In Business Magazine - October 2011

OCT. 2011

Phoenix Mayoral Candidates Talk Business: Wes Gullett and Greg Stanton

inbusinessmag.com

Business Calendar By the Numbers Power Lunch

This Issue National Association of Women Business Owners

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

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October 2011

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

Partner Organizations

WORK WITH ME. If you do, Target Commercial Interiors and I can enhance the effectiveness of your business environment. I’m Laura, and my clients say that I’m one of the best in town when it comes to creating high-performance, sustainable work environments that bring people together to focus, collaborate, socialize and learn.

Donna Davis, CEO Arizona Small Business Association Central Office (602) 306-4000 Southern Arizona (520) 327-0222 www.asba.com

Steven G. Zylstra, President & CEO Arizona Technology Council One Renaissance Square (602) 343-8324 • www.aztechcouncil.org

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

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

Please give me a chance to show you. Contact me today at workwithlaura@targetinteriors.com Mary Ann Miller, President & CEO Tempe Chamber of Commerce (480) 967-7891 • www.tempechamber.org

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net·work·ing me·di·a – n.

A supportive system of sharing communication that reaches or influences people widely.

Our Partner Organizations are vested business organizations focused on building and improving business in the Valley or throughout Arizona.

As Partners, each will receive three insert publications each year to showcase all that they are doing for business and businesspeople within our community. We encourage you to join these and other organizations to better your business opportunities. The members of these and other Associate Partner Organizations receive a subscription to In Business Magazine each month. For more information on becoming an Associate Partner, please contact our publisher at info@inbusinessmag.com.

Associate Partners Ahwatukee Foothills Chamber of Commerce 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

Join us:

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

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North Scottsdale Chamber of Commerce www.northscottsdalechamber.org Peoria Chamber of Commerce www.peoriachamber.com Westmarc www.westmarc.org

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O c t o b e r 2011

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Contents

October 2011

22

Finding Our Path: Is Arizona real estate leading us to recovery?

Investors are leaving the volatile stock market for Arizona’s long-term, stable, rental market. RaeAnne Marsh speaks with leaders in banking and real estate development and others connected to the real estate industry to develop this picture of where we are and where we’re going in residential and commercial real estate and the impact on employment and our overall economy.

Departments

9 Guest Editor

Features

18 Leadership Succession:

Empowering the Company’s Future

J. Rentilly speaks with business leaders who have orchestrated the vision, development and preparedness steps required for a healthy, successful succession.

10 Feedback

28 Mediate Out of

Noted business leaders Drew Brown, Bryon Carney and Sharon Harper respond to IBM’s burning business question of the month.

Steven Dinkin shares four tips for having conflict-busting conversations in the workplace.

12 Briefs

Workplace Conflicts

28

30

30 Law: For the Records

Don Harris explores how technology advances in e-discovery and information management ease the burden in costly litigation-related records searches.

Education

36 Empower Your Company:

Shoot for the Heart

In this second article of the six-part series on branding.

Marketing and communications coach Kathy Heasley focuses on the first stage of that process: finding your heart.

38 Sales Is Not a Bad Word

Sales coach Mike Toney opens his six-part series on building sales and increasing revenue with a look at the value of clearly defining your business’s core purpose.

6

Jerry Colangelo, principal partner of JDM Partners and co-chair of Arizona Commerce Authority, introduces the “Real Estate” issue.

O c t o b e r 2011

“Phoenix’s Resources Attract Cell Phone Company,” “New Domains Potential Headache for Businesses,” “Coupon Site Benefits Businesses and Nonprofits,” “Green Market Gives Electric Businesses a Surge," “Networking Is Value-Added” and “Halloween Scares Turn Shocking Profits"

16 By the Numbers

The Consumer Confidence Index as a measure of economic optimism. Plus: Key economic indicators provide a sense of the health of the local economy.

20 Trickle Up

View from the top looks at how Bob Meyer brought to fruition his vision to revitalize Phoenix Children’s Hospital.

29 Books

New releases provide management techniques, skills and strategy for leaders to help their companies thrive.

32 Nonprofit

American Heart Association Free Arts for Abused Children of Arizona

39 Assets

“Bringing Back Power: The Mustang Boss 302” and “Seen and Heard: The Office Media System”

39

40 Power Lunch

Noon-time Unique: St. Francis for Lunch. Plus: “The Morning Meeting”

50 Roundtable

Phoenix mayoral candidates Wes Gullett and Greg Stanton share their plans for the city’s business and economic future.

Networking

33 On the Agenda

October’s calendar of business events presented by our partners Partner Section

41 National

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Kristine Kassel NAWBO Phoenix

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2011-2012

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Keep Cost Under Control…

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nawboph

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Phoenix

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1

NAWBO

NEWS

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THE SILVERLEA L LVERLEA F GROUP D ELIVERS. KNOWLEDGE. E XPERIENCE. S ALES.

D i s c ove r Yo u r V i s i o n

Horseshoe Canyon Casita 24 3 bed / 3.5 bath / 3,195 Square Feet Sold $1,864,930 Mike Lehman

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Find It

Build It

Horseshoe Canyon Custom 2102 6 bed / 8 bath / 9,093 Square Feet Sold $4,650,000 Cynthia Penwell / Mike Lehman

Horseshoe Canyon Villa 3117 4 bed / 4.5 bath / 4,421 Square Feet Sold $1,235,000 Mike Sweeney

Upper Canyon Custom 1610 6 bed / 9 bath / 11,442 Square Feet Sold $6,200,000 Deborah Beardsley

Live It

Upper Canyon Custom 1522 6 bed / 8 bath / 11,536 Square Feet Sold $5,250,000 Deborah Beardsley / Laura Lester

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Accelerating Business Performance Through Innovative Thinking

Publisher Rick McCartney

Editor RaeAnne Marsh Art Director Benjamin Little Contributing Writers Steven Dinkin Don Harris Kathy Heasley Mike Hunter J. Rentilly Alison Stanton Mike Toney Photographer-at-large Dan Vermillion Editorial Intern Brett Maxwell

Advertising

Operations Louise Ferrari

Account Executives Louise Ferrari

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

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Vol. 2, No.9 . 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 editor@inbusinessmag.com or mail to the address above. All letters sent to In Business Magazine will be treated as unconditionally assigned for publication, copyright purposes and use in any publication, website or brochure. InMedia accepts no responsibility for unsolicited manuscripts, photographs or other artwork. Submissions will not be returned unless accompanied by a self-addressed, stamped envelope. InMedia Company, LLC reserves the right to refuse certain advertising and is not liable for advertisers’ claims and/or errors. The opinions expressed herein are exclusively those of the writers and do not necessarily reflect the position of InMedia. InMedia Company considers its sources reliable and verifies as much data as possible, although reporting inaccuracies can occur; consequently, readers using this information do so at their own risk. Each business opportunity and/or investment inherently contains certain risks, and it is suggested that the prospective investors consult their attorney and/or financial professional. © 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.

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O c t o b e r 2011

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Jerry Colangelo, JDM Partners

Guest Editor

Worth the Investment

Jerry Colangelo brings to real estate development and management company JDM Partners his reputation as one of the most influential sports executives in the world. His management has taken the Phoenix Suns from expansion team to one of the most successful organizations in the NBA. He brought major league baseball to the Valley in 1998, serving as managing general partner of the onceWorld Champion Arizona Diamondbacks. Colangelo is also an active leader in the community, and currently cochairs the Arizona Commerce Authority with Gov. Jan Brewer.

Arizona is a unique place. Over the past 50 years, it has become one of the largest cities in America, known for its tourism and for its real estate opportunities. While the past three years have been tough on real estate as opportunities and jobs have diminished, our state has weathered this downturn well.

Business has been the saving grace. We are business-friendly; corporations like to come here to expand or make it the home of innovation because we embrace the healthy and strong economic development that brings people, jobs and prosperity.

Our cover story takes a hard look at where the opportunity is, what the “new role” of real estate means to our economic development and what today’s investors are looking at as opportunity. In her story — “Finding Our Path: Is Arizona real estate leading us to recovery?” — In Business Magazine editor RaeAnne Marsh identifies the opportunities and explains some of the legislation, incentives and programs that entice investing in both residential and commercial real estate in Arizona. Job growth and other economic variables are factored in, giving cause to believe that Arizona will begin to thrive again soon.

In this month’s “Trickle Up,” Alison Stanton speaks to Bob Meyer, president and CEO of the Phoenix Children’s Hospital, about his efforts to revitalize the organization and create one of the most profitable and respected hospitals in America. The Valley’s growth and a vision of what was in store for Phoenix prompted him to focus on the future, resulting in an 11-story patient tower and ranking Phoenix Children’s Hospital as the third largest in the country.

Succession in business is a very real issue as business owners and key executives look at exiting a company. J. Rentilly speaks to three business owners/executives who are facing (or have faced) succession for their company once they retire. He looks at the process, emotional toll and effect on day-to-day operations. Whether you are a family business or a Fortune 500 corporation, the next in line to take over the company will have an effect on business, and ignoring this facet of leadership can be quite detrimental to a company’s ongoing success.

And finally, Steven Dinkin uses his experience as the president of the National Conflict Resolution Center and his years of teaching mediation courses to introduce four tips for turning any disagreements, disputes and differences in the workplace into clear resolution through concise conversation and management tools to engage workers at a time of conflict. His article for In Business Magazine demonstrates the power of smart conversation to bring opportunity out of conflict within your business.

There is so much more in this issue of In Business Magazine. I know you’ll get something from it as we, as business owners, continue to work hard on our individual companies, knowing it will bring prosperity to Arizona.

Sincerely,

Jerry Colangelo Principal Partner, JDM Partners Co-Chair, Arizona Commerce Authority

Are Tides Going to Change?

There are many aspects of the Arizona economy, but the focus consistently comes back to real estate and whether or not the housing and commercial markets will rebound quickly enough, generating job growth. RaeAnne Marsh’s cover story on the subject evokes concern, but shows tempered optimism for Arizona’s future.

Who better to direct this issue than Jerry Colangelo?

His knowledge of this market and interests worldwide

inbusinessmag.com

make him a bit of a “barometer” himself. His insight and experience are looked up to by all Arizona businesspeople. We thank him for working with us on this issue of In Business Magazine and are pleased to share with our readers his optimism as to Arizona’s quick recovery. He believes in Arizonans and in our ability to bounce back with a vengeance.

—Rick McCartney, Publisher

Connect with us: Story Ideas/PR: editorial@inbusinessmag.com Business Events/Connections: businessevents@inbusinessmag.com Marketing/Exposure: advertise@inbusinessmag.com Or visit us online at www.inbusinessmag.com

In Business Magazine

9

Feedback

Q:

Valley Leaders Sound Off

Executives Answer

In looking to Arizona’s economic recovery and long-term economic stability, there has been considerable emphasis on moving away from the traditional reliance on construction and tourism and toward a greater diversity of industries. In your view, how can today’s real estate picture help drive Arizona’s recovery, if at all?

Bryon R. Carney

Drew M. Brown

President and Managing Partner Cassidy Turley BRE Commercial Sector: Real Estate It’s no secret that Arizona’s commercial real estate market has faced a “bumpy” road since 2007. Every segment of the market suffered with declining vacancies and rising foreclosures. Job growth has to drive the recovery, but real estate can help navigate. We need to use our knowledge and research to inform and guide businesses and investors through the market, showcasing the opportunities available to them in for-sale and lease properties. Focusing on growing sectors of the Arizona business community, including healthcare, education, technology, biotech, solar and green/clean energy industries, helps to move us away from the construction/tourism reliance.

We have seen the impact of this with the Phoenix Biomedical Campus in Downtown Phoenix, which includes more than 6 million SF of existing and planned research, office, academic and clinical facilities, many in partnership with Arizona’s three universities.

Market recovery and growth in Arizona must include an investment in locally owned small and mid-sized businesses. Putting capital into the hands of these companies creates a scenario of expansion, creates jobs and increases user requirements for all types of real estate.

Chairman of the Board DMB Associates, Inc. Sector: Real Estate Development Arizona’s business climate is extremely attractive and competitive based on our tax, regulatory and business policies and incentives. The current affordability of real estate across all sectors adds to the attractiveness of Arizona as a preferred choice for business relocation and expansion. The cost of living for employees, accessibility to well-priced housing and lower rents for commercial, industrial and retail space also contribute to Arizona’s competitiveness.

For all those reasons and more, Arizona is poised for growth driven by export businesses representing high-quality jobs in sectors that include aerospace and defense, solar and renewable energy, and science and technology.

At the same time, we must not abandon traditional cornerstone industries such as real estate and tourism, which are important to our diverse economy.

As new export industries expand their footprints and employee bases, absorb available properties, build new ones and increase demand for housing, our real estate industry will again represent a significant employer. And as our tourism industry attracts more visitors to our state, we can be assured many will be enticed to stay.

Cassidy Turley BRE Commercial brephoenix.com

DMB Associates, Inc. dmbinc.com

Bryon R. Carney became president and managing partner of Cassidy Turley BRE Commercial in 2009 after ten years as the company’s executive vice president and managing director and more than 25 years of experience in commercial real estate. He is responsible for the company’s strategic planning as well as guiding the day-to-day operations of the firm’s 125 professionals.

Drew M. Brown is chairman of DMB, a real estate development and investment firm doing business in Arizona and other western states. Prior to co-founding DMB in 1984, he was a partner in the Phoenix law firm of Fennemore Craig, specializing in real estate and commercial lending. Brown is active in several professional, civic and community organizations, including the Arizona Commerce Authority and the Phoenix Art Museum boards of directors.

Sharon Harper

succeeded in an otherwise difficult real estate environment due to the design, business plan, and focus on technology and advanced global business clusters in affiliation with Arizona State University.

Significant growth in the healthcare services platform is generating new development throughout Arizona. In particular, innovation in cancer services and treatments, the medical device and other biomedical initiatives, and services for healthy aging continue to positively impact real estate growth.

Arizona has a dynamic future, and, with university-based leadership and initiatives coupled with a laser focus by both the public and private sector on these competitive industries, the region’s economic vitality will be accelerated and sustained for the long term.

President and Chief Executive Officer Plaza Companies Sector: Real Estate Development The focus on technology enterprises, biomedical research and devices, advanced global business services, sustainable and renewable energy companies, innovative healthcare services and quality education will provide the platform for the new Arizona economy. These industries and initiatives will create business clusters that will sustain high-wage and diverse jobs, critical for the retention and attraction of a vibrant and educated work force.

These initiatives dramatically impact the real estate industry. An innovative project like SkySong, the ASU Innovation Center, has

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Plaza Companies

theplazaco.com

In addition to leading the company she co-founded 29 years ago, Sharon Harper is actively involved in many different aspects of the community. Current commitments include serving on the Board of Trustees of the Virginia G. Piper Charitable Trust and the Board of Directors of the Arizona Community Foundation; she is a past chairman of the Greater Phoenix Economic Council; and has been honored as a Most Admired CEO by the Phoenix Business Journal. inbusinessmag.com

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Briefs

Quick and To the Point

Phoenix’s Resources New Domains Potential Attract Cell Phone Company Headache for Businesses When co-founders John Marick and Greg Pryor decided to expand the customer service call center operation of their 15-year-old company, Consumer Cellular, beyond its Portland, Ore., base, they headed for Phoenix. As the first remote office for this nationwide provider of cell phones and services, its proximity to Portland via transportation hub Sky Harbor was one of the pluses Phoenix offered.

Another was access to highly trained people in the telecommunications industry. “Phoenix has done a good job cultivating that, and we could tap into people who’ve been exposed to call centers,” explains Marick.

Phoenix is also well-positioned from a disaster recovery aspect, which was the driving purpose for a second location. In case of a natural disaster that might close transportation, it’s important to have the redundancy of a second office. “Customers don’t care why [the employees] can’t get to the office,” Marick observes. “We want to have a diverse enough work force to meet customers’ needs no matter what was going on.”

Now a year in Phoenix, Consumer Cellular reports a 35 percent growth rate in revenue for 2010, and Marick and Pryor attribute most of that growth to their Phoenix expansion. “Most of our employee growth was here in Phoenix,” says Pryor, noting that count doubled since September 2010. “And that led to 35 percent more customers — and revenue.” The location near Sky Harbor can accommodate further growth, now staffed with 200 people but able to hold 300, and a search for suitable space on Phoenix’s west side might be the next step, according to Pryor.

—RaeAnne Marsh

Business owners with existing websites have a short window of time to prevent their businesses from being associated with adult-related material, now that the .xxx suffix created for the online adult film industry will soon be up and running. Owners of a national-level or regional-level trademark can block others from registering their brand names with the new suffix by submitting an application through an accredited .xxx registrar by Fri., Oct. 28, during what is called the sunshine period.

Opening the Internet to these new domain names creates a potential problem for existing businesses, says Stacie Smith, an attorney in the Phoenix office of Fennemore Craig, P.C. who specializes in intellectual property. Cyber squatters will sometimes try to register an .xxx domain name, usually with a larger, wellknow business’s trademark, and try to sell it back or create a settlement situation, she explains, noting, “A lot of companies don’t want to be associated with the adult industry.”

The ICM Registry, creator of the .xxx suffix, is trying to put preventive measures in place to help businesses avert cyber squatting and evade connection to adult material, Smith says. This includes requiring website owners who wish to register with an .xxx suffix to submit to a rigid ICM Registry process to prove they actually are an adult website. The ICM Registry will auction .xxx domain names to businesses that do not already have a registered trade name Nov. 8 through Nov. 25. The .xxx websites are expected to be up and running in early December.

—Brett Maxwell

Consumer Cellular consumercellular.com

Fennemore Craig, P.C. fclaw.com ICM Registry icmregistry.com

Coupon Site Benefits Businesses and Nonprofits It seemed a doozy of an idea: Develop a website on which local businesses could promote themselves with special deals for local patrons, and direct a portion of the money collected to local nonprofit organizations. A year-and-ahalf later, the $31,000 raised among five dozen schools and seven dozen charities attests to the viability of the enterprise.

Similar to Groupon, Doozy of a Deal launched in March 2010 as the first local “coupon” website.

“Businesses didn’t really get it,” recalls co-founder and co-owner Dean Barness. “There was a big learning curve.” He and his wife, Andi — who came up with the idea after Dean came home from a school PTA meeting concerned about the

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O c t o b e r 2011

ineffectiveness of the school’s fundraising — first approached businesses they frequented. It would be a win-win-win, they explained — savings for the customer, fundraising with little effort for the nonprofit organization, and advertising for the business with the potential to build a following of loyal customers.

Feedback has been positive from vendors, according to Barness, explaining that the people who subscribe to the website are selfmotivated to support the community and less interested in simply following the coupons. Of its 12,000 subscribers, 80 percent come from participating organizations, which can be any school, local nonprofit or local chapter of a

larger nonprofit. It’s the responsibility of the nonprofit to promote Doozy to its members as subscribers must designate a benefiting organization when they sign up on the site.

Barness describes Doozy of a Deal as a “boutique deal site,” and says the size the subscriber base means businesses don’t have to worry about being overwhelmed with an unmanageable response. “The fun part of the game is finding that perfect deal that’s good for the subscriber and is not so underpriced that it will get the vendor more than he can handle.”

—RaeAnne Marsh Doozy of a Deal doozyofadeal.com

inbusinessmag.com

November 2 - 4, 2011 The Ritz-Carlton Hotel Phoenix, Arizona

master the science of service Leverage the science of service to brighten your organization’s future. Service innovation can build a solid infrastructure for your success in this ever-changing, always-accelerating environment. Now in its 22nd year, the Compete Through Service Symposium brings together the most innovative business minds and visionary thought leaders in an engaging, enlightening environment to share ideas that are certain to inspire you.

Featuring thought-provoking insights from: Agile Pursuits Franchising • AIR Marketing • Arizona State University • Customer Care Measurement & Consulting • Edward Jones • The Go Daddy Group • Heasley & Partners • IBM • Kampgrounds of America (KOA) • Procter & Gamble • Sears Holdings Corporation • ServiceSource • Services Transformation and Innovation Group • Symantec • University of North Carolina • USAA • Walter Bond • World Health Congress • W. P. Carey School of Business • and more!

“The symposium was a great place to stretch my mind and learn about the challenges and successes in services from several different industries. Well done!”

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For more information and to register, visit wpcarey.asu.edu/symposium/inbusiness Exclusively for readers of InBusiness Magazine: Use code “INBUS” when registering to SAVE 10% Presented by the

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Briefs

Quick and To the Point

Green Market Gives Electric Businesses a Surge

Networking Is Value-Added

Arizona’s clean-economy jobs have grown from 29,000 in 2003 to 37,000 in 2010, according to a recent Brookings Institute report. This includes many existing businesses that have retooled to join the growing green market. ATS Electric and Accel Electric are among those companies that have begun to manufacture energy-efficient products to stay relevant.

In 2006, the Arizona Corporation Commission mandated electric utility companies to generate at least 15 percent of their energy from renewable resources by 2025. One of the results was a high demand for power-saving light fixtures on the part of commercial businesses, and electric companies are champing at the bit to fill the need.

This viable green market, and Accel Electric’s employees’ existing skill set to manufacture commercial and residential lighting products, led owner David Hayes to electric-car charging installations and lighting retrofits, which allow smaller, more efficient light bulbs. “We had to go with something green, because everybody’s mind-set was pointed in that direction,” says Hayes. Accel Electric has hired four employees since the beginning of the year.

Moving from declining new-construction electrical work to lighting retrofits enabled ATS to hire 33 people. Dave Shaub, vice president of operations, says ATS tried to rehire some of the employees they previously had laid off, but acknowledges it was at a lower pay rate that many chose not to accept. New hires came from various backgrounds, from surveying to food service. The company completed 543 projects in 2010 for APS commercial customers, and Shaub says all the employees are booked out for at least a month.

—Brett Maxwell

While the area’s many chambers of commerce and business organizations offer other benefits as well as networking opportunities, providing a platform for networking has been embraced by businesses as an important focus of activity.

The Microsoft Store at Scottsdale Fashion Square organizes networking programs as a part of its regular operations, and other organizations are built strictly on the networking and may give it a more formal framework. Calling it “business matchmaking,” Business Clubs America, for instance, encourages its paid membership to coordinate faceto-face referrals among all parties. “In this economic climate, it’s more difficult than ever to stand out from the crowd … or get through the gatekeeper of a prospective client,” says Jerry Wright, business development director of BCA in Phoenix, explaining the extra edge conferred by the personal contact.

In Metro Phoenix’s still-struggling economy, there has been a sharp increase in spending invested in networking events by business owners, entrepreneurs and job seekers, according to a study by local networking organization conducted among its members to get a sense of the amount of revenue networking contributes to the local economy. The $430,000 spent in the first half of 2010 jumped to $1.46 million in the first half of this year — a spike of more than 243 percent. NetworkingPhoenix.com also claims that the average number of active networkers grew to 6,759 in the first half of 2011, up 28 percent compared to the same period in 2010. “We’re seeing that Phoenixbased businesses are placing a greater emphasis on working with neighboring businesses in an effort to support the local economy,” says Gelie Akhenblit, NetworkingPhoenix.com’s founder and CEO. —RaeAnne Marsh

ATS Electric atselectricinc.com Accel Electric accel-electric.com

Halloween Scares Turn Shocking Profits Steve Kopelman is in the business of scaring people, and his year-round marketing pays off each Halloween season with high-revenue-producing haunted houses such as The Nest Haunted House in Chandler. One-hundred-thirty-five seasonal employees will fill positions that range from ticket seller to maniac killer for The Nest’s Sept. 21 to Oct. 31 run.

Haunted attractions gross more than $200 million annually in the United States, according to Kopelman, who’s Haunt Holdings produces and markets spooky attractions. The Nest, which became part of the Rawhide Western Town lineup in 2010, helped that attraction generate well over $1 million in revenue last year. Kopelman says he “couldn’t think of a better venue in the state” to hold a haunted house because it provides other family-friendly attractions and food vendors. Even though the haunted house runs only one month, Kopelman promotes it year-round with social media and a website that garnered nearly 2 million unique hits during past Octobers.

New this year is a uniquely Arizona twist: video effects to tell the story of Jacob Kell, an Arizona serial killer from 1945. Kopelman, who helped create one of the country’s most renowned haunted houses, says he owes a lot of The Nest’s success to delivering on what it promises. “We’ve never lost sight of the fact that scaring [the customers] is critical.” The Nest has received many accolades in the past couple of years — including spookiest haunted attraction in the country by “Good Morning America” last year.

—Brett Maxwell

Business Clubs America bcasouthernaz.com Microsoft Store microsoftstore.com NetworkingPhoenix.com networkingphoenix.com

Haunt Holdings hauntedhouses.com

14

O c t o b e r 2011

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15

By the numbers

Metrics & Measurements

Economic Optimism Measured: The Consumer Confidence Index

Key Indicators

Consumers drive the economy, and the confidence of the American people can be measured to get a sense of what our economic future may look like. The U.S. Consumer Confidence Index is measured by The Conference Board, an independent economic research group, and is based on the activities of 3,000 to 5,000 households throughout the country. It is calculated on the basis of a survey of consumers’ opinions on current conditions (40 percent of the index) and future expectations (60 percent of the index) of the economy — it really is a barometer of economic health.

The index began in 1967; 1985's results, assigned a value of 100, are used as the benchmark for the annual comparison. The Federal Reserve and other organizations, both federal and state, rely on these calculations to determine things like interest rates and other factors to “second guess” the sentiment of the American people and their confidence in our economic future. The Conference Board is a monthly report detailing consumer attitudes and buying intentions, with data available by age, income and region.

In Arizona, most organizations look to Eller College of Management at the University of Arizona or W. P. Carey School of Business at Arizona State University to disseminate information about consumer confidence for Arizona. However, neither school conducts an ongoing survey.

Instead, private research firms such as the Behavior Research Center, Inc. in Phoenix will conduct quarterly surveys of households and businesses in the state to get an index of the consumer confidence among Arizona consumers.

“This information is widely used by the Arizona State Legislature,” says Marshall Vest, an economist at the Eller College of Management. “The Joint Legislative Budget Committee includes [the index] in their list of measures.” However, the CCI is simply an indicator. Conventional wisdom is that if confidence is high, consumers are spending; if it is low, they are not. Indications as to personal savings and other factors for low numbers are taken into account, but this is hardly scientific. “Measurement is an issue,” states Vest. “One has to take into account the small samples and measure error. These are often not considered.”

—Mike Hunter

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 (July 2011)

-8.9

1,676.2

2.0

No. of Housing Permits (July 2011)

1248

113.3

Consumer Confidence (Q2 2011)

51.9%

4.6

Consumer Price Index* (US) (July 2011)

225.9

3.6

Job Growth (July 2011) in thousands

Eller Business Research

Retail Sales (Metro Phoenix) Retail Sales (in thousands)

June 2011

Total Sales

$4,303,441

9.6

Retail

2,654,220

7.6

Food

655,200

3.5

Restaurants & Bars

534,450

10.0

Gasoline

459,571

34.6

Contracting

551,721

8.7

Real Estate Commercial: Office*** Vacancy Rate

120 100

80

Net Absorption (in SF)

260,444

183,187

Rental Rates (Class A)

$24.43

$25.57

Commercial: Indust.***

2006

2007

Arizona Consumer Confidence Index % chg vs year ago Metro Phoenix Consumer Confidence Index % chg vs year ago

2008

2009

2010

2011

2012

Q1 2010

Q2 2010

Q3 2010

Q4 2010

Q1 2011

Q2 2011

50.2

49.6

49.1

56.3

62.8

51.9

13.6

-5.0

-18.4

2.0

25.1

4.6

52.2

56.0

52.8

55.7

63.5

56.4

18.4

9.7

-9.0

1.1

21.6

0.7

Behavior Research Center, Inc., Rocky Mountain Poll

16

O c t o b e r 2011

Q2 2011

Q2 2010

13.7%

15.2%

772,613

1,360,315

$0.51

$0.54

Aug. 2011

Aug. 2010

8,460

6,530

Total Median Sale Price

$119,000

$130,000

New Build Sales Volume

550

410

New Median Sale Price

$217,500

$234,893

7,910

6,120

$112,500

$123,900

Net Absorption (in SF)

Residential: Total Sales Volume

40

Q2 2010 27.6%

Rental Rates (General Industrial)

60

Q2 2011 28%

Vacancy Rate

2005

YOY % Change

Eller Business Research

brc-research.com

Arizona Consumer Confidence Index

2004

YOY % Change

8.4%

Eller College of Management eller.arizona.edu Behavior Research Center, Inc.

Number

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.

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17

Leadership

A Path to Follow

Leadership Succession: Empowering the Company’s Future

by J. Rentilly

Though there are many reasons for introducing new corporate leadership — a reinvigoration of a business’s long-term vision, a retirement or, worst case, an unexpected illness or death — the steps required for a healthy, successful succession are almost carved in stone and, best case, the result of vision, development and preparedness.

“Succession is a process, not an event,” says Leslie Dashew, president of The Human Side of Enterprise and a partner in Aspen Family Business Group, who has spent 35 years in business and wealth consultation in Scottsdale.

“One essential part of the process is creating a culture that focuses on growing competencies of individuals and the organization as a whole.”

Her point is echoed by John Lovato, whose experience encompasses many years as a senior executive officer of a Fortune 500 company in manufacturing services. Planning for a CEO’s departure is not merely about forecasting rainy days, the heavy hammer of calamity, dramatic market shifts or the inevitable retirement of aging leaders; it’s just common sense. “Succession planning falls under the umbrella of human development,” says Lovato, whose 21 years at one company bore witness to its spectacular growth, from 1,500 employees stateside to more than 80,000 globally. “It requires an investment in training, clear communication on expectationsetting and performance feedback, and an ability to characterize and re-characterize your company’s ambition, aspiration and development needs on a regular basis.”

Annual from-the-ground-up analysis, employee reviews, measurement descriptions, upward mobility, employee goals and training requirements are fundamental ways for company leadership to connect with its employees, and also to assess its “bench strength” — in-house high-potential candidates, already grooming for rank ascension. Most publicly traded companies are mindful of such requirements, perhaps

18

O c t o b e r 2011

because of their shareholder accountability, according to Dashew, while too many family-owned businesses are so “focused on the pressing issues of today and not on the future,” that succession planning is “sometimes left to luck.”

Douglas Griffen, founder and director of Advanced Strategy Center in Scottsdale, believes a CEO who does not prepare for change is, essentially, an agent of decay. Says Griffen, “Successful companies will always have someone ‘on deck.’ You can’t just deal with [succession] when it happens. And CEOs need to be open to change and know when to ‘let go.’”

Succession isn’t just about changing the name on an office door, says Dashew; it’s about the progression of ownership, leadership, knowledge, relationships and authority. She also emphasizes the importance of developing a shared vision of the future among stockholders and stakeholders, and anticipating leadership and employee competencies that will be required in the future to move toward that fresh vision. “This is not the time, necessarily, to reflect on what has worked in the past,” she says. “You don’t

want a ‘clone’ leader. You want a new leader to go into a new future.”

Griffen has high praise for the 2011 CEO transition at Avnet, particularly for the company’s warmth and transparency in promoting Rick Hamada as 34-year veteran Roy Vallee transitioned to the company’s board of directors. In development for more than a year, the Avnet transition was an in-house proposition executed with grace during a time of company growth. Hamada and Vallee are men of complementary vision, according to Griffen, and the shift has been, he says, “an excellent example” of succession planning done right.

Prisma Graphic founder and CEO Bob Anderson sought “strong communication, clear vision and a powerful skill set” as he spent two years preparing for an in-company transition that allows him to spend more time with clients and less with managing “an ever-changing marketplace.” Anderson worked closely with successor Simon Beltran, who took the desk with a 100-day roadmap and “the freedom to do things a little differently.”

The shift inside Prisma reinvigorated the company with “a fresh outlook,” says Beltran.

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“I believe success comes from knowing where you want to go, rather than focusing on where you’ve been.”

Last summer, Blue Cross Blue Shield of Arizona, the state’s largest health insurance company, made a progressive organizational shift to make good leadership even stronger, with Sue Navran, executive VP of internal operations, switching roles with Sandra Gibson, executive VP of external operations — an unusual though not unprecedented variation on corporate succession. The shift at BCBSAZ demonstrates “nimbleness and flexibility … in this new healthcare reform environment,” says Gibson, who now handles actuarial, claims and customer service; enrollment; facilities; finance; information technology; and underwriting. “It allows us to look at things with fresh eyes.”

Navran, who now focuses on contract relations, sales, marketing, medical services and governmental affairs, says the transition was handled with grace and ease largely because “BCBSAZ has provided opportunities for executives to learn all aspects of the business over a reasonable time horizon with the advice and counsel of predecessors.”

Working closely with Gibson, establishing a potent give-and-take as they now effectively manage the other’s “shop,” has yielded, says Navran, “improved efficiencies and communication between divisions. This has definitely contributed to our long-term strength and success.”

According to Lovato, the “culture of collaboration” as demonstrated in these three Arizona succession stories is critical to a company’s healthy and successful evolution.

“It’s about empowerment, accountability and respect,” he says. “It’s a never-ending process of refinement and commitment.”

With vision, preparation and collaboration, changing times need not be fearsome or seismic shifts but, rather, a natural movement toward greater achievement. “A lot of times, this is exactly what a company needs most,” says Lovato. “It can be truly invigorating.”

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19

Trickle Up

A View from the Top

Bob Meyer’s Vision Revitalized Phoenix Children’s Hospital Strong Vital Signs ■■ Phoenix Children’s Hospital is Arizona’s only

■■ ■■ ■■ ■■

20

licensed children’s hospital, providing worldclass care in more than 40 pediatric specialties to children from throughout the state and region.

The hospital has what Meyer calls “six centers of excellence,” specializing in cardiovascular issues, neurosciences, orthopedics, trauma, oncology/ hematology and neonatology.

The hospital’s alliance with St. Joseph’s Hospital and Medical Center has made it the largest freestanding children’s hospital in the Southwest.

The recent expansion of Phoenix Children’s Hospital has brought the facility from 345 licensed beds to 465. By full build-out, which is expected in 2013, it will have a total of 626 licensed beds.

Meyer is involved with a variety of organizations, including the Governor’s Committee on Arizona Medical Education, the Ronald McDonald Capital Campaign Cabinet and the Arizona Biomedical Collaboration Board.

O c t o b e r 2011

Some business consultants, faced with the challenge of trying to save a children’s hospital that is $48 million in debt and with barely any cash on hand, would have suggested declaring bankruptcy or selling. Not Bob Meyer.

Thanks to his visionary approach, in the eight years Meyer has been with Phoenix Children’s Hospital — starting out as interim chief executive officer in May 2003 before being appointed president and chief executive officer in October of the same year — the hospital has gone from being in the depths of financial disaster to being financially solvent as well as expanding to become one of the largest and highly acclaimed pediatric hospitals in the country.

Meyer first became involved with Phoenix Children’s Hospital in 2002, when he was vice president and national director for Health Strategy Practice for Cap Gemini, LLC, formerly Ernst & Young, LLP. The Irvine, California-based consulting firm was hired to assess the financial situation of the hospital and determine if it could regain financial viability. Says Meyer, “At the time,

the hospital’s bonds were in default and there was only seven to 10 days’ worth of cash on hand. Things were pretty grim.” His study of the budget uncovered two issues. “The first problem was with the revenue cycle with billing and collecting, and the second was with its expensive nursing delivery model.”

Despite these tangible financial issues, Meyer was able to look beyond the problems and see the potential. The hospital, he was pleased to note, had tremendous support from physicians and its board.

“I was asked if, by January of 2003, the facility could be turned around, and my answer was yes,” he says. “Then the second question was, ‘If yes, what is the probability of success?’ and I said, “About 90 percent.’”

Getting busy with what he called the “turnaround option,” Meyer worked to revamp the issues he saw as the biggest obstacles to financial solvency. Within a year, Phoenix Children’s Hospital went from being $48 million in the red to about $3 million in the black. “It was just over a $50 million turnaround in one year,” he says.

The hospital’s board, impressed with Meyer’s financial strategies and successes, asked him to stay.

But for Meyer, there was more to accomplish beyond the financial turnaround.

He wanted to take Phoenix Children’s Hospital and expand it both physically and in terms of its number of employees. “I saw it as a challenge. We were the fifth-largest city and the fourth-largest pediatric market, so we should have a world-class hospital,” he says. “I took the job, and started planning for the future.

“What was a big ‘aha’ moment for me was the tremendous growth of the Valley. We had about 980,000 children in the area when I was hired, and we have about 1.1 million children now, and we are projected to have 1.7 or 1.8 million by 2025.” The projections revealed that an additional 800 hospital beds and 200 physicians would be needed to

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serve the needs of the area’s future number of children. “Clearly, we needed to grow in order to meet the needs of the facility,” says Meyer.

“We needed more beds, but we also needed a modern physical plant. We deal with kids who are very ill, so we need a very high-tech facility, with the most recent versions of MRIs and other equipment.”

A proposal to expand the hospital went before the board, and, much to Meyer’s pleasure, it voted to move forward with the expansion. The $538-million project, announced in 2006, was completed this past June with the grand opening of a new 11-story patient tower. Meyer’s visionary goals for what the hospital was capable of have paid off and Phoenix Children’s Hospital is now ranked as the third largest children’s hospital in the country.

“But to be truly world-class,” says Meyer, “we needed to look at consolidating our services with St. Joseph’s Hospital and Medical Center.” He went to work figuring out how the two hospitals could combine forces — and the strategic alliance between the two hospitals was completed on the same day the new patient tower opened. “In our ultimate goal of being nationally recognized, St. Joe’s is a major piece of that puzzle,” Meyer explains. “Individually, we had medium-sized programs and everyone was happy, but with one common vision of what we wanted to get to, it’s worked out and has been beautiful and tremendous.”

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21

Finding Our Path: Is Arizona real estate leading us

to recovery

by RaeAnne Marsh

"We are viewed as the blue-plate special of real estate in North America,” says Howard Lein, owner of RE/MAX Excalibur, explaining the market is good for a toe-hold in the United States for investors from Asia and Canada in particular.

T

o most people, real estate and housing are synonymous.

While housing is, actually, just one segment of the real estate industry, it is the most visible and, arguably, most important indicator of the economy. “You cannot have a strong economy without a strong housing market,” states Elliott Pollack, CEO of Phoenix economic and real estate consulting firm Elliott D. Pollack & Company. “So until we get single family construction picking up, the economy is going to be difficult.”

“Think of what goes into a house — appliances, carpets, all kinds of materials from thousands of industries, including financing,” says Bill Spart, senior vice president with Wells Fargo in Arizona.

Building homes adds to the Gross Domestic Product, explains Wells Fargo senior economist Eugenio Aleman, affirming, “The housing market creates value for the economy.”

With housing recognized as such a fundament of the economy, is anything new being done to spur activity in this sector?

Not in lending. If anything, in fact, loans

22

O c t o b e r 2011

have become harder to acquire. Howard Lein, owner of RE/MAX Excalibur, predicts that the 2011 FHA mortgage guidelines that set standards on income and assets will remove 70 percent of the buyers who would have previously qualified for a home loan. Aleman says banks will stick with the “normal” loans — adjustable-rate, 30year and 15-year mortgages — and what he terms the “weird loans,” such as those based on supposed appreciation rather than actual value, “are not coming back.”

Even loan products that have not changed are now structured differently, notes Spart, such as requiring more cash down or more of a guarantee.

Nor is the pattern of location expected to change. Phoenix’s experiment with moving back to town was nonsense, according to Pollack, who describes the trend to urban high-rise living “a dismal failure.” “Phoenix grows like a balloon; it has to pulse out,” he says. “Growth will continue where the land is and where utilities are — the periphery. Jobs [in the local area] will follow.” That’s the way it’s always worked in Arizona, he points out, and he believes that’s the way it is likely to continue to work.

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>>

What all the old truisms about real estate fail to take into account, however, is the investment activity in Arizona real estate. Foreclosures are down, inventory is being absorbed and there is a shift in the real estate dynamic. Investors have been busily buying properties to such an extent that Lein reports there is a shortage of inventory. “We have more homes pending and in escrow than active listings,” he says. “It rivals what we saw at the peak of the market.”

Arizona Housing a Magnet for Foreign Investment “We are viewed as the blue-plate special of real estate in North America,” says Lein, explaining the market is good for a toe-hold in the United States for investors from Asia and Canada in particular. The investors are looking to buy in quantity — from 20 to 200 homes — and most pay in cash.

The foreclosure market and diminished values — homes selling at 20- to 30-percent of their top-of-the-market price — have created a tremendous opportunity for residential investors. Dean Selvey, an investment specialist also at RE/MAX Excalibur in Scottsdale, notes that the commonly reported housing market numbers are based on national data and the situation in Metro Phoenix is quite different. Not only is inventory down more than 50 percent from Jan. 1 this year to Aug. 1, but “prices are increasing in almost every submarket in Metro Phoenix,” he says. Explaining the typical ratio is three active listings to one pending sale, he says now is the first time in Phoenix history that pending sales outnumber active listings and predicts that investors who don’t buy now will find little inventory to choose from next year.

Today’s investors are not the traditional low-bid bottom feeders, Lein notes; these investors look at the expected rate of return and base

24

O c t o b e r 2011

their offer on a 10- to 12-percent return from rental of the properties.

And rental prospects are very strong. Explains Lein, the 2010 DoddFrank Act’s financial regulatory overhaul and this year’s new mortgage lending guidelines have put home ownership out of reach of so many that the tenant of today is likely to continue to be a tenant in the future.

It’s an over-regulation that has gone too far, he believes, pointing out that the maligned Freddie Mac and Fannie Mae institutions functioned with no issues for 40 years. “Somebody got in the middle of their good programs four to five years ago and destroyed what they’d built,” he says, advocating a roll-back to those earlier programs rather than what he characterizes a harsh over-reaction that removes a mainstay of the American financial system. “I expect it will be at least two to three years before somebody realizes we need to correct it,” he says.

For investors, however, the situation has made rental property now a “phenomenal investment.”

Aleman’s assessment supports this forecast, as he notes prospective homeowners will likely need to save for five to 15 years to amass a 20-percent down payment, plus “it’s difficult to save in this environment.”

Selvey finds real estate is now attracting investors who are leaving the volatile stock market for this long-term, stable, rental market.

And present currency exchange rates are adding to the attraction for foreign investors.

Canada is by far the largest source of foreign direct investment right now, according to Glenn Williamson, founder and CEO of Canada Arizona Business Council. Explaining this has been building for the past 50 years, he calls now a “perfect storm”: the value of the Canadian dollar has gone par with the U.S. dollar, attraction has shifted from another mainstay of Canadian interest — Florida — because of its hurricanes and higher non-resident taxes, and the number of direct flights between Canada and Phoenix has more than tripled from five years ago.

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“Homebuilders, from Fulton to Beazer to Shea, have Canada on their radar screen. And every real estate agent is marketing to Canadians,” says Williamson. Naming Arizona Commerce Authority, Arizona Office of Tourism and Scottsdale Convention & Visitors Bureau among the government agencies with an active presence in his country, he says also, “The State of Arizona spends time in Canada.” He finds it’s not just a snow-bird scenario; in many cases, young executives are looking to also buy or invest in companies here or influence their companies to move operations to Arizona.

A Push on New Home Construction While there are factors hindering the resurgence of the newhousing market, such as the difficulty of first-time homebuyers to qualify for a loan and fewer household formations — of which the number falls dramatically when no jobs are being created, Pollack notes — construction is not at a standstill.

The lack of significant shadow inventory in the pipeline from foreclosures and short sales plus the migration to new home sales of buyers tired of trying to bid on such property — including individual homebuyers who cannot act fast enough against cash-wielding investors — is leading to an increased demand to build, according to Selvey. He reports two new projects broke ground in late August on land acquired cheaply from foreclosure.

Builders are responding to the new market with new products, such as one in Casa Grande being built by Terra Verde Builders to appeal specifically to Canadian residents looking for vacation homes — fully furnished (“Down to the dishes,” says Selvey) patio homes at affordable prices. And Scottsdale-based Meritage Homes recently debuted “netzero” homes that incorporate such extensive green design elements that they cut the previously touted Energy Star® ratings by more than half on operating costs while also providing a cleaner indoor

environment. With energy-consciousness on the rise — for economic as well as environmental reasons — Meritage Homes Vice President of Environmental Affairs C.R. Herro notes that buildings account for the largest consumption of energy and states that, with standard construction, “twice the energy is consumed as is necessary, so it wastes half.”

These homes, however, produce as much energy as they consume, incorporating energy-efficient design and details previously confined to either custom-built homes with price tags to match or homebuilder spec-display homes. It’s a basic change in the way production homes are built, and some in the industry predict it could impact resales of older homes whose energy ratings can’t come close to what these offer. The viability of this design in creating a market for itself has already prompted Beazer Homes to develop its own green-style product, and successful sales numbers can be expected to spur other major homebuilders to follow suit. According to Eric Rosson, Meritage Homes’ vice president of marketing, Meritage has sold 35 homes with the net-zero option since unveiling them in Verrado on Earth Day. These numbers, he says, “are extremely good because it’s an incremental expense at a time when people are trying to get more value for their dollar.”

Master-planned communities and the unique demographic of the Hispanic market — a market he says builders in Arizona “ought to be” targeting — are areas in which Pollack predicts industry strength.

Another trend he anticipates is “Gen X and Y will probably go for smaller homes.”

Edward Robson, founder and chairman of Robson Resort Communities, also sees builders going to a smaller product, and notes this would allow homebuilders to offer homes at reduced prices as a way to stimulate sales. In his market — age-restricted communities that include the value of lifestyle amenities — he anticipates Arizona continuing to be a prime destination, trumping historical competitor Florida over issues of hurricanes and bugs. “Now is a good time to buy,” he says, noting older people are not getting anything out of their timed deposits and relating that a customer from Back East recently called to tell him he was getting out of the stock market and into real estate.

“People realize if they wait two to three years, commodities — such as lumber — will go up in price.” As is also likely with prices of all the many products made from oil, all of which will add to the home price.

Commercial Real Estate as Economic Barometer In the commercial sector, some of the woes are related to housing — such as unleased space in a strip mall built to serve a housing development that ended up not being built — but in general the lending was more rational than it was for residential, says Wells Fargo’s Aleman.

Still, there is a glut of commercial space and a dearth of tenants that has led to numerous foreclosures in this sector. Michael Ebert, co-founder and managing partner of Red Development, which has properties in 12 states, observes that growth in Arizona has been near the top nationally “but, also, the amount of overdevelopment here was greater than any other markets we were in.” Red Development first entered the Arizona market in 1995, and has been extensively involved here for the past nine years, with Downtown Phoenix’s CityScape one of its most recent development projects. The company now, however, is more focused on leveraging existing property, and in the past three

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25

>> years has been moving away from a development model to more of an

operating company. “Buying land, developing it and selling it does not have as predictable an outcome as in the past.”

One of Phoenix’s problems may well be too much information. Mark Stapp, professor of real estate practice at A.S.U.’s W. P. Carey School of Business, notes that Metro Phoenix has very good data available about what the market is doing. “But everyone is looking at the data at the same time and implementing projects based on that data. Ten people looking at the same data and coming to the same conclusion can lead to an oversupply in that type of project,” he explains.

High unemployment is another factor, especially in office space. “The more jobs you create, the more demand there is for office space. As you have a lot of jobs go away, then office space starts decreasing as far as occupancies, so office space is the hardest hit,” says Bill Spart, senior vice president of middle market real estate for Wells Fargo. A project for the FBI and another for the University of Phoenix are the only new, local, office construction; there is nothing on spec currently in the pipeline.

Industrial is the area Spart sees as the strongest today in commercial real estate. “Everything is headed in the right direction for that,” he says.

“As small businesses start expanding or move out of the garage and move up to bigger space, industrial is where you first see that [growth].” He relates that vacancies are down, lease rates are normal, and absorption is starting to pick up the space. Even more promising, construction is picking up for large projects of more than 500,000 square feet.

“Distributions like Amazon, Google and Wolf Appliances are locking down large spaces and moving a lot of jobs here,” says Spart, noting

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that most of the activity in these large spaces is in the West Valley. “The West Side’s proximity to I-10 and L.A. encourages its industrial growth.”

Availability is more Valley-wide for smaller businesses, like house painters, he notes, which generally locate in or near the area they serve.

In the current market, infill properties will recover sooner than outlying locations, as businesses take the opportunity to move into more desirable locations, says Craig Henig, senior managing director and Arizona market leader with CB Richard Ellis. And foreclosure actions, he feels, are sometimes premature. “By giving the borrower time to mitigate losses and lease out the buildings, some properties have regained some of the loss they experienced.” One of the challenges owners face in these economic downturns is the almost automatic assumption on the tenant side that they’ll get a good deal, Henig explains, noting, “To make money, the owners will have to operate the properties in a classy manner and stay close to their tenants.”

Ebert, in fact, observes that high-quality assets are now valued at near-peak prices, which he says surprises all industry people. “We’ve seen high-quality office and retail that are well-leased and have value back close to what it was at the peak,” says Ebert, adding, “The market has an interest in financing, buying and valuing well-located properties, but there’s a dramatic drop-off after that.” He describes the Phoenix market as “bipolar, with trophy properties and trauma cases (or distressed properties).” Still, he says, “We’re bullish on Arizona, and that’s why we’re continuing to invest in Phoenix.”

Phoenix is attracting a lot of investors, in fact. “It’s amazing how many people we have coming in from Southern California, Canada, the Midwest,”

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Experience — a Guide for the Future?

says Spart. While he finds they’re interested in everything, he says he has seen the most activity in multi-family and industrial. “Prices are down,” he explains, “so looking 5-10 years down the road, this is a great buy.”

Development Due for a Comeback Pollack describes the present real estate situation here as dire. But he insists that, although this time it’s more severe and protracted than in the past, “it’s just a cycle.” He sees Phoenix already growing out of this one, with a good part of the excess housing supply eaten up and job loss easing up, and expects the real estate market to normalize in 2015.

And Metro Phoenix has a lot on the plus side to appeal to a developer, according to Stapp. “There are few constraints on development,” he says.

It’s a relatively easy entitlement process to obtain the needed approvals to develop a property for a desired use; it’s easy to add infrastructure such as roads; it has a flat urban economic landscape, with multiple centers of business rather than all development focused on Downtown; and no natural disasters. It also has highly protected development rights. “Arizona, like most of the West, has very strong private property rights protection and mentality,” says Stapp, giving Proposition 207, the Private Property Rights Protection Act, as example. “This deals mostly with eminent domain and compensation,” he explains, “but it reflects the importance of private property rights. This [position] makes it hard for government to restrict land use.”

inbusinessmag.com

“When there are really good projects needing financing, it’s not unusual to see multiple bidders from the finance world,” Spart says. He explains the challenge in lending, however, is finding loans that make sense — where the equity is there and borrowers are in good shape.

“The theory is that capital is supposed to enforce discipline,” affirms Stapp, but adds, “Look down the value chain and see how many fees are generated from that one deal, and you realize how many people are motivated for that deal to happen.” Himself a developer as well as executive director of the Master of Real Estate Development program at W. P. Carey, he says people’s motivators are sometimes out of alignment with what’s good for the overall economy. “We need to try to align those motivations better. It’s important to tie capital to what the community’s needs are.”

Henig, who has been through recessions before in his 24 years in the business, believes it’s important to have checks and balances in place when it comes to lending, and to learn from the mistakes made this time in over-valuating. “Banks need to be flexible on the interest rate, to make sure the borrower succeeds in the project.”

And Stapp makes a case for making development a local investment.

“Big banks … want big, national merchant tenants. They believe those tenants are less risky, but in reality, this can be a false sense of security,” he says, noting that local merchants are typically great for the community because they’re very committed and more of the money stays local. He also points out that 88 percent of retail firms employ 20 or fewer people, so the great majority of businesses are small businesses. “Those are the ones having the toughest time getting a loan now,” he notes.

“In order to achieve community redevelopment, we need to look at the uniqueness and sense of place involved in different properties,” Stapp says. “We need local lending sources that are willing to help individuals and small businesses, that aren’t dependent on the formulas used by larger banks and decisions made far from the actual real estate locations.”

But Pollack does not anticipate another real estate crunch of today’s magnitude even in the industry’s normal up-and-down cycle. “This was caused by a bunch of one-off events on a national scale. There was a new financial instrument in the market, and banks securitized but didn’t know what they were getting into,” he says, drawing a parallel between the common wisdom that single-family housing never went down in price to the belief of 400 years ago that the world was flat — something that everybody “just knew” was true. “People bought into what was a bad job by rating agencies, Wall Street, banks and borrowers.” Such a confluence of events, he says, “is unlikely to happen in tandem again … not for decades … not until there’s a new instrument.”

CB Richard Ellis cbre.com Canada Arizona Business Council canaz.net Elliott D. Pollack & Company edpco.com Meritage Homes meritagehomes.com RE/MAX Excalibur excaliburrealestate.com Red Development reddevelopment.com Robson Resort Communities

robson.com

W. P. Carey School of Business wpcarey.asu.edu Wells Fargo wellsfargo.com

In Business Magazine

27

Management

Decisions that Matter

Mediate Out of Workplace Conflicts

Four tips for having conflict-busting conversations in the workplace

by Steven Dinkin

Disagreements, disputes and honest differences are normal in any workplace. When these normal occurrences are treated as opportunities for exploring new ideas about projects, they can become catalysts for increased energy and productivity. Getting to that place starts with an honest discussion.

My co-authors, Barbara Filner and Lisa Maxwell, and I offer proven tools for resolving emotionally charged disputes in a four-stage, structured process specifically designed to encourage discussion of all the issues in a dispute — even the intense, emotional issues — in ways that are more productive than a gripe session. Using structure and skills similar to those mediators use, managers can break down barriers — and create changes that have a positive effect on the entire work force.

A key difference between managers and mediators is that managers are not expected to be neutral. They have the responsibility of reinforcing the interests of the department and the company for which they work, yet often lack the right combination of skills and structure, as well as the finesse, to express the needs of the company.

Start by resisting the temptation to simply tell people what to do.

Actively engaging your employees in problem-solving helps them take responsibility for the problem and for the solution. When you know how to address workplace conflicts properly, these challenging situations can lead to creative resolutions that re-energize the workplace and bring new ideas to old problems. The following tips will teach you how to turn your next meeting with conflicting employees into a productive conversation.

Start with an icebreaker. Most people will be ready to complain, debate or argue at the beginning of any conflict-based conversation.

They have marshaled their most compelling arguments and are ready for battle. If you go straight to the topic of controversy, most people will quickly get stuck in defending their positions and attacking their opponents.

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That’s why you need to do something different. An icebreaker is not just a light introductory activity; it is a way to non-confrontationally initiate a conversation about difficult issues. An ideal icebreaker asks for a person’s own take on something that’s both work-related and positive.

For example, if the conflict involves two employees involved in the same project, you might break the ice by asking each of them how they became involved in the project and what they hoped to achieve.

Listen. Conflict resolution is tricky because too many managers ignore the fact that sometimes what they aren’t saying is more important than what they are saying. Often, the best resolutions come from listening carefully to what the other person has to say. Being an active listener sends the message that you are genuinely concerned about him or her and the dispute. Put plain and simply, it’s the best way to get good information.

Ask an open-ended question. It can be as simple as, “So tell me, what’s going on?” Then listen carefully to that person’s side of the story.

You’ll know it’s time to insert yourself into the conversation when the discussion turns negative.

You can acknowledge someone’s emotions without seeming like you are taking his or her side. Especially at the beginning of talking about a conflict, you’re building rapport, even if it’s with an employee you’ve spoken with millions of times before. When there’s a conflict, you’re treading on new ground, and showing that person you are willing to see his or her side of the story is how you will set the foundation for working toward a solution.

Use and encourage positive language. This one might seem like a no-brainer, but any frustrated manager knows how easy it can be to slip into negativity after a conflict has affected a workgroup. Always think before you speak. Use positive, easy-to-understand language. Don’t fall into repeating, verbatim, paragraphs from your company’s HR manual.

inbusinessmag.com

Books Remember, you’re having a conversation, not a trial. If you keep the language positive, whomever you’re addressing will likely mirror what you’re doing. Even referring to the department’s needs can be stated in very positive terms, which will lead to a more collaborative (rather than punitive) tone in the discussion. For example, if the manager says, “This has increasingly affected the entire team, and we need to address it so we can get everyone focused back on the project goals and having a comfortable working environment. I am looking forward to establishing a good working relationship between the two of you and improving morale for everyone on the team,” it will set a constructive atmosphere. When you keep things positive, you can work toward great solutions efficiently and effectively.

Work toward SMART solutions. Sustainable solutions are SMART solutions. That means they are: Specific: Be clear about who will do what, when, where and how.

Measurable: Be clear about how you will all be able to tell that something has been done, achieved or completed.

Achievable: Make sure that whatever solution you agree on fits the situation, that it complies with both the law and organizational policy, and that everyone involved has the ability and opportunity to do what is required of them. Don’t set up anyone to fail.

Realistic: Check calendar dates for holidays and vacations, look at past performance to predict future actions, allow extra time for glitches and delays, and don’t assume that the best-case scenarios will come true.

Timed: Create reasonable deadlines or target dates; include a few ideas about what to do if something unexpected occurs and be willing to set new dates if necessary.

Once you have your SMART solutions in place, immediately put them in writing. Putting solutions in writing is very important, and not just for legal reasons (and for covering your back). It’s a way to honor the work that you and your employees have accomplished. It’s also a way to keep people’s memories from diverging from the agreed-upon solutions. Verbal agreements have a way of being remembered very differently by different people — and then becoming the subject of another conflict. It’s safer and easier for everyone to have the solutions written down in order to be able to easily verify them later.

Disputes, full of emotional complexities and interpersonal histories, are the headaches of the workplace. They’re always going to pop up, even in the most cordial of workplace environments. The good news is that when you’re armed with the tools you need to work toward productive resolutions, you and your employees can use them to strengthen your organization rather than harm it.

The Exchange: A Bold and Proven Approach to Resolving Workplace Conflict ncrconline.com

Steven P. Dinkin, president of National Conflict Resolution Center, has taught mediation courses in the United States, Europe and Latin America, and served as an employment and workplace mediator for the Equal Employment Opportunity Commission and other federal agencies. Barbara Filner, a former teacher, labor union official and analyst in local and state government, has designed and conducted workshops on mediation and conflict resolution in the workplace in both the United States and Europe. Lisa Maxwell, director of the training institute at NCRC, has developed curricula and taught courses at the high school and university levels, and has helped businesses, the military and nonprofit organizations find creative, effective ways to manage conflicts.

inbusinessmag.com

Leadership & Management

Take the Lead: Motivate, Inspire, and Bring Out the Best in Yourself and Everyone Around You From the Oval Office to the playground, cabinet meetings to kitchen tables, in public life and private, Betsy Myers has seen firsthand the emergence of a new leadership model in which having all the answers up front is less important than asking the right questions, where strength is derived less from the power you wield than from how you make the people around you feel.

Betsy Myers $25.00 • Atria Books On shelves and online

Sun Tzu and the Art of Business: Six Strategic Principles for Managers More than two millennia ago, the famous Chinese general Sun Tzu wrote the classic work on military strategy, The Art of War. Now, in a new edition of Sun Tzu and the Art of Business, Mark McNeilly shows how Sun Tzu’s strategic principles can be applied to 21stcentury business. McNeilly explains how to gain market share without inciting competitive retaliation, how to attack competitors’ weak points and how to maximize market information for competitive advantage.

Mark R. McNeilly $19.95 • Oxford University Press Oct. 2011, Revised

How to Be an Even Better Manager: A Complete A-Z of Proven Techniques and Essential Skills This practical guide has been updated to take account of recently developed approaches to management. No book can tell managers what to do in every situation, but this book does provide guidelines that will help build managerial knowledge and skills. It covers 50 self-contained topics that can be dipped into, but fall into the three brand categories any manager needs to be competent in: managing people, managing activities, and managing and developing him- or herself.

Michael Armstrong $22.95 • Kogan Page Ltd. Nov. 2011, Eighth Ed.

The Six Secrets of Change: What the Best Leaders Do to Help Their Organizations Survive and Thrive Successful organizations adjust quickly and intelligently to shifts in consumer tastes, political climate and economic opportunity.

How do they do it? The Six Secrets of Change explores essential lessons for business and public-sector leaders for thriving in today’s complex environment.

Michael Fullan $17.95 • Wiley, John & Sons Nov. 2011

In Business Magazine

29

Law

Legal Matters to Business

For the Records: Technology Advances e-Discovery and Information Management Technology eases the burden in costly litigation-related records searches

by Don Harris

Advances in technology are making the growing field of e-Discovery faster, less expensive and as a result, more popular.

That’s the good news for businesses having to produce documents as they respond to or initiate litigation, but they still must make document management decisions even in this day of vast, easy and cheap storage capability.

Understanding how e-Discovery works can help businesses determine what records to keep or delete — and the know-how is not just for major corporations. Some small and mediumsized businesses are highly litigious, including those in the fields of construction, banking and healthcare. Experts say having an effective information management policy is critical.

E-Discovery, short for electronic discovery, involves a process, including court-ordered or even government-sanctioned hacking, whereby electronic data is sought and searched for possible use as evidence in a civil or criminal legal case. Lawyers need not be concerned that they will be replaced by technology, though e-Discovery is considered more accurate and efficient than document searches conducted by hand. Experts say e-Discovery allows lawyers to do what they’re paid to do — try a case, not pore over mountains of documents.

What’s more, digital data can be electronically searched easily, whereas paper

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documents must be scrutinized manually.

Electronic information subject to e-Discovery includes Word documents, spreadsheets, e-mail and audio and video recordings. E-mail is considered the most problematic.

Tom Turner, president and founding partner of Document Solutions, Inc., a Nashville-based litigation support company that provides advanced electronic discovery and digital forensics services, says failure to have an information-management e-Discovery policy results in over-zealous storage of unneeded documents. “I’ve met with clients who had boxes of documents involving employees who had been dead for 15 years,” Turner says.

He doesn’t recommend a specific timeframe for saving documents. “We do recommend that if you don’t need to keep it for business or regulatory purposes, get rid of it,” Turner says.

“Delete it off your system. Shred it. Don’t put it in a box. Don’t send it off-site to be stored.”

The No. 1 place to look for unneeded documents is e-mail, Turner says. Generally, only 10 percent or less of e-mail might be relevant in litigation. Companies that keep what could be considered stale e-mail pay the additional cost of e-Discovery. The more documents they save, the bigger the e-Discovery bill.

But attorney Wendy Akbar of the Phoenix office of Quarles & Brady says that saved

e-mails can be significant. “For example, a company is entitled to the other side’s key e-mails on relevant issues,” she says. “People watch what they say with far less frequency in informal and private e-mails, expressing opinions and emotions on business concerns that can later turn out to be Exhibit A in the courtroom.”

“The good news,” says Turner, “is that new technology allows us to do more, faster and more cost-efficient. At the same time, the volume of information corporations are generating is growing exponentially. And what’s worse, electronic data is so inexpensive to store.”

When e-Discovery burst on the scene a decade ago, the cost was about $20,000 to manage and convert 50 gigabytes of information to a format for attorneys to examine. It would have taken several weeks to process 50 gigabytes — or what amounts to some 6-million pages, Turner says. Today, that same task is completed in a day, resulting in a substantial saving of time and money.

Lawyers rely on such software programs as Concordance and Ringtail, for example, which can convert TIFFs and PDFs into searchable data; search for key terms, phrases, dates or e-mail addresses; categorize and tag documents; and allow multiple reviewers to work on the same case from different locations.

Other software programs, including Clearwell

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and Cataphora, can find documents through searches linked to a specific term even if those documents do not contain that term, organize documents with similar content, and detect sentiment in an e-mail and changes in an author›s writing style, which can indicate patterns of data deletion.

Akbar says the technological aspects of e-Discovery definitely can make a lawyer’s job easier. “What makes many electronic documents different from paper documents is that they are living creatures and not static images,” she says. “Metadata refers to the little pieces of information embedded in each electronic document, such as the author, date of creation, dates edited, actual edits and so on.

“The metadata of electronic documents provide the information needed to code and sort the documents into categories for easier review. It provides an easy way to track relationships between, for example, e-mails and other documents like attachments, and to follow a string of e-mails sent, forwarded, saved and received over time. The metadata can also reveal ‘smoking gun’ type information, such as information about earlier versions of a document — say, a contract or board minutes — that could reveal crucial information about a case.”

Mark Walker, senior director of consulting and client services for Forensics Consulting Solutions in Phoenix, says it’s not difficult to delete unwanted information. “The more time that passes beyond the delete event, the less likely it will be that anything useful will be recovered,” Walker says. “That said, there have obviously been instances where very useful information has been recovered. Selecting the right forensic adviser is critical.”

Looking ahead to even more technology advances, Walker says, “There is a great deal of discussion, hope and confidence that a trend toward ‘automated review’ or ‘predictive coding’ will gain confidence and help further reduce review costs.” While some methodologies utilize technology and others concentrate on workflow, most use a combination of both, according to Walker.

“The technology is available. It is the adoption of that technology and workflows that is, hopefully, just around the corner.”

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31

NonProfit

Investing in Community

by Alison Stanton

American Heart Association: Helping Hearts Stay Healthy Since 1924, the American Heart Association has worked hard at its mission: to build healthier lives free of cardiovascular disease and stroke. In order to help achieve these goals, explains Kelly Grose, senior vice president for the Greater Phoenix Division of the American Heart Association, the nonprofit organization works hard to raise money that can be used for research focused on finding ways to eliminate these serious health issues.

During fiscal year 2009-2010, the Greater Phoenix Division raised $4.2 million, according to Grose, primarily through individual contributions, family contributions, youth programs and special fundraising events. “Most of our money is raised through special events, and we have three right here in Arizona,” she says. “We have the Heart Ball, and then the Go Red for Women Luncheon and the Heart Walk.”

All monies raised go to the whole organization, not just the local division, says Grose, noting, “The majority of our funding goes toward research and community education and awareness.” The Halle Heart Children’s Museum, located in the Tempe office of the American Heart Association, reopened in January after a $2.54 million renovation, and welcomed 17,500 2nd- and 5th-graders for tours in the first five months following its reopening.

■■ EVENT: Heart Ball 2011, Saturday, Nov. 19, starting at 6:30 p.m., at The Phoenician in Scottsdale. Event website: phoenixheartball.org.

■■ The Greater Phoenix Division has 21 people on staff and more than 17,000 volunteers.

■■ Greater Phoenix is one of the top 13 markets in the country in both size and funds raised.

■■ In Maricopa County, heart disease and stroke are the #1 and #5 causes of death from chronic illness.

American Heart Association heart.org

■■ EVENT: Every Child Matters Luncheon, Thursday, Nov. 3, ■■ ■■ ■■ ■■

starting at 11 a.m. at the Arizona Biltmore in Phoenix. Tickets are $150.

Ten staff members and about 550 volunteers work at the nonprofit organization.

Each year, the nonprofit serves about 5,500 children at 110 sites run by a network of 32 individual social service agency partners.

Over the past two decades, the organization has helped more than 65,000 youth in Maricopa county alone.

Most of the children Free Arts serves have been removed from their families and live in foster homes.

Since 1993, Free Arts for Abused Children of Arizona has helped heal abused and homeless children with a unique and effective combination of arts, a therapy-based curriculum and mentoring. “Our volunteers help them channel emotions, release anger and express themselves in ways that foster self-confidence,” says Executive Director Barbara DuVal Fenster. “The Free Arts mission is to harness the therapeutic power of the arts to heal children who have never had the luxury of being a child.”

The nonprofit organization’s annual budget is $940,000, the majority of which comes from foundations, corporations, United Way and individuals who attend and contribute at special fundraising events.

“The largest expense by far is for our programs,” Fenster explains. The Mentor Program lasts 16 weeks and offers therapeutic arts and a close relationship with an adult to a group of young people living in one of the nonprofit’s partner facilities. Free Arts Days expose children to a variety of arts activities that allow them to be creative while bonding with an adult who cares about them. Multicultural Arts Camp Series and Professional Artist Series round out the programs offered by the organization.

Free Arts for Abused Children of Arizona freeartsaz.org

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

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inbusinessmag.com

Photos: American Heart Association (top), Free Arts for Abused Children of Arizona (bottom)

Free Arts: Using Art as an Antidote for Abuse

www.inbusinessmag.com

October 2011

O n t h e Ag e n D a

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

Save the Date: November Tempe Chamber of Commerce

Tempe State of the City Address Thurs., Nov. 10 — 7:00a – 9:00a The Tempe Chamber in conjunction with the City of Tempe will present the State of the City address by Mayor Hugh Hallman at The Buttes, a Marriott Resort, in Tempe. Members of the community are invited to attend for an update on the economic health of the City of Tempe.

The mayor will share his thoughts on the local social and economic climate along with his vision for the growth and future of Tempe and Arizona.

“The event gives people a feel for the city,” says Mary Ann Miller, president of the Tempe Chamber of Commerce.

“These are uncertain times for everyone.

It’s important for businesses to know what’s happening at the city, challenges the city is also facing and how it is handling them.” This event provides a valuable opportunity to enjoy a breakfast with civic, business and political leaders of the Valley. “Tempe is a net importer of jobs. What happens in Tempe impacts a lot of other organizations and jobs,” notes Miller.

This marks Hallman’s final appearance at the State of the City event, as he announced in June that he would not seek re-election as Tempe’s Mayor in 2012. Advance registration is required and includes breakfast. Members of the Tempe Chamber may attend for $50; —Mike Hunter non-members, $70.

Tempe Chamber of Commerce tempechamber.org

Greater Phoenix Chamber of Commerce

ATHENA Awards Tues., Oct. 24 — 10:45a – 1:30p The Greater Phoenix Chamber of Commerce will honor top Valley businesswomen at the 24th annual ATHENA Awards luncheon held at the Arizona Biltmore in Phoenix. The ATHENA Businesswoman of the Year Award recognizes one candidate from the public sector and one from the private sector, and the Young Professional Award honors an up-and-coming leader. The award, named after the goddess of Greek mythology, is granted to candidates who are recognized for their excellent business and leadership skills, community service, and the support and guidance they offer to other women. All nominees positively impact their communities and excel in their business careers.

The Greater Phoenix Chamber of Commerce has been honoring top Valley businesswomen in Phoenix since 1987.

The Chamber divided the award into two categories in 2008, one winner in the public sector and one in the private sector. The Young Professional Award also had its inception in 2008. There were 50 nominees in this year’s field, out of which The Chamber chose four finalists in each category. Finalists are announced about a month before the event, and the winners are named and awards given out during the luncheon. “We’re proud to recognize Valley businesswomen who demonstrate professional excellence, devote themselves to our community and mentor the next generation of outstanding leaders,” Todd Sanders, president and CEO of the Greater Phoenix Chamber of Commerce, says. “We look forward to this event every year as it’s an opportunity to come together and celebrate as a community.”

—Brett Maxwell The Greater Phoenix Chamber of Commerce gpec.org

Notable Dates This Month Mon., Oct. 10 Columbus Day observed Wed., Oct. 12 Columbus Day Mon., Oct. 31 Halloween Agenda events are submitted by the organizations and are subject to change. Please check with the organization to ensure accuracy. www.inbusinessmag.com.

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October 2011

AHWATUKEE FOOTHILLS CHAMBER OF COMMERCE USA Income Tax Services Presents “Don’t Let Uncle Sam Take You to the Cleaners” Tues., Oct. 4 Noon – 1:00p

3:00p – 4:30p

This class discusses in detail two methods to control workers’ compensation costs.

Members: $10; non-members: $30 Prescott Public Library 221 S. Marina St., Prescott asba.com/events

ECONOMIC CLUB OF PHOENIX Speaker Series Thurs., Oct. 6 11:30a – 1:30p

Speaker: Gary Dirks, director of ASU LightWorks and former president of BP Asia Pacific and BP China. Lunch is included. $75 The Westin Kierland Resort & Spa 6902 E. Greenway Pkwy., Scottsdale econclubphx.org

Attend our entertaining, fast-paced seminar to learn how to take advantage of strategies to avoid taxes you don’t need to pay. Lunch will be served.

Free Ahwatukee Foothills Chamber 3840 E. Ray Rd., Phoenix (480) 409-0829

West Valley Small Business Workshop

ARIZONA CHAMBER OF COMMERCE AND INDUSTRY

Effective Sales Skills Workshop

18th Annual Auction Gala

“Creating your Total Value and Communicating the Benefits of your Solution,” presented by Mike Leeds, Pro Sales Coaching, LLC. Members: $35; non-members: $55 ASBA’s Business Education Center 4600 E. Washington St., Phoenix asba.com/events

Dinner, silent auction, limited live auction and the comedy of Michael Finney. An enjoyable evening for all. $50 Glendale Civic Center 5750 W. Glenn Dr., Glendale Monika Nylund, (623) 937-4754

Labor Law Presentation: New Rules, New Regulations, New Mindset Fri., Oct., 7

Need to know what new rules and regulations apply — or soon will apply — to your work force? Join us for a freewheeling discussion with Steptoe & Johnson LLP labor law partner Steve Wheeless.

Members: $15; non-members: $30 Arizona Chamber of Commerce and Industry 3200 N. Central Ave., Phoenix azchamber.com

Eggs & Issues with Congressman David Schweikert Thurs., Oct. 20 7:00a – 9:00a

Join us for a special discussion on the state of the U.S. economy, featuring Congressman David Schweikert, the only Arizona member of Congress currently serving on the House Financial Services Committee.

Members: $40; non-members: $55 The Scottsdale Plaza Resort 7200 N. Scottsdale Rd., Scottsdale azchamber.com

ARIZONA HISPANIC CHAMBER OF COMMERCE 31st Annual El Torreo de las Conexiónes Fri., Oct. 14 6:00a start

Golf with Arizona’s top corporate leaders and small business owners. Breakfast and lunch will be provided for all players. Plus contests, awards and prizes!

Ocotillo Golf Resort 3751 S. Clubhouse Dr., Chandler Norma Macias, (602) 294-6081

ARIZONA SMALL BUSINESS ASSOCIATION Take the Pinch Out of Workers’ Compensation

Wed., Oct. 12 8:00a – Noon

Free Estrella Professional Center, 15655 W. Roosevelt St., Goodyear asba.com/events Wed., Oct. 19 3:00p – 4:30p

OSHA 10-Hour for Construction Wed., Oct. 26 & Thurs., Oct. 27 Noon – 5:30p; 8:00a – 1:30p

Program will provide a variety of training on construction safety and health subjects to employers and workers who require basic information about preventing workplace accidents.

Members: $50; non-members: $100 ASBA’s Business Education Center 4600 E. Washington St., Phoenix asba.com/events

ARIZONA TECHNOLOGY COUNCIL Council Connect: Brand Your Business like Your Favorite Restaurant Wed., Oct. 19 11:30a – 1:30p

Presented by Miss Details Design.

Branding experts in the hospitality industry will share information about developing a memorable and engaging brand. Lunch is included.

Members: $25; non-members: $45.

Seasons 52 2502 E. Camelback Rd., Phoenix aztechcouncil.org

CENTRAL PHOENIX WOMEN Luncheon

Tues., Oct. 11 11:30a – 1:00p

Kathy Heasley will present the leadership topic “Heart & Mind® Branding” $75 The Ritz-Carlton 2401 E. Camelback Rd., Phoenix centralphoenixwomen.org

GLENDALE CHAMBER OF COMMERCE Fri., Oct. 28 6:00p – 9:00p

GREATER PHOENIX BLACK CHAMBER OF COMMERCE Leadership Summit PII — Pathways to a Healthy Business, a Healthy Community & a Healthy You Fri., Oct. 21 8:00a – 5:00p

We’re bringing the nurses to you! Visit our corporate members’ tables and learn how their organization values diversity and inclusion. Network with a diverse pool of small-business owners, corporate professionals, healthcare experts and business professionals.

Members: $20; non-members: $45 Wyndham 50 E. Adams, Phoenix phoenixblackchamber.com

GREATER PHOENIX CHAMBER OF COMMERCE 24th Annual ATHENA Awards Luncheon Tues., Oct. 25 10:45a – 1:30p

Celebrate the Annual ATHENA awards and honor Valley businesswomen for their excellence in business and leadership, exemplary community service, and support and mentorship of other women.

Members and nominees: $65; non-members $75 Arizona Biltmore Resort & Spa 2400 E. Missouri Ave., Phoenix phoenixchamber.com

GREATER PHOENIX ECONOMIC COUNCIL 2011 Annual Dinner Thurs., Oct. 13 5:30p – 9:00p

Each year, GPEC recognizes two leaders for their commitment and dedication to helping advance the region.

Members: $150; non-members: $175 Arizona Biltmore Resort & Spa 2400 E. Missouri Ave., Phoenix Be Ward, (602) 262-8614

MESA CHAMBER OF COMMERCE East Valley Business Expo 2011 Wed., Oct. 5 2:00p – 6:00p

A partnership among Chandler, Glendale, Mesa and Tempe chambers of commerce, this event provides the networking opportunities and businessto-business contacts vital to grow your business.

Free admission with business card Mesa Convention Center 201 N. Center St., Mesa eastvalleybusinessexpo.com

NATIONAL ASSOCIATION OF WOMEN BUSINESS OWNERS East Valley Happy Hour Thurs., Oct. 6 4:30p – 6:30p

Share business successes and challenges and get input from other women business owners.

Free Trader Vic’s 6850 E. Main St., Scottsdale nawbophx.org

NAWBO University Wed., Oct. 12 9:30a – 11:00a

Finance: “How do you know when it’s time to hire a professional bookkeeper/ accountant?” Members: $15; nonmembers: $30 Phoenix Country Club 2901 N. 7th St., Phoenix nawbophx.org

Luncheon

Wed., Oct. 12 10:45a – 1:00p

“Meet Women Policy Makers Who Are Shaping Our Future.” Find out why some of our legislative and statewide women leaders in public policy wanted to run for office, how and why business leaders can make a difference at the Capitol, the current state of the budget, what’s ahead and much more.

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

Thurs., Oct. 6

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inbusinessmag.com

www.inbusinessmag.com

NORTH SCOTTSDALE CHAMBER OF COMMERCE Business Resource Lunch Wed., Oct. 12 11:30p – 1:00p

Enjoy great food and networking in a casual business atmosphere. Guest speaker: Brent DeRaad, Scottsdale CVB. Members: $15; guests: $25 Scottsdale Resort & Athletic Club 8225 E. Indian Bend Rd., Scottsdale (480) 991-1571

Free; members only Surprise Regional Chamber Conference Center 16126 N. Civic Center Pkwy., Surprise surpriseregionalchamber.com

Newsmakers Luncheon Fri., Oct. 14 11:30a – 1:00p

SCOTTSDALE AREA CHAMBER OF COMMERCE

Join with your fellow chamber members and guests for an informative presentation from an Arizona newsmaker, and network with your fellow chamber members. Our speaker this month is Senator John Nelson, who has served on the House Transportation Judiciary, Counties and Municipalities (vice chair) and presently serves on the Government and Retirement Committee, Transportation Committee, and Utilities and Municipalities Committee (Chair).

Members: $15 ($5 early registration discount); non-members: $20 Anacapa Restaurant, Corte Bella Country Club 22129 N. Mission Dr., Sun City West surpriseregionalchamber.com

Airpark Forum,

Annual SRCC Golf Tournament

5th Anniversary Celebration Wed., Oct. 19 5:00p – 8:00p

Come join in all the festivities as the North Scottsdale Chamber hosts its annual Anniversary Celebration.

Free Outside the NSCC Office 14301 N. 87th St., Scottsdale northscottsdalechamber.org

Thurs. Oct. 6 7:15a – 9:00a

With topics ranging from development to transportation, social media strategy to financing tips, this event promises Airpark business leaders access to opportunities, connections and insight that will help them make informed decisions that help them grow their business and get connected to the community. $25 XONA Resort Suites 7677 E. Princess Blvd., Scottsdale Calleen Sorensen, (480) 949-6282

SURPRISE REGIONAL CHAMBER OF COMMERCE Traffic Catcher Workshop Tues., Oct. 4 8:30a – 10:00a

Chamber members invited to a Traffic Catcher Website workshop for assistance in initial setup, or help to manage your existing traffic catcher website. Limited to first ten members.

Please register to attend.

Free; members only Surprise Regional Chamber Conference Center 16126 N. Civic Center Pkwy., Surprise surpriseregionalchamber.com

Doing Business in Surprise Wed., Oct. 5 8:00a – 9:30a

Join in this round table panel discussion to learn more about facilitating the way you do business in the City of Surprise. This program is presented once each quarter. Seating is limited so please register on the chamber website to secure a seat.-

inbusinessmag.com

Fri., Oct. 21 6:30 registration; 7:30a shotgun start.

Join us for a morning of fun golf with competitive opportunities for golfers and non-golfers alike. Includes lunch.

Pre-registration required.

Before Oct. 1: $65; foursome: $250 After Oct. 1: $75; foursome: $300 Hillcrest Golf Course 20002 N. Star Ridge Dr., Sun City West surpriseregionalchamber.com

TEMPE CHAMBER OF COMMERCE Hot Topics and Lunch: Supercharge Your Holiday Sales Season Thurs., Oct. 20 11:30a – 1:00p

Greg Chapman, president of Sitewire Marketspace Solutions, will give a playby-play on how retailers can increase foot traffic and sales for the holiday shopping season.

Members: $25; non-members: $35 Fiesta Resort Conference Center 2100 S. Priest Dr., Tempe tempechamber.org

State of the City Thurs., Nov. 10 7:00a – 9:00a

The Tempe Chamber in conjunction with the City of Tempe is pleased to present Mayor Hugh Hallman’s final State of the City Address. This event provides a valuable opportunity to enjoy a breakfast with civic, business and political leaders of the Valley. RSVP required.

Members: $50; non-members: $70 The Buttes, A Marriott Resort 2000 Westcourt Way, Tempe tempechamber.org

WEST VALLEY WOMEN

Ag e n d a

Net 10 Networking

'Woman of the Year' Luncheon

Mon., Oct. 10 & 24 6:30p – 8:30p

Tues., Oct. 4 11:30a – 1:00p

Celebrating our 2011 "Woman of the Year," Pat Horton. $35 SKYE 16844 Arrowhead Fountain Center Dr., Peoria westvalleywomen.org

Join the Net 10 Networking Group at 6:30pm at the Microsoft Store Scottsdale!

Be sure to bring 10 available dates/ times on your calendar so you can book appointments with your new contacts!

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

Spirit of Philanthropy Luncheon

Business for Breakfast

We will introduce our 2012 Philanthropy Partners $35 SKYE 16844 Arrowhead Fountain Center Dr., Peoria westvalleywomen.org

Sponsored by Phoenix Chamber of Commerce and Microsoft Store Free Scottsdale Microsoft Store 7014 E. Camelback Rd., Scottsdale scottsdaleevents@microsoft.com

WOMEN OF SCOTTSDALE

Mon., Oct. 17 8:30a – 10:00a

Tues., Nov. 1 11:30a – 1:00p

Enterprising Entrepreneurs Group Scottsdale Microsoft Store 7014 E. Camelback Road, Scottsdale, AZ scottsdaleevents@microsoft.com

13th Anniversary Luncheon Fri., Oct. 21 11:30a – 1:00p

Celebrate 13 years of connecting women in Scottsdale. $35 The Westin Kierland Resort and Spa 6902 E. Greenway Pkwy., Scottsdale womenofscottsdale.org

BUSINESS EVENTS The Technical Edge: Networking for Real Estate Professionals Mon., Oct. 2 4:00p – 5:30p

Wed., Oct. 12 7:00a – 8:30a

Enjoy fresh Starbucks coffee and breakfast goodies while mixing and sharing ideas and leads with other real estate professionals.

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

Women in Business Breakfast Social Tues., Oct. 25 8:30a – 10:00a

Please join us for a cup of Starbucks Coffee, continental breakfast treats and a valuable opportunity to mingle and connect with local female business professionals.

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

Product Innovation Management Annual Global Conference Sat., Oct. 29 – Wed., Nov. 2 Times vary per day

Research Forum, Saturday and Sunday. Conference Monday through Wednesday. Advance registration required. $90 Arizona Biltmore 2400 E. Missouri Ave., Phoenix conference.pdma.org

in business mag dot com Please confirm, as dates & times are subject to change.

In Business Magazine

35

Education

Series on Branding

Empower Your Company: Shoot for the Heart

By Kathy Heasley

In last month’s issue of In Business Magazine, we began our six-part series on this new way to build a business and build a brand.

In this second article, we’ll focus on the first stage of that process: finding your heart. If you think this subject is too weak for a business person, think again. Heart is anything but weak. Finding your heart and putting it out there takes courage, strength and commitment.

others. So he went after his life’s work with a vengeance and became extremely successful.

The Most Potent Power in Business Business schools tell you that emotion has no place in the workplace. But, actually, the opposite is true. Heart, which we define as the fire, that higher purpose, that something bigger than yourself, is the most potent power your business has. Miss tapping into it, miss sharing it, and you miss out on your company’s greatest asset.

That’s why the first stage in brand development is all about finding your heart. Without knowing what drives you, it’s impossible to go any further in the branding process and get it right.

Several years ago, we worked with an investment company. You might think there’d be little heart there, but, in fact, there was. The founder had a burning drive to help ordinary people become more financially secure — not because of commissions or profits or the next toy he wanted to buy, but because, during an earlier economic downturn, he had experienced first-hand the emotional pain of losing everything. It affected him profoundly and he wanted to stop it from happening to

Heart Turns Work into Life’s Work What we are talking about is purpose, your “why” behind your “what.” It’s the very thing that will inspire others and make your emerging brand real. And if you haven’t done the soul searching required to find your why, there’s no time like the present. To do it, ask yourself the tough questions: What gets you up in the morning? What was your greatest win?

Your greatest sorrow? Where do you want to be in five years? In 10 years? What do you want your legacy to be when you’re gone? Then, and perhaps most importantly, ask yourself, “Why?” as a follow-up to all those questions.

Eventually, you will get to the heart, although sometimes it takes a professional’s help.

If you’re wondering what makes the heart so powerful, consider what a former soldier told fellow entrepreneurs at a Heart & Mind Branding business seminar he attended. He was creating his post-military life following two tours of duty in Iraq, and during the presentation it dawned on him, “We made more progress when we connected heart to heart with the Iraqi people.” He had seen more than his share of combat overseas but said that, most of the time, his job was to win the Iraqi people over so they would accept our help. “When our orders told us to bark rules at them, we got resistance, we got nowhere.” He

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

Intro Sept. 2011

Heart

Message

Image

Actions

Systems

Oct. 2011

Nov. 2011

Dec. 2011

Jan. 2012

Feb. 2012

To reference published segments, please access the archived issue on the In Business Magazine website, www.inbusinessmag.com.

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found that we are emotional beings. We buy with our hearts and justify with our minds; what goes for buying products, ideas and services also goes for winning people over.

Emotion is everything.

Heart Is for All Businesses and All People Yes, heart is alive and well even in realms where you might least expect it — such as the financial industry and the military. Heart isn’t just for nonprofit businesses. It’s for all businesses.

Have you ever heard someone say, “… win the hearts and minds …”? The reason heart and mind are in that order is, when you connect with people’s hearts, they let you into their minds.

Our soldier said the mind-first method was ineffective. And we’re all shoppers who make emotional purchases, so we know it doesn’t work on Main Street. Why, then, do we for one minute think it will work on Wall Street?

Too many businesses, public and private, insist on emphasizing the mind side of business — the spreadsheets, the objectives, the sales quotas — when we learned from the last article in this series that every successful brand needs both heart and mind. If you’re running your business based on the numbers alone, if you’re seldom or never allowing your team and your customers into your heart, you aren’t going to become a breakthrough brand.

The reasons are both inside and outside your company: Your team just won’t work hard enough for you; they won’t care enough. Your customers won’t connect with you; they’ll migrate to your competitors and shop price.

Wouldn’t you rather have an engaged work force? Customers who are brand loyal? And a job that is a life’s purpose? Well, then, get busy and find your heart.

Heasley & Partners, Inc. heasleyandpartners.com

Kathy Heasley is founder and principal of HEASLEY&PARTNERS, Inc., a branding company that helps organizations grow and prosper. She’s the creator of Heart & Mind® Branding, a Rich Dad Advisor, author of multiple books and CDs, and international marketing and communications coach.

inbusinessmag.com

Scottsdale

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Orange County

San Francisco

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

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

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If you could have known, you SHOULD have known.® inbusinessmag.com

In Business Magazine

37

Education

Series on Growing Revenues

Sales Is Not a Bad Word First of a six-part series on building sales and increasing revenue for small and medium-sized business

By Mike Toney In Arizona, specifically Phoenix, we have a rich spectrum of resources to build amazing businesses. Have you ever wondered why more people don’t succeed in building them? In the United States, there are 27 million businesses, but 95 percent of them don’t break $1 million in annual revenue and 99.9 percent have fewer than 500 employees. Why? Is the problem a lack of effort, dedication or ideas for business? No, those are resources we have.

Many businesses grow from someone’s creativity, a genius attack or inherent rebellion against “the man”; I see amazing and infinite ways people make money as entrepreneurs. The inherent problems with being a small business owner are limited revenue and cash; you can’t grow or stay in business without them. Prior to a few years ago, banks were a valid place to borrow the funds to expand and grow, but many of these resources are not as available as they once were. In this series of articles, I will help you explore the art and science of growing revenue for your business, and supply methods and systems that you can deploy with simple modifications to your world or business.

Where Do Small Businesses Fail First?

Let’s look at a real-life example, a client whom I’ll call ABC Company. It was a small, $1-million manufacturing company in Mesa, Ariz., struggling to make a profit. Its factory was processing at 95 percent of capacity, and its executive leadership believed that, because the company was busy, it was successful. However, the company could not grow because it didn’t have reserves and extra cash. There always seemed to be unexpected expenses eating up any potential profit, like equipment breaking down, temporary labor or unplanned taxes, to name a few.

We examined the orders processed in one year — the size of the order and the company doing the ordering — and we found that 60 percent were less than $500. In fact, the

average order was $274. Think about how expensive it is to process an order; do order intake; order parts; do fulfillment, including setup and tooling; and ship. Each of these orders was losing them money and they didn’t know it. We found the root problem was the leadership had not defined who is and who is not the right customer for their business and made that clear to their sales team. In trying to reduce the barriers of entry for their salespeople and customers by allowing smaller orders, the company leadership inherently built a trap they couldn’t escape from.

Whether you have a sustainable business will be determined by honestly asking yourself if you know why you are in business. Answers like “We provide custom software,” “We provide the best technical support,” “We are here to feed our families” or “We spray bugs” miss the point. These are not “whys”; these are what you do. What you do and why you do it are two different things.

Focusing on What Makes You Money Your reason for being in business is not the same as vision or values. Those are important, but they come after the “why.” “Why” is the core purpose, the drive underlying people’s commitment to perform. Don’t be discouraged if you are struggling to answer this for yourself.

It’s never too late to declare your core purpose.

Back to the question “Why do most companies never break $1 million?” In the case of ABC Co., it’s because it was selling the wrong thing or selling to the wrong person! The spectrum of clients it retained annually was smaller clients who were legitimately absent of money. Because the core purpose had not been defined, the company couldn’t properly focus its efforts to hire the right salespeople, market to the right clients or charge the right amount of money to be profitable. Eighteen months after aligning the core purpose, there had been a 50 percent turnover in the sales team, and the

Oct. 2011: Sales is Nov. 2011: Silos and Dec. 2011: Systems not a bad word! We define structures of revenue and correct measures of what selling really is. and sales the sales

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company had fewer new clients annually but 75 percent more revenue. Now, fewer than 15 percent of its orders are less than $500. Three months ago, just two years after applying the new approach, ABC Co. received its first order greater than $32,000 because all the employees understand why they are doing what they do for the right customer.

If you know why your company exists, you know who you serve and who you don’t — and you know how to best communicate your company to your best prospects or potential customers.

Homework before the next article: Make sure you can answer the questions: Why does your company do what it does? Is it motivating? Does it create a motivated action from your team?

Conquest Training Systems, Inc. conquesttraining.com

For Michael Toney, CEO of Conquest Training Systems, the career jump to sales from designing missile defense and satellite systems grew out of his creating a successful “internal selling” process to get projects promptly, accurately and profitably completed. Toney later founded Conquest Training Systems, applying 20-plus years of education and experience in sales and sales training — including consulting with TRW, IBM, Allied Signal and other Fortune 50 corporations — to a dynamic program of leadership and consultative and strategic sales techniques.

Jan. 2012: Building Feb. 2012: your sales team correctly Recruiting and hiring the right player for the team

Mar. 2012: Strengthening the bench

inbusinessmag.com

We Value What We Own

by Mike Hunter

ASSETS

Bringing Back Power: The Mustang Boss 302

Seen and Heard: The Office Media System With news, entertainment and even social media being such a big part of shaping our business acumen, it is important to have access at the office. Installing a state-of-theart media system in your office puts the world at your fingertips.

The Bose VideoWave™ Entertainment System is a single system with built-in speakers and a single-control remote, making installation and use as easy as sending an e-mail. This new system from Bose combines the home theater system or multiple speakers with the video monitor itself. It is a 46-inch 1080p HD display, Bose surround sound “invisible“ speakers system, connections for satellite TV box, Blu-ray and gaming console — all in one.

Once your system is set up, the audio calibration system ensures the best sound possible for your room. It recognizes room size, shape and even furniture, and automatically adjusts the sound.

A minimalist universal remote is part of the system. Its few buttons control things you do most, like adjusting volume or changing channels. Everything else is as easy as touch, glide, click from the video screen.

Perfect for the executive suite, conference room or corporate lobby. $5,349 —Mike Hunter

First introduced in 1969, the Mustang Boss 302 was known to be a well-engineered powerhouse. At a time when Ford was building one great engine after another, the ’60s for this car manufacturer were a decade of discovery. In recent years, the powerful engines that Ford has produced are less about discovery and more about economy. “Ford is not just about being best in class performance, we are also about being best in fuel economy,” says Tim Hovik, general manager and partner at San Tan Ford in Gilbert, who has delivered two of these limited-production vehicles.

The 2012 Mustang Boss 302, with its 5.0 liter 4VTI-VCT V8 HO engine, brings back power in a big way. Redesigning it from the top down, the team of Ford engineers have “distilled a new model to its purest form; strengthening, lightening and refining each system to create a race car with a license plate,” according to Ford.

Available only through the factory (not by tuning or adding after-market parts) are two models: an all-powerful standard edition and the race-ready Laguna Seca with improved suspension, aerodynamic treatments and deleted rear seat.

“The team at Ford wanted to offer the Mustang enthusiast something really special,” explains David Pericak, Mustang chief engineer. “This is a front-to-back re-engineered Mustang with every system redesigned.” The new engineering provides for a 444-horsepower and 380-pound-foot of torque, production car while still offering a smooth idle for driving around town. A new Twin Independent Variable Camshaft Timing (Ti-VCT); a race-car inspired clutch with upgraded friction materials; and other brake, suspension and weight improvements give impressive performance and notable power to this 2012 revival.

With performance as the draw, the vehicle is standard with only “stock” amenities and no frills. While the model tested by In Business Magazine was equipped with RECARO cloth sport seats, ensuring a snug fit for the driver and front seat passenger, look to this car for power and some impressive current-generation Mustang styling. With 17 MPG city and 26 highway, this generation of the Boss is more economical than its predecessor and may just be that asset which will impress and get you from here to there.

“Clearly this is a vehicle for car enthusiasts. The customer that is a Boss customer knows about cars and is interested in top performance,” says City MPG . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Hovik. This Mustang puts fun back in Hwy MPG. . . . . . . . . . . . . . . . . . . . . . . . . . 26 driving.

—Mike Hunter 0-60 MPH. . . . . . . . . . . . . . . . . . . . 4.1 sec

2012 Mustang Boss 302

Transmission. . . . . . . 6-speed manual MSRP. . . . . . . . . . . . . . . . . . . . . . . . $40,145

Bose bose.com

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In Business Magazine

39

Power Lunch

Meals that Matter

The Morning Meeting The morning “quick coffee” can be one of the most efficient times to hook up to meet associates and clients. Here are a few morning hot spots perfect for that quick get-together for coffee or the high-powered breakfast meeting to clinch that deal.

Bistro 24 — Phoenix

This Ritz-Carlton restaurant is the official business meeting breakfast spot — formal, quiet and with a menu that will allow for whatever you and your clients desire. Perfect service and very private and exclusive for your top client or most intimate meeting.

2401 E. Camelback Rd. (602) 952-2424 ritz-carlton.com/phoenix

Paradise Bakery — Valleywide

Noon-time Unique: St. Francis for Lunch

by Mike Hunter

The concept behind Central Phoenix’s St. Francis (named for its location — St. Francis District) is an urban gathering place with fresh, high-quality food. Aaron Chamberlin accomplishes this but goes a step further by presenting tasty lunch, dinner and brunch menus in a modern-comfort atmosphere that is urban with a touch of the noontime hustle and bustle of a big-city restaurant.

Chamberlin opened St. Francis nearly two years ago and has been hell-bent on providing the perfect place for enthusiasts by focusing on what diners want — both in taste and surroundings. Phoenix native Chamberlin is the chef behind local hits like La Grande Orange and Chelsea’s Kitchen and has worked with great chefs around the world.

For lunch, the menu includes some light and healthy dishes that are not too fancy or too complex. Fresh, seasonal vegetables, rustic dishes and wood-fired flatbreads mean you and your clients will be pleased to be at St. Francis. The Heirloom Tomato & Cucumber Salad is tossed in a zinfandel wine vinaigrette with peppers, red onion, goat cheese and toasted pine nuts. The Del Real sandwich is a favorite, made with herb goat cheese, cucumbers, peppers, onion marmalade and avocado. This is the real deal. Others lunch faves include the French Onion Burger, Braised Beef Sandwich and Smoked Salmon Flatbread.

An old, 1950s original block building transformed to an edgy, urban space that is not just interesting to look at but makes this sometimes-crowded eatery an energetic place to be and even be seen is the setting for this chic joint. The bar area opens to an outdoor patio just off Camelback Road, which adds to the draw this time of year. Appointments are architecture at its best and evoke Chamberlin’s desire to be unique.

This place is great for the impromptu coffee meeting — the perfect neighborhood joint for a quick coffee, muffin and confab. Cafeteria-style, this breakfast bakery serves up everything from a warm omelette to your New York-style bagel.

Multiple locations paradisebakery.com

U.S. Egg — Valleywide

Just great breakfast and to-the-point service makes U.S. Egg a favorite for a breakfast meeting. From classic oatmeal to some of the best whole-wheat pancakes ever, this busy joint will satisfy any client's appetite.

Multiple locations useggrestaurant.com

ZuZu Café — Scottsdale

Classic American breakfast with all the modern décor of the Hotel Valley Ho in Old Town Scottsdale makes ZuZu a great pick. With views of the pool and courtyard, this retro restaurant has open tables and private booths. Good, old-fashioned ’50s-style service and menu items will take you back to mid-century America.

6850 E. Main Street (480) 421-7997 hotelvalleyho.com

Photo: St. Francis

St. Francis 111 E. Camelback Road, Phoenix (602) 200-8111 stfrancisaz.com

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Celebrating 25 years of serving the women business owners of Phoenix.

Fall 2011 • nawbophx.org

President’s Message About NAWBO

NAWBO® prides itself on being a global beacon for influence, ingenuity and action and is uniquely positioned to provide incisive commentary on issues of importance to women business owners.

NAWBO Phoenix propels women entrepreneurs into economic, social and political spheres of power.

Visit one of our FREE Welcome Meetings - For All New and Prospective Members.

They offer a casual, informational opportunity that both highlights the local and National benefits of NAWBO Membership. Plus, this is a great place to hear about the diversity in our benefits and determine if NAWBO is a fit for you and your business.

Please bring business cards too!

For more information, please visit NAWBOphx.org.

Phoenix Metropolitan Chapter of the National Association of Women Business Owners 4600 E. Washington Street, #300 Phoenix, AZ 85034 602-772-4985 info@NAWBOphx.org

This year is going to bring many opportunities for both myself and the NAWBO Phoenix membership. I am looking forward to “Building our Future through Experience.” This years’ theme is focused on bringing in more experienced and established members to help support and educate our members that are in the growth stage.

I am excited to have such a great team of women to work with on the board and help lead us through this challenging economy. We wouldn’t be able to do that if it wasn’t for our support from Corporate Sponsorship. They are the lifeline of this organization.

In September, ten women from our Phoenix chapter attended the NAWBO National conference in San Diego. And yes, as I write this letter from the event, I am sitting outside in 75 degree weather. By the time you read it the Arizona weather will hopefully be out of the 100 degree range. That itself is motivating.

At this conference we learned several new ideas from sister chapters across the country and also gained insight from the wonderful speakers to adapt into our daily lives and businesses.

Some of those speakers included Gail Blake on her book “Throw Out Fifty Things – Clean the Clutter, Find your Life” and an inspirational story from Lisa Price on how she started her company, Carol’s Daughter and grew it from $100 to $50 million.

The other message that we are bringing back is that NAWBO National is making a few changes that will help our membership in years to come. They announced the new leadership, including a new President/CEO, and also moving the headquarters back to DC. This will help us to be more Kristine Kassel connected to the pulse of small business in America.

President, NAWBO Phoenix Thanks again for the opportunity to serve our membership this year and for In Business Magazine for allowing us to reach out to a larger community. NAWBO Phoenix will be the place this year to help “Build our Future through Experience.”

For more information please visit www.nawbophx.org.

Kindest Regards, Kristine Kassel NAWBO Phoenix Chapter President 2011-2012

This issue Page 2

How healthy is your organization? Four Decisions ™ to Drive Business Growth

Page 4

How to choose the RIGHT accountant for your Business

Page 7

Keep Cost Under Control…

Try Outsourcing and more...

Phoenix Board Members at National NAWBO Conference in San Diego.

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How healthy is your organization?

Four Decisions™ to Drive Business Growth

By Sandy Kolberg Three common problems all business owners face are how to grow their business, how to scale it and how to make it sustainable. This article is the first of a series on strategy and execution. Sandy Kolberg, Ph.D. is certified Gazelles International Coach who works with companies to create sustainable growth for business clients.

Sandy Kolberg How healthy is your organization and what are you doing to make your business grow? After speaking with thought leaders and reading best practices books what appears to encompass the whole of business growth were the principles of the Four Decisions™. The concept comes from Verne Harnish’s work, Mastering the Rockefeller Habits and is a set of interlocking principles that drive growth. They are: People, Strategy, Execution and Cash.

People: In some capacity all businesses rely on people.

They include the employees of the company, the customers or clients they serve and the shareholders of the business. Separately and collectively they create the harmony and flow of the business. Getting the right mix of people with the skills needed for the organization is always a challenge.

When the right people are in the right seats doing the right jobs, the culture of the organization is solid and the business will run smoothly. Knowing where the sweet spot is for the product and services is the place where business growth happens easily. If the customers or clients of the company are satisfied with the products and services the employees provide, the customers buy the products and services more often and refer the company more often. If the employees are doing their jobs and clients are satisfied purchasers of products and services, shareholders see the profitability and growth of the company and all are happy. While this seems a little simplistic, it doesn’t happen without the next principle, Strategy.

Strategy: Companies may have the best products or provide the best services, but without a vision and a plan, there is no growth. Strategy provides the direction the company will take over time to expand and drive profitability. Strategy revolves around the foundational elements of the business; the core values, its purpose for being and the vision the owners have for the future. It involves a positioning of its products and services to a specific group of consumers. Business leaders and their teams meet at least annually to look at the business climate and decide the direction to take the business. They decide who is going to do what by when, what they will promise to accomplish for their work, and how they will deliver it to their clients. It is the vision of the future broken down into initiatives and

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driven by the critical numbers that it will take for that growth to occur. A business leader can have the best strategy and without execution of the plan, it will not grow.

Execution: The best made plans do not happen without the interlocking mechanism of people with the strategy.

What makes the difference between business growth and not is a combination of economic factors and the ability for people to execute on the strategy. What that takes are habits, discipline and processes. What the current economic situation has made very clear is the businesses that are run with efficiency and strong business systems and processes will weather change easier than those run reactively. Activities that are measured and tracked are accomplished. It is often the difference between a reactive and proactive culture. The reactive leader sees each new business trend as the savior that will make the business run smoother and grow. The proactive leader, who sets the vision, develops the strategy and then executes on that strategy sets a constant path for people development and business growth. The result is a culture of accountability where people know what they are supposed to do, how it is supposed to be done and what the expected outcomes will be. By measuring and tracking, the business stays on track, makes money and is profitable.

Cash: Some companies in some business climates make money regardless of how well they are run. That may have been true in the economic bubble and is certainly the exception in today’s business climate. Cash is the oxygen that allows the company to run. Cash flow allows for choices and without a steady inflow of cash the company will gasp and fail. It is cash reserve that makes for expansion and growth.

When taken individually each of the principles: people, strategy, execution and cash stand alone as good business practices. A focus on any one of them will create a tighter more harmonious business. Together they interlock to create a business poised for growth and sustainability no matter what is going on in the economy.

Putting a growth plan in place can be a big task, which is made easier when a business coach comes alongside the business owner to develop the plan and execute it. If you are curious about how well your company has developed these four crucial decisions, you and up to nine other members of your organization can take the Four Decisions Assessment through the author’s website. Visit: www.strategems-llc.com for your free assessment or come to the Mastering the Rockefeller Habits Four Decisions workshop on Thursday, November 17th and experience the process first hand REGISTER AT: http:// mrhphoenixworkshop.eventbrite.com.

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NAWBO NEWS

NAWBO’s six month Mentoring Program pairs established women business owners with those less experienced and has earned national recognition for both the structure and results. The program launches in November and NAWBO seeks both mentees and mentors. To provide insight to prospective participants we interviewed a long time mentor and a recent graduate.

MENTEE SHARLIE MCRANEY

As a new member, I was encouraged to join the Mentoring Program. With 30 years in management and responsibility for international business units, I knew how to create and execute business plans and grow businesses. How would this program help me?

I decided the Mentoring Program would introduce me to new people and help me build relationships.

Sharlie McRaney After listening to my experience, the mentoring director asked, “What do you want from this program and your Mentor?”

While I was not sure what I wanted from the program, I knew I needed a mentor who could withstand my strong personality and help me grow my business.

Mentor Pamela Smith did not allow me to steamroll over the program, but redefined it to satisfy my needs as they emerged. Within this framework, I discovered that while I considered myself an entrepreuer, there was a difference in having an entrepreuerial approach within a large corporatation compared to being a small business owner.

Focusing on this aspect allowed me freedom to explore and evaluate my business and most importantly, to increase profit.

My 2010 profit goal was exceeded by 154%.

Sharlie McRaney can be reached at sharlie@tighinteriors.com

MENTOR PAMELA SMITH

I have been mentoring business owners for more than five years. When I was in a mentoring program in 2006 it helped my business but it also helped me realize that I could give back to the community my business expertise and desire to volunteer via mentoring other businesses Monday through Friday while working.

Pamela Smith I have been honored to help women improve their businesses, attain goals, understand financial statements and connect them with others to further with their business growth. Most importantly I have developed deep-rooted professional and personal relationships that have outlasted any formal mentoring program.

I’m entering my sixth year of mentoring and I am serving as the Mentoring Director for NAWBO this year. I am grateful for the opportunity to help other professionals with their businesses.

NAWBO’s mentoring program is not just for start-ups. For more information on NAWBO’s program or to submit an application, visit nawbophx.org.

Pamela Smith can be reached at psmith@numbersetc.biz

Designing a Benefits Plan that Works for You We are your advocate in dealing with day-to-day issues. Our support and service to you and your employees and their family members is what separates us from other insurance brokers. We will service each employee with all his or her insurance-related questions, and we will provide you, the company, with comprehensive benefits administration and support.

Let us be your benefits department.

Contact us for a personalized quote today. arizona small business benefits

Exclusive Broker

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NAWBO NEWS

480.831.7700 www.benefitsbydesignaz.com

Human Resource Strategies

By Ginny McMinn McMinnHR

When thinking strategically about your business, include Human Resources in your plans.

Ginny McMinn Unplanned, inconsistent HR moves create staffing headaches, workplace issues, perhaps even legal troubles. To avoid these problems, set up basic HR systems based on job requirements and consistent actions.

Consider your business and the support it needs. If that includes employees, contractors, business services, temporaries or virtual assistants, some of the same principles apply to the process of hiring (or engaging) your support team: • Monitor workflow and your project pipeline, work backlog and deadlines, customer satisfaction, work hours for you and your current team, and other indicators that help is needed.

• If additional support is required, is the need consistent and long-lasting, or project-based and potentially short-lived?

• What results will you expect from the person or service?

• What skills and experience will be needed to get those results?

• How will you attract, select and engage the person with those skills?

Don’t add a team member without deciding the requirements; insist that the individual has the skills. Don’t hire whoever is convenient. Hire the person or service that will provide high-quality, timely results.

In a similar way, think about each employee- or support-related function. HR systems to consider include orientation and training; pay and benefits (or service budget), amount and manner of payment; expectations and performance or project management; policies, procedures, handbooks or contract specifics; communication, workplace culture, vendor relationships; and if employees rather than services, remember legal compliance, safety and security.

Preview the life cycle of the employee or service provider; make sure that each step along the way is systematic and serves your overall business strategies.

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NAWBO Board of Directors Executive Committee

Board of Directors

President Kristine Kassel Benefits By Design

Director of Communications Shawn Vallee Think Fresh Advertising

President-Elect (Bylaws Chair) Lynda Bishop Summit Alliance Solutions, LLC

Director of Corporate & Economic Development Amy Bruske Kolbe Corp

Secretary Marnee Weber The Caregiving Coach Finance Director Barbara Appenzeller Appenzeller & Associate, CPAs, P.C appenzeller@barbcpa.com Immediate Past President (Past President Chair) Cindy Hynes Hynes Benefits Consulting, LLC Executive Director NAWBO Office Deanna Anderson Organized Management Solutions, LLC

Directory of Marketing Services Nancy Sanders Three Dog Marketing Director of Membership Services Peggy Ridgley European Touch Interiors Director of Media Relations Lisa Bhella INBOX2OUTBOX, LLC Director of Programs Susan Ratliff Susan Ratliff Presents Inc. Director of Public Policy Ginger Lamb Arizona Capitol Times Ambassador Chair Cheryl Skummer Meridian Payment Systems Awards Chair Sandy Kolberg Strategems

Community Alliances/Diversity Chair Shelly Winson True Choice Benefits LLC Community Service Chair (ex-officio) Ginny McMinn McMinnHR Honorary Advisory Council/Past Presidents Council Chair (exofficio) Robin Orchard Orchard Medical Consulting Mentor Program Chair Pamela Smith NUMBERS etc Neighborhood NAWBO’s Chair Connie Zimmerlich ClickChick Photography NAWBO University Chair Dorothy Wolden Creative Intuition Membership Retention Chair Colleen O’Shaughnessy Met Life Red Affair Chair (ex-officio) Erin Finn Wines for Humanity Women’s Enterprise Foundation (ex-officio) Jackie Wzsalek Despins Printing & Graphics

The Women’s Enterprise Foundation WEF is a 501(c)3 charitable organization that supports and inspires emerging women business owners within the greater Phoenix area who have a demonstrated business development need or who would benefit from specialized educational training and development opportunities.

To learn more or to make a donation visit www.WEFPHX.org

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NAWBO NEWS

Strategy – Find Your Sandbox Every business - small or Fortune 500 - makes four decisions every day about people, strategy, execution and cash, according to Mastering the Rockefeller Habits by Verne Harnish.

All of these choices are Nancy Sanders important, but the most critical decision for you as a marketer involves your sandbox - where should your business play? Too few organizations are proactive about creating and executing a marketing strategy. Answering two questions will help you create and implement your plan.

Who do you want in your sandbox?

Please don’t say everyone or Fortune 500 firms. Your target market should be as narrow as possible. Your target market may be Arizona companies with revenue of $2 – 10 million dollars a year, that are growing at least five percent annually. You may define your market by product or service lines, demographic or distribution channels. Does that mean all your customers fit that profile? Maybe not; but this is the group of prospects

By Nancy Sanders

that you focus your marketing efforts and budget to attract. This is your sandbox.

What is your unique value?

Why do people buy from you? Harnish calls this your brand promise - the measurable outcome that your customers receive from working with you. This quantifiable result is why your clients do business with you instead of your competitors.

Once you determine why people buy from you, you can create compelling marketing messages and collateral that both builds your unique brand and provides a persuasive argument for doing business with you and your firm.

Creating your marketing strategy clearly requires more direction than this short article can provide but by answering these two questions, you’ll be on your way to developing a successful and productive marketing strategy for your company.

About the author: Nancy Sanders is an award-winning marketing expert, author and founder of Three Dog Marketing, a communications, marketing and sales firm. Nancy is committed to building strong relationships, creating value and producing results. Contact her at www.ThreeDogMarketing.com or 602.476.4509.

NAWBO Phoenix is on the move!

NAWBO Phoenix Metro Chapter celebrates 25 years of serving as the voice and vision of the women business owners of Phoenix. Recognized by Arizona Woman Magazine as The number 1 place to network in the Valley and by The Business Journal as one of the top 5 influential organizations in the Valley, NAWBO Phoenix is on the move.

Be part of the movement. Visit our web site today for membership information.

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October 12 Luncheon 10:45 AM - 01:00 PM

Tips on Executing Goals and Plans

By Lynda Bishop

“Dream Big, Plan Well, Take Action.”

This is the mantra of many business coaches and successful business owners. It is good advice and has taken many people to Lynda Bishop the finish line. Most business start with a big dream. Next comes the strategic plan and then plan execution (action).

It is important to distinguish between strategic planning (high-level agreements) and execution (ongoing process for taking action, reviewing and maintaining progress).

Following are four tips for being in productive action while avoiding common barriers to successful plan execution.

1. Be clear in your underlying strategy and make sure to communicate this clearly to everyone on

your team. Be sure everyone on your team shares the same vision and overall direction. Know why you are doing the things you are doing and what results each of your actions should produce.

2.

Make sure there is accountability built into your action plans. Set deadlines, minimum achievements, and who is ultimately accountable for each step. Review often along the way.

3. Dreaming big is good, but make sure your goals are realistic. Optimism is good, but make sure there is a solid structure around your plan and don’t count on luck for things to work out. Define your priorities until you are clear on what you must have versus what is nice to have versus what you can do without.

4.

Be flexible when circumstances outside of your control change. Let your plans and actions be dynamic, and your vision clear.

See you at the top!

NAWBO's Public Policy Day:

Meet Women Policy Makers Who are Shaping the Future Find out why some of our legislative and statewide women leaders in public policy wanted to run for office, how and why business leaders can make a difference at the Capitol, the current state of the budget, what's ahead and much more.

Confirmed panelists include: Senator Olivia Cajero-Bedford, Representative Karen Fann and Kimberly Yee, Commissioner Brenda Burns and Eileen Klein, Deputy Chief of Staff at Governor's Office.

For more information about our October 12 or November 9 luncheons, Please visit: Nawbophx.org

Budgeting and Saving Tips that will Prepare Women for the Future

By Deborah Bateman and Stephanie Poure

I’m a firm believer in empowering women to achieve financial success; one of the first steps is to know how to manage your income and properly save.

There are many free resources available to help budget, reduce debt and create a savings plan. Here are my five smart tips to successfully save money: • Create a Budget. Develop an easy-to-follow Deborah Bateman plan. First, review your net income, the money you have available after taxes. Next, know your expenses.

• Plan to Save. Instead of having one savings account, try opening several accounts and categorize them (ie. retirement, vacation, Christmas, college, etc.) Use direct deposit through your employer; this allows you to have a specific dollar amount or percentage of each Stephanie Poure check deposited directly into a savings account.

• Know your Credit Score. Make sure your credit score is accurate. It can determine what you pay for auto financing and leasing, credit cards,

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mortgages and insurance. Review your credit report regularly and check for errors. Limit the number of credit cards you open and most importantly, pay your bills on time.

• Cut Credit Card Debt. Stop using credit cards to prevent incurring additional debt. Review your credit card balances and make the minimum payment on every card each month. Additional money should go toward paying off the card with the highest interest rate.

• Utilize Online Banking. Online banking allows the luxury of having access to your accounts 24 hours a day. Setup automatic bill pay through online accounts to ensure that you won’t incur penalties for a missed or late payment.

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NAWBO NEWS

NAWBO PHOENIX Corporate Partners Presidential Corporate Partners National Bank of Arizona Salt River Project State Farm Insurance Strategic Corporate Partner National Bank of Arizona Media88 Executive Corporate Partners Benefits by Design Hynes Benefits Consulting Kolbe Corp Southwest Gas Snell & Wilmer, LLP University of Phoenix Wal-Mart The New Well Business Corporate Partners Arizona Public Service Border States Electric Bank of Arizona Clean N Fresh Carpet Cleaning Estate Plan Store Orchard Medical Consulting Paychex Price Kong, CPA The Car Source Wells Fargo Presidential Media Partners KFNX News-Talk Radio 1100 Strategic Media Partners Creative Intuition NetworkingPhoenix.com Executive Media Partner AZ Capitol Times Despins Printing and Graphics Easel Photography InBusiness Magazine CITY Sun Times KFNN 1510am Newsradio Media 88

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NAWBO NEWS

Attention: Bowlers, Non Bowlers, Fun Seekers, Nawbo Members and supporters From: Your favorite 501(c) 3 WEF Dust off your shoes, starch your shirt and get your bowling form ready to strike it rich for Women’s Enterprise Foundation….

We need your help to fund scholarships, grants and mentoring programs for emerging women business owners. “I am truly grateful because this has given me a chance to grow both individually and professionally.” Jill Workman – Wicked Wicker LLC , Scholarship winner – see the website for even more testimonials from recipients! $225 sponsors a team - includes food, soft drinks, 2 hours of unlimited bowling, shoe rental, and (5) raffle tickets for each bowler (up to 5 people) • Be a Team captain and form a team– Gather friends, family (kids welcome) or co-workers to have a great time!

Challenge another team to a friendly competition.

• Sponsor a team - We will get bowlers for you. You can cheer them on or stay in the comfort of your home! $50 sponsors an individual - includes food, soft drinks, 2 hours of unlimited bowling , shoe rental and (5) raffle tickets and the opportunity to make new friends on a team that needs you!! $$$$ any amount can be pledged to any WEF board member, team captain or single bowler… pledge any amount to help fund this most important mission.

Raffle prizes, Awards and Surprises Galore!!! Don’t miss this great event that will knock off your bowling shoes!!

Sign up with any WEF Board Member or make your pledge at www.wefphx.org – Call Jackie at 602-810-4005 if you have questions.

Let it Roll Bowling Lanes

8925 N. 12th Street, Phoenix, 85020 Sunday, November 6, 2011 12:30 Registration 1-3 p.m. Let it Roll Bowling 3:30 Awards

Get social with NAWBO Phoenix It’s a great way to stay informed on everything NAWBO Phoenix and expand your online network.

And don’t forget once you’re there to make a recommendation to let everyone else know how great it is to be a NAWBO Phoenix Member.

INDE X Index By Name Aaron Chamberlin, 40 Akbar, Wendy, 30 Akhenblit, Gelie, 14 Aleman, Eugenio, 22 Anderson, Bob, 18 Armstrong, Michael, 29 Barness, Dean, 12 Bateman, Deborah, 47 Beltran, Simon, 18 Bishop, Lynda, 47 Brown, Drew M., 10 Carney, Bryon R., 10 Colangelo, Jerry, 9 Dashew, Leslie, 18 Ebert, Michael, 22

Index by Company Accel Electric, 14 Advanced Strategy Center, 18 Ahwatukee Foothills Chamber of Commerce, 34 Alerus Bank & Trust, 17 American Heart Association, 32 Arizona Chamber of Commerce and Industry, 34 Arizona Commerce Authority, 9 Arizona Hispanic Chamber of Commerce, 34 Arizona Small Business Association, 34 Arizona Technology Council, 34 Aspen Family Business Group, 18 ATS Electric, 14 Avnet, 18 Behavior Research Center, 16 Benefits By Design, 44 Bistro 24, 40 Blue Cross Blue Shield of Arizona, 18 Buchalter Nemer, 37 Business Clubs America, 14 CB Richard Ellis, 22 Canada Arizona Business Council, 22

Fenster, Barbara DuVal, 32

Lein, Howard, 22

Sanders, Todd, 33

Fullan, Michael, 29

Lovato, John, 18

Selvey, Dean, 22

Gibson, Sandra, 18

Marick, John, 12

Shaub, Dave, 14

Griffen, Douglas, 18

McMinn, Ginny, 45

Smith, Pamela, 44

Grose, Kelly, 32

McNeilly, Mark R., 29

Smith, Stacie, 12

Gullett, Wes, 50

McRanie, Sharlie, 44

Spart, Bill, 22

Hamada, Rick, 18

Meyer, Bob, 20

Stanton, Greg, 50

Harper, Sharon, 10

Miller, Mary Ann, 33

Stapp, Mark, 22

Hayes, David, 14

Myers, Betsy, 29

Toney, Mike, 38

Heasley, Kathy, 36

Navran, Sue, 18

Turner, Tom, 30

Henig, Craig, 22

Pollack, Elliot, 22

Vallee, Roy, 18

Herro, C.R., 22

Poure, Stephanie, 47

Vest, Marshall, 16

Hovic, Tim, 39

Pryor, Greg, 12

Walker, Mark, 30

Kassel, Kristine, 41

Robson, Edward, 22

Williamson, Glenn, 22

Kolberg, Sandy, 43

Rosson, Eric, 22

Wright, Jerry, 14

Kopelman, Steve, 14

Sanders, Nancy, 46

Cassidy Turley BRE Commercial, 10

Greater Phoenix Economic Council, 34

Quarles & Brady, 30

Center for Services Leadership, 13

Haunt Holdings, 14

RE/MAX Excalibur, 22

Central Phoenix Women, 34

Heasley & Partners, 36

Red Development, 22

Children’s Museum of Phoenix, 19

Holmes Murphy, 21

Reliable Background Screening, 37

Conference Board, The, 16

Human Side of Enterprise, 18

Robson Resort Communities, 22

Conquest Training Systems, 8, 38

JDM Partners, 9

SCF Arizona, 2

Consumer Cellular, 12

Linda Land, 8

Scottsdale Area Chamber of Commerce, 35

DMB Associates, 10

Maricopa Workforce Connections, 15

Silverleaf Group, The, 7

DMB Realty Network, 7

Mayo Clinic, 52

St. Francis, 40

Document Solutions, Inc., 30

McMinn HR, 45

Surprise Regional Chamber of Commerce, 35

Doozy of a Deal, 12

Meritage Homes, 22

Target Commercial Interiors, 4

Economic Club of Phoenix, 34

Mesa Chamber of Commerce, 34

Tempe Chamber of Commerce, 33, 35

Eller College of Management, 16, 31

Musical Instrument Museum, 51

Three Dog Marketing, 46

Elliott D. Pollack & Company, 22

National Association of Women

Tigh Interiors, 44

Expect More Arizona, 3

Business Owners, 34, 41, 46

W. P. Carey School of Business, 13, 22

Fennemore Craig, 12

National Bank of Arizona, 5

Waste Management, 11

Forensics Consulting Solutions, 30

Nest, The, 14

Wells Fargo, 17, 22

Free Arts for Abused

NetworkingPhoenix.com, 14

West Valley Women, 35

North Scottsdale Chamber of Commerce, 35

Women of Scottsdale, 35

Gazelles International Coaches, 42

Numbers Etc., 44

Women’s Enterprise Foundation, 45

Glendale Chamber of Commerce, 34

Paradise Bakery, 40

ZuZu Café, 40

Greater Phoenix Black

Phoenix Children’s Hospital, 20

Children of Arizona, 32

Phoenix Zoo, 21

Chamber of Commerce, 34

Plaza Companies, 10

Greater Phoenix Chamber of Commerce, 33, 34

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49

Roundtable

A Candid Forum

Phoenix Mayoral Candidates Talk Business In the runoff election Nov. 8, residents of the City of Phoenix will decide which of the two frontrunners from August’s general election will be the city’s next mayor. In Business Magazine invited both candidates, Wes Gullett and Greg Stanton, to share their plans for business and economic growth.

What are three things you would do in your capacity as mayor to spur economic growth and employment in Phoenix?

It’s all about challenging the status quo: 1. I’ll keep a laser focus on job creation and make sure that every action taken, law passed and policy adopted has a positive impact on our economy. In most cases, we Wes Gullett need less government; not new ways to grow government.

2. We must stop the recently enacted water rate increase. The rate increase has taken millions out of our economy and increased costs on small business and Phoenix families.

3. I’ll make sure we have a government we can afford, by cutting costs, water rates, fees and taxes, and reducing the city’s regulatory red tape. On my website, I have a comprehensive jobs plan, which lays this all out in specific details.

Where do you see the economic growth coming from?

Small businesses have kept our economy going during these hard times and they will put us on the road to recovery. The small businesses of today are tomorrow’s Google and Dell Computer. We need to reduce the cost and red tape of opening and expanding a small business. My plan calls for strategic planning, setting annual goals with measurable outcomes, leveraging the city’s resources, modernizing government and investing in local businesses first. Unfortunately, the City of Phoenix has made a habit of raising taxes, fees and rates — which sends the wrong message to job creators.

How would you have the City of Phoenix work with the state agencies responsible for economic growth, such as the Arizona Commerce Authority?

I will spearhead collaboration, cooperation and partnership with key institutions, organizations, businesses and elected leaders throughout the Valley of the Sun — to maximize opportunities, leverage the region’s assets and promote the region at a national level. I have the wherewithal, temperament and relationships to bring people together. We need to roll up our sleeves on behalf of Arizona — Republicans, Democrats, Libertarians and Independents — and work together to make our state the entrepreneurial capital of America.

What are three things you would do in your capacity as mayor to spur economic growth and employment in Phoenix?

In my 100 Days plan, I outline 10 steps I will take starting on day one to lead Phoenix toward a strong, diverse economy. Three examples to accomplish that brighter economic future for Phoenix include: Greg Stanton 1. Work with the Greater Phoenix Economic Council to commence an aggressive economic development strategy to attract bioscience, healthcare, high-tech, solar and sustainability, and other high-wage industries to our region.

2. Appoint a Small and Local Business Advocate in the mayor’s office to work with city agencies and departments, as well as the local business community, to foster growth and development of small and locally owned businesses in Phoenix — placing an emphasis on ensuring that the city procurement process benefits our local economy.

3. I will identify and implement ways to minimize the red tape involved in opening a new business. We must encourage the development of small businesses, not hinder it.

Where do you see the economic growth coming from?

We need to create a more sustainable and diverse economy, so growth should come on multiple fronts. To be globally competitive, Phoenix must invest in bringing quality, high-paying jobs to our city combined with focused support for the small and local businesses that are the lifeblood of our communities. As a city council member, I led the way to bring TGen and the University of Arizona Medical School to Downtown in order to advance the sustainability of our city’s economic future. I will continue to bring that vision and commitment to the mayor’s office.

How would you have the City of Phoenix work with the state agencies responsible for economic growth, such as the Arizona Commerce Authority?

Representing the sixth-largest city in the country, the Mayor of Phoenix must be a regional leader. As mayor, I am committed to creating sustainable economic growth and will work with any organization that shares that commitment to help bring jobs to our state.

Wes Gullett wesgullett.com

Greg Stanton gregstantonformayor.com

Wes Gullett is a father, husband and businessman who brings an outsider’s perspective with experience in business and public service. Gullett is a founding partner in First Strategic, a communications and public affairs firm, where he has directed strategic communications planning efforts for businesses and job creators in fields that range from energy and education to healthcare and professional sports. He and his wife, Deb, have three children — Kelly, Katie and Nikki — and reside in Phoenix.

Greg Stanton grew up in west Phoenix and attended Cortez High School. He completed his undergraduate degree at Marquette University and his law degree at University of Michigan, then returned to his hometown of Phoenix. Making community service a priority while maintaining a busy law practice, Stanton has been recognized for his volunteerism and leadership with awards that include Arizona Big Brother of the Year. Stanton and his wife, Nicole, have a three-year-old son and one-year-old daughter.

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