six-point test in April

2010, but confusion over what constitutes an internship seems to persist. “The rule of thumb is that the internship focus on benefits to the intern rather than benefits to the employer,” explains Shayna Balch, an attorney in the Phoenix office of Fisher & Phillips.

If a business must hire a paid employee to handle the work when an intern leaves, that is a strong indication the unpaid internship was in violation of the criteria. Alternatively, businesses may offer a paid internship, which requires compliance with minimum wage and overtime laws. A defined time frame, often coordinated with an academic program, helps differentiate all internships from regular employment positions.

—RaeAnne Marsh Fisher & Phillips, L.L.P. laborlawyers.com U.S. Department of Labor, internship fact sheet http://1.usa.gov/Ai7ZvV

24/7 Access to Licensing and Inspection Service Advanced

The inspection and licensing process required to open a business location often takes four to six months to complete. A task force initiated by Phoenix councilmen Sal DiCiccio and Tom Simplot aims to cut that time dramatically by implementing a program that enables businesses to work on their time frame rather than being tied to the government office hours of 8-5, Monday through Friday. “It will speed up the economic recovery,” says DiCiccio, who sees the program as an incentive that will attract new business to the city and expects to roll it out in first quarter 2012.

Instead of government employees, the self-certification program will engage individuals — DiCiccio expects these to be mostly architects and engineers — who have been certified by the City of Phoenix with an understanding of city codes and policies. This will give businesses more flexibility to schedule an inspection at times convenient to them, whether wee hours of the morning or at the 11th hour. The city will maintain an auditing team to follow up on randomly selected projects. Excluded from the program will be high-rises and hospitals because, DiCiccio explains, they are very technical in nature.

A similar program helped in the speedy opening recently of a $6 million Samsung inbusine ssmag.com

Quick and to the Point

plant in Austin, Texas, says DiCiccio, who had begun developing the idea two years ago, after seeing the inspection and licensing process for an adaptive reuse project take 1½ years. One hundred ten people serve on the task force, including small-business owners, bankers, shopping-center owners and large homebuilders.

—RaeAnne Marsh

Corporate Store Adds to Franchisee Feedback

“We get more buy-in from the franchisees when they know that we’re going to get their feedback and adjust the program as needed,” said Pump It Up CEO Ken Knowlton shortly before the national franchise chain’s February 1 roll-out of its new Adventure Parties program. At an even more basic level, franchisee feedback during Alpha testing lets the franchisor determine whether a new program is going to get the green light for further development.

However, while Pump It Up will continue to Alpha test some programs at franchisees’ stores, as it did with Adventure Parties — Knowlton has found that franchisees who have questions about a new roll-out value input from other franchisees who have tested the program — the company now operates a corporate store in Tempe “so we could do more testing and learn more about store operations, maintenance, et cetera,” Knowlton explained.

Knowlton believes operating the corporate store strengthens corporate management’s relationship with the franchise community.

“They feel we can better understand their dayto-day challenges. And they like that we will often Alpha test a product or program in our store to ensure we work out the kinks in our own store versus a franchisee’s,” he said, noting that can save the franchise community time and, possibly, costs.

Successful Alpha testing is followed by Beta testing in a few stores, when the idea is fine-tuned and results studied to determine whether to roll out the new offering as required, optional or regional. For the Adventure Parties concept, which takes the idea of a themed birthday party and expands it into interactive activities that encourage the kids to use their imagination, the Tempe store was one of three for its Beta testing.

“If we do a national promotion, we want to be sure [the new program] can be executed

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F e b r u a r y 2012

From Inn Lobbies to ‘In’ Meeting Spaces Newly incarnated as HYATT houseTM, the former Hyatt Summerfield Suites in Scottsdale is one of the first in the Hyatt brand to deliver the company’s new concept of public meeting space. Creating more of a casual social hub or business meeting location than impersonal hotel lobby, the remodel is part of an industry trend that is proving popular among guests and is boosting food and beverage revenue.

Says Dave Murray, general manager of HYATT house Scottsdale, “We are an extendedstay property at heart. [The remodel] makes it Rendering of a Hyatt House Lounge. feel more like home.” Hotel guests can, in turn, invite guests — “like you’d invite to your house,” he adds. The front desk has been replaced with a guest-host arrangement, with décor and music contributing to an upscale apartment atmosphere. In the morning, the space houses the hotel’s full-breakfast bar; in the evening, it’s the site of the new H Bar, which offers a varying selection of beer, wine and light fare such as pizza. Providing guests an outdoor option, the renovation includes a covered walkway to link the indoor space to the gazebo area.

—RaeAnne Marsh HYATT house scottsdale.house.hyatt.com

in the store and that it can deliver on what we want it to,” said Knowlton. And with questions and issues already vetted, “The program is stronger and the roll-out is easier.”

— RaeAnne Marsh Pump It Up pumpitupparty.com

Fountain Hills Incubator to Aid Business

Opening a business incubator in February, the Town of Fountain Hills addresses one of the key areas of its economic development plan: to increase its daytime population by creating jobs in areas other than retail. The incubator, JumpStartBiz, will focus on businesses in health and social services, scientific professions and technology, and finance and insurance, explains Michael L. Tyler of Arizona Business Advisors, the company that will manage the incubator.

Other businesses will be considered if slots are available, says Tyler, who anticipates being able to accommodate 15 to 20 clients at a time.

JumpStartBiz is a drop-in rather than resident incubator, providing access to computers

and conference room in addition to Arizona Business Advisors’ consulting services.

In addition to helping start-up businesses, JumpStartBiz will be a resource for existing businesses. “It will be more structured than other incubators,” he says, explaining Arizona Business Advisors will act as a virtual board of directors for the participating businesses — helping work out operational matters such as business plans and financial action plans as well as monitoring results. JumpStartBiz, which will serve Fountain Hills, Scottsdale and surrounding areas, will also offer workshops and networking opportunities.

The incubator is a public-private partnership of the Town of Fountain Hills; the Fountain Hills Chamber of Commerce; Craig C. Capirchio, Ltd., CPA; Meridian Bank; and the law firm of Sternfels & White, PLLC. “We anticipate more sponsors as we get the program up and running,” Tyler says, explaining that, at the highest level of sponsorship, the incubator will accept only one business per industry.

—RaeAnne Marsh Arizona Business Advisors azbizadvisors.com JumpStartBiz jumpstartbiz.net Town of Fountain Hills fh.az.gov

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Photo: Hyatt Hotels Corporation

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F e b r u a r y 2012

17

By the numbers

Quick and to the Point

Employment Positive for 2012 The employment picture for 2012 looks to be less dour than was 2011. The December report of SurePayroll’s Small Business Scorecard, a nationally recognized economic indicator that tracks the health of the United States small business economy, reveals 63 percent of small-business owners are optimistic about the economy — and 50 percent plan to hire this year. National surveys of CFOs report similar predictions for hiring among larger companies.

“We saw caution in 2011, but the leading indicators suggest 2012 looks positive,” says SurePayroll CEO and President Michael Alter about the Small Business Scorecard data. “The sun is on the horizon. Optimism is higher, 50 percent plan to hire and wages look to go up.”

Small business is commonly regarded as the major job creator, and the Small Business Scorecard provides insight into how Phoenix compares nationally. In Metro Phoenix, paycheck size was already trending positive, with 2011 ending 4.2 percent higher than 2010, although employment was 1.3 percent lower. In comparison, the greatest growth in paycheck size occurred in St. Louis, with 10.8 percent, and the greatest loss in Indianapolis, with 14.4 percent; San Antonio came in strongest in hiring, with 8.3 percent growth, and Sacramento suffered the greatest job loss, at 15.9 percent.

Key Indicators

With the hiring squeeze loosening up, even moderately, employees who have been asked to take on increasing responsibility for decreasing pay may take the opportunity to better their situation at another company. A report released

by Regus at the end of last year found that most U.S. workers not only put in longer hours at work but bring work home with them. Says Sandy Goode, vice president of Regus’ Western Region, “In the U.S., where the American Institute of Stress reports that coronary heart disease is much more frequent in individuals experiencing high levels of job-related stress, the long-term effects of this over-working could be damaging both to workers’ health and to overall productivity as workers drive themselves too hard and become disaffected, depressed or even physically ill.”

The bright spot in Regus’ study is among businesses that allow their work force the flexibility of working remotely. Says Goode, “While our survey found remote and mobile workers generally worked longer hours, there is a growing body of evidence suggesting that remote workers are more productive, have a higher job satisfaction and lower stress levels.

These workers typically spend far less time commuting, freeing up more time for their job.”

—RaeAnne Marsh

Key indicators for the Metro Phoenix economy are provided in each issue to identify those key numbers that give readers a sense of the health of our local economy.

Economic Indicators (Metro Phoenix)

Number

Unemployment (Nov. 2011)

7.9%

-1.0

1,735.9

2.0

No. of Housing Permits (Oct. 2011)

667

10.4

Consumer Confidence* (Jan. 2012) (Maricopa)

73.5

13.6

Consumer Price Index** (US) (Nov. 2011)

226.7

3.6

Job Growth (in thousands) (Nov. 2011)

Eller Business Research

Retail Sales (Arizona) Sept.

2011

Total Sales

4,306,534

10.4

Retail

2,666,677

8.4

Food

629,732

2.6

Restaurants & Bars

543,124

12.7

Gasoline

486,001

40.7

Contracting

591,084

18.7

Eller Business Research Regus regus.com

Real Estate

SurePayroll surepayroll.com

Metro Areas Showing the Best and Worst Year-to-Date Changes Hiring Index

Paycheck Size

San Antonio

8.3%

-0.7%

Orlando

7.1%

7.8%

Las Vegas

5.3%

Charlotte

Metro Area

Paycheck Size

Hiring Index

10.8%

3.2%

Philadelphia

8.0%

-6.3%

-3.6%

Orlando

7.8%

7.1%

4.7%

-3.2%

Sacramento

6.3%

-15.9%

Greensboro

4.7%

-0.1%

Dallas

4.4%

0.9%

Tampa

4.0%

-1.3%

Pittsburgh

4.4%

-3.4%

Phoenix

-1.3%

4.2%

Phoenix

-1.3%

4.2%

Seattle

-7.9%

1.4%

Las Vegas

-3.6%

5.3%

Boston

-9.1%

-1.2%

New York

-3.7%

1.7%

Cleveland

-9.3%

-8.1%

Cleveland

-8.1%

-9.3%

Cincinnati

-15.1%

-3.0%

Columbus

0.7%

-12.1%

Sacramento

-15.9%

6.3%

-4.1%

-14.4%

St. Louis

Indianapolis

Data from December 2011 survey by SurePayroll of small businesses nationwide Hiring and Wage Comparisons - U.S. Metro Areas (2011 over 2010)

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F e b r u a r y 2012

YOY % Change

Retail Sales (in thousands)

Commercial: Office***

Metro Area

YOY % Change

The Blurring Line between Work and Home Percent of Work Force Who Work 9-11 Hours per Day

92,786

-100,127

Rental Rates (Class A)

$23.45

$24.72

Commercial: Indust.***

35%

Net Absorption (in SF) Rental Rates (General Industrial)

Percent of Work Force Who Take Work Home 3+ Times per Week

68%

56%

Percent of Work Force Who Work 11-hour Days

Net Absorption (in SF)

40%

11%

Percent of Work Force Who Take Work Home to Finish

28%

U.S.

14%

Q4 2010

27.9%

Phoenix

Percent of Work Force Who Work 11+ Hours per Day

Q4 2011

Vacancy Rate

Vacancy Rate

Residential: Total Sales Volume

Q4 2011

Q4 2010

12.3%

14.5%

2,853,602

105,408

$0.51

$0.53

Dec. 2011

Dec. 2010

7,806

6,981

Total Median Sale Price

$129,214

$122,000

Remote (in U.S.)

Fixed Office (in U.S.)

New Build Sales Volume

737

462

72%

38%

New Median Sale Price

$227,695

$228,422

7,069

6,519

$120,000

$115,000

Resale Sales Volume Small Businesses

Large Companies

13%

4%

Data from global survey by Regus of businesspeople, released November 2011

Resale Median Sale Price

* Rocky Mountain Poll ** Consumer Price Index refers to the increase or decrease of certain consumer goods priced month over month. *** Cassidy Turley BRE Commercial Latest data at time of press

inbusine ssmag.com

A View from the Top

Trickle Up

Ted Schuman: Master of Communications Skills

Scottsdale telecom entrepreneur carves his own path to success

by Brett Maxwell Nearly 20 years ago while working for a long-distance company called Allnet Communications, Ted Schuman decided he had the necessary tools to run his own telecommunications company, so he saved up some money, took out a line of credit, and became CEO of what would eventually become an award-winning company. PlanetOne Communications, providing businesses with a free audit of telecommunication expenses and then recommending which of its more than 180 carriers can provide the best service, was named to Inc. Magazine’s exclusive list of the Fastest-Growing Private Companies in America for 2011.

PlanetOne saw revenue jump from $4.8 million in 2007 to $8.2 million in 2010 — a 71 percent boost — and the company just posted its 2011 revenue at $10.2 million, a 24.4 percent increase over 2010. However, success did not come immediately or easily for the Scottsdale company. Schuman had to learn on the fly about what it takes to run a successful telecommunications business. “I’m self taught,” Schuman explains. “There wasn’t a model or an entity to emulate.” He says it took time to craft a business model that would help his company efficiently cater to the specific needs of each client. His company also endured the market crash of the dot-com industry that doomed countless communication companies a decade ago. “The telecom sector blew up overnight,” Schuman says. “We went from being en vogue to out of fashion and out of touch.”

Schuman credits the company’s ability to survive the troubling times to advice he received from his attorney. “[My attorney] says, ‘Go back and worry about making money this month, don’t look six months down the road,’” Schuman recalls. “It was overly simplified but couldn’t have resonated any louder. There was a lot of clarity in that comment.” Schuman heeded the advice and did what he could to make each day a successful one. “We tore the rear-view mirror out of our corporate car … and looked forward and didn’t sit around and commiserate about [the state of the industry].” Schuman says this is the attitude and philosophy helping propel PlanetOne into the elite ranks of the telecom industry. The company has managed to post significant net growth every year since the bubble burst on the dot-com boom.

Another pillar that stabilizes the structure of Schuman’s philosophy is a fading art form in the modern business world — the personal touch. Face-to-face meetings and business handshakes are being phased out

by Skype conference calls and do-it-all smart phones. In late 2010, PlanetOne was vying against seven other companies for a telecom partnership with American Express. Unlike his competitors, who either e-mailed or shipped proposals to American Express as requested, Schuman caught a red-eye flight from Phoenix to New York so he could hand-deliver the documents and give a sales pitch. PlanetOne and American Express have been partners ever

since. “It’s really the secret sauce, if you will, to what’s been the cornerstone of the foundation that [PlanetOne] builds upon,” Schuman says of face-to-face interaction.

The personal touch extends to PlanetOne’s 15 handpicked employees, who average 15 years of experience in the telecom industry.

Friday barbecues, sales incentive contests and trips to ball games are just a few examples of how Schuman invests in employee morale.

Schuman has hired cleaning services to tidy up the houses and cars of sales contest winners.

“We try to keep it fresh and exciting,” Schuman notes. Every year, a few employees are given international trips, which are awarded during the holidays.

“We’ve always held onto a few core values in growing PlanetOne: work hard, exceed expectations, provide value, do the common things uncommonly well,” Schuman says.

Referring to the Inc. Magazine recognition, which he characterizes a “team trophy,” he says, “It’s taken us exactly 20 years to make it as an overnight success.”

PlanetOne Communications planetone.net

Photo: PlanetOne Communications

Numbers Speak Well for PlanetOne

■■ PlanetOne Communications was founded in 1992. ■■ PlanetOne Communications ranks 48th among ■■ ■■

The company does business with more than 180 carriers globally.

The company’s revenue in 2010 was $8.2 million.

CEO Ted Schuman has projected a 27-percent revenue growth for 2011.

inbusine ssmag.com

■■

private businesses in Metro Phoenix and 104th in the telecommunications industry nationally on Inc. Magazine’s 2011 list of fastest-growing companies.

Posting revenue of $10.2 million for 2011, PlanetOne charts a 24.4-percent revenue growth over 2010.

F e b r u a r y 2012

19

Leadership

A Path to Follow

Break the Innovation Chokehold

Stop ruling like a (not-so-benevolent) dictator and start encouraging big ideas

by Michael Feuer Do you lead your team like you’re the great and powerful head of your own nation? Hidden away in your office, shielded from others, do you deliver orders that must be followed, never considering what your employees might think?

Do you parade the halls, factory floors or store aisles of your organization, holding audience with only the small entourage of upper management trailing after you?

To achieve true innovation, you can’t lead like an iron-fisted dictator, where your word and only your word is final. You should instead lead as a benevolent dictator — “benevolent” being the operative word — who always puts the company, the employees and, most importantly, the customer first.

As boss, you must be poised to seize the moment and capitalize on unique opportunities when they’re presented. But they’ll never be presented if you don’t stir the pot by constantly listening to your employees and challenging them to think about “What if?” in order to improve your products, processes or procedures.

So how can you cull valuable ideas from your employees, benevolent dictator-style?

When you have a problem, ask the people in the trenches first. As a leader, it may be difficult to admit your employees just might know the ins and outs of certain aspects of the business better than you do. After all, your employees spend all day, every day, listening to customer concerns and complaints. They know which internal processes slow progress and which ones make it happen more quickly.

The best way to turn negatives into positives is to first understand the problems and then discover alternatives to prevent them in the future — and that means establishing a giveand-take with the people in the trenches.

Challenge your employees by constantly asking them if there’s a “better way.” A better way might mean eliminating redundant and nonproductive measures or simplifying overly complicated ones — all while finding new hot buttons that will better serve your customers.

Ask your employees to make two lists: one of the tasks they currently complete and a second that lists new initiatives that could potentially

20

F e b r u a r y 2012

boost revenue and produce a return. Most importantly, make sure you have a means of “measuring” these ideas. You can’t just announce a need for change without creating a formal process to vet each worthy recommendation.

When you openly challenge your employees rather than ignore them, they become more motivated and you gain the opportunity to benefit from their innovation.

Start going on business walkabouts. To interact with your employees, you have to go to where they are. You have to get out of your office and be more accessible to them. When your employees see you often, they become more comfortable with you. They start to see you as another human and not as the big boss who shouldn’t be bothered. And when they’re more comfortable, they’ll speak more freely.

Business walkabouts have been an important part of my leadership style for years. For me, they were always a great way of taking a quick break while assessing the organization by engaging in short conversations with staff members from clerks to vice presidents. It also let employees know that I was paying

attention, was accessible and, most importantly, that I cared. People like to have a sounding board, and when that sounding board is a top executive, it is even better for them. They feel their voice is really being heard and that they are truly a valued member of the organization.

Ask relevant questions. Before you start your daily walkabout, think about what the problems of the day might be. Consider who the best employee or group of employees will be to ask about these issues. Then, ask the questions that will lead to solutions.

For example, if there is a known bottleneck in the shipping and receiving area, go to the area and discuss the problems with the employees. You might ask, “How can we improve our intake process?” or, “Where does the process start to back up?” It’s highly likely their answers will lead to solutions, and, better yet, solutions that they, themselves — because they have an experienced understanding of their department — can easily implement. Asking relevant questions engages employees and encourages give-andtake communications. inbusine ssmag.com

Books Remember, every idea deserves a fair shake. You may have little time (or little patience!) to entertain every piece of employee input that comes your way. But being too quick to dismiss their ideas will only discourage innovation. Meet them with negativity or put them on the back burner to be forgotten, and your employees will start to think, “What’s the point?” Then, when you discover you do need their feedback, they won’t be there to give it to you.

Encourage employees to think carefully about their ideas before presenting them to you or their immediate superior. Teach them how to weigh the pros and cons. Before dismissing an idea, always ask, “Why?” Your employee’s explanation just might spark a thought that puts their original idea in a new perspective.

Employees understand that every idea won’t work, and they don’t expect every single suggestion they have to be implemented. But simply giving them the respect of your consideration will motivate them to keep on thinking about ways to improve the company — and, eventually, they’ll bring you a real moneymaker.

Find creative ways to override “innovation inertia.” One of the truly fun aspects of being a boss is, at times, getting to make up certain rules of exploration and engagement. You establish the goals, create expectations and determine measurements. You also get to think up better ways to do what’s already working, and you get to anticipate needs that customers have yet to recognize themselves. Yet one of the biggest threats facing small, medium-sized and, yes, even Fortune 500 companies is inertia. This can, over time, prove fatal to any organization — and it’s unnecessary.

One effective method for avoiding innovation inertia and creating an environment where employees feel involved and motivated is to divide employees into innovation teams. When Team A is working on a product, process or project, the next new-and-improved version becomes Team B’s job. While Team B picks up the gauntlet, the original team starts on something completely different.

Members of Team A feel satisfied by their accomplishments and can savor the moment while gaining enthusiasm for their next undertaking. Meanwhile, Team B is motivated to top its predecessor with improvements that the first group may not have even envisioned.

This method will keep complacency at bay and help you create a culture of innovation where everyone is focused on two things: doing their current job at the highest level and constantly thinking about what’s next.

Being a good manager means accomplishing objectives through others. Being a great leader means keeping the team focused and motivated, the lines of communication open and the innovative ideas flowing.

The Benevolent Dictator: Empower Your Employees, Build Your Business, and Outwit the Competition benevolentdictator.biz

Michael Feuer, drawing on his experience as CEO of OfficeMax — which he cofounded in 1988 starting with one store and $20,000 of his own money, a partner and a small group of investors and grew to more than 1,000 stores worldwide with annual sales topping $5 billion — as well as CEO of venture capital and retail consulting firm Max-Ventures and founder and CEO of health-and-wellness retail chain Max-Wellness, authored The Benevolent Dictator: Empower Your Employees, Build Your Business, and Outwit the Competition with editor Dustin S. Klein.

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Books on Leadership

Leadership is Dead: How Influence is Reviving It Anyone can make an impact. All that’s needed is influence — the most potent professional asset on the planet. The problem is that influence is also the most underused asset on the planet. And the primary reason is that the enemy of influence is a universal human trait: self-preservation. People guard their ideas, their status and their reputation.

This book shows that the key to effective leadership is learning how to influence in a way that engenders greater trust, stronger partnerships and more impactful endeavors.

Jeremie Kubicek $14.99 • Howard Books • February 2012

Beyond Performance Management: Why, When, and How to Use 40 Tools and Best Practices for Superior Business Performance While many tools are sound in theory, they’re misused by most organizations. For example, executives buy and implement a tool without first asking, “What problem are we trying to solve?” And they use tools to command and control frontline teams, not empower them — a serious and costly mistake. In this book, the authors critically review dozens of well-known management tools, and explain how to select the right tools for the organization, how to implement them correctly and how to extract maximum value from each.

Jeremy Hope and Steve Player $29.95 • Harvard Business Review Press • February 2012

Building a Magnetic Culture: How to Attract and Retain Top Talent to Create an Engaged, Productive Workforce Building a Magnetic Culture explains what engages and motivates employees and how to create an environment in which employees can thrive. Drawing on years of research and realworld examples from his consulting experience, Sheridan shares the strategies and tactics businesspeople need to transform their company by creating and sustaining a Magnetic Culture. Providing benchmarking and best practices as well as interviews with executives and HR professionals at companies that boast the highest levels of employee engagement, Sheridan outlines an easy-to-follow plan.

Kevin Sheridan $28 • McGraw-Hill • On shelves and online

Taking People With You: The Only Way to Make Big Things Happen This book has specific tools at the end of each chapter that will challenge and assess how businesspeople are really doing on key aspects of leadership — and enable immediate improvement.

Readers will learn how to get inside the heads of their people; show occasional vulnerability and admit when they don’t have the answers; look for good ideas in unexpected places; choose a can-do mind-set; cheer for first downs, not just touchdowns; and get rid of cynics.

David Novak $26.95 • Penguin Group • On shelves and online

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inbusine ssmag.com

Celebrating our Centennial as we take stock of what we can become

by Brett Maxwell

hen Arizona became a state 100 years ago, the economy depended so much on the natural resources of the land. Mining and agriculture flourished in Arizona’s wideopen spaces during the state’s infancy. Although the two industries do not fuel immense economic growth, Arizona still leads the nation in copper production, and agriculture is a very important industry because supplying a growing population with food is essential for the future. In the next 100 years, Arizona will be competing against a global marketplace to draw companies that create high-paying jobs and stimulate the economy.

What happens during the state’s effort to develop economically rests upon a slew of circumstances. “The market system is always pulling surprises,” JPMorgan Chase Economic Outlook Center Director and research professor at Arizona State University’s W. P. Carey School of Business Lee McPheters says. “There are innovations and things we have no inkling of right now that will probably be a big factor 20 years from now.” The market will fluctuate as companies and businesses determine what consumers want to spend money on. The following industries are working to grow and lead Arizona into the next century.

Agriculture

Arizona’s agriculture industry faces many obstacles to remaining a healthy contributor to the state’s economy in the state’s second century.

Population growth, water supply and immigration and labor issues loom large. The state’s 5,500-square-foot southwestern quadrant, which produces more than one-third of Arizona’s $10.3 billion annual agricultural revenue, is combating those issues and shining a light on what the future of the industry will look like in Arizona.

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rights from the Colorado River, much of which is used for agricultural production. If the record-setting droughts of recent decades are an indication of what the future holds for Arizona’s water supply, doing more with less is a must. “[The University of Arizona] has faculty who are developing new irrigation strategies that reduce water use while not impacting crop growth and yield,” Nolte says.

Tourism The state’s 5,500-squarefoot southwestern quadrant ... produces more than onethird of Arizona’s $10.3 billion annual agricultural revenue.

According to projections from the U.S. Census Bureau, Arizona’s population will double to nearly 11 million by 2030. In order to keep supply meeting the demand of a growing population, workers must be able to harvest agricultural products. Many workers from Mexico work legally in the U.S. and a large number them are employed in the fields of Yuma County. Congestion at the border is causing long wait times for employees who enter the U.S. daily for work, which is hurting the labor market. Productivity is down because many workers cannot perform a full day of work because of border delays.

“With the environment in Washington, [D.C.], immigration is just not something anyone wants to touch right now,” President and CEO of the Greater Yuma Economic Development Corporation Julie Engel says. Legislators have squashed recent efforts to create a guest worker program that would make it easier to get legal workers across the border faster, Engel notes.

“We could manage [a guest-worker program] ourselves, and we haven’t been given the blessing to do it.”

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Something that is moving forward in the industry is innovation. For more than 100 years, the University of Arizona has been helping Yuma develop the agriculture industry, and the University will continue the partnership to drive the industry into the future. Natural resources and manpower are dwindling, so the University is researching and developing ways for farmers to increase efficiency. “The current mission of Arizona agriculture — and they are doing a fine job of it — is to promote energy conservation and efficiency and to reduce energy demand by developing and implementing comprehensive energy conservation plans,” says Kurt Nolte, agriculture agent for the University’s School of Plant Sciences. “The use of advanced agricultural technologies is a part of this plan by reducing the number of times a tractor or other piece of equipment enters a field.”

Ensuring Arizona has enough water to be able to grow crops for future generations will be an important endeavor for economic success in agriculture. Yuma County, by state constitution, is allotted one-third of the water

Plentiful sunshine and a diverse and unique landscape are among many factors that make Arizona a desirable destination for many domestic and international visitors who pump money into the state’s tourism industry, one of the state’s largest economic drivers. Directtraveler spending generated $17.7 billion in 2010, which created roughly 152,200 jobs that led to $4.7 billion in employee earnings and contributed $2.5 billion in local, state and federal tax revenue.

Officials estimate there will be a state budget surplus of anywhere between $416 million and $650 million when the state’s fiscal year begins July 1. Some officials would recommend banking any budget surplus, because extra cash has been scarce in the past four years and a looming $3.7 billion general-fund debt faces the state. But Gov. Jan Brewer could not resist the temptation to invest $7 million of the state’s projected budget surplus into the office of tourism, bumping the department’s budget up to $12.4 million when the fiscal year begins. “[The governor] putting this money into her prepared budget just shows again her continued support, because she believes tourism is important to Arizona’s economy, is a part of the economic driver, generates taxes and generates jobs,” says Arizona Office of Tourism Director Sherry Henry.

The Grand Canyon is world famous and the Phoenix metro area hosts numerous revenuedriving conventions and sporting events, so the untapped potential lies in promoting the state’s rural areas and advertising to domestic and international markets. Henry says the department’s future plans include a national advertising campaign, an advertising program for rural communities and becoming more inbusine ssmag.com

aggressive in the international marketplace.

“This additional funding will allow us to get into markets and do advertising that we have not been able to do for about three years,” Henry says. The office will focus on advertising and marketing to China, Brazil and India, she says, because U.S. Travel Association research shows that visitation to America from these countries is increasing at a significant pace. Bringing international visitors to the Grand Canyon State is an important tactic because they spend about $4,000 per person and stay longer than domestic tourists, which means more money for hotels and restaurants.

Getting visitors to discover some of the outshined gems hidden throughout the state’s vast rural area will help spread the word nationally and internationally. One of those gems is Arizona’s wine industry, which generated $38 million in 2010. More than 650 acres of vines produce about 66,000 gallons of red and white wine a year across rural Arizona.

“The wine industry is really just getting off

the ground, and it will continue to be a huge economic driver,” Henry states. The industry is gaining economic traction and becoming recognized for producing a world-class product.

Real Estate

When it hit its peak, Arizona’s real-estate industry was a monster job creator and huge economic contributor. According to the U.S. Bureau of Labor statistics, construction jobs were at an all-time high in June 2006 at roughly 244,300, a direct result of the state’s housing market boom. The ensuing housing market nose dive resulted in the loss of roughly 128,600 construction jobs throughout the state as the number fell to nearly 115,700 in October 2011, a 55 percent decrease. The picture of Arizona’s economical future is not complete without a view of what the real-estate industry might look like, and a recovery in the industry will be essential for the state’s future economic growth.

“There will be a recovery,” says Elliott D. Pollack, president of the economic and

real estate consulting firm Elliott. D Pollack & Company. “Phoenix will grow rapidly relative to other places in the country, but it has to crawl its way out.” A sizeable hole in the industry remains as nearly 55,000 excess homes are unoccupied and foreclosures and short sales drag down home prices.

In the third quarter of 2011, 25 percent of transactions for existing homes were from foreclosures and 29 percent were from short sales, in which a home is sold for considerably less than the price at which it was purchased because of a failing market. But there are some indications that a revival could be on the industry’s horizon.

ASU’s McPheters predicts a 20 percent increase in single-family housing permits for 2012, but the number of such permits is down 89 percent from its peak. As the home-ownership rate remains low, more people will take up space in apartments throughout the Phoenix area.

“The apartment market will be strong,” Pollack says. “People who were otherwise in singlefamily homes [are going] to apartments. And

The Grand Canyon is world famous ... so the untapped potential lies in promoting the state’s rural areas and advertising to domestic and international markets. inbusine ssmag.com

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there’s people first coming to town — if they’re younger, they’ll go to an apartment.”

Pollack notes that in the Phoenix area, housing prices, a key indicator of market health, have begun to stabilize and the number of homes going into foreclosure has declined.

If that trend continues, and other economic sectors add jobs to bring in more people, Pollack believes the housing market could bounce back in three to four years.

What the industry will look like in the future depends on myriad factors, but Pollack believes another housing bubble burst will not happen for at least a handful of decades.

“This might happen again 25 to 30 years from now, but I doubt even that,” Pollack says. “It’s like the [parable of the] cat that sits on the hot stove — [it’s] not going to sit on a stove, hot or cold, anytime soon.”

Healthcare

The healthcare industry has made big strides in job growth, but keeping the industry profitable and educating and recruiting professionals will determine the state’s future success in filling positions in an expanding job market and in its ability to maintain market stability. Health and education services jobs grew 69 percent from the

“Phoenix [real estate] will grow rapidly relative to other places in the country, but it has to crawl its way out.” —Elliott D. Pollack beginning of 2001 to October 2011, according to the Bureau of Labor Statistics. The Bureau’s most recent monthly report on job numbers has statewide health and education services employment at about 364,600, putting the industry third place among all economic sectors behind the trades, transportation and utilities division and employment in government.

The Arizona Hospital and Healthcare Association provides advocacy at state and federal levels of legislation through its members, and offers education and other health-related services to the public. The association is battling for industry success and is pushing initiatives and plans to help it reach its goal of market success. Deep cuts to the state’s Medicaid program, Arizona’s Health Care

There is potential for huge industry job growth in healthcare, but the state will need to fill nearly 49,000 registered nursing positions alone by 2017.

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Cost Containment System (AHCCCS), will cause increasing numbers in uninsured visits to the emergency room, AHHA Vice President Pete Wertheim says. More uninsured visits cause lowered reimbursement rates, making it more difficult to make money from provided services. Wertheim states that payments under healthcare reform will be based on quality of care, not quantity of service. Providers will need to become more efficient to provide good care that keeps patients healthy to help compensate for losses in the reimbursement rate. “[Outcome-based payment] is a massive transformation of the healthcare industry,” Wertheim says. “There’s a lot of risk and reward that can come of this.” The risk is the uncertainty of an untested payment plan, and the reward is successfully recouping losses.

Quality healthcare comes from quality practitioners. AHHA believes retaining, training and recruiting employees is important to fill current and future shortages the industry faces as a result of the state’s rapid population growth and an aging work force.

Also contributing to the shortage is the fact that one-third of registered nurses are older than 55, according to the association. There is potential for huge industry job growth, but the state will need to fill nearly 49,000 registered nursing positions alone by 2017, the association says.

“The education is really the best way,” Wertheim says of recruiting and grooming health industry employees. “Young physicians tend to like to be at the best facilities that are innovative, cutting-edge and, ultimately, developing enough residencies within hospitals throughout the state.” Wertheim says physicians typically stay within the state they were educated if employment opportunities exist. inbusine ssmag.com

Technology

Arizona is showing aptitude in its technology industry with its ability to recruit companies in sectors such as aerospace and research and development. Technology giant Intel and other companies have set up shop in the state. If Arizona can maintain growth in technology, the future is promising.

The Milken Institute, an esteemed accumulation of economists, industry experts and scholars who evaluate concerns and options facing decision-makers across America, has ranked Arizona number 15 on the summary of its 2010 State Tech and Science Index, which ranks the states by how many jobs are created through investments in the technology and science industry. This is three spots higher than the Institute’s previous study in 2002. The Institute works with industry policy-makers from the public and private sectors to try and push the economic direction of technology forward through tracking and evaluating each of the 50 states’ capacity to translate tech and science potential into new companies and high-paying jobs, and its finding is that Arizona must invest in human capital, be on the cutting edge of research and development, and create an infrastructure to allow entrepreneurs to flourish if the state wants to expand its technology industry.

Avnet, which distributes electronic parts and computing and storage products to more than 300 countries, ranked 132 on the 2011 Fortune 500 list. The company, founded in New York by Charles Avnet in 1921, is now headquartered in Phoenix and is working with the Arizona Technology Council to ensure the state is harboring and nurturing the industry. “The [membership with the council] provides invaluable professional development opportunities,” says Steve Phillips, council chairman emeritus and chief information officer of Avnet. “[The membership] creates a collective voice to communicate ideas to the legislature that we feel will expand the technology industry and Arizona’s economy.” To encourage advancement, the council promotes and sponsors public-policy initiatives, industry education, networking opportunities, and programs that honor inbusine ssmag.com

businesses and entrepreneurs who contribute most to technology in Arizona.

Arizona Technology Council, a nonprofit trade association connecting the state’s technology industry, is working through legislation to attain its goal of constructing a favorable environment for technology companies that generate high-paying jobs to move to the state. “It is not so much what government can do for you but what it can do to you if you are not engaged in the process,” says AZ Tech Council President and CEO Steven G. Zylstra. “Political leaders need to know the ramifications of their decisions on the technology industry.” He notes that technology is a base industry which can create the highest-paying and highest-quality jobs of any sector, and believes government’s role is to enable the free market process to work.

A Different Hundred Years Byron Schlomach, director for the Center of Economic Prosperity at the Goldwater Institute, says entrepreneurs “are an engine of innovation. Entrepreneurs point the way to the future, and, for an economy to thrive, entrepreneurs are needed.” Arizona’s future depends upon a countless number of

scenarios. The state’s ability to preserve water, train and recruit skilled employees, promote investments from entrepreneurs, attract visitors and legislate appropriately will help determine the state’s path in the next century.

The future is vastly different from the past for Arizona. The state’s roots in agriculture are strong, but future economic viability lies within emerging industries such as healthcare and technology. The state government’s ability to adapt to a changing and evolving global market and maneuver economic land mines will tell the story of Arizona’s future.

Arizona Hospital and Healthcare Association azhha.org Arizona Office of Tourism azot.gov Arizona Technology Council aztechcouncil.org Avnet avnet.com Elliott D. Pollack & Company edpco.com Goldwater Institute goldwaterinstitute.org Greater Yuma Economic Development Corporation greateryuma.org Milken Institute milkeninstitute.org University of Arizona School of Plants Sciences cals.arizona.edu/spls U.S. Bureau of Labor Statistics bls.gov U.S. Census Bureau census.gov W. P. Carey School of Business wpcarey.asu.edu

Arizona must invest in human capital, be on the cutting edge of research and development, and create an infrastructure to allow entrepreneurs to flourish if the state wants to expand its technology industry.

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They Built Arizona

And, as Arizona’s invisible backbone, high-tech innovator and genetic sleuth, these three businesses continue to drive our state’s economic engine

by Sue Kern-Fleischer

APS vice president and chief customer officer.

“Without electricity, your laptop becomes a five-pound paperweight.”

Energy is an essential component to the economy, and APS clearly plays a key role in building Arizona. In 2010, APS’ overall economic impact on the state was $3.4 billion; APS invests $1 billion each year to build a reliable, cleaner and more efficient energy future; in 2010, APS spent $945 million on goods and services with Arizona firms; that same year, the electric company’s 6,700 employees and their families volunteered more than 165,000 hours, which translates into $3.4 million in service to the community.

In addition, in 2010, APS invested more than $6.7 million in community revitalization and education programs with a focus on science, technology, engineering and math. “We take

In the mid-20th century, in addition to regular utility service, APS operated retail appliance storefronts such as this one in Downtown Phoenix

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APS lineman

our leadership position very seriously. This is where we live … It’s not just about doing business,” McLeod says.

Calling APS “a progressive utility,” McLeod says a heavy emphasis on customer research enabled the company to develop programs 30 years ago that utility companies in other states are just now starting to implement.

“Our customers have a huge amount of choice regarding rate, billing and payment options. We strive to make it convenient and work with their lifestyle.”

If APS is powering your laptop, there’s a good chance it’s operating thanks to an Intel chip inside. As the world leader in silicon innovation, Intel introduced the world’s first microprocessor in 1971. Based in Santa Clara, Calif., Intel established a presence in Arizona in 1979 and began operations in Chandler in 1980. Worldwide, Intel has manufacturing facilities in seven locations and hundreds of research and development, assembly, test and sales offices. Arizona is home to two high-volume manufacturing facilities, Fab12 and Fab32 (and Fab42 currently under construction), with a total of 10,300 employees, making Arizona the second-largest Intel site, and Intel the largest employer in Chandler.

“The result of having Intel in our community brings good-paying jobs, local economic stimulus, workforce training, community and education partnerships and responsible corporate citizenship,” says Shelly Esque, Intel’s vice president of legal and corporate affairs. “In addition to our employee base, approximately 26,000 other jobs are created through other companies, vendors and suppliers, resulting in an increased economic impact on the area.” inbusine ssmag.com

Photos: Arizona Public Service

We’re the nation’s 48th state and last of the contiguous states, and here we are — celebrating our State’s Centennial.

But just because we were late to the party doesn’t mean we were lacking in drive, innovation and tenacity. Several businesses and nonprofits played an important role in shaping Arizona’s growth, and, as we look forward, these organizations are sure to influence our state’s economic engine for years to come.

Take the state’s largest and longest-serving taxpayer, Arizona Public Service. A subsidiary of Pinnacle West Capital Corporation, APS installed one of the West’s first electric plants in Phoenix in 1886, and now serves more than 1.1 million customers in 11 of Arizona’s 15 counties. “I like to think of APS as the invisible backbone of Arizona,” says Tammy McLeod,

Photos: Intel Corporation (top), Translational Genomics Research Institute (bottom)

Intel’s annual economic impact to Arizona is estimated at $2.6 billion. Since 1996, Intel has invested more than $12 billion in hightech manufacturing capability in the state and spends more than $450 million each year in research and development. Like APS, Intel believes in giving back to the community. In 2010, more than 4,100 employees volunteered in area schools and nonprofits. Through Intel’s matching grant program, the company’s annual giving program and its direct giving, Intel and its employees donate more than $10 million annually to the community. Intel is also very focused on preparing students for the 21st-century economy. One of the company’s educational programs, Intel TEACH, is a professional development model that helps teachers integrate technology into their lessons.

In the past 10 years, 17,500 Arizona teachers have been trained in this program. “It has been very successful at promoting student problemsolving, critical-thinking and collaboration skills,” Esque says.

In the biomedical sciences realm, some of the most exciting breakthroughs are taking place right here in Arizona, thanks to the nonprofit Translational Genomics Research Institute. And a Tripp Umbach study released in December 2011 shows that TGen’s economic impact, job creation and state tax revenues continue to climb, outpacing previous estimates. “TGen has become a cornerstone of Arizona’s biomedical industry, continuing to add great value to the Translational Genomics Research Institute

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Intel Corporation Ocotillo Campus, Chandler

state and thriving despite challenging economic conditions,” says Bill Post, recently retired chairman and CEO of Pinnacle West Capital Corporation and recently appointed chairman of the TGen Board of Directors.

The report states that in 2010, TGen operations produced $14.40 for every $1 invested by the State of Arizona, supported 737 full-time jobs (directly and indirectly), generated $4.8 million in state tax revenues and produced a direct annual economic impact of $79.2 million. When the impact of TGen-generated business spin-offs and commercialization are included, the study shows, TGen in 2010 produced $25.04 for every $1 invested, supported 1,124 jobs and generated $10.1 million in state tax revenues and $137.7 million in total annual economic impact.

Fast forward to 2025, and TGen’s role in building Arizona becomes even more impressive. The report states that TGen operations will return $45.62 for every $1 invested by the state, resulting in 3,731 jobs, $23.8 million in state taxes and producing an annual economic impact of $250.9 million.

Including projected business spin-offs and commercialization, the report says TGen in 2025 will return $103.98 for every $1 invested by the state, support 6,585 jobs, generate $48.8 million in taxes and produce a total annual economic impact of $571.9 million.

Tess Burleson, TGen COO and president of TGen Accelerators, says that, nationally, while a few other nonprofits are conducting translational research in universities and hospitals, the scope of TGen’s research is unparalleled. “We’re very fortunate to have TGen here in Arizona,” she says. “We’re bringing those tools that enable personalized medicine

to the front-line of therapy and shaping the way healthcare is delivered internationally.”

Arizona can thank Jeffrey Trent, Ph.D., TGen’s president and research director, for founding the nonprofit nearly 10 years ago in downtown Phoenix. Even though TGen was sought after by many states, Dr. Trent, who grew up in Phoenix, saw that Arizona needed an anchor in biosciences. He was also attracted to the fact that TGen could leverage funding for cancer, neurologic, metabolic and infectious-disease research through multiple partnerships in healthcare, the private sector and Arizona’s universities. Since its formation in June 2002, TGen has expanded its facilities to include laboratory space at the Mayo Clinic Collaborative Research Building in Scottsdale, a research clinic in collaboration with the Virginia G. Piper Cancer Center Clinical Trials at Scottsdale Healthcare, a supercomputer operation in association with Arizona State University and a pathogen genomics and biodefense research facility called TGen North in Flagstaff that was developed in partnership with Northern Arizona University.

In May 2011, TGen licensed its first drug, a unique compound that targets cancer tumors by modifying the actions of proteins. The nonprofit has also made significant strides this past year with clinical trials to treat breast and pancreatic cancer. All of these achievements help to grow Arizona’s knowledge-based economy, attracting out-of-state research investments, intellectual collaborations and world-class researchers.

Arizona Public Service aps.com Intel intel.com Translational Genomics Research Institute tgen.org

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Tech

Innovations for Business

Hackers: Do Not Enter

Hacking is a serious threat to small business, but there are protections

by Alison Stanton When Phoenix entrepreneur Charles Lee decided to launch his Web-based company Mberry selling Miracle Berry tablets, made from the naturally growing fruit that causes taste buds to perceive acidic and bitter flavors as sweet, he spent a lot of time getting his website ready for business. At first, he says, everything was going very well. Sales were brisk and he and his staff were getting busier every day keeping up with orders.

Then, within a matter of months, trouble started. Lee says his website began getting hacked on a regular basis. At one point, it was happening every other week, the hackers gaining access to the website through a security hole in a Web service the company used. Hacking not only left malware and viruses all over Lee’s website but caused his site to either go down completely or load extremely slowly, which caused potential customers to turn away.

As a small-business owner who earns 100 percent of his sales through the website, Lee says each experience was both economically and emotionally devastating. “I lost about

Simple Steps that Help Prevent Hacking

■■ Update the software regularly, ■■ Use an anti-virus program, ■■ Never turn off the firewall, ■■ Do not click on unknown links in social media exchanges, ■■ Change and update passwords regularly, ■■ Don’t just pull a common word out of the dictionary, and ■■ Don’t use the same password for everything.

First-response Actions when Hacked

■■ Immediately remove the PC from the network while troubleshooting, ■■ Download a trusted malware program that will help find the issue, ■■ Back up all data right away, and ■■ Follow the prompts to remove the virus.

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$20,000 in gross sales every time my site was hacked,” he says. “It was a very traumatic point in time for me.” One hacking experience was so bad, Google labeled his site as “insecure,” which led to customers no longer trusting the site.

Lee recalls the sense of utter disbelief he felt every time he realized his website was once again a victim of cybercrime. “I had heard people talking about cyber terrorism, but I thought, ‘I’m a nobody. Why is this even happening to me? What do these people have to gain when they are not even taking my payment information?’”

According to Cindy Bates, vice president of the U.S. Small and Medium-sized Businesses Organization at Microsoft Corp., Lee’s reaction to getting hacked is not only typical, it’s also part of why the problem exists in the first place. Citing a McAfee survey that found 44 percent of small- and midsized-business owners think hacking is a problem only for large organizations, Bates notes that two-thirds of small and medium-sized businesses do not have a plan in place to deal with hacking issues. “But in reality, we do see a lot of hackers targeting small business. Cyber-criminals are not always going after the Microsofts and Procter & Gambles of the world.” And the result can be devastating. “According to the United States Department of Labor, 40 percent of small businesses don’t recover after a disaster, and 25 percent close within two years.”

Bates says flaws are often found at the intrusion monitoring, detection and prevention at the firewall level. In addition,

a lack of encryption can open SMBs up to hacking, especially considering the influx of remote workforces. And in many cases, the sites themselves have some technological flaws that make them more hacker-friendly. “An IT person could leverage a solution like BitLocker or BitLocker-To-Go, which will render data useless to someone who is attempting to hack into the system,” she says, although recognizing that most small and mid-sized businesses do not have a dedicated IT person on staff working on these issues.

“Active Directory sign-on and authentication protocols are important elements to reducing the risk of being hacked. These also allow the small or medium-sized business to scale the level of security to fit the complexity of the business,” Bates says. Also, while noting that Microsoft offers a disaster prep guide as well as Microsoft Security Essentials, a free anti-malware program, she points out that there are very simple measures businesses can take which could go a long way to preventing cybercriminals from successfully attacking a website. These include regularly updating the software; using an anti-virus program; never turning off the firewall; when using social media, not clicking on unknown links; and changing and updating passwords regularly.

“Don’t just pull a common word out of the dictionary and don’t use the same password for everything,” she says.

Bates also advises speaking with employees to let them know how the business will handle any threats to security and what the disaster inbusine ssmag.com

plan will entail. “If it should happen, there are some very simple steps to do right away, like immediately remove the PC from the network while troubleshooting, download a trusted malware program like Microsoft Security Essentials that will help find the issue, back up your data right away, and follow the prompts to remove the virus.”

When choosing a malware program, Bates says business owners should consider the cadence of “definition updates,” which are what help the programs work at an optimal level. “Ideally, the program should update daily to mitigate a business’ exposure to the latest threats,” she says.

Another way businesses can prepare for and survive disasters is to migrate existing systems into the cloud, says Jayson Stangel, director of eBusiness, North America for Business & Decision, a company that has offices in 18 countries as well as throughout the United States, including the Scottsdale office where Stangel is based. “The cloud offers better levels of redundancy spread over a wide geography, which most small businesses cannot afford to do on their own.”

In addition to cloud services, Stangel’s company helps its customers though its Managed Services practice, which owns and operates Tier 3 data centers and disaster recovery solutions. “Customer data is replicated to our disaster recovery site. Because this is done at the hardware level, we have the ability to disaster-proof virtually any application or service.” It starts with helping the businesses define their requirements and understand the impacts of those requirements.

Lee admits his original website had some platform flaws it in that led to it getting hacked so frequently. To help solve the problem and remain proactive about hacking, Lee hired hosting partner FireHost in the fall of 2009, and has remained cybercrime-free ever since.

He is also back in good graces with Google.

However, the analytics that FireHost provides him show that many hacking attempts are still happening. “It has been interesting to see how severe this problem still is,” Lee says.

“But in almost three years since addressing the problem with FireHost, we have not gone down once due to hacking, despite several hundred attempts.”

Business & Decision businessdecision.us Microsoft Corp. microsoft.com Miracle Berry mberry.us

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WHERE YOUR ORGANIZATION GETS NOTICED!

Bringing together nonprofits and the people who support them Call: 480.481.2002 / Email: Myra@Myragards.com Website: blacktie-arizona.com / Brochure: PromoteYourNonProfit.com

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SE C TOR

Industry at Its Best

Solar Gets Its Day in the Sun

by Robrt L. Pela

SRP’s newly commissioned Copper Crossing Solar Ranch in Florence, Ariz., a 20-megawatt facility that is expected to produce approximately 54 million kilowatt-hours (kWh) annually — most of it designated for schools, school districts and/or industrial customers

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SolarWing installation at Phoenix’s Burton Barr Central Library

green movement and continued government incentives, we see no end in sight.”

Where solar is concerned, literally nothing is new under the sun. The techniques for harnessing solar energy have been around for ages: the solar-thermal approach, which employs mirrors to reflect the sun’s heat energy onto a smaller space that, once heated, can be used to boil water and produce steam to run an energy-producing generator, and photovoltaics, by which a silicon semiconductor gathers the sun’s photons and reacts by giving off a flow of electricity.

The technology first entered our collective

consciousness in June of 1979 when President Jimmy Carter had solar panels installed on the roof of the White House’s West Wing, then called a press conference to announce the future of solar power.

So why is solar’s industry enjoying a boom now, all these years later? It is, according to Perfect Power Solar CEO Lynn Paige, thanks to a “perfect storm” of good timing and a lousy economy. “After 30 years of marketing it, solar energy has gone from being thought of as a weird technology used by tree-huggers to a professional, financially positive thing to do for your home or business,” she says. “The economic challenges we’ve faced in the last couple of years have made people more mindful of things like reducing their overhead, bringing their utility bills down and benefiting from tax credits they get from installing solar systems.”

Lori Singleton, manager of Sustainability Initiatives and Technologies at Salt River Project, agrees. “So many facets have come together at once to give renewable energy a higher profile,” she says. “There are policies in place to encourage solar use in Arizona, and the cost of solar products has become more affordable for the consumer. And manufacturing is catching up with consumer needs for solar power at the same time that the federal government is showing some real support for solar projects in general.” She points to the $967 million loan guarantee made last August by the U.S. Department of inbusine ssmag.com

Photos: SolarWing (top), Salt River Project (bottom)

It’s ironic that, while the U.S. has long been a major player in solar research, we’ve always fallen behind when it comes to turning a profit from the solar industry. Until lately, that is. These days, solar power is big business — especially in Arizona, where the sun shines year-round and where the formerly formidable industries of real estate and commercial development are failing.

Thanks to a growing interest in sustainability, concerns over the rising cost of gas and oil, and the support from government incentive programs, the solar industry is really heating up. Local providers both large and small report that business has spiked in the last decade, creating more job opportunities and a greater demand for residential and commercial solar power.

Even in the recession, the solar industry grew by 69 percent nationally in 2010, and continued to show growth in the first quarter of 2011, according to a recent report from the Solar Energy Industries Association. From all indications, this escalation will continue in coming years.

“We’ve seen a significant increase in profit over the last four years,” says Joy Seitz, vice president of business and policy development at Arizona-based American Solar, which has provided renewable energy products to both Arizona Public Service and Salt River Project. “And with ongoing interest in the

Photo: Salt River Project

Energy in support of the Agua Caliente Solar Project, a 290-megawatt photovoltaic facility in Yuma County. The promised funds prompted local business leaders to rally around the solar power flag as a boon to economic recovery.

“Here’s proof that Arizona can survive the bottom falling out of the real estate and construction trades,” says Diane Brossart, president of Valley Forward Association, a clean-energy business organization that recently wrote Secretary of the Interior Ken Salazar, praising him for his efforts to support the state’s transition to clean energy. VFA’s own report on employment and revenue generated from solar and other green energy technologies — which VFA commissioned from Elliot D. Pollack & Company because, although the figures cited about the industry by various organizations are all positive, it found there was no consistency among them — will be presented in early February at VFA and Pinal Partnership’s Renewable Energy Economic Conference and Summit.

Advances and new products power the industry’s economic growth. Among those new products is a canopy system just launched

by SolarWing, a Phoenix-based builder of solar-powered parking structures. The pre-fab SolarWing package offers a sandwich of solar panels and LED lighting that contains twice as many solar panels as traditional products and can capture more energy, significantly reducing an annual electric bill. The package has proven so popular and so efficient that, last summer, its manufacturer became the first green energy company in Arizona to be awarded the Certification Seal from Greener Products LLC, which analyzes sustainable and healthy building products.

In a show of support that might seem out of place in any other industry, Paige applauds her competitor’s recent award. “We’re businesspeople, but we’re also people who chose an industry that provides something lasting that benefits others,” she says. “The fact that the solar industry is booming is proof that the world is starting to acknowledge the kind of benefits, both economic and environmental, that solar can make in the world.”

The Power of Incentives “When the government, the banks and the insurance companies are getting behind a movement,” Paige says, “you know that movement is here to stay.”

In that case, the renewable energy industry has little to fear during these difficult economic times. The nearly billiondollar federal funding of an upcoming Yuma County solar project (see article, above), federal and state tax credits, and ongoing rebate and incentive programs from Arizona’s three main utility companies signal ongoing and sturdy support of the industry.

Both APS and Tucson Electric Power offer incentives for installing energy-efficient lighting, heating, refrigeration and other types of cooling equipment, and in December of 2009, Arizona Corporation Commission adopted a new energy efficiency standard that requires utilities to fund energy efficiency programs with surcharges culled from our electricity bills. Arizona Commerce Authority, which replaced ACC last year, included significant incentives for solar and renewable energy in the economic developmentenhancing legislation Arizona Competitiveness Package. Last year alone, APS spent more than $200 million to finance the installation of solar power products; SRP half as much.

APS’s Renewable Energy Incentive Program offers as much as $1 per watt to those customers who choose to go solar for commercial or residential power. According to Eran Mahrer, director of Renewable Energy, the utility’s budget for 2012 includes authorization for $60 million-worth of new contracts for commercial customers (residential customers are afforded funds based on the size of their system; for commercial customers, incentives are per kilowatt-hour generated and tied to longerterm contracts). The program proved so popular last year that APS, with its allocated

funds for 2011 spent, launched the Rapid Reservation program with a reduced incentive for customers not willing to wait until the next year for the full program to recommence.

SRP, which, unlike APS, isn’t regulated by the federal government, is similarly committed to increasing solar activity. Its EarthWise Solar Energy Incentive Program is a tiered approach, explains Director of Customer Programs and Marketing Debbie Kimberly: $1.35 per watt for the fiscal year’s first 2 megawatts of installation capacity, dropping to $1.20 per watt for the next 1.5 megawatts and recently reduced to the third tier of $1 per watt for the remaining 1 megawatt of installation capacity for this fiscal year, which ends April 30. A non-tiered program set aside for homebuilders allows that industry a level of certainty when planning their projects.

Some in the industry are concerned about these exhausted funds, and worry that the utilities are offering incentive programs only because they’re required to. “It’s sexy to say you’re pro-solar in your marketing materials,” Paige says, “but these incentives are designed with shelf lives, and I think consumers should profit from them as much as they can before they go away.”

While SolarWing’s Sandy Werthman anticipated there would be fewer subsidies in 2012, she says, “But the big tax credits are protected through 2016, and we hope that by the time they’re gone, everyone will have gone solar.”

“During this transitional time,” SRP’s Singleton points out, “having the incentives from the state and federal governments allows the programs to prosper.” She predicts that renewable energy products and their installation will become affordable enough that incentives won’t be necessary. For now, there are enough programs in place to make renewable energy an attractive choice for consumers and builders alike.

American Solar americansolar.com Arizona Public Service aps.com Perfect Power Solar perfectpowernetwork.com Salt River Project srpnet.com SolarWing solarwing.com Valley Forward Association valleyforward.org

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Incentives by SRP, through its EarthWise commercial program, helped Queen Creek Olive Mill owner Perry Rea install a 50-kilowatt photovoltaic solar system at his business

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NonProfit

by Alison Stanton

Investing in Community

Celebrity Fight Night: Premier Fundraising Event Donates Millions Annually to Charities In 1994, long-time Arizona resident and businessman Jimmy Walker started Celebrity Fight Night in hopes of raising money for local charities through a celebrity-studded fundraising event. The nonprofit Celebrity Fight Night Foundation was founded around the event four years later.

“Since the first year, we have strived to put on the best entertainment experience for guests through a memorable evening with not only the best musical events possible but also the chance to raise as many dollars as possible for charities like the Muhammad Ali Parkinson Center at the Barrow Neurological Institute,” says Celebrity Fight Night Executive Director Sean Currie. An army of volunteers plus a large contracted labor force for sound, video, staging, décor and more help make each year’s event a smashing success.

Celebrity Fight Night brings in, on average, $5 million in donations, predominantly from corporate sponsors and table sales, the purchase of auction items and additional monetary donations. The vast majority of the money raised each year goes directly to charity, Currie says. A total of more than $70 million has been given to the Muhammad Ali Parkinson Center.

Celebrity Fight Night Foundation, Inc. celebrityfightnight.org

■■ EVENT: Celebrity Fight Night XVIII, 5 p.m., Sat., March 24, at JW Marriott Desert Ridge Resort & Spa. ■■ Phoenix Suns basketball stars Charles Barkley and Dan Majerle sparred in a boxing ring at the first Celebrity Fight Night.

■■ The event no longer features celebrity boxing but does include A-list

entertainers and musical guests. Among those confirmed to perform this year are Grammy Award-winner Lionel Richie, Miley Cyrus and Sinbad.

Grammy Award-winner Reba McEntire will return as emcee for the seventh consecutive year.

■■

■■ EVENT: Dine Out for Safety, April 25. Participating restaurants

statewide will donate up to 20 percent of their day’s proceeds to support the nonprofit’s services for survivors of sexual assault and children affected by family violence. Information on website dineoutforsafety.com.

One of the largest nonprofit agencies in the state to offer foster care, adoption, behavioral health, prevention programs and other child welfare services, Arizona’s Children Association has 529 full-time and 141 parttime employees, and about 400 volunteers.

Citizens of the newly formed State of Arizona came together in May 1912 to establish a charitable home that would care for dependent and neglected children in the state. Incorporated as Arizona Children’s Home Association in 1915, the agency changed to its current name in 1997.

■■

■■

Every year, Arizona’s Children Association serves more than 46,000 children and their families across every county in the state.

According to president and chief executive officer Michael W. Coughlin, the primary focus areas of the nonprofit organization are helping families in crisis, assisting survivors of sexual abuse and assault, and aiding children who are vulnerable. “We believe that every child deserves a permanent home that is safe and nurturing, and we strive toward that goal,” Coughlin says.

The annual budget for the 2010-2011 fiscal year was approximately $42 million. Coughlin says nearly 90 percent of the revenue came through contract with governmental and other agencies, while about 4 percent came from foundation and other grants. Less than 2 percent came from United Way and the remainder was through a combination of private contributions and miscellaneous services.

Nearly 90 percent of the money for that fiscal year was spent directly on programs and services, while approximately 8 percent went toward management and general needs and approximately 2 percent to marketing and fundraising.

“Our 100 year history tells the story of pioneering Arizonans whose commitment to children has endured for generations,” Coughlin says.

Arizona’s Children Association arizonaschildren.org

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

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Photos: C elebrity Fight Night Foundation (top; Muhammad Ali’s wife, Lonnie, with Halle Berry), Arizona’s Children Association (bottom)

Arizona’s Children Association: One Hundred Years of Helping

www.inbusinessmag.com

February 2012

O n t h e Ag e n D a

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

Arizona International Growth Group

Grow Your Business in Canada Mon., Feb. 6 — 7:30a – 9:00a Business opportunities between Arizona and Canada is the subject of Arizona International Growth Group’s presentation on Feb. 6 at ASU SkySong in Scottsdale. The new senior trade commissioner in Arizona for Canada, Bradwin Niblock, will discuss the state of Arizona-Canada trade and hot opportunities for Arizona businesses to grow globally. Niblock’s responsibilities include assisting U.S.-Arizona companies investing in Canada and paving the way for Canadian companies to come here to Arizona, but his main purpose is to educate Arizona businesses about opportunities for them in Canada, says Doug Bruhnke, president of AZIGG. In addition to exports and partnerships, Arizona businesses may find funding sources in Canada through investors or the Toronto Stock Exchange, where, Bruhnke notes, “some prominent businesses here have been funded.”

Complementing Mr. Niblock’s presentation on the business side, Sally Taylor, director of financial planning with KeatsConnelly, will address issues that may confront a businessperson as an individual, such as how to optimize one’s wealth when one has a business here and in Canada, and a home in both places. “If a CEO gets excited about investing in Canada or getting funded in Canada, all of those things are potential tax liabilities or significant life opportunities,” notes Bruhnke.

Arizona-based AZIGG is focused on educating local businesses about export incentives and international trade and sources, supporting global growth opportunities.

—RaeAnne Marsh Arizona International Growth Group growthnation.com/azigg Foreign Affairs and International Trade Canada tradecommissioner.gc.ca Photo: Xxxxxxxx

KeatsConnelly keatsconnelly.com

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American Society for Quality

2012 Lean and Six Sigma Conference Mon. – Tues., Feb. 27 – 28 Presenting a program built around the theme “Positive Outcomes: Putting Lean and Six Sigma to Work,” the American Society for Quality is holding a two-day conference at Pointe Hilton Tapatio Cliffs Resort in Phoenix. Workshop topics are the culture of improvement; global imperative; new and unique applications with Lean and Six Sigma; technical, applied and statistical tools; and cost, waste and defect reduction.

Keynote speakers are Karen Martin, principle consultant for Karen Martin and Associates, a leading practitioner in applying Lean thinking in office, service and knowledge work environments as well as an instructor for the University of California — San Diego’s Lean Enterprise program and an industry advisor for the University of San Diego’s Industrial and Systems Engineering program; Gregory North, vice president of Xerox and a Master Black Belt responsible for Xerox Corporate Lean Six Sigma program; Richard J. Schonberger, Ph.D., president of Schonberger and Associates and former industrial engineer and professor at the University of Washington — Seattle and University of Nebraska who has authored five books and numerous articles about manufacturing process and Lean Six Sigma; and Ari Weinzweig, CEO and co-founding partner of Zingerman’s in Ann Arbor, Mich.,

a company that was instrumental in the founding of Food Gatherers, a perishable food rescue program that annually delivers more than one million pounds of food to people in need.

ASQ is a global community of people dedicated to quality who share the ideas and tools that make our world work better. With millions of individual and organizational members of the community in 150 countries, ASQ has the reputation and reach to bring together the diverse quality champions who are transforming the world’s corporations, organizations and communities to meet tomorrow’s critical challenges. ASQ is headquartered in Milwaukee, Wis., with national service centers in China, India and Mexico.

— RaeAnne Marsh American Society for Quality asq.org

Notable Dates This Month Thurs., Feb. 2 Groundhog Day Sun., Feb. 12 Lincoln’s Birthday Tues., Feb. 14 Arizona Statehood Day

Valentine’s Day Mon., Feb. 20 Presidents’ Day Wed., Feb. 22 Washington’s Birthday Agenda events are submitted by the organizations and are subject to change. Please check with the organization to ensure accuracy. See more events online at www.inbusinessmag.com.

F e b r u a r y 2012

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O n t h e Ag e n d a

February 2012

AHWATUKEE FOOTHILLS CHAMBER OF COMMERCE

ASSOCIATION FOR CORPORATE GROWTH — ARIZONA

Chamber Day of Champions

February Breakfast

Awarding Ahwatukee Chamber Business of the Year, New Business of the Year, Volunteer of the Year and Educational Mentor of the Year.

Members: $30; non-members: $35 Arizona Grand Resort 8000 E. Arizona Grand Pkwy., Phoenix ahwatukeechamber.com

Featured speaker: Scarlett Spring, president of VisionGate.

Members and sponsors: $49; nonmembers: $69; at the door: add $10 Arizona Biltmore Resort & Spa 2400 E. Missouri Ave., Phoenix acg.org/arizona

Fri., Feb. 3 8:00a – 10:00a

AMERICAN SOCIETY FOR QUALITY 2012 Lean and Six Sigma Conference Mon. – Tues., Feb. 27 – 28

“Positive Outcomes: Putting Lean and Six Sigma to Work” (see article on page 35).

ASQ members: $1,195; non-members: $1,395 Pointe Hilton Tapatio Cliffs Resort 11111 N. 7th St., Phoenix bit.ly/ybS3LL

ARIZONA SMALL BUSINESS ASSOCIATION The Process of Business Development Thurs., Feb. 16 8:00a – noon

Identify specific business sectors linked with a detailed implementation plan; for start-up or existing business owners.

Members: $25; non-members: $40 ASBA’s Business Education Center 4600 E. Washington St., Phoenix asba.com/events

CollaborMix

Thurs., Feb. 23 5:30p – 8:30p

Come join Arizona Small Business Association with The State Bar of Arizona’s Young Lawyer Division, Sole Practitioner & Small Firm Section, and Mentor Committee; North Phoenix Bar Association; Scottsdale Bar Association; Arizona Jewish Lawyer’s Association; for a CollaborMix™ networking opportunity.

Free appetizers will be served.

Free Coach & Willie’s 412 S. 3rd St., Phoenix (602) 254-5272

ARIZONA TECHNOLOGY COUNCIL Lunch and Learn: New Grant Program for Exports Tues., Feb. 14 11:30a – 1:00p

Learn about resources and financial assistance available to Arizona companies looking to export and get helpful tips on international marketing and market selection; presented by Arizona Commerce Authority.

Members: free; non-members: $15 ASU SkySong 1475 N. Scottsdale Rd., Scottsdale aztechcouncil.org

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Tues., Feb. 14 7:00a – 9:00a

CENTRAL PHOENIX WOMEN Monthly Luncheon Mon., Feb. 6 11:30a – 1:00p

Russell A. Johnson, president & CEO of Merchant Information Systems, will present the leadership topic. $75 The Ritz-Carlton, Phoenix 2401 E. Camelback Rd., Phoenix centralphoenixwomen.org

CHANDLER CHAMBER OF COMMERCE 2012 Business & Tech Expo and Job Fair “How Technology Effects Our Everyday Lives” Thurs., Feb. 16 2:00p – 6:00p

The Business / Tech Expo will be held in conjunction with Chandler’s 3-Day science spectacular and Tech Crawl — where some of the biggest names in science are opening their doors and hosting facility tours.

Free Crowne Plaza San Marcos Golf Resort One San Marcos Place, Pavilion, Chandler Brad Ness, (480) 963-4571 ext. 205

ECONOMIC CLUB OF PHOENIX February 2012 Luncheon Thurs., Feb. 2 11:30a – 1:30p

Featured: Curtis R. Frasier, general counsel for Upstream Americas and head of Legal USA for Shell Oil Company.

Members: fee varies with membership; non-members: $75; advance registration is required.

Sheraton Phoenix Downtown 340 N. 3rd St., Phoenix econclubphx.org

GREATER PHOENIX CHAMBER OF COMMERCE Professional Women’s Roundtable Tues., Feb. 7 11:30a – 1:00p

“Creating a Positive Work Environment.”

Featured speaker: Darlene Newsom, CEO of UMOM New Day Centers and 2011

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

Athena Public Sector Award recipient.

Members: $15; non-members: $25; lunch included National Bank of Arizona Conference Center 6001 N. 24th St., Phoenix phoenixchamber.com

NATIONAL ASSOCIATION OF WOMEN BUSINESS OWNERS NAWBO University Wed., Feb. 8 9:30a – 11:00a

“Exit Strategies - Threats & Opportunities in the face of a Dramatic Economic Change” by Diane Thomas, president of Premier Sales, Inc. Free Phoenix Country Club 2901 N. 7th St., Phoenix nawbophx.org

Networking Luncheon Wed., Feb. 8 10:45a – 1:00p

“9 Paths to Business Success: Align Your Business with Your Entrepreneurial Personality Type and Turbocharge Your Success” by Marcia Bench and Steven Connor.

Members: $38; non-members: $48; late registration: add $15 Phoenix Country Club 2901 N. 7th St., Phoenix nawbophx.org

NORTH PHOENIX CHAMBER OF COMMERCE Industry Specific Business 2 Business Networking Group

Wednesdays throughout the month Noon – 1:00p

Free. Guests may visit one time; NPCC membership is required to join the group.

Catch 22 Sports Grill 18725 N. 32nd St., Phoenix Edward Gomillion, (602) 482-3344

ORGANIZATION OF WOMEN IN INTERNATIONAL TRADE Ocean Transportation Thurs., Feb. 16 9:00a – 10:30a

What happened last year and what is on the water for 2012.

Members: $25; non-members: $35 ASU SkySong 1475 N. Scottsdale Rd., Scottsdale owitphoenix.org

SCOTTSDALE AREA CHAMBER OF COMMERCE GET Professional Development Series Wed., Feb. 22 7:30a – 9:30a

Panel discussion with valley business leaders Sam Fox, CEO, Fox Restaurant

Concepts; Mary Martuscelli, Arizona regional president, JPMorgan Chase; Mike Nealy, COO, Phoenix Coyotes; Mark Bonsall , general manager, Salt River Project; Bill DeWalt, president and director, Musical Instrument Museum; Merl Washler, president and CEO, Valley of the Sun United Way; and Jim Ward, president and CEO, The Phoenix Symphony $20 ASU Skysong 1475 N. Scottsdale Rd., Scottsdale Courtney Gilbert, (480) 355-2704

SURPRISE REGIONAL CHAMBER OF COMMERCE Multi - Business Regional Job Fair Fri., Feb. 10 9:00a – 1:00p

Chamber and non-Chamber members wishing to participate: Contact the Surprise Regional Chamber of Commerce at jobfair@surpriseregionalchamber.com with the type and number of positions you are recruiting for.

Free to attend Communiversity @ Surprise 15950 N. Civic Center Plaza, Surprise surpriseregionalchamber.com

TEMPE CHAMBER OF COMMERCE “Charting Your Course: Your Compass to Personal and Professional Growth” Fri., Feb. 3 8:00a – 9:30a

“Overcoming Adversity.” Speaker: Erika Camacho, Ph.D. Members: $20; non-members: $30 Radisson Hotel Phoenix Airport 427 N. 44th St., Phoenix tempechamber.org

“Charting Your Course: Your Compass to Personal and Professional Growth” Fri., Feb. 10 8:00a – 9:30a

“The Evolution of You.” Speaker: Jamise Liddell, Ph.D., a career strategist for more than a decade and currently employed as Business Liaison and Workforce Development Specialist with Phoenix Workforce.

Members: $20; non-members: $30 Radisson Hotel Phoenix Airport 427 N. 44th St., Phoenix tempechamber.org

Hot Topics and Lunch: “Advances in Health and Wellness” Thurs., Feb. 16 11:30a – 1:00p

Focus: scientific and technical advances in the health and wellness fields, in support if the Arizona SciTech Festival.

Members: $25; non-members: $35 VinciTorio’s Restaurant 1835 E. Elliot Rd., Tempe tempechamber.org

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

Breakfast for Chamber Champions Tues., Feb. 21 7:00a – 9:00a

Awards to be presented include the Business Excellence Awards, Spirit of Tempe Award, Volunteer of the Year Award and the Tempe Leadership Outstanding Community Leadership Award.

Members: $50; non-members: $60 Fiesta Resort Conference Center 2100 S. Priest Dr., Tempe tempechamber.org

WEST VALLEY WOMEN “Meet the Mayors” Luncheon

Grow Your Business in Canada Mon., Feb. 6 7:30a – 9:00a

The new Senior Trade Commissioner in Arizona for Canada, Mr. Brad Niblock, will discuss the state of Arizona-Canada trade and HOT opportunities for Arizona businesses to grow globally.

Presented by Arizona International Growth Group (see story on page 35). $20 ASU SkySong 1475 N. Scottsdale Rd., Scottsdale growthnation.com/azigg

Grow Globally — Croatia/Funding/Exports

Tues., Feb. 7 11:30a – 1:00p

$35 SKYE 16844 Arrowhead Ftn Ctr Dr., Peoria westvalleywomen.org

WOMEN OF SCOTTSDALE “Woman of the Year” Luncheon Fri., Feb. 17 11:30a – 1:00p

BUSINESS EVENTS

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

Tues., Feb. 7 8:00a – 10:00a

A Growth Nation event featuring three global business presentations: Learn from Consul General Ilija Zelalic of Croatia how U.S. companies can take advantage of new opportunities, hear from experts about funding options for global expansion, and hear an overview of the new export initiative.

Free ASU SkySong 1475 N. Scottsdale Rd., Scottsdale growthnation.com

Business Professionals Breakfast Thurs., Feb. 9 8:30a – 10:00a

Open format for questions pertaining to your business or industry. Starbucks coffee and a continental breakfast will be served.

Free Scottsdale Microsoft Store 7014 E. Camelback Rd., Scottsdale scottsdaleevents@microsoft.com

All Business Societies Event Wed., Feb. 15 8:30a – 10:00a

Business owners and professionals: Get the latest updates to Facebook, LinkedIn and Twitter and find out how to manage them all at once.

Free Scottsdale Microsoft Store 7014 E. Camelback Rd., Scottsdale scottsdaleevents@microsoft.com

Women Entrepreneurs Small Business Boot Camp Sat., Feb. 18 7:00a – 4:00p

This eighth annual event will be hosted by local speaker, author and exhibit expert Susan Ratliff. $89 Chaparral Suites Resort 5001 N. Scottsdale Rd., Scottsdale womensbusinessbootcamp.com

Monthly Technology Showcase — Microsoft TPAM Event Sun., Feb. 19 Noon – 2:00p

Join presenter Santos Garcia for an introduction to Office 365.

Free Scottsdale Microsoft Store 7014 E. Camelback Rd., Scottsdale scottsdaleevents@microsoft.com

WordCamp Phoenix 2012 Fri. – Sun., Feb. 24 – 26

Conference focuses on everything WordPress. Everyone from casual users to core developers participate and share ideas. Classes on Friday; a full-day, multi-track conference on Saturday; and developers day on Sunday. $35 Downtown Chandler 2012.phoenix.wordcamp.org

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

Email the information to: events@inbusinessmag.com.

S AV I N G S A D V O C A C Y OPPORTUNITIES

SAVINGS

ADVOCACY O P P O R T U N I T I E S I N S U R A N C E

SUPPORTING ARIZONA SMALL BUSINESS

Arizona established; Arizona focused Largest trade association in the state Serving over 11,000 member businesses Reaching over 1/2 million Arizonans

now that’s amAZing™ !

Join ASBA! Visit asba.com or call 602.306.4000. inbusine ssmag.com

F e b r u a r y 2012

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Education

Series on Branding

For Brand Power, It’s Moments that Matter

By Kathy Heasley Here’s a humbling fact for all us marketing professionals: Personal involvement with your brand is far more powerful than simply watching a TV commercial, even an attention-getting, racy or annoying one. It’s time we all recognize that the mere presence of the brand isn’t enough anymore. It’s our interaction with it that makes a lasting impression, so it had better be good.

We have established that a brand is a combination of the promise and the experience.

Think of a brand in those simplified terms and you’ll see brand-building isn’t the job of just the marketing department, it’s the job of everyone in a company. While you may have known that, acting on that knowledge has always been difficult — until now.

Actions, the fourth stage of Heart & Mind Branding, is all about creating genuine and meaningful brand experiences that set you apart in a good way. And it is about specifically guiding everyone in the company, no matter their role, so that their actions build the brand.

Actions Go Well Beyond Customer Service If you are thinking this is about customer service, understand that customer service is just a part of the story. The actions of the rest of the company matter, too, perhaps more — particularly because people don’t weigh one experience against another in their dealings with a company. They don’t expect an experience with a customer service rep to be better than an experience with the investor relations department or with a sales associate.

People expect them all to be good, and one

slip-up in any area can negatively impact a person’s perception of the entire brand.

Over time, however, if you have done the work of creating great brand perceptions through your actions, people will cut you some slack should you mess up. Apple, for instance, is cut so much slack by its enthusiasts that it is almost ridiculous. I know this from experience. When things go wrong with our systems, I feel bad blaming Apple: “After all, they make such great products that work so well.” But when we were operating on a Windows platform and something would go wrong, it was easy to jump on the “Microsoft strikes again” bandwagon.

Why does Apple get the kid-glove treatment while Microsoft gets thrown under the bus? Both companies work hard to deliver quality products and both are fallible. But for decades, Apple has, through its actions, been connecting with our heart while Microsoft has been connecting with our minds. Apple’s actions — innovative product design, amazing stores with excited and energized employees, the cool factor — are all actions of the heart. Microsoft’s actions, by contrast, are about the bits and bytes. The company has yet to really connect with our emotions — which, of course, is how we make buying decisions.

Today, Heart Will Beat Smart Every Time So how does a company deliberately infuse heart into its actions? The answer is moments, those little instances that matter, that shape us and that are unforgettable. My favorite quote

Heart & Mind Branding — the Education Series The “Heart & Mind Branding” series takes business owners through the steps to consciously address improvements to their company’s success by implementing an integrated approach to branding. In Business Magazine presents the six-part series:

is from the Italian poet Cesare Pavese: “We do not remember days, we remember moments.”

He was right. Just as light is made up of particles, a brand experience is made up of moments. When you infuse moments into your actions, your brand grows brighter as it connects with the heart. The best news for business is that moments are actionable, assignable and measurable. They can and do happen anywhere, and everyone is capable of performing them. For instance, according to Cold Stone Creamery’s brand platform, the company was in the “making people happy” business. It was my client for many years, and I would often travel to visit the franchises — and invariably, when people saw my Cold Stone Creamery briefcase, they would say, “Hey, Cold Stone! I love Cold Stone!” So I’d say, “Thanks!” or “Cold Stone loves you, too!” and give the fan a free creation certificate. Imagine the unexpected surprise and inevitable conversations this small act would kindle.

Such moments to make a person feel special generally don’t cost much, they just take understanding and creativity to first discover the company’s genuine brand and how it is meaningful to the people the company serves, and then how to make it different from the competitors. This is the key to great brand moments that are unforgettable and get people talking. And it’s all that talk that creates buzz and buzz is what builds what we call breakthrough brands.

Imagine the power of having specific actions that you know will build your brand. Imagine your employees knowing their specific role, the impact they have on people, the higher purpose and how what they do connects with the mission. When people feel this connection — when they, themselves, live moments in the workplace — anything and everything is possible, including greatness.

Heasley & Partners, Inc. heasleyandpartners.com

Intro

Heart

Message

Image

Actions

Systems

Kathy Heasley is founder and principal of Heasley & Partners, Inc., a branding company that helps organizations grow and prosper. She’s the creator of

To reference published segments, please access the archived “Education” articles on the In Business Magazine website, www.inbusinessmag.com.

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Heart & Mind® Branding, a Rich Dad Advisor, author of multiple books and CDs, and international marketing and communications coach.

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Education

Series on Growing Revenues

Systems and Correct Measures of the Sales Process Use input and output info for successful sales

By Mike Toney We’ve previously touched on misconceptions and practices that corrupt the objectives and outcomes of the sales process.

This article will explore solutions to smallbusiness problems I call “lumpy revenue” — revenue that squirts in and shuts off unpredictably — and “constipated pipelines” — stacks of quotes and proposals that have promise but never seem to come in. Just as salespeople avoid being held accountable on any measure other than the normal quota performance, leadership often doesn’t understand measurements as well as it could to diagnose why the sales team is not performing.

Jeff, a local business owner in Phoenix whose business is both lumpy and constipated, had to release three long-term salespeople because no sales had closed in more than six months — yet there were hundreds of potential clients in his database and tens of millions of dollars in outstanding proposals to national and local businesses. He had been on top of the sales team, looking at year-to-date revenue booked and proposals and quotes generated, and holding weekly sales meetings to review when deals were projected to close and what each salesperson was working on, but the only deals that closed were the ones he got involved with.

This scenario is played out in many a small and medium-sized business, but there are many defects in this approach. In the first place, proposals are not an indicator or valid measure of business that will close (remember, sales is not a numbers game). And a proposal is a lagging indicator, as you can’t see what happened before this step of the process. Proposals are typically justified subjectively because a prospect said he wanted one (perhaps seeing it as the fastest way to get rid of the salesperson), but objective criteria, with the prospect earning the proposal by giving

something of equal value to you, like a decision, can be developed. Salespeople are inclined to do more of what they are measured on; it is easier and more fun to develop a proposal to solve a problem (even a fake one) than find another prospect and possibly suffer additional rejections!

Proposals and quotes are more expensive than you think, when you calculate time and resources chasing, developing and presenting them, not to mention the lost-opportunity cost of working on a deal that won’t close.

A better measurement of sales individuals and team effectiveness uses a modeling method called a “black box.” Sales is the black box, and we can’t suppose what happens inside the box but we can see what goes in and what comes out, and we use that information to measure effectiveness.

Consider sales input to be leads or closing opportunities. Knowing the type of input is important because there are “costs” associated with the quality and effectiveness of that lead — a lead generated by a marketing campaign might cost $150 whereas a cold call from the prospecting silo might cost $800. Determine the effectiveness of converting those leads by dividing output by input to measure the true cost of sales.

If you start to hold your team accountable to the systems approach and measures, you will find the team will start to identify system defects and think about improving the whole process, thus creating a consistent flow of revenue.

Conquest Training Systems, Inc. conquesttraining.com

Michael Toney, CEO of Conquest Training Systems, drew from 20-plus years of education and experience in sales IBM, Allied Signal and other Fortune 50 corporations — to develop the dynamic program of leadership and consultative and strategic sales techniques.

Sales Is Not a Bad Word!

Systems and Correct Measures of the Sales

Compelled to Sell: It’s a Process

Building Your Sales Team Correctly

Silos and Structures of Revenue and Sales

Strengthening the Bench

To reference published segments, please access the archived “Education” articles on the In Business Magazine website, www.inbusinessmag.com.

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Inputs:

■■ Type of leads — marketing, referrals and tradeshows ■■ Cost of each lead ­— hard cost divided by the number of leads ■■ Number of lead sources — using at least

five will minimize seasonality and lessen the likelihood of creating desperate salespeople (who tend to do more fake proposals than real ones)

Outputs:

■■ There are only three successful types of

outputs in a sales system: 1) deal closed, 2) deal lost and 3) referral to another client.

Defects —a spectrum of indeterminate outcomes and responses such as “no budget,” “not the decision maker” and “call me next year” — are indicators of process breakdown for troubleshooting what the salesperson did wrong.

Average deal size (absolute dollars). This is key for many reasons; most importantly, you can see money comfort-zones of your salespeople or their ability to sell higher and solve bigger problems.

Average discounted revenue and actual margin, as a percentage of total deal size.

This exposes the money concept problems of individual salespeople, competitive pressures and situations, and salespeople’s beliefs about the worth of the product or service to the client.

Frequency of closings, calculated per month, week and quarter. Frequency tells you which members of the team need support and identifies key bottlenecks. Additionally, it motivates individuals to focus on the most important part of sales closing quickly.

■■

■■

■■

■■

and sales training — including consulting with TRW,

Sales — the Education Series

Key Measurements

Other indicators derived from the above measurements: Cycle time — the average time to close a deal and the average time from input lead generated to deal won Throughput revenue, in dollars per day — total dollars closed divided by the number of selling days Closing ratio or percent for each input type — number of leads of a particular type (such as cold calls) divided into the number of deals that resulted from them

■■ ■■ ■■

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“We must view education as an investment, not an expense.”

SHELLEY ESQUE Vice President, Intel

The education we provide for Arizona’s children will determine the kind of future we all enjoy. Arizona employers need a highly skilled, talented workforce to diversify our economy, increase job opportunities and stay competitive.That requires a stronger education system that begins at birth and continues through career.

By investing time, talent and money to improve education today, we better position Arizona for long-term success. In the end, we all benefit. Education is everyone’s business. Make it your priority.

Visit ExpectMoreArizona.org.

by Mike Hunter

We Value What We Own

‘S’ Is for Speed, Style and Success Porsche had the business executive in mind when it built the Panamara. It is an asset no matter what one’s financial portfolio says about one.

However, it had better say success. Since its debut on the pavement in 2010, this sedan (if it can be called a sedan) was built for speed, performance and luxury.

The 2012 Panamara Turbo S is Porsche’s inevitable takeover of the original. A boost of 50 horsepower, netting a full 550 hp out of the 4.8-liter, twin turbo V-8, is all power. The Turbo S comes standard with the sport chrome feature, providing the option of “sport” or “sport plus” modes, which is an over-boost function that increases the torque from 553 lb-ft in “sport” to 590 lb-ft in “sport plus.” A furious 0-60 mph in 3.6 seconds (In Business Magazine clocked it at an overwhelming 3.4) will get you where you are going. Braking this beast is just as impressive, with its carbon-ceramic brakes that bite aggressively. The seven-speed, dual-clutch automatic transmission makes gear-shifting virtually unnoticeable. With a top speed of 190 mph (according to Porsche), this sedan rivals the Audi S8 and the Mercedes-Benz S65 AMG. If it is what’s inside that matters, then the German-design comfort and styling is where you’ll be while driving this two-ton sports car. With only two color schemes (black and cream or agate green and cream) this décor is luxurious. The center console splits the entire cabin and houses many options both front and back. In front, the audio and communications system comes standard with the Bose® Surround Sound system. The optional Burmester® High-End Surround Sound system is a first for the Berlin, Germany, custom audio manufacturer. Features include 16 loudspeakers, with a subwoofer that has an output of 1,000 watts. The Porsche Communication Management system is a seven-inch, high-resolution touchscreen that manages the Bluetooth® communications, radio, navigation and various performance displays, making a drive 2012 Panamara Turbo S between meetings a pleasure and a drive across City MPG . . . . . . . . . . . . . . . . . . . . . . . . . . 15 town a necessary ritual.

Hwy MPG. . . . . . . . . . . . . . . . . . . . . . . . . . 23 0-60 MPH. . . . . . . . . . . . . . . . . . . . . 3.6 sec Transmission. . . 7-speed, dual clutch MSRP. . . . . . . . . . . . . . . . . . . . . . . $173,200

Mobility Accessorized Quickly becoming our greatest asset in business, the mobile phone is all about staying connected. With that level of importance, we look at some accessories that will make your mobile device more convenient, useful and accessible.

Drive & Thrive Motorola Bluetooth Car Kit — Optimized for the car, the MOTOROKR T505 lets you take and make calls hands-free and listen to your tunes, with features like echo/noise reduction and audio caller ID. Portable and powerful, this is an innovation for the in-car experience. $75 motorola.com

Revenue Generating Intuit GoPayment — Accept credit card payments on the go with this sturdy swipe accessory that connects to your phone or tablet.

Encrypted and safe, the reputable Intuit company’s product is top of the line. Just a small fee per swipe. No monthly charges and the product comes with the program. gopayment.com

Dock & Talk The PhoneLab’s Dock-NTalk™ allows you to dock your cell phone and use your normal corded or cordless phones to make and receive your cell phone calls. Effectively turns your wireless service into “wired” service while docked. $200 phonelabs.com

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Photos: Porsche Cars North America, Inc. (left), Motorola, Intuit, PhoneLab (right, top to bottom)

ASSETS

“The easiest bank I’ve worked with” Harry Curtin, BestIT Alerus Bank & Trust Commercial Banking Customer

“I’ve been absolutely pleased with Alerus Bank & Trust and their knowledge, expertise and insight. They’ve helped us create a stronger foundation for today and going forward. Simply put, they’re stellar.”

Read the BestIT story—and others—at alerusbiz.com.

480.905.2430

| 17045

N Scottsdale Road

| Scottsdale,

Scottsdale

AZ 85255

Los Angeles

Orange County

San Francisco

Real Estate Finance Real Estate Development Office, Industrial and Retail Leasing Real Estate Brokerage Issues Construction Disputes Purchase and Sale Agreements Partnership Dispute Resolutions Workouts of Troubled Projects Equity Investments Tax Credits Fund Formation Syndicated Investments Portfolio and Syndicated Credit Facilities Project Finance In Arizona, please contact: Bank & Finance | Corporate | Insolvency & Financial Solutions Intellectual Property | Labor & Employment | Litigation Real Estate | Tax and Estate Planning

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Paul M. Weiser, Esq. Managing Partner 480.383.1800 | www.buchalter.com

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Power Lunch

by Mike Hunter

Meals that matter

Soak Up That History Metropolitan Phoenix is home to some famed dining spots that are popular at lunch for their history and their food.

Coronado Café Phoenix

Soups, salads, burgers and wraps are part of this historic Coronado District namesake eatery. Lunch is quaint and a great Downtown alternative.

2201 N. 7th Street, Phoenix 602-258-5149 • coronadocafe.com

Geordie’s Restaurant & Lounge Phoenix

Now open Wednesday – Saturday for lunch, Geordie’s is located in the historic Biltmore-area Wrigley Mansion. Views and an Arizona landmark make this a must for lunch.

2501 E. Telawa Trail, Phoenix 602-955-4079 • wrigleymansionclub.com

Advancing a mission statement that is ever evolving, Chelsea’s Kitchen creator Bob Lynn says it is all about helping great ingredients reach their full potential. Described as an Arcadia neighborhood roadhouse on the canal, this well-designed, chic restaurant is comfortable and offers American comfort food in a creative and healthy way.

Lunch at Chelsea’s Kitchen is a convenience and will impress. Valet parking makes this an easy place to pull up to for a planned lunch meeting or just popping in. The service is perfection — an overall orchestration of this establishment, busy or not.

Serving staff seem more concerned about patrons’ needs and time than they are running the day-to-day.

The menu is simple and intensely creative. For lunch, there are delicious starters like the Tuna Tartare & Guacamole made with a soy-lemon vinaigrette, or the Mac ’N Cheese made with brown rice pasta that can be accompanied by Applewood-smoked bacon. Special salads include the Brussels Sprout Salad with bacon, almonds and machego cheese. Other truly amazing lunch dishes include the Short Rib Taco platter (one of many platter options) and the Shangri-La Vegetarian Burger made of fresh grains, nuts and seeds.

The setting is welcoming and, while simple, feels like a redesigned ranch home among the orange orchards or olive groves. Tables in the main room line the outer windows, which are opened on a nice day to add to the enjoyment of the casual late lunch or afternoon meeting over a starter. Booths are comfortable and seat four well for an intimate meeting. On the patio, amid the fireplace, tree-covered vegetation and view of the building itself, diners can truly relax and enjoy a very neighborly meal.

Arizona-inspired ingredients make up a big part of this lunch menu. Located in Paradise Valley, this historic inn setting is luxury and classic Arizona for lunch.

5532 N. Palo Cristi Road, Phoenix 602-955-8614 • hermosainn.com

The Stockyards Phoenix

Arizona’s original steakhouse is an Arizona landmark.

Opened in 1947, this is a classic experience for lunch that includes Old West standards and modern light and healthy dishes.

5009 E. Washington Street, Phoenix 602-273-7378 • stockyardssteakhouse.com

Chelsea’s Kitchen 5040 N. 40th Street, Phoenix 602-957-2555 chelseaskitchenaz.com

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Traditional Eggs Benedict at Lon’s at the Hermosa

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Photos: LGO Hospitality/Greater Phoenix CVB (top), Lon’s at the Hermosa (bottom)

Chelsea’s Kitchen: Bringing Ingredients to their Full Potential

Lon’s at the Hermosa (pictured below) Paradise Valley

TEMPE CHAMBER

Happy New Year!

A Message From the Chairman of the Board Where has the time gone? The presents have been opened, the holiday decorations are back in storage and the Time’s Square New Year’s Eve Ball has dropped ushering in a new year. I hope everyone finished 2011 strong and is well-positioned, both personally and professionally, for a very successful 2012.

The month of January gets its name from the Roman mythological god Janus. Janus is the god of gates and doors, beginnings and endings. He is very aptly depicted with two faces, one which looks backward into the old year and the other which looks forward into the new. The practice of making resolutions to start the year began in Rome during the time of Julius Caesar. Originally, resolutions focused on common courtesy and being kind to others.

In many cultures New Year’s resolutions are viewed as a way of wiping the old, cluttered slate clean and positioning one’s self for a year of happiness, good health and prosperity.

Continued on T.C.A. 5

Advantage Feb. – May 2O12 • tempechamber.org

Chamber Policies for a Strong Economy

As the Arizona Legislature enters its 2012 session, the Tempe Chamber will work to develop an economy where your business will thrive. Our 2012 Arizona Policy Agenda creates a roadmap for the best ways of partnering with our elected officials and other organizations to create a healthy environment in which to do business.

ECONOMIC DEVELOPMENT The long-term viability of the state is dependent upon the successful development of new and existing business and industry.

Government should establish policies that provide incentives to foster a competitive business environment to increase growth and development opportunities.

Economic Development Tools The Tempe Chamber supports allowing local governments to use economic development tools to attract new business and implement redevelopment programs, including tax increment financing, establishment of special districts to coordinate and implement economic redevelopment plans, creation of public/private partnerships, and targeted local incentives.

Educational Economic Development Our educational institutions produce graduates for local businesses and bring a significant return to the Tempe and Arizona economy. The Chamber recommends lawmakers

consider the economic impact of funding for our educational institutions when drafting legislation.

Liability Insurance Frivolous liability claims against business insurance drive up the cost of operating a business. The Tempe Chamber supports legislation that reduces frivolous lawsuits, requires claimants to prove that businesses were negligent prior to claim settlement, and reduces the number of frivolous malpractice suits brought against licensed professionals.

Tourism Funding Tourism is integral to Arizona’s economy.

The Chamber supports continued funding for Arizona tourism and exploration of alternative funding methods.

Workforce Development The Tempe Chamber supports full funding for job training and workforce development, with priority funding given to training and development of the current Arizona workforce.

EDUCATION/WORKFORCE PREPAREDNESS

Dave Long, Board Chair, Tempe Chamber of Commerce

Te m p e C h a m b e r. o r g

A quality education system is an essential part of a productive workforce. Working relationships between students, educators, administrators, government officials and businesses will build the most effective K-20 educational system to provide the business community with a workforce that is prepared to meet the challenges and demands that face business.

High Technology The Chamber urges a greater emphasis on science, technology, mathematics and engineering in the Arizona public education system to enable greater competition in the global economy.

Higher Education Funding The Tempe Chamber supports an

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equitable adjusted higher education formula funding based on student enrollment, retention and graduation rates.

K-12 Funding The Tempe Chamber supports development of a simpler, transparent educational funding formula that maximizes the use of the taxpayers’ money.

Management Services The Tempe Chamber supports incentives for joint purchasing among school districts that result in cost savings.

State Universities The Chamber supports the current structure of the Arizona Board of Regents and opposes efforts to break Arizona State University’s Polytechnic campus off as a separate university.

Workforce Preparedness The Chamber supports a greater emphasis on preparation for post-graduation employment.

EMPLOYEE RELATIONS An educated, well trained work force is essential to maintain a vibrant economy. A supportive regulatory environment that provides the flexibility to explore and formulate ways for our workplace policies to create an “economy of opportunity” can address today’s challenges to both the employee and the employer and keep our state competitive into the future. State employment statutes and the state regulatory environment should foster, rather than mandate, such things as access to affordable workers’ compensation and unemployment compensation, while maintaining entrepreneurial innovation.

Immigration The Chamber believes that immigration issues should be resolved at the federal level. The Chamber supports programs that provide for an adequate legal workforce while maintaining the integrity of our national borders, provide protection of the rights and benefits of legal residents, and protect businesses that operate in an open, above-board manner.

Right-to-work The Tempe Chamber believes that it is critical that Arizona remains committed to being a “Right to Work” state in order to give us a competitive advantage in attracting new businesses.

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Unemployment Compensation The Tempe Chamber believes that current Arizona unemployment compensation laws adequately address the needs of the unemployed by providing temporary income replacement for workers who involuntarily become unemployed and are actively seeking full-time re-employment.

Unemployment compensation should encourage individuals to seek employment.

conservation and ensure coordination between active management areas.

Western Climate Initiative The Chamber is opposed to Arizona’s participation in the Western Climate Initiative.

Any greenhouse gas emission regulations should be addressed at the federal level.

GOVERNMENT ENVIRONMENT The Tempe Chamber of Commerce is committed to economic development and environmental protection. Economic development goals should not be achieved at the cost of our environment. Environmental preservation adds to the quality of life in the region and thus positively benefits the economy.

Business and environmental organizations share a common vision of public policies that protect the environment as well as the economy.

Appropriate environmental policies can enhance the diversification of Arizona’s economy and expand the state’s growing biotech sector.

Working cooperatively with all stakeholders in the evolution of environmental protection will not only share the responsibilities, but also benefit the environment.

Air Quality The Tempe Chamber believes that any legislative measures to improve our air quality should provide businesses and citizens with incentives and a variety of practical options.

Cost-Based Energy The Chamber supports low-cost power and recognizes the need for additional costbased energy sources. Any energy efficiency legislation should provide incentives and practical options for businesses.

Environmental Permit Process The Tempe Chamber supports streamlining the environmental permitting process with an emphasis on faster application review.

State Regulatory System The Tempe Chamber supports a state regulatory system that encourages voluntary compliance and incentives as an alternative to mandates whenever possible.

Water Conservation The Chamber urges the Department of Water Resources to promote statewide water

The Tempe Chamber of Commerce believes that governments at all levels should strive to streamline processes and provide maximum service at minimal cost. The Chamber encourages State government to eliminate debt financing, increase oversight of agency budgets and to make the public reporting of state spending transparent.

Ballot Referendums and Initiatives The Tempe Chamber supports efforts to reform ballot referendums and the initiative process, including permitting legislative changes to initiatives with voter ratification and requiring legislative council to review and title initiatives prior to signature collection.

Formula Review The Chamber supports a legislative review and modernization of budgetary formulas, including those for AHCCCS and education.

Four-Year Senate Terms The Tempe Chamber supports the concept of four-year terms for Arizona senators in order to provide continuity in the state budget and other processes.

Primary Election Date Changes The Chamber supports moving Arizona’s primary election to a minimum of ninety days prior to the General Election.

Privatization of Services The Tempe Chamber encourages subcontracting appropriate public services to private industry in an effort to increase service, reduce expenditures and avoid unfair competition with the private sector.

Sunset Legislation The Tempe Chamber advocates enforcement of an automatic termination mechanism (sunset) on new and existing programs to provide ongoing examination and evaluation of state agencies, policies and programs.

Unfunded Mandates The Chamber recommends that a fiscal analysis accompany mandated legislation that affects local and regional governments, and that provisions for funding be included as part of such legislation.

HEALTH INSURANCE

businesses and individuals resulting in increased fees.

Contractor Tax Collection The Tempe Chamber supports the current means of contractor’s tax collections at the construction location, which allows growth to pay for itself.

The passage of a federal health care bill has left much uncertainty in the business community; the future cost of care and its effect on operational budgets are dependent on as-yet unwritten rules. While we will monitor federal developments in order to educate businesses, there is aspects of health insurance costs and availability that are within the purview of the State.

Designated Funds The legislature should honor the integrity of and restore revenues to special funds that were used over previous budget cycles to mask the shortfall in state revenue. If taxsupported funds are found not used for the intended purpose during frequent review, the tax and fund should be abolished.

Health Care Coverage Mandates The Tempe Chamber opposes legislation that would require mandatory employerprovided health insurance benefits.

Internet Taxes The Tempe Chamber supports the exploration of a transaction privilege/sales tax on out-of-state Internet sales.

Health Care Exchange The Chamber supports efforts to establish a state market based health care exchange as required in the Patient Protection and Affordable Care Act.

State Equalization Tax The Tempe Chamber strongly urges the Legislature to permanently eliminate the state equalization property tax.

Liability Reform The Chamber urges significant tort reform measures to reduce the costs of health care and health insurance and encourage retention of a qualified health care workforce.

TAXES The Tempe Chamber advocates for fair and cost-effective tax policies that are a part of a comprehensive tax plan to reduce the cost of doing business, thereby making the region more competitive for private investment and spurring economic growth.

Business Personal Property Tax The Tempe Chamber strongly encourages increasing the business personal property tax threshold.

Business Tax Credits & Exemptions The Tempe Chamber opposes legislation that would rescind credits and exemptions that currently support Arizona businesses.

Cost Shifts The Tempe Chamber opposes shifts in State budgeting to local governments,

Te m p e C h a m b e r. o r g

State Shared Revenues The Tempe Chamber strongly opposes any effort to reduce the amount of state shared revenues to Arizona municipalities.

Transaction Privilege Tax Expansion The Tempe Chamber opposes legislation that would expand the transaction privilege tax base to include activities currently not taxable in Arizona or a majority of the 50 states, including taxes on services.

Federal Funding The Tempe Chamber strongly encourages state government to work with the Arizona Congressional delegation to ensure that Arizona receives its fair share of federal transportation funding.

The Chamber is opposed to shifting or repealing funds currently designated for the development and maintenance of the East Valley regional transportation system.

Transportation project construction should be based on congestion relief, air quality compliance and should be multi-modal.

High Capacity Transit The Tempe Chamber of Commerce supports establishing a new, permanent, dedicated, state-wide funding source for public transportation.

The Tempe Chamber of Commerce supports the efforts to identify, fund and implement a commuter rail system as an effective solution to an overburdened road infrastructure.

Sky Harbor Governance The Tempe Chamber opposes legislation which would create additional state oversight of Sky Harbor International Airport. The Chamber supports a centrally managed regional airport system that leverages the opportunities of metro airports capable of commercial service.

Public/Private Partnerships The Tempe Chamber supports using public/ private partnerships in building a statewide transportation system that ensures the growing needs of the state’s infrastructure are maintained over time.

TRANSPORTATION The Tempe Chamber of Commerce is a leading advocate for multi-modal transportation system. The efficient transportation of goods and people is critical to growing our economy. A balanced transportation system reduces pollution, relieves traffic congestion and increases the quality of life, availability, and efficiency of the area workforce.

Equitable Representation The Tempe Chamber supports true equity in the distribution of resources and metro area representation on the State Transportation Board.

The Tempe Chamber represents more than 72,000 people employed by nearly 1,000 businesses. The Chamber works to create a strong local economy, represent business interest to government, promote the community, provide networking opportunities, and advocate for business.

For more information, contact Mary Ann Miller, President/CEO, at maryann@tempechamber.org or (480) 736-4280.

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As members of the Tempe Chamber of Commerce, you and your employees have access to exclusive discounts and programs. Through a variety of partnerships and affiliations, we are able to provide our members with discounts on legal services, identity theft protection, e-mail marketing and more, as well as provide access to educational programs and services.

Visit www.tempechamber.org to take advantage of these great benefits.

Stan and Jan Nicpon to be Honored with Spirit of Tempe Award Stan and Jan Nicpon will be presented with the Tempe Chamber of Commerce’s Spirit of Tempe Award at the 15th Annual Breakfast for Chamber Champions on Feb. 21 at the Fiesta Resort Conference Center. The award recognizes lifetime achievements of service, dedication and contribution to the community and honors hard work and strong commitment to improving the quality of life in Tempe.

The married couple has been active in Tempe for decades, working to better the community and the lives of its residents. A restaurant owner and businessman for more than 20 years, Stan has been a champion for locally owned businesses and their impact on the success of downtown Tempe.

Jan is deeply engaged with a number of local causes and organizations, including Friends of the Tempe Public Library and Tempe Connections, and was a driving force in the development and implementation of many of the city’s homelessness assistance programs.

“Stan and Jan Nicpon have contributed enormously to our community. Always active in local issues, charities and causes, they have made a powerful impact on Tempe, and we are proud to honor them,” said Mary Ann Miller, president and CEO of the Tempe Chamber of Commerce.

To attend the Breakfast for Chamber Champions where the Nicpons will be recognized, please call (480) 967-7891 or visit www.tempechamber.org.

Connect with the Tempe Chamber!

Join us on Facebook

facebook.com/people/tempe-chamber/1762132500

Follow us on Twitter

twitter.com/tempechamber

Check out our blog

http://tempeaz.usachamber.com/blog/

Join the Tempe Chamber

http://www.linkedin.com/groups?home=&gid=1621547

Read our monthly e-newsletter:

http://www.tempechamber.org/advocateonline

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Continued FROM T.C.A. 1

Have you made your resolutions for 2012? Research shows that almost half of American adults make at least one resolution each year, but sadly only about 10% actually achieve what they set out to do.

Common resolution themes include: • Health – losing weight, eating better, exercising more, getting more rest; • Financial – spending money more wisely, paying off debts, getting a better job; and • Self Improvement – becoming better organized, watching less television, volunteering more.

In setting goals for the year, we should emulate Janus and look back at the previous year and ask some pertinent questions. What did we do well? What were the reasons behind our successes? Are there areas upon which I can improve? Based upon this review, we can set some goals for the upcoming year. Experts recommend small goals that can be tackled in steps versus huge “shoot for the sky” goals. First, we should identify the goal we would like to achieve. Next, we need to formulate a step-by-step plan to accomplish our objective. Third, we should write down our goal and the steps we plan to take. For many, keeping a journal helps accomplish this objective. Fourth, realize that your plan should be a process. While we may be able to set our resolution in one day, it may

take hundreds of small steps throughout the year to actually achieve it.

Next, it is important to remain flexible. It is impossible for us to predict the “curveballs” life will throw at us, so we may need to adjust our goals accordingly. Finally, we should recognize and celebrate the small successes we make throughout the year.

On that theme, I have identified a couple of simple goals for myself for the new year. First, I want to be a better listener – both in the office and at home. Sometimes, I may find myself reaching a conclusion to a particular issue prior to hearing all of the details. Other times, I may not give my full attention to the speaker as I find myself distracted by other issues. Second, I want to help the Chamber enhance its financial stability.

This includes helping grow membership through highlighting the benefits of Chamber membership, as well as helping identify and hold successful events. On a more personal level, I need to eat a little bit better… specifically, lay off the salty snacks and sweets. I would love to end the year 10 pounds lighter than I started it. Now I just need to put together a plan to accomplish these goals!

Happy New Year and best of luck in achieving all of your goals during 2012!

Until next time…

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

Campus • Evening • Online

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

Te m p e C h a m b e r. o r g

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2012 Business Excellence Awards Finalists Announced The Tempe Chamber is pleased to announce the finalists for the 2012 Business Excellence Awards. These awards promote the advancement of responsible business leadership in the community and publicly recognize local businesses demonstrating a passion for excellence.

Through the awards, the Tempe Chamber identifies companies whose practices in business growth, employee development,

community involvement and customer service exemplify excellence.

This year’s seven finalists admirably embody those characteristics and are being recognized for that distinction.

The recipients of the 2012 Business Excellence Awards will be announced and honored at the Breakfast for Chamber Champions on Feb. 21 at the Fiesta Resort Conference Center. Please call (480) 967-7891 or visit www.tempechamber.org for details or to register.

The 2012 finalists are: ASDD / TCH Assured Security Document Destruction (ASDD), a division of The Centers for Habilitation (TCH), offers support to individuals with disabilities, including behavioral or intellectual problems.

TCH has been offering services, including in-home service, day treatment and employment services, to their customers since 1967. Employing disabled individuals, ASDD provides certified shredding and document destruction that has grown from 5,000 pounds in its first month of operation to 750,000 pounds monthly today. www.tch-az.com/ Assured Security Document Destruction (ASDD), a division of The Centers for Habilitation (TCH)

Four Peaks Brewing Company Four Peaks’ mission is to provide consistent high-quality beer, food and service in a community based atmosphere.

Founded in 1996, this regional brewery and brewpub is among the largest and most recognized and respected breweries in the state of Arizona. It brews over 72,000 kegs each year and owns and operates two restaurants in the Valley. In 2012, it will open a new brewery and tasting room in Tempe. www.fourpeaks.com

Four Peaks Brewing Company

Michael Pollack Real Estate Investments In 1973, Michael Pollack started off in real estate in his teens by building single family homes. Today, the company has 100 employees and has become one of Arizona’s largest privately held shopping center owners and operators. In addition, it owns a movie theater which often sees its guest count reach upwards of 4,000 on the weekends. www.pollackinvestments.com

Michael Pollack Real Estate Investments

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Friendship Village

AlphaGraphics on Elliot & Kyrene

Friendship Village

AlphaGraphics at Kyrene and Elliot

Friendship Village is a life care and retirement community located in Tempe.

Since 1980, it has created a safe and friendly environment for seniors and has provided them with the services and amenities that they need for their overall well-being and happiness in the community. Their mission is to become a leader in senior lifestyle, and they continue to refine what their concept of “life care and worry-free retirement living” is. www.friendshipvillageaz.com

Since its founding in 1997, this AlphaGraphics location has grown to become a successful communications and printing firm which, through its services, customer support and dedication, is constantly adapting to the changing needs of its customers. The business has seen annual growth over the past 14 years and is expanding its services to include business solutions and marketing communications. www.us436.alphagraphics.com

Children’s Dental Village

Santa Barbara Catering Company

Children’s Dental Village

Santa Barbara Catering Company

Children’s Dental Village has been providing dental and orthodontic services for children and teens since 1973. Starting out with only two dental chairs, one office manager and one dental assistant when it was first established

by Dr. Alan Longfellow, this business has grown more than quadruple its original office size and practice in order to more effectively serve the needs of a rising number of patients. www.ChildrensDentalVillage.net

The full-service catering company offers services for weddings, gala dinners and other large or small events. In 1992, Pat Christofolo began the business with only three employees. Success came very quickly, and now the business has 150 employees along with multiple venues and family restaurants which promote local farmers and seasonally inspired menus. www.santabarbaracatering.com

Last year’s recipients of the award were Honey Moon Sweets and The Morrison Vein Institute.

Te m p e C h a m b e r. o r g

T empe C h a m b e r A d va nta g e

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Board of Directors Chairman of the Board: Dave Long Chair-Elect: Jack Pisano Mary Ann Miller, President and CEO, maryann@tempechamber.org Sean Donovan, Vice President, Media and Program Development, sean@tempechamber.org Liz Garlieb, Membership Development, liz@tempechamber.org

Treasurer: Phil Howard Vice-Chairs: Margaret Hunnicutt, Kristine Kassel, Jeff Mirasola Immediate Past Chair: Steve Bauer

Shari Hodziewich, Membership Development and Retention, shari@tempechamber.org

Directors: Todd Christy, Steve Eberhart, Margaret Hunnicutt, Kristine Kassel, Sharon Kausal, Mark Masten, Jeff Mirasola, R.J. Orr, Laura Robertson, Tim Ronan, Jackie Thompson, Mark Thompson, Stephanie Whyte

Renee Lopata, CAE, Senior Vice President, renee@tempechamber.org

Ex-Officios: Chad Ackerley, Jayson Matthews, Charlie Meyer, Stephanie Nowack, Virgil Renzulli

Sachiyo Ragsdale, Communications Director, sachiyo@tempechamber.org

Committee Chairs: Kjell Andreassen, Steve Bauer, Neil Chitel, Mark Duplissis, Linda Kalaf, Sharon Kausal, Vicki Kringen, Kelly Lorenzen, Truman D. Plainer

Heidi Santos, Bookkeeper, heidi@tempechamber.org Magdalena Warecka, Director of Operations, magdalena@tempechamber.org

Tempe Chamber of Commerce 909 E. Apache Blvd. Tempe, AZ 85281 • (480) 967-7891

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T empe C h a m b e r A d v a nta g e

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Arizona Technology Report Feb. – May 2O12 aztechcouncil.org

Arizona Technology Council: The Voice of the Technology Industry

In This Issue Arizona SciTech Festival ... Pg. 2 Governor's Celebration ... Pg. 4 10th Anniversary ... Pg. 6

Who We Are The Arizona Technology Council is Arizona’s premier trade association for science and technology companies.

Phoenix Office

One Renaissance Square 2 N. Central Ave., Suite 750 Phoenix, Arizona 85004 Phone: 602-343-8324 Fax: 602-343-8330 info@aztechcouncil.org

Tucson Office

The University of Arizona Science and Technology Park 9040 S. Rita Road, Suite 1150 (near I-10 and Rita Road) Tucson, Arizona 85747 Phone: 520-829-3440 Fax: 520-829-3441 tucson@aztechcouncil.org

President’s Message As head of the largest association that supports Arizona’s technology industry, I was constantly hearing about the difficulty of finding talent for the state’s technology firms. Apparently, we’re not alone.

We recently announced the results of the first study to document the hiring practices and recruiting experiences among the companies. The research conducted over 15 months by the L. William Seidman Research Institute at the W. P. Carey School of Business at Arizona State University found some employers reported the problem wasn’t job candidates not wanting to move to Arizona. In some cases, they didn’t want to move – period.

Further, 67 percent of the Arizona companies found it difficult to attract qualified engineers, 76 percent were challenged to get the computer scientists they need and 98 percent said they had a hard time finding scientists Steven G. Zylstra, who could do the job—not so President and CEO, Arizona Technology Council good if we need talent to drive our futures.

So what do we do? A key recommendation of the study is companies should be more willing to start growing their own talent to get the required experience. Related to that is hiring recent graduates with hands-on experience gained through internships and capstone-like courses.

To help, the report suggested companies connect with Arizona’s universities, colleges and training programs. Besides providing employers with the

students possessing the needed skills, the institutions are willing to collaborate with companies to provide the specific training needed to fill open positions.

For example, Maricopa Community Colleges already are moving in that direction. The district is designing an apprenticeship program that will give both the hands-on experience as well as credentials that demonstrate a certain level of technical competency. Even now, employers can reach out to the Workforce System that is part of the Arizona Commerce Authority to help find qualified talent.

The state’s prosperity depends on cultivating a technology network that produces quality homegrown talent and keeps that talent in state.

Of total recent hires, 32.3 percent of computer scientists, 43.7 percent of engineers and 24.7 percent of scientists earned a degree from an Arizona institution. Those numbers have the chance to shift higher, as the study revealed companies starting to focus on “new blood”—recent college graduates that the firms hire, train, and promote from within. This is definitely a worthwhile tool for recruitment.

I view our study as nothing to sit on a shelf, but instead a call to action. With the goal of solidifying Arizona’s position as a tech leader, putting a focus on producing and retaining science and engineering talent will attract increasing numbers of businesses to our state that will employ innovative workers and ultimately breed new technological advances.

In Business Magazine readers are invited to view the study’s results by visiting our web site, www.aztechcouncil.org. The challenge is big, but as a community we can help ensure a better future for generations to come.

Management and Staff Steven G. Zylstra

Jamy Battle

Ron Schott

Don Ruedy

President and CEO

Director, Finance and Administration

Executive Emeritus

Executive Emeritus, Tucson Office

Deborah Zack

Leigh Goldstein

Jim Harris

Phillip Huebner

Director, Membership Services

Managing Director, Programs and Events

Director, Tucson Office

Director, Arizona Science and Engineering Fair

Merry Lake Merrell

Don Rodriguez

Justin Williams

Director, Marketing and Communication

Editor, TechConnect

Executive Emeritus, Tucson Office

Jeremy Babendure, Ph.D. Director, Arizona SciTech Festival

aztechcouncil.org

Arizona Technology Report

1

Next 100 Years of Innovation Arizona SciTech Festival celebrates our journey into the future

W

hat do baseballs, robots, telescopes and chocolate have in common? They are part of a roster of what the Arizona SciTech Festival will bring people of all ages for family fun using science, technology and innovation.

Arizona’s first annual science and technology festival, which runs through March 14, will showcase more than 300 colorful events, demonstrations, tours, games, activities and workshops across the state. Together they will feature the career opportunities of the future and the latest technologies and innovations that can be found within our state’s borders.

Spearheaded by the Arizona Technology Council Foundation in partnership with Arizona State University and Arizona Science Center, the Festival is a collaborative effort involving more than 250 public and private organizations from industry, business, education, arts and culture, philanthropy and the community working together. The six-week event will highlight the scientific and technological innovations occurring throughout Arizona, build excitement among students for science and technology careers, and attract industry and opportunity to Arizona.

With the theme The Next 100 Years, the first Arizona SciTech Festival launches at the same time the state begins its centennial celebration. Signature events will highlight the innovative character of each area of interest (e.g., aerospace, technology, bioscience) through exhibitions and shows. Additionally,

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Arizona Technology Report

the Festival will include up to 20 science hubs providing workshop and discussion opportunities in neighborhood locations as well as in-field experiences at science and technology facilities throughout the state. To complement community learning opportunities, the Festival also will include in-school projects, workshops and competitions.

There is something for everyone—whether it’s the mad science of baseball at Scottsdale’s Spring Training Festival, gazing at far-off stars through some of the world’s most powerful telescopes at Mesa Community College’s Astronomy Night, touring some of Arizona’s premiere technology companies at the Chandler Tech Crawl, meeting Galileo at the Arizona Renaissance Festival, seeing science come to life in Downtown Tucson, or witnessing first-hand the illuminated works of art brought together by mixing art and science during Phoenix’s First Friday Art and Science Fusions.

For Our Futures As Arizona’s science and technology fields continue to evolve, the state is positioned to receive greater recognition for its leadership, achievement

and

Statewide Events innovation in STEM (science, technology, engineering and math) fields. According to a 2006 Morrison Institute study, 90 percent of Arizonans believe it is important for the state to seize national and international leadership in these fields, with nearly two-thirds of residents looking for ways to engage the scientific community.

The Arizona SciTech Festival will do just that. Science festivals—large celebrations of science and technology, such as the highly successful event in San Diego—establish science as part of local culture and connect science professionals with the public. The grassroots initiative here is aimed at exciting and informing Arizonans of all ages about how science, technology and innovation will drive the state well into the next century through a series of hands-on activities and workshops, conversations and debates, stunning exhibitions, concerts, guided walks and tours.

The Arizona SciTech Festival will help the state position itself as an emerging world leader in science, technology and innovation as it showcases collaboration between scientific, education and business communities, builds excitement for STEM education, and inspires a generation of Arizonans to become leaders and innovators in science and technology.

aztechcouncil.org

Here are examples of the events planned for the Arizona SciTech Festival.

Downtown Phoenix – Innovations in Bioscience and Official SciTech Festival Kickoff, Feb. 4 Glendale – The Science of Chocolate at the Glendale Chocolate Affaire, Feb. 3-5 Downtown Mesa – Mesa Takes Flight Festival, Feb. 10-12 Apache Junction – Renaissance Science at the Arizona Renaissance Festival, Feb. 14 & 16, March 10-11 Chandler – Chandler’s Science Spectacular, Feb. 16-18 Downtown Tempe – Geeks Night Out, the Science of Fun, Feb. 16 Arizona State University East, Mesa – College of Technology & Innovation’s Maker Faire, Feb. 18 Peoria – 50th anniversary of the first American to orbit the Earth at the Challenge Space Center, Feb. 19

Tucson – 2nd Saturdays Downtown presents Science in the City, Feb. 18 Arizona State University West, Phoenix – ExSTATIC, Feb. 25 Downtown Scottsdale – The Mad Science of Baseball at the Spring Training Festival, Feb. 25-26 North Scottsdale – Science is Everywhere in the Airpark, March 1 Show Low – Northeast Regional Science Fair and Science Carnival, March 2-3 Arizona State University, Tempe – Night of the Open Door, March 3 West Phoenix – Carl Hayden Science and Technology Festival, March 3 Casa Grande – Casa Grande Union High School District SciTech Festival, March 5 The University of Arizona, Tucson – Innovation Day, March 6 Goodyear – Tres Rios Earth and Nature Festival, March 10-11

To Learn More For more information on Arizona SciTech Festival events happening in your backyard, go to azscitechfest.org or connect with the festival on Facebook at facebook.com/ arizonascitech and Twitter at twitter.com/arizonascitech.

Arizona Technology Report

3

Chuck Vermillion, Arizona Technology Council Board chairman and CEO/ founder of OneNeck IT Services

Plenty of Pride Winners honored at annual Governor’s Celebration of Innovation

The prizes generating he most buzz by the audience were in the company award categories. The winners this year are:

Pioneering Award: Phoenix Analysis Design Technologies (PADT), Inc., Tempe The diversity and flexibility of the three business groups at PADT (Simulation, Product Development, and Rapid Prototyping) help deal with market fluctuations while presenting its customers with a single, “one-stop” solution for their engineering needs.

Green Innovator of the Year: Yulex Corporation, Chandler This renewable and sustainable enterprise has developed a portfolio of biopolymers derived from the U.S.-grown guayule plant. These technological innovations are designed to replace traditional tropical or petroleum-based rubber for consumer, industrial and medical markets and residual agricultural materials are utilized as a feedstock for bioenergy.

Innovator of the Year – Small Company: OneNeck IT Services, Scottsdale The award is recognition of its Hosted Desktop Solution, a virtual desktop infrastructure (VDI) that separates a desktop PC environment from a physical machine using a distributed application structure model of computing. VDI moves the desktop workload away from the desktop PC and places it in the cloud infrastructure, creating a hosted virtual desktop.

Innovator of the Year – Large Company: Honeywell Aerospace, Phoenix As one of Honeywell International’s largest business groups, it was responsible for the development and certification of a low-emissions turbofan jet engine. The engine is used to power a business/regional size aircraft that enables a trans-Atlantic flight of more than 3000 nautical miles. The low-emission engine was certified in 2010, achieved a 27 percent reduction in NOx emissions with significant reductions in other pollutants.

Innovator of the Year – Academia: The University of Arizona’s Lunar and Planetary Laboratory (LPL).

The lab won hard earned approval from NASA for the OSIRISREx mission, an $800 million first-of-a-kind project designed to go to an asteroid, collect a substantial amount of materials from both bulk and fine-grained surface form, and return them to Earth. The total mission will span 14 years.

Chairman Award Winner: Justin Williams, founder at StartupTucson.com, CEO at DLJ Group Inc., founder at Selectioneering, and former director of the Tucson Regional Office of the Arizona Technology Council.

Williams, not only opened the Council’s first Tucson office, he achieved a 500 percent membership growth in southern Arizona.

Other winners and their categories included:

Innovator of the Year - Start-Up Company: VisionGate, Phoenix

Individual Award Winners: OneNeck IT Services People’s Choice Lifetime Achievement Award:

The firm was incorporated in 2001 to battle the world’s No. 1 cancer killer, lung cancer, for which no standardized test exists.

Dr. Alan Nelson, the company’s founder, chairman and CEO, has created the first automated 3D cellular imaging platform, which is the basis for non-invasive lung cancer detection and screening, the Cell-CT. Today, VisionGate holds 64 patents in 13 countries.

Roy Vallee, executive chairman of the board of Avnet Inc., Phoenix

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Arizona Technology Report

William F. McWhortor Community Service Leader of the Year: James C. Wyant, Dean, College of Optical Sciences, The University of Arizona, Tucson

Ed Denison Business Leader of the Year:

Clate Mask, chief executive officer, Infusionsoft, Gilbert

Photos by Mark Goldstein

Anyone who thinks innovation is the cost of a recession couldn’t be more wrong.

Winners in a variety of categories were announced recently at the 2011 Governor’s Celebration of Innovation, an annual gala hosted every year with the Arizona Technology Council, in partnership with the Arizona Commerce Authority. The evening was held at the Phoenix Convention Center.

This year’s event, with the theme of “Arizona Rising,” also featured a Technology Showcase with over 50 booths, providing an opportunity for award finalists and sponsors to discuss and demonstrate their exceptional products and services to the over one thousand attendees.

“This year’s GCOI winners are being recognized for their prestigious technology achievements and innovations that have the power to transform our state and build a sustainable economy with jobs that typically pay higher than average wages,” said Steven G. Zylstra, president and CEO of the Arizona Technology Council. “We are proud that these exceptional companies and individuals with great minds are members of our community and congratulate them on these well-deserved awards.”

Teacher of the Year Award Winner:

Future Innovators of the Year Award Honorable Mentions:

Birgit Musheno, Desert Vista High School, Phoenix

Colby Howell, Hamilton High School, Chandler Soumya C. Kambhampati, McClintock High School, Tempe

Teacher of the Year Award Honorable Mentions: Paul J. McElligott, Fountain Hills High School, Fountain Hills Sandra Trevino, Buena High School, Sierra Vista

Future Innovators of the Year Award Winners: Aakash Jain, Brophy College Preparatory High School, Phoenix Francisco Orozco, Tucson Magnet High School, Tucson Cory Owan, Catalina Foothills High School, Tucson Rajet Vatsa, Brophy College Preparatory High School, Phoenix

Future Innovator of the Year winner Francisco Orozco of Tucson Magnet High School explains his project

Tech Ten Legislators The awards were given in recognition of legislative members who have demonstrated outstanding support for promoting and advancing Arizona as a top-tier technology state.

Outstanding Tech Senator of the Year Award Sen. Sylvia Allen (R-District 5) Outstanding Tech Representative of the Year Award Speaker of the House Andy Tobin (R-District 1) Arizona State Senate: Sen. Richard Crandall (R- District 19), Sen. John McComish (R- District 20) Sen. Kyrsten Sinema (D- District 15) Arizona House of Representatives: Rep. Heather Carter (R- District 7), Rep. Tom Forese (R- District 21), Rep. Eric Meyer (D- District 11), Rep. Amanda Reeve (R- District 6), Rep. Debbie Lesko (R- District 9), Rep. Ted Vogt (R- District 30) Rep. Kimberly Yee (R- District 10)

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aztechcouncil.org

It’s a Hub to Building Business

/inbusinessmagphx Arizona Technology Report

5

10 Years and Counting 2012 marks a decade of service by the Council What a difference a decade makes!

This year marks the 10th anniversary of the Arizona Technology Council. While some members know the Council for such events as the annual Governor’s Celebration of Innovation while Arizona’s lawmakers know the organization’s lobbying to affect public policy such as passage of the Angel Tax Credit, there is so much more that the Council has provided the state’s technology community.

These are the major milestones during the member-supported group’s first 10 years.

2002

The Arizona High Tech Industry Cluster merges with the Arizona Software and Internet Association AZSoft.net to become the Arizona Technology Council, expanding its scope to include all types of technology companies. With unity of purpose, it was believed Arizona’s technology industry would increase its ability to compete regionally, nationally and globally for growth companies, employ a highly skilled workforce and attract strong capital investments.

2003

The Governor’s Celebration of Innovation (GCOI) was established by combining the Arizona High Technology Industry Cluster’s annual Innovator of the Year awards ceremony and AZSoft.net’s Celebration of Innovation. With the addition of the support from the Office of the Governor, GCOI has become the premier technology community gathering of its kind in Arizona.

2005

The Council launches TechConnect, Arizona’s only magazine of science and technology, to explore the region’s latest trends, entrepreneurs, and issues affecting the growth of technology.

2006

• T he first Vote TechSmart is published to provide a report card on legislators’ support of technology issues as well as offer endorsements of candidates in the fall election.

• The Council partners with Westech Recyclers to offer a convenient, secure, and legal means for the disposal of computer, medical, manufacturing, and electronic equipment.

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Arizona Technology Report

2007

• T he Council holds the first Arizona Business + Information Technology Expo, an annual event that becomes the state’s largest and most valued technology trade show.

• The Council’s Workforce Development Committee organizes the Arizona Middle School Science Bowl (AZ MSSB) with the support of the Arizona Technology Council Foundation and sponsors. The AZ MSSB is an academic event held annually to encourage student involvement in math and science.

2008

• T he Council relaunches the annual Partnering Conference, an opportunity for companies to present their partnering opportunities and experts to discuss how to expand and innovate through strategic alliances.

• Merger with the Aerospace, Manufacturing and Information Technology Supercluster creates the Council’s first Tucson office. The office is now at The University of Arizona Science and Technology Park.

• Realizing people in the corner office also need support, the Council holds its first CEO Retreat. The annual two-day event gathers Arizona’s presidents and CEOs for networking and panel discussions.

• The Arizona Technology Council Foundation returns to provide non-profit, industry and academia grants and awards to further promote and grow technology in the state through the raising of funds, leadership, collaboration and innovation.

2009

• T he first Arizona CIO of the Year Awards Luncheon is added to the annual Arizona Business + Information Technology Expo.

• The first digital edition of TechConnect is published.

2010

• A ZTC State PAC is created to help Arizona political candidates who support the critical issues for technological advancement and growth and technology-based economic development.

• The Council hosts its inaugural trade mission to China in conjunction with the Arizona Department of Commerce and the Arizona U.S. Export Assistance Center to introduce technology companies to business opportunities in China through meetings with government officials, industrial park leaders, peer companies, and consumers.

2011

• T he Council publishes its first membership directory.

• The number of members exceeds 600 for the first time.

• The Council partners with AZBio to host the annual Partnering Conference.

aztechcouncil.org

Bigger and Better Mergers and acquisitions offer chance for tech companies to hit new heights The year 2011 brought changes for the better for a number of Arizona Technology Council member companies involved in highprofile mergers and acquisitions. OneNeck IT Services, Ensynch and iLinc Communications were purchased while Avnet and Insight Enterprises bought some properties.

OneNeck IT Services of Scottsdale was acquired by Telephone and Data Systems to become a subsidiary of TDS Hosted & Managed Services. OneNeck is a premier provider of hosted application management and managed IT hosting services to middle market businesses.

The U.S. operating subsidiary of Tempe-based Insight Enterprises, a leading global technology provider of hardware, software and service solutions with headquarters in Tempe, acquired Ensynch, a leading professional services firm in Tempe with multiple Microsoft Gold competencies and solutions across the complete IT stack. iLinc Communications, Inc., a leading provider of web collaboration services for global businesses, governments and educational institutions, was acquired by BroadSoft, Inc. of Gaithersburg, Md. After the purchase, the Phoenix-based firm became Broadsoft iLinc Communications.

The year brought a shopping spree for Phoenix-based Avnet, one of the world’s largest transnational electronics distributors of electronic parts, enterprise computing and storage products, and embedded subsystems. In the course of 2011, Avnet purchased: Amosdec, a leader in the field of virtualization and storage management solutions throughout France.

J.C. Tally Trading Co. and affiliate Shanghai FR International Trading, an interconnect, passive and electromechanical components distributor in Asia with operations in Taiwan and China.

Prospect Technology Corp., an electronic components distributor with operations in Taiwan that provide technical support, module solutions and circuit design support to help customers expedite product development.

French company DE2 SAS with the intention to combine it with the Avnet Embedded business in France to leverage the expertise and resources of both companies.

Pinnacle Data Systems, Inc., whose facilities in Ohio, Singapore and the Netherlands provide services and products for the telecom, imaging, defense/aerospace, medical, semiconductor, industrial automation and IT markets.

Arizona Technology Report

7

connect + grow We exist to help science and technology companies of all sizes and stages succeed. By serving as the principal point of connection, the Arizona Technology Council can help you build global partnerships to grow locally, get your innovations noticed and stay ahead of the curve.

take a fresh look Whether you’re a part of a startup, emerging or well-established company in Arizona, we offer resources designed for you to gain insight, education, and connections.

In addition to our networking opportunities, public policy support and professional development programs, our members receive exclusive discounts on products and services and are provided numerous opportunities to get the word out about their unique value.

one renaissance square • 2 n. central ave • suite 750 • phoenix, az 85004

Take a fresh look and watch us grow with you as we continue to offer you membership benefits that will bring you closer to meeting your business goals.

@aztechcouncil

aztechcouncil.org

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Index Index by Name Ali, Lonnie, 34 Allen, Sylvia, Sen., 59 Alter, Michael, 18 Balch, Shayna, 14 Bates, Cindy, 30 Berry, Halle, 34 Brewer, Janice K., Gov., 11, 22 Brossart, Diane, 32 Bruhnke, Doug, 35 Burleson, Tess, 28 Campana, Sam Kathryn, 12 Carter, Heather, Rep., 59 Coughlin, Michael W., 34 Crandall, Richard, Sen., 59 Currie, Sean, 34 DiCiccio, Sal, 14 Dines, Keith, 14 Engel, Julie, 22 Esque, Shelly, 28 Feuer, Michael, 20

Index by Company Aerospace, Manufacturing and Information Technology Supercluster, 61 Ahwatukee Foothills Chamber of Commerce, 36 Alerus Bank, 43 AlphaGraphics, 51 American Society for Quality, 35, 36 American Solar, 32 Amosdec, 61 Apple, 38 Arizona Business Advisors, 16 Arizona Commerce Authority, 33 Arizona Corporation Commission, 33 Arizona Department of Commerce, 61 Arizona Diamondbacks, 39 Arizona Digestive Health, 12 Arizona Foundation for Medical Care, 15 Arizona Hospital and Healthcare Association, 22 Arizona Integrated Physicians, 14 Arizona International Growth Group, 35 Arizona Office of Tourism, 22 Arizona Public Service, 28, 33 Arizona Small Business Association, 36, 37 Arizona State University, 22, 28 Arizona Technology Council, 22, 36, 55 Arizona U.S. Export Assistance Center, 61 Arizona’s Children Association, 34 Association for Corporate Growth - Arizona, 36 Assured Security Document Destruction, 50 Audubon Arizona, 12 Avnet, 9, 22, 58, 61 Banner Health Network, 14 Biltmore Bank of Arizona, The, 53 Blacktie Arizona, 31 Broadsoft iLinc Communications, 61 Broadsoft, Inc., 61 Brophy College Preparatory High School, 59

64

F e b r u a r y 2012

Forese, Tom, Rep., 59 Goode, Sandy, 18 Henry, Sherry, 22 Hope, Jeremy, 21 Howell, Colby, 59 Jain, Aakash, 59 Jimmy Carter, Pres., 32 Kambhampati, Soumya C., 59 Knowlton, Ken, 16 Kubicek, Jeremie, 21 Lee, Charles, 30 Lesko, Debbie, Rep., 59 Long, Dave, 45 Mahrer, Eran, 33 Mask, Clate, 58 Maxwell, Thomas, III, M.D., 14 McClelland, Norman, 12 McComish, John, Sen., 59 McElligott, Paul J., 59 McLeod, Tammy, 28 McPheters, Lee, Ph.D., 22

Meyer, Eric, Rep., 59 Mills, Michael, M.D., M.P.H., 12 Murray, Dave, 16 Musheno, Birgit, 59 Niblock, Bradwin, 35 Nicpon, Jan, 48 Nicpon, Stan, 48 Nolte, Kurt, 22 Novak, David, 21 Orozco, Francisco, 59 Owan, Cory, 59 Paige, Lynn, 32, 33 Pavese, Cesare, 38 Phillips, Steve, 22 Player, Steve, 21 Pollack, Elliot D., 22 Post, Bill, 28 Rea, Perry, 33 Reeve, Amanda, Rep., 59 Schlomach, Byron, 22 Schuman, Ted, 19

Seitz, Joy, 32 Sheridan, Kevin, 21 Simplot, Tom, 14 Sinema, Kyrsten, Sen., 59 Singleton, Lori, 32, 33 Stangel, Jason, 30 Taylor, Sally, 35 Tobin, Andy, Rep., 59 Trent, Jeffrey, Ph.D., 28 Trevino, Sandra, 59 Tyler, Michael L., 16 Vallee, Roy, 58 Vatsa, Rajet, 59 Vermillion, Chuck, 58 Vogt, Ted, Rep., 59 Walker, Jimmy, 34 Wertheim, Pete, 22 Werthman, Sandy, 33 Williams, Justin, 58 Wyant, James C., 58 Yee, Kimberly, Rep., 59 Zylstra, Steven G., 22, 55

Buchalter Nemer, 43 Buena High School, 59 Business & Decision, 30 Cassidy Turley BRE Commercial, 6 Catalina Foothills High School, 59 Celebrity Fight Night Foundation, 34 Center for Economic Prosperity, 22 Center for Services Leadership, 4 Centers for Habilitation, The, 50 Central Phoenix Women, 36 Chandler Chamber of Commerce, 36 Chelsea’s Kitchen, 44 Children’s Dental Village, 51 Cold Stone Creamery, 38 College of Optical Sciences, 58 Conquest Training Systems, 6, 40 Coronado Café, 44 DE2 SAS, 61 Desert Vista High School, 59 DLJ Group, 58 eBusiness North America, 30 Economic Club of Phoenix, 36 Eller College of Management, 31 Elliot D. Pollack & Company, 22 Ensynch, 61 Expect More Arizona, 41 Fennemore Craig, P.C., 66 Fisher & Phillips, L.L.P., 14 Fountain Hills High School, 59 Four Peaks Brewing Company, 50 Friendship Village, 51 Geordie’s Restaurant & Lounge, 44 Goldwater Institute, 22 Grand Canyon University, 49 Greater Phoenix Chamber of Commerce, 36 Greater Yuma Economic Development Corporation, 22 Hamilton High School, 59 Heasley & Partners, Inc., 38 Holmes Murphy, 10 Honeywell Aerospace, 58 HYATT house, 16 IKEA, 63

iLinc Communications, 61 Infusionsoft, 58 Insight Enterprises, 61 Intel Corporation, 28 Intuit, 42 J.C. Tally Trading Co., 61 JT’s Porch Saloon & Eatery, 66 JumpStartBiz, 16 KeatsConnelly, 35 Linda Land, 10 Lon’s at the Hermosa, 44 Maricopa Workforce Connections, 13 Mayo Clinic, 28, 68 Mberry, 30 McAfee, 30 McClintock High School, 59 Michael Pollack Real Estate Investments, 50 Microsoft Corp., 30, 38 Milken Institute, 22 Motorola, 42 National Association of Women Business Owners, 36 National Bank of Arizona, 5 National Labor Relations Board, 66 North Phoenix Chamber of Commerce, 36 Northern Arizona University, 28 Omni Resorts Tucson, 67 OneNeck IT Services, 58, 61 Organization of Women in International Trade, 36 Perfect Power Solar, 32 Phoenix Analysis Design Technologies, 58 Phoenix Convention Center, 7 Phoenix Film Foundation, 65 PhoneLab, 42 Pinnacle Data Systems, Inc., 61 PlanetOne Communications, 19 Prospect Technology Corp., 61 Pump It Up, 16 Queen Creek Olive Mill, 33 Regus, 18 Reliable Background Screening, 17 SCF Arizona, 2

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Roundtable

A Candid Forum

Practice Safe Social Media Policies New federal guidance helps businesses navigate minefield of social media landscape

by Carrie Pixler Ryerson If an employee is exchanging ideas with a co-worker at the water cooler about their low wages and is fired as a result, the employer has likely violated the employee’s rights under the National Labor Relations Act. In the context of social media, however, what if an employee rants about his or her wages, hours or working conditions on Facebook or another social media platform? Can the employer discipline or even fire that employee? Much like the water cooler hypothetical, the traditional standard under the NLRA still applies; unless employees are engaged in a dialogue with co-workers concerning wages, hours or working conditions, they will not have the NLRA’s protection.

Until recently, there was little guidance from the National Labor Relations Board about what employers can and can’t do in response to social media rants. With increasing frequency, the NLRB has addressed some of these issues head-on in an attempt to provide guidance to businesses that have employees expressing work-related frustrations through social media.

This federal authority applies in Arizona and is helpful to both employers and employees as they attempt to navigate uncharted waters.

The benefits of a considered policy are two-fold. First, a social media policy provides uniform guidance for company-wide decisionmaking with respect to employee discipline for improper conduct. Second, an employee on the wrong side of a disciplinary action can look to the objective criteria in the policy for guidance going forward and also to quell any thoughts that he or she was treated unfairly. At the very least, even absent a social media policy, employers need to be wary of disciplining employees for conduct on social media, given the recent influx of NLRB interest in the topic.

Who Is the Employee Conversing with on Social Media?

In JT’s Porch Saloon & Eatery, the NLRB addressed a situation involving a bartender

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who posted a Facebook message about his employer’s tipping policy in response to a comment from one of his relatives. The bartender also called his employer’s customers “rednecks.” Responding in kind, the company sent the bartender a Facebook message informing him that he was fired. Although the bartender’s comments concerned his tips or wages, the NLRB found the firing to be lawful because the bartender was merely responding to a post from a relative, not a co-worker. The NLRB underscored that the employee was not attempting to encourage group action among other employees to talk with management.

Along the same lines, in Martin House, the NLRB examined a situation in which an employee who worked the night shift at a mental institution engaged in a conversation with personal friends on her Facebook wall through a series of posts while at work. The employee remarked that it was spooky to work there at night and also made comments about the mental institution’s patients. After a former client of the mental institution saw the posts and reported the employee to her supervisor, the employee was fired. The NLRB again upheld the termination because the employee was “merely communicating with her personal friends about what was happening on her shift” and, therefore, was not discussing wages, hours or working conditions with co-workers.

What Is the Employee Talking about with Co-workers?

In Wal-Mart, a case in which Walmart was the employer, an employee made several profane comments about his supervisor on Facebook to co-workers. In response, the co-workers expressed sympathy and also found humor in the employee’s situation.

Significantly, none of the frustrations expressed by the employee called for action by his co-workers or were intended to induce them to rally behind him to complain about the

supervisor. Ultimately, the NLRB upheld the termination because the employee’s “postings were an expression of an individual gripe.”

Similarly, in Schulte, the NLRB addressed a situation in which an employee’s supervisor invited him to join LinkedIn, a professional networking site. Upon acceptance of the invitation, the employee jokingly identified his job title with the company as “$$$$tard.”

Several months later, once the employer discovered the vulgar job title, the employer terminated the employee for disparaging the company in violation of its Electronic Communication Policy. The NLRB upheld the termination as lawful, finding “[t]he LinkedIn ‘joke’ clearly is not protected.”

Social Media Policies Offer Protection for Employers The NLRB pronouncements make clear that unless an employee is either engaged in a dialogue with co-workers or about to engage co-workers in a dialogue concerning wages, hours or working conditions, the employee will not have the NLRA’s protection.

These distinctions can go a long way toward helping employers define permissible and impermissible conduct for employees in a social media policy for the workplace.

Fennemore Craig, P.C. fclaw.com National Labor Relations Board nlrb.gov

Carrie Pixler Ryerson, an attorney in the Phoenix office of Fennemore Craig, P.C., practices in the areas of appeals, and labor and employment law.

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