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OCT. 2017

2017 Healthcare Decisions for Business Guide

Innovation IN

HEATHCARE What is healthcare doing to make us healthier?

Crisis

Communication

Innovation and Employee Buy-In Opioid Use Disorder’s

Business Impact $4.95 INBUSINESSPHX.COM

THIS ISSUE Tempe Chamber of Commerce Arizona Small Business Association


OCT. 2017

COVER STORY

22

Innovation in Healthcare

In Business Magazine explores new directions in which healthcare and healthcare-related services are expanding. Experts in that space discuss how those advances are making a difference to employers and employees. IN BUSINESS MAGAZINE

for Busines s

Guide

OCT. 2017

2017 Healthc are Decisio ns

HEALTHCARE

Innovation IN

HEATHCAR E

OCTOBER

What is healthcare doing to make us health ier?

Crisis

Communica tion

2017

Innovation and Buy-In

Employee

• INBUSINESSPHX.COM

Opioid Use

Business Disorder’s Impact

THIS ISSUE

Tempe Chamber of Commerce Arizona Small Business Association

$4.95 INBUSINESSPHX.COM

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Get a year of In Business Magazine Subscribe now at inbusinessphx.com

PARTNER SECTIONS TEMPE CHAMBER

ADVANTAGE

T E M P E C H A M B E R A D VA N TA G E

37

The 2nd Shoe Has Dropped! by Jack W. Lunsford, Arizona Small Business Association

On November 8, 2016, Arizona voters approved Proposition 206, The Fair Wages and Healthy Families Act. So, on January 1,

However, effective July 1st, the 2nd shoe from Prop. 206 dropped. Every business with one or more employees must now provide all employees with Mandatory Earned Paid Sick Leave (EPSL). Guess what? Most Arizona businesses don’t know that, and Arizona has 540,000 small businesses! The record keeping is onerous and time consuming. The costs of non-compliance could put businesses at non-compliance are costly, including legal costs fighting employee complaints. Take note: Ignorance of this law will be no excuse, yet the rules promulgated by the

In This Issue

January 2018. The good news: If businesses get into compliance quickly, they can reduce their loss exposure, and ASBA is leading the way to

Encouraging Employees to Save

assist all businesses to become compliant.

for Retirement Can Be Tricky, But

ASBA is presenting Prop. 206 workshops and soon will be offering them in Tucson and

Benefits of Having a

rural Arizona. ASBA will also be offering its

Networking Buddy

members email updates and website posts. ASBA’s immediate advice is: 1) Adopt a

Finding Joy in the

personnel manual, and have the employees

Midst of Stress

sign a receipt of acknowledgement. 2)

Why the 4th Quarter

Document, document, document! 3) Consider separating EPSL from your PTO benefit plan.

Is Critical!

Meanwhile, ASBA has already learned that

Central Arizona 4600 E. Washington St., Suite 340 Phoenix, AZ 85034 p. 602.306.4000

there are unique EPSL situations for almost every business, and our workshops attempt to provide answers to as many as possible. However, there are certain specific, uniform

Southern Arizona 3444 N. Country Club Rd. Suite 118 Tucson, AZ 85716 p. 520.327.0222 © 2017 ASBA. A publication of the Arizona Small Business Association. For more information or to join ASBA, please contact us at www.asba.com. Section designed by the Arizona Small Business Association.

provisions in the law effective now.

Employer Requirements: • Employees are entitled to EPSL. • Part-time and temporary workers are considered “employees”.

29

Books

New releases give fresh insights on business thinking.

34

Assets

2017 Mazda CX-9 Signature Edition Plus: More than ID, license plates make a statement.

every 30 hours worked to the maximum. request or use EPSL is prohibited. • Each employee has the right to file a complaint if EPSL is denied. paychecks: • •

EPSL available to the employee,

11

EPSL taken by the employee to date, and

Paid time the employee has received as EPSL.

• Employers shall not use qualifying EPSL absences in disciplining employees for excessive absences. • Employer is prohibited from retaliating against an employee for use of EPSL. • Employers are not required to pay out unused EPSL upon termination.

Employees may use EPSL for the following reasons:

Briefs

• Employee’s own physical or mental illness, injury or health conditions;

“Standing Workstations Revolutionize Workplace,” “Airports Score Satisfaction” and “Résumé for Half a Job?“

• Care for employee’s family member for one of the above conditions; • A public health emergency; or • Absence due to domestic violence, sexual violence, or stalking of employee or of an employee’s family member.

Employee Requirements • Employees are required to make a good faith effort to provide notice to an employer, as described in the employee handbook, in advance of taking EPSL. • Employees may file a complaint to the Arizona Industrial Commission or directly to Superior Court. ASBA is here to bring businesses into compliance before they suffer financial losses. Contact us at asba.com or 602-306-4000.

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SPECIAL SECTION HEALTHCARE DECISIONS Open Enrollment & Healthcare Guide for Business

Informing Our Business Community on Healthcare Options

12

53 2017 Healthcare Decisions for Business Guide

By the Numbers

A trend report from Robert Half Technology examines the hiring situation in the technology sector.

13

35

Power Lunch

Chelsea’s Kitchen: Roadhouse on the Canal Plus: It’s time to start enjoying those patios.

66

Roundtable

A professional speaker shares how a case of laryngitis helped her find her voice and grow as a leader.

From the Top

Growing her family’s business while making her mark in the male-dominated real estate industry, Alana Mann emphasizes the value of diversity.

14

INBUSINESSPHX.COM

Legal

Attorneys double down on how Health Savings Accounts have untapped potential as an employee benefit.

• EPSL information must appear on

45

4

“Treating Opioid Use Disorder: Medical Cannabis and Traditional Medicine” and “Opioid Abuse Costs Businesses Millions”

• Retaliation against employees who

Arizona Small Business Association

OCT. 20 1 7

Healthcare

• Employees accrue 1 hour sick time for

significant financial risk. The penalties for

Arizona Industrial Commission clarifying the

5 6 7

Feedback

Jonathan Frutkin, Chuck McLane and Alexi Venneri respond to In Business Magazine’s burning business question of the month.

2016, the minimum wage for non-tipped

law and providing guidance to businesses

It Doesn’t Have to Be

10

workers increased to $10/hour, and nearly all

won’t even be approved until early

Before You Budget,

Guest Editor

Technology

“Supporting the Tech Maker Community” and “Hardware Studio: Resources for ‘Makers’”

20

employers know that.

Join ASBA. Be amAZed®

Evaluate Your Expectations

Steven L. Blue shares seven ways for a company to introduce innovation.

1

Tempe Chamber of Commerce

16

18 Successful Innovation – Technology vs People

Hugh Lytle, founder, chairman and CEO of Equality Health, introduces the “Healthcare” issue.

The Tempe Chamber of Commerce, in conjunction with the City of Tempe, is pleased to present Mayor Mark Mitchell’s State of the City Address on November 3, 2017. Members of the community are invited to attend this informative and compelling presentation. The mayor will be sharing his thoughts on the local social and economic climate along with his vision for the growth and future of Tempe and Arizona. This breakfast event provides a valuable opportunity to enjoy a breakfast with civic, business and political leaders of the Valley. 

2 4

30

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Tempe Union High School District will have one override question on the ballot. It includes a small tax increase since the override amount will increase from 10 percent to 15 percent if approved by voters. The revenues will be dedicated to teacher salaries. The Kyrene Elementary School District includes south Tempe, Ahwatukee and portions of Chandler. The Tempe Union High School District encompasses all of the City of Tempe.

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

About Us

Crisis Communication Is Key for Businesses

Keith Yaskin offers a playbook for winning a media crisis before it’s too late.

DEPARTMENTS

Tempe Mayor Mark Mitchell to Speak at State of the City Address

The Mission of the Arizona Small Business Association is to foster and empower a thriving Arizona small business community by offering relevant, dynamic, and innovative resources and the highest level of advocacy as THE VOICE of small business in Arizona. ASBA fosters and empowers a thriving small business community by: • bringing relevant and dynamic education and mentoring opportunities • providing innovative and relevant tools business owners can utilize to grow and sustain their business • creating a variety of relevant and dynamic opportunities for members to meet potential clients • working diligently to advocate for legislation and regulation supporting a pro-business environment.

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Fall 2O17 • tempechamber.org

Tempe Chamber of Commerce Supports School District Overrides, Bond in November Elections The Tempe Chamber of Commerce Board of Directors voted August 22 to support the bonds and overrides proposed by the Kyrene Elementary School District and the Tempe Union High School District. The bond and override questions will be on the November ballot for Tempe voters to consider. The Tempe Chamber believes the money is needed and will enhance the education experience for students in each of the districts. Kyrene Elementary School District will have two override questions and one bond question on the ballot. The two budget override questions will not increase taxes. They are a continuation of existing overrides to be used for maintenance and operation and capital. The loss of the Kyrene overrides could lead to the loss of funding for teacher salaries, increased class sizes and the risk of losing music and art programs as well as the district’s technology program. The bond reauthorization will fund much-needed repairs and improvements of school facilities, busses and the ability to move forward with preschool expansion.

FEATURES

CRE

“Big Activity in Big Box Leasing,” “Industrial in Surprise,” “Valley’s IKEA No. 2” and “Tacos, Bowling, Nightlife”

ON THE AGENDA

31

Spotlight

THRIVE! SmallBIZCON — Arizona Small Business Association ‘Best of the West Awards’ Dinner — WESTMARC

32

Calendar

Business events throughout the Valley

The 2018 Open Enrollment Period starts November 1, 2017, and closes December 15, 2017.


WHO’S TAKING CARE OF YOUR FINANCIAL HEALTH?

The ambulatory service is just as important as the surgeon, and the private practice is just as important as the public hospital. No matter which side of the business you’re on, you need someone to take care of your financial health. National Bank of Arizona® is here for you. We have financial solutions for every type of healthcare professional and provider. Stop by your local branch to learn more.

NBAZ.COM | A division of ZB, N.A. Member FDIC © 2017 ZB, N.A.


Oct. 2017 In Business Magazine is a collaboration of many business organizations and entities throughout the metropolitan Phoenix area and Arizona. Our mission is to inform and energize business in this community by communicating content that will build business and enrich the economic picture for all of us vested in commerce.

STEARNS BANK CUSTOMER

Hudd Hassell

PARTNER ORGANIZATIONS Kristen Merrifield, CEO Alliance of Arizona Nonprofits (602) 279-2966 www.arizonanonprofits.org

President: Bella Victoria LLC - Mesa, Arizona

Jack Lunsford, President & CEO Arizona Small Business Association Central Office (602) 306-4000 Southern Arizona (520) 327-0222 www.asba.com

Your Work. Your Legacy. There’s a sense of pride in getting the job done right. We’ve been treating our customers like family for over 100 years and we’re ready to do the same for you!

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

MO

S

BILLIO

N

2017

A

Doug Bruhnke, Founder & President Global Chamber® (480) 595-5000 www.globalchamber.org

N

IN THE NATIO

+

1 # BANK $2

ASSETS

NG B A

K

IN

N

For a fast business loan or complete banking relationship, call 480-314-4200.

follow us

| stearnsbank.com | Member FDIC

Phaedra Earhart, President NAWBO Phoenix Metro Chapter (480) 289-5768 www.nawbophx.org

*Based on 3-year ROAA, “The Superstar 75.” Independent Banker, May 2017; Based on 3-year ROAE, “Metrics & Measures, Midtier Rankings.” American Banker, June 2017.

Anne Gill, President & CEO Tempe Chamber of Commerce (480) 967-7891 www.tempechamber.org Our Partner Organizations are vested business organizations focused on building and improving business in the Valley or throughout Arizona. As Partners, each will receive three insert publications each year to showcase all that they are doing for business and businesspeople within our community. We encourage you to join these and other organizations to better your business opportunities. The members of these and other Associate Partner Organizations receive a subscription to In Business Magazine each month. For more information on becoming an Associate Partner, please contact our publisher at info@inbusinessmag.com.

ASSOCIATE PARTNERS Ahwatukee Foothills Chamber of Commerce ahwatukeechamber.com Arizona Chamber of Commerce & Industry azchamber.com Arizona Hispanic Chamber of Commerce azhcc.com The Black Chamber of Arizona phoenixblackchamber.com Chandler Chamber of Commerce chandlerchamber.com Economic Club of Phoenix econclubphx.org Glendale Chamber of Commerce glendaleazchamber.org Greater Phoenix Chamber of Commerce phoenixchamber.com Greater Phoenix Gay & Lesbian Chamber of Commerce gpglcc.org Mesa Chamber of Commerce mesachamber.org North Phoenix Chamber of Commerce northphoenixchamber.com Peoria Chamber of Commerce peoriachamber.com Phoenix Metro Chamber of Commerce phoenixmetrochamber.com Scottsdale Area Chamber of Commerce scottsdalechamber.com Surprise Regional Chamber of Commerce surpriseregionalchamber.com WESTMARC westmarc.org

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OCT. 2017

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Thanks, boss.

Dental is the third most requested benefit. Small businesses need to stay competitive. Let us help. Delta Dental® has flexible, affordable dental plans for 2 to 24 employees. A leader in dental care, we have the largest network of dentists and we make doing business with us easy – with 99.9% of claims paid within 10 business days. Here’s how dental helps you stay competitive: Attract the best talent Retain your best workers Healthy employees are more productive Your employees are asking for dental, and we can help you offer it. Learn more and request a quote at deltadentalazsmallbiz.com.

Arizona Dental Insurance Service, Inc. dba Delta Dental of Arizona DDAZ-0300-0917


1

WHEN BUSINESS BOOMS, BOOM BACK.

Oct. 2017

VOL. 8, NO. 10

Publisher Rick McCartney

Editor RaeAnne Marsh

Art Director Benjamin Little

Contributing Writers Steven L. Blue

Dr. Ravi Chandiramani Ryan C. Curtis Drew de Weerd Deb Gabor Mike Hunter Kristi Lundstrom Dr. Matt McCarty Courtney Merz Artem Petakov Keith Yaskin ADVERTISING

Business Development

Take advantage of special financing offers designed to help your business grow.

At Bank of the West, we listen closely and work with you to craft smart, personalized banking solutions that meet your needs. That’s why we’re proud to offer OwnerOccupied Commercial Real Estate Loans with 20-year fixed-rate term with 20-year amortization. Call a business banker today to start the conversation. 1

President & CEO Rick McCartney

Editorial Director RaeAnne Marsh

Contact a business banker today:

Senior Art Director Benjamin Little

Chris Crafton 623-334-7186

Financial Manager Jeffrey J. Quatrone, E.A.

Paul Menchaca 480-372-1628

1. Offers valid for applications received and completed between May 20, 2017 through July 7, 2017. Loans and lines are subject to credit approval and for business purposes only. Conditions, fees and restrictions may apply. Offers available for new Bank of the West loans and lines of credit. Offers require automatic payments from a Bank of the West Business Checking account. Rates and terms are subject to change at any time without prior notice. 2. The closing cost credit will be applied on the settlement statement as credit towards third-party fees such as appraisal, title policy and environmental fees incurred during the loan process. If the actual third party costs incurred are less than the advertised credit amount, no additional credit will be given. The fee credit cannot be combined with other loan offers. A credit up to $1,000 will be applied for loans between $150,000 and $500,000. A credit up to $2,000 will be applied for loans between $500,001 and $1,000,000. A credit up to $3,000 will be applied for loans between $1,000,001 and $2,500,000. 3. SBA loans from Bank of the West are in participation with the US Small Business Administration. Loans are subject to approval in accordance with both Bank of the West and SBA eligibility and lending guidelines. Certain fees, conditions and additional restrictions may apply. 4. A good faith deposit will be required upon accepting Bank of the West approval. If applicant withdraws the loan request after issuance and acceptance of Bank of the West’s Commitment Letter, all third-party costs incurred must be paid by the borrower. A credit up to $3,000 will be applied for SBA loans between $150,001 and $1,000,000. A credit up to $5,000 will be applied for SBA loans between $1,000,001 and $5,000,000. A credit up to $10,000 will be applied for SBA loans between $5,000,001 and $15,000,000. Credit cannot be applied toward SBA packaging or participation fee. 5. Bank of the West Prime + 0.5% rate is for new or existing Bank of the West customers who have or open a new Choice or Analyzed business checking account with Bank of the West. Available for Business Lines of Credit up to $750,000. After 12 months, a minimum rate of 4% applies. Bank of the West Prime is 4.00% as of March 22, 2017, and subject to change. 6. For new accounts, minimum opening deposit of $100 required; the monthly service charge of $20 on Choice Business Checking will be rebated for the first two statement cycles. Ask a banker about ways to waive the monthly service charge thereafter. Additional terms and conditions and fees apply. 7. Account charges based on service usage less earnings credits, based on balances, and may offset fees. See current Analyzed Business Checking Schedule of Fees for details. Minimum opening deposit of $100.

OCT. 2017 DATES

BLEED 4.875” w x 9.875” h TRIM 4.875” w x 9.875” h

MECH DATE

03-27-17

CLOSE DATE None

Events Amy Corben

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

2

• Up to $3,000 in closing cost savings on Owner-Occupied Commercial Real Estate Loans up to $2.5 million or up to $10,000 savings on Owner3 4 Occupied Commercial Real Estate SBA Loans up to $15 million. Closing cost credit is determined by loan amount. 5 6 • Prime +0.5% on a Secured Business Line of Credit with a new Choice or 7 Analyzed Business Checking account.

8

Louise Ferrari Camron McCartney Kelly Richards Parker Shipe Cami Shore

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

And for a limited time we are also offering:

SPECS

Operations Louise Ferrari

Office Manager Tory Weeks

Accounting Manager Todd Juhl Corporate Office InMedia Company at Galvanize Phoenix Campus 515 E. Grant St., Suite 150 Phoenix, AZ 85004 T: (480) 588-9505 info@inmediacompany.com www.inmediacompany.com Vol. 8, No. 10. In Business Magazine is published 12 times per year by InMedia Company. POSTMASTER: Send address changes to InMedia Company, 515 E. Grant Road, Suite 150, Phoenix, AZ 85004. To subscribe to In Business Magazine, please send check or money order for one-year subscription of $24.95 to InMedia Company, 515 E. Grant Road, Suite 150, Phoenix, AZ 85004 or visit inbusinessphx.com. We appreciate your editorial submissions, news and photos for review by our editorial staff. You July send to editor@inbusinessmag.com or mail to the address above. All letters sent to In Business Magazine will be treated as unconditionally assigned for publication, copyright purposes and use in any publication, website or brochure. InMedia accepts no responsibility for unsolicited manuscripts, photographs or other artwork. Submissions will not be returned unless accompanied by a self-addressed, stamped envelope. InMedia Company, LLC reserves the right to refuse certain advertising and is not liable for advertisers’ claims and/or errors. The opinions expressed herein are exclusively those of the writers and do not necessarily reflect the position of InMedia. InMedia Company considers its sources reliable and verifies as much data as possible, although reporting inaccuracies can occur; consequently, readers using this information do so at their own risk. Each business opportunity and/or investment inherently contains certain risks, and it is suggested that the prospective investors consult their attorney and/ or financial professional. © 2017 InMedia Company, LLC. All rights reserved. No part of this magazine July be reproduced or transmitted in any form or by any means without written permission by the publisher.

NOTES

LINKS

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40562_BOW_WAREHOUSE.TIF (CMYK; 884 PPI, 881 PPI; 33.93%, 34.03%), BOW_BNPP_P. EPS (56.36%)

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HUGH LYTLE, EQUALITY HEALTH

Healthcare Moves

The big headlines on healthcare should be screaming “innovation.” And the most impactful innovations are coming from the seeming opposite dynamics of new technologies and oldfashioned customer service. The U.S. healthcare system has been undergoing tremendous transformation in the past 10 years. The Affordable Care Act, payment reform and explosive changes in population health management have been at the epicenter of this change. At Equality Health, we believe the future of healthcare is in the delivery of quality care to the massive shift in population demographics in this country. As the diversity of America grows, so should its delivery system. Health disparities cost more than $230 billion in direct medical expenses each year and correlate with significant annual economic losses nationally, including an estimated $35 billion in excess healthcare expenditures, $10 billion in illness-related lost productivity, and nearly $200 billion in premature deaths. Quality healthcare must be able to reach the social and cultural needs of our communities, at the zip code and neighborhood block level. Customization of traditional networks and healthcare resources must be configured in a way that increases access, quality, affordability and health equity for all citizens in our great State of Arizona. Innovations that drive inclusiveness, mutual respect and multiple perspectives for all healthcare consumers will be paramount as we close the gap in health disparities in the coming years. Employers, healthcare providers and health plans have a vested interest and play a vital role in these collective efforts. While many advances are taking place in all areas of medicine and bioscience, In Business Magazine focuses this issue’s cover story on consumer-facing aspects that affect healthcare usage. Among the companies leading the way in that regard are those featured in this issue’s cover story; In Business Magazine has asked their experts to share how those advances are making a difference to employers and employees. The monthly Healthcare page looks at other aspects of current issues including, opioid concerns and the role for medical marijuana in healthcare. On the Technology page, you’ll find where opportunity is expanding in the maker space. CRE’s page zeroes in on real estate’s retail sector. And a Focus feature this month offers steps to successfully introduce innovation in your company. Most businesses know there is always a crisis waiting around the corner. Companies can minimize — maybe even avoid — negative impact by preparing for possibilities. Communication can be the first line of defense — before as well as during. The feature article “Crisis Communication Is Key for Businesses” deals with this in depth. Just in time for the open enrollment season and year-end decision on healthcare options, In Business Magazine has updated and once again presents its Healthcare Decisions Guide: Open Enrollment & Benefits section that helps introduce business owners to healthcare services and innovations for businesses. It’s my pleasure to help bring you this October issue of In Business Magazine, and I hope you enjoy reading it.

Founder, chairman and chief executive officer of Equality Health, Hugh Lytle is a serial entrepreneur and self-described healthcare rebel with more than 25 years of executive healthcare leadership experience. His passion for disrupting an undesirable status quo is what drives him to develop groundbreaking healthcare solutions like the work being done at Equality Health. Lytle served as an independent board director for GreatCall, Inc. until the sale of the company in summer 2017. He currently sits on several healthcare advisory boards. He received an MBA from Butler University. 

Sincerely,

CONNECT WITH US:

Hugh Lytle Founder, Chairman and CEO Equality Health

Story Ideas/PR: editor@ inbusinessphx.com

Innovating Healthcare Isn’t it time! We have been working on healthcare for many years

world of healthcare. From practice to function, there are some

and, after the mandate for business to take it on, we are finally

amazing things that his company are doing to help us rethink

seeing innovations. The industry, itself, has been initiating

success in this realm. Providers are working to refine programs, and

transformation that better serves everyone’s needs.

many of the hospitals seek plans that can maximize efficiencies

In this issue, we talked to many who are innovators in

in service and availability of healthcare to all. Yes, there is a long

healthcare. We want to thank Hugh Lytle of Equality Health, who

way to go, and it’s important to keep the momentum. —Rick

knows first-hand the struggles involved in creating change in the

McCartney, Publisher

IN BUSINESS

2017 Healthc are

MAGAZINE

for Busines s

OCT. 2017

Decisions

HEALTHCARE

Innovation

IN

HEATHCAR E

OCTOBER 2017

What is healthcare doing to make us health ier?

Crisis

Communica tion

Innovation and Employee Buy-In

INBUSINESSPHX.COM

Opioid Use

THIS ISSUE

Tempe Chamber of Commerce Arizona Small Business Association

Business Disorder’s Impact $4.95 INBUSINESSPHX.COM

Guide

DON’T MISS OUT!

Get a year of In Business Magazine Subscribe now at inbusinessphx.com

Let us know what you think of this issue of In Business Magazine. Email our publisher at feedback@inbusinessmag.com.

Business Events/ Connections: businessevents@ inbusinessphx.com Marketing/Exposure: advertise@ inbusinessphx.com Visit us online at www.inbusinessphx.com

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OCT. 20 1 7

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VALLEY LEADERS SOUND OFF

What programs or aspects of your healthcare benefits are you finding to be most important to your employees?

Let us know what you want to know from the Valley’s top business leaders. editor@inbusinessphx.com

For all past Feedbacks go online to inbusinessphx.com and see what Valley executives think on various business topics.

Senior Managing Director, Phoenix office CBIZ & Mayer Hoffman McCann, P.C. Sector: Financial Services

Co-Founder & CEO Digital Air Strike Sector: Technology

In the modern workplace, providing a generous healthcare benefits package is essential for recruiting and maintaining top talent. Studies show that healthcare benefits are consistently a top priority for employees across the board. At Radix Law, we know healthcare benefits are a top priority for all of us: our attorneys, our professional staff and even the employees of our clients. With so many laws and rules constantly changing, U.S. employees seem to find themselves constantly paying more for both deductibles and contributions to their family’s health insurance premiums. There is becoming a larger demand for insurance programs to offer maximum flexibility. In fact, a recent Metlife survey found that more than half of employees would even be willing to pay more for their benefits if they were able to customize their plan. The good news is, many insurance companies are starting to listen to these requests, and companies that offer healthcare benefits are able to start allowing employees to hand-pick the benefits that make the most sense for them and their families.

Healthcare benefits are considered a big factor in presenting a competitive employment opportunity. One of our business segments deals directly with assisting organizations in evaluating the many options that companies have to choose from. We approach things from a holistic perspective. An employee’s No. 1 concern is often the amount of premium that is covered by the employer versus the employee. We cover 100 percent of the cost for preventive programs. We also offer a number of discounts to those who volunteer to complete a series of health-related actions. Another key is having a variety of plans to choose from. The preventive care, earning discounts and variety of plan options have been a big plus with our team. There remains a greater desire for additional services beyond normal physician-related care. Our dental benefits and vision benefits are gaining greater attention. Going beyond these areas, some older individuals are looking toward longterm care. Dependent care for children and aging parents is also available. Our team appreciates this large range of services.

Radix Law radixlaw.com

CBIZ cbiz.com

Digital Air Strike offers all full-time employees complete medical, dental and vision coverage. Employees appreciate that they can choose from a variety of options, including non-traditional providers that offer 24/7 consultations by phone. We also have wellness programs through which employees can get counseling and support they need to meet their fitness goals. They can also earn money, discounts and decreased premiums based on participation. Employees and their families also have access to free mental health counseling through our confidential Employee Assistance Program. We also have unique healthy perks like fit desks — stationary bicycles with computer desks — as well as bicycles that employees can use to ride to nearby Old Town Scottsdale and weekly chair massages. Our company also encourages employees to take breaks and get their competitive juices flowing. We have cornhole on our patio, foosball and a ping pong table, and have tournaments regularly. In addition, we have a company softball team that’s hoping to win its second championship this year.

As the founder and principal of Radix Law, Jonathan Frutkin has significant experience as an attorney, a business executive and business owner. Over the course of his career, he has owned a website design business, a software company and a real estate development company, and served as the developer for a national ice cream chain. Frutkin’s legal practice focuses on providing general counsel, including legal advice on capital formation, mergers and acquisitions, litigation strategy and intellectual property.

Chuck McLane is the senior managing director of the Phoenix office of CBIZ & Mayer Hoffman McCann, P.C. and is responsible for supervision and oversight of the financial services area. He has nearly 30 years of experience serving small to mid-sized companies in Arizona. McLane also serves as the National Practice Group leader for the Private Equity Practice, as well as a National Training and Development advisor, assisting with the CBIZ National Career Path Development Program.

OCTOBER 2017

2017 Healthc are

Decisions

for Busines s

Innovation

IN

HEATHCAR E What is healthcare doing to make us health ier?

• INBUSINESSPHX.COM

Sign up for the monthly In Business Magazine eNewsletter at www.inbusinessphx.com. Look for survey questions and other research on our business community.

HEALTHCARE

INBUSINESSPHX.COM

Principal Radix Law Sector: Law

MAGAZINE

10

ALEXI VENNERI

IN BUSINESS

OCT. 20 1 7

CHUCK McLANE

OCT. 2017

FEEDBACK QUESTION:

JONATHAN FRUTKIN

Crisis

Communica tion

Innovation and Employee Buy-In

Opioid Use

THIS ISSUE

Tempe Chamber of Commerce Arizona Small Business Association

Business Disorder’s Impact $4.95 INBUSINESSPHX.COM

Guide

Digital Air Strike digitalairstrike.com Alexi Venneri co-founded Digital Air Strike, the award-winning digital response and social media technology company. She is an accomplished public speaker and author of the best-selling book “Balls! Six Rules for Winning the Business Game.” Venneri has a B.A. in marketing from the University of Calgary. She supports numerous charitable organizations and works closely with nonprofit organizations that rescue and rehabilitate animals.

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QUICK AND TO THE POINT

Standing Workstations Revolutionize Workplace Stand up if you want to be healthier and more productive! Quite literally, thousands of employers across the nation are helping employees stand up to be more productive and health aware by transforming the workplace with standing and height-adjustable desks. Much more than a trend, heightadjustable desks are sweeping workplaces not only because of the potential increases in work-related outputs, but for the health benefits and significant longer-term employer cost savings in health claims and employee assistance devices for their sedentary workforce. With 86 percent of Americans employed in desk-bound office settings — often spending up to 15 hours per day seated — productivity, wellness and cost savings are and will remain top of mind for employers. A recent six-month study by Texas A&M University’s Health Science Center School of Public Health of 167 call center employees revealed that employees using stand-capable desks were more productive than colleagues in standard, seated desks. In the first month of the change, standing employees had 23 percent more successful calls than seated peers; by month six, that had increased to 53 percent. Recently, Phoenix-based Vertical Measures, a digital marketing agency, transitioned its workforce to heightadjustable desks. “One year after converting 60 desks, employees are significantly happier and continue to reap the rewards of having height-adjustable desks,” says Arnie Kuenn, CEO of Vertical Measures. “Our workforce has embraced our new way of working and routinely boasts about the effectiveness of their workspaces.”

Standing desks also allow employees to be more physically active. “Height-adjustable desks do a body good, especially a sedentary one,” says Steven Sorr, N.M.D., medical director of Source of Health in Scottsdale. “People who stand tend to burn 15 percent more calories, have improved attention spans and greater engagement, and increased cognitive function.” With the obesity epidemic, and correlating physical and psychological ailments such as high blood pressure, diabetes and depression, showing no signs of slowing down, Dr. Sorr also notes that giving employees the option of standing may help companies potentially save millions of dollars in health and wellness claims. Small changes, such as giving employees more control over their immediate work environment, can make a world of difference as employers look for ways to increase productivity while maintaining happy, healthy workforces. —Drew de Weerd, president of Phoenix-based MultiTable® (multitable.com), one of the nation’s leading heightadjustable standing desk and ergonomic accessories manufacturers, producing products that help modern professionals maximize their working lifestyle.

Airports Score Satisfaction

Photo courtesy of MultiTable

In J.D. Power’s recently released 2017 North America Airport Satisfaction Study — which measures overall traveler satisfaction with mega, large and medium-sized North American airports by examining (in this order of importance) terminal facilities; airport accessibility; security check; baggage claim; check-in/ baggage check; food, beverage and retail — Phoenix Sky Harbor International Airport ranks fourth of 18 in the mega category. “The trifecta of a steadily improving economy, record passenger volume and billion-dollar renovation projects unfolding in airports across the country has created a challenging environment for customer satisfaction. The fact that many airports are overcoming those challenges is incredibly instructive for the industry as it remodels and improves airport infrastructure,” says Michael Taylor, Travel Practice lead at J.D. Power, who notes that airports are responding to the difficulties with new technologies and oldfashioned personal skills. Sky Harbor has registered improved customer satisfaction since it began deploying a team of therapy dogs for passengers

to pet while they wait to board. Other airports with similar high-touch traveler outreach initiatives are San Francisco International, where a pet therapy pig roams the terminal looking for pets and selfies, and Cincinnati/Northern Kentucky Airport, with more than 30 stress-relieving ponies on staff with which travelers can interact. And tech investment helps overcome logistical hurdles. For example, Sacramento International Airport has developed a smartphone app that tells travelers where they can find a parking spot, and virtually every airport in the country has invested heavily in improving phone-charging stations and internet access in their terminals. Sky Harbor, with its free Wi-Fi, has long been among the most Internet user-friendly airports. Now in its 12th year, the study is based on responses from 34,695 North American travelers who traveled through at least one domestic airport with both departure and arrival experiences (including connecting airports) over a threemonth period this past summer. —Mike Hunter J.D. Power jdpower.com

The average person can expect to spend 90,000 hours of his life working, most of them sitting, according to MultiTable®.

BYTES RÉSUMÉ FOR HALF A JOB? Job sharing is a growing trend in the workforce. But with two people occupying one job and sharing the responsibilities, how does one go about crafting an appropriate résumé? Enhancv has launched a tandem résumé tool — the only résumé crafted specifically for job sharing — through a partnership with Tandemploy, an SaaS platform for flexible work options. Users can create impressive résumés using Enhancv’s suite of tools, like its content analyzer, which tells the user if his résumé could be worded better to showcase his skills.  —Mike Hunter enhancv.com/tandem-cv tandemploy.com/en/

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BY RAEANNE MARSH

METRICS & MEASUREMENTS

Phoenix Tech Hiring Is on the Rise Is there a match of openings, applicants and skills?

HIRING VS. RETENTION As a sector overall, IT generally fares better than others — tech jobs continually beat the national unemployment average and the hiring environment for tech talent remains highly competitive. Kathleen French, metro market manager for Robert Half Technology in Phoenix, sees strong activity in the employment market right now, and observes, “Technology professionals are feeling more secure about their job prospects and showing more willingness to jump ship and try out new opportunities. Smart organizations are boosting their retention efforts to avoid losing strong performers. While they spend time trying to grow their talent, they also have to pay close attention to the team they’ve built.”

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Phoenix-area technology hiring is on the rise for the second half of 2017, according to the IT Hiring Forecast and Local Trend Report from Robert Half Technology, a leading provider of technology professionals for initiatives ranging from Web development and multiplatform systems integration to network security and technical support. Twenty-two percent of CIOs say they plan to add full-time technology professionals to their teams, up eight points from the previous report in December, and an additional 53 percent expect to maintain staff levels by filling vacant roles. In addition to hiring plans, the report also highlights skills in demand, CIOs’ top concerns and factors contributing to local hiring growth. “Tech company expansions and relocations are contributing to hiring,” says Kathleen French, metro market manager for Robert Half Technology in Phoenix. “The most highly sought-after professionals are in the Windows administration, network and database management arenas. Digital marketing and big data initiatives are also causing companies to add to their teams.” Noting that local companies are getting the green light on more and more technology projects for their organizations — especially in data analytics, mobile strategies and security — she adds, “Companies increasingly recognize that investments made in technology can pay off significantly in terms of making the company more efficient, productive and reactive to consumer needs.” The report underscores the fact that an active hiring environment is contributing to a competitive market for IT talent, as 64 percent of Phoenix hiring leaders say it’s somewhat or very challenging to find skilled IT professionals in today’s market. Says French, “As companies implement new technologies, customer- and end-user-facing roles also remain critical. We’re seeing demand from our clients for network and windows support roles. In these areas, we expect to see greater demand than there are job candidates, which makes it tough for organizations to add to their ranks.” Pointing to the supply/demand imbalance in some IT specialties, she says an additional challenge to filling an open position is the fact that “many hiring managers are being very selective and only interested in applicants who possess all the skills and attributes they’re seeking.”

PHOENIX’S TALENT POOL

“Phoenix is quickly becoming the new Silicon Valley and is considered one of the top cities for tech jobs,” says French. “Although the hiring market is extremely competitive, there is a very strong pool of candidates moving here due to the lower cost of living and the high demand of tech jobs. That said, candidates are coming to the table with multiple job offers and are often choosing the ones with the best opportunities for growth. Companies that take too long to hire will lose out on the best talent.” Robert Half International roberthalf.com/technology

Sixty-four percent of Phoenix hiring leaders say it’s somewhat or very challenging to find skilled IT professionals in today’s market. http://bitly.com/phx-cio-forecast

Tech Hiring in Phoenix What’s Driving Hiring in Phoenix? More businesses moving to the area is the main driver of

29%

tech hiring growth Increased big data initiatives

27%

Increased digital marketing initiatives

23%

Increased mobile initiatives

17%

Top Concerns Innovation and helping to grow the businesses

28%

Technology innovation and investing in new technologies

22%

Upgrading existing systems for business efficiency

18%

Maintaining security of IT systems and safeguarding

16%

company information Staff retention

16%

Skills in Demand Windows administration

60%

Wireless network management

55%

Network administration

54%

Desktop support

52%

Telecommunications support

51%

Source: Robert Half Technology. The survey was developed by Robert Half Technology and conducted by an independent research firm. To ensure that companies from all segments were represented in the study, the sample was stratified by number of employees. Robert Half Technology has been tracking IT hiring activity in the United States since 1995.


MINDING THEIR BUSINESS

Alana Mann: Diversity Proved Key in Developing the Legacy Company by Courtney Merz

Residential real estate development, building and investing has, historically, been a male-dominated industry, so for Alana Mann, owner and president of Scottsdale-based The Statesman Group, it’s been all about changing people’s perspectives. In the late 1990s, Mann took the helm of U.S. operations for her family’s 40-year-old business and was tasked with moving the real estate development company to Scottsdale from Alberta. The initial one-woman Scottsdale operation now has more than 75 employees and more than 14 developments across the country. “I’m inspired knowing that The Statesman Group is a legacy company originated by my father and expanded by my family,” says Mann. “Both my mother and father were active in different roles at the company, and now all four children are working in some capacity in our family of companies in the U.S. and Canada.” Today, Mann is working on her sixth development project in Arizona with The Cays at Downtown Ocotillo, one of the first luxury condominium communities in Chandler. Mann was drawn to this opportunity after recognizing the need for luxury multifamily living in the East Valley, particularly as the nearby Price Corridor started being dubbed “a version of Silicon Valley” thanks to major companies opening campuses in the area. The first of four residential buildings of the 278-residence project is nearly sold out and construction is underway on the second building. Mann’s background in residential development in the Valley goes back to 1998, when she completed the company’s first U.S. project, The Manor Village of Scottsdale. With nine locations across Canada and the U.S., The Manor Village Life Centers offer superior senior care in a well-appointed setting for residents needing independent living, assisted living or memory care. “The creation and development of Manor Village Life Centers is one of my biggest professional accomplishments,” says Mann. “Every time I walk through the lobbies of our Manor Villages, I feel so rewarded from all the smiles and endless hugs from our loving senior residents. Through all the chaos and hustle in our society today, they teach me to appreciate the true essence of life.” With the momentum of the first Arizona project under her belt, Mann turned her attention to Bella Vista in Scottsdale, where she was the first developer in the Valley to pioneer underground parking within a residential community in Scottsdale. She had to bring in a Canadian construction team to handle the project since nobody local had done it before. Mann then sought to expand the company’s condominium holdings and broke ground on the 50-acre Toscana at Desert Ridge in Scottsdale. In the midst of construction and sales, the Great Recession hit and Mann and her team quickly shifted

gears to tap into the company’s Canadian network, focusing efforts on second-home buyers. “During the Great Recession, we had the foresight to restructure how Toscana ran, which included heating all pools year-round; hiring a full time, on-site concierge to book adventures, golf tee-times and dinner reservations; increasing our lifestyle staff; and hiring night managers,” says Mann. “All this was necessary to provide the level of services and amenities that our Canadian and Northern U.S. owners desired while escaping the cold winters, and, as a result, we sold 124 condos in just six months.” From this, Mann dove head-first into property management and created the Toscana Management Properties Program that allowed existing condo owners, as well as new condo buyers, to offset costs through the efforts of her professional rental management team. It was her goal to work with the existing owners to help them stay in their homes, sell new condos and maintain the overall integrity of the community, all while the economic climate was tumbling. “Other developers thought we were nuts, but we knew that we had to revert a traditional condominium into a lifestyle resort in order to attract the current buyers and survive the Great Recession without compromising the integrity of our community.” Fast-forward to today and Mann has expanded Statesman from a residential developer, founded by her father, to a multi-divisional developer, builder, investor and manager of condominium, multifamily, resort and senior living communities throughout North America. "My father used to always tell me, ‘This business will get you if you put all your eggs in one basket,’” says Mann. “Diversity and innovation are key.” The Statesman Group statesmancorporation.com

In the past decade alone, Chandler gained more than 100,000 new residents, becoming the thirdlargest city in the Valley. Also, more than 46 percent of the residential units built and completed in the area in the past year have been multifamily dwellings, according to the City of Chandler.

A SATELLITE VIEW • The Scottsdale headquarters of The Statesman Group is made up of an all-woman executive team, many of whom have been with the company for more than a decade. • Overall, The Statesman Group employs more than 500 people in the U.S. and Canada. • Alana Mann has also expanded the company’s ventures into hotel development and investment, with projects that include, but are not limited to, a TownePlace Suites by Marriott, the new brand Tru by Hilton, Residence Inn by Marriott, and the redesigned Aloft by Marriott to be developed near the Cardinals Stadium.

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PROPERTY, GROWTH AND LOCATION

BY MIKE HUNTER

Big Activity in Big Box Leasing Greater Phoenix’s retail market activity through Q2 was driven by big box leasing, according to CBRE Research. Q2 was highlighted by 458,268 square feet of positive net absorption, with 14 leases of more than 20,000 square feet signed in the quarter. There was nearly 520,000 square feet of big box space absorbed in Q2 solely from new leases, not including any construction. Absorption was driven by fitness, off-price and home goods/furniture retailers. “With steady job growth and a hot housing market, the Valley exhibits strong fundamentals that are key to fostering a healthy retail market,” said Todd Folger, first vice president with CBRE’s Phoenix office. “When a labor market strengthens, consumers' spending climbs, and retailers gain the confidence to open or expand.” Several notable projects broke ground in Q2, including the first-ever grocery store in Downtown Phoenix (a 45,000-square-foot Fry’s located at Block 23) and a 60,000-square-foot project called The Block at Pima Center (comprised of shop space and PADs). Roughly 40 percent of retail space under construction is in the Mesa/Chandler/Gilbert submarket and the West/Southwest submarket — two areas experiencing some of the highest levels of housing starts in the Valley. The Valley’s average asking lease rates ended Q2 at $16.68 per square foot. Lease rate growth is expected to be driven by infill development in submarkets where vacancy is limited, such as East Phoenix, Tempe and Scottsdale, as well as new retail developments in areas with low supply.

Market-wide vacancy dipped 30 basis points on a quarterly basis (60 basis points on an annual basis), ending Q2 at 8.5 percent. The significant dip in vacancy is due in part to numerous big box spaces absorbed and few spaces vacated in Q2. Healthy levels of preleasing of new construction also attributed to the drop. At the end of the first half of 2017, 116 big box spaces totaling 4,225,536 square feet were available in the Valley. Breaking that down, CBRE Research reports 27 Class A spaces totaling 932,075 square feet, 53 Class B spaces totaling 2,062,286 square feet, 27 Class C spaces totaling 840,929 square feet and nine Class D spaces totaling 390,246. —Mike Hunter CBRE cbre.com

GET REAL

With Mountainside Fitness, American Freight Furniture, Marshall’s and Michael’s each absorbing big box space greater than 20,000 square feet in North Phoenix, the submarket led all other submarkets for two consecutive quarters with a total of 120,504 square feet of positive net absorption, according to CBRE Research. cbre.com

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LGE Design Build has begun construction

IKEA is submitting plans to the City of

on Skyway Commons, a large-scale, two-

Glendale for its second store in the state.

part commercial project set to take shape

Pending approvals, construction could

in Surprise. Offering a combined 450,000

begin in Fall 2018 with an opening in Spring

square feet of Class A industrial space

2020 at the southeast corner of Loop 101/

and spearheaded by Silagi Development,

Agua Fria Freeway and Bethany Home

the $10.7 million project at Dysart and

Road. Store plans for 348,000-square-

Rioglass Solar roads will accommodate

foot IKEA Glendale would reflect the same

small to mid-sized industrial tenants.

unique architectural design for which

The first phase of the two-part project

IKEA stores are known worldwide. IKEA

is set to wrap sometime in January, with

also will evaluate potential on-site power

the second phase slated to begin by the

generation to complement its current U.S.

end of the year. LGEDesignBuild.com

renewable energy presence at nearly 90

silagidevelopment.com

percent of its U.S. locations. IKEA-USA.com

In Greater Phoenix’s retail market, completed construction in Q2 totaled roughly 60,000 square feet. cbre.com

Tacos, Bowling, Nightlife LGE Design Build is looking to complete construction on an entertainment destination, pairing the Mexican eatery Casa Amigo and high-end bowling alley Sky Lanes that will take over the 16,238-square-foot, two-story Livewire space, before the end of the year. The bottom floor will offer open-air dining and an expansive bar in a setting that transforms into a lively club scene once the lights go down. Upstairs, visitors can enjoy dance music, bowling and bottle service well into the night. LGEDesignBuild.com EveningEntertainmentGroup.com

Photos courtesy of LGE Design Build, IKEA, LGE Design Build (bottom, l to r)

Industrial in Surprise Valley’s IKEA No. 2


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INNOVATIONS FOR BUSINESS

Hardware Studio: Resources for ‘Makers’ Hardware Studio has two components: Toolkit and Connection. Toolkit is an education hub, open to anyone (however, Creators with technical hardware products will likely get the most benefit). Toolkit will have a ton of great content in a variety of formats, such as articles, blogs, technical data sheets and webinars, to help Creators at any stage of their journey. For example, let’s say you’re a first time Creator who doesn’t have any idea what a BOM (Bill of Materials) is, Toolkit is the right place for you. What if you’re a seasoned Creator bringing a second (or third or fourth) product to market, but you’re not sure if you want to manufacture in the U.S., Mexico or Asia? Toolkit is the right place for you too. The content on Toolkit will come directly from expert teams at Avnet, Dragon Innovation, and Kickstarter, and will also come from guest contributors in the hardware space. There will be blogs, articles, technical data sheets, webinars, etc. In addition, Creators in the Toolkit community will get access to incredible tools, like Dragon Innovation’s Product Planner, which helps organize materials, run reports and more. The second part of the Hardware Studio program, Connection, is a collaboration between Avnet and Dragon Innovation to offer technical services to Kickstarter Creators. Connection is an applicationbased program where Creators have an opportunity to receive quotes on design services, help with manufacturing (factory selection, RFQ submission, etc.), discounts on components, and extended use of Dragon Innovation’s Product Planner tool. These will be tangible services to help Creators finalize their designs, create working prototypes, design for manufacturing, and conduct full manufacturing runs. —Bob Merriman, Avnet’s business development manager kickstarter.com/hardwarestudio

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The Hardware Studio, launched last month, is a new initiative designed to help hardware makers design products and plan ahead for manufacturing before they launch on Kickstarter. It is a collaboration among Kickstarter PBC, the world’s largest funding platform for creative projects, Dragon Innovation, a leading provider of manufacturing software and know-how, and Avnet, a leading global technology distributor. The Hardware Studio is comprised of two elements: the Hardware Studio Toolkit, a community site where designers can participate in tutorials and live webinars with industry experts before launching their Kickstarter projects, and Hardware Studio Connection, a more selective program that will give makers access to hands-on support from Avnet and Dragon engineers as well as discounts on components and services. “The commoditization of technology has given makers unprecedented access to the tools they need to create innovative and exciting products,” says Bob Merriman, Avnet’s business development manager. “The makers of today are creating the products we’re all going to love tomorrow. However, finding reputable partners, making tangible progress in hardware development, or simply knowing what to do next, can be very difficult for makers. Avnet understands that bringing a hardware product to market is not an easy task. Avnet’s resources and access to vast amounts of technology make Avnet a great partner for makers in the hardware space.” Describing Avnet’s support in the maker/ startup space as multi-faceted, Merriman points to Avnet’s acquisition of Hackster.io to support open source hardware creators, and launch of the MakerSource.io community to help startups find the resources they need to get to market. “Avnet understands that supporting the maker community requires a holistic approach because the journey from maker to market can be so unique.”  Additionally, Merriman notes, “Early decisions cast very long shadows in the hardware world. It sounds very cliché, but too many makers/Creators don’t know what they don’t know and end up going down a path they think is correct, only to learn that a costly (or

time-consuming) mistake was made at some point in the past.” To help Creators avoid those pitfalls, Avnet will offer services through the Hardware Studio Connection to help prepare for the early stages of product development. Avnet will provide qualifying Creators access to design services, BOM optimization, and help with creating a prototype if one does not exist yet. After that, design for manufacturing (or DFM) services are available. Once the product is ready for manufacturing, Dragon Innovation specializes in helping early-stage companies navigate the difficult journey of “one to many” (i.e. moving from prototype to production).  Avnet also addresses the funding aspect. Explaining that qualified Creators will receive quotes for the services they need, Merriman notes also that Avnet provides an option for qualified Creators who do not have funding. “As part of Hardware Studio Connection, Avnet and Dragon Innovation will quote the work needed to get a product from its current state through production. A timeline for each service, all the way up to delivery of the product, will also be provided. This will allow Creators to get a realistic estimate of the costs and timeline required to build and deliver their product. Creators can then use that information in their campaigns to tell their backers how much their product will cost and when they expect to ship.”  Says Merriman, “Hardware Studio Connection was created to be more than a collection of services; it is designed to tailor service offerings to the specific needs of Creators because Creators have varying levels of progress. There is no point too early, or too late, for Creators to engage with Hardware Studio.” —Mike Hunter Avnet avnet.com Hackster hackster.io Hardware Studio kickstarter.com/hardwarestudio MakerSource makersource.io

According to a survey Avnet conducted of the maker community, sensors and Internet of Things (IoT) technologies were, by far, those technologies considered most important by makers for the design of their products and services. Eightyfour percent said sensors were a critical technology and seventy-seven percent said IoT was a critical technology.

Photos courtesy of Hardware Studio (left(); Kickstarter (right)

Supporting the Tech Maker Community

TECH NOTES


YOUR BENEFIT IN BUSINESS

WELL WELL WELL

by Mike Hunter

Opioid Abuse Costs Businesses Millions A survey by the National Safety Council taken in March revealed that 70 percent of businesses say that narcotic painkillers have affected their business. The NSC recommends incorporating the following steps to monitor the use of opioids in the workplace: A clear, written policy: Together with a company’s legal department, a policy should be put in place — similar to a company’s restrictions on the use of alcohol or illegal drugs. Employee education: Keeping in mind that the employee-patient relationship is a confidential one, employees should still be educated about the dangers of opioids in the workplace. The education process should include the dangers of operating heavy equipment while on medication, the risks of driving on pain pills, safe storage and the fact that they should not share their medication with fellow employees. Supervisor training: Management should be current on the workplace’s prescription drug policy and educated on how to identify possible employee abuse. Managers need to understand that a person with a disability is protected by the Americans With Disabilities Act and not infringe upon his or her rights. An Employee Assistance Program: The cost of helping an employee who might have a problem with opioid abuse proves to be 25–200 percent more cost effective than replacing that person. Not only does a company suffer the loss of knowledge and production from an employee it might decide to terminate, it also is leaving someone in a dangerous position to himself or society in general.   Drug testing: Research has shown that drugtesting in the workplace brings down the number of accidents. Employers and those who are conducting the drug screens need to be aware that recently, with the easy access to synthetic urine over the Internet, those who are abusing drugs have found ways to skirt the system. Currently, only 14 states in the U.S. ban the sale and purchase of synthetic urine. — Matt McCarty, M.D., a board-certified, fellowship-trained physician specializing in chronic pain management who recognized the growing need for medication monitoring and personalized medicine, and founded Genotox Laboratories (www.genotoxlabs.com), a rapidly growing national reference lab providing medication monitoring services through urine drug screen confirmations and pharmacogenomics testing

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Treating Opioid Use Disorder: Medical Cannabis and Traditional Medicine We’re in the midst of an opioid epidemic. Opioids include heroin as well as Vicodin, Percocet, Oxycontin, morphine and fentanyl. The associated “epidemic” means that an abnormally high number of Americans meet criteria for opioid use disorder (OUD) and are dying from overdoses at record numbers. The criteria for OUD include taking opioids in larger amounts or over a longer period of time than intended; intense cravings for or desire to use opioids; continued use of opioids despite persistent or recurrent social, interpersonal, legal or occupational problems; and withdrawal symptoms such as nausea, diarrhea, pain and agitation when the pills are not taken. It may help to understand how we got here when considering that in 2012 alone, 259 million opioid prescriptions were written by U.S. prescribers — that’s enough for every American adult to have his or her very own bottle of pain pills. Deaths by opioids have outpaced deaths by more traditional killers, such as heart disease, car accidents and guns, making this epidemic the first medical system-derived epidemic in human history.

CONVENTIONAL/TRADITIONAL TREATMENT OF OUD

Treatment of OUD is first concerned with the management of acute withdrawal symptoms, which typically last between one and three weeks, and then the longer, more protracted post-acute withdrawal symptoms (PAWS), which can last a year or longer. This is largely achieved with a combination of medications such as buprenorphine and naltrexone; group, individual and family counseling; and peer support. While some medications can be extremely helpful in managing symptoms, the choice of intervention, regimen and duration of therapy are important considerations in providing individualized care to patients. Naturopathic medicine can be very beneficial in gently assisting the body back into equilibrium once the opioids have been reduced or removed. The longer an individual uses opioids, the greater the likelihood he or she will have to deal with one or more downstream effects of the opioids on body systems. These include bowel dysfunction — of which constipation is the most prevalent; insomnia; nausea and vomiting; and low testosterone in men and women and

low estrogen levels in women, causing reduced sexual function, decreased libido, infertility, mood disorders, osteopenia and osteoporosis. Overnight sleep studies, therapeutic nutrition and hormone replacement strategies may all be useful in returning the body to balance after opioids. Complementary and alternative modalities such as massage therapy, aromatherapy and acupuncture have proven efficacy in the adjunct treatment of pain, anxiety, insomnia, poor appetite and depression. These treatments also commonly add to patients’ overall sense of well-being, which is an all-important ally for patients dealing with acute and post-acute withdrawal symptoms. Medically-supervised cannabis is another tool providing tangible benefits for opioiddependent individuals. Cannabis is particularly useful in providing symptomatic relief in patients undergoing acute withdrawal. Acute withdrawal symptoms such as body aches, insomnia, anxiety and agitation, nausea and vomiting, lack of appetite and more can occur every time the opioid dose is reduced and almost certainly occurs once opioid use has been stopped altogether. Cannabis’ greatest benefit in treating post-acute withdrawal symptoms is in decreasing cravings, which are the No. 1 predictor of relapse. It also helps with other post-acute withdrawal such as insomnia, anxiety and increased sensitivity to stress. — Ravi Chandiramani, N.D., the medical director and co-founder of Blue Door Therapeutics (bluedoor.org), an outpatient opioid treatment center that combines the use of medical cannabis with traditional medicine, alternative and naturopathic therapeutics as an exit strategy for opioid dependence; his holistic approach to the treatment of substance use disorders has been refined over a decade of direct clinical experience with more than 1,000 patients

Matt McCarty, M.D., with his team at Genotox Laboratories, invented a patent-pending DNA-authenticated sample matching method called ToxProtect™ that ensures urine submitted for drug testing is matched to a specific donor. ToxProtect uncovers the use of substitute and synthetic urine and detects substance misuse, abuse and relapse when all other urine drug testing fails.


Criminals Have A Plan To Steal Your Money. 1

2

3

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Tell employees you will never communicate payment instructions via personal email.

At Bank of Arizona, we offer a variety of fraud prevention services that can help you detect and prevent criminal activity. Call us today to discuss how we can help you fight fraud.

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LAW MATTERS TO BUSINESS

HSAs: More than Healthcare

Health Savings Accounts have untapped potential as an employee benefit by Ryan C. Curtis and Kristi Lundstrom IN BUSINESS

2017 Healthc are

MAGAZINE

for Busines s

Guide

OCT. 2017

Decisions

HEALTHCARE

Innovation

IN

HEATHCAR E

OCTOBER 2017

What is healthcare doing to make us health ier?

Crisis

Communica tion

Innovation and Buy-In

Employee

INBUSINESSPHX.COM

Opioid Use

THIS ISSUE

Tempe Chamber of Commerce Arizona Small Business Association

Business Disorder’s Impact $4.95 INBUSINESSPHX.COM

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Ryan Curtis is an of counsel attorney with Fennemore Craig, PC, where he assists employee benefit plans, trustees and administrators in complying with important federal laws, including ERISA and the Affordable Care Act. He has an ERISA litigation background and has successfully defended plan sponsors in IRS audits and Department of Labor investigations. fclaw.com

Kristi Lundstrom is an associate attorney with Fennemore Craig, PC, where she helps employers establish and maintain their employee benefit plans, including with respect to complicated plan corrections. She regularly represents plans and plan sponsors in front of regulating government agencies, particularly the IRS. fclaw.com

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Employers struggling to provide meaningful benefits to attract, retain and assist their employees can look to Health Savings Accounts. This year has been filled with uncertainty regarding the Affordable Care Act, and repeal and replace efforts, but HSAs have a bright future with all the recent healthcare reform proposals looking to expand their use. HSAs are popular with employers and employees who enjoy significant tax advantages. But taking full advantage of the benefits HSAs offer to employers and employees requires a better understanding of how they work, rethinking how they are used, and communicating such benefits more effectively to employees. An HSA gives an employee a triple tax benefit. Employees may contribute pre-tax money to an HSA to reduce their taxable income, invest and grow that money tax free, and withdraw such money at a later time, also tax-free if used for qualified medical expenses. Plus, at age 65, an individual can withdraw money without penalty for any purpose, subject to ordinary income tax if not used for qualified medical expenses. HSAs can even be used for self-reimbursement for medical expenses previously incurred. Employers appreciate HSAs because they provide an additional benefit to employees, and any contributions employers make to an employee’s HSA are tax-deductible to the employer. These advantages are attractive, and individuals can use and benefit from them in multiple ways. The most obvious HSA use is as a revolving account to pay for qualified medical expenses. Employees may currently defer up to $3,400 (individual) or $6,750 (family) per year. Younger and lower-income employees may be hesitant to defer any portion of their income, but the tax savings may be most important for those same employees. Using $100 pre-tax for medical expenses makes money go farther than using the same $100 after paying all applicable taxes. Reducing that $100 by the income and payroll taxes (FICA and Medicare) an employee would normally pay demonstrates the significant savings. Employer communications can help employees understand such advantages. Employers can also help increase participation and deferral amounts by matching a portion of employees’ HSA deferrals or by providing an initial “seed” contribution for employees who open an HSA. Both are tax-deductible to the employer. Employers should consult with qualified legal counsel regarding matching rules. Another HSA strategy is to build a personal medical expense safety net. HSAs are permitted when paired with highdeductible health plans, which have lower monthly employee premiums, but employees can struggle to access plan benefits if unable to meet the high deductible. Saving through an HSA can help cover that gap. An employee deferring the maximum amount to an HSA, and not using it, could set aside a reserve sufficient to cover the full deductible amount in a few years. This is not easy for lower-wage earners or for those who

have significant, ongoing medical expenses, but even if the full deductible is not set aside, a good HSA balance can still help employees get through unexpected medical expenses. Employers can provide guidance in this respect — especially as more employers switch from traditional to high-deductible plans. An employee who has a reduced monthly premium when switching to a high-deductible plan could use that savings to grow a meaningful HSA balance. An increasingly popular approach is to treat an HSA as supplemental retirement savings. Income deferrals to 401(k) retirement plans in 2017 are limited to $18,000, with an additional catch-up deferral of $6,000 for those age 50 and up. This maximum annual deferral to a 401(k) can be supplemented by deferring an additional $6,750 per year (for a family) to an HSA. Balances in an HSA can typically be invested like a 401(k) account. Unlike a 401(k) account, however, HSA amounts can be used at any time for qualified medical expenses as needed without penalty or taxes. A sizable HSA can be especially beneficial during retirement, when individuals can expect to have increased medical expenses. Finally, a retired individual who enjoys good health can always withdraw funds beginning at age 65 for non-medical expenses subject to regular income tax. Even better, that person may be able to self-reimburse for medical expenses paid years before with non-HSA funds. The advantages HSAs offer are significant and are likely to increase in coming years. The various healthcare reform proposals of 2017 sought to increase the annual HSA contribution limits, expand what constitutes “qualified medical expenses,” and reduce penalties for early withdrawals. Employers and employees benefit when employers help employees understand these alternatives and when employers encourage participation through tax-deductible employer contributions.

The use of popular Health Savings Accounts will likely expand in coming years as all recent health reform proposals sought to make HSAs more accessible and easier to use. Employers can help employees take advantage of HSA benefits by better understanding how they work, rethinking how they are used, and communicating such benefits more effectively to employees.


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Innovation IN

HEATHCARE What is healthcare doing to make us healthier? by RaeAnne Marsh


To explore what’s happening in healthcare, In Business Magazine asked those in the industry to give us the news from the inside. Technology and customer service continue to drive changes in the consumer experience. But increasing emphasis — as many of our contributors explain — is being placed on the engagement of an educated user..


KISHLAY ANAND Founder, Akos MD • akosmd.com

Healthcare Advances Healthcare has certainly come a long way since its humble beginnings. For centuries, medicine in the United States was considered a family affair, with the burden of illness and injury falling primarily on the women in the household. In these early stages of medical care, doctors were far from easily accessible and often called in only for severe or life-threatening cases.  But this all changed starting in the early 1900s. Private health insurance gradually evolved into a “fee for service” system that was followed by the initiation of social programs like Medicaid and Medicare and, eventually, HMOs. The organization of healthcare in the United States endured a complete transformation. By the early 2000s, the fee-for-service system began to fade, and a new one began to take its place — one that placed greater emphasis on preventive medicine, consumer choice and being accountable for one’s own health.

HEALTHCARE GOES DIGITAL

For years, patients endured pain points such as access to care, increased financial support for the aging population, and high insurance premiums. But the rapid evolution of technology led to the creation of a new segment of healthcare known as concierge medicine.  Today, this segment — which includes telehealth, direct primary care, on-demand physician visits and virtual clinics — continues to grow at an astounding rate with no signs of slowing down anytime soon.  So, what can we expect for the future of healthcare?  Patients will continue to seek affordable, convenient and quality healthcare solutions. As a result, the telehealth market will continue to grow. In fact, recently published research by Harvard Medical School and the RAND Corporation shows that by 2025, the telehealth market alone is expected to grow to more than $113.1 billion. With open enrollment around the corner, more businesses than ever will be considering integrating telehealth programs into their existing benefits packages as a means to save and meet consumer demand. It’s a good idea for human resource managers and business leadership to be proactive and research the benefits, platform features and plan options available, as no two telehealth programs are exactly the same. It’s equally important to educate one’s workforce about changes in advance so employees become informed advocates for themselves.

MAKING HEALTHIER CONSUMERS

A person who is sick wants to see a doctor as soon as possible, but that doesn’t usually happen. Appointment times never seem to be available when the ailing person needs them, and the long wait times at urgent care centers or emergency rooms certainly don’t help. Telemedicine, however, has made it possible to speak with a doctor almost immediately and, in many cases, from the comfort and convenience of home.

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Using phone calls, video chatting and patient-centered data to help diagnose and treat patients remotely, telemedicine is reducing the cost and inconvenience of a traditional in-person visit. Now, everyone from homemakers to business travelers can address their healthcare needs anywhere, anytime, using their smartphone or tablet. Every year, employee illness and injury cost employers $225.8 billion, according to the Centers for Disease Control and Prevention. The impact may be more pronounced on entrepreneurs and those who have their own business, as their income may depend directly on their own health as well as that of their employees. Not only could illness cause them to miss crucial business days, but productivity could also suffer on the days they try to work while feeling unwell. Telemedicine can provide ondemand treatment to help people get back to work and back to health as quickly as possible.  Between a career, family and life in general, it’s no surprise that our personal health often ends up taking a back seat. But it’s our responsibility to be proactive about monitoring our personal healthcare concerns and make sure we’re living a healthy and active lifestyle. And, as healthcare continues to evolve, it’s important to stay informed about healthcare plan options. Akos is a pioneer in telemedicine, offering patient-centered, solutions that, in turn, benefit employers, physicians and healthcare centers. Its mobile interface lets users virtually consult with a board-certified provider anywhere anytime and care coordinators to ensure their needs are always being met.

VISHU JHAVERI, M.D., M.S.A. Chief Medical Officer, Blue Cross Blue Shield of Arizona azblue.com

Changing the Way Consumers Receive Healthcare For most people, their primary care provider (PCP) is the point person for their healthcare, helping them stay as healthy as possible. When they’re not feeling well for any reason, their PCP is the person to whom they turn to tell them what is wrong and make recommendations or referrals. But providing high-quality care is multifaceted and requires everyone in the healthcare field to think differently. Blue Cross Blue Shield Arizona’s (BCBSAZ) experience has shown that when health insurance companies, physicians and individuals work together, people are healthier and more engaged, and doctors are more productive and efficient. The result is improved patient health that saves individuals time and money, and makes for a more positive healthcare experience. Trends in such patient-focused approaches ensure that physicians have access to data and research allowing for deeper patient insights and enabling them to tailor treatment plans to the individual. The outcome of all this is reducing the likelihood a person will need to visit the ER or be hospitalized.

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Doctors committed to this approach often offer longer physician office hours, which can be helpful when a person gets sick or hurt late in the day, so they don’t have to go to urgent care. It also means more convenient appointment times, so people are more likely to make it to their check-ups. In addition, patients have multiple ways to communicate with their PCP: phone, email or online. BCBSAZ implemented its Patient Centered Medical Home (PCMH) program several years ago. The PCMH program incentivizes physicians for improving health outcomes, not for the number of patients they treat. This means patients have the support from their PCP, the pharmacy and a BCBSAZ case manager to help ensure they can get in to see the doctor quickly, are completing their follow-up appointments, taking medication properly and have a better understanding of their care path and management plan. After two years of monitoring the program, BCBSAZ has found that, compared with non-PCMH patients, PCMH patients have 25 percent fewer ER visits and 12 percent fewer hospitalizations. There have been 31 percent fewer hospital admissions from issues that can be avoided or managed by getting a quick appointment with their PCP, such as a simple pneumonia, urinary tract infections, etc.; a 23 percent reduction in ER visits due to better education in self-management of conditions; and doctors in the program have prescribed generic drugs 8 percent more than other doctors, helping people save money on prescriptions. That’s why BCBSAZ works closely with PCPs and their teams to shape what the future of healthcare looks like. Blue Cross Blue Shield of Arizona is committed to helping Arizonans get healthier faster and stay healthier longer. With a focus on connecting people with the care they need, the not-for-profit company offers health insurance and related services to nearly 1.5 million customers.

DOUG ADELBERG Senior Vice President, Lovitt & Touché • lovitt-touche.com

Empowering Employees, Shifting Health Benefit Mindsets Saves Employers Money, Time With open enrollment around the corner, businesses are feverishly cobbling together benefits packages to meet their workforce’s diverse needs. After all, the vast majority of employees consider health coverage to be one of the most important employee benefits. While balancing deductibles, coverage, reimbursements and restrictions with costs and competitiveness, few employers take time to realize the fundamentally crucial components of a health benefit plan. Contrary to popular belief, it’s not sharing the nuances between option A and B. Much simpler, it’s about educating — and empowering — employees to be better consumers of healthcare. There is a difference between healthcare and insurance. Individuals utilize healthcare and insurance pays for a portion of the expenses related

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to healthcare. Making employees and their families better consumers of healthcare and educating them on all the insurance options available leads to lower costs for the employer.

EMPOWER EMPLOYEES

The average Amazon customer spends approximately 40 hours online researching products that add up to $2,500 annually. How much time do they really spend understanding their benefits? What do they spend? And, how do they consume healthcare? Empowering employees to look at where they’re spending their money, how much they’re spending and what they could save is vital. For instance, prescription costs differ vastly from one pharmacy to the next. Comparison shopping at mainstream chains, big-box retailers and even warehouse clubs, where memberships are not required for prescriptions, can add up in hundreds or thousands of dollars in savings.

SPEAK BEYOND THE BUILDING

Employers go to great pains explaining benefits to their employees. But many times, the decision maker and the utilizer of healthcare is not the employee but the spouse. Incorporating the spouse into the healthcare decision is a key step in making the participants in the employer plan better consumers of healthcare. For example, has the employee conveyed that there’s a telemedicine option, which can be a more efficient and cost-effective option for young families? Any parent will agree that calling a nurse 24/7/365 from his or her home is a better option than waiting for hours at a doctor’s office with a sick child. To bridge this information gap, employers should expand communications beyond the board room. Informative, easy-to-understand mailings and hosted information sessions targeting family decision makers have both been immeasurably successful.

CONSIDER ALTERNATIVES

Putting together benefits options can be an albatross for the most seasoned HR professionals. Despite their best efforts to build a plan they think will meet the greatest needs, it’s an educated-guess effort because every employee has unique circumstances. This is why private exchanges are rising in popularity. Employees can navigate a menu of options, choosing those that best suit their circumstances. It saves money by providing what the employee truly needs, and giving greater control creates both trust and appreciation. At the end of the day, an employer’s efforts should enhance employees’ lives. And since benefits are key to that end, arming them with the tools they need to make smart choices will ultimately create better consumers and provide greater value for both them and their company. Arizona-based Lovitt & Touché, one of the largest insurance brokerages in the nation, offers property and casualty insurance, specialty insurance, risk solutions for business, personal insurance, bonds and surety, and comprehensive employee benefits solutions.

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MIKE BECHTOL Director of Care Logistics. Redirect Health redirecthealth.com

Self-Funded Healthcare: An Innovative, Cost-Effective Approach to Employee Benefits Despite ongoing political discourse about improving our nation’s healthcare system, all signs indicate health insurance costs will continue to skyrocket. For business owners who have experienced rate increases year after year, it’s a tough pill to swallow. Some are forced to pass the expenses on to their employees in the form of high deductibles, copays or coinsurance. Others slim down their benefits packages to protect profitability. It’s a lose-lose situation. But a new solution is emerging — and it’s proving to be the silver bullet for employers who want to provide quality healthcare but can’t afford the annual rate hikes of traditional insurance.

SELF-FUNDED HEALTHCARE: A BETTER WAY

With self-funding, employers create their own benefit plan and pay health claims directly or through a third-party administrator. Businesses can choose from a wide variety of plan designs, and may offer benefits that include medical, dental, vision, prescription medications and workers’ compensation.

For employees, the health plan may look and operate the same. For business owners, a smart self-insurance plan will drastically reduce costs while providing better benefits.

IMPROVING EFFICIENCY THROUGH SELF-FUNDED HEALTHCARE

Simplifying access, understanding the factors that impact costs and helping employees navigate the healthcare system are key to building an efficient, innovative self-funded plan. Free Routine Care: Most traditional plans include deductibles and copayments, creating a barrier to care. Low-wage earners, especially, may choose to not seek treatment because they’re concerned about the money. This may result in extra sick days or reduced productivity. In some cases, health issues left untreated may become worse — and much more costly. A smart self-funded plan offers routine health services at no cost to employees. Treatment of common conditions like sinusitis, flu, colds and minor injuries is inexpensive for the business but highly valuable for employees. Stop-Loss Insurance: Companies that self-fund often purchase stop-loss insurance to cover claims that exceed a certain dollar amount. For example, claims costs may increase significantly for an employee who receives a complex medical diagnosis. This insurance ensures the employee receives the necessary healthcare while protecting the business from an unexpected financial loss. Factors that Impact Costs: The average cost of a hospital MRI is $4,000. The same MRI costs $300 at an offsite imaging center. There is no difference in quality. The same is true of X-rays, blood and urine tests, and

AI Isn’t SciFi When it comes to healthcare innovation, Artificial Intelligence is frequently discussed in the future tense: “Here’s what will happen in a few short years.” It’s important to imagine how healthcare might cure diseases in the future, but let’s take a closer look at how artificial intelligence is helping real people get healthier today. In the past six months, 44-year-old Andrea Egan — a mother of four — lost just

IBM Watson and Artificial Intelligence in Healthcare In 2011, IBM Watson made headlines when the AI machine went on “Jeopardy” and beat its two best champions at trivia. At the time, everyone predicted it was only a matter of time before Watson would beat cancer. Unfortunately, six years later, the medical community and scientists are beginning to accept the prediction for ending diseases is unlikely to happen in

over 40 pounds. She didn’t lose the weight from any crash diet. She lost it with the

the near future. That’s not because of any flaw in Watson’s machine learning or

help of real human coaches combined with artificial intelligence from Noom.

inferencing abilities; those have developed well since.

If you talk to Egan, she’ll tell you her human coach seemed to know just what

It’s because Watson doesn’t have nearly enough quality data; and the data it

to say when. When she was depressed, Egan says Noom Coach would send her

does have is correlational, not causal. Watson has the capability to draw complex

inspirational quotes or articles, lifting her mood. When she wanted to indulge in

inferences from a lot of data (like it did for “Jeopardy”), but it doesn’t have enough

food, she says her Noom Coach would pop up a message reminding her to visit her

“training” data to learn what to suggest in each case. Instead of just seeing how

group for support. Egan says that approach helped retrain the way she looks at food.

a patient’s health develops over time, it would need to have records of what

So how does artificial intelligence work behind the scenes to know what to

the doctor said and prescribed at each moment, and what local effect each

prompt, for whom and when? In Egan’s situation, Noom’s AI was able to leverage more than 4 billion coaching data points that Noom has collected in the past about how other past participants

intervention has. Such data is just not available and, because cancer is relatively rare, is heavily regulated and siloed across many EMRs. For artificial intelligence to revolutionize healthcare, it must have quality data

responded to certain situations and prompts: when was the read-thru-rate

in large amounts. The data can’t be biased, or it risks making flawed assumptions

(finishing the content) highest, for which people, and so forth. The AI then found

based on bad data. Noom’s strategy has been to focus on lower acuity conditions,

the most similar cluster of past situations, extrapolated a bit and matched it with

like obesity, where data is more plentiful and intervention is less regulated and

Egan, then repeated the action that got the best result (such as messaging her

risky. By learning there first, the AI can take the needed steps that would then

about visiting the group for support).

allow it to step up to more acute conditions.

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other common procedures. Hospitals generally charge five to 20 times more than independent labs or doctor offices. This happens at the pharmacy, too. A simple antibiotic may cost $40 at a corner store pharmacy but just $10 at a supermarket pharmacy. When people understand the factors impacting cost, they make smarter decisions about their healthcare: Care coordination: Most companies that self-fund hire a TPA to administer the plan. To realize the full benefit of self-insurance, businesses may also consider partnering with a third-party organization to help employees navigate the healthcare system and get the care they need at the most appropriate site of service. Redirect Health, a national leader in healthcare delivery based in Scottsdale, specializes in building healthcare solutions that are easy and affordable.

DAVID ALLAZETTA Chief Executive Officer, UnitedHealthcare of Arizona uhc.com/contact-us/arizona

Healthcare Transparency Helps Improve Outcomes As our nation seeks solutions to help improve health outcomes and make healthcare more affordable, there are a variety of resources available to help Arizonans comparison shop for healthcare based on quality and cost.

To date, Noom has 4 billion data points of coaching data. Because all that is collected in Noom’s own programs, it can collect very rich data. That means it has information on what a coach told a person to do, what the person did in response and what the long-term effects were. This is precisely the type of data that AI systems like Watson need to learn. It’s the largest coaching data set in the world, helping us understand, predict and change behavior patterns. As that data set grows to 10 times the size over the next few years, AI will be able to get significantly better than humans can ever imagine. Noom Coach is used in literally every country in the world, and, since the data is entered by real people, it provides deep insight into how people behave. More than 100,000 people have used this AI and human combination to get healthier. While Noom has currently focused on obesity, it shares lifestyle factors of exercise and diet with diseases that cause 50 percent of deaths worldwide, according to the World Health Organization. And yes, that includes many forms of cancer. Perhaps then, one day soon, Noom will help Watson figure out that cure. —Artem Petakov, co-founder and president of Noom Inc.

Giving consumers, healthcare professionals and other stakeholders access to information on healthcare prices could reduce U.S. healthcare spending by more than $100 billion during the next decade, according to a 2014 report by the Gary and Mary West Health Policy Center. That is in part because there are significant price variations for healthcare services and procedures at hospitals and doctors’ offices nationwide, yet a study by Families U.S.A. concluded that higher-priced care providers do not necessarily deliver higher-quality care or better health outcomes. For example, in Phoenix, a knee MRI can cost from $390 to $1,635, and back surgery (lumbar fusion) can range from $42,820 to $91,345. There are many new online and mobile resources that provide people access to healthcare quality and cost information, enabling them to comparison shop for healthcare as they would with other consumer products and services. And people are starting to take action: Nearly one-third of Americans have used the Internet or mobile apps during the last year to comparison shop for healthcare, up from 14 percent in 2012, according to a recent UnitedHealthcare survey. ar more accurate and useful than those of past generations, and, in some cases, provide people with estimates based on actual contracted rates with physicians and hospitals, including likely out-of-pocket costs based on their current health plan benefits. Some resources also include quality information about specific physicians, as determined by independent standards. There are many resources people can consider when shopping for healthcare. In addition to online and mobile resources, people can call their health plan to discuss quality and cost-transparency information, as well as talk with their healthcare professional about alternative treatment settings such as urgent care and telehealth options. Public websites, such as www.uhc.com/transparency and www.guroo.com, also provide access to market-average prices for hundreds of medical services in cities nationwide, including Phoenix. These resources can help people save money and select healthcare professionals based on objective quality and cost information. A UnitedHealthcare analysis showed that people who use online or mobile transparency resources are more likely to select healthcare providers rated on quality and cost-efficiency across all specialties, including for primary care (7 percent more likely) and orthopedics (9 percent more likely). The analysis also found that people who use the transparency resources before receiving healthcare services pay 36 percent less than non-users. As people take greater responsibility for their healthcare decisions, transparency resources are becoming important tools to help consumers access quality care while avoiding surprise medical bills. UnitedHealthcare is dedicated to helping people nationwide live healthier lives by simplifying the healthcare experience, meeting consumer health and wellness needs, and sustaining trusted relationships with care providers. The company offers the full spectrum of health benefit programs for individuals, employers, military service members, retirees and their families.

(www.noom.com), who began coding at the age of nine and holds a B.A. in Computer Science from Princeton University.

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LOUDER THAN WORDS

Crisis Communication Is Key for Businesses

A playbook for winning a media crisis before it’s too late by Keith Yaskin

IN BUSINESS

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OCT. 2017

Decisions

HEALTHCARE

Innovation

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HEATHCAR E

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What is healthcare doing to make us health ier?

Crisis

Communica tion

Innovation and Buy-In

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Keith Yaskin is president of The Flip Side Communications LLC, a media company that helps companies tell their stories through video production, public relations, media training and employee communications. He has 17 years’ experience as a TV reporter, primarily an investigative journalist. He won three Emmys and three first place Associated Press Awards. The AP once named him Arizona’s TV Reporter of the Year. He graduated from Northwestern University’s Medill School of Journalism, where he received the Gary Cummings Memorial Award as the top broadcast student. As a reporter, Yaskin covered everything from government to business to education. He has covered hurricanes and space trips to Mars and interviewed countless CEOs, public figures and celebrities. theflipside communications.com

OCT. 20 1 7

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The NFL’s regular season starts each September, but the preparation for battle is a year-round process: There’s free agency, the college draft, mini-camp, organized team activities, training camp and the preseason. Now, imagine the controversy and outrage from fans, sports radio and ESPN’s talking heads if teams walked into stadiums and stood on the sidelines of the first game without preparation or a strategy in hand. What if head coaches looked across the sidelines at opposing teams, sized them up and decided in impromptu fashion how to draw up victory? This unprepared, let’s-wing-it approach is how most organizations attack crisis communications. The ways that companies and people screw up vary: blowing a big interview on "60 Minutes," verbally jousting with journalists, physically threatening them and swiping a reporter’s microphone and tossing it into a lake. (Yes, that actually happened!) The difference from football is, the opposing teams are the news media and a cynical public prepared to pounce on the first sniff of a company’s potential misdeeds. Crises often sneak out of the shadows, and the ensuing negative publicity can sideline companies in a number of ways. The financial consequences vary, but a news media crisis can cost companies millions of dollars in revenue and send stock prices down double digits. Even if businesses ignore interview requests and weather the storm silently behind closed doors until the thunder stops, how can executives truly tap into whether wordof-mouth is spreading the negative news? Not directly hearing criticism doesn’t mean it won’t eventually strangle the bottom line and reputations. From an employee standpoint, a crisis can impact morale and hiring. A recent CareerBuilder survey revealed that 71 percent of U.S. job seekers would not apply for jobs with a company experiencing negative publicity. Organizations too often contact someone for crisis communications assistance when reporters are already pounding on their front doors and unfavorable stories and posts are flooding social media. And remember, as an airline recently demonstrated, the way companies mishandle a crisis can make a messy situation even uglier. Businesses can prepare for a media crisis before it pops up by immediately taking the following four steps. First, assemble a crisis communications team. Consider a mom-and-pop business that had expanded over the decades into something much more, and, one day, is contacted by a freelance writer working for a major online magazine who explains one of the company’s products includes something controversial. The company contacts a public relations firm to determine if and how to respond. While the freelance writer waits for a response, the company learns the PR firm’s fee, signs an agreement, gets the firm up to speed, determines which managers should take part in various discussions, crafts a written response, consults with an attorney, revises

the statement and ensures top management signs off on the whole thing. To avoid chaotic situations like this, consider: • Who would coordinate news media requests for interviews? • Who would then provide those interviews as company spokesperson? • Who will back-up these roles if the official spokesperson is traveling overseas when a crisis strikes? • How will the organization react promptly if a crisis occurs during holidays, weekends or after regular business hours? • Will leaders provide regular updates to employees? • Who will monitor social media for discussions about the crisis? • Who will communicate the facts to stakeholders such as employees, key clients, investors and the board of directors? • Who will ensure everyone providing public statements is using accurate and consistent language? • Who will ensure frontline employees will take the proper steps when reporters and angry customers unexpectedly confront them when managers are not on site? • Once the team is together, ask, “What are possible crises the company might face in the future? What could possibly go wrong?” • If something goes wrong, what are the best ways to reach the business’s most important target audiences: Mainstream media? A specific news outlet? A trade publication? Social media? A prepared statement? A faceto-face interview? Second, practice handling media interviews by hiring a media training firm or regularly practicing with colleagues. Think about an organization contacted by a reporter after an incident on its property whose general manager is the only person on staff in a position to talk with the media but is enjoying a vacation several states away. Contacted by his staff, he feels he faces no other choice but to cut his vacation short and return home immediately to attempt to save the day. To ensure a company’s employee roster has depth and is not solely dependent on one person, ask several team leaders to address the following questions: • What are key messages and concise quotes and soundbites the company could provide to simply explain the facts of a crisis? • How can the organization proactively address misinformation? • Is there an opportunity to use the crisis to better educate the public about an issue? • What positives might the company share during a negative news story?

Team Effort: Will the company’s attorney be part of the crisis communications team? Lawyers and PR pros often lock horns on how to publicly handle a crisis. One side wants to prevent liability. The other side wants to save reputations. A meeting of the minds now is better than attempting to see eye-to-eye while the storm surrounds the team later and threatens to engulf it.


BETTERING YOUR BUSINESS

The Invisible Leader

• W  ould the company be willing to acknowledge it made a mistake? • If the business has blundered before in a similar way, is the company also prepared to address problems from the past? • Would the organization be willing to offer a straightforward apology? Third, ensure employees have the information and tools they need. When employees hear news about their company in the media and don’t have access to the facts themselves, they sometimes fill in the blanks with misinformation. Friends and family ask them for the inside scoop and employees place their own interpretation on rumors and bits of information. In addition, organizations erode trust among their employees when those employees don’t receive critical information firsthand. Businesses’ strongest advocates are often employees; ensure they are top priority during a crisis by consider the following: • Is the company providing all necessary details about the crisis to employees before they hear about it from media or customers? • What questions will employees have? Will they wonder if this affects their jobs? Are there changes they need to know about? What procedures should they follow? • Do leaders have the tools to give their teams regular updates throughout the crisis? • Do employees have talking points to explain the situation and update customers, family and friends? • Where do employees go for answers to additional information, feedback and questions? Fourth, develop an online strategy. It’s the beginning of a holiday weekend. Part of an organization’s infrastructure breaks down, impacting a neighborhood. The news media arrive to cover the event. The top manager initially minimizes the public fallout and posts on social media a short, factual but robotic-sounding statement, but negative comments begin to saturate social media. At first, the organization does not realize customers are posting most of their complaints on a local TV station’s Facebook page. At this point, a PR coordinator discusses developing a strategy that shows empathy and that the organization is trying to fix the issue. Three days pass before the organization posts a more detailed, empathetic response. Answering these questions will help develop an online strategy and timely responses. • What social media posts will the company respond to? Will posts sound genuine, friendly and empathetic or scripted, further stirring up the pot? Repeatedly posting canned responses further erodes credibility and authenticity while the public rolls its eyes in disgust. • Who will check commonly-used third-party forums where customers might take their grievances? For example, angry clients might vent frustrations on the Facebook page of a TV station which aired a story about the business. Don’t assume customers will spew their venom only on an organization’s official social media channels. • Who will check review sites such as Yelp and the Better Business Bureau to ensure the company provides proper responses? • Who will set up and monitor Google Alerts about the business and industry to make sure the crisis communications team knows as soon as possible when the news media and public are discussing the organization? Taking these steps now will help the company achieve one of the most important goals during a crisis: responding quickly. The public is impatient. The news media demand answers almost immediately. Taking too long to respond indicates, fairly or unfairly, that a business does not fully appreciate the magnitude of the situation and is insensitive.

The best leaders aren’t people. Instead, innovative and emerging research shows that a compelling and other-centered authentic purpose — “The Invisible Leader” — may be the most powerful influencer of our behaviors, attitudes and motivation in organizations, work, school and life. Yet, despite the increasing evidence of purpose’s power, many of the organizations, systems and institutions that dominate human life aren’t built to elicit and leverage the fundamental human search for purpose and meaning. In “The Invisible Leader,” international speaker, trainer, and organizational performance scholar Zach Mercurio combines practical tools, storytelling, research, and case studies to show business leaders, educators, students, athletes, and parents how to awaken, clarify, and deliver their reason for existence — their authentic purpose. The Invisible Leader: Transform Your Life, Work, and Organization with the Power of Authentic Purpose Zach Mercurio

224 pages

Publisher: Advantage Media Group

$19.99

How Leaders Improve Written by a team of highly experienced and successful executive leadership consultants, this book offers 10 datadriven insights regarding leadership effectiveness, accompanied by practical and easy-to-implement recommendations that directly serve the development of leadership ability. The book provides insights based on a sample of leaders who improved significantly over time, supplying findings that are based on actual research, not just opinion or anecdotal “evidence.” It offers practical and applicable recommendations for how individual leaders, organizations, and coaches/managers can apply the 10 insights shared in the book and provides a novel framework for determining and assessing who is “ripe” for a leadership development opportunity (the RIPEN model), an effective way for individuals or organizations to determine in which leadership candidates to invest precious development resources. How Leaders Improve: A Playbook for Leaders Who Want to Get Better Now John Gates, Jeff Graddy and Sacha Lindekens

177 pages

Publisher: Praeger

$37

Available: 10/31/2017

The People First Effect Veteran consultant and award-winning author Jack Lannom outlines a clear, comprehensive strategy for increasing trust and decreasing tension in one’s personal and professional lives. The People First Effect is a business fable about CEO Dan Burton. Dan has successfully led his company out of the 2008 recession and sees his organization moving back toward sustainable growth — only to learn that his company has been sold to a foreign investor. In the turmoil that follows the takeover, Dan is faced with the challenge of rebuilding strong, trust-based relationships in his personal and professional lives. Told in the form of a fast-paced fictional story, it lets the reader sit in on informal Q&A sessions with seven real-life executives who are currently practicing the principles so clearly explained in this highly informative and practical book. The People First Effect: 7 Keys for Mastering High Trust in a Low Trust World Jack Lannom Publisher: Savio Republic

One way to exacerbate a crisis is to have actions not match words. If companies promise to improve in the future, it must take actual steps to do so.

Available: 10/24/2017

256 pages Available: 10/31/2017

$26

29 20OCT.1 7 INBUSINESSPHX.COM


OUR SUBJECT IN-DEPTH

Successful Innovation — Technology vs People Seven ways for a company to introduce innovation by Steven L. Blue

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Steven L. Blue is the president & CEO of Miller Ingenuity, an innovative company revolutionizing traditional safety solutions for railway workers, and author of the new book, American Manufacturing 2.0: What Went Wrong and How to Make It Right. milleringenuity.com SteveBlueCEO.com

The reason innovations fail is not because of technology. It’s never about the technology. Innovations fail because of people. The people who might employ a new technology may not be sold on it. Or they might be afraid of it. Or they might feel threatened by. Welcome to the dark side of innovation. However, the biggest threat to innovation a company is trying to develop will be its own people. This threat comes in one of several forms, and sometimes in all of them. First, people may want to cling to the old tried and true. As false as it is, tried and true gives people comfort. Or they may not want to cannibalize an existing product with a newer technology. Often, people will feel threatened by innovation because they think it will outdate their skills and therefore their jobs. It is necessary to neutralize these threats when introducing innovation into a company. Here are seven ways to introduce innovation into a company: 1. Make innovation a top priority. Don’t let it be an activity that people should pay attention to “after they get the real work done.” Innovation is the real work. 2. Put your money where your mouth is. Promote people who champion the innovation efforts. Incentive people who support the effort. Make innovation a key component of performance evaluations. If people aren’t supporting the effort, make that a reason for possible termination. Create the time and physical space for people to gather and brainstorm ideas. Set key goals for the number of ideas to be generated. Support the best ideas with funding. 3. Be prepared to coach people who are against the effort. Be ready to make organization changes. That means moving people out of the organization or down in the organization if they threaten the effort. Watch out especially for the “not invented here” syndrome. 4. Remember the 3 C’s of effective communications: Clear, compelling and convincing. Be very clear in communicating expectations. Paint a compelling picture of what happens to the company if it doesn’t innovate (read: bad things), and all the good things that will happen when

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the innovation efforts are successful. And be convincing as to why innovation is so important. You don’t have to look very far to find examples of companies that failed to innovate to use as examples. Just look at the case of Kodak: Its leadership knew long before it happened that digital was on the way in and print was on the way out. Kodak didn’t fail because they didn’t know how to innovate to meet that threat; they failed because they didn’t want to. There’s also a great example of an old-line company that innovated its way out of death’s door: Encyclopedia Britannica also saw the digital revolution coming. But, unlike Kodak, its leadership chose to innovate by going entirely digital. Now, Britannica’s digital sales are better than its print sales ever were. Where are its print sales? Gone. And so would be the company if it hadn’t innovated. Paint both sides of the “Why are we doing this?” picture. I like to use what I call the El Dorado/El Chapo model. If we innovate, we are on the road to El Dorado; if we don’t, we are on the road to El Chapo. 5. Hire or contract the resources needed to innovate. Companies need to understand that its own people won’t know what they don’t know. Fresh, new ideas from outside the organization will be needed. 6. Make the commitment to employees that they will be trained in the new innovations the organization chooses to adopt. Don’t let them think the plan is “in with the new and out with the old” or they will be sure to be against it. 7. Regularly review progress in the innovations efforts. This needs to be done by the CEO so the organization knows this is a serious effort. Stay very close to the effort so as know when it starts to break down. And when it does (not if, because it will from time to time), take action fast. Always remember innovation never fails because of technology. It fails because of people: people who aren’t convinced it is necessary, people who are threatened by it, people who long for yesterday instead of tomorrow. Follow these seven steps to ensure the company’s innovations don’t fall flat.


BY MIKE HUNTER

OCTOBER 2017

WESTMARC

Arizona Small Business Association

THRIVE! SmallBIZCON Thurs., Oct. 12 | 12:30p – 6:00p The Arizona Small Business Association presents THRIVE! SmallBIZCON, an action-packed one-day event that’s all about standing out and building a thriving business. With an expected attendance of more than 350, the program is designed to give attendees a “front row” access to leaders in business development, marketing, finance, social media and technology. Special break-out sessions will be focused on professional growth, and a few fun surprises are planned. ASBA offers attendees a choice of four different tracks, each designed to educate them on a different aspect of business. Track A is “Let Go & Grow: Productivity Tips.” Track B is “Innovation & Technology.” Track C is “Marketing & Social Media.” The fourth, “Fast Track” is “The Essential Business Toolkit.” Participants will learn from an amazing group of inspirational speakers.  And the interactive sessions are designed specifically to have attendees leaving with strategies they can implement immediately! The event kicks off with a pre-conference happyhour party, which is only the beginning of endless opportunities to network with fellow attendees, sharpen business skills and get exposed to innovative ideas. This includes the Small Biz Pavilion, where attendees can hear from other small businesses that are successful here. Members: $35; non-members: $45; group of 3 or more: $20 each Events on Jackson 245 E. Jackson St., Phoenix azsmallbizcon.com

‘Best of the West Awards’ Dinner Thurs., Nov. 2 | 5:30p – 9:00p WESTMARC’S Best of the West Awards Dinner is the signature event of the West Valley. Since the inaugural event in 1993, it has developed a rich history of celebrating outstanding accomplishments and contributions to the quality of life, economic development, innovation and leadership in the West Valley. The evening begins at 5:30 p.m. with a silent auction, followed at 7 p.m. with dinner and presentations. “The Best of the West Awards recognize outstanding contributions to the image, lifestyle and economy in the West Valley,” says Sintra Hoffman, president and CEO of WESTMARC — the Western Maricopa Coalition — which is a public-private partnership of the 15 communities, the business community and the educational sector in the West Valley. “WESTMARC is proud to honor these outstanding individuals and organizations making a great impact in the West Valley.” At the annual event, this year celebrating its 25th anniversary, WESTMARC will announce West Valley award winners among individuals, organizations, businesses, facilities and programs in three categories: Economic Engine, Quality of Life Enhancement and Excellence in Innovation. The Economic Engine Award recognizes individuals, organizations, businesses, facilities or programs which have created a significant economic outcome and/or job creation for the West Valley. The Quality of Life Enhancement Award recognizes individuals, organizations, businesses, facilities or programs which have enhanced the quality of life for West Valley residents. The Excellence in Innovation Award recognizes individuals, organizations, businesses, facilities or programs which have demonstrated an innovative concept to accomplish one or more of the following: fulfill a need for West Valley Residents or Preserve the West Valley Assets or Resources. In addition to the three annual awards, WESTMARC will also present awards for West Valley Inspiration in Leadership and West Valley Regional Advancement. Members: $250; non-members: $275 University of Phoenix Stadium 1 Cardinals Drive, Glendale

OCTOBER 2017 S M T W T F S

westmarc.org

SAVE THE DATE

Upcoming and notable

STATE OF THE CITY ADDRESS Nov.

Fri., Nov. 3

3

The Tempe Chamber of Commerce, in conjunction with the City of Tempe, is pleased to present Mayor Mark Mitchell’s state of the city address. tempechamber.org

DOWNTOWN MESA FESTIVAL OF THE ARTS Nov.

Sat., Nov. 4

4

This free event features unique artist creations, music and fun for the whole family. The mission of the Downtown Mesa Festival of the Arts is to provide an environment that encourages the economic and artistic growth of emerging and established artisans and crafters, while revitalizing downtown Mesa and building a sense of community. mesachamber.org

1 2 3 4 5 6 7 8

9

10

11

12

13

14

15 16 17 18 19 20 21 OCTOBER 2017 NOTABLE DATES 22 23 24 25 26 27 28 Mon., Oct. 9 — Columbus Day 29 30 31

Tues., Oct. 31 — Halloween

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OCTOBER 2017 Thurs., Oct. 5

7:15a – 3:00p

Leadercast Women 2017 Gilbert Chamber of Commerce Attend Leadercast Women to learn how purpose motivates teams and individuals to change the world, from top female leaders Mama Jan Smith, multi-platinum vocal coach and Grammy-nominated producer; Ginger Hardage, former senior vice president of culture & communications for Southwest Airlines; Molly Fletcher, former top sports agent and author; Jenn Lim, chief happiness officer at Zappos; and more. Host for the event is Dana Barrett, TV host, business commentator and radio host of The Dana Barrett Show on AM 1190 WAFS. $99; registration closes Oct. 2 The Falls Event Center Thurs., Oct. 5 Mon., Oct. 2

4635 E. Baseline Rd., Gilbert

gilbertaz.com

5:30p – 8:30p

GPEC Annual Event – The Connected Experience

3:00p – 5:00p

Fri., Oct. 13

Grow Globally Fair Phoenix

Greater Phoenix Economic Council

Global Chamber

ASU SkySong – Synergy I/II

Join the Greater Phoenix Economic Council and the region’s leading business and civic leaders as we celebrate a year of working together to build the economy of Greater Phoenix. Join us for this unique event featuring live entertainment and continuous hors d’oeuvres and chef stations. The Connected Experience provides you with new ways to network and connect in a creative environment while enjoying some of the best food and drink Greater Phoenix has to offer.

1365 N. Scottsdale Rd., Scottsdale

$250

phoenix.globalchamber.org

The Croft 22 E. Buchanan St., Phoenix

Attention exporters, importers and investors: This event brings all the global resources, all together, one time per year. Members: free; non-members: $30

2

4

5

2:00p – 6:00p

2017 East Valley Business Expo Gilbert Chamber of Commerce As the largest annual event of its kind in the East Valley, the expo provides a dynamic setting for both business-to-business and business-to-consumer outreach. The East Valley Business Expo was attended last year by more than 1,000 people and more than 100 exhibitors were on site to showcase their businesses. This event will attract a recordsetting crowd in 2017. Gift cards, door prizes, raffles and giveaways always draw a huge turnout and keep the energy dynamic. Video testimonials from exhibitors and attendees are available on the expo website.

Mesa Morning Live Mesa Chamber of Commerce Second Friday of each month. Live TV talk show in the style of “The Late Show.” Pre-registration: $20; at the door: $30 Crescent Crown Distributing 1640 W. Broadway Rd., Mesa

gpec.org

6 Fri., Oct. 6

Wed., Oct. 4

mesachamber.org 10

11:00a – 1:30p

Tues., Oct. 10

12 Noon – 1:15p

Women of Achievement

Phoenix Luncheon

In Business Magazine

Arizona Association for Economic Development

In Business Magazine honors the talents of women business owners, managers and leaders who have achieved great success in our Greater Phoenix business community. At this elegant and celebratory luncheon, attendees will enjoy inspiring stories of achievement and meet this year’s Lifetime Achievement honoree, Linda Herold; hear the amazing story of our keynote speaker, Letitia Frye; and become more inspired to enrich our local community.

Speaker information to be announced. Members: $45; non-members: $65; register by noon on Oct. 5 Phoenix Country Club 2901 N. 7th St., Phoenix aaed.com

$75 Camelback Inn Resort

Thurs., Oct. 12 & Thurs., Oct. 26

5402 E. Lincoln Dr., Scottsdale

North Phoenix Chamber of Commerce Short, hands-on workshops designed specifically to help small-business owners learn how to record and use video in their marketing campaigns. This hands-on workshop is designed to get attendees started right away and leaving the room with something actually completed. $5 cash at the door Elevate Coworking Suite

Mesa Convention Center

4568 E. Cactus Rd., Phoenix

263 N. Center St., Mesa

northphoenixchamber.com

gilbertaz.com

32

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For more events, visit “Business Events” at www.inbusinessphx.com

6:00p – 7:30p

Elevate Your Marketing with Video

inbusinessevents.com

Free with a business card

OCT. 20 1 7

6:45a – 8:30a

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

13


Wed., Oct. 18

4:00p – 6:00p Tues., Oct 24

Chamber Chat – After Hours

11:00a – 1:00p

Business Resource & Networking Luncheon

Gilbert Chamber of Commerce

North Phoenix Chamber of Commerce

Event will be held at one of the newer Gilbert restaurants, in Gilbert’s Heritage District. Spouses are welcome to this community event.

Networking opportunity with Chamber members and the businesses/fields they represent, as well as other business owners and community leaders at this monthly luncheon event.

$10; pay at the door. Includes appetizer buffet; participants responsible for own beverage purchase and tip.

Members: $20; guests: $25; at the door: $30 (cash only)

Clever Koi

Manuel’s Mexican Restaurant & Cantina

384 N. Gilbert Rd., Gilbert

1111 W. Bell Rd., Phoenix

gilbertaz.com

northphoenixchamber.com Wed., Oct. 18

6:00p – 8:00p

Wed., Oct. 25 – Fri., Oct. 27

Local First Arizona October Business Gathering

Fall Forum – ‘Strengthening Your Economic Toolkit’ Arizona Association for Economic Development

Local First Arizona Connect with local businesses from around the Valley on the iconic patio of Brat Haus. Enjoy bites, cash bar and free raffle.

Event aimed at economic development professionals offers workshops, presentations, hikes, and tours of downtown Prescott. Economic development experts will share economic tools, case studies for success and more in a number of areas.

Free to attend

Members: $399; non-members: $500

Brat Haus

Prescott Resort

3622 N Scottsdale Rd, Scottsdale

1500 AZ-69, Prescott

localfirstaz.com

aaed.com

19

24 Tues., Oct. 24

25 Wed., Oct. 25

11:30a – 1:00p

Elite Networking Luncheon

Mesa Chamber of Commerce

Phoenix Metro Chamber of Commerce

Fourth Tuesday of every month, the Women’s Business Connection provides information and a networking forum for professional women looking to enhance their business skills.

Elite business and social networking.

Members: $15; non-members: $25

Members: free if pre-register, $5 at the door; guests: $10 if pre-register, $15 at the door

Buca di Beppo,

Bourbon Jacks

1730 S. Val Vista Dr., Mesa

7000 E. Mayo Blvd., Phoenix

mesachamber.org

phoenixmetrochamber.com Thurs., Oct. 19

26

11:30a – 1:30p

Women’s Business Connection

Thurs., Oct. 26

5:00p – 7:00p

8:00a – 9:00a

Business After Hours

Coffee Time

Glendale Chamber of Commerce

Mesa Chamber of Commerce

Held each month in conjunction with a valued member, these events provide an opportunity for Chamber members and their guests to come together in a relaxed atmosphere while sharing ideas, products and services offered. Attendees are encouraged to bring flyers or brochures on their company for the member display table.

Attendees to the Chamber’s Coffee Time will join local business owners and fellow Chamber Members in an informal networking opportunity. Coffee Time is held at sponsored business locations, and reservations are not required. This is a great way to meet, greet, and exchange business cards.

Members and their guest: free; future members: $60

Ice Cream & Company

PGA TOUR Superstore 7360 W. Bell Rd., Glendale

1130 W. Grove Ave., Mesa

glendaleazchamber.org

mesachamber.org

2017 Healthc are

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

OCT. 2017

18

Wed. morning – Fri. noon

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WE VALUE WHAT WE OWN

IN BUSINESS

2017 Healthc are

2017 Mazda CX-9 Signature Edition

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2017 MAZDA CX-9 SIGNATURE EDITION MSRP: $44,315 Hwy: 26 mpg City: 17 mpg Trans: 7-speed automatic 0-60 mph: 7.2 sec

Luxury in its class is not all that this all-new Mazda CX9 is getting attention for. It is fuel efficient, technologically savvy and as safe as they come. With a 250-horsepower SKYACTIV-G 2.5T Dynamic Pressure Turbo DOHC 16-valve 4-cylinder with VVT engine, this mid-sized SUV hums along with power and precision. The Signature edition boasts some very luxurious appointments that only add to the ride and experience for all passengers. Supple Nappa leather, sculpted aluminum and genuine Rosewood deliver a multi-sensory driving experience of sophistication and indulgence. To create a customized, premium sound experience for the CX-9, hundreds of factors were considered, from cabin size and materials to seat positioning. The result is a custom signature Mazda Sound, using an available 12-speaker Bose® Centerpoint® 2 Surround Sound System. No matter where one sits, one hears rich, stunning sound that emulates a live performance. Mazda’s available predictive i-ACTIV AWD® all-wheel-drive system monitors changing road conditions and adjusts power delivery to help give optimal traction before the wheels could slip. Even when the weather’s perfect, i-ACTIV AWD® helps stabilize and improve the CX-9’s overall road grip by sensing changes in steering effort and throttle input to distribute torque more evenly.

“Soul of Motion” design philosophy conveys a sense of strength and energy manifested in the CX-9’s athletic stance, elongated hood and tapered roofline. The overall effect is a combination of composed power and instantaneous movement, resulting in a truly striking threerow SUV. —Mike Hunter Mazda mazdausa.com

Car ID with Personality License plates are more than car identification. In Arizona, the choices of personalized plates from the Department of Transportation offer car owners the opportunity to support Phoenix), or create awareness for causes (Honoring Fallen Officers, It shouldn’t hurt to be a child). People have also been known to choose a license plate for its aesthetics — such as Arizona Agriculture, whose design is a chic textured black with the Future Farmers of America logo modestly reposing in the upper left corner. —RaeAnne Marsh servicearizona.com/webapp/vehicle/plates/startChoice.do

OCT. 20 1 7

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Where Did Mazda Get Its Name? Most historians say the Mazda name is derived from a combination of two names: “Ahura-Mazda,” the Avestan name of a Zoroastrian deity known for its wisdom, and Jujiro Matsuda, the Westernized pronunciation of the Mazda Corporation founder’s name.

Photos courtesy of Mazda (top); Service Arizona (bootom)

their team (there seem to be a lot of Cardinals fans in


BY RAEANNE MARSH

MEALS THAT MATTER

Chelsea’s Kitchen: Roadhouse on the Canal The sense of “come on in and visit” starts with the short walkway meandering through the grassy front yard past shallow ponds to the expansive front porch. Part of the LGO Hospitality family of restaurants, Chelsea’s Kitchen exudes a roadhouse ambience despite not technically meeting the definition of being beyond city limits. Dine in homey comfort inside or choose the patio that is completely shrouded beneath spreading mesquite trees — with glimpses of the canal through the foliage. Chelsea’s Kitchen’s version of comfort food draws from numerous culinary influences. Deviled eggs are a house specialty, and a good starter. The Chicken Nachitos is also great, but be forewarned: Although the name sounds like a small plate, it can easily serve two — or more, if not intended as just a starter. Signature entrées include the taco platters that come with mounds of fresh guacamole, cabbage and pico de gallo alongside the diner’s choice of ribeye steak, grilled swordfish, grilled ahi tuna, short ribs, surf-and-turf steak and shrimp, or the vegetarian option of grilled locally farmed vegetables — for make-your-own tacos on made-to-order corn tortillas. Side

TUNA TARTARE & GUACAMOLE Fresh tuna, radish, soylemon vinaigrette

serving on all platters is Chelsea’s Kitchen’s tasty kale slaw. Moist and flavorful from the restaurant’s smoke yard is another entrée option, the roasted Jidori chicken, a meaty half chicken served with seasonal fresh vegetables. And it would be hard to pass up one of the best Key Lime pies in the area, served with a small scoop of gelato. Make the dessert course complete with some coffee, a quality roast served freshly French-pressed at the table.

$15

Chelsea’s Kitchen 5040 N. 40th St., Phoenix

DIXIE PAN-FRIED CHICKEN

(602) 957-2555 chelseaskitchenaz.com

Served warm picnic style with colcannon potatoes

It’s Patio Time Again

$24

We’re getting into the balmy weather so appreciated by outdoor enthusiasts — including those who

Zinc Bistro

House of Tricks

In addition to its secluded patio,

A very residential setting as if

The Farm at South Mountain (pictured)

this French bistro also offers

spread for a grand party on the

More a wide-open picnic spot

sidewalk seating for some

tree-sheltered yard.

than a patio, this tree-shaded

great people-watching in the

114 E. 7th St., Tempe

locale is counter-serve for

heart of Kierland Commons.

(480) 968-1114

salads, soups and sandwiches.

15034 N. Scottsdale Rd.,

houseoftricks.com

6106 S. 32nd St., Phoenix

Scottsdale

(602) 276-6360

(480) 603-0922

thefarmatsouthmountain.com

zincbistro.com 2017 Healthc are

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Photos courtesy of The Farm at South Mountain (bottom)

enjoy dining al fresco. Here is a sampling of restaurants whose patios are as great as their menues.

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OCTOBER 2017

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Activate Human Capital Over the last half century, college textbooks on management have taught the importance of valuing the human assets of a business, and they have also focused on how to effectively and appropriately manage those assets. And yet, we look around and rarely see it practiced. In Activate Human Capital, author Richard N. Morrison outlines the eight People-Focused Principles of Management, and he explains them in terms of the values that motivate people to want to do the work given to them. And even more, he shows how these values will actually get employees to initiate their work because they will see how it contributes to the overall purpose of the business. Each principle-such as giving people a purpose, communicating widely, accommodating change, creating a culture of worth and hope, and rewarding performance, to name a few-is linked to a component of human fulfillment, and then through research, personal experience, and shared stories, Morrison discusses how to activate each principle and demonstrates what it should look like in the workplace. Eight simple principles can help enhance all business relationships and improve efficiency, productivity, and profitability-if only managers are willing to change. People-focused management has been done, is being done, and will be done increasingly more often as more business leaders comprehend the potential in this empowering form of leadership. When employees feel valued, respected, encouraged, and fulfilled, they will work harder and be more invested in their work-and in

Richard Morrison Founder and Author Activate Human Capital

the success of the business.

To learn more visit www.ActivateHumanCapital.com/book 36

OCT. 2017

INBUSINESSPHX.COM


TEMPE CHAMBER

ADVANTAGE Fall 2O17 • tempechamber.org

Tempe Chamber of Commerce Supports School District Overrides, Bond in November Elections The Tempe Chamber of Commerce Board of Directors voted August 22 to support the bonds and overrides proposed by the Kyrene Elementary School District and the Tempe Union High School District. The bond and override questions will be on the November ballot for Tempe voters to consider. The Tempe Chamber believes the money is needed and will enhance the education experience for students in each of the districts. Kyrene Elementary School District will have two override questions and one bond question on the ballot. The two budget override questions will not increase taxes. They are a continuation of existing overrides to be used for maintenance and operation and capital. The loss of the Kyrene overrides could lead to the loss of funding for teacher salaries, increased class sizes and the risk of losing music and art programs as well as the district’s technology program. The bond reauthorization will fund much-needed repairs and improvements of school facilities, busses and the ability to move forward with preschool expansion.

Tempe Union High School District will have one override question on the ballot. It includes a small tax increase since the override amount will increase from 10 percent to 15 percent if approved by voters. The revenues will be dedicated to teacher salaries. The Kyrene Elementary School District includes south Tempe, Ahwatukee and portions of Chandler. The Tempe Union High School District encompasses all of the City of Tempe.

Tempe Mayor Mark Mitchell to Speak at State of the City Address The Tempe Chamber of Commerce, in conjunction with the City of Tempe, is pleased to present Mayor Mark Mitchell’s State of the City Address on November 3, 2017. Members of the community are invited to attend this informative and compelling presentation. The mayor will be sharing his thoughts on the local social and economic climate along with his vision for the growth and future of Tempe and Arizona. This breakfast event provides a valuable opportunity to enjoy a breakfast with civic, business and political leaders of the Valley. 

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Tempe Chamber Announces New Members of the Board of Directors The Tempe Chamber of Commerce has confirmed three new members to its board of directors. Their terms will begin July 1. The new members of the board are:

Tina Lee OneAZ Credit Union

Marshall Hunt Davis Miles McGuire Gardner, PLLC

Jennifer Ochoa Wells Fargo

Lee is a seasoned financial services professional and a former small-business owner. She has been with OneAZ Credit Union for more than 20 years, serving as a branch manager and loan officer in Safford, Phoenix and Tempe.

Hunt is an attorney with Davis Miles McGuire Gardner, a comprehensive law firm in Tempe that serves an array of legal services in the personal and business spheres. Hunt graduated law school from U.C.L.A. after receiving a bachelor’s degree at A.S.U.

As a district manager of the Tempe Valley district, Ochoa manages more than a dozen Wells Fargo branches in the immediate area. She began her financial services career with Wells Fargo in 2003, first as a teller. Ochoa has been honored by the bank with multiple service awards.

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

Campus • Evening • Online

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

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U.S. Rep. Kyrsten Sinema to Receive U.S. Chamber’s Spirit of Enterprise Award in Tempe (with photo op and Q&A) U.S. Rep. Kyrsten Sinema, representing the Arizona ninth district in the House of Representatives, was honored with the Spirit of Enterprise Award from the U.S. Chamber of Commerce at a ceremony hosted by the Tempe Chamber of Commerce on August 31. “We are honored to be represented by a member of Congress who places a priority to continue positive economic growth and limited economic regulation,” said Tempe Chamber of Commerce President and CEO Anne Gill. “Congresswoman Sinema knows Tempe businesses and we are proud of her efforts to represent them in Congress.” The U.S. Chamber’s prestigious Spirit of Enterprise Award is given annually to members of Congress based on their votes on critical business legislation as outlined in the Chamber’s annual scorecard, How They Voted. Members who supported the Chamber’s position on at least 70 percent of those votes qualify to receive the award. “Businesses of all shapes and sizes need sound, commonsense policy in place in order to get off the ground, grow, and succeed,” said Thomas J. Donohue, president and CEO of the U.S. Chamber of Commerce. “The Spirit of Enterprise Award recognizes those members of Congress who have done what’s right for our friends, family and neighbors running businesses across the country. We applaud these legislators for their commitment to free enterprise and economic growth.” Representative Sinema joins U.S. Sen. John McCain and six other representatives from Arizona who are awarded this year’s Sprit of Enterprise Award. This is the fourth time the congresswoman has received the distinction during her tenure in Congress.

New Face at Tempe Chamber of Commerce

Sukki Jahnke Hired as Media and Program Development Director The Tempe Chamber of Commerce is excited to announce the hiring of Sukki Jahnke to serve as the Media and Program Development Director. Jahnke brings 16 years of experience in the meetings and events industry to the Chamber and plans to execute successful programs while meeting and exceeding the organization’s return on objectives though new strategic goals. Jahnke most recently comes from Microchip Technology’s Global Headquarters in Chandler, Ariz., where she managed the company’s trade

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

shows and customer events for North and South America. With her new role, Jahnke is realizing a career ambition to work in the nonprofit sector and create an impact that will benefit Tempe’s businesses and the surrounding community. In addition to her professional pursuits, Jahnke is heavily involved with professional organizations, including her second term as director of special events & fundraising for the Arizona Sunbelt chapter of Meeting Professionals International.

T E M P E C H A M B E R A D VA N TA G E

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ASU Sun Devils Kick off Football Season with Tempe Chamber Four hundred ASU fans and Tempe residents packed the Tempe Mission Palms Hotel for the 17th Annual ASU Sun Devil Kickoff Luncheon on Friday, August 18.

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Members of the football team, including head coach Todd Graham, spoke at the event, along with appearances by Sparky, the Dixie Devils marching band, and the ASU Spirit

Squad. The radio voice of the Sun Devils, Tim Healey, emceed the luncheon and interviewed Graham and ASU players.


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Desirae Noonan Awarded Tempe Chamber Volunteer of the Year Desirae Noonan has been named the Tempe Chamber Volunteer of the Year and was honored at the Chamber’s Annual Luncheon on June 29. Noonan, the branch manager of Express Employment Professionals in Tempe, was involved in another chamber of commerce in Illinois at another job before moving to Arizona. She had her office re-join the Tempe Chamber in October 2015, and soon became involved in Coffee Connection leads group and the Ambassador Committee, an outreach group of volunteers for the Chamber. Noonan appreciated the welcoming attitude of Chamber members and wanted to reflect that by becoming an active participant herself. “I have made more friends in the two years I have been a part of the Tempe Chamber than I did the four years I was in Illinois,” she said. “It is really hard as an adult to make friends in a new city and with a new job, but the Tempe businesses have made my transition easy. I enjoy the community environment and support that I receive as a Tempe Chamber member.” Within the Chamber, Noonan continues to be a member of the Ambassador Committee and regularly attends ribbon cuttings welcoming new businesses. She is also a member of the Women

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T E M P E C H A M B E R A D V A N TA G E

in Business Council and was a protégé graduate in their Mentoring Program this year. Natalie Cole, member coordinator for the Chamber and the facilitator of the Ambassador Committee, praised Noonan for her willingness and availability to support the Chamber and its mission. “Desirae Noonan is an ideal Ambassador and volunteer,” Cole said. “She has been one of our most involved and essential supporters of the Chamber, especially in this past year.”


Robin Arredondo-Savage Honored with Spirit of Tempe Award Robin Arredondo-Savage, Vice Mayor for the City of Tempe and a local small business owner, was honored by the Tempe Chamber of Commerce by receiving the Chamber’s annual Spirit of Tempe Award. The award recognizes a lifetime achievement of service, dedication and contribution to the community and honors hard work and a strong commitment to improving the quality of life in Tempe. Arredondo-Savage had done just about everything there is to do in the city. Before her appointment to the city council and the vice mayorship, she served on the Tempe Union High School District Governing Board. An A.S.U. graduate, she served in the U.S. Army and has led efforts for Tempe to become the first Veteran Supportive City in the state and developing Valor on 8th, the first female veterans’ housing project in Arizona. Arredondo-Savage was elected to the Tempe City Council in March 2010 and has been proactive in the city’s education and economic development policy. She’s led efforts to connect STEAM programs with youth, business and community through Geeks’ Night Out and has fostered connections between surrounding state and local universities and colleges. Arredondo-Savage also collaborated with her council colleagues to create an Equal Pay program for local businesses.

In the private sector, Arredondo-Savage also helps run Arredondo & Arredondo Insurance, a family-run business that is also celebrating its 25th year as Chamber members. “Robin is a remarkable person and personifies everything we love about Tempe,” said Anne Gill, president and CEO of the Chamber. “She is a shining example of our government, businesses and community engagement in Tempe and is truly deserving of this award.” Regarding the award, Arredondo-Savage said, “I’m honored to receive the Tempe Chamber Spirit of Tempe Award. I’m grateful for all of the individuals and organizations who’ve partnered to create positive outcomes for our Tempe community.”

DONATE. VOLUNTEER. CHANGE A LIFE. HELP A CHILD BUILD CONFIDENCE & REALIZE THEIR POTENTIAL

BBBSAZ.ORG (602) 264-9254

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

T E M P E C H A M B E R A D VA N TA G E

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Board of Directors Chairman of the Board: Brian Wood Chair-Elect: Dawn Hocking

Tempe Chamber Staff Anne Gill, President / CEO anne@tempechamber.org Chris Samuels, Communications Director chris@tempechamber.org Joanne Stockdale, Business Development Director joanne@tempechamber.org Mark Tarabori, Membership Relations Specialist marktarabori@tempechamber.org Julie Flanigan, Director of Finance julieflanagan@tempechamber.org Natalie Cole, Membership Coordinator nataliecole@tempechamber.org

Treasurer: Bill Goodman Vice-Chairs: Peter Adams, Paul Mittman, Glenn Williams Immediate Past Chair: Tim Ronan Directors: Peter Adams, Kjell Andreassen, David Bonkowski, Tracy Bullock, Jihan Cottrell Bill Goodman, Misty Howell, Jenna Rowell, Lynda Santoro, Robert Nyal Sewell, Manny Tarango, Brad Taylor, Glenn Williams Ex-Officios: AAndrew Ching, Angela Creedon, Joe Hughes, Stephanie Nowack, Lou Silverman Committee Chairs: Tracy Bullock, Patricia DiRoss, Gwen Gustafson, Cliff Jones, Paul Quinn, Tim Ronan, Lou Silverman, Mike Stinson Tempe Chamber of Commerce 1232 E. Broadway Rd., #211 Tempe, AZ 85282 (480) 967-7891 • www.tempechamber.org

Lety Rodarte, Administrative Assistant lety@tempechamber.org

connecting

REAL people with

www.readbetterbebetter.org facebook.com / readbetterbebetter

REAL

careers

twitter.com / readbetteraz

via

HIRING

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For more information about the program, or to find out how you can help, please contact Sophie Etchart, Founder & CEO of Read Better Be Better at sophiee@readbetterbebetter.org or (623) 229-7880.

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T E M P E C H A M B E R A D V A N TA G E

CareerConnectors.org 480.442.5806

CareerConnectors is a 501 (c)(3) non-profit organization


The 2nd Shoe Has Dropped! by Jack W. Lunsford, Arizona Small Business Association

About Us

On November 8, 2016, Arizona voters approved Proposition 206, The Fair Wages

The Mission of the Arizona Small Business Association is to foster and empower a thriving Arizona small business community by offering relevant, dynamic, and innovative resources and the highest level of advocacy as THE VOICE of small business in Arizona. ASBA fosters and empowers a thriving small business community by: • bringing relevant and dynamic education and mentoring opportunities • providing innovative and relevant tools business owners can utilize to grow and sustain their business • creating a variety of relevant and dynamic opportunities for members to meet potential clients • working diligently to advocate for legislation and regulation supporting a pro-business environment.

and Healthy Families Act. So, on January 1,

Take note: Ignorance of this law will be

• Employers shall not use qualifying EPSL

Join ASBA. Be amAZed®

no excuse, yet the rules promulgated by the

absences in disciplining employees for

Arizona Industrial Commission clarifying the

excessive absences.

In This Issue

2 4 5 6 7

Before You Budget,

2016, the minimum wage for non-tipped workers increased to $10/hour, and nearly all employers know that. However, effective July 1st, the 2nd shoe from Prop. 206 dropped. Every business with

• Retaliation against employees who

employees with Mandatory Earned Paid Sick

request or use EPSL is prohibited.

Leave (EPSL). Guess what? Most Arizona businesses don’t know that, and Arizona has 540,000 onerous and time consuming. The costs of

EPSL available to the employee,

non-compliance could put businesses at

EPSL taken by the employee to date,

Paid time the employee has received

significant financial risk. The penalties for non-compliance are costly, including legal costs fighting employee complaints.

law and providing guidance to businesses won’t even be approved until early January 2018. The good news: If businesses get into

assist all businesses to become compliant.

for Retirement Can Be Tricky, But

ASBA is presenting Prop. 206 workshops

It Doesn’t Have to Be

and soon will be offering them in Tucson and

Benefits of Having a

rural Arizona. ASBA will also be offering its

Networking Buddy

members email updates and website posts.

exposure, and ASBA is leading the way to

ASBA’s immediate advice is: 1) Adopt a personnel manual, and have the employees sign a receipt of acknowledgement. 2)

Why the 4th Quarter

Document, document, document! 3) Consider

Is Critical!

separating EPSL from your PTO benefit plan.

4600 E. Washington St., Suite 340 Phoenix, AZ 85034 p. 602.306.4000

Southern Arizona 3444 N. Country Club Rd. Suite 118 Tucson, AZ 85716 p. 520.327.0222 © 2017 ASBA. A publication of the Arizona Small Business Association. For more information or to join ASBA, please contact us at www.asba.com. Section designed by the Arizona Small Business Association.

complaint if EPSL is denied. • EPSL information must appear on paychecks:

Encouraging Employees to Save

Central Arizona

• Each employee has the right to file a

small businesses! The record keeping is

compliance quickly, they can reduce their loss

Midst of Stress

every 30 hours worked to the maximum.

one or more employees must now provide all

Evaluate Your Expectations

Finding Joy in the

• Employees accrue 1 hour sick time for

Meanwhile, ASBA has already learned that

and as EPSL.

• Employer is prohibited from retaliating against an employee for use of EPSL. • Employers are not required to pay out unused EPSL upon termination.

Employees may use EPSL for the following reasons: • Employee’s own physical or mental illness, injury or health conditions; • Care for employee’s family member for one of the above conditions; • A public health emergency; or • Absence due to domestic violence, sexual violence, or stalking of employee or of an employee’s family member.

Employee Requirements • Employees are required to make a

there are unique EPSL situations for almost

good faith effort to provide notice to an

every business, and our workshops attempt

employer, as described in the employee

to provide answers to as many as possible.

handbook, in advance of taking EPSL.

However, there are certain specific, uniform

• Employees may file a complaint to the

provisions in the law effective now.

Employer Requirements: • Employees are entitled to EPSL. • Part-time and temporary workers are considered “employees”.

Arizona Industrial Commission or directly to Superior Court. ASBA is here to bring businesses into compliance before they suffer financial losses. Contact us at asba.com or 602-306-4000.

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Before You Budget, Evaluate Your Expectations by Julie Fletcher, Enterprise Bank & Trust

When it comes to the fourth quarter, one hot item on

performing this year compared to the same time the year

an opportunity to reflect on how your 2017 financial goals

before and how your business is tracking to your original plan.

are tracking and what has changed. An honest assessment

These two indicators provide a pulse on your current situation.

helps you avoid creating an unrealistic budget. By assessing

To conduct your assessment, evaluate three financial

your current state in October, you give yourself enough time

indicators: budget progression, tax allocation and cash flow.

to make adjustments to your 2018 plans and forecasts, which

2

Your assessment should address how your business is

everyone’s mind is budgets. Planning for next year provides

The smart place to start with an evaluation is your overall

can make the difference between setting stretch goals and

cash position, which will help you understand where you are

ending up with “pie in the sky.”

with your budget from both income and expenses.


Ask your team questions on the expenses side: • Can any re-negotiating be done to find better deals with vendors? • Are you maximizing internal processes to minimize billing errors and write-offs? • Has the income side dropped off enough that there is a need to trim budgets? • Conversely, are income and projections robust enough to boost budgets in key areas potentially?

TAX Meet with your tax professional to ensure your tax situation is where you expected it to be. He or she will ensure you are paid up at that point in the year, as well as recommend adjustments to your payments and tax approach based on your revised projections.

CASH FLOW POSITION The other area to evaluate is your cash flow position. Evaluate your cash flow year-to-date, and project out the rest of the year. Identify any gaps, and be sure you understand when and why outflow is greater than inflow. To maximize cash flow, review slow-paying clients and push to get current with them. Ideally, you want to have five months of cash reserves on hand to cover expenditures in leaner months. It is a best practice for companies to have a “cash flow management” strategy in place. If you don’t currently have one implemented, the right time to start is now. We’ve all had moments in life where we’ve looked back and said, “I wish I had done things differently.” This is one fire you want to keep from ever starting. We also regularly hear from customers who begin to dig deep into reports on cash flow that there was an opportunity right in front of them all along — whether that was improving agreement terms with vendors, speeding up payment collections or more efficiently managing inventory. To drive home the importance of reporting, it’s valuable to bring in a standard management school of thought, “If you can’t measure it, it doesn’t exist.” The more data you have on-hand and analyses you can conduct, the faster and smarter your decisions will become. After conducting your assessment, make sure you put it to use as a

BUDGET PROGRESSION – Evaluate both Income and Expenses Key questions to consider regarding income: • Do revenue and sales projections need to be revised? Do you need to push your sales team to be more aggressive? • Determine what is driving cash flow. Is there a particular product that should become your focus? • Is there anything you can do to advance opportunities and close deals faster? • Does your marketing plan require any adjustments to target a growing market, or provide a boost to an underperforming market segment? • Has anything that factored into your projections changed enough that you should re-work your projections entirely?

guide for your budget. It’s your sanity check to make adjustments that will help you hit your budget and stretch goals. One final piece of advice: Stop and take a moment to be thankful for your clients, employees, vendor partners, and suppliers — maybe even tell them so! This is great for your bottom line, too. According to a Bain & Company study, a 5-percent increase in customer retention can lead to well more than a 25-percent growth in profitability. Now, that’s a stretch goal we can all get behind. Together, there’s no stopping you. We encourage you to visit enterprisebank.com/blog to learn more about topics covered in this article. Enterprise Bank & Trust offers learning opportunities, at no cost to you, on many of the subjects addressed in this report. For a schedule of classes, visit the Enterprise University website: enterprisebank.com/eu

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Encouraging Employees to Save for Retirement Can Be Tricky, But It Doesn’t Have to Be by Nationwide Mutual Insurance Company

Does your small business offer an employee retirement plan? If the

With this type of annuity, there are no fees or ongoing administration

answer is no, you’re not alone. Only 14 percent of small-business

responsibilities, and the simplicity of the online application makes it

owners with fewer than 100 employees offer a plan to help their staff

easy for employees who want to start saving for retirement today. The

save for retirement.1 Providing a retirement plan can be difficult for a

website also offers an interactive calculator that allows users to see

small business. It can be expensive, challenging to manage and often

how much income they’ll receive in retirement.

come with confusing compliance requirements that could place your business at risk.

We all face the uncertainty of market volatility. Guaranteed Retirement Income from Nationwide can help balance your employees’

At the same time, employees are looking for a simple, accessible

retirement savings because it’s not tied to the stock market. Regardless

and dependable way to save for retirement. A recent study finds

of what happens with other stock-based accounts they may own, they

working Americans, ages 30 to 50 years old, with a household

will never lose the money placed into this retirement account.

income between $50,000 to $200,000, feel stressed about saving for retirement.2 They’re frustrated, skeptical and confused by existing options, and they’re becoming more comfortable with buying and managing their financial services online. Where it comes to retirement planning, there’s a common divide between what a small business can provide and what its employees are seeking, but what can you do about it?

Start Today One-third of Americans have saved nothing for retirement.3 Sharing information about retirement planning options shows your employees you care about their lives outside of the workplace. Guaranteed Retirement Income from Nationwide means your employees can start locking in their retirement income now and makes it possible for them to receive guaranteed retirement income — for life.

Learn more

Bridging the Gap Guaranteed Retirement Income from Nationwide® is a new type of

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retirement account that can help your employees plan for long-term

Income from Nationwide® or have questions, please visit

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bit.ly/nationwide-retire-income

Those who enroll in the plan can choose to make contributions in any amount between $120 to $12,000 a year for 15 years or until they’re 65, whichever is longer. Then, when they retire, they’ll receive guaranteed income every month for the rest of their life.

1. “Retirement Security: Challenges and Prospects for Employees of Small Businesses.” gao.gov/products (Jul 16, 2013). 2. “1 in 3 Americans Has Saved $0 for Retirement.” GOBankingRates.com/press-releases (Mar 14, 2016). 3. “Business Owners’ Perspectives on Workplace Retirement Plans and State Proposals to Boost Savings.” The Pew Charitable Trusts (Sep 7, 2016).

[Disclosures] Guarantees are subject to the claims paying ability of Nationwide Life Insurance Company. Fixed annuities are contracts purchased from a life insurance company. They are

4

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Insurance Company and/or its affiliates, unless otherwise disclosed. © 2017 Nationwide AAM-0431AO (07/17)


Benefits of Having a Networking Buddy by Gelie Akhenblit, NetworkingPhoenix.com

It’s a proven fact that most people would

when you need a break and, most of all, keep

you to meet more quality people in a shorter

rather stay home than walk into a room full of

you accountable.

amount of time.

Benefits of attending events together:

Benefits of having your buddy “there”:

strangers under the guise of networking. OK, I don’t actually have any stats on this, but I think most of you will agree with me :) There are, of course, a few of us who feel like we’ve won the lottery every time we get to chat it up with a complete stranger, but let’s face it, most of us view networking as a forced activity, kind of like going to the gym — we know we need to do it, but who really wants to? But, just like having a gym buddy keeps you accountable, makes the whole process more enjoyable and, in general, yields you better results, a networking buddy can do all

You don’t have to show up alone — and chances are much better that you’ll actually show up. By committing to an event together,

I, personally, find it’s much easier when

you’re both keeping each other accountable.

I can go hang out with my buddy for a few

As mentioned above, a good number of people want to go but have too much anxiety about attending alone. If you know you don’t have to go alone, that’s half the battle.

Benefits of working the room together: You’re both looking out for one another and are able to introduce more people to each

that and more. What, exactly, is a networking buddy? A networking buddy will attend events with

Sometimes, you just need a short break during an event.

other. Depending on how you plan your strategy,

you, work the room with you, introduce you

you can either network together or divide and

to the right people, act as a “home base” for

conquer. Both options are great and will allow

minutes to recharge and regroup. A quick touch base gets us both on the same page — we share notes and then are ready to keep networking. In a nutshell, you are much more likely to show up to events and meet quality people if you’re doing it with a friend. Not to mention, you’ll have a lot more fun. Networking should be an enjoyable and very beneficial part of your life. It takes practice, and having a buddy to help guide you through it will allow you to achieve maximum success.

Master Your Social Position!

Social Media that gets noticed, backed by the credibility of In Business Magazine… Marketing Automation | Social Media | Digital Products www.inbusinessmag.com 480.588.9505

5


Finding Joy in the Midst of Stress

Simple strategies to regain perspective and passion by Kim England, Fast Inc. Network

BOARD OF DIRECTORS

No matter what place in your career you find

Jason Trujillo | Chair Woodbury Financial

yourself, it is likely there has been a time when you just did not feel as passionate about what you are doing as you would like to. We hear about

Mike Leeds | Vice-Chair Pro Sales Coaching, LLC

“burnout” so much that we almost expect to get to a point where we are no longer happy with our jobs. At the risk of sounding like I have rose-

David Bones | Treasurer The Kenrich Group Phoenix

colored glasses permanently glued to my head, I have a few suggestions for fellow entrepreneurs.

Jack Lunsford | Ex-Officio Arizona Small Business Association

How do we change the narrative? How do we keep our passion for our jobs? How do we find joy in the midst of our stresses before we reach that

Lisa Hunt AETNA

place of burnout? Here are a few strategies for finding joy in the midst of job-created stress. Change your seat, change your luck. Have

Jennie King Salt River Project

you ever watched college football, or any sport for that matter, with a die-hard fan? These mega sports fans tend to be highly superstitious when

a necessity because that is just our reality, but

it comes to things like game day attire, food, and

working should not be all we do with our 24 hours

even the seat in which they sit. I happen to know

a day. As the face of your brand, you do not want

a person who will have individuals in the room

to present an overworked, tired face to the public.

change places with one another after a losing

Because of this, taking the time to clear your head

quarter. She says, “Let’s change our seats to

and relax should not feel like a luxury; it is truly a

change our luck!” Now you don’t have to be a

necessity.

superstitious person to understand the concept I am getting at. Sometimes all we need is a fresh

throughout your teenage and college years to

perspective; that could be as simple as working

evaluate the friends you surround yourself with

in a new environment. Do you feel a sense of

because we take on the characteristics of the

dread the second you enter your workspace?

people we spend the most time with. Do you ever

Take that as a sign to switch it up and work from

catch yourself repeating a phrase that you often

your favorite local coffee shop. Change your seat,

hear a co-worker say? Would you describe those

change your luck.

you work with as positive people? We don’t always

Take five. When you work for yourself and are

have a say in who we work with, but you can make

the only person solely responsible for your income,

a conscious effort to not take on the negative

you can feel pressure to be working constantly.

characteristics of the people around you.

As entrepreneurs, we are marketing ourselves

6

Check your circle. You were probably warned

If you see the need to find your joy in the midst

to people around the clock rather than the 9 to 5

of job-created stress, we have the perfect solution

most are accustomed to. Because of this feeling,

for you. You can change your perspective, take

we can eventually reach a point where we do not

a much-needed break, and add value to your

know when to shut off our phones and our brains

circle of colleagues by contacting us today! Call

to simply live life. Making money will always be

(877) 202-3996.

Jim Mapstead Accurate Signs & Engraving

Daniel Schenk Clark Hill PLC

Otto Shill Jennings, Strouss & Salmon PLC

Kerry Stratford The Caliber Group

Janice Washington Arizona Small Business Development Center Network

Valerie Wynia Arizona Public Service


Why the 4th Quarter Is Critical! by Mike Leeds, Pro Sales Coaching, LLC

The sales year has four quarters in it — and the 4th Quarter is the most important of the year. “Q4” is the quarter that has a double impact to your performance. First, consider that sports coaches always teach their players to compete until the end of a play, a game or a season. Many sporting events are not won until the last minute or play of the game. Yogi Berra’s famous quote, “It’s not over till it’s over” applies not only to sports but sales as well. From a sales perspective, give your maximum effort until the last day of the year. Let your competitors coast through the holiday season. This is the quarter that sales performers will usually dramatically impact their annual performance and commission for a strong finish. I have also found that it is a great time to get in front of decision-makers, and some of your customers may even have budget money available that expires at the end of the year. Even if you find yourself behind your quota going into Q4, stay focused on a strong finish. Second, it is also a critical time to lay the groundwork for a successful start to the next year. Our performance in the first quarter of

pipeline (or funnel) of projects now. Coasting now may seriously impact your sales performance into the New Year. So, compete to the end of the year, or, as they say in football, “until

2018 will be traced to our activities in this final quarter of 2017. Many

the whistle blows.” This will not only help you in 2017, but also help you

of us have longer sales cycles, so let’s get a start on building a strong

set the tone for a successful 2018.

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75x4.875

Put your business on the road to sweet success

4C

Apply for a Wells Fargo Equipment Express® loan today Growing your business is how you’ll achieve the dreams you have for yourself and your family. Wells Fargo is here to help. Our Equipment Express loan is a flexible way to purchase the new or used vehicles or equipment you need to move your business forward. Stop by or call and speak to your banker today. Finance cars, trucks, trailers, commercial vehicles, or other business equipment

© 2014 Wells Fargo Bank, N.A. All rights reserved. Member FDIC. (1211586_13013)

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Brand Day: Small Business Marketing Summit 2017

ASBA STAFF LIST & TITLES Jack W. Lunsford President & CEO Debbie Hann, Chief Operating Officer Angelia Hill VP, Marketing & Business Solutions Robin Duncan Sr. Director, Business Development Ryan Reyes Director, Strategic Partnerships & Initiatives Jeanne Quinn Lowing Business Relationship Manager Ashley Vizzerra Member Services Manager Genesis Garcia Administrative & Design Coordinator

THRIVE!

ASBA LOCATIONS: Central Arizona Office 4600 E. Washington Street, Suite 340 Phoenix, AZ 85034 p. 602.306.4000

OCT. 12, 2017 602.306.4000

AZSMALLBIZCON.COM 8

Southern Arizona Office 3444 N. Country Club Rd. Suite 118 Tucson, AZ 85716 p. 520.327.0222


HEALTHCARE DECISIONS Open Enrollment & Healthcare Guide for Business

Informing Our Business Community on Healthcare Options


Enrolling all generations. Open Enrollment Everyone deserves clinical expertise with humankindness. With your choice of doctors and specialists, you’ll be surrounded by people who truly care about you and your family’s health. So this year during Open Enrollment, choose a plan that includes Dignity Health’s physicians and hospitals. Enroll in humankindness at dignityhealth.org/my-home/affordable-care-act.


HEALTHCARE DECISIONS

People Power Political cynics, take heart. Recent events demonstrate all this is possible when regular people get organized and take action. I’m talking about the federal healthcare debate. Those of us who care about maintaining access to affordable, quality care (that would be most Americans, actually) successfully fended off not one … not two … but three reckless “repeal-and-replace” attempts. Independent analyses estimate each would have left millions without health coverage and led to an historic shift of financial risk and responsibility from the federal government to individual states like ours. In the wake of these bruising fights, it’s easy to forget rollback of the Affordable Care Act seemed inevitable in January when Republicans took control of the White House and Congress. Newly-elected President Trump had even talked of striking down “Obamacare” on his first day in office. Not so fast. Of course, credit is owed to Arizona Senator John McCain — who joined with a few of his GOP colleagues and every Democrat Senator to defeat the legislation. But that unified opposition is unlikely to have materialized without a groundswell of community action. Regular people took time from their busy schedules to write letters. Phone their Senators and members of Congress. And generally ring the alarm about legislative efforts with life-and-death consequences. I’m proud the Arizona Hospital and Healthcare Association helped lead the opposition effort, and we were joined by a unified coalition of healthcare, business and community groups across our state. Doctors and nurses. Hospitals and healthcare providers. Insurance plans and socialservice advocates. Now, this doesn’t mean our work is done. Obamacare has real problems that need fixing — especially in the areas of choice and cost. Hopefully, the same energy that went into defeating repeal measures can now be directed to support thoughtful reforms that benefit both patients and providers. It is a safe bet healthcare will remain a key policy issue in Washington and here at home. On that note, open enrollment time will soon be upon us. In this issue, you will find an Open Enrollment & Healthcare Guide for Business, which is a great way to learn about the various insurance plans available for you and your employees. On behalf of the Arizona Hospital and Healthcare Association, we thank In Business Magazine for providing this valuable service to business owners and executives.

Greg Vigdor has served as the president and CEO of the Arizona Hospital and Healthcare Association (AzHHA) since March 2013. Over his morethan-35-year career, he has been nationally recognized for advancing health through policy leadership. Evidence of his work in Arizona includes the passage of Medicaid Restoration, and being laser focused on quality care improvement efforts and activities supporting AzHHA’s vision of making Arizona the Healthiest State in the Nation.

Sincerely,

Greg Vigdor President and CEO Arizona Hospital and Healthcare Association

HEALTHCARE DECISIONS Open Enrollment &

Healthcare Guide for

Business

In Business Magazine’s Healthcare Decisions: Open Enrollment & Healthcare Guide for Business is a special section meant to remind company owners as to the options that are available in the upcoming individual

Informing Our Business Community on Healthcare Options

marketplace open enrollment window — November 1, 2017, to December 15, 2017. Open enrollment timing can happen throughout the year for company policies, but with the national window open during this time, we feel it is important to highlight various opportunities and list those groups offering plans and/or services. Using healthcare as a tool to build productivity through a healthy workforce is an advantage to business regardless of regulation and/or mandates, and it is becoming ever clearer that healthcare will be a focus for business owners and not simply an outsourced option as it has been in the past.

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HEALTHCARE DECISIONS Associations & Government Many associations and government healthcare services give specific information on policies, open enrollment dates and services provided that may help employers understand the many options. Below is a list of local organizations.

Arizona Dental Association 3193 N. Drinkwater Blvd., Scottsdale (480) 344-5777 azda.org Arizona Foundation for Medical Care 2700 N. Central Ave., Suite 810, Phoenix (602) 252-4042 azfmc.com Arizona Health Care Association 1440 E. Missouri Ave., Suite C-102, Phoenix (602) 265-5331 azhca.org Arizona Health Care Cost Containment System (AHCCCS) 801 E. Jefferson St., Phoenix (602) 417-7000 azahcccs.gov

Arizona Hospital and Healthcare Association 2800 N. Central Ave., Suite 1450, Phoenix (602) 445-4300 azhha.org Arizona Medical Association 810 W. Bethany Home Rd., Phoenix (602) 246-8901 azmed.org Arizona Pharmacy Association 1845 E. Southern Ave., Tempe (480) 838-3385 azpharmacy.org Maricopa County Medical Society 326 E. Coronado Rd., Suite 101, Phoenix (602) 252-2015 mcmsonline.com

Employee Benefits Consultants (many offer insurance) Using a consultant to work though options and the many plans can alleviate much of the confusion surrounding healthcare these days. We have included a list of brokers and firms that are reputable and have a tremendous amount of experience working with businesses to provide plans and ensure compliance.

Arizona Benefit Consultants, LLC 6245 N. 24th Pkwy., Suite 201, Phoenix (602) 956-5515 abcllc.org

FBC Services, Inc. 14201 N. 87th St., Scottsdale (602) 277-8477 fbcserv.com

Benefits By Design 8631 S. Priest Dr., Tempe (480) 831-7700 benefitsbydesignaz.com

Focus Benefits Group 4120 N. 20th St., Suite B, Phoenix (602) 381-9900 focusbenefits.com

Breslau Insurance & Benefits Paul Breslau 8362 E. Via de Risa, Scottsdale (602) 692-6832 breslauinsurance.com

Health Insurance Express, Inc. Superstition Marketplace 1155 S. Power Rd., Suite B-101, Mesa (480) 654-1200 healthinsurance-express.com

Connect Benefits 1818 E. Southern Ave., Mesa (480) 985-2555 connect-benefits.com

Horizon Benefits Group 6245 N. 24th Pkwy., Suite 216, Phoenix (602) 957-3755 horizonbenefits.com

Dental Insurance Getting the right coverage means truly investigating the best plans and supplemental plans. Here is a list of area companies offering dental insurance that have a great reputation and plan options for individuals and groups.

American Dental Plan P.O. Box 44227, Phoenix, AZ 85064 (602) 265-6677 arizdental.com Benefits By Design 8631 S. Priest Dr., Tempe (480) 831-7700 benefitsbydesignaz.com Breslau Insurance & Benefits Paul Breslau 8362 E. Via de Risa, Scottsdale (602) 692-6832 breslauinsurance.com Delta Dental of Arizona 5656 W. Talavi Blvd., Glendale (602) 938-3131 deltadentalaz.com JDH Insurance Brokerage Services Heather Wunderle 20403 N. Lake Pleasant Rd., Suite 117234, Peoria (623) 594-0926 jdhinsurance.com Matsock & Associates 2400 E. Arizona Biltmore Circle, Suite 1100, Phoenix (602) 955-0200 matsock.com Powers-Leavitt Insurance P.O. BOX 125, Buckeye, AZ 85326 (480) 348-1100 powers-leavitt.com

Employee Benefits Exchange 2739 S. Val Vista Dr., Suite 132, Gilbert (480) 839-6100 ebxaz.com

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HEALTHCARE DECISIONS

Moving Health Forward Together At Blue Cross Blue Shield of Arizona (BCBSAZ) we’ve learned a powerful lesson over the years — the best way to predict the future is to create it. And we’ve been busy doing just that — creating the future by moving health forward. With 75 plus years of serving Arizona businesses and the nationwide reach of the Blue plans, we are putting our extensive insights, long-standing provider relationships and proven clinical results to work for businesses like yours: • Insights — through insights, we anticipate your employees’ health needs so they have a better health journey. • Relationships — through our relationships, we are making healthcare services more effective and challenging the status quo in the way healthcare is delivered. • Results — through a focus on results, we are taking actions that lead to improved quality of life and lower healthcare costs. With a multigenerational workforce, pressure on medical costs, growth of new treatments and concerns about societal health, BCBSAZ is accelerating change so that we have better healthcare starting now. Focus on What Matters to You We know that healthy employees lead to a more competitive benefit program for your company. That’s why we focus on helping your employees stay well and providing additional care to those who need it.

As the largest local insurance company in Arizona, we deliver health insurance products, related services and networks to more than 1.5 million customers.1 In a recent satisfaction study, 92% of those surveyed reported they were satisfied with our products and services.2 We offer: • Medical Plans — PPO or HMO plans with a wide range of deductibles, including high deductible health plans that work with a health savings account (HSA). • Dental Plans — Standard plans include 100% in-network coverage for diagnostic and preventive services. • Additional Products and Services — Life, short-term disability, long-term disability, critical illness, accident, cancer, COBRA services and a vision-savings program through Vision Care.3 A Partner You Trust Companies like yours need a partner leading the way, innovating, and creating that future, not simply reacting to it. BCBSAZ is that partner. We’re helping to create a future where people get healthier faster and stay healthier longer. That is a future we can all look forward to. Better Healthcare Consumers 73% of consumers agree they could make better health decisions if they knew the cost of medical care before receiving

it.4 BCBSAZ has tools for members to help them manage their healthcare like never before. Our treatment timeline and cost estimator provides detailed information that your employees can use to make informed healthcare decisions. 1. Some plans are not offered or underwritten by Blue Cross Blue Shield of Arizona. 2. The Customer Study and Group Benefits Administrator Study were conducted in 2015 by Thoroughbred Research, an independent research company. 3. Vision Care is not insurance, it is an independent company that provides discount eye services and products. 4. 2014 NerdWallet Health Study.

BCBSAZ is an Arizona nonprofit corporation and independent licensee of the Blue Cross and Blue Shield Association.

AT-A-GLANCE Company Name:

Blue Cross Blue Shield of Arizona

Local Phone:

(602) 864-5792

Toll-Free

(800) 232-2345 ext. 5792

Website:

azblue.com/ employersandorganizations

Established Locally:

1939

ADVERTISING PROFILE

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HEALTHCARE DECISIONS Individual & Group Health Insurance Knowing what plan is right for your employees and understanding who is managing that plan can make all the difference for your company. We have included below a list of reputable and experienced insurance companies, many of which you will be familiar with, that can guide your organization to the perfect group or individual plans.

Aetna 4025 E. Cotton Center Blvd., Phoenix (800) 225-3375 aetna.com American Family Insurance Multiple agents Valley-wide (877) 777-4804 amfam.com Benefits By Design 8631 S. Priest Dr., Tempe (480) 831-7700 benefitsbydesignaz.com Blue Cross Blue Shield of Arizona (No individual plans in Maricopa County) P.O. Box 2924, Phoenix, AZ 85062-2924 (602) 864-4899 azblue.com Bowman & Associates 16042 N. 32nd St., Bldg. A, Phoenix (602) 482-3300 bowmaninsurance.com

Breslau Insurance & Benefits Paul Breslau 8362 E. Via de Risa, Scottsdale (602) 692-6832 breslauinsurance.com Cigna Multiple locations Valley-wide cigna.com Farmers Insurance Group Kara Anspach 7077 E. Marilyn Rd., Suite 125, Scottsdale (480) 998-8070 farmersagent.com/kanspach HealthNet 1230 W. Washington St., Suite 401, Tempe (602) 286-9194 healtĂšet.com Humana Health Insurance of Phoenix 2231 E. Camelback Rd., Suite 400, Phoenix (480) 515-6400 humana.com

Hospitals Many of the healthcare providers listed below are part of specific networks or have created their own network to lower costs for businesses and individuals with the intent to provide all needed services for the patient.

JDH Insurance Brokerage Services Heather Wunderle 20403 N. Lake Pleasant Rd., Suite 117-234, Peoria (623) 594-0926 jdhinsurance.com Powers-Leavitt Insurance Agency Charlene Powers P.O. BOX 125, Buckeye, AZ 85326 (480) 348-1100 powers-leavitt.com Reseco Insurance Advisors Todd Newton 7901 N. 16th St., Suite 100, Phoenix (602) 753-4250 resecoadvisors.com State Farm Arizona Multiple agents Valley-wide (877) 331-8261 statefarm.com UnitedHealthcare 1 E. Washington St., Suite 1700, Phoenix (800) 985-2356 uhc.com

Banner Desert Medical Center 1400 S. Dobson Rd., Mesa (480) 412-3000 bannerhealth.com/desert

Abrazo Arizona Heart Hospital 1930 E. Thomas Rd., Phoenix (602) 532-1000 abrazohealth.com

Abrazo Scottsdale Campus 3929 E. Bell Rd., Phoenix (602) 923-5000 paradisevalleyhospital.com

Banner Estrella Medical Center 9201 W. Thomas Rd., Phoenix (623) 327-4000 bannerhealth.com

Abrazo Arrowhead Campus 18701 N. 67th Ave., Glendale (623) 561-1000 abrazohealth.com

Banner Baywood Medical Center 6644 E. Baywood Ave., Mesa (480) 321-2000 bannerhealth.com/baywood

Banner Gateway Medical Center 1900 N. Higley Rd., Gilbert (480) 543-2000 bannerhealth.com

Abrazo Central Campus 2000 W. Bethany Home Rd., Phoenix (602) 249-0212 phoenixbaptisthospital.com

Banner Boswell Medical Center 10401 W. Thunderbird Blvd., Sun City (623) 832-4000 bannerhealth.com/boswell

Banner Heart Hospital 6750 E. Baywood Ave., Mesa (480) 854-5000 bannerhealth.com

Abrazo Maryvale Campus 5102 W. Campbell Ave., Phoenix (623) 848-5000 maryvalehospital.com

Banner Del E. Webb Medical Center 14502 W. Meeker Blvd., Sun City West (623) 524-4000 bannerhealth.com

Banner Ironwood Medical Center 37000 N. Gantzel Rd., San Tan Valley (480) 394-4000 bannerhealth.com/ironwood

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HEALTHCARE DECISIONS

Breslau Insurance & Benefits Due to the Affordable Care Act, the majority of employer-based health insurance renewals will be worked on in the 4th Quarter for a December or January effective date. In addition to the Banner/Aetna initiative, there are several pioneering Arizona alternatives that should be considered with your health agent. One of these is the EMI Industry Specific Pools coordinated by Arizona Benefit Plans. Another is using EverydayCare options form Redirect Health that pair with level funding or indemnity coverage. UnitedHealthcare and Arizona Care Network have announced new 2018 options to improve benefits and provider access. Blue Cross is also rolling out new and improved options. Finally, Level-Funded group health is available from most health insurance companies and is now available down to two employees from National General Insurance. The complexities of businesses dealing with health insurance, employee benefits, payroll,

workers compensation, 401(k) plans, and human resources increase each year. Paul Breslau is now using his 25 years’ experience in the Arizona health insurance and benefits arena, to match the best agents and providers to business and their Human Resources staff. Prior to starting his own agency, he worked at Aetna, Samaritan Health Plan and UnitedHealthcare in various roles. He is well-qualified to help businesses assemble a first-class team for their December or January health insurance renewal as well as a review of 401(k) plans, workers compensation, payroll, etc. The hard-dollar savings combined with improved benefits and service will surprise you. Paul Breslau is president of Breslau Insurance & Benefits Inc. His certifications are Registered Health Underwriter (RHU), Registered Employee Benefit Consultant (REBC), Chartered Life Underwriter (CLU), Chartered Financial Consultant (ChFC) and Chartered Advisor for Senior Living (CASL).

“An October start is essential to review health insurance and employee benefits and implement smoothly for a December or January effective date. Please contact me as soon as possible to start discussions with leading experts on our team.”

AT-A-GLANCE Company Name:

Breslau Insurance & Benefits, Inc.

Office Address:

8362 E. Via De Risa Scottsdale, AZ 85258

Phone: Website: Established Locally: Top Plans:

(602) 692-6832 breslauInsurance.com 2000 UHC, BlueCross, Aetna, Principal, Redirect Health

ADVERTISING PROFILE

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HEALTHCARE DECISIONS

Expert Employee Benefit Consultants Offering Uncommon Strategies With Cambridge Benefit Solutions (CBS), you can optimize your employee benefit program 365 days a year — not just once a year at renewal! Cambridge Benefit Solutions develops comprehensive employee benefit strategies that allow employers to better sustain the rising costs of health insurance. ENHANCED TRADITIONAL MEDICAL PLANS By combining different types of plans, tailored networks, consumer directed health plans and contribution strategies, CBS can design a customized benefit program that saves employer and employee costs. UNCOMMON MEDICAL PLAN STRATEGIES Industry specific health plan purchasing groups allow small and mid-sized employers to band together to purchase group health plans at rates similar to large corporations. Self-funded and level-funded plans offer employers plan transparency and the potential of premium surplus credits.

WELLNESS PROGRAMS Corporate wellness programs have many benefits. Did you know they can have a significant financial impact? By implementing corporate wellness programs and encouraging employee engagement, employers can significantly reduce health insurance costs. Depending on the carrier and group participation, larger employers can save 6–8 percent on annual renewal rate increases while smaller employers can offer employees 7–15 percent premium discounts. Work with an employee benefit consultant who has your company’s best interests in mind. The team at Cambridge Benefit Solutions offers many strategies and programs designed to help companies reduce the increasing costs of annual health plan renewals.

“Work with an employee benefit consultant who has your company’s best interests in mind. The team at Cambridge Benefit Solutions offers many strategies and programs designed to help companies reduce the increasing costs of annual health plan renewals.” AT-A-GLANCE Company Name: Office Address:

Cambridge Benefit Solutions 2450 S. Gilbert Rd. Suite 109 Chandler, AZ 85286

HEALTH ADVOCACY PROGRAMS Contract with a team of health professionals to help employees understand their benefits, save money on healthcare and prescriptions, resolve billing errors and schedule appointments. Employers can see claims savings and increased negotiating power.

Phone: Website: Top Plans:

(480) 883-3309 cbsarizona.com Enhanced T raditional Plans, Uncommon Medical Plan Strategies, Health Advocacy Programs, Wellness Programs

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Welcome John Bolce to our Arizona Team 30-Year Industry Professional

LP Insurance Board Member/Vice President and Cardinals fan!

Property & Casualty Risk Management Employee Benefits Workers’ Compensation Healthcare Professional

“Healthy Employees Are Productive Employees” Reduce your Company’s overall Healthcare Cost… • Wellness & Preventative care On-Site • Dramatically reduce healthcare claims Our Nurse Practitioners & Staff

• Your company’s healthcare advocate

On-Site Healthcare at Work • 602-424-2101 • www.hcsonsite.com


HEALTHCARE DECISIONS Workplace Bundled Health Programs

Hospitals (con’t.) Banner MD Anderson Cancer Center 2946 E. Banner Gateway Dr., Gilbert (480) 256-6444 bannerhealth.com

Honor Health Deer Valley Hospital 19829 N. 27th Ave., Phoenix (623) 879-6100 jcl.com

Banner Thunderbird Medical Center 5555 W. Thunderbird Rd., Glendale (602) 865-5555 bannerhealth.com

Honor Health JoÚ C. Lincoln Medical Center 250 E. Dunlap Avenue, Phoenix (602) 943-2381 jcl.com

Banner University Medical Center Campus Medical Center 1111 E. McDowell Rd., Phoenix (602) 839-2000 bannerhealth.com Cancer Treatment Centers of America at Western Regional Medical Center 14200 Celebrate Life Way, Goodyear (623) 207-3000 cancercenter.com Cardon Children’s Medical Center 1400 S. Dobson Rd., Mesa (480) 412-5437 bannerhealth.com Dignity Health Chandler Regional Medical Center 1955 W. Frye Rd., Chandler (480) 728-3000 chandlerregional.org Dignity Health Mercy Gilbert Medical Center 3555 S. Val Vista Dr., Gilbert (480) 728-8000 mercygilbert.org Dignity Health St. Joseph’s Hospital & Medical Center 350 W. Thomas Rd., Phoenix (602) 406-3000 stjosephs-phx.org Gilbert Hospital 5656 S. Power Rd., Gilbert (480) 984-2000 gilberter.com

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Honor Health Osborn Medical Center 7400 E. Osborn Rd., Scottsdale (480) 882-4000 shc.org Honor Health Shea Medical Center Shea Medical Center 9003 E. Shea Blvd., Scottsdale (480) 323-3000 shc.org Maricopa Medical Center 2601 E. Roosevelt St., Phoenix (602) 344-5011 mihs.org

In focusing on creating the perfect plan for your company, these local providers offer direct benefits that your organization may rely on to ensure a strong healthcare program and policies for your employees.

Arrowhead Health Centers Multiple locations (623) 334-4000 arrowheadhealth.com Surgical Specialty Hospital 6501 N. 19th Ave., Phoenix (602) 795-6020 thesurgicalhospital.com

Workplace Wellness There are many companies working to orchestrate alternative healthcare plans and consulting to customize healthcare benefits programs and policies for companies. These organizations below offer consulting, program development and direct care programs for businesses of all sizes.

Mayo Clinic Hospital 5777 E. Mayo Blvd., Phoenix (480) 515-6296 mayoclinic.org

Absolute Health (Accepts individual only) 8360 E. Raintree Dr., Suite 135, Scottsdale (480) 991-9945 absolutehealthaz.com

Mountain Vista Medical Center 1301 S. Crismon Rd., Mesa (480) 358-6100 mvmedicalcenter.com

Healthcare Solutions Centers 4831 N. 11th St., Phoenix (602) 424-2101 hcsonsite.com

Phoenix Children’s Hospital 1919 E. Thomas Rd., Phoenix (602) 933-1000 phoenixchildrens.org

LifeCore Group P.O. Box 10264, Glendale, AZ 85318 (602) 235-2800 myhealthdividends.com

St. Luke’s Medical Center 1800 E. Van Buren St., Phoenix (602) 251-8100 stlukesmedcenter.com

Orchard Medical Consulting Robin Orchard (602) 942-4700 orchardmed.com Redirect Health 13430 N. Scottsdale Rd., Suite 200, Scottsdale (623) 521-9406 redirecthealth.com

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Gabor, Deb, 66

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Mercurio, Zach, 29

1100 KFNX, 19

Delta Dental, 7

Lovitt & TouchĂŠ, 25

Pro Sales Coaching, L.L.C., 51

Activate Human Capital, 36

Desert Schools Federal Credit Union, 19

LP Insurance Services, 61

Radix Law, 10

Mayo Clinic, 17

Read Better Be Better, 44

Mesa Chamber of Commerce, 32, 33

Redirect Health, 26

Miller Ingenuity, 30

Robert Half Technology, 12

MultiTable, 11

Silagi Development, 14

National Bank of Arizona, 5

Statesman Group, The, 13

Evening Entertainment Group, 14

Nationwide Mutual Insurance Company, 48

Stearns Bank, 6

Farm at South Mountain, The, 35

NetworkingPhoenix.com, 49

Arizona Small Business Association, 31, 45

Fast Inc. Network, 50

Noom Inc., 26

Fennemore Craig, P.C., 20

Avnet, 16 Bank of Arizona, 61

Flip Side Communications L.L.C., The, 28

North Phoenix Chamber of Commerce, 32, 33

Bank of the West, 8

FSW Funding, 36

Big Brothers Big Sisters of Arizona, 43

Genotox Laboratories, 18

Blue Cross Blue Shield of Arizona, 24, 57, 68

Glendale Chamber of Commerce, 33

Akos MD, 24 Alliance Bank of Arizona, 3 Arizona Association for Economic Development, 32, 33 Arizona Department of Transportation, 34 Arizona Diamondbacks, 67 Arizona Hospital and Healthcare Association, 55

Blue Door Therapeutics, 18 BMO Harris Bank, 15 Breslau Insurance & Benefits, Inc., 59

Digital Air Strike, 10 Dignity Health, 54 Dragon Innovation, 16 Enterprise Bank & Trust, 46 Equality Health, 9, 64

OneAZ Credit Union, 38

Tempe Chamber of Commerce, 37 UnitedHealthcare, 27, 63 Wells Fargo, 38, 51 WESTMARC, 31 Wallbeds "n" More, 21 Zinc Bistro, 35

Gilbert Chamber of Commerce, 32, 33

CHECK US OUT

Global Chamber, 32 Grand Canyon University, 38 Greater Phoenix Economic Council, 32 Healthcare Solutions Centers, 61

Cambridge Benefit Solutions, 60

House of Tricks, 35

CAR, 34

IKEA, 14

Career Connectors, 44

J.D. Power, 11

CBIZ, 10

JIVE, 6

CBRE, 14

JLL, 2

Chelsea’s Kitchen, 35

Kickstarter, 16

Davis Miles McGuire Gardner, P.L.L.C., 38

LGE Design Build, 14 Local First Arizona, 33

In each issue of In Business Magazine, we list both companies and indivuduals for quick reference. See the stories for links to more.

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Bold listings are advertisers supporting this issue of In Business Magazine.

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A CANDID FORUM

BY

Leadership Power in Listening How a case of laryngitis helped me find my voice and grow as a leader by Deb Gabor

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Innovation and Buy-In

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Deb Gabor is the author of Branding is Sex: Get Your Customers Laid and Sell the Hell Out of Anything. She is the founder of Sol Marketing, which has led brand strategy engagements for organizations that range from international household names like Dell, Microsoft and NBC Universal to digital winners like Allrecipes, Cheezburger, HomeAway and RetailMeNot, and dozens of early-stage tech and digital media titans. solmarketing.com

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IN BUSINESS

2017 Healthc are

As a brand strategist, author and public speaker, I rely upon my voice and storytelling ability to make a living. I’ve observed that my interpersonal communication style is less 1:1 and more “broadcast” in nature. I get in a room full of people, position myself directly in the center, and hold court. At a leadership conference featuring 10-hour days of training and intense strategy sessions for 1,500 member leaders and staffers of a global organization of chief executives of private companies, I lost my voice … and, at the same time, found it. Along the way, I learned how developing deep emotional connections with individuals and practicing the art of followership can contribute to my growth as a leader. About two days into the conference, I conceded defeat to a case of laryngitis that rendered me mute. Unable to speak above a whisper, I carried around a handwritten sign detailing my name, my role and my hometown. Without my voice, I could no longer rely upon my trademark extrovert friendliness and ability to get a conversation going among strangers. I couldn’t raise my hand to ask questions that make me look smart to the rest of the room. I couldn’t make insightful observations that position me as an expert in my field. Instead of the center of attention, I was an audience member, skirting the fringes of conversational groups. Instead of a speaker, I was a listener. Instead of a leader, I was a follower. During my unintentional silent retreat, I came face to face — or rather, mouth to ear — with fascinating people with whom I may have never had a conversation. I whispered in people’s ears, drawing them into my personal space so I could get my points across. Even though I could hear them fine, my new acquaintances reciprocated by leaning in and whispering in my ear, instantly forming intimate bonds. There’s something about feeling a stranger’s breath on your face that makes you dispense with traditional pleasantries and small talk. Through these deep, one-on-one conversations, I learned about other CEOs’ joys, fears and vulnerabilities. I listened closely to their observations about the frenzied conference activity going on around us. We talked about global politics, employees, taxes, our kids, relationships. We formed bonds that normally take businesspeople years to nurture. I listened; I learned and I was inspired.

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For about four days I practiced a type of leadership I’ll call “followership.” The business world has validated my compulsion to speak up and assume responsibility for the strategies and tasks that I ignorantly thought everyone else was incapable of. As a result of my unrelenting desire to assert my authority over everything, I missed the fact that there are others who are capable and desirous of owning and doing things. Most of them are smarter and better than I. In my life as an extrovert with a loud, confident voice and a healthy ego, I did most of the talking — closing off conversational threads and ideas coming from others. I learned that much of my leadership style is based upon being a hero and feeding my own ego. And that has been at the expense of some really worthwhile relationships and ideas. I had two big “aha” insights from my voice loss: My assumption that the state of leadership is a lonely existence is largely incorrect. It really doesn’t have to be. Any loneliness I have felt as a leader has been self-inflicted. The “holding court” style of communication has blocked me from developing vital and meaningful relationships with other humans (employees, colleagues, clients, mentors, friends) that have the power to inspire and nourish me in ways I never thought possible. No one can (or should) lead all the time. Followership is the other side of leadership. Followership is the ability to take direction, to enthusiastically support a program, to be part of a team and to deliver on promises. The concept of followership doesn’t get a lot of airtime because being a follower isn’t fun or sexy. No one really teaches it in business school, and it certainly isn’t trumpeted as a key to sustainable business success. But followership delivers great rewards. Sitting back and letting others share their ideas, strategies and responsibility for executing lets creativity flourish and empowers other people to grow as leaders themselves. I have since returned to my day job and regained my speaking voice. But I am letting others step up to be in charge, putting my voice and my ego in check, with great positive impact in my business.


October 2017 issue of In Business Magazine  
October 2017 issue of In Business Magazine