Arizonaâ€™s Healthcare Industry: Will Its Economic Force Survive?
Power Lunch By the Numbers Business Calendar
MARKETING YOUR BUSINESS: WHAT WILL GET YOU NOTICED?
This Issue Scottsdale Area Chamber of Commerce Arizona Small Business Association
Service Opening Worlds of Opportunity through the Science of
Thereâ€™s a science to competing through service, which is why we are worlds apart from other universities and consulting organizations. As a thought leader and groundbreaking research center, The Center for Service Leadership (CSL) brings together insights from the academic world and business strategy from the real world to solve the unique set of challenges companies face today.
Science We are in the business of the science of services â€“ we base our understanding on research, not just platitudes.
Significance We are in the business of developing and sharing what works in the real business world, not just pure theory.
Symbiosis We are in the business of building a network that can discover ways to compete through service, not just business as usual.
To learn more about how you can compete strategically through the science of service, visit wpcarey.asu.edu/csl today.
Arizona State University
W. P. Carey School of Business P.O. Box 874106 n Tempe, AZ 85287-4106 Phone: 480-965-6201 n Fax: 480-965-2180 wpcarey.asu.edu/csl Twitter.com/WPCCSL
ENDLESS BUSINESS SOLUTIONS. ONE LOCATION. At SRP we know that your success is our success. That’s why we are proud to announce the SRP Business Resource Center. We’ve partnered with trusted local sources to put relevant business information at your fingertips to help your business grow and succeed. You’ll find critical insights from many experts, including the Arizona Small Business Association. We trust these sources and are confident they can help you with everything from growing your business to accessing monthly overviews of the local economy. To put this free resource to work for you, visit srpbizresource.com.
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Rick Kidder, President & CEO Scottsdale Area Chamber of Commerce (480) 355-2700 • www.scottsdalechamber.com
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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 email@example.com.
Associate Partners Ahwatukee Foothills Chamber of Commerce www.ahwatukeechamber.com Arizona Chamber of Commerce & Industry www.azchamber.com Arizona Hispanic Chamber of Commerce www.azhcc.com Chandler Chamber of Commerce www.chandlerchamber.com Economic Club of Phoenix www.econclubphx.org Glendale Chamber of Commerce www.glendaleazchamber.org Greater Phoenix Black Chamber of Commerce www.phoenixblackchamber.com 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
J u ly / A u g u s t 2011
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Marketing Your Business: The New Norm There has been an explosion of social media, Internet marketing and apps for everything; even traditional marketing is changing rapidly, in real time. Turning to industry leaders for perspective, Max Kipling reveals why, in order to remain relevant and attractive to their target market, businesses had better learn to leverage traditional with the newest digital opportunities to get noticed.
9 Guest Editor
15 The Economic Force of Arizona’s
Recent changes in healthcare reimbursements lead Arizona businesses in an uncertain dance. Bob Ryan explores how budget cuts to healthcare may cripple this vital portion of our state’s economic engine.
23 Your Server Has Done Its Time
An aging server is as inevitable as death and taxes. Gremlyn Bradley-Waddell looks into the question of what to do with aging hardware — repair or replace?
Jos Anshell, chief executive officer of Moses Anshell, introduces the “Marketing” issue.
Noted business leaders Bert Castro, Ann Siner and Michael DeMaria respond to IBM’s burning business question of the month.
“Business Travel Budgets to Increase,” “Alt-Fuel Technologies Grow Locally”and “New Aviation Technology Program Fills Arizona Job Need.”
14 By the Numbers 25 Biosciences: Growing and
Thriving in Arizona
Arizona is home to a diverse slate of more than 800 bioscience companies, and new ones are being established every year. Alison Stanton delves into why the industry is flourishing here and what it means for our economy. inbusinessmag.com
Visit inbusinessmag.com for:
■■ Local and national business
What’s up with the Valley’s traditional summer fall of revenue. Plus: Key economic indicators provide a sense of the health of the local economy.
17 Trickle Up
View from the top looks at how Sharon Harper makes “real estate service” a moving definition to keep Plaza Companies changing for the better.
Ronald McDonald House of Phoenix The Wellness Community
“eWriter Tablet Takes You Paperless,” “Key Man Insurance: The ‘Key’ to One’s Business” and “Ticket Sales Companies: Entertain or Impress”
32 Power Lunch
Parc Central is a Manhattan experience. Plus: “Oh, that Happiest of Hours”
Identity Theft and Security Breaches: Do You Know Your Business Risk?
27 On the Agenda
July and August’s calendar of business events presented by our partners Partner Sections SCOTTSDALE CHAMBER.CO M
Area Chamber of Commerce
& financial news
■■ The best local business resources
■■ Archived In Business stories ■■ Discounted tee times ■■ Business events calendar 6
J u ly / A u g u s t 2011
MEMB ER CO MMUN IQUÉ
Message from the Presi dent An astounding of Arizonans percentage choose to volunteer for more nonprofits one or , and without their help, many organizatio ns would be severely challenged in meeting their missions. chamber of commerce A no different. is
Rick Kidder The Scottsdale blessed Area Chamber to have of Commerce more than on behalf is of the organizatio 200 volunteers “Downtow and the working n, their n … Things business own businesses to number communit will be individuals great when one in the spend countless y. These dedicated we’re Downtown something charts guests that energizes, in 1965, still hours welcoming at events, .…” The ring true. heart with helping through words of creates shape the There is dreams committee a buzz, Petula Clark, something of infinite reveals In a place work, assisting community implemen which rose excitemen magical possibilitie where most ting about a in designing t around s. livability, downtown and providing programs that every corner our relationsh people grew and benefit , up elsewhere ongoing their peers and that a view equally ip with communit support fills one’s Downtown but migrated for the y as a whole. rife with exciting business Scottsdale the excitemen to this place More often change. may be of beauty t of old a little bit There is and new, go unrecogniz than not these and different, a magic remarkabl young and ed or not but it should to Downtown which is e people not quite Scottsdale thanked good while be Scottsdale so young Area Chamber appropriat also advancing Downtown and constant , a magic remember of Commerce ely. The Scottsdale framed at great at every by a strong that appeal caters speed toward tries to meeting volunteers desire to and activity to the traditional to every kind who hold on residentia of demograp an evolving and to thank not do enough, do so much for to that and the l population our prosperou hic, with us every avant garde. we know, has helped s future. districts day. We Downtown derive such and many Dining do and pockets bring life ’s success and nightlife satisfactio of our volunteers audiences to our Downtown of energy is and will are not n from abound it addresses always what we be in part and a burgeonin deemed core at arising. do . Where due that never stop all hours. necessary, While all to the diversity thanks there are g us from agree that but that many types sometime doing so of uses should We honor Downtown s living and the whenever of use, many of and playing diversity there must club scene with our our volunteers we can. create challengesevolve and mature is also the inevitabilit of has prompted Business every year strike a Volunteers as a live/work/ y of conflict of volunteers a compromi for each balance Awards. other. between se play sifts through noise and Late A committee environme disagreem in multiple the needs ordinance night noise countless nt, ent. of residents categories on which from the nominatio The city recognize the Chamber , and very active and businesse ns and its those honorees it is our pleasure worked residents truly helped s. Growth that behind mightily to and stakeholde sometime Downtown to each honoree in this issue. We s brings rs have ■ We become more who recognize conflict lie a couple come to refuse to a more labor more several vibrant allow the them with in the shadows, of hundred important include economic core of an overlay all our hearts. conclusion Downtown center for and we allowing s that have is to maintain Scottsdale to look thank residentia like every : independe l by right. ■ Height other Downtown nt, local The core and density businesse . All areas must remain belong Square s over national at its edges, and Scottsdale low-scale chains. and the not its center. city council, Rick Kidder, Healthcar goal e, height Anchored in its wisdom, President/ amended and density The Arizona by Scottsdale CEO embraced developm are limited Small Business Fashion an infill ent standards Associati to the periphery incentive on IN BU in those district SINES and the to allow areas that and growing (ASBA) is a dynamic S MA greater surround GAZIN commun E our Downtown height and entrepren ity dedicated eurial developm . to
41 Arizona Small Business Association
business ent and advancem reach to ent. With more than a employee 300,000 s at nearly business es, ASBA 5,000 member at every provides stage of services business Offering growth. resource s to fulfill business critical needs, ASBA members offers access to the only its guarante ed-accep tance group plan in the state, health human solutions resource and group buying power. ASBA is Arizona’s experien leading, ced trade most committe associati on d to making best place Arizona for the your business launching and growing ; creating to make opportun money, ities save money achieve amAZing ™ results. and
Cover Your Assets! ...... . pg. 2 Start Up and Speed Up with ASBA ...... Statewid pg. 4 e Discuss with Arizona ion Busines ses . . . pg. 6 more
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rn Arizona 4811 E. Grant Road, Suite Tucson, p | 520.327. AZ 85712 262 0222 f | 520.327. 0440 © 2011 ASBA. Association. A publication contact For more of the Arizona information Arizona us at www.asba.co Small Business Small Business m. or Sectionto join ASBA, Association. designed please by the
Ants and Teamw Entrepreneu ork Flo ats our rs: Boats Continues
on pg. S@W
SCOTTSD ALE@WO RK - 1 We could all learn somethin Yes, those g about aggressiv teamwor e, little research k from insects fire ants. by the with a Georgia nasty sting. discovere d that during Institute of Technolo Recent watertigh a flood, gy has t commun the colony al raft. create Their teamwor unites to form this raft a and float k allows away safely the ants to different to locations l ant will . Donna struggle raft can survive and flail Davis for months. in a flood, together, while an Not only they are ants pulled ant are the more research together ants stronger ers submerg buoyant. When even more together to maintain tightly, ed the working raft, the their watertigh t craft. There is a lesson here for it takes us. During the efforts adversity of an entire hang in , there and commun ity to figure out done. The worse a way to get the the situation we, like job the ants, gets, the need tighter survival and well-bein to stick together. Our g depend on it. If fire ants can figure current it out, surely challenge we can. s facing together With the us, we and develop need to stick ever. solutions That's now more why I have than focused the team on identifyin at g and implemen ASBA solutions to help ting our business In the next commun few ity. these resource pages, we share some of s. An individua
So let’s hang tough together, forming, help each time to get on other out board. and Donna
During adve entire comm rsity, it takes the effort s of an out a way unity to hang in there to get the and figure job done .
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july/august 2011 • Vol. 2, No. 7
Accelerating Business Performance Through
Innovative Thinking As a leader, one of the biggest obstacles you face is getting the right people to help propel the company to
Publisher Rick McCartney Editor RaeAnne Marsh
Art Director Benjamin Little
Contributing Writers Gremlyn Bradley-Waddell Mike Hunter Max Kipling Bob Ryan Alison Stanton
the next level. Salespeople can be the greatest asset or the greatest liability. The world is full of frauds and wimps who say, “They can” but don’t, or “they will” but never do. How fast can you tell? This workshop provides a clear direction and system to hiring “REAL” sales professionals.
Photographer-at-large Dan Vermillion Circulation Barb Nolan subscription J.A. Neally firstname.lastname@example.org
Focused on You & Your Business
THuRSdAy, July 28 4 p.m. to 7 p.m. Seasons 52 Restaurant Biltmore Fashion Park Dinner & Workshop $195 per person
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Operations Louise Ferrari
Account Executives Louise Ferrari
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J u ly / A u g u s t 2011
President & CEO Rick McCartney Financial Manager Ryan Cope Editorial Director RaeAnne Marsh Senior Art Director Benjamin Little
Vol. 2, No. 7 . In Business Magazine is published 11 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 email@example.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. © 2011 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.
Jos Anshell, Moses Anshell
Stop It. Stop It Right Now.
Jos Anshell is responsible for the overall management of Moses Anshell. His knowledge and experience in market research, strategic planning and financial management have been the foundation of the agency’s growth and success during the past 27 years. In addition to lending his expertise in support of numerous community organizations, Anshell has a lengthy record of leadership involvement in civic organizations. Anshell was named “Ad Person of the Year” in 2006.
Stop what, you say? Stop doing things the way you’ve always done them. Clean your closet — those bell bottoms aren’t coming back. And if they do, I guarantee you that you’ll have to buy new ones. The world has changed, and you’d better change with it or you’re going to get left behind — if you haven’t already. The Internet has changed everything — some for the good, some for the not-sogood. Marketing has always been based on understanding your consumers. Today, its a two-way conversation — in real time. If you don’t get that, if you’re not prepared to engage your customers, listen to them and alter what you do — right now — you’re in real trouble and you probably don’t even know it. That’s what we do at Moses Anshell every day. A down economy. Sluggish recovery. Double-dip recession. These terms are used to describe the economic situation we hear about over and over again every day. While they may describe the situation today, they certainly do not reflect your efforts. I consistently hear from business owners that they are working harder than ever before just to achieve minimal results. Well, it's time to change that, and I believe that if you use the most effective, the most cost-efficient and the most relevant marketing tools available today, you’ll be amazed at how much you can accomplish for how little. ROI, that’s the name of the game. In this issue, Max Kipling uncovers the importance of “return on investment” in this month’s cover story on building revenue through strategic marketing. Marketing your company in a way that will garner return is known to include a bit of magic. Kipling looks at the various segments of marketing that your company can employ to provide a return and speaks to industry professionals about what you, as a business owner, should be looking for when spending your money. Strategy, message and the right vehicles to promote that message may just be the answer to getting out of this down-turned economy. Biosciences are becoming big business in the Valley and the growth of this industry is evidence of what can be done to boost industry by creating jobs and notoriety here. Alison Stanton exposes what it took to get this industry booming, the effect it is having on our economy and the example set for opening the Valley to new industry. With more than 800 bioscience companies in Arizona and new ones coming in each year, we are poised to become the Silicon Valley of bioscience. Because there are enough risks in business, In Business Magazine editor RaeAnne Marsh cautions business owners of the vulnerabilities inherent in business these days with identity theft and security breaches becoming more and more of a daily occurrence. The effects can be devastating to a company, so she engages the advice of experts in business and the law to alert us to available protections and procedures. This issue will not have all of the answers to all of the issues confronting businesses these days, but we present some steps and hopefully provoke some strong thought that will build business for us in the Valley. Sincerely,
Jos Anshell CEO, Moses Anshell
ROI: Jump In Head First With the economy in slow motion, it is more important than ever to be smart about your marketing, and to jump in head first and ahead of your competition while they are likely pulling back. In our cover story, we explore the latest options and focus on leveraging several methods of marketing your business to ensure you get a return in your investment. This is our only double issue each year (July/August). The Valley, and even business seems to slow down during these months, so we put In Business Magazine
Connect with us: on vacation as well. We are working on an expanded September 2011 edition on education and its affect on Arizona's economic development. Also, a big thank you to Jos Anshell for his insights and frank talk about marketing your business in a time when we are all looking for miracles. Businesses cut marketing as soon as company revenues begin to decline, but this is NOT a time to stop marketing — in fact, it is the time to start. —Rick McCartney, Publisher
Story Ideas/PR: firstname.lastname@example.org Business Events/Connections: email@example.com Marketing/Exposure: firstname.lastname@example.org Or visit us online at www.inbusinessmag.com
I n B u s i n e s s Ma g a z i n e
Valley Leaders Sound Off
Executive Answers If you had an unlimited marketing budget, how would you direct your top marketing efforts? From what element of marketing would you expect to get the biggest bang for your buck?
Norberto J. (Bert) Castro
Chief Executive Officer My Sister’s Closet Sector: Retail Unlimited budget? That’s nothing short of saying you have all the money you would ever need! There would be no prioritizing marketing efforts with an unlimited budget, so let’s go back to the real world of budgets. First, find an expert — be it an agency or in-house person with experience. Find someone who knows marketing and your business. Next, determine who you want to reach and what you want to tell them. For instance, at My Sister’s Closet we realized that the person we should direct our top marketing efforts at is not the final buyer. For us, it is the supplier/consigner. Finally, your top advertising efforts should be based on the most cost-effective way to reach that audience. Websites and social media are the buzz of the new millennium, but don’t overlook the touchyfeely, basic advertising. People still read magazines, see billboards, listen to the radio and watch TV. The beauty of these mediums now is there are so many choices that your top efforts can be clearly directed at the audience you want to reach.
President & Chief Executive Officer Phoenix Zoo Sector: Nonprofit An unlimited marketing budget would be a dream come true, wouldn’t it? Certainly we would reinforce the Phoenix Zoo’s message and brand, using traditional mediums such as print, radio, television, outdoor and online advertising. But, with the popularity of social and multi-media, we would place the majority of the Zoo’s marketing efforts in this ever-growing and innovative advertising segment. Creativity is king, and guerilla marketing and thinking outside the box is critical to get past the noise and the deluge of today’s marketing messages. We would direct our top marketing efforts and dollars in resources to be more creative with the development and execution of promotions, campaigns and videos that are captivating, engaging and memorable. Additionally, we would create a street team to take the Zoo out into the community to share our message and bring animals to festivals, events and gatherings. An unlimited budget would also allow us to give back to the community by supporting organizations that are in line with the Phoenix Zoo’s mission: To inspire and motivate people to care for the natural world.
My Sister’s Closet mysisterscloset.com
Phoenix Zoo phoenixzoo.org
Ann Siner is founder and CEO of high-end designer resale concepts My Sister’s Closet, My Sister’s Attic and Well Suited. Her company has become the premiere consignment brand in the country, drawing attention from media like the “TODAY Show” and The Wall Street Journal. Siner is equally passionate about the community, donating time, money and expertise to helping others and animals.
President and chief executive officer of the Arizona Zoological Society since February 2008, Bert Castro also serves on the board of the American Association of Zoos and Aquariums. He is a past chairman of the Zoo Conservation Outreach Group, a nonprofit organization that gives professional guidance and assistance to zoos in Central and South America, and has been active in many global conservation efforts.
Michael DeMaria Chef/Partner M Culinary Concepts Sector: Restaurant With an unlimited budget, we at M Culinary Concepts would direct marketing dollars into public relations programs/stunts and social media programs/promotions. These are effective marketing strategies in our fast-moving, ever-changing society. In the past, TV commercials and radio advertising would have been likely avenues for our marketing strategies, but not anymore. Instead, we would spend money on digital marketing in addition to the money spent to gain earned media. We would allocate significant budgets for social media sites and
J u ly / A u g u s t 2011
online advertisements, including viral videos — our target clientele with expendable income are online. Complementing digital marketing, we would purchase outdoor advertising, as the vast majority of people still commute to work. Billboard and shelter ads combined with digital ads seen online when people arrive at work would most likely be highly effective. We would spend marketing dollars on a giant campaign that could be seen everywhere. Simultaneously, we would have our PR team secure television spots (live and recorded), and get extended life out of them by posting them online. Beyond that, we would channel remaining funds into niche magazines that fit our profile and demographics. M Culinary Concepts mculinary.com
Armed with 34 years of experience, Chef Michael DeMaria brings flavor and a passion for cooking as co-owner of M Culinary Concepts, Heirloom Restaurant and Mid City Kitchen. Inducted into the Arizona Culinary Hall of Fame and named Master Chef and Best of the Valley by Phoenix Magazine, Chef Michael’s love of food, people and fun is obvious.
In case you missed our tweet: AvnetComms Avnet Congrats 2 Rick Hamada our new and 9th Avnet CEO succeeding retiring Roy Vallee. 28yr vet a strong performance/culture leader COO since 2006 3 hours ago
Quick and To the Point
Business Travel Budgets to Increase
Alt-Fuel Technologies Spur Entrepreneurial Interest
In spite of inroads by virtual technologies, the value of faceto-face meetings is still driving business to include travel in yearly budgets. The recently released survey by GetThere, a leading travel and collaboration management solution, reveals that nearly two-thirds of its customers expect their travel budgets to increase this year over last by up to 10 percent. Some of that increase represents a recognition that airfares and hotel room rates have risen. Corporations have also begun to address ancillary fees in their travel policies as airlines continue to introduce extra fees. In general, most companies are reimbursing travelers for their first checked bag, although fewer are doing so for a second bag. Companies reimbursing for on-board food and beverage and Wi-Fi increased by 13 and 20 percentage points, respectively. Cost savings are being found in other options. “Even though the economy is rebounding and business travel is growing, corporations are using the lessons learned during the recession to continue to push for cost savings in their travel programs,” explains Suzanne Neufang, general manager of GetThere, noting that the rate of their adoption of online services continues “to rise in every region, representing significant savings for corporations.” And corporations are also turning more and more to mobile tools to help save time and money in their travel programs. GetThere reports the mobile space continues to be a growth space for the travel industry, and, for the second straight year, its respondents ranked obtaining flight information as the most important feature of a mobile solution, while booking flights and hotels ranked second and third, respectively. —RaeAnne Marsh
Entrepreneurs are tapping into the growing interest in alternatives to petroleum-based fuel with alternatives of their own. The Veggie Garage in Mesa offers a conversion for diesel engines to enable them to run on waste vegetable oil, which can often be acquired free from restaurants. The only dealer in Arizona for BioFuels Technologies’ Vegistroke systems, its conversion is suitable for diesel cars, trucks, RVs and commercial vehicles, and Veggie Garage manager Dave Roberson says the cost savings of the life of the vehicle can be more than the cost of the vehicle. REV Biodiesel produces a diesel alternative that is processed so diesel engines can use it without a conversion. Made with waste vegetable oil, sewage, and tallow and other animal fats from cattle processing plants, biodiesel is the only biofuel recognized by the United States Environmental Protection Agency as an Advanced Biofuel because it does not compete with food, provides superior energy efficiency, carries significant potential for technological improvement and petroleum displacement, and is sustainable. It is not recognized by the Arizona Department of Transportation, however, as exempt from the Arizona state fuel tax. Owner Dan Rees says he’s been swamped with demand since starting in the business out of his garage in 2007. The company’s recently opened Gilbert plant is set to produce 10 million gallons of biodiesel per year, and was designed to eventually produce 30 million gallons per year. The grain alcohol ethanol, which can be blended with gasoline for use in automobiles, does qualify for the state’s fuel tax exemption. Making ethanol available locally, Minnesota-based Easy Automation, Inc. has just opened Easy Energy Systems in Scottsdale to sell automated, scalable, modular ethanol distilleries to entities such as farmers and food manufacturers to enable them to divert what would otherwise constitute considerable waste stream — not edible food, as other ethanol processes use — into a useful product. In spite of ethanol’s recent setback in the U.S. Senate, Easy Automation is poised to build a plant locally to manufacture the distilleries. —RaeAnne Marsh Easy Energy Systems easyenergysystems.com
REV Biodiesel revbiodiesel.com Veggie Garage veggiegarage.com
New Aviation Technology Program Fills Arizona Job Need A projected increase in air passenger traffic coupled with technicians retiring or moving to other repair fields is expected to result in a need for technicians licensed in airframe and powerplant over the next decade, according to the Bureau of Labor Statistics. With roughly 400 aviation technicians now in the Greater Phoenix area, according to Cliff Migal, assistant superintendent at the Western Maricopa Education Center, the school is launching a program to address this impending employment shortfall. To satisfy the future need in Arizona, WestMEC will begin offering a two-year Aviation Technology program to high school students in August and adults in early 2012. Students will learn basic aircraft repair and work with engines, turbines and interior electronics of aircraft at West-MEC’s new facility near the Glendale Municipal Airport.
J u ly / A u g u s t 2011
Upon completion of the 1,952-hour program, students can take a Federal Aviation Exam and receiver their FAA Airframe and Powerplant certification. Technicians with this certification have a better chance at getting a job at small commuter and regional airlines, repair locations and general aviation airports, according to the BLS. “We worked with the advisory commission to find out where the next phase of job trends are going to be and decided to offer an aviation class,” says Adriana Alvarado, public information officer at West-MEC. —Melissa Mistero Bureau of Labor Statistics bls.gov Western Maricopa Education Center west-mec.org
80 paintings by 45 of Mexicoâ€™s leading artists drawn from one the worldâ€™s most important private collections.
Now On View | PhxArt.org/ModMex
I n B u s i n e s s Ma g a z i n e
By the numbers
Metrics & Measurements
The Summer Fall of Revenue A decade ago, many Metro Phoenix businesses greeted the summer months by shuttering the store for the season — especially if theirs was a tourist-aimed business like an art gallery and they had stores in other cities. This affected services, too — 1997 was the first year Scottsdale Healthcare on Shea kept more than its emergency room open through the summer. Today, business in Metro Phoenix is more a year-round environment. ASU economics professor Timothy James, Ph.D., who is also director of research and consulting with the L. William Seidman Research Institute at ASU’s W. P. Carey School of Business, suggests this is due less to the population growth we have experienced than to the current economic downturn. There’s a big change in seasonal population — people come for the winter and leave for the summer. That causes demand for retail and services to fall off during the summer, he says, but “people pay the lease cost on an annual basis whether they’re open or not, so they’re prepared to stay open with a skeleton staff because it generates some revenue.” Prices in some sectors reflect the reduced demand. Golf is one area with famously lowered summer rates. Golf courses even drop the fees a second tier to entice players to brave afternoon tee times. Hospitality resorts to special summer packages along with reduced room rates, and have made “staycations”
a popular option for many locals. In fact, Scottsdale counts Metro Phoenix as the source of its biggest block of summer visitors — making up 35 percent of the total — although out-of-area visitors outspend Phoenicians by about 80 percent over the full course of a visit. The City of Phoenix, for its part, seems to have an ace in the hole this summer. Scott Dunn of the Greater Phoenix Convention & Visitors Bureau says summer this year is shaping up to be “a perfect storm.” Events lasting several days fill much of the Convention Center’s calendar from June 7 through Aug. 6, with expected attendance from 10,000 to 100,000 people each: Southern Baptist Convention, Volleyball Festival, MLB All-Star FanFest, Benevolent & Protective Order of the Elks, and General Council of the Assemblies of God. “These five events alone are projected to generate $143 million in direct spending for the metro area,” says Dunn. Noting that the same period last year saw only an estimated 45,000 attendees, Dunn adds, “So it’s safe to say that the $143 million direct-spend figure … is more than double that generated by all the events held at the convention center last summer.” —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) Unemployment (Apr. 2011)
Consumer Confidence (Q2 2011)
Consumer Price Index* (US) (Apr. 2011)
Job Growth (Apr. 2011) in thousands No. of Housing Permits (Apr. 2011)
Eller Business Research
Retail Sales (Metro Phoenix) Retail Sales (in thousands)
Restaurants & Bars
visitphoenix.com W. P. Carey School of Business wpcarey.asu.edu
Total room revenue per night
Total Revenue $4,000,000
Vacancy Rate Net Absorption Rental Rates (Class A)
Vacancy Rate Net Absorption Rental Rates (Class A)
Residential: Total Sales Volume
OE S A NIX NG EL NE ES W SA YO N RK FR AN CI SC O CH IC AG O DA LL AS DE NV ER TU CS SA ON N DI EG O WA SE AT SH T IN GT LE ON D. HO C. US PH T ILA ON DE LP HI A AT LA NT A BO ST ON
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YOY % Change
Eller Business Research
Greater Phoenix Convention & Visitors Bureau
Scottsdale Resorts' Summer Revenue
Chart provided by Scottsdale Convention & Visitor Bureau; Resort Year 2010.
YOY % Change
Total Median Sale Price
New Build Sales Volume
New Median Sale Price
Resale Sales Volume Resale Median Sale Price
* Consumer Price Index refers to the increase or decrease of certain consumer goods priced month over month. ** Sales Tax refers to Arizona Transaction Privilege, Severance and Use Taxes. *** Cassidy Turley/BRE Latest data at time of press.
Our Subject In-Depth
The Economic Force of Arizona’s Healthcare Industry Recent changes in healthcare reimbursements lead Arizona businesses in an uncertain dance by Bob Ryan “Economic recovery is just around the corner.” We’ve all heard it. Week after week, month after month, government agencies, pundits, pollsters and economic forecasters continue a two-steps-forward-one-step-back dance as businesses in the state of Arizona — and across the nation — lurch along toward a hazy future. The recovery has been slow and, even now, each movement in the dance seems critically dependent on taking the right steps at the right time. This includes our nation’s healthcare system — a sixth of our total economy. Over the past decade, Arizona’s healthcare community has shown itself to be an economic catalyst for the state, helping to shore up the overall economy even during downturns. The current recession is no exception. At a time when many industries have been cutting jobs or holding growth to a minimum, Arizona’s healthcare sector has been growing. Valley hospitals have continued to expand facilities, helping to bolster the state’s ailing construction industry. According to information made available by the Arizona Hospital and
Healthcare Association, as Arizona’s jobless rate climbed over the last few years, the healthcare sector was adding jobs — some 6,400 in 2010. Beyond that, an economic impact study by Arizona State University’s L. William Seidman Research Institute credits Arizona hospitals with creating more than 80,000 jobs statewide due to facilities construction, purchase of goods and services, and new or expanded programs. The Patient Protection and Affordable Care Act of 2010 initiated the largest change in America’s healthcare system since the creation of Medicare and Medicaid. The intent, of course, is to provide more people with access to care. But with most states facing billions in budget shortfalls, funding the increase in care is problematic. Earlier this year, Governor Jan Brewer and Arizona lawmakers passed important legislation designed to revitalize Arizona’s economy, attract new businesses and recover some 300,000 jobs lost during the the recession. Many in the healthcare community, however, fear that aspects of the
new plan could undermine those very efforts. Throughout the healthcare sector, it is believed that the changes attempt to resolve Arizona’s current fiscal woes at the expense of this vital portion of our state’s economic engine. The Senate budget passed on March 16 includes provider rate reductions for the Arizona Health Care Cost Containment System that could go as high as 10 percent. The legislation also eliminates all general fund support for AHCCCS coverage increases mandated by voter approval of Proposition 204 in the year 2000. Under the new Senate budget, hospitals would lose approximately $600 million in revenue during fiscal year 2012. This comes on the heels of $700 million in hospital payment cuts and rate freezes that the legislature has imposed since 2008. In addition, a plan to reform AHCCCS, put forward by Governor Brewer, includes an estimated $530.7 million in new cuts to hospitals during FY 2012. When federal matching funds of two dollars to every one contributed by the state are factored in — money culled from taxes that Arizonans are already paying and that will otherwise go to other states — the numbers begin to soar. Viewed in the light of total annual cost, the funding losses for the entire Arizona healthcare community could total more than $1.9 billion. The question arises as to whether these cuts are sustainable and what ultimate effect they will have not only on hospitals and other providers, but on Arizona business in general. In a letter to the secretary of the Department of Health and Human Services last April, AzHHA noted: “Arizona hospitals and economists predict these cuts will force widespread job losses that will begin in the healthcare industry and then ripple down to other sectors of Arizona’s economy.” AzHHA’s CFO, Jim Haynes, recently pointed out that hospitals alone account for roughly 10 percent of Arizona’s economic output. “Add to that private practitioners, nursing homes, independent health centers, surgery centers and other healthcare-related businesses throughout the state, and you have a significant segment of the economy that is immediately and directly affected by changes in compensation. “The Governor’s proposal is being reviewed by the Centers for Medicare and Medicaid Services in Washington as well,” he said. “CMS will take little issue with some parts of the proposal, but will find other portions more difficult to accept.” He also mentioned a
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lawsuit that has now been filed by The Centers for Law in the Public Interest, challenging the constitutionality of what the Governor has proposed, so the issue is far from settled. Meanwhile, those facilities that serve more AHCCCS patients will be hardest hit, and some are fearful that they are going to have to start ratcheting down care along with downsizing staff. According to Tara McCollum-Plese, director of government and media relations for the Arizona Association of Community Health Centers, “We employ M.D.s and D.O.s, but we also have pharmacists, dentists, nurse practitioners, nurses, physician assistants, administrators, bookkeepers — the whole cadre. Like any business, staffing is generally going to be the first place you cut.” The trickle-down to the business community overall is easy to imagine. As hospitals and other healthcare providers reduce or curtail certain services, delay new construction or defer new purchases, the affected suppliers would fail to meet sales projections and begin to tighten up, too, with perhaps more layoffs to follow. But that’s only one part of the equation. To try to make up for dollars drained away by uncompensated care, healthcare charges will naturally have to rise, and insurance premiums will rise as well, making it harder for Valley businesses to offer the same benefits, or for workers to afford the premiums. The total effect could make Arizona a much less attractive place in which to work or do business. Regardless of what happens with the implementation of national healthcare legislation, Arizona has to gain control of its overall spending, and healthcare plays a huge role in the state’s budget considerations. Dave Veillette, CEO of Cancer Centers of America’s Goodyear facility, says, “There’s a new healthcare environment coming down the pike. I don’t think healthcare leaders are going to bury their heads in the sand and cry, ‘Woe is me.’ We’ll figure out how to make it work because we have to. We’re all going to have to get a little bit smarter at how we do things.” Arizona Association of Community Health Centers aachc.org Arizona Hospital and Healthcare Association azhha.org Cancer Treatment Centers of America Western Regional Medical Center cancercenter.com/western-hospital.cfm
A View from the Top
Leading Plaza Companies on Changes for the Better
Photo: Plaza Companies
by Alison Stanton
For Sharon Harper, the key to running a successful company for almost three decades is to not be shy about reinventing yourself along the way. Harper is president, chief executive officer and co-founder of Plaza Companies, a 29-year-old full-service real estate service company that currently has three areas of interest in Arizona: medical offices, senior housing and biotechnology/biosciences. The company manages, leases or owns more than 5 million square feet of space. “Anyone who stays the same does not prosper,” Harper says. “Reinvention and innovation are part and parcel to Plaza Companies, which, year after year, has allowed us to do well. Our ability to adapt has helped us be where we are today.” Since it opened in 1982, Plaza Companies has developed and built medical office buildings. It now provides a complete line up of services to the area, including leasing and property management. Harper says demographics helped determine the desire to work with continuing-care retirement communities, an area of real estate that Harper expects to grow even stronger as a significant segment of the population grows older. “There are 35 million Baby Boomers today, and there will be 75 million in 2030,” she says. “We are innovative in developing housing products developed for seniors, and we have a strong foundation in this area, and we focus on what we do well.” Focusing on three sections of real estate also makes Plaza Companies very distinctive, Harper says. “Our goals are to inspire and lead the community and accommodate groups of individuals to the full mission of the company and supercede the expectations of the tenants, residents and partners,” Harper says. “Plaza Companies’ significant expertise and leadership with medical office buildings and healthcare facilities, including the property and facility management, asset management, leasing and sales services and construction expertise, has grown the company significantly both with our own portfolio and now with third-party strategic alliances.” An innovative
alliance with Healthcare Trust of America, a prominent medical office non-publicly traded REIT owner, resulted from this focused expertise. Other alliances include Mather LifeWays and Vi, a Hyatt-based organization, to couple national expertise with Plaza’s Arizona-based knowledge and influence. These partnerships have resulted in senior communities such as Splendido at Rancho Vistoso and Vi at Silverstone. In 2006, the leadership of Plaza Companies made a decision to focus on a third area of business: biotechnology and bioscience development, management and services. “As a result of that strategic decision and the research and expertise developed along these lines, Plaza Companies is now the developer and owner at SkySong, in partnership with USAA and Arizona State University Foundation, and has significant expertise in the bioscience sector through additional projects in the region,” says Harper. She believes her company’s ability to adapt to advances in research and technology and continued innovation will allow it to keep up with this rapidly growing field. Harper admits the economy has provided its share of tests for Plaza Companies, but as a business owner she knows she is far from alone. Instead of dwelling on the negative, Harper continued to focus on what her business does well that sets them apart. “Reflecting back on three years of the recession, it’s been incredibly challenging for every business,” she says. Noting that Plaza Companies has continued to be flexible and diversified, she also credits the leaders of the company’s various divisions. “Attracting and developing company leaders with significant expertise and reputation has strengthened the Plaza Companies platform significantly. The empowerment of these leaders has dramatically impacted the reach and reputation of Plaza Companies over the past several years.” Harper also knows that a company needs a strong community surrounding it in order to do well. Because of this, she and other
Plaza Unbounded ▶▶ Plaza Companies has offices in Peoria, Scottsdale and Tucson. ▶▶ In 2010, the company oversaw $130 million of shell and facility construction of medical offices. ▶▶ The company developed Freedom Plaza in Peoria, the state’s first for-profit continuing-care retirement community. ▶▶ Research and biotechnology projects include SkySong, ASU’s Innovation Center in south Scottsdale.
members of her company are involved in numerous business and community organizations, including Banner Health Foundation, Greater Phoenix Economic Council and Virginia G. Piper Charitable Trust. “I truly believe that the overall strength of region and community is important to the success of Plaza Companies, and that our success is reflected in [the] success of [the] region as well,” she says. Looking ahead to the next 29 years, Harper believes that as long as the company remains committed to excellence, integrity and accountability while being willing to adapt to the times, Plaza Companies will continue in its success. “Always being focused on these values is the very foundation of a great company. I see great opportunities in the future, since all three areas we work in are well-positioned for sustainability, and we will continue to be changeable.” Plaza Companies theplazaco.com
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Marketing your business: The New Norm
Leveraging the options makes for strongest ROI by Max Kipling Five years ago, Oâ€™Neil Printing President Tony Narducci faced a unique dilemma. The industry was shifting, due in large part to advances in technology that allowed local (and national) rivals to offer digital printing options. It was up to Narducci and his management team to determine whether digital printing was a passing fad or the wave of the future. There was a great deal riding on the decision, including Oâ€™Neilâ€™s more-than-100-years reputation as a local leader in the printing industry.
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It was, for lack of any better way of putting it, a major turning point for them and the print industry. Similarly, there has been an explosion of social media, Internet marketing and apps for everything, while what we have known to be “traditional marketing” is ever-changing — and rapidly, in real time. It doesn’t mean that traditional marketing such as print or direct mail are no longer valuable, it simply means that in order to remain relevant and attractive to their target market, businesses had better learn to leverage. Narducci and his team came to the conclusion that O’Neil would continue to offer clients all of the traditional printing options it had in the past, but it would also add an array of value-added digital services. “The changes in our business haven’t been driven by marketing or advertising trends so much as emerging software applications,” Narducci points out, citing the example of QR codes, new digital bar codes that give a static, printed piece a more dynamic impact by directing the user to another website or video via a smartphone application. Using these new technologies as a way to empower a business’ marketing is where the true returns will be found. “These days, it’s all about using the right tool for the right audience,” Narducci insists. If the dynamic O’Neil is experiencing sounds familiar, there’s a reason for that. Technology has changed the way people across all markets and industries do business. Call it adjusting to the digital revolution. Call it the age of cloud computing. Call it Marketing 2.0, if you like — it is a reality and it is the new norm in marketing a business. The Age of New Marketing Vehicles Getting noticed is the goal everyone, from business owners to agency creative teams, is striving to accomplish in their marketing efforts. The “latest and greatest” or the “next new thing” is often a result of a strong campaign. The choices as to by which vehicle the message may be delivered are ever-changing and present new options every day. The sheer number of avenues to track — Smartphones, Groupon, e-mails, QR codes, hashtags and more — makes it more difficult than ever before to answer the question, “How will I get a return on my marketing dollars?” How significant a role do smartphone applications (or mobile apps) play when it
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comes to engaging customers? Four out of five adults in the U.S. now own a cell phone, and more than half of those adults will own a smartphone by the end of 2011 — a clear sign that mobile apps may, in fact, be the new Internet. What’s more, the majority of smartphone owners claim they’d be much more willing to view an ad on their mobile device than on any other digital medium, according to a survey by MediaPost Communications. Rates of response remain to be seen, but given the minimal expense, it is likely that this medium will garner at least some level of return. A high percentage of progressive companies have turned to e-mail marketing as a cost-effective alternative. In fact, nearly 40 percent of companies that have mapped out an official e-mail marketing strategy are seeing a substantial ROI from their efforts.
Three proven strategies that have helped companies maximize their e-mail open/response rates:
more effectively and change on a dime once they have analytics to show them what is working. While e-mail may be more precise in terms of metrics, it does have certain drawbacks. More than half of e-mail recipients have unsubscribed from lists because a company was sending them far too many messages, according to research by ExactTarget.com (a global software company). In addition, more than two-thirds of e-mail marketers agree their biggest challenge is producing copy or content that prospects will respond to. “When it comes to e-mail marketing, there’s a fine line between strategic planning and spamming,” Toll explains. “We avoid spamming at all costs. Before we partner with companies, we do our best to ensure all the e-mail addresses they’ve provided are verified sign-ups, meaning [each name represents]
■■ Timing e-mails to coincide with specific trigger
events (e.g., following up with prospects after they’ve registered on the company’s website or after they’ve contacted customer service).
■■ Segmenting e-mail campaigns based on past buying history, industry, SIC info and/or exec title.
■■ Personalizing the body of the message so it’s
specifically tailored to each prospect. Be mindful, though: Personalizing the subject line has been proven to increase the likelihood the message will be blocked by spam filters.
Is this an answer to printing costs and other costly media? “Traditional mail and print [marketing] isn’t something companies should abandon,” says Mike Toll, director of operations for FireDrum, a Web marketing company headquartered in Scottsdale. “But e-mail marketing is a much more economic way to deliver your message. E-mail is more targeted, and it’s also highly trackable.” With traditional mail, the only true statistic that can be determined is response rate. With e-mail, a business can measure who received it, who opened it, how many times they opened it, as well as what times of day they opened it. Did they click through? What did they click through to? What time did they click through? A message can be tested with different subject lines — or vice versa — to see what gets the best results. In short, e-mail allows companies to target their market much
someone who’s actually requested, in one way or another, to receive some type of information from that company.” The spamming dynamic has crossed over into social media, where 63 percent of customers have “unliked” (or stopped “following”) a company because it floods them with posts or messages about discounts or special offers. This is a true negative and something that facsimile marketing experienced to such a degree that sending random ads was banned. It’s a perplexing issue for companies, specifically because research shows the leading reason customers start following a company on Twitter or Facebook is to take advantage of special promotions. Social media is currently the most common marketing channel used in the U.S., with 79 percent of companies maintaining some type of social media presence or strategy, according
Although there’s no silver bullet (at least not yet), social media campaigns that have yielded a significant return generally have three things in common:
■■ They focus on engaging customers as often
as possible, as opposed to using social media feeds as an online billboard for their products.
■■ They use social media to solicit actionable
feedback from customers about what they want, rather than to provide feedback explaining how the company plans to respond.
■■ They incorporate a company-wide approach
to the Content Marketing Institute’s annual benchmarking study. Still, less than a third of companies have found social media effective in terms of increasing sales, satisfaction or loyalty — a statistic that leads some analysts to believe the social media bubble could be on the verge of bursting. If social media is nearing its peak, giants like Facebook and Twitter are making the most of their moment. Both companies have developed advertising models, and Facebook’s, which is based on targeted page views (the current ad rate is approximately $.10 per page view), would seem to represent a veritable goldmine. What has become the most traditional of the non-traditional methods of marketing is online advertising. This vehicle was once the “trendy” marketing method of the month, like social media is today, but online marketing is gaining some notable traction because it allows advertisers to track clickthroughs. “Online advertising could reach $100 billion worldwide over the next several years,” says Neal Mohan, vice president of product management for Google. Considered to be interactive marketing, this vehicle makes it possible to advertise goods and services that are immediately relevant to the end-user or the end-user’s online habits. Responding to or interacting with Banner ads, tower ads, Rich Media ads and the like is becoming an accepted part of our activity when we search the Web. Right there on our screen is an ad for something that is likely relevant to our needs or the services we are searching. As a way of analyzing and monetizing this new medium, Google introduced clickthrough rate into the ranking algorithm in 2001 as a measure of an ad’s relevance. The ads that appear first on a website or search using
where every department is represented, so customers feel like they can either read direct comments from the C-suite or resolve a customer service issue via the company’s Twitter feed.
Google Ads are the ones rated most relevant because they have been clicked on by the greatest number of people. This jump-started what might otherwise have been simply another flash-in-the-pan marketing vehicle. Progressive business marketing plans include leveraging other vehicles, such as print, with online marketing to be more strategic in targeting the business’s particular market. 'Old Hat' Still Fits Nicely — with that Digital Fringe The vehicle is the method by which we deliver our already-brilliant messages, so the more traditional “vehicles” are more commonly seen as the foundation for strong marketing campaigns. Credibility, relevance, familiarity and brand awareness develop quite well under these more traditional campaigns, according to Deloitte Media Study 2011. Further, expertise in developing metrics, a responsive message (using digital elements such as QR codes) and target markets have become so refined over recent years through technology, digital products and software that
Three specific ways to leverage direct mail with new opportunities to maximize exposure:
return on investment is more measurable and even driven to be more cost-effective. But it is the use of technology that has truly improved these media. Consider the future of direct mail — a tried-and-true cornerstone of traditional marketing. As postal rates increase in direct correlation to the decrease of bulk mail, companies have been forced to rethink their direct mail strategies. Matt Olsen, director of marketing for Scottsdale-based Amazing Mail, a direct mail facilitator and list provider, suggests today’s companies are much more selective in terms of how (and why) they invest their marketing dollars when it comes to direct mail. “Our direct mail customers will invest more in making sure they get the right list up front,” Olsen explains. “They rely more on personalizing their content to maximize response rates. Because there are so many other options available, companies also expect a higher level of accountability from direct mail facilitators these days.” Digital technologies, the Internet, Twitter and other emerging marketing elements combine well with direct mail. The use of website for more information means respondents have the entire business at their fingertips; they can go online to get to know the business or purchase its product now that they have been told of its services. A direct mail piece will land in their lap and digital “vehicles” will provide answers to their questions or make deals available for immediate response. Furthermore, campaigns and a strong strategy to determine who gets mailed and how frequently mean the business or service is getting exposure, whereas a URL or Facebook page might lie unseen unless the customer
■■ Use direct mail pieces to direct the audience to the
company’s website, Facebook page or Twitter address (sometimes enticing with a Web-specific discount or offer) as a way to drive more qualified prospects to register online for e-mail updates, e-newsletters and other info.
■■ Invest time and automated resources through a direct mail company to seek the target market and a refined list of customers for a specific message or campaign.
■■ Use CRM software, e-mail and mobile technology to maintain
constant communication with customers to better serve them and market additional products and services.
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Three examples of specific ways to leverage print advertising with new digital opportunities to maximize exposure:
■■ Create a marketing savvy website that the
client may interact with, purchase goods and services or become better informed through.
■■ Match demographics from print campaigns to
the same demographic on a digital campaign.
■■ Direct respondents to a digital product
makes a specific search for it — customers will need to know about the business before they can find it. Despite the emergence of e-mail marketing and social media, 79 percent of companies still consider direct mail an integral part of their overall marketing strategy, according to a recent MarketingSherpa study. Direct mail is particularly beneficial for small companies of 100 employees or less that cater to a close-knit pool of prospects, as well as companies located in rural regions where e-mail isn’t as widely used (or popular). Television still remains the most viable option for companies that have a considerable advertising budget, with 86 percent of respondents from the Nielsen poll insisting television ads still have more impact on their buying decisions than any other medium. A representative from KTVK in Phoenix reinforces that assessment, pointing out that even local television affiliates have a much wider reach than most radio stations and print publications. On top of which, television commercials remain the most effective way for companies to appeal to consumers on a number of different levels (e.g., visual, audio, emotional, et cetera.). While that may be true, Michael Hiatt, sales manager for Cities West Publications (publishers of Phoenix Magazine and Phoenix Home & Garden Magazine), suggests that print advertising is still very powerful when it comes to providing a guaranteed return. “According to the Magazine Publishers of America, no other medium directs ad traffic more effectively than magazines,” Hiatt insists. “And so, philosophically, even though our magazines do have a Web presence, and even though we do offer online advertising and we promote social media campaigns, all of those go through our core product, which — in this case — means the magazines.”
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(website, mobile app) where the company can capture their information to further target market them.
Regardless of the medium, it takes a long time to generate a clearly defined, built-in audience — the type that advertisers can bank on. “Regardless of what type of medium, you have to build your brand, and then you have to market it like crazy,” Hiatt says. “You have to build awareness. You have to push traffic. Over time, our magazines have amassed a proven, invested audience.” Perhaps the most traditional of the marketing vehicles, print has evolved to include many of the new digital technologies. In fact, Google, Facebook, Twitter and countless websites look first to print to market their products and services or even to announce their existence. Many simply want to sell a particular message, while others want to announce their Web address and gain visits to a particular URL. The QR codes have gained in popularity simply because it is a new technology. Many report these codes do not work well and predict the technology will be lost if not improved. Statistically, the best way for advertisers to ensure a specific publication will be a “good fit” for their marketing needs is to compare their own demographics with the publication’s audience accumulation data. Perhaps the best example of traditional marketing evolving to leverage the digital age is the outdoor billboard. Outdoor billboards are experiencing a modern resurgence,
The three types of organizations that stand to benefit most from digital billboard advertising:
thanks in large part to digital technology that allows organizations to change or update their message at a moment’s notice. “Digital billboards have proven to be invaluable community service tools — delivering real-time public service and emergency messaging across America,” explains Diane Veres, president of the Arizona Division for Clear Channel Outdoor. The new digital billboard is one of the most effective means for reaching the public. From missing persons notices and Amber Alerts to casino and automotive advertisements, the digital billboard is nearly a television commercial 30 to 60 feet in the air. Digital billboards currently account for less than 1 percent of all billboards nationwide, but that number continues to rise as companies like Clear Channel find new and innovative ways to use digital technology to increase the value of each advertiser’s investment. So, what’s the gimmick to getting through these tough times and making the biggest marketing splash? There are so many possibilities, from costly to inexpensive. But the accepted wisdom is to leverage traditional with the newest digital opportunities to get noticed. Says Narducci about leveraging the opportunities, “The key is to combine digital technology with traditional pieces to make them more actionable and valuable for our clients. If a client’s target demographic is retirees, enhancing the piece with digital options may not make a lot of sense. But if the client’s main demographic is college students, a multi-media approach might really enhance the [marketing] campaign.” Amazing Mail amazingmail.com Cities West Publishing phoenixmag.com Clear Channel Communications clearchannel.com FireDrum Web Marketing firedrum.com KTVK Channel 3 azfamily.com O’Neil Printing oneilprint.com
■■ Public safety or civic organizations that are responsible for posting advisories.
■■ Media outlets that provide the public with news updates.
■■ TV and radio stations that use the
billboards to provide up-to-the-minute details about what they’re broadcasting.
Innovations for Business
That said, there are times when it makes sense to perform a less expensive upgrade than to buy a new server. Other times, of course, replacing an aging server with a new model is the best option. Local experts say there are several points to consider when deciding what’s best for your firm’s bottom line.
Your Server Has Done Its Time Now what do you do with aging hardware — repair it or replace it? by Gremlyn Bradley-Waddell
If you’re an entrepreneur, you know there’s a third item behind death and taxes on that list of inevitable things: an aging server. That’s because, if things are going right for your business, it is growing and expanding. And so are the needs of your employees who are, in turn, writing e-mails, creating any manner of documents, sending invoices and receiving payments. So, as your company’s needs increase, the demand on your server — the central location where all computerized information is stored and through which all your data is processed — increases as well. Add to that the fact that, like most electronic components, a server has a projected lifespan and capabilities that become diminished in a few years’ time thanks to a constant onslaught of newer and faster technologies. Before you know it, you’re faced with re-evaluating your hardware.
Sluggishness Is a Sign As for how you’ll know when a server repair or replacement is in your company’s future, Faisal Kohgadai says it’s usually pretty obvious. The president and CEO of Emerald IT Services in north Phoenix says the computers get sluggish and turn simple tasks into exercises in frustration. “The server is slow and things will take longer for you to pull up,” he says. The problem may be due to reduced storage space on the server — anything less than 25 percent calls for action — or the simple fact that the hardware is past its prime. Still, change within the world of servers is not as rapid as it is in the world of other consumer electronic products. A typical server has a fiveyear lifespan and shouldn’t show any signs of slowing down during its first couple years. After five years, though, most servers cannot support the latest technology and, therefore, can’t offer all the features available on newer software. While Kohgadai says most companies opt to buy new, upgrading may be a good, short-term solution, particularly for cash-strapped outfits with servers less than five years old. Upgrading also means you’ll have spare parts available in case something goes wrong with the upgraded parts. Mikel Robinson, president of Network Dogs, Inc., says of the roughly 1,900 to 2,000 computers his firm “babysits” — his term for what his Phoenix-area business does — “maybe once in a while we’ll do a little upgrade.” That generally means adding either virtual or actual RAM (random access memory), the most common type of memory found in devices like computers. Not all clients can make the financial leap to a new unit, so Robinson and his employees do what they can. “We’re just getting them by,” says the Wyoming transplant, whose Western heritage is evident when he says the company does that with “a lot of duct tape and baling wire.” Never Buy for Today After the five-year mark, a server upgrade doesn’t make sense, Robinson says. At that
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point, you have to upgrade “everything but the metal box around it.” Besides, he adds, companies like Dell offer a five-year warranty, making upgrading practically passé. “If anything breaks, they come out and fix it — everything except software: the modem, hard drive, CDROM, the motherboard.” When the time does come to buy new equipment, Kohgadai says it pays to do due diligence. Research the market and work with your IT department or get some outside IT assistance. Whomever you choose guidance from should be patient, he adds. In fact, a phrase like “We need to make a decision right away” is a red flag, he says; seek help elsewhere if you hear that or experience pushy tactics. Even if a network crash appears imminent, don’t rush into a purchase. “We can always get [companies] back after a crash,” he says. You’ll also need to use a little foresight when buying a new server. After all, Robinson says, you might have five employees today, but if business is good, might your workforce double in a year or two? You need to factor in future needs as well as the fact that technological requirements are becoming more complex, such as the case of PDFs (Portable Document Format files) that take up significantly more space than old-school Word documents. Says Robinson, “You never buy for today.” So, now the big question: How much is this going to cost? Kohgadai says a start-up server for a smaller business runs around $3,000, while a higher-end model is roughly $10,000. Robinson is in the same ballpark, adding that he recently put a $4,500 server into a fiveperson office. A server for offices of 50 and fewer employees, he says, runs approximately $6,000 to $7,000. Installation fees are extra and site-specific, so they do vary. And if your tired server is still, well, serviceable, Kohgadai says you might be able to sell it and offset the cost of a new one. Finally, eco-minded types will be happy to learn that an aged server doesn’t have to end up in a scrap heap or landfill. Kohgadai says a company might be able to repurpose it and use it in another capacity, such as testing. Or a company might donate a server to another organization, such as a nonprofit. “When it’s old, it doesn’t have to be tossed or set to the side.”
©2011 Wells Fargo Advisors Financial Network, LLC. All rights reserved. 0411-2287
Emerald IT Services emeraldit.net Network Dogs, Inc. networkdogsinc.com
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Industry at Its Best
Biosciences: Growing and Thriving in Arizona by Alison Stanton
A decade before Governor Brewer identified science to the Arizona Commerce Authority as important to Arizona’s economic development, the field of biosciences began to flourish in vast and fascinating diversity. Today, Arizona is home to more than 800 bioscience companies, and new ones are being established every year. Bioscience: More than Medical Testing and Laboratories People tend to think of bioscience as relating to medical research and testing, observes Brad Halvorsen, vice president of communications at the Flinn Foundation, a Phoenix-based foundation that supports the advancement of the biosciences. Actually, he says, the industry encompasses five key areas: agricultural feedstock and chemicals; drugs and pharmaceuticals; medical devices and equipment; hospitals; and research, testing and medical laboratories. The first three are product-oriented; the last two, service-oriented. Bioscience differs from biotechnology in that biotechnology is the implementation of the biosciences, explains Joan Koerber-Walker, president and chief executive officer of Arizona Bioindustry Association. “The short-hand
version is, if it’s alive, if it was alive, or if it supports something being alive, it’s probably bioscience.” As a trade organization, AzBio strives to create a forum for the bioscience community to join together to advance the industry in Arizona, and Koerber-Walker notes that within the state of Arizona on any given day, there is activity in all five sectors of bioscience. “This sets us apart from many parts of the country that might see companies focusing on just one or two areas.” A Geographic Pattern of Bioscience Clusters Among the reasons Halvorsen cites to explain Arizona’s attraction for bioscience companies is the opportunity for collaboration. “Many want to locate close to a major research university, such as ASU or UA, and others want to be close to research institutes such as TGen, a research hospital, or alike companies.” But Arizona offers a wealth of other resources. “Some find Arizona ideal because we have high activity in clinical trials and have good representation of certain populations — for example, elderly, or native populations — that are integral to their research. Others
might find the climate and environment conducive to their research, such as in Flagstaff,” says Halvorsen. “And we hear that companies want to be where the biosciences community is active and growing.” Diverse though the industry is, the makeup of bioscience establishments tends to differ from one region of the state to the next. Notes Halvorsen, Flagstaff key subsectors are medical devices and equipment, and hospitals; the Phoenix metropolitan area has a higher concentration of research, testing and medical laboratories; and Tucson has research as well as testing and medical laboratories and hospitals. “For Flagstaff, the presence of W.L. Gore, a major medical-device manufacturer, is the main reason that the city is so highly concentrated in medical devices and equipment,” Halvorsen says. “I believe it’s the largest private employer in town, with the possible exception of Flagstaff Medical Center. Plus, a few smaller device companies have been started locally by former Gore employees. In Phoenix and Tucson, we can’t say with any certainty [why certain types of biosciences are clustered there], though the presence of ASU and UA is a likely factor, based on the
I n B u s i n e s s Ma g a z i n e
Sector nature of the technologies emerging from the universities and the types of companies that may want to locate close to these major research universities.” Big Boost to the State’s Economy MaryAnn Guerra, chief executive officer of Phoenix-based BioAccel — an independent Arizona not-for-profit organization that helps drive economic development through the commercialization of late-stage basic and applied research in the life sciences — asserts several reasons the biosciences are important to Arizona’s economy. These include bringing high-paying jobs to the area, job growth, and the fact it’s a fast-growing industry that needs employees from a wide range of skill levels. She notes the number of bioscience jobs grew from nearly 69,000 in 2002 to just over 90,000 in 2009, while the number of firms increased by about 200 to more than 800 during that same
Muscles, a homegrown stroke therapy business in Tempe that works closely with Arizona State University. “We were incorporated in May of 2001 and so we’ve actually survived two fairly major recessions,” says the COO of the company he helped found. “Last December, we reached a major milestone; we were told that we had some end-of-the-year budget money that we had to spend, and we hadn’t gotten that call in two years. But now things are definitely on the upswing because hospitals are spending more money on equipment again.” Glen Galster, president of Algae Biosciences in Overgaard, says his company, a disruptive biotechnology corporation that has the potential to produce a multitude of products from more than 200,000 species of marine and freshwater algae for a diverse range of markets, is also holding its own. “Since the fall of 2007, capital formation to raise the necessary funds has been nearly impossible to obtain, but,
“During the recession, overall jobs were down by 12 percent, but bioscience went up by 7 percent." —Joan Koerber-Walker time frame and the National Institute of Health grants also saw a dramatic increase, from $135 million in 2002 to $223 million in 2009. “It has been an area of positive job growth, even during the tougher financial times,” she says. Halvorsen believes the bioscience industry helps strengthen the state’s economy. “It has added high waves of jobs. If you look at the average wages, in bioscience it’s $57,000 or better, which, compared to the private sector, is about 36 percent higher,” he says. “It’s an industry that is growing fast, and it can help diversify our economy. During an economic downturn, this diversity of jobs can help provide stability.” In fact, during the 2008-2009 recession, when other sectors were being hit hard and scores of businesses were shutting their doors, the bioscience industry just got stronger. Points out Koerber-Walker, “During the recession, overall jobs were down by 12 percent, but bioscience went up by 7 percent.” “We survived,” is the way Ed Koeneman puts it, talking about his company Kinetic
J u ly / A u g u s t 2011
miraculously and with an enormous amount of effort from many people, we have arrived at that destination and able to become a profitable company that may help millions of people,” he said, explaining the company used the TSX Venture Capital Pool Company Program, a unique listing vehicle offered exclusively by TSX Venture Exchange through which a shell company is created to provide seed capital. What Does the Future Hold? Looking ahead, one thing seems to be abundantly clear: The State of Arizona must not lose the momentum it has going in regard to the biosciences industry. If anything, the experts agree, it needs to pick up speed. For Guerra, the way for Arizona to accelerate its activities in the biosciences is to focus on ways to create new biotech and medical companies, in spite of budget cuts to education. “I believe we have the technology, know-how and expertise to do this. We need to take the limited resources that are available and utilize them to take research outcomes
into commercial development,” she says. “This will require collaboration between the government, academic institutions, private sector and organizations such as BioAccel.” Cutting education could have a negative effect on the industry because, Koerber-Walker explains, each establishment employs more than just scientists with Ph.D.s. “We do have our share of those, but we need all kinds of people and professions to run the companies. Labs need technicians to run tests, and every business needs great marketing and a human resources department. Biosciences needs all things that cross many different industries, and they all need the skills and training to do the job.” She sees Arizona Bioindustry Association playing an important role in this regard by working closely with other foundations as well as universities, colleges, cities and towns, explaining what types of workers the industry will need and making sure there will be enough students to fill future available jobs. Koeneman admits that budget cuts to education concern him as a parent but, as a business owner, he’s not as worried about what lowered funding might do to the students coming out of college. “Universities are still cranking out great graduates and the in-state universities are doing a great job,” he says. “There is a lot of opportunity for us to hire qualified applicants.” In 2002, the Flinn Foundation commissioned Battelle, recognized as the world’s largest nonprofit research and development firm with expertise in the development of regional hightech economies, to assess the bioscience metrics in Arizona, and help the foundation come up with a comprehensive 10-year action plan to build a competitive bioscience base over the ensuing decade. “We have started to build a reputation that Arizona works collaboratively, and that we want to work together. We all have different strengths, and we can work more collaboratively and more efficiently to advance in areas like cancer, neurosciences and bioengineering,” says Halvorsen. “By not being everything to everybody but, instead, focusing on what we’re good at, we’ve become known as one of the fastest-growing bioscience states.” Algae Biosciences algaebio.com Arizona Bioindustry Association azbio.org BioAccel bioaccel.org Flinn Foundation flinn.org Kinetic Muscles, Inc. kineticmuscles.com
O n t h e Ag e n D a
July & August 2011
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.
Greater Phoenix Chamber of Commerce
Arizona Technology Council and Business Marketing Association
Town Hall: The Next Mayor of Phoenix
2011 Marketing Technology Summit Thurs., Aug. 25 — 12:30p – 6:30p
Mon., Aug. 15 — 5:45p – 8:00p The city’s first competitive mayoral race since the early 1980s, the upcoming Phoenix mayoral election has not two, not three, but several strong candidates vying for the position. The Greater Phoenix Chamber of Commerce has partnered with KPHO — CBS 5 to bring the candidates together for a timely debate heading into the final two weeks of the campaign. Held at Phoenix Symphony Hall on Aug. 15 and expected to attract a full audience to witness the debate in person, “Town Hall: The Next Mayor of Phoenix” will also be broadcast — and streamed — live with no commercial interruptions from 7 p.m. to 8 p.m. as well rebroadcast several additional times. KPHO Phoenix anchors Sean McLaughlin and Catherine Anaya will moderate the debate. “We think it’s important to engage the public,” says Michelle Bolton, the Chamber’s vice president of Public Affairs and Economic Development, emphasizing the event is open to all, not just Chamber members. She adds, “It’s a pivotal election,” and notes that not only is the election important for the City of Phoenix, but that the Phoenix mayor is often regarded as a regional figurehead. The Chamber is encouraging the general public to submit questions via Facebook and Twitter, and will select questions from that pool to pose to the candidates. The event is free. However, seating is limited, so preregistration is advised. For more information and updates on candidates confirmed to participate, please visit the Greater Phoenix Chamber of Commerce’s website. —RaeAnne Marsh
Bringing together the leaders and innovators in the industry for a unique focus on business and technology marketing, the once-ayear Marketing Technology Summit will be held at the Hilton Scottsdale Resort & Villas on Aug. 25. Attendees will gain new perspectives and be empowered with applicable tools to help drive marketing success from the two panel presentations. Speakers for the panel on innovations in digital marketing will be Bob Rinderle, GE Healthcare’s global digital marketing communications manager, and Laura M. Ramos, Xerox Corporation’s vice president of industry marketing and global document outsourcing for North America. Speakers for the panel on marketing automation will be Brian E. Kardon and Greg Head, chief marketing officers for Eloqua and Infusionsoft, respectively. John Kennedy, vice president of corporate marketing for IBM, will be the event’s keynote speaker. The summit, which typically attracts 300-400 senior-level marketers, will also include an expo at which member organizations of Arizona Technology Council and Business Marketing Association will showcase numerous products and services geared toward helping businesses shape their future marketing plans. —RaeAnne Marsh Arizona Technology Council aztechcouncil.org
Greater Phoenix Chamber of Commerce phoenixchamber.com
Business Marketing Association marketing.org
Notable July/August Dates Photo: Business Marketing Association
Mon., July 4
Tues., Aug. 30 Phoenix Mayoral Election Agenda events are submitted by the organizations and are subject to change. Please check with the organization to ensure accuracy. www.inbusinessmag.com.
I n B u s i n e s s Ma g a z i n e
J u ly 2 0 1 1
AHWATUKEE FOOTHILLS CHAMBER OF COMMERCE Red, White and Boom!
Sun., July 3 6:00p: gates open; 9:00p: fireworks begin
Live music by The Hype, Hot Dog Eating Contest, Bike Parade, Jamba Juice, Great Food, Beer, Wine and Beverages, Face Painting, Hula Hoop Contest and much more! Free Ahwatukee Country Club 12432 S. 48th Street, Phoenix ahwatukeechamber.com
ARIZONA POWER NETWORKING AZ Social Networking — Networking @ 9:05 Thursday, July 21 9:05a – 10:30a
Be prepared to stand up and do your elevator pitch and don’t be surprised if feedback and/or questions are posed. Free Aloft Hotel, Tempe 951 E. Playa del Norte Drive, Tempe azpowernetworking.com
ARIZONA SMALL BUSINESS ASSOCIATION EASYSPEAK — Influencing for Results
Thrus., July 14 – Fri., July 15 8:30a – 5:30p
A two-day workshop for professionals looking to increase their ability to influence people through communication, whether that is through public speaking, small groups or one-on-one conversations. Presented by Christine Muldoon, CM Communication International. Breakfast and lunch will be provided. $550 ASBA’s Business Education Center 4600 E. Washington Street, Phoenix asba.com/events
Workshop — Tips for Profitable Prospecting Thurs., July 21 3:00p – 5:00p
Learn ways to identify and cultivate sales opportunities and how to build an effective prospect/project pipeline to maximize these sales throughout the year. Presented by Mike Leeds, Pro Sales Coaching, LLC. Members: $35; non-members: $55 (Optional: additional $10 to pre-purchase Sales Tips in Under 140 Characters. Book will also be available at the door for $15.) ASBA’s Business Education Center 4600 E. Washington Street, Phoenix asba.com/events
J u ly / A u g u s t 2011
ARIZONA TECHNOLOGY COUNCIL 2011 Partnering Conference Thurs., July 28 1:00p – 6:00p
The signature event known for bringing Arizona’s technology community together to forge new partnerships. AZTC/AZBio members: $35, presenters: $450; non-members: $50, presenters: $550 Scottsdale Hilton Resort & Villas 6333 N. Scottsdale Road, Scottsdale aztechcouncil.org
BUSINESS PROFESSIONALS Breakfast Mixer Thurs., July 14 8:30a – 10:00a
This monthly networking breakfast combines a unique technical setting with a valuable opportunity to mix, mingle and share ideas with local business professionals. Each month a invited guest speaker presents on a timely business-related subject. Starbucks coffee and a light continental breakfast is served. Free The Microsoft Store Scottsdale Fashion Square — Nordstrom wing (480) 308-0800
CENTRAL PHOENIX WOMEN Luncheon
Thurs., July 14 11:30a – 1:00p
“Cooking with Chef Toevs & Business Entertaining Tips” $75 The Ritz Carlton 2401 E. Camelback Road, Phoenix centralphoenixwomen.org
NORTH SCOTTSDALE CHAMBER OF COMMERCE Open House — Vino 100 Thurs., July 28 5:00p – 8:00p
Join us at Vino 100 as we sample some of the best wine in the Valley. Free Vino 100 30835 N. Cave Creek Road, Phoenix (480) 502-8466
REAL ESTATE PROFESSIONALS The Technical Edge: Networking for Real Estate Professionals Mon., July 25 4:00p – 6:00p
Join us at the Scottsdale Microsoft Store for a valuable networking opportunity for professionals within the real estate community. This month’s
guest presenter will be Kurtis Bieber, CEO of New Technology Sources and National Trainer. Mr. Bieber will present on the utilization of Outlook on your mobile phone in order to facilitate tasks needed to be accomplished “on the go.” Refreshments and light appetizers served. Free The Microsoft Store Scottsdale Fashion Square — Nordstrom wing (480) 308-0800
SURPRISE REGIONAL CHAMBER OF COMMERCE 29th Annual 4th of July Celebration Mon., July 4 4:30p – 9:00p
Free Surprise Stadium 15850 Bullard Avenue, Surprise Travis Ashby, (623) 222-2263
Arizona Authors Weekend Fri., July 15 – Sun., July 17 10:00a – 7:30p
Public is invited to a free AZ Authors Weekend, hosted by Gifts To Go. Authors will engage in discussions, conduct readings and book signings and make their works available for purchase. Free Barnaby Street Shoppes 11340 W. Bell Road, Surprise Tammy Fraser, (602) 403-0646
Crocodile Rock: A Floribbean Affair Fri., July 22 5:00p – 9:00p
This annual summer event will rock your socks! There will be networking games, silent auction, casino games (for fabulous prizes — no cash play), Beachcombers (Diamond Dig), Tacky Tourist Costume Contest, entertainment and dancing and, of course, scrumptious Florida-Caribbean food. $35; pre-registration and pre-payment required Sun City Grand 19753 N. Remington Drive, Surprise Cheryl Street, Cstreethome2@aol.com
Business Education Seminar Wed., July 27 8:30a – 9:30a
Business Education Seminar Series. In addition to great training, there will be a continental breakfast, prizes given away and great networking before and after the presentation. Free; registration required. Ultrastar Cinemas 13649 N. Litchfield Road, Surprise Mary Orta, (623) 583-0692
TEMPE CHAMBER OF COMMERCE Annual Luncheon Thurs., July 21 Noon – 1:30p
At this exciting event, we review the past year’s accomplishments and share our vision for the upcoming year. We honor those who have worked with us over the past year and introduce the incoming Board of Directors and committee chairs. Our keynote speaker is Andrew Walter, ASU football star quarterback (2001-2004) and former member of the Oakland Raiders and New England Patriots. Members: $50; non-members: $65; VIP table of 10: $500 Fiesta Resort Conference Center 2100 S. Priest Drive, Tempe tempechamber.org
WEST VALLEY WOMEN 6th Anniversary Luncheon Tues., July 12 11:30a – 1:00p
$35 Skye Fine Dining 16844 N. Arrowhead Fountain Center Drive, Peoria westvalleywomen.org
WOMEN IN BUSINESS Breakfast Social Tues., July 26 8:30a – 10:00a
Each month, dynamic female business professionals unite within a unique technical setting and mix, mingle and share ideas. An informative guest speaker presents on a pertinent topic. Starbucks coffee and a light continental breakfast is served. Free The Microsoft Store Scottsdale Fashion Square — Nordstrom wing (480) 308-0800
WOMEN OF SCOTTSDALE Spotlight Your Business Fri., July 15 11:30a – 1:00p
Monthly Meeting $35 The Westin Kierland Resort and Spa 6902 E. Greenway Pkwy., Scottsdale womenofscottsdale.org
ACG ARIZONA Annual Summer Social Tues., Aug. 9 5:00p – 8:00p
Members/sponsors: $35; nonmembers: $55; at-the-door (everyone): $65 Bonfire Grill and Bar 7210 E. 2nd Street, Scottsdale acg.org/arizona
AHWATUKEE FOOTHILLS CHAMBER OF COMMERCE Marketing Think Tank Tues., Aug. 30 Noon – 1:00p
Free Ahwatukee Chamber 3840 E. Ray Road, Phoenix ahwatukeechamber.com
ARIZONA POWER NETWORKING AZ Social Networking – Networking @ 9:05 Thurs., Aug. 18 9:05a – 10:30a
Bring your business cards, flyers, promotional products and anything you have to share with the group who you are and what you do. Be prepared to stand up and do your elevator pitch and don’t be surprised if feedback and/ or questions are posed. Free Aloft Hotel, Tempe 951 E. Playa del Norte Drive, Tempe azpowernetworking.com
ARIZONA SMALL BUSINESS ASSOCIATION Workplace Safety for Small Businesses Tues., Aug. 16 8:00a – 11:00a
Participants gain an understanding of OSHA and learn how they can work with OSHA to prevent or reduce injuries and illnesses in their workplaces. ASBA members: $10, non-members: $30 ASBA’s Business Education Center 4600 E. Washington Street, Phoenix asba.com/events
Workplace Safety for Small Businesses Thurs., Aug. 18 8:00a – 11:00a
Participants gain an understanding of OSHA and learn how they can work with OSHA to prevent or reduce injuries and illnesses in their workplaces. ASBA members: $10, non-members: $30 221 S. Marina Street, Prescott asba.com/events
Arizona Referral Success 101 Fri., Aug. 26 8:00a – 10:30a
CENTRAL PHOENIX WOMEN Luncheon
Tactics to use to increase your referral business and networking to create more referrals. ASBA and BNI Arizona members: free; non-members: $99 ASBA’s Business Education Center 4600 E. Washington Street, Phoenix asba.com/events
Wed., Aug. 17 11:30a – 1:00p
ARIZONA TECHNOLOGY COUNCIL
REAL ESTATE PROFESSIONALS
Lunch and Learn: Information Security Management
The Technical Edge: Networking for Real Estate Professionals
Presented by Sustaining Edge Solutions, Inc. Topics include benefits of effective ISMS and alignment of ISO 27001 with other recognized standards. Members: free; non-members: $15 Telesphere 9237 E. Vía De Ventura, Scottsdale aztechcouncil.org
Join us at the Scottsdale Microsoft Store for a valuable networking opportunity for professionals within the real estate community. Each month a guest speaker presents on a relevant topic relating to the use of technology in facilitating the everyday tasks of real estate professionals. Refreshments and light appetizers served. Free The Microsoft Store Scottsdale Fashion Square — Nordstrom wing (480) 308-0800
Tues., Aug. 9 11:30a – 1:00p
2011 CEO Retreat
Mon., Aug. 15 – Tues., Aug. 16 7:00a – 8:30p, 11:00a – 3:30p
Annual event that gathers CEOs, presidents and business owners for golf, networking and panel discussions. Members: $350, with golf: $500; nonmember: $450, with golf: $600 (Cost does not include room rate) Enchantment Resort 525 Boynton Canyon Road, Sedona aztechcouncil.org
2011 Marketing Technology Summit Thurs., Aug. 25 12:30p – 6:30p
Business Marketing Association co-hosts panel discussion, keynote speaker, sponsor expo and other great presentations. AZTC/BMA members: $35; non-AZTC/BMA members: $50 Scottsdale Hilton Resort & Villas 6333 N. Scottsdale Road, Scottsdale aztechcouncil.org
BUSINESS PROFESSIONALS Breakfast Mixer Thurs., Aug. 11 8:30a – 10:00a
Laurena Ketzel-Kerber, MBA, PMP, Licensed CHB, Mentor for S.C.O.R.E and business Owner, will present on “Finding the Money and Resources for Growing your Business” — how to utilize local and national resources, most of which are free or low cost, for consulting, mentoring and growing your business. Starbucks coffee and a light continental breakfast is served. Free The Microsoft Store Scottsdale Fashion Square — Nordstrom wing (480) 308-0800
Nora Hannah presents “Experience Matters.” $75 The Ritz Carlton, Phoenix 2401 E. Camelback Road, Phoenix centralphoenixwomen.org
Mon., Aug. 29 4:00p – 6:00p
SCOTTSDALE AREA CHAMBER OF COMMERCE Sterling Awards Workshop Wed., Aug. 17 4:30p – 6:00p
Prospective Sterling applicants are invited to join us for an in-depth, hands-on workshop outlining the best methods for completing the Sterling application. Free Scottsdale Chamber 4725 N. Scottsdale Road, Scottsdale Cari Woods, (480) 355-2720
SURPRISE REGIONAL CHAMBER OF COMMERCE Nx Level Entrepeneurial Training Seminar Tues., Aug. 23 4:00p – 7:00p
NxLeveL is an SBDC signature course designed to provide hands-on, common sense skills that help people start and grow a business. Topics include planning and research, legal structure, marketing, managing your money, negotiation skills and managing growth. This is a 12 week program. $200 tuition for program, 50% discount for members Chamber Conference Center 16126 N. Civic Center Pkwy., Surprise email@example.com
TEMPE CHAMBER OF COMMERCE Hot Topics and Lunch: Special Presentation by Tempe Mayor Hugh Hallman Thurs., Aug. 18 11:30a – 1:00p
Tempe Mayor Hugh Hallman shares his perspective on the social and economic climate of Tempe at this special luncheon. He will discuss the present business environment and share his vision for the growth and future of the city. The public and business community are welcome to attend. Sponsored by SRP. Members: $25; non-members: $35 Location TBD tempechamber.org
Annual ASU Football Kickoff Luncheon Fri., Aug. 26 11:00a – 1:30p
The Tempe Chamber of Commerce, ASU Alumni Association and the Sun Devil Club are proud to present the 11th Annual Sun Devil Football Kickoff Luncheon. Jumpstart the ASU football season with Head Coach Dennis Erickson, ASU Athletics Director Lisa Love, Sun Devil football players, coaching staff, Sparky and other special guest speakers, including voice of the Sun Devils Tim Healey. Reserved seats: $60; table of 10: $600; table of 10 with a coach or player (9 guests): $700 Tempe Mission Palms Hotel 60 E. 5th Street, Tempe tempechamber.org
WEST VALLEY WOMEN Fabulous Footwear Contest Tues., Aug. 2 11:30a – 1:00p
$35 Skye Fine Dining 16844 N. Arrowhead Fountain Center Drive, Peoria westvalleywomen.org
WOMEN OF SCOTTSDALE Spotlight Your Business Fri., Aug. 19 11:30a – 1:00p
Monthly meeting. $35 The Westin Kierland Resort and Spa 6902 E. Greenway Pkwy., Scottsdale womenofscottsdale.org
Please confirm, as dates & times are subject to change.
I n B u s i n e s s Ma g a z i n e
Investing in Community by Alison Stanton
Ronald McDonald House: Easing Stress for Families of Ill Children The Ronald McDonald House of Phoenix provides temporary housing for families who have come to the Phoenix metropolitan area to get medical care for their children. According to executive director Nancy Roach, 90 percent of the families are from the state of Arizona, 10 percent are from out-of-state and, last year, guests from seven foreign countries called the nonprofit organization their home away from home. “They can stay a night or a year,” she says, adding that seven full-time and 13 part-time staffers help run the properties. “Someone is on site 24/7, 365 days a year to help the families.” The self-owned-and-maintained properties can house up to five family members per room, and the organization tries to accommodate larger family groups in extra rooms when available. Between 50 and 75 volunteers regularly help out with services, such as the dinner
program, a nightly meal that is served to families staying at the facility. The nonprofit is 100-percent community supported and derives its $1.6 million budget from individual and corporate donations, foundations, United Way donor designations and the canisters found in McDonald’s restaurants. Says Roach, “The canisters bring in $400,000 a year and are our biggest source of revenue, but we are not supported by McDonald’s restaurant.” Ronald McDonald House of Phoenix rmhcphoenix.com
■■ The facility has a total of 63 rooms in two separate locations. ■■ Since opening in 1985, the Ronald McDonald House of Phoenix has had more than 32,000 family visits. ■■ Families are asked to donate $15 a night, but no one is ever turned down if they cannot pay. ■■ It costs the nonprofit $59 a night to host a family. ■■ McDonald restaurants’ owners/operators are very involved with Ronald McDonald Houses, but the nonprofits are not part of any McDonald’s restaurants organization.
The Wellness Community: Hope and Support for Those Touched by Cancer comes through donations from individuals, corporations and foundation gifts. Programming, which takes the bulk of the funds, ranges from age-appropriate, lifeenhancing social activities to the more than 130 educational programs offered monthly and facilitated by qualified professionals. The Wellness Community twcaz.org
■■ Twelve paid staff members, 10 part-time professional facilitators and 200-plus volunteers help keep The Wellness Community running smoothly. ■■ In the last five years, the nonprofit has seen a more than triple increase in the number of people who come to the facility, with 16,000 expected this year. ■■ Programs for children and teens are among the most highly attended events. ■■ The facility includes a 2,400-square-foot historic home that is used for both program meetings and administrative offices. ■■ The Wellness Community recently purchased an adjoining acre of property, which will be used for an expanded parking lot and a 4,000-square-foot building.
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.
J u ly / A u g u s t 2011
Photos: Ronald McDonald House (top); The Wellness Community (bottom)
In March of 1999, The Wellness Community of Central Arizona welcomed its first cancer patients and their friends and family members. Since then, thousands of people of all ages have arrived at the historic 1908 bungalow in Downtown Phoenix looking for answers and support, all at no cost. According to executive director Paula Hardison, the chief goal of the nonprofit organization is to make sure every person who comes to The Wellness Community leaves feeling empowered and hopeful. “What The Wellness Community is committed to is ensuring that anyone whose
life is touched by cancer has access to the emotional support, education and non-medical services that help them through their cancer journey,” she says. “Being with others is a major source of recovery and healing. People understand and learn from one another and get hope from each other. This is the ‘community’ part of The Wellness Community.” The Wellness Community has an annual operating budget of $1.3 million, which
We Value What We Own by Mike Hunter
eWriter Tablet Takes You Ticket Sales Companies: Paperless Entertain or Impress Going paper-free is something many offices are looking to in an effort to save money, manage files and become environmentally responsible. Ricoh, a name in office machines, is the latest to come out with what is essentially a tablet — the eQuill. The eWriter package includes the tablet and the software to make this device work much as paper. Forms are preloaded and the user is able to fill in data just as with the old-style clipboard. Healthcare, police, insurance and other “common customer forms” are completed, signed, faxed, e-mailed or filed away without the use of paper. Like many of the tablets, the eQuill has Wi-Fi, is 3G and promises a long battery life. The difference here is the software, which is designed with repopulated forms and an ability to manage notes and enhance digital workflow. Various workflow tools make arranging and storing documents easy and assists in relaying data to the central server or desktop computer. Files and forms may be sent as encrypted data for privacy and may be directed to the authorized personnel or departments for whom the information is meant. PDF files can be exported. The device is designed to work with medical records and other formats. The Ricoh eQuill will be available this summer and will retail for less than $500.
The power of having that great seat at a sporting event or concert can be a big asset when entertaining clients. Sure, a nice meal or impressive gift will do, but handing off a great set of tickets to a top event will lock in a client for life. Here are some local ticket companies that know our market best: AZ Tickets — For more than two decades, AZ Tickets has been serving customers and providing tickets to top local and area events. An independent service, it will provide best seats for sporting, concert and theater events in Arizona. 143 W. McDowell Road, Phoenix (602) 254-3300 aztickets.com Tickets Unlimited — Based in Scottsdale, Tickets Unlimited buys and sells tickets for everything from the Valley’s biggest events to smaller, local venues. It provides convenient, secure and reliable online access to the best premium tickets. 7116 E. 1st Avenue, Scottsdale (602) 840-2340 ticketsunlimitedinc.com Ticket Exchange — Since 1983, Ticket Exchange has been providing hard-to-find seats for local and national events. Sporting events, premium theater seats and the biggest concert acts are a specialty for this customerfriendly establishment. 3714 E. Indian School Road, Phoenix (602) 254-4444 ticketexchangeusa.com
Photo: Ricoh (top)
Key Man Insurance: The 'Key' to Business Longevity Key man insurance, also known as key person insurance, is coverage that will protect a business owner’s most prized asset: the company. In the event of the untimely death or disability of the business owner, a key employee or executive, this insurance will give peace of mind that the business can continue operation in the near term or long term. Policies are taken out by the business to compensate that business for financial losses that may arise from the death or even extended incapacity of the member of the business specified on the policy. “Protecting your company (and your family) is job one for any business, and key person insurance will mean that your company will not be disrupted in the event of a catastrophic event,” says Hank Mackey, president of H.A. Mackey & Associates, an insurance broker
that specializes in working with businesses. “It is an essential part of your business insurance plan.” Many think this insurance is simply a life insurance policy, but a strong policy will include key man insurance and key man disability on key employees and executives. The policy’s term does not extend past the period of the key person’s usefulness to the business. An insurance professional can help a business owner find a policy that best suits the company’s needs. H. A. Mackey & Associates hamackey.com
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Meals that Matter
Oh, that Happiest of Hours
There is lunch hour, rush hour and happy hour. Lunch is a necessity, rushing during rush hour is a bore, but happy hour is all about you. Enjoy discounted drinks and food, an establishment that’s happy to serve you and your friends and colleagues. Live it up at these happy hour hot spots …
5th and Wine — Scottsdale
If wine by the glass is your happy hour, then this Old Town Scottsdale new standard is for you. From 3 p.m. to 6 p.m., great prices on bruschetta, calamari, various paninis and sandwiches. Stay to enjoy the ambience of this quaint, contemporary eatery and wine bar. 7051 E. 5th Avenue (480) 699-8001 5thandwine.com
Black Chile Mexican Grill — Phoenix (pictured)
Central to Your Noontime Needs
New to the Biltmore Fashion Park, this modern take on Mexican fare offers more than 125 brands of tequila and a half-off menu during happy hour, which is from 3 p.m. to 7 p.m., Monday through Friday. 2502 E. Camelback Road (602) 955-5593 blackchile.com
by Mike Hunter
Parc Central 15323 N. Scottsdale Road, Scottsdale (480) 907-5333 parccentralrestaurants.com
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Rúla Búla Irish Pub — Tempe
A true Irish pub is distinguished by its “craic,” an Irish term referring to positive interaction among people through conversation, stories and music — and this is the most authentic of Irish pubs. Happy hour is seven days a week from 2 p.m. to 7 p.m. (6 p.m. on Sundays). Make it a Guinness … 401 S. Mill Avenue (480) 929-9500 rulabula.com
SanTan Brewing Company — Chandler
Amazing beer, live acoustic entertainers and a classic brew-pub experience make this East Valley joint a “no fail” happy hour. Get $3.75 pints, $4 house wine and $1 off everything behind the bar Monday through Friday, 2 p.m. to 6 p.m. 8 S. San Marcos Place (480) 917-8700 santanbrewing.com
Photos: Parc Central (left); James Ramsay Photography (right)
Inspired by Central Park-style eateries and boasting black-and-white views from the namesake park that make guests feel as though they are a part of this Manhattan landmark, the new eatery in Scottsdale Quarter is a lunch spot that will entice diners to eat and take a trip to New York City. Not to be confused with the Central Avenue mall of old, this Parc Central will not be easy to forget. Food and ambience combine to make this the perfect place to go for lunch with clients, friends or the boss. It is a unique venue in that its concept is based on the well-known eateries surrounding Central Park in New York. Under Chef Chad Burnett, a graduate of Le Cordon Bleu and featured on the Food Network, this jewel features American cuisine with high-quality ingredients influenced by international flavors. Start with the Prime Beef Carpaccio with Kalamata olives and capers, placed over arugula and dressed with a Dijon vinaigrette. For a light, Manhattan-style bite, order the Parc Central Salad, which is field greens tossed with walnut-whole grain granola in a strawberry-brie dressing. A cheddar, jack cheese, double smoked bacon grilled cheese sandwich served with a plum tomato bisque is a favorite for that memorable lunch. But no one should miss trying the Grilled Lobster Lasagna. This dish is a freeform "salad" of lobster, fontina, baby spinach and tomatoes jumbled with lasagna noodles and served with buerre blanc. A trip to Parc Central will inspire a feeling of having made a great midday excursion to central Manhattan.
MEMBER COMMUNIQUÉ July 2011 - October 2011
Message from the President An astounding percentage of Arizonans choose to volunteer for one or more nonprofits, and without their help, many organizations would be severely challenged in meeting their missions. A chamber of commerce is no different. The Scottsdale Area Rick Kidder Chamber of Commerce is blessed to have more than 200 volunteers working on behalf of the organization, their own businesses and the business community. These dedicated individuals spend countless hours welcoming guests at events, helping shape the community through committee work, assisting in designing and implementing programs that benefit their peers and providing ongoing support for the business community as a whole. More often than not these remarkable people go unrecognized or not thanked appropriately. The Scottsdale Area Chamber of Commerce tries to remember at every meeting and activity to thank our volunteers who do so much for us every day. We do not do enough, we know, and many of our volunteers derive such satisfaction from what we do that thanks are not always deemed necessary, but that should never stop us from doing so whenever we can. We honor many of our volunteers every year with our Business Volunteers Awards. A committee of volunteers sifts through countless nominations in multiple categories, and it is our pleasure to recognize those honorees in this issue. We recognize that behind each honoree lie a couple of hundred more who labor more in the shadows, and we thank them with all our hearts.
Rick Kidder, President/CEO
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Downtown Renaissance “Downtown … Things will be great when we’re Downtown .…” The words of Petula Clark, which rose to number one in the charts in 1965, still ring true. There is something magical about a downtown, something that energizes, creates a buzz, reveals excitement around every corner and that fills one’s heart with dreams of infinite possibilities. In a place where most people grew up elsewhere but migrated to this place of beauty and livability, our relationship with Downtown Scottsdale may be a little bit different, but it should be a view equally rife with the excitement of old and new, young and not quite so young and constant exciting change. There is a magic to Downtown Scottsdale, a magic framed by a strong desire to hold on to that which is good while also advancing at great speed toward an evolving and prosperous future. Downtown Scottsdale caters to every kind of demographic, with districts and pockets of energy that appeal to the traditional and the avant garde. Dining and nightlife abound and a burgeoning residential population has helped bring life to our Downtown core at all hours. Downtown’s success is and will be in part due to the diversity of uses and the diversity of audiences it addresses. Where there are many types of use, there is also the inevitability of conflict arising. While all agree that Downtown must evolve and mature as a live/work/play environment, sometimes living and playing create challenges for each other. Late night noise from the very active club scene has prompted a compromise noise ordinance on which the Chamber worked mightily to strike a balance between the needs of residents and businesses. Growth sometimes brings conflict and disagreement. The city and its residents and stakeholders have come to several important conclusions that have truly helped Downtown become a more vibrant economic center for Scottsdale: ■■ We refuse to allow the core of Downtown to look like every other Downtown. All areas include an overlay allowing residential by right. The core must remain low-scale and the goal is to maintain independent, local businesses over national chains. ■■ Height and density belong at its edges, not its center. Anchored by Scottsdale Fashion Square and Scottsdale Healthcare, height and density are limited to the periphery and the city council, in its wisdom, embraced an infill incentive district to allow greater height and amended development standards in those areas that surround our Downtown. Continues on pg. S@W 07
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2011 Business Volunteer Award Winners On Tuesday, May 24, Kurt Zitzer, Chair of the Scottsdale Area Chamber of Commerce Board of Directors and an attorney with the firm Meagher & Geer, and Stephanie Whyte from APS announced this year’s winners of the annual Business Volunteer Awards. APS has been the proud sponsor of the Chamber’s Business Volunteer Awards for five years, recognizing the value of volunteerism within the business community. For all but two awards, the Chair’s Award and the Unsung Hero Award, a committee of volunteers receives nominations in each category from throughout the Chamber membership and staff. Those nominations are
reviewed and ultimately sent in the form of recommendations to the Chair of the Board of Directors for acceptance and presentation. In his remarks, Kurt Zitzer sought not only to honor the recipients of this year’s awards but also to underscore the importance of each and every volunteer to the operation and stature of the Chamber. “Every volunteer, including all in this room and many, many others who are not with us today, deserves recognition and gratitude for the fine work they do. Our volunteers make the Chamber strong and vibrant and help make Scottsdale a better place to live and work.”
Eric Larson, AVB Development Partners
Mark Eberle, Henry & Horne
This year’s recipient is a member who has demonstrated considerable and consistent support and leadership of the Chamber over a long period of time and who has made significant positive impact within the community. Eric Larson is a member of the Executive Committee, Chair-elect of the Chamber Board, former chair of Economic Development Advisory Council, Chair of the Board Development Committee, and an active volunteer with the Arizona Association for Economic Development and the Southwest Autism Research & Resource Center (SARRC). Thank you and congratulations Eric! The Legacy Award honors a Scottsdale Area Chamber of Commerce member who has risen above the call of duty over a significant number of years, contributing not only to the Chamber, but to the community at large. Previous honorees include Art DeCabooter, Eileen Rogers, Wendy Springborn-Pitman, Mark Eberle, Dale Fingersh, Tom Sadvary and Virginia Korte.
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This year’s recipient has demonstrated remarkable dedication to the Chamber and to its mission. Mark is a realistic man and an eternal optimist at the same time, always taking on more than he should to support the Chamber. He has seemingly served for generations as the Chamber’s treasurer, always re-upping when he sees a need. He works tirelessly to make certain that the Partner Council experience is the best it can be. Thank you and congratulations Mark! The Segner Award celebrates the impact of an outstanding Chamber member. Named after the Chamber’s first board chairman, Wesley Segner, the Segner Award honors those who have followed in his legacy of leadership, community stewardship and active contributions to the success of the Chamber. Previous honorees include John Avianantos, Curt Smith, Mike Horsman, Dale Fingersh, Don Matheson, Eric Larson, Steve Helm, Angela Creedon and Marion Kelly.
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“Every volunteer… deserves recognition and gratitude for the fine work they do. Our volunteers make the Chamber strong and vibrant and help make Scottsdale a better place to live and work.” Rising Star Award Bryce Lloyd, FirstBank This year’s recipient has stepped up and asserted himself into a leadership position by chairing the Chamber’s Economic Development Advisory Council for the first time. In these challenging times, his is a cool head and someone who always says “Yes” when called upon. Thank you and congratulations Bryce! The Rising Star Award recognizes the accomplishments of promising new leaders whose volunteer spirit contributes to the success of the Chamber and the community. Previous honorees include Judy Egan, Mike Ryan, Thaine Fischer, Michael Famileti, Geoff Beer, Michele Yates, Jennifer Bongiovanni-Karas, Holly Schor and Andrew Bourne.
The Dale B. Fingersh Volunteer of the Year Award Andrew Chippindall, Hotel Valley Ho Each year, the Chamber awards an outstanding volunteer as Volunteer of the Year. Generally awarded to someone not serving on the Board of Directors, the Volunteer of the Year is presented to a member who time and again gives his or her time or resources to help the Chamber achieve its goals. This year’s recipient has hosted Chamber events either at no cost or at substantially below-market rates, has been an active member of both Economic Development Advisory Council and Public Policy Advisory Council, and helped broker a compromise on behalf of his industry in the city’s new noise ordinance. Thank you and congratulations Andrew! Renamed this year in honor of the Chamber’s “serial volunteer,” Dale B. Fingersh, the Volunteer of the Year Award recognizes an outstanding volunteer for his/her dedication, commitment, and service to the Chamber. Previous Ambassador of the Year honorees include: Karen Loftus, Don Scher, Marc Paquette, Laureen Leston and Mary Christmas.
The Unsung Hero Award Sergio Dabdoub, SurgeDesigns AZ The committee reviewing nominations for the Business Volunteer Awards created a new award, the Unsung Hero award, put forward by the committee itself, only to be awarded when an extraordinary individual surfaces. This year the committee offered up a recommendation for an individual whose work we see every day, likely without ever knowing who was behind it. He designed the Chamber’s logo and indeed all of our other logos, including
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Business After Hours, Champions Breakfast, Partner Council, Sterling Awards, BVA, and the First Friday Airpark Breakfast. His paintings adorn the walls of the Chamber, and he is omnipresent as the Chamber’s photographer at every significant event. To help the Chamber he does all of this at no charge and too often without attribution. Thank you and congratulations Sergio! Presented in 2011 for the first time, this award recognizes an outstanding individual whose significant volunteerism is largely unknown or unrecognized by the membership of the organization. A recommendation for a recipient comes from the Business Volunteer Awards committee to the Board Chair for approval.
Chair’s Award Tom Sadvary, Scottsdale Healthcare Brad Casper, (former CEO) Henkel Consumer Products It falls within the exclusive purview of the Chair each year to present the Chair’s Award recognizing outstanding commitment to the Chamber in such a way that the entire community is changed for the better by the recipient’s actions. This year, Chair Kurt Zitzer chose to honor two individuals whose dedication to the Chamber and to the community have been both conspicuous and at the same time largely unrecognized. It has long been a dream of Tom Sadvary to bring together the large employer leadership of Scottsdale into a forum that provides a unified voice and place for constructive dialogue centered on making Scottsdale a better place. He did so by convening the Executive Forum, a group of major employers and community stewards dedicated to community betterment. The second recipient, Brad Casper, practically went to work at the Chamber representing the Executive Forum, authoring a response to Next Steps Scottsdale and devoting countless hours to Scottsdale Forward, an inaugural event organized by the Executive Forum and convened by the Chamber. Thank you and congratulations to former Chamber Chair and longtime supporter Tom Sadvary, CEO of Scottsdale Healthcare and to Brad Casper, former CEO of Henkel Consumer Products. The Chairman’s Award is a special designation bestowed at the discretion of the Board Chair to one or more individuals who have contributed most to a successful year. Nominations are not accepted for this category. Previous honorees include: Ellen Andres Schneider, Linda Milhaven, Karen Wittmer, Leslie Nyquist, Kurt Brueckner, Mark Eberle and Dale Fingersh.
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Featured Members The Chamber membership represents a diverse mix of business and individuals. We are pleased to welcome a few of our newest members: Attorneys-At-Law
Legislature Adjourns Historic Session
Berk & Moskowitz Attorneys www.berkmoskowitz.com
The Arizona Legislature adjourned in April after adopting a mid-session budget and passing historic business friendly legislation. Many of the issues the East Valley Chambers of Commerce Alliance (EVCCA) advocated for years were realized at the close of the 2011 legislative session. Below are bills that were signed into law that will impact your business.
HB 2001 – Arizona Competitiveness Package
Commerce Bank of AZ www.commercebankaz.com
In addition to establishing the Arizona Commerce Authority and the Arizona Competes Fund, this bill includes a number of tax breaks for businesses that declares Arizona open for business.
Health Services & Home Health
HB 2619 – Unemployment Insurance; Special Assessment This bill places an assessment on businesses to pay off an Unemployment Insurance Trust Fund Loan. If the loan is not paid off by November 2012, Arizona employers lose a significant federal tax credit. With this bill, employers will pay $28 per employee in 2011 and $42 per employee in 2012 rather than paying substantially more over time.
HB 2616 – Workers’ Compensation; Controlled Substances HB 2617 – Workers’ Compensation; Settlement of Claims SB 1264 – Workers Compensation; Reasonable Accommodations
@ Home Health Care www.wellestra.com
Several workers’ compensation bills went through the legislature this year. From permitting the settlement of claims to addressing issues of on the job impairment amid medical marijuana implementation, these bills will hopefully keep Arizona’s workers’ compensation costs some of the lowest in the country.
The EVCCA worked closely with lawmakers on these and many other business bills throughout the session. The annual EVCCA Legislative Report Card is expected to be released in July.
Allied Waste Services Republic Services
For the entire membership directory, visit scottsdalechamber.com
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INFLUENCE The Scottsdale Area Chamber of Commerce is a strong and influential voice representing the business community on issues affecting quality of business and quality of life. Chamber members are offered numerous ways to get involved with and shape the community, including:
Partner Council Comprised of Scottsdale’s largest employers and most influential thought-leaders, this elite group of companies and business executives actively support the Chamber’s vision of building a vibrant and prosperous community. This investor group provides major support for our mission in the areas of business attraction, expansion and education, project and business advocacy, leadership development, public policy, economic development and the attraction and retention of talent.
Economic Development The Chamber’s economic development agenda focuses on areas that support projects, initiatives, partnerships, policy and an environment conducive to promoting competitiveness, growth and success for our region, workforce and employers. The Economic Development Advisory Council’s objective is to identify, discuss and create opportunities in the areas of business attraction, relocation, retention and expansion.
Public Policy The Chamber is the voice of the business community and guardian of the business climate, advocating on issues that govern our business environment and working to ensure Scottsdale remains an ideal city in which to live, play and do business. The Public Policy Advisory Council’s primary objective is to monitor, discuss and provide direction to the Chamber leadership regarding city council elections, local and state ballot propositions related to business and/or quality of life and emerging issues that are important to the growth and sustainability of Scottsdale.
Volunteer Advisory Councils & Committees As stewards of the Scottsdale community, our volunteer committees and advisory councils serve an important role providing discussion and action on issues important to Scottsdale, including economic development, business attraction and retention and workforce development. Additionally, members of the Chamber staff and board of directors actively represent the Scottsdale community by serving on community boards, commissions, task forces and panels.
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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News Bites Young Professionals & Seasoned Executives Meet to Learn from Each Other During Recent Scottsdale Area Chamber of Commerce Panel Discussion More than 100 young professionals and experienced executives heard and learned from six panelists at the recent Partner Council/GET Phoenix Breakfast presented by the Scottsdale Area Chamber of Commerce. The event was held at SkySong in Scottsdale Wednesday, May 18. The panelists representing the young professionals included Melissa
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Birling, Assistant to the Executive Director at ASU’s School of Human Evolution and Social Change; Erik Pedersen, the Divisional Vice President of AXA Advisors, financial advisors; and Aaron Spector, Associate Property Manager at Scottsdale Fashion Square. The panel of experienced executives included Jeff Boldizsar, Deputy Chief Executive Officer of Magellan Health Services of Arizona; Scott Nelson, Vice President of Development for Westcor; and Paul Townsley, President of Arizona American Water. GET Phoenix is a workforce and economic development initiative of the Scottsdale Area Chamber of Commerce. It is designed to create leadership and professional development opportunities for emerging leaders. Ann Seiden, the chair of GET Phoenix, can be reached at ann.seiden@swgas. com. Further information about GET is available at www.getphoenix.org.
Join our Groups on LinkedIn
View photos from our events on our flickr page: www.flickr.com/photos/ scottsdalechamber/sets
Scottsdale Area Chamber Hires Manager of Member Engagement The Scottsdale Area Chamber of Commerce is pleased to announce the addition of Audrey Groteboer as manager of member engagement. Audrey will focus on sales and engaging existing Chamber members and committees to grow the membership base and ensure the chamber is providing value, fulfilling the needs and exceeding the expectations of our members. Audrey comes to the Chamber with more than 20 years of experience in upper management, advertising, marketing and public relations. She was publisher of the award winning Rochester Magazine and general manager of Minnesota’s third largest newspaper, the Rochester Post Bulletin. Audrey is also an experienced business owner, owning Audrey’s Home Furnishings and Accessories in Rochester, Minn. While in Rochester, Audrey was extremely active in the Rochester Area Chamber of Commerce serving as the chair of the board of directors in 2008-2009.
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Check out our YouTube Channel: www.youtube.com/user/ scottsdalechamber
Connect with the Chamber on our Social Media sites
Get Chamber News and Events on Your Mobile Device Text the word Scottsdale to 99222 to receive a weekly update about upcoming Chamber events and breaking news.
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Continues from pg. S@W 01 ■■ D owntown Scottsdale must have appeal for many different audiences. Baseball fans rightly adore Scottsdale Stadium, spring training home to the San Francisco Giants. Sophisticated diners and arts aficionados have a vast array of options with upscale dining and the Scottsdale Center for Performing Arts, community theater options, and Scottsdale Museum of Contemporary Art right in Downtown. Night clubbers can party late into the night, and shoppers can shop till they drop all day long. Art galleries abound with works from western to wild. Downtown Scottsdale has something for everyone. It is not an area untouched by the recession, and there are disagreements about each new idea that surfaces, but it remains a place where ideas are surfacing, where projects are on the drawing board, where people live, learn, work, and play every day. Tourists come and go. Baseball fans revel or weep. Businesses try to grow and thrive and residents have a unique point of pride. If she was talking about Downtown Scottsdale, Petula Clark was right!
Board of Directors Executive Committee
Mike Binder Editor Scottsdale Area Chamber of Commerce
Board Chair Kurt Zitzer Meagher & Geer, PLLP Vice Chair Eric Larson AVB Development Partners
Rick Kidder President & CEO firstname.lastname@example.org 4725 N. Scottsdale Road, Suite 210 Scottsdale, AZ 85251 Ph 480.355.2700 fax 480.355.2710 www.scottsdalechamber.com
Immediate Past Chair Karen Wittmer-Jekel Treasurer Mark Eberle Henry & Horne, LLP
Public Policy Advisory Council Bill Heckman Heckman Marketing Associates Member Value Advisory Council Steve Helm Westcor / Scottsdale Fashion Square AT LARGE MEMBERS Jennifer Bongiovanni Karas, Green Ideas, Inc.
Economic Development Kurt Brueckner Advisory Council Titus, Brueckner, Levine & Bryce Lloyd Johnson, PC FirstBank of Arizona Emerging Issues Angela Creedon ASU Public Affairs Scottsdale Partnership Melinda Gulick DMB Associates
Judy Egan JRE Enterprises, LLC Dale Fingersh The Right Direction Rick Kidder Scottsdale Area Chamber of Commerce
© 2011 Scottsdale Area Chamber of Commerce. A publication of the Scottsdale Area Chamber of Commerce. For more information or to join the Scottsdale Chamber, please contact us at www.scottsdalechamber.com. Section designed by InMedia Company, LLC.
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N Scottsdale Road
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Infocus: Chamber Golf Tournament and Inspiring Women The 2011 Scottsdale Chamber Open was held May 16th at the beautiful Ancala Country Club. Our thanks to the host, sponsors and participants for a wonderful time! We would also like to share with you the inspiring array of women that have been featured recently at the Chamber’s Inspire series. These are truly remarkable women, and we are pleased to bring them to you!
M o n d ay, M ay 1 6 t h Ancala Country Club
1. Golfers prepare to begin the 2011 Scottsdale Chamber Open. 2. Kurt Brueckner wants YOU to play in next year’s tournament! 3. Great form was the order of the day. 4. It’s in the hole! 5. Kevin Sellers and First Fidelity Bank take the Corporate Challenge Cup! 6. TV’s Judge Lynn Toler signs her book after Inspire. 7. Debra Kuffner, Senator Michele Reagan, Councilwoman Suzanne Klapp, Tina Miller and Beth Burnett. 8. Chamber President and CEO Rick Kidder helps Phoenix Suns VP Ann Meyers-Drysdale pick a winner. 9. Yvonne Fedderson and Sara O’Meara. 10. Local First AZ Founder Kimber Lanning. 11. Dr. Connie Mariano shares a smile while signing her book. 12. Andrea Sturino is a winner at inspire! 13. The expert panel at Inspires’ Cancer Insider’s Roundtable.
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The Arizona Small Business Association (ASBA) is a dynamic and growing community dedicated to entrepreneurial development and business advancement. With a reach to more than 300,000 employees at nearly 5,000 member businesses, ASBA provides services at every stage of business growth. Offering resources to fulfill critical business needs, ASBA offers its members access to the only guaranteed-acceptance group health plan in the state, human resource solutions and group buying power. ASBA is Arizona’s leading, most experienced trade association committed to making Arizona the best place for launching and growing your business; creating opportunities to make money, save money and achieve amAZing™ results.
in this issue
asba.com | summer 2011
Ants and Entrepreneurs: Teamwork Floats our Boats We could all learn something about teamwork from fire ants. Yes, those aggressive, little insects with a nasty sting. Recent research by the Georgia Institute of Technology has discovered that during a flood, the colony unites to form a watertight communal raft. Their teamwork allows the ants to create this raft and float away safely to different locations. An individual ant will struggle and flail in a flood, while an ant raft can survive for months. Not only are the ants stronger
together, they are more buoyant. When researchers submerged the raft, the
ants pulled together even more tightly, working together to maintain their watertight craft. There is a lesson here for us. During adversity, it takes the efforts of an entire community to hang in there and figure out a way to get the job done. The worse the situation gets, the tighter we, like the ants, need to stick together. Our survival and well-being depend on it.
Cover Your Assets! . . . . . . . pg. 2 Start Up and Speed Up with ASBA . . . . . . pg. 4 Statewide Discussion with Arizona Businesses . . . pg. 6 . . . and more
If fire ants can figure it out, surely we can. With the current challenges facing us, we need to stick together and develop solutions now more than ever. That's why I have the team at ASBA focused on identifying and implementing solutions to help our business community. In the next few pages, we share some of these resources. So let’s hang tough together, help each other out and make things happen. Our raft is already forming, time to get on board.
4600 E. Washington Street, Suite 340 Phoenix, AZ 85034 p | 602.306.4000 f | 602.306.4001
4811 E. Grant Road, Suite 262 Tucson, AZ 85712 p | 520.327.0222 f | 520.327.0440
© 2011 ASBA. A publication of the Arizona Small Business Association. For more information or to join ASBA, please contact us at www.asba.com. Section designed by the Arizona Small Business Association.
Donna Davis, CEO | Arizona Small Business Association
During adversity, it takes the efforts of an entire community to hang in there and figure out a way to get the job done. 01
ASBA Board of Directors Lynn-Paige | Chair PerfectPower, Inc.
Joe Higgins | Vice Chair Sports Buzz™ Haircuts
Donna Robinson | Secretary Network Dogs, Inc.
Cover Your Assets! Six Easy Steps on How to Overcome Online Insecurity by Zary South, Business Operations Specialist, Asset Technology, LLC Have you ever lost an hour’s worth of work on your computer? Now imagine if you lost days or weeks of work – or imagine losing your client database, financial records, and all of the work files your company has ever produced or compiled. Or, what if a major storm, flood, or fire destroyed your office and all of your files? If a virus wiped out your server, do you have an
Jacob Gregory | Treasurer
emergency recovery plan in place that you feel confident in? How quickly do you think you
Clifton Gunderson, LLP
could recover, if at all? For many small businesses, these are unanswered questions that
Glenn Hamer Arizona Chamber of Commerce and Industry
Ben J. Himmelstein Wong Fujii Carter, PC
Roy Irwin Irwin Insurance & Investments, LLC
Debi Kuehn Kuehn Financial Education Services
Doug Martin Good News Radio Broadcasting
Dr. Jan Northup Management Training Systems, Inc.
Paul Smiley Sonoran Technology & Professional Services
Brad Specht Wells Fargo Bank
Linda Stanfield Benjamin Franklin Plumbing
Mark Staudohar ACCENT’ Hiring Group
Victoria Trafton Referral Institute of Central Arizona
Janice Washington Arizona Small Business Development Center Network
cause some of the biggest headaches. What’s most exasperating about situations like the ones above is that 100% of these disasters and their associated remediation costs could have been greatly mitigated (or completely avoided) easily and inexpensively with a little planning and proactive maintenance.
1 2 3
Six Things You Must Do to Protect Your Company from These Types of Disasters:
Make sure you are backing up your files
Check your backups on a regular basis to
make sure they are working properly.
Imagine this: you write the most important
This is another big mistake I see. Many
piece of information you could ever write on a
business owners set up some type of backup
chalkboard, and I come along and erase it.
system, but then never check to make sure it’s
How are you going to get it back? You’re not.
working properly. It’s not uncommon for a
Unless you can remember it, or MADE A
system to APPEAR to be backing up when in
COPY OF IT, you can’t recover the data. It’s
reality, it’s not. It’s not enough to simply back
gone. That is why it is so important to back up
up your system; you have to check it on a
your network. If the information on the disk is
regular basis to make sure the data is
important to you, make sure you have more
recoverable in the event of an emergency.
than one copy of it.
Keep an offsite copy of your backups. What happens if a fire or flood destroys your server AND the backup tapes or drive? This is how hurricane Katrina devastated many businesses that have now been forced into bankruptcy. What happens if your office gets robbed and they take EVERYTHING? Having an offsite backup is simply a smart way to make sure you can get your business back up and running in a relatively short period of time.
asba.com | summer 2011
Update your system with critical security patches
Make sure your virus protection is ALWAYS on
as they become available.
With virus attacks coming from spam, malware, downloaded data and music files, instant messages, Web sites, and e-mails from
If you do not have the most up-to-date security patches and virus
friends and clients, you cannot afford to be without up-to-date virus protection. Not only can a virus corrupt your files and bring down your network, but it can also hurt your reputation. If you or
definitions installed on your network, hackers can access your
one of your employees unknowingly spreads a virus to a customer, or if the virus hijacks your e-mail address book, you’re
computer through a number of clever ways.
going to make a lot of people very angry.
Update your hardware firewall subscription.
announces a new vulnerability and issues an update, it is then that
There are thousands of unscrupulous individuals out there who
hackers spring into action and they immediately go to work to analyze
think it’s fun to disable your network just because they can. These
the update and craft an exploit (like a virus) that allows them access to
individuals strike randomly by searching the Internet for open,
any computer or network that has not yet installed the security patch.
unprotected ports. As soon as they find one, they will delete files
While it's impossible to plan for every potential computer problem or
or download huge files that cannot be deleted, essentially shutting
emergency, a little proactive monitoring and maintenance of your
down your server’s hard drive. They can also use your server as a
network will help you avoid or greatly reduce the impact of the vast
“zombie” for storing pirated software or sending spam, which will
majority of computer disasters you could experience.
cause your ISP to shut YOU down and prevent you from accessing the Internet or sending and receiving e-mail.
For more information :: technologyanswers.net
Ken Blanchard College of Business | College of Education | College of Nursing & Health Sciences | College of Liberal Arts | College of Fine Arts & Production
Online • Campus
Get started today! Call or visit: 877-319-3244 | www.gcu.edu 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/ ).
Start up and speed up 40
ASBA is Your Road to Business Success
Entrepreneur Engine Starting a business often means navigating a
Small Business Accelerators
Small business is where economists predict
complex system – we’re here to make it as
ASBA is driven to provide a host of
the most significant job growth will occur in
painless as possible. The first step is
the next few years, and the Arizona Small
customizing an individualized approach.
Business Association has been focused on
Online at asba.com, just click on the “start”
providing entrepreneurs the right tool box to
button of the Entrepreneur Engine – this will
ensure it’s a smooth ride. Whether you are
take you to a wealth of information gathered
just starting out on the entrepreneurial
by state and local governments. Select the
highway, or if you are ready to speed up and
categories that relate to your business, and
accelerate your business, ASBA offers some
you are on the way to creating a customized
great resources to be successful.
JOIN NOW SAVE NOW
Use promo-code promo code “inbusiness” and inbusiness and get you membership application fee wavied!
guide to not only start your business, but also grow it in the critical months ahead. Beyond the paperwork and permits, making the right connections is critical to business success. ASBA offers some great opportunities to engage the business community and establish important referrals that drive customers to you. One of the most powerful is ASBA’s trademarked Fast and Curious Speed Networking™ events held the second and fourth Tuesday of each month. It is a fun, fast 90 minutes you won’t regret investing. Brush up on your elevator speech and hit this track.
opportunities to speed up small businesses. Through ASBA’s Entrepreneurial Accelerator, small business owners learn important skills to sustain and grow companies, even in the most challenging economic conditions. ASBA membership provides access to group buying power for office supplies, affordable access and group rates for health insurance and discounted prescriptions, workers’ compensation insurance incentives, and access to safety programs through the only association to have an OSHA-certified safety consultant available on staff and at your demand. In addition, you receive one complimentary an hour-long session with a hour-long session withcoach a certified certified professional is included and professional coach, and reduced rates on reduced rates on ongoing coaching ongoing coaching. are available.
One-on-One Mentoring Matching you with successful business owners with skills and experience in your industry is a valuable asset of ASBA’s mentoring program called “T.I.M.E.” T.I.M.E. stands for Training, Information, Mentoring & Education. The program focuses on opportunities and obstacles, along with identifying objectives and expectations.
with ASBA Through this approach of matching
many Arizona small businesses, and ASBA
committed business owners who want help
offers solutions to help you apply and
(mentees) with experienced business owners
manage the paperwork while you focus on
who want to give help (mentors), the program
growing your business. Plus, funding
has been very successful in solving the
opportunities exist to upgrade the skills of
problems that challenge business owners in
your current staff.
a variety of industries. Mentees learn new concepts to expand their horizons, learn from other business owners, and are strategically working toward well-defined objectives.
Receive up to 75% reimbursement for eligible training expenses of new hires, and up to 50% reimbursement for eligible training expenses of existing staff. Training is available for one employee or more.
Mentors stay with their mentees for a four
Companies must apply and be approved
month period. At the end of the four months,
prior to hiring or beginning training.
you re-assess and determine next steps.
Along the road to your business success, ASBA is always here to help give you a
Before you hire, check with ASBA about the potential for a state reimbursable grant to train your new staff. Funding is available for
Visit the Accelerator at ASBA.com
Fuel Up with Savings ASBA members know one of the best benefits of membership is the available group discounts. Not only are they available to the nearly 5,000 member companies, but these savings can be passed along to benefit the 300,000 Arizonans employed by these member organizations. Two new opportunities offering incredible discounts are Staples Advantage and Constant Contact.
79% average savings on office supplies! The savings don't stop there, you also receive:
FREE 60-day trial and up to 25% discount on the following tools:
• An additional 10% discount off your total order at checkout! • Free next-day delivery • Customization of Core Discount List
• E-Mail Marketing for professional-looking e-mails, managing contact lists, measuring campaign results and reviewing new list members • Social Media tools to help turn fans, friends and followers into customers • Event Marketing for efficiently promoting and managing registrations and RSVPs for meetings, functions, seminars and events • Online Survey for gathering feedback that helps meet customer needs, generate new ideas, and help grow your business
“I was already a Staples Premier Rewards member, but ASBA’s program got me a deeper discount upfront and shipped my items to me the next business day. That was easy!” Loretta Love Huff, The Dream Leader for Business™
Want to learn more about either program? Contact Christy Coe at 602.306.4000 or visit asba.com/discounts.
ASBA Plans Statewide Discussion with Arizona Business by David Drennon | ASBA VP, Marketing + Business Development
“Paperwork and regulations are onerous for micro-businesses,” said Wendy L. Jameson, MA, CEO of ColnaTec, a Gilbert company
Listening to entrepreneurs and local business owners,
developing thin film technologies. “Make it easier for us to do business,
collecting and sharing the feedback with state and federal
so we can focus on sales, not paperwork. We're the ones inventing
policy makers, and helping small businesses advance and create jobs
and innovating; help us get off the ground by making it less difficult.”
is the focus behind a series of community business discussions the Arizona Small Business Association (ASBA) will hold over the next several months.
“We don’t always show the return on investment as quickly as bankers would like, however, high tech companies are what will keep this country a world leader in technology,” said Mary Darling, CEO and
The dialogue began May 19 when the White House Business Council
Principal of Darling Environmental and Surveying in Tucson. “Small
approached ASBA to assemble a business roundtable. More than
businesses are the heart of America; it is wonderful to see the White
twenty entrepreneurs participated in that first discussion, sharing ideas
House and ASBA involved in such a positive way.”
and concerns that impact the overall business operating environment. Four primary topics emerged from the 90 minute forum: access to capital, regulatory hurdles, healthcare reform, and workforce development.
Candace Wiest, president and CEO of West Valley National Bank, said small businesses' access to capital is looking better over the past six months, but noted limitations exist as a result of increased regulation. "I believe that having bankers, particularly someone from a community
“Through these conversations with Arizona business owners, we can
bank like ours, is imperative to moving the local economy forward,"
identify opportunities to streamline processes and help our
entrepreneurs get to the resources that will help them make money and create jobs,” said Donna Davis, Chief Executive Officer of ASBA. “Turning to the innovative minds of small business will help us find solutions to advance business in Arizona and the jobs necessary to support our communities.” Roundtable participants were mixed on the economic climate, however all agreed continued recovery demands better, easier access to government resources, noting special focus on programs and lending for micro-businesses (fewer than 50 employees).
Paul Smiley, president and CEO of Sonoran Technology, an aerospace and defense contractor in Goodyear, said what has helped his company grow over the years is small bank lending. But another critical issue is access to talent. "Human capital is key for my business, and the number one factor in determining future success," said Smiley. Mark Staudohar, president of ACCENT’ Hiring Group, said that Arizona is faced with 300,000 unemployed workers; less regulation will foster entrepreneurial development and create jobs. Paramount in the discussion was recognizing this is about a global race for industry and jobs, and finding solutions for Arizona and America to be the global leader in innovation excellence. Tom Rainey, Director of Business Development for Motor Excellence, a high-tech, emerging clean-energy manufacturer in Flagstaff, said, “My hope is that this information will be processed and action will be taken by the Federal agencies to reduce bureaucracy, and find common sense approaches to supporting U.S. small business.” ASBA’s statewide community discussions will continue in Tucson in August and be held throughout the state so that we may listen and provide feedback from more Arizona small business owners. Entrepreneurs interested in learning more should contact
White House Business Council
asba.com | summer 2011
Arizona Business Roundtable Participants
Back: Zary South, Asset Technology; Kristine Kassel, Benefits By Design; Paul Smiley, Sonoran Technology; Carlyle Begay, Native Health Group; Martin Holdgraf, PerfectPower Middle: David Drennon, ASBA; Bob Roth, Cypress HomeCare Solutions; Don Smith, SCF Arizona; Connie Mabelson, Mabelson Law; Donna Robinson, Network Dogs; Andy Hann, Fountain Hills Door & Supply; Wendy Jameson, ColnaTec; Mark Staudohar, ACCENT’ Hiring Group; Andrew Kruse, Southwest Windpower; Kristen Wilson, ASBA Front: Margaret Rodriguez, Au’ Authum Ki; Margie Traylor, Sitewire; Mary Darling, Darling Environmental & Surveying; Marcilynn Burke, Bureau of Land Management; Tom Rainey, Motor Excellence; Candace Wiest, West Valley National Bank; Lisa Urias, Urias Communications
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ASBAâ€™s amAZingâ„˘ Staff Donna Davis, Chief Executive Officer Kristen Wilson, Sr. VP, Member Services + Programs David Drennon, VP, Marketing + Business Development Debbie Hann, VP, Finance + Administration Steve Holgerson, Director, Member Benefits (ASBB) Christy Coe, Director, Member Benefits (ASBA) Harold Gribow, Director, Association Safety Program Michelle Reynolds, Member Services Director Patricia Possert, Business Development Director, Southern Arizona Rhette Baughman, Marketing Manager Carol Mangen, Member Services Manager Gabe Salcido, Creative Design Manager Sarah Travis, Receptionist
4600 E. Washington Street, Suite 340 Phoenix, AZ 85034 p | 602.306.4000 f | 602.306.4001
4811 E. Grant Road, Suite 262 Tucson, AZ 85712 p | 520.327.0222 f | 520.327.0440
INDE X Fedderson, Yvonne, 40
Larson, Eric, 34
Rodriguez, Margaret, 47
Galster, Glen, 23
Lloyd, Bryce, 35
Roth, Bob, 47
Alvarado, Adriana, 12
Groteboer, Audrey, 38
Mabelson, Connie, 47
Sadvary, Tom, 35
Anshell, Jos, 9
Guerra, MaryAnn, 23
Mackey, Hank, 31
Seiden, Ann, 38
Begay, Carlyle, 47
Halvorsen, Brad, 23
Mariano, Connie, 40
Sellers, Kevin, 40
Birling, Melissa, 38
Hann, Andy, 47
McCollum-Plese, Tara, 15
Siner, Ann, 10
Boldizsar, Jeff, 38
Hardison, Paula, 30
Meyers-Drysdale, Ann, 40
Smiley, Paul, 46, 47
Bolton, Michelle, 27
Harper, Sharon, 17
Migal, Cliff, 12
Smith, Don, 47
Brueckner, Kurt, 40
Haynes, Jim, 15
Miller, Tina, 40
South, Zary, 42, 47
Burke, Marcilynn, 47
Holdgraf, Martin, 47
Nelson, Scott, 38
Spector, Aaron, 38
Burnett, Beth, 40
James, Timothy, Ph.D., 14
Neufang, Suzanne, 12
Staudohar, Mark, 46, 47
Casper, Brad, 35
Jameson, Wendy L., 46, 47
O’Meara, Sara, 40
Sturino, Andrea, 40
Castro, Norberto J., 10
Kassel, Kristine, 47
Pedersen, Erik, 38
Toler, Judge Lynn, 40
Chippindall, Andres, 35
Kelly, Aaron, 50
Peterson, Erika, 50
Townsley, Paul, 38
Dabdoub, Sergio, 35
Kidder, Rich, 33, 40
Prosch, Marilyn, Ph.D., 50
Traylor, Margie, 47
Darling, Mary, 46, 47
Klapp, Councilwoman Suzanne, 40
Rainey, Tom, 46, 47
Urias, Lisa, 47
Davis, Donna, 41, 46
Koeneman, Ed, 23
Reagan, Senator Michele, 40
Veillette, Dave, 15
Davis, Todd, 50
Koerber-Walker, Joan, 23
Rees, Dan, 12
Whyte, Stephanie, 34
DeMaria, Michael, 10
Kohgadai, Faisal, 25
Roach, Nancy, 30
Wiest, Candace, 46, 47
Drennon, David, 46, 47
Kruse, Andrew, 47
Roberson, Dave, 12
Wilson, Kristen, 47
Dunn, Scott, 14
Kuffner, Debra, 40
Robinson, Donna, 47
Zitzer, Kurt, 34
Eberle, Mark, 34
Lanning, Kimber, 40
Robinson, Mikel, 25
Cancer Centers of America, 15
Magellan Health Services of Arizona, 38
SurgeDesigns AZ, 35
Central Phoenix Women, 28, 29
Maricopa Workforce Connections, 7
@ Home Health Care, 36
ColnaTec, 46, 47
Mayo Clinic, 51
5th and Wine, 32
Commerce Bank of Arizona, 36
Meagher & Geer, 34
Target Commercial Interiors, 4
ACCENT’ Hiring Group, 46, 47
Conquest Training Systems, Inc., 8
Moses Anshell, 9
Tempe Chamber of Commerce, 28, 29
ACG Arizona, 29
Constant Contact, 45
Motor Excellence, 46, 47
Ticket Exchange, 31
Cypress HomeCare Solutions, 47
My Sister’s Closet, 10
Tickets Unlimited, 31
Native Health Group, 47
Urias Communications, 47
Network Dogs, Inc., 25, 47
Veggie Garage, 12
W. P. Carey
Index By Name
Index by Company
Chamber of Commerce, 28, 29 AirSprint Private Aviation, 5 Alerus Bank & Trust, 39 Algae Biosciences, 23
and Surveying, 46, 47 East Valley Chambers of Commerce Alliance, 36
Chamber of Commerce, 28
Chamber of Commerce, 28, 29
School of Business, 2, 14, 50
Allied Waste Services, 36
Easy Energy Systems, 12
Parc Central, 32
Wellness Community, The, 30
Emerald IT Services, 25
Wells Fargo, 26, 47
Arizona American Water, 38
First Fidelity Bank, 40
Phoenix Art Museum, 13
West Valley National Bank, 46, 47
Arizona Association of
Phoenix Suns, 40
West Valley Women, 28, 29
Flinn Foundation, 23
Phoenix Zoo, 10
Arizona Bioindustry Association, 23
Fountain Hills Door & Supply, 47
Plaza Companies, 17
Western Maricopa Education Center, 12
Arizona Hospital and
GET Phoenix, 38
Privacy by Design Research Lab, 50
Women of Scottsdale, 28, 29
Get There, 12
Record Center Innovations, 50
Arizona Power Networking, 28, 29
Grand Canyon University, 43
Reliable Background Screening, 16
REV Biodiesel, 12
Community Health Centers, 15
Healthcare Association, 15
Business Association, 28, 29, 41 Arizona Technology Council, 27, 28, 29 Asset Technology, LLC, 42, 47
Chamber of Commerce, 27 Greater Phoenix Convention & Visitors Bureau, 14
this issue of In Business Magazine.
Ronald McDonald House of Phoenix, 30 Rúla Búla Irish Pub, 32 SanTan Brewing Company, 32
Au’ Authum Ki, 47
H.A. Mackey & Associates, 31
SCF Arizona, 47, 52
AVB Development Partners, 34
Henkel Consumer Products, 35
School of Human Evolution, ASU, 38
Henry & Horne, 34
AXA Advisors, 38
Holmes Murphy, 16
AZ Tickets, 31
Hotel Valley Ho, 35
Scottsdale Fashion Square, 38
Benefits By Design, 47
K1 Speed Phoenix, 4
Scottsdale Healthcare, 35
Berk & Moskowitz, 36
Kelly Law Firm, The, 50
Seidman Research Institute, 15
Kinetic Muscles, 23
Black Chile Mexican Grill, 32
Sonoran Technology, 46, 47
Buchalter Nemer, 37
Local First AZ, 40
Southwest Windpower, 47
Bureau of Land Management, 47
M Culinary Concepts, 10
Business Marketing Association, 27
Mabelson Law, 47
Bolded listings are advertisers supporting
Chamber of Commerce, 29, 33
net·work·ing me·di·a – n. A supportive system of sharing communication that reaches or influences people widely.
www.inbusinessmag.com I n B u s i n e s s Ma g a z i n e
A Candid Forum
Security Breaches: Avoiding the Fallout by RaeAnne Marsh
Information these days is easy to collect, easy to store — and alarmingly easy to be a liability for businesses. Data breaches may or may not result in financial liability, but will result in bad publicity. And for small businesses funded on the owner’s personal credit, a security breach could result in a debt load from a fake purchase order or compromised company checks that could bury the business. It’ll Cost You “It’s a major credibility hit if you have to inform consumers and employees of a breach,” says Todd Davis, co-founder and CEO of identity security company Lifelock. The Ponemon Institute estimates the customer churn rate at nearly 4 percent. And there are costs involved, points out Marilyn Prosch, Ph.D., an assistant professor in the
Top 5 Tips Businesses need to start building privacy guidelines into their data collection methods from the very start, instead of waiting for something to go wrong, says Privacy by Design’s Prosch. She shares the following tips for companies: Don’t collect data just because you can. (In fact, attorney Aaron Kelly says, “The more information you have, the more you are a target.”) Before you decide to collect a piece of information, determine its “shelf life,” and don’t keep it longer than you need it. Be honest with your customers about what data you collect and how you do (or don’t) protect it. The Federal Trade Commission will hit you with unfair and deceptive trade practices if you guarantee security you don’t provide. Appoint a person or team in your organization to be accountable for protecting personal information, and to delete it when it’s no longer needed. Make sure the security practices are up-todate and appropriate, and employees know to follow them.
J u ly / A u g u s t 2011
department of Information Systems at ASU’s W. P. Carey School of Business: the cost of notifying customers of the data breach; the cost of providing free credit monitoring, which some organizations choose to do to restore confidence; the cost of investigation by state attorneys general or the Federal Trade Commission; the potential cost of sanctions by regulators, such as that imposed by the FTC on Google to have an independent audit every two years for the next 20 years; and the potential cost of responding to class action suits. Notes Aaron Kelly, principal with The Kelly Law Firm in Phoenix, all class action suits settle rather than even attempt to win in court. “There’s not a lot of jury sympathy. They think companies were stupid with [the information],” he says. Weak Links More security breaches occur from what Kelly calls “social engineering” — a person using some hard-luck ruse or pretending to be a service tech to elicit information — than from online hacking. Or someone breaks in when the business is closed and simply takes the computer. Erika Peterson, vice president of operations with Phoenix-based Record Center Innovations, observes that businesses put themselves and clients at risk by storing their business records in a spare office or self-storage unit. With the office open to cleaning crews and building management, among others, “There’s no way to control who has access, who is touching the records,” Peterson says. “Let’s not forget third parties,” says Prosch. “Thirty-five to forty percent of breaches are from third-parties, such as outsourcing payroll and cloud computing.” Prosch, who helped create the Privacy by Design Research Lab at W. P. Carey School of Business, notes there are also major issues due to technology advancing so rapidly. “Social network sites’ apps are not rigorously tested against privacy checks. They rush to market, and worry about consequences later.” Says Davis, “We’ve seen a focused effort by criminals — which can be employees, who know where employers consolidate personal information.” Or they’ll log in to an unsecured
Wi-Fi, as happened to retailer TJ Maxx; from a car in the mall parking lot, thieves were able to intercept financial transactions being transmitted to the company’s headquarters. Continues Davis, “They really target small and medium-sized businesses that may not have technical expertise to encrypt.” Destruction of records is another potential weak spot in records security, notes Peterson. Businesses may think they’re in a shredding or destruction program through their building management, but that management may have made an arrangement with a recycler — and unshredded white office paper is more valuable. With electronic records, the biggest problem with deleting them is finding all the copies — they may have been transferred and even replicated many times over. It’s the Law Arizona law requires a business to notify individuals if it becomes aware their personal information was stolen, but Kelly notes it gives only a non-specific “reasonable” time frame, and this gives businesses time to assess the situation. “It may be an internal leak but it didn’t actually get out. So don’t jump the gun and notify everyone [right away].” Many businesses that collect personally identifiable information fall under the FTC’s Red Flag Rule, which requires them to have a written identity theft prevention program designed to detect the warning signs of identity theft in dayto-day operations. “Businesses that fall under the auspices of the rule can face legal action, fines and penalties if they do not comply,” says Kelly. Additionally, under the Financial Modernization Act of 1999, businesses or institutions with significant involvement in consumer financial activities must offer customers an opt-out of any information-sharing processes in which that company engages. The Kelly Law Firm, LLC aaronkellylaw.com LifeLock lifelock.com Privacy by Design Research Lab wpcarey.asu.edu Record Center Innovations recordcenterinnovations.com
I’m an artistic person who’s always been in good health. Now that I’m older, I found a creative solution to stay that way. My answer was Mayo Clinic. Melany Terranova, Artist Scottsdale, AZ
To take control of her health, Melany joined the Medallion Program, a unique service that provides direct access to her physician 24 hours per day/7 days per week. Even though she is in good health, she now takes greater accountability for maintaining it, speaking with her doctor about issues ranging from prevention to lifestyle to nutrition and more. The Medallion Program is one of the many innovative ways Mayo Clinic cares for patients. For more information, please visit mayoclinic.org/medallion-program or call (480) 614-6030.
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