Issuu on Google+

DEC. 2016

Beware Arizona’s Top Three Financial Scams

Startup Phoenix Are we empowering startups to power up our economy?

Insuring

a Multigenerational

Workforce

Melt Rate in the

Age of Disruption Endurance Is Founded on a

Culture by Design

THIS ISSUE National Association of Women Business Owners – Phoenix 2017 Healthcare Decisions Guide

$4.95 INBUSIN ESSMAG.COM


Fleet Intelligence For Your Business

VEHICLE & ASSET TRACKING SOLUTIONS GPS Insight works with Arizona businesses that have fleets of vehicles and other mobile assets to solve your unique business challenges through increased revenue, reduced costs, and reduced risk.

a 888-213-1178 l GPSINSIGHT.COM 7201 E HENKEL WAY, SUITE 400, SCOTTSDALE, ARIZONA 85255

Top 50 Private Businesses

#2 Best Place to Work in AZ

Innovator of the Year


YOUR GOALS MATTER. That’s why our in-depth knowledge and expertise can be your advantage.

We are relationship-focused and highly responsive, bringing you deep local roots, expert bankers, access to decision-makers, flexible solutions and a real commitment to superior service. All part of $17 billion Western Alliance Bancorporation, ranked #10 in the Forbes 2016 “Best Banks in America” list.

Your business matters.

Alliance Bank of Arizona, a division of Western Alliance Bank. Member FDIC.

602.389.3500 alliancebankofarizona.com


DECEMBER 2016

COVER STORY

16

Startup Phoenix: Economic Wellspring?

In Business Magazine gets into Phoenix’s startup environment, with a close-up look at the community that helps startups start and build. And a few of the businesses they helped launch share their experience. FEATURES

22

The Strong Case for Culture by Design 

Steven L. Blue discusses seven lessons American manufacturing’s decline can teach any company. 

28

Loving Well, Sans Weirdness

In the second of a three-part series, Jonathan Cottrell explains that it’s all about being authentic, and it doesn’t have to be mushy. DEPARTMENTS

9 PARTNER SECTION Celebrating 30 years of serving the women business owners of Phoenix

Guest Editor

14

Technology

“Address Risk of Data Breach” and “Protect Against the Top Three Financial Scams in Arizona”

15

Healthcare

“Offering Healthcare to Multigenerational Workforces” and “Service Partnership Saves 911 Resources”

23

Books

New releases give fresh insights on business thinking.

24

Nonprofit

Courtney Klein, co-founder and CEO of SEED SPOT, introduces the “Startup” issue.

Thankfulness offers health benefits to board members and the nonprofits they serve.

10

29

Feedback

Assets

Winter 2016 • nawbophx.org

#NAWBOFirst

So far, this year has been full of great community building, creating alliances and forming new partnerships. I am thrilled to be a part of this growing organization and witnessing, first hand, the impact it has on our membership. Let me share with you a few exciting announcements! First, get your calendar out and reserve this time in your schedule because you won’t want to miss it: October 15 – 17, 2017. These are the dates of the National Women’s Business Conference being held in Minneapolis next year, and, if you are a woman-owned business or want to better connect or support women in business, YOU WILL WANT TO ATTEND. This year, like most, I came away from the conference with what we call a “NAWBO conference high.” It feels as if I can conquer any challenge and I know that the work I’m doing is making a difference. After attending for the past three years, there are many pieces that I love: the leadership development opportunities, breakout classes that speak to growing my own business, the amazing keynote speakers, hearing stories from founding members and reuniting with friends I’ve made along the way, but most of all, the inspiration I receive from other business owners who are going through what I’m going through. However, I came away this year with more inspiration than usual — I swear it just keeps getting better and better every year I attend. The beautiful thing about NAWBO is that we are the NATIONAL Association of Women Business Owners, which means we are so much bigger than our incredible local chapter! For example, at the National level, NAWBO has just released the new NAWBO Institute for Entrepreneurial Development, a 501(c)3 non-profit educational foundation that seeks to provide opportunities for capacity building and organizational development for emerging and established women entrepreneurs. Through the Institute, NAWBO aims to strengthen the wealth-creating capacity of women business owners and to promote economic development within the entrepreneurial community so that we can build a legacy of success for the next generation of women entrepreneurs. Go to www.nawbo.org/about/institute to learn more. The power of our national organization is getting even stronger. National NAWBO has recently started a new countrywide program designed specifically for our Premier members who own businesses that exceed $1 million in annual revenue. It is appropriately named “The Circle,” and our very own Lynda Bishop will participate as the program director. It’s an exciting time to be a NAWBO member and this new program will fill a need by offering deeper support through providing our members with peer and business connections, access, and learning opportunities above and beyond their actual membership. This will come in the form of mastermind groups, two-day retreats each year, a speakers’ bureau, and much more. Go to www.nawbo.org/about/institute/nawbo-circle to learn more. And finally, in Phoenix, we’re working on a program for women who are striving for that first $1 million in revenue. We understand how difficult it can be to achieve that hurdle, as does Susan Brooks, founder of Cookies from Home and founding member of NAWBO Phoenix. She will oversee this future program, which you will soon find on our website www.nawbophx.org. We know that no one succeeds alone — and NAWBO offers the means for women business owners to contribute to the success of others. Won’t you join us? You’ll be surrounded by some of the most ambitious, collaborative women business owners in the Valley who will inspire you every day to reach your fullest potential. Please visit our website or contact our office for more details!

Phaedra Earhart 2016-2017 President NAWBO Phoenix Chapter Farmers Insurance 1425 S. Higley Road, Suite 107 Gilbert, AZ 85296 480-289-5768 phaedra.earhart@gmail.com Years in Business: 6 Joined NAWBO: 2011

Bill Jabjiniak, Janine Jerkovic and Christine Mackay respond to In Business Magazine’s burning business question of the month.

ABOUT NAWBO

—Phaedra Earhart, 2016 – 2017 President NAWBO Phoenix NAWBO® prides itself on being a global beacon for influence, ingenuity and action and is uniquely positioned to provide incisive commentary on issues of importance to women business owners. NAWBO Phoenix propels women entrepreneurs into economic, social and political spheres of power.

We host networking and education events throughout the valley each month, open to both members and guests. Check out our calendar at NAWBOphx.org and join us! Take advantage of this great networking opportunity by bringing business cards and making connections.

For more information, please visit NAWBOphx.org.

Phoenix Metropolitan Chapter of the National Association of Women Business Owners 7949 E Acoma Dr., #207, Scottsdale, Arizona 85260 480-289-5768 • info@NAWBOphx.org

1

nawbophx.org

NAWBO NEWS

31

National Association of Women Business Owners – Phoenix

SPECIAL SECTION HEALTHCARE DECISIONS Open Enrollment & Healthcare Guide for Business

Informing Our Business Community on Healthcare Options

39

2017 Healthcare Decisions

11

Briefs

“Arizona’s New ‘Declaration of Independent Business Status’ Law,” “Marketing Podcasts Teach and Inform,” “Find Customer Service Stars,” “Build a Listening Culture” and “The Right Person Meets the Right Job”

12

By the Numbers

CBRE’s annual Tech-Thirty list analyzes the 30 leading technology markets in the U.S. and Canada in terms of high-tech software/services job growth and the real estate market.

13

From the Top

Chuck Vermillion, back on the entrepreneurial scene with AccountabilIT, is out to change the landscape in managed services.

Open enrollment and healthcare guide for business

DEC. 20 1 6

4

INBUSINESSMAG.COM

2017 Audi A7 Plus: executive workouts.

34

Power Lunch

T. Cook’s: Savory Seasonal Mediterranean Plus: Mall meals don’t have to be fast food at the food court.

50

Roundtable

To stay relevant, businesses need to explore their melt rate and other “confront the brutal fact” questions.

ON THE AGENDA

25

Spotlight

Capitol Conversations — Greater Phoenix Chamber of Commerce Cybersecurity Lunch Forum — Arizona Technology Council

26

Calendar

Business events throughout the Valley

10

Startups are enjoying more than a fighting chance as Valley cities devote resources to their success. See Feedback, on page 10.


I N FAMI LY BUSI N ESS, FAMI LY ALWAYS COMES BEFORE BUSI N ESS.

He has more than just your eyes. He has your energy. Your stick-to-itiveness. Your fire. And in those oh-so-familiar eyes, you can see he has just what it takes to finish what you started. At Alerus, we have what it takes to help keep your legacy in good hands, from generation to generation. Call us today at 480-905-2400.

BANKING :: MORTGAGE :: RETIREMENT :: WEALTH MANAGEMENT :: ALERUS.COM

FIRST YOU FRIEND-RAISE THEN YOU FUNDRAISE Strategies That Drive Your Organization Forward Few firms match The Phoenix Philanthropy Group’s direct and diverse experience in fundraising, strategic planning, and organizational development. With national and international expertise, we are one of the most successful and experienced firms in the nation. Learn more about our talented team members, range of services and how we can help propel your organization to success at www.PhoenixPhilanthropy.com.

602.380.2478

info@phoenixphilanthropy.com

www.phoenixphilanthropy.com


December 2016 In Business Magazine is a collaboration of many business organizations and entities throughout the metropolitan Phoenix area and Arizona. Our mission is to inform and energize business in this community by communicating content that will build business and enrich the economic picture for all of us vested in commerce.

PARTNER ORGANIZATIONS Kristen Merrifield, CEO Alliance of Arizona Nonprofits (602) 279-2966 www.arizonanonprofits.org Jack Lunsford, Interim CEO Arizona Small Business Association Central Office (602) 306-4000 Southern Arizona (520) 327-0222 www.asba.com Steven G. Zylstra, President & CEO Arizona Technology Council One Renaissance Square (602) 343-8324 www.aztechcouncil.org Doug Bruhnke, Founder & President Global Chamber® (480) 595-5000 www.globalchamber.org Phaedra Earhart, President NAWBO Phoenix Metro Chapter (480) 289-5768 www.nawbophx.org Anne Gill, President & CEO Tempe Chamber of Commerce (480) 967-7891 www.tempechamber.org

FENNEMORECRAIG.COM

LAW THAT LEADS

®

COVERS MORE GROUND

REAL ESTATE ATTORNEYS AT FENNEMORE CRAIG are a part of one of the largest Real Estate practice groups in the Mountain West, which encompasses all aspects of real estate, from acquisition and finance, through development, leasing and sale. Our attorneys have significant experience in: • Commercial, Retail & Industrial Projects • Commercial Property Leasing • Health Care Real Estate • Production Home Builders • Joint Ventures & Syndications

• • • • • •

Property Tax Real Estate Finance Real Estate & Lease Litigation Workouts & Restructurings Land Use Planning & Zoning Master-Planned Communities

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

For more information about Fennemore Craig, visit FennemoreCraig.com or contact Joe Chandler, Real Estate Practice Group Chair, at 602.916.5403 or jchandler@fclaw.com.

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

6

DEC. 2016

INBUSINESSMAG.COM


R E S P E C T T H E FA N S | R E S P E C T T H E P L AY E R S | R E S P E C T T H E G A M E

The Waste Management Phoenix Open is a golf tournament like no other. Huge crowds. Enthusiastic fans. Exciting golf. It’s truly The People’s Open.

#THEPEOPLESOPEN Please enjoy the tournament and have fun. Remember to be safe, act responsibly and behave with class. Let’s show the world that we have the greatest fans in golf.

J a n u a r y 3 0 – F e b r u a r y 5, 2 017 | T P C S c o t t s d a l e | W M P H O E N I XO P E N .C O M


December 2016

VOL. 7, NO. 12

Read conference calls in real time.

Publisher Rick McCartney

Editor RaeAnne Marsh

Art Director Benjamin Little

Contributing Writers Doug Adelberg

Steven L. Blue Linda Capcara Jonathan Cottrell Shane Cragun John J. Egbert Robert Gibboni Mike Hunter Cassandra Larsen Kate Sweetman

Now, Deaf and hard of hearing participants can be actively involved in multi-party calls. Relay Conference Captioning (RCC) is free to Arizonans, streaming live text to any Internet-connected computer, tablet or mobile device worldwide.

Elise Thorpe Deborah Whitehurst ADVERTISING

Operations Louise Ferrari

Business Development Louise Ferrari

Maria Mabek Kelly Richards Cami Shore

LEARN MORE ABOUT RELAY CONFERENCE CAPTIONING AT ARIZONARCC.COM

Agency: LAVIDGE • Job: 16-AZRELAY-0031 • Client: AZ Relay • Contact: tfritz@lavidge.com Publication: In Business Magazine • Size: 4.875” x 4.875” • 4color

Events Amy Corben

More: Visit your one-stop resource for everything business at www.inbusinessmag.com. For a full monthly calendar of business-related events, please visit our website. Inform Us: Send press releases and your editorial ideas to editor@inbusinessmag.com.

President & CEO Rick McCartney

Editorial Director RaeAnne Marsh

Senior Art Director Benjamin Little

Financial Manager Donna C. Mitchell, CPA

Office Manager Lesia Schneiter

Accounting Manager Todd Juhl Corporate Offices 4455 E. Camelback Road Building C, Suite 135 Phoenix, AZ 85018 T: (480) 588-9505 F: (480) 584-3751 info@inmediacompany.com www.inmediacompany.com Vol. 7, No. 12. In Business Magazine is published 12 times per year by InMedia Company. POSTMASTER: Send address changes to InMedia Company, 4455 E. Camelback Road, Building C, Suite 135, Phoenix, AZ 85018. To subscribe to In Business Magazine, please send check or money order for one-year subscription of $24.95 to InMedia Company, 4455 E. Camelback Road, Building C, Suite 135, Phoenix, AZ 85018 or visit inbusinessmag.com. We appreciate your editorial submissions, news and photos for review by our editorial staff. You June send to editor@inbusinessmag.com or mail to the address above. All letters sent to In Business Magazine will be treated as unconditionally assigned for publication, copyright purposes and use in any publication, website or brochure. InMedia accepts no responsibility for unsolicited manuscripts, photographs or other artwork. Submissions will not be returned unless accompanied by a self-addressed, stamped envelope. InMedia Company, LLC reserves the right to refuse certain advertising and is not liable for advertisers’ claims and/or errors. The opinions expressed herein are exclusively those of the writers and do not necessarily reflect the position of InMedia. InMedia Company considers its sources reliable and verifies as much data as possible, although reporting inaccuracies can occur; consequently, readers using this information do so at their own risk. Each business opportunity and/or investment inherently contains certain risks, and it is suggested that the prospective investors consult their attorney and/ or financial professional. © 2016 InMedia Company, LLC. All rights reserved. No part of this magazine June be reproduced or transmitted in any form or by any means without written permission by the publisher.

8

DEC. 2016

INBUSINESSMAG.COM


COURTNEY KLEIN, SEED SPOT

Starting Up Startups

Courtney Klein is co-founder and CEO of SEED SPOT. In 2016, Arizona State University honored Klein with the “Young Alumni of the Year” award and Arizona Economic News named her “One of Arizona’s most Influential Millennials.” She is a graduate of ASU’s Barrett Honors College, where she received her undergraduate and master’s degrees in nonprofit management. She also completed work through the DSIL United Nations Executive Education Program in Thailand & Cambodia focused on Social Entrepreneurship and Innovation. 

The entrepreneurial fever is alive and well in Arizona, and there is no dearth of people with ideas on how to build the proverbial “better mousetrap” — new products or services to meet emerging needs or fresh takes on those that already exist. And all of that energy is what powers a growing economy. But a successful business takes a lot more than an idea, however great it may be. Entrepreneurs represent the foundation of a growing economy. Every big business started with an idea. Every great company started small. Those that have experienced exponential growth have demonstrated the ability to listen to customer needs, iterate quickly through change, and execute relentlessly on their vision. It takes strong leadership and dynamic teams to bring new ideas to life. It also takes a community of people who are willing to take early risks, place big bets, and roll up their sleeves to lend expertise and energy to help startups go from idea to scale. Traveling across the country as we expand SEED SPOT to new markets, I can attest that Phoenix has a unique asset in being a big small town. The ease of access to quality mentors, the openness of this community to take meetings with early-stage startups, and the collective desire to put Phoenix on the map nationally — #yesphx — is not something every community can claim. I have always appreciated that Phoenix is a city that does not compete with itself. In fact, for the cover story this month, In Business Magazine takes a close look at the environment here in our community that local startups are working in. Several of the incubators, accelerators and co-working organizations have opened up to In Business Magazine about strategies and resources critical to nurturing startup businesses. And In Business Magazine invited a few of the Valley’s cities to share their efforts to encourage and support startups, in this issue’s Feedback forum. With open enrollment ongoing for another two months, businesses dealing with healthcare coverage decisions for their employees will find a timely article on the Healthcare page that discusses issues involved in insuring a multi-generational workforce. Another article, on the Technology page, discusses how businesses can protect themselves against fraud. By the Numbers provides a look at the office market and employment in the Valley’s tech sector. And the Roundtable page presents an insightful exploration of how businesses must reinvent themselves to stay relevant in today’s economy. With these and other articles covering a full range of topics, In Business Magazine continues to provide the business community strong, relevant information to serve business decision makers at every level. As this month’s Guest Editor, I’m pleased to help bring you this issue. I hope you enjoy the read. Sincerely,

Courtney Klein Co-Founder and CEO SEED SPOT

CONNECT WITH US: Story Ideas/PR: editor@ inbusinessmag.com

Sparks Fly Phoenix is home to a very influential entrepreneurial community,

As we developed our cover story, we discovered that there are

and, as in many metropolitan areas throughout the country, there is

many more than we could feature in this single article. We will be

both fierce competition and concerted drive to make things happen.

working to elevate those groups and certainly continue our great

Our culture of expertise gives rise to many of our “startup” successes,

partnership with SEED SPOT and Courtney Klein, who helped lead

as we have always been a bit of a home away from home for some.

this “Startup” issue of In Business Magazine. Her leadership and

The “trend” and sustainable nature of nurturing ideas to become

capacity to see the value of enterprise has changed the landscape

businesses and profitable enterprises that, in turn, effect change

here and will continue, as SEED SPOT expands, to have great

and/or economic success has become one of our greatest assets,

impact on our community and others in an economic and socially

thanks to the true leaders in this space.

responsible way. —Rick McCartney, Publisher

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

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

9

DEC. 20 1 6

INBUSINESSMAG.COM


VALLEY LEADERS SOUND OFF

one or two of your most effective policies or strategies to help startups Q: Describe grow in your city.

FEEDBACK QUESTION: Let us know what you want to know from the Valley’s top business leaders. editor@inbusinessmag.com

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

BILL JABJINIAK

JEANINE JERKOVIC

CHRISTINE MACKAY

Economic Development Director City of Mesa Sector: Government

Economic Development Director City of Surprise Sector: Government

Economic Development Director City of Phoenix Sector: Government

LAUNCHPOINT, Mesa Technology Accelerator is a City of Mesa program created to accelerate the growth of young technology companies, thereby creating quality jobs and economic growth in the community. It is a place for connecting entrepreneurs by creating a supportive, flexible environment to help entrepreneurs grow and to increase economic activity within the region, and, in the upcoming year, will also offer a collaborative workspace program pass for qualified participating companies. Mesa THINKspot is a collaborative workspace/makerspace in northeast Mesa where entrepreneurs can meet to collaborate and share ideas, and then bring those ideas to life using specialized computers, software, 3-D printers, a video studio and other technology tools. Mesa THINKspot also runs workshops to help entrepreneurs hone their business skills. In addition, Mesa provides free online services for startups, such as the Mesa Business Resource Guide, filled with valuable information to help Mesa businesses succeed; StartupMesa.com, a powerful tool designed to help Mesa businesses gather and analyze market information; and MesaSiteSearch.com, a real estate search engine that allows companies to search for land or buildings in Mesa.

Surprise views the fostering of startup companies as critical to its economic future. That’s why more than a decade ago we were one of the first communities in Greater Phoenix to dedicate an employee position entirely to helping small businesses launch and succeed. The AZ TechCelerator business incubator has been the city’s primary vehicle to help startups since 2009. Operated by the Surprise Economic Development Department, the AZ TechCelerator started as a creative reuse of former city hall office space that has emerged as a critical resource leveraged by unique local businesses that need a location to scale up affordably. The business incubator currently is utilized by 16 client startups, two onsite service providers, and has a track record of more than 200 jobs graduated. The facility has been home to the only Google corporate office presence in the State of Arizona, following Google’s acquisition of the AZ TechCelerator-grown company Athena Wireless in 2015. The facility has also served as temporary corporate space for new international company locations to Surprise, generating more than 300 additional community jobs.

The City of Phoenix recognizes the importance of having a robust startup ecosystem. Our mayor and council have supported Startup Week Phoenix and other efforts, such as #yesphx, business incubators, accelerators, co-working and makerspaces, to foster entrepreneurial success within our community. Phoenix supports thoughtful development of a dense mixed-use urban environment, which is key to attracting startups. We find that startup companies desire locations where they can create their own sense of space within collaborative communities and connect with other like-minded companies. By supporting transit-oriented development, Phoenix is providing walkable communities where startup companies can connect with their team members at local businesses. To further attract startups, city leadership has committed to creating an Innovation District where anchor institutions such as universities along with established companies cluster together to assist startups. We are very honored to have some of those startups on the Innovation District Steering Committee, which also includes local developers, educators and architects. Together, we will create a strategy and environment that continues to attract companies like Tuft & Needle, DoubleDutch, Gainsight, Hopscratch, Uber and others.

City of Mesa Office of Economic Development mesaaz.gov/economic Bill Jabjiniak leads a team of 13 professionals focused on business attraction, retention and expansion, workforce development and revitalization for Mesa.

DEC. 20 1 6

10

INBUSINESSMAG.COM

City of Surprise surpriseaz.gov Jeanine Jerkovic’s decade with the City of Surprise Economic Development Department encompasses being the thought leader and project manager of the AZ TechCelerator. Previous economic development experience includes serving as a trade commissioner for the Canadian Consulate in Phoenix. She is currently the chair of GPEC Economic Development Directors Team and the board secretary for the Metro Phoenix Export Alliance.

City of Phoenix Community & Economic Development Department phoenix.gov/econdev During the past five years, Christine Mackay has helped locate or expand more than 180 companies into the region. In 2016, she was named Economic Developer of the Year by the Arizona Association for Economic Development.

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


QUICK AND TO THE POINT

Arizona’s New ‘Declaration of Independent Business Status’ Law A new piece of Arizona legislation, the Declaration of Independent Business Status (DIBS) statute is designed to help employers achieve greater certainty when classifying workers as independent contractors rather than employees. Determining whether a worker is an employee or an independent contractor can be difficult. There are no bright dividing lines. Instead, there are a number of distinct (but somewhat similar) tests, which may apply depending on the context, each of which includes a number of fact-specific factors that must be considered and weighed when trying to determine in which classification the worker rightly belongs. The requirement under the Affordable Care Act that businesses with 50 or more full-time employees must provide healthcare coverage to their fulltime employees (but not independent contractors) significantly raises the stakes of properly classifying workers as employees or independent contractors. DIBS became effective on August 6, 2016, and provides that if a worker executes a certain declaration, and if the employer “act[s] in a manner substantially consistent with the declaration,” there is a “rebuttable presumption” that the relation is one of independent contractor, not employee. Among other things, the workers must declare that they: (1) operate their own independent business; (2) are not employees and do not have a right to unemployment benefits; (3) are responsible for all tax liability for payments

BYTES

by Mike Hunter

Find Customer Service Stars Logi-Serve enables companies to predict customer service ability, enhance customer experiences, increase sales and build a culture

received from the employer; (4) are responsible for obtaining and maintaining all necessary registration and licenses; and (5) acknowledge that at least six of ten factors listed (which are among the factors typically used to determine independent contractor status) apply to them. [See A.R.S. § 23-1601(B).] But DIBS probably is of only limited assistance to businesses in the context of the federal Affordable Care Act. DIBS itself states that it provides a means to prove the existence of an independent contractor relationship for the purposes of Arizona’s statutes, not federal statutes. Moreover, the regulations implementing the Affordable Care Act suggest that the determination of whether a worker is an employee or an independent contractor is governed by common law principles, not the statutes of an individual state. Thus, a worker’s declaration pursuant to DIBS is not likely to create a rebuttable presumption that the worker is an independent contractor for purposes of the Affordable Care Act. Instead, it probably will be only one of the many facts considered in the totality of circumstances when determining whether that worker must be counted and whether that worker is entitled to healthcare coverage under the Affordable Care Act. Accordingly, businesses must be careful not to place too much reliance on a DIBS declaration in the Affordable Care Act context. —John J. Egbert, chair of the Jennings, Strouss & Salmon, P.L.C. Labor and Employment Practice Group and a member of the firm’s management committee (www.jsslaw.com)

of sales and service excellence through patent-pending science and tools that pose questions based on story-boarded scenarios, its use of advanced response gathering technology, and a validated competency framework. logi-serve.com

Build a Listening Culture Waggl’s real-time listening platform enables companies to crowdsource feedback by creating a transparent, authentic, twoway dialogue that serves the dual needs of companies wanting an engaged workforce and employees wanting to know that their opinions count. waggl.com

The Right Person Meets the Right Job Sokanu’s career discovery platform to help people find their ideal career will ultimately benefit employers as well. Aiming to fundamentally change the way people prepare for the workforce by helping them to find the career that is right for them and the unique path to getting there, Sokanu employs education technology, social networking and career psychology. sokanu.com

VISUALIZE

Marketing Podcasts Teach and Inform In an effort to help interested professionals become better marketers and businesspeople, MarketingPodcasts.com created this service to help discover podcasts that can teach and inform in areas that relate to marketing as well as other areas that can truly benefit business. The system checks the iTunes Podcasts directory twice a week for podcasts, adding to its own directory all podcasts with at least five reviews on iTunes. Individuals who host a podcast and feel it should be listed but find it isn’t making it into the directory automatically can contact the company and request it be added. marketingpodcasts.com

Employee engagement continues to be a bottom-line issue, and ignoring the rampant disengagement can be a costly oversight. For instance, one study found the typical cost of turnover for positions earning less than $30,000 per year is 16 percent of an employee’s annual pay — so replacing a $10/hour employee will cost a business $3,328.

11

DEC. 20 1 6

INBUSINESSMAG.COM


BY MIKE HUNTER

METRICS & MEASUREMENTS

Tech: Valley’s Economic Hot Spot

As employment grows, this sector continues to drive the Valley’s office market recovery

SEXUAL HARASSMENT IN THE TECH SECTOR The technology sector is the focus of another study, as Comparably — a company that analyzes business compensation and culture data — examines the level of sexual harassment reported by employees. It’s a workplace issue for both sexes, although men experience it only onefourth as often as women (sexual harassment is reported by 6 percent of men and 24 percent of women). comparably.com Have You Ever Been Sexually Harassed at Work? City / Percent of Tech Workforce Los Angeles: 15% Minneapolis: 12% Denver: 11% Seattle: 10% Phoenix: 10% Boston: 9% Washington, DC: 9% San Francisco: 8% Dallas: 8% New York: 7% Portland: 7% Atlanta: 7%

Phoenix lands at number two on CBRE’s annual Tech-Thirty list, which analyzes the 30 leading technology markets in the U.S. and Canada in terms of high-tech software/services job growth. Second only to San Francisco, the Valley continues to see the strongest tech-sector job growth in North America, reporting 44.5 percent job growth and more than 15,000 new jobs from 2013 to 2015. “The Phoenix tech sector continues to gain momentum, reflected by both significant job growth and an everstrengthening office market,” says Kevin Calihan, senior vice president in CBRE’s Phoenix office. “The Valley has firmly established itself as a growth market for tech firms; and, as our local business, education and economic development communities continue to work together to create opportunities, these firms will keep coming.” Tech-related office leasing accounted for 20 percent of all office leasing in the U.S. in the first half of 2016, up from 18 percent in 2015, despite an overall slowing in tech job creation. CBRE’s report showed that the hottest tech submarkets where tech job creation continues to boom — led by East Cambridge, Palo Alto and Santa Monica — are significantly outperforming their overall markets in terms of leasing activity and rent premiums, fueled primarily by the demand for highly skilled tech talent. In metropolitan Phoenix, downtown Tempe was the top performing tech submarket in terms of office fundamentals, followed closely by downtown Scottsdale, downtown Phoenix and the 101 Corridor in Chandler.

OFFICE RENTS IN THE TECH-THIRTY

The CBRE report shows that office rents for the top submarket in each of the 30 markets analyzed increased in all

High-Tech Current Period 2013-2015 San Francisco 47.0% Phoenix 44.5 Austin 33.3 Charlotte 33.2 Indianapolis 27.9 Silicon Valley 26.1 Toronto 25./9 New York 25.9 Chicago 21.1 Dallas/Ft. Worth 19.7

Rent 1 2 3 4 5 6 7 8 9 10

Job Growth Prior Period 2012-2014 42.7% 41.1 33.4 18.6 25.7 27.6 5.9 22.6 17.1 10.8

Office Market Current Period Q2‘14–Q2‘16 22.7% 11.6 15.3 14.8 5.0 28.4 -1.2 11.6 5.7 16.6

High-Tech Software/Service Jobs (L)

(thousands)

60 50 40 30 20 10 0

Rent Growth Prior Period Q2‘13–Q2‘15 30.7% 8.3 11.4 8.0 4.0 28.0 5.0 13.4 6.2 13.4

Office-Using Jobs (R) (Excludes High-Tech) 500 480 460 440 420 400 380 360 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Source: CBRE Research, Q2 2016 and U.S. Bureau if Labor Statistics, July 2016.

INBUSINESSMAG.COM

CBRE Group, Inc. cbre.com

High-tech Software/Services Job vs. Office-Using Jobs

Austin: 6%

12

CBRE also analyzed the Tech-Thirty markets according to high-tech industry job growth. San Francisco topped the rankings for the fifth consecutive year; its high-tech job base has grown 47.0 percent between 2013 and 2015, while average asking rents increased by 22.7 percent from Q2 2014 and Q2 2016. Eighteen markets outperformed the U.S. average of 13.7 percent job growth in high-tech software/services, with Phoenix (44.5 percent), Austin (33.3 percent), Charlotte (33.2 percent), and Indianapolis (27.9 percent) rounding out the top five. “Advanced technology has integrated itself into business productivity, and, although the talent pool is limited, strong demand for technology services from both businesses and consumers is expected to support hiring by high-tech firms. The skills of the available labor pool do not appear to align with available jobs, causing a structural barrier to growth,” says Colin Yasukochi, director of research and analysis at CBRE. “This demand for technology should support growth among high-tech companies and high-tech office market clusters.”

Source: CBRE Tech-Thirty 2016 (bit.ly/cbre-research-reports)

Chicago: 6%

DEC. 20 1 6

JOB GROWTH IN THE TECH-THIRTY

High-Tech Software/Services Job and Office Rent Growth

San Diego: 7%

Source (updated continually): bit.ly/techsexually-harrassed

but one submarket between Q2 2014 and Q2 2016. The highest rent growth in this period occurred in both established and up-and-coming tech submarkets, illustrating stiff competition among tenants to locate in areas rich in talent, such as University City, Oakland/East End Pittsburgh, East Cambridge, Palo Alto and Tempe. Average office rents in Tempe rose 24.5 percent to $25.74, compared to 11.6 percent to $23.61 for the overall Phoenix market over the same time period. From Q2 2013 to Q2 2015, Phoenix office rents grew 8.3 percent.

Net Absorption Growth Overall Market, Past Two Years (Q4 2014 – Q2 2016)

Silicon Valley Austin Phoenix Nashville Seattle Rakeigh-Durham Salt Lake City Charlotte Detroit Dallas/ Ft. Worth

Net absorption growth as a % of market’s inventory

-1%

1%

3%

5%

7%

9%

11%

Rent Growth Top Tech Submarket, Past Two Years (Q4 2014 – Q2 2016)

University City Oakland/ East End East Cambridge Tempe CBD Hillsboro Palo Alto Redwood City RTP/I-40 Corridor SOMA

3% 8% 13% 18% 23% 28% 33% 38%

Source: CBRE Research, Q2 2016

Over the past five years, the software/services industry created 780,000 new jobs at a 7.3 percent growth rate and accounted for nearly 20 percent of major leasing activity, according to CBRE’s Tech-Thirty 2016 report. In H1 2016, tighter labor and volatile capital market conditions led to job creation slowing to a 4 percent annual growth rate. bit.ly/cbre-research-reports


MINDING THEIR BUSINESS

Chuck Vermillion: Back on the Entrepreneurial Scene with AccountabilIT He’s out to change the landscape in managed services by Linda Capcara

After successfully growing OneNeck IT Services for nearly 14 years and, with his co-founders, selling it in July 2011 for $95 million, Chuck Vermillion was ready to jump back into the entrepreneurial world. “I learned that when you have great entrepreneurial success, it’s unquestionably the most satisfying professional experience you’ll ever have,” says Vermillion. Vermillion has weathered both good times and bad. When he and his co-founders started OneNeck, things were going so smoothly they often wondered when the other shoe would drop. They knew the reality of life included challenges as well as opportunities. Those challenges came right after September 11, 2011, when the economy took a significant hit along with their revenues. “During tough times, you have to be very pragmatic, calm and measured,” Vermillion says. “You have to positon yourself for the reality of the situation, and it often requires strong, bold action that can be very difficult.” After company-wide layoffs that reduced the workforce by approximately 10 percent and executive pay cuts across the board, OneNeck emerged in a stronger financial position. With AccountabilIT, Vermillion plans to grow the firm into the industry’s largest managed services business with the same industry-leading customer satisfaction ratings of his previous firm. AccountabilIT’s focus is on enterprise resource planning (ERP) applications. These applications are the ones companies use to manage their finances and inventories, enter and maintain orders, ship products and build parts. “Because it’s a single integrated application designed to meet the majority of their business automation requirements, the preponderance of businesses ultimately will run ERP applications in a private or public cloud,” says Vermillion. Through AccountabilIT, Vermillion is putting a greater emphasis on the local managed services market in the Greater Phoenix area. AccountabilIT is helping its customers understand the right cloud for the right workload, and which applications should be moved to the cloud and which ones shouldn’t. He also sees a real need in security management. “I talked to CIOs and asked if there were any services they weren’t getting, and many pointed to security management. We are now in a position to help them leverage the right tools to identify potential security breaches and assist in resolving the issues.” Vermillion was inspired to maintain this business focus after he was engaged by the Arizona Technology Council as a

pro bono consultant to help them find the right local managed services partner. During his research, he realized the Phoenix market was dramatically underserved. The managed services companies he found didn’t have the scale, process maturity or enterprise delivery capability that he had expected. The strategy to achieving growth began with Vermillion realizing that, to gain the confidence of the market in his startup, he needed to quickly acquire a customer base. On November 1, 2016, AccountabilIT announced the acquisition of MITS&C, the managed services division of Business & Decision, N.A., headquartered in Wayne, Pennsylvania. The move instantly grew the AccountabilIT staff from 12 to 100 and added an office in Wayne in addition to a global delivery service center in India. What excites Vermillion the most is, four of the top five executives at MITS&C worked with him at his previous firm. Everyone enjoyed being a part of a team that had the same vision and ideas on how to satisfy customers. “The band is back together. Our strategy will continue to be the same: Care about our customer’s success as much as we care about our own company. When everyone loves the work that they do, it makes going to work pretty easy,” Vermillion says. Growth is managed differently at different stages. Vermillion refers to his experience with OneNeck as he relates, “There’s the small, steady, incremental growth that comes in manageable step changes and is easy to handle, which is what we had at OneNeck in the beginning. Then there’s a rapid growth that is super exciting but presents risks, as when we acquired our first very large corporate customer. We had to change the existing processes that we once had, scale them to manage the new workload and quickly hire additional qualified staff. It was easy to get distracted by it all and forget about other portions of our business.” The key, he says, is to “recognize that you’ll make mistakes and adjust quickly.” With AccountabilIT, Vermillion is prepared for the growth that comes his way. He has the benefit of being a seasoned entrepreneur with a proven management team that is focused on customer success. “It’s not an accident that we chose the word ‘customers’ rather than ‘clients,’” Vermillion says. “Many people overlook that the root of the word ‘customer’ is ‘custom.’ Each of the solutions we design is unique to our customer’s need. That’s how we help them gain competitive advantage through information technology.” AccountabilIT accountabilit.com

The Managed Services market is one of the fastest-growing segments of the Global IT Market, driven by the increased adoption of big data solutions. In fact, the Global Managed Services Market is expected to grow by a Compound Annual Growth Rate of 12.5% to $193 billion by 2019, according to market analyst firm IDC.

AccountabilIT Obsessed with Managed Services • AccountabilIT was launched in August 2016 in Scottsdale. • The company acquired MITS&C in November 2016, boosting its employees from 12 to 100 and adding offices in Wayne, Pennsylvania; and India. • Vermillion is a seasoned, successful entrepreneur and, with his co-founders, sold his previous business, OneNeck IT Services, to TDS in July 2011 for $95 million. • Six of the top seven executives at AccountabilIT worked with Chuck Vermillion at his previous firm, OneNeck IT Services. • Chuck Vermillion currently serves on the boards of the Boys and Girls Club of Phoenix and The Miracle League of Arizona.

13

DEC. 20 1 6

INBUSINESSMAG.COM


INNOVATIONS FOR BUSINESS

TECH NOTES

by Mike Hunter

Protect Against the Top Three Financial Scams in Arizona The typical business loses 5 percent of its annual revenue to fraud, according to the Association of Certified Fraud Examiners. Financial statement fraud causes the greatest median loss, with an average of $975,000 per scheme. As a financial institution concerned with protecting our customers from scams, we bring experience in identifying scams and preventing being taken in by them. The following are the three top scams circulating in Arizona and actions businesses can take to protect against them.

Address the Risk of Data Breach More than 90 percent of data breaches worldwide involve small and medium-sized business organizations. Data breaches result in increased global economic debt — and the reality is, hackers attack anyone, with few to no exceptions. The governing body of the payment card industry (PCI) is the Standards Security Council that includes the major card brands, who addressed card data security by creating PCI SSC in 2006. These standards, known as PCI Compliance, are now required every year by all organizations involved in the handling, processing, management or storage of cardholder data, and have assisted merchants globally with best business practices to better secure customer cardholder data. Says Cleveland Brown, CEO of global payment processing provider Payscout, “PCI Compliance is important to everyone in the payment processing industry. With data breaches increasing each year, it’s imperative that both merchant and customer, alike, perform due diligence to ensure they are not enabling cybercriminal activity.” Payscout recently partnered with data security company Protocol to establish safety for their clients via the requirements for PCI compliance needs.  The PCI SSC offers these steps to assist any size company in keeping its cyber defenses primed against attacks aimed at stealing its cardholder data: • Be aware of data breaches and how they happen. • Perform an internal risk assessment. • Create and follow a data breach prevention security policy. • Get assistance from a professional with proper credentials. payscout.com pcisecuritystandards.org protocolpci.com

DEC. 20 1 6

14

INBUSINESSMAG.COM

PHISHING

Phishing or spoofing is the most common type of online fraud. A fraudster obtains email addresses of a business’s employees and sends out an email that appears to be from that business’s financial institution. These emails threaten to close accounts or claim that the business’s financial information has been compromised. The fraudster’s goal is to make an employee act quickly without thinking about what he is doing. The email directs the employee to a website through a link in the email that leads to what looks like the institution’s website — but is actually a well-constructed fake. Once there, the employee is asked to provide confidential information, such as a business account number, password, credit card number, PIN or other confidential information. A business should advise all its employees to never click on links in any email that looks suspicious. They can use their mouse to hover over a link to detect the true website URL, which can be useful in distinguishing a legitimate site from a fake one. The business should contact its financial institution directly by phone or through its official website link if there are any questions or concerns about the content of emails any of its employees receive.

VISHING

Vishing (Voice Phishing) is a form a fraud that attempts to get personal information about a company through phone calls to its employees. A fraudster will use a social site such as LinkedIn to learn who works in an office, then use the business’s general phone number to contact them. The caller will claim to be from the business’s financial institution and needs company information, such as credit card numbers, personal identification numbers (PINs), bank account numbers, Social Security numbers

or other confidential information. Sometimes, the call will be an automated recording requesting personal information; other times, it may be a live caller. They will often claim that the business’s accounts are suspended or payments are overdue to scare the employee and cause him to act without thinking. It is important to remember that a financial institution will never ask for personal information by phone or through email. A business should not give out any information over the phone to unknown callers. Instead, it should contact its financial institution or credit card company directly to verify the validity of the message and any action required.

CERTIFIED CHECK FRAUD

Fraudulent certified checks are a growing concern in Arizona. Fraudsters will obtain a real check from a financial institution and make their own version that looks similar to the real thing. They will then attempt to make a purchase with the fraudulent check. Often, they will make it out for more than the cost of the item they’re buying and ask for the difference in cash. Once a business deposits the check, its financial institution notifies the business of the fraud and that company is responsible to return the money to the bank. The best way a business can avoid this scheme is to call the issuing bank and verify the validity of the cashier check before accepting it as payment. Being aware of these business scams in Arizona is businesses’ first line of defense against these types of fraud. It’s always worth the expense and effort to take the necessary steps to prevent fraud before it happens. That enables business owners to channel their profits into building their business instead of paying for the aftereffects of a scam. —Robert Gibboni, senior vice president of Risk Management at OneAZCredit Union (www.oneazcu.com)

Tech, fraud and the human element: All employees need to be trained — annually — on how to recognize bad checks, counterfeit currency, stolen credit cards and suspicious activity such as money laundering, advises OneAZ Credit Union’s Robert Gibboni.


YOUR BENEFIT IN BUSINESS

Offering Healthcare to Multigenerational Workforces As employers work to refine their annual benefits offerings, a central challenge they face is providing the right mix of care and preventive services for an increasingly age-diverse population. For the first time in modern history, four generations are in the workforce, each with different needs, desires and resources. Employers are being challenged to better understand their audience, provide choice, educate and empower.

GETTING A LAY OF THE LAND

Understanding the different life stages of employees is crucial. • Just beginning careers, millennials have a mindset of invincibility, while perceiving themselves as less healthy and more stressed than other groups. Student debt and living expenses are major drivers in choosing inexpensive plans, while supplementing with employer-sponsored wellness programs. • Hit hard by the recession and focused on recovering income they may have lost, saving for retirement and putting children through college, generation X realizes the importance of coverage, but salary comes first, leading them toward basic plans bolstered by voluntary benefits. Wellness is key, as they are more susceptible to chronic conditions, such as diabetes, heart disease, cancer and other costly conditions. • A little better off, baby boomers’ savings were impacted by the recession, too, yet they’re willing to invest in a quality plan with higher premiums and Health Savings Accounts. Wellness programs are viewed as ways to manage chronic conditions. • Those 65+ are working either because they have to or because they want to stay active. Knowing their health is vulnerable, they’re looking for a high-quality plan with both critical illness offerings and major medical coverage. Wellness is more about managing conditions.

EMPOWERING THROUGH CHOICE, EDUCATION

The stakes are high. It’s why many employers are turning to private exchanges, providing 10–15 competitive options, whereby employees can craft a benefit package that meets their needs. Choice is important when the demographics, financial standing and risk tolerance greatly differ. It also enables employees to choose where they spend their hard-earned money. That’s why it’s critical for employers to not only educate their employees, but also empower them to make good healthcare choices. When employees

become better consumers, employers’ cost ratios are lowered, renewals are lowered and savings are increased. Education should reach beyond plan particulars to ways the employee can lower out-ofpocket costs, such as choosing to fill prescriptions at big-box retailers instead of pharmacies. Employers have their work cut out for themselves. Today, the average Amazon.com shopper spends 40 hours per week and $2,500 annually with the retailer. Healthcare is significantly more expensive, yet a recent study by a leading insurance company revealed that nearly half of employees spend 15 minutes or less deciding on a benefits package.

COMMUNICATING: THE RIGHT PEOPLE, THE RIGHT VEHICLES, THE RIGHT TIME

WELL WELL WELL

by Mike Hunter

Service Partnership Saves 911 Resources A service partnership between Tempe Fire Medical Rescue Department and Tempe St. Luke’s Hospital is not only making a significant impact on patient care, it’s reducing the number of 911 calls from people who may not require emergency services. Formed to address repeat 911 calls from chronically ill patients who may not require emergency services, a Patient Advocacy Service has reduced the strain on 911 resources while providing patient-centered care and medical management services. Since the partnership was first piloted in 2013, the PAS has

Good communication is key to ensuring satisfaction. A lot of employers focus their communication on the employee, but spouses who handle the majority of the family’s needs are the real decision makers. Is information being delivered to them? Employers should also be aware of how generations best consume information. For millennials, that means utilizing technology, including videos, Web links and social media. Gen X likes to research options before speaking with knowledgeable resources. Boomers and 65+ are all about personal connections and one-on-one outreach. Is communication diversified? Lastly, healthcare is a conversation that needs to happen throughout the year, not just during open enrollment. Surveys show that satisfaction, awareness, engagement and stewardship skyrocket when employees feel empowered and in the know. Is it frequent?

served more than 100 Tempe residents.

A HAPPY, HEALTHY WORKFORCE

services that the PAS offers.”

The landscape is changing and challenging employers to approach healthcare differently. With more options than ever before — from major medical and voluntary benefits to paid time off and even school loan repayment — the employer’s role has evolved to include education, empowerment and guidance unlike ever before. —Doug Adelberg and Elise Thorpe, vice presidents with Arizona-based Lovitt & Touché, one of the nation’s largest insurance brokerages, which offers property and casualty insurance, specialty insurance, risk solutions for business, personal insurance, bonds and surety, and comprehensive employee benefits solutions (lovitt-touche.com)

The service has dramatically reduced costs to the system and freed up TFMRD to assist in emergencies across the city. Prior to the inception of this service, the teams from TFMRD and Tempe St. Luke’s Hospital calculated that ambulance, emergency department and treatment fees from chronically ill individuals (who sought 911 services three or more times within a nine-month period) topped $732,000. Today, that cost has drastically decreased as a number of patients have become increasingly self-sufficient through the PAS. Patients have been trained by the PAS team to call 911 only in cases of legitimate life-threatening emergencies. The PAS has several active teams that are trained to serve patients. A three-person team consisting of TFMRD- and TSLH-registered nurses and TFMRD medics, who have a strong clinical background and experience in extracting extensive patient history, make patient visits. And TFMRD spokesperson Kellie Sullivan says, “We’re working to enhance the suite of “Our goal in creating this kind of community paramedicine program is to connect chronically ill patients with resources that will help them achieve and maintain their independence,” says Sheila Bryant, pre-hospital coordinator at Tempe St. Luke’s Hospital. “The increase in coordination among healthcare providers is reducing the burden on the 911 system, yet it still provides support services for patient care. The reduced number of calls coming in to 911 from repeat patients is a strong indicator that this program is working.” tempe.gov/city-hall/fire-department/patientadvocate-services

According to JustFacts.com, the change in healthcare spending in the U.S. from 1960 to 2014 was a decrease by consumers directly (48 percent to 11 percent) and an increase by private insurance (21 percent to 33 percent). justfacts.com/healthcare.asp#spending

15

DEC. 20 1 6

INBUSINESSMAG.COM


s p u t r a t ? s y g m n o i n r o e c w e o r p u m up o e e r w e e r w A to po arsh

by Ra

eM eAnn


T

he past few years have seen a tremendous growth in the entrepreneurial ecosystem and the emergence of a strong startup community in Greater Phoenix. The broad interest in incubating businesses and accelerating startup development is evidenced in the diverse membership of the Arizona Business Incubator Association, which ranges from co-working spaces, incubators and accelerators to economic development organizations and community colleges. In the continuum of the startup ecosystem, co-working spaces have emerged to offer entrepreneurs and small businesses an opportunity to rent space in a professional work setting. They often foster collaboration among members. Business incubators provide more high-touch, hands-on assistance after accepting clients through an application process. Typically, an incubator supports first-level startup companies, with a technical assistance program tailored to each company in the program — putting a strategy in place to help the companies quickly develop, grow, establish all the best practices to everything from bookkeeping to marketing to following a business plan, and

providing accountability to move them forward. Accelerators are generally the next step, helping companies raise funding and recruit the right kind of talent. Entrepreneurship has also become its own discipline in colleges and universities, which have been able to channel the strength of their knowledge resources to the advantage of students’ startup enterprises. Economic development cannot be stagnant. Bringing new businesses into our community remains a key purpose of municipal and regional economic development departments (three of whom share their city’s efforts in this issue’s Feedback on page 10) and organizations — and startups is where much growth potential lies. In fact, Phil Bradstock, program manager with the City of Phoenix who oversees its Entrepreneur and Innovation Strategy, notes that seeing WebPT grow from one person to more than 260 employees made him and his colleagues in economic development realize that, shortsightedly, “we were focusing on the larger companies.” The need he observes is to focus on the small companies that have the ability to become the larger companies.


n on o s to izati my? n a ally a g r r o e o n n r eco nel, k ge you ? nity/ rson spea ct of u e a u p able p m o , y n ing valu e im com a d h c s n n t , s e u s e as f e be gram hat i usin r pro ail (such ould hav 1: W ix area b u n o o y i f st en left d or hat w Que r Pho they ccee acking t e r t u e a s t e f o r t a are l the G hem sses s we sine eak for t e c u r b u -br wed reso rked follo make-or d or e e p v u wo l ’ o e u e y h o r y t : If how tha t we . ion 2 nges tha sources es — economy t s s s e e e n e r / i l l y s Qu d a t h an uni d bu s of c ge), nche ea comm u a type knowled l r y sfull hoenix a et cces mark u s e r t rP u Grea of yo e e h t n ut o e to mad s abo ’s u t l i l e T ence n 3: iffer d stio t e a u Q d wh it an h t i w

CO+HOOTS Jenny Poon Creative Director and Founder cohoots.com

ER 1:

ANSW

We are the support structure for the growth of more than 250 scaling businesses. We provide entrepreneurs, regardless of race, age, gender, sexual orientation and socio-economic status, a safe place to launch, scale and fail. We surround companies that range from service-based businesses to health technology companies to startups with resources for them to be successful. Being an entrepreneur is incredibly isolating, and oftentimes the one thing that can be the difference between failure and success is the access to resources and a community to push them forward. We are a physical space, but what makes us unique is we are a strong community of like-minded entrepreneurs who have been through it all and have a unique alignment of wanting to help others also succeed. We facilitate daily educational events, peer-to-peer mentoring, happy hours and networking opportunities, and an online community for members to share challenges and grow in the way that makes the most sense to each as a leader, as an employee, as an innovator. Combined, these companies generate more than $80 million in revenue. 

18

DEC. 2016

ER 2

One of the biggest things that CO+HOOTS graduate Sputnik Moment learned was how to grow its team. Because it was able to keep its office costs low with its CO+HOOTS membership, it was able to concentrate on scaling its team from a solopreneur to a company with an international presence that has created more than 15 jobs. Sputnik Moment founder Pierre Kaluzny was able to find talent and fill needs on his team through the CO+HOOTS community. Sputnik Moment also hired and collaborated with a handful of fellow CO+HOOTS members to grow and develop its brand. 

ANSW

ER ANSW

3: 

Heckler Design joined CO+HOOTS when it was about to hire its first employee. CO+HOOTS helped Heckler Design founder Dean Heckler find his first employee and then continued to support his growth as a leader and in managing his team. As he grew, he needed different support. He hired his bookkeeper from our community, and found his general manger through connections in our community as well. A lot of his new products were beta tested with the CO+HOOTS community of early-adopting business owners. 

INBUSINESSMAG.COM


Entrepreneurship + Innovation, Office of Knowledge Enterprise Development, Arizona State University Ji Mi Choi Associate Vice President entrepreneurship.asu.edu

The Startup’s Perspective This cover story looks at the impact on our economy and community of organizations that help startups develop into viable businesses. In Business Magazine asked them to share what they contribute to the process. To get a more rounded view of startup experience, In Business Magazine sought input from some of the new startup businesses themselves. Business founders share their perspective on what difference the support made to their

ER 1:

ANSW

Arizona State University values entrepreneurship as a core institutional characteristic. As such, ASU provides support for entrepreneurship in a shared support services model across our community of university entrepreneurs as well as in the greater community. Two examples of Arizona State University’s programs focused on supporting entrepreneurs are the ASU Edson Student Entrepreneur Initiative and Venture Devils. The Edson Initiative is going on its 12th year and has supported nearly 300 student-led startups with teams receiving around $3 million in seed funding to date and securing more than $5 million in external funding. The Edson Initiative supports student-led ventures from all colleges and schools across ASU, for-profit and not-for-profit, across a wide swath of industries. The Edson Initiative was the catalyst for further growth of our accelerators programs and led to the creation of Venture Devils to cast a wider net of support for our student, faculty and community entrepreneurs. ASU’s newly-formed Venture Devils program is designed to support students, faculty and community members by aligning with the vision of access, excellence and impact at the university. Participants have access to numerous resources, including being paired with one of 40 ASU Venture Mentors, typically a local successful entrepreneur, who provides regular ongoing support to the venture. Currently, nearly 200 ventures are participating in the program, with industries ranging from technology to healthcare. Formalized curriculum (both through academic degree programs and non-academic training programs) is available and encouraged for all participants, including the community-affiliated ventures. All funding competition applicants across the university are included in the Venture Devils program.

success, what challenges they faced post-launch and what resources were of value to them in the business community (or what resources the community lacked that they believe would benefit startups), as well as the impact they, themselves, are now having on our business community and economy. Their insightful responses are offered, in part, on these pages. For the full story, please visit our website at www.inbusinessmag.com.

Heckler Design founded by Dean Heckler hecklerdesign.com Launched from: CO+HOOTS “One of our greatest success stories is Heckler Design, which started in our space with just one member and now employs more than 10 in two downtown Phoenix warehouses,” says Jenny Poon. An example of the ripple effect of one startup’s success is the description Dean Heckler gave this writer when interviewed for an In Business Magazine article on the local manufacturing sector: He designs his company’s products so that they do not include anything that can’t be made in Arizona — 99 percent of it in the Phoenix metropolitan area. The steel fabrication is done in Tempe, as is the powder coating; plastic parts are tooled and ejected in the Scottsdale Airpark; parts are assembled in the company’s Phoenix warehouse; and the packaging is custom-made in Tempe.

:

ER 2

ANSW

Certainly funding continues to be a challenge for teams after they leave our programs because of the uneven distribution of venture capital available nationwide. The need for capital in order to scale is a common denominator for ventures that have successfully demonstrated proof of concept, prototyping, product development and readiness to enter the market. However, there are increasing connections being made here in Greater Phoenix, and the startup community is working collaboratively to have greater collective impact.

Vivek Kopparthi Co-Founder & CEO NeoLight theneolight.com Launched from: Entrepreneurship + Innovation, Office of Knowledge Enterprise Development, Arizona State University

:

ER 3

ANSW

NeoLight joined the ASU Edson Student Entrepreneur Initiative (2014–15) with just an idea on how to treat jaundice in an efficient and accessible way globally. Equipped with seed funding from the Edson Initiative, within 30 days the team created their first prototype. Fast forward two years later, NeoLight created 12 jobs, raised almost $2 million in funding and is currently going through the FDA approval process that will enable them to go to market in early 2017 with their device that cures jaundice 40 percent quicker than traditional methods. The startup support the ASU Edson Initiative provided through mentorship, entrepreneurial training, prototyping facilities and funding allowed NeoLight to take flight.

INBUSINESSMAG.COM

ASU is a powerhouse. The spectrum of help we got started with using the law school to file the LLC; using the patenting school to file the first patents; leveraging on the university’s partnership with prototyping spaces like TechShop; access to mentors; and exposure to lean, launchpad startup curriculum; and extended all the way through hiring a team and funding the startup. The sheer size and interdisciplinary nature of the university helps brings the incubated startups to a critical mass level, easily. Of all the above resources, I feel the most valuable resources were access to mentors, free patenting resources and the startup school curriculum.

DEC. 2016

19


Hotwire Development Troy Sherman Co-Founder hotwiredevelopment.com

 

ER 1:

ANSW

Hotwire is an entrepreneurial product development firm that partners with capitalized startups and early-stage companies for the purpose of greatly reducing their product development costs while also increasing their likelihood of success. We provide our array of engineering, product development, marketing and business development services without any profit added in. We can do everything from a back-of-the-napkin sketch to placing a product on a store shelf. In exchange for working without profit, we receive upside in the success of the company or product being developed. As a result, Hotwire is only successful when our client partners are successfully selling the products we develop. Like a true business partner, we share in both the risks and the rewards. Since 2003, Hotwire has successfully launched multiple multi-million-dollar companies and dozens of products with combined volumes of more than 5 million units.

ER 2

Startups fail for multiple reasons during their early stages. Oftentimes, it is because the founders don’t have the experience to appropriately recognize, assess and mitigate the risk of a business choice they are making or the financial resources to weather the storm when things just aren’t going as planned. In startups, things never go as planned — it always takes more time and money than envisioned. This is just one of the areas where Hotwire makes a substantial difference. Because we become partners in the business, we are inherently invested in overcoming challenges and producing a successful outcome for the product being developed. We do this through a talented team of personnel with a proven track record of developing successful products and businesses. We, personally, have developed products that have been successfully sold or licensed to the likes of Belkin, Dell, HP, IBM, Microsoft, Logitech and Toshiba and sold through national retailers such as Costco, Home Depot, Sam’s Club and Target. 

ANSW

ER ANSW

3: 

We became so involved in one of our partnerships that we actually became the operator of the company after the products were developed. The company is now Evolve Technologies, and it markets and sells a unique energy-efficiency technology designed to save hot water while showering. Today, Evolve is a multi-milliondollar enterprise among whose customers are the largest utility companies in the U.S., including but not limited to APS, SRP, Southwest Gas, Southern California Gas and Pacific Gas & Electric as well as San Diego Gas & Electric. 

SEED SPOT Sara Scoville-Weaver Executive Director seedspot.org

ER ANSW

1: 

The impact of SEED SPOT on the local community has been immense. To date, the totals are 288 ventures launched, 742 new net jobs created, more than $8.4 million in capital raised by the ventures, and more than 1.1 million lives impacted nationally and globally. Our mission is to create sustainable solutions to the problems communities face through the power of entrepreneurship. SEED SPOT has been a driving force for social enterprise business advocacy, community development and the promotion of Phoenix as an ideal city for startup and innovation culture.

ER 2

Over the past four-and-a-half years, we have seen how very valuable the Phoenix startup community and local government has been to our entrepreneurs’ long-term success. It is crucial that Phoenix paves the way for entrepreneurs to launch and succeed, and continues to develop a support system of mentors, devoted leaders and community activists to aid in their success. Two of the biggest challenges our ventures face is lack of access to local capital and the need to overcome the prejudice surrounding the idea of what a social-impact business is. Increased knowledge and advocacy of this type of entrepreneurship is necessary to continue to propel these businesses forward, and will result in more capital access as well. The businesses that are created by SEED SPOT have the potential to be high-revenue-generating companies that create jobs and drive our economy forward.

ANSW

20

DEC. 2016

ER 3

One successful business incubated by SEED SPOT is Vestafy, started by founder Steve Zeidman. This business came through our fall 2014 full-time cohort with the mission to transform the animal welfare fields’ relationship to technology and data that will empower organizations to save lives. Through SEED SPOT programming and mentorship, Zeidman learned how to properly market his product, build crucial business operations, and surrounded himself with the community and resources necessary to his full-scale launch. Zeidman’s company was purchased by Pethealth, Inc. in May 2015.

ANSW

INBUSINESSMAG.COM


Tallwave Jeffrey Pruitt CEO tallwave.com

John Lockhart CEO Billfire billfire.com

ER 1:

ANSW

Through the work we do at Tallwave with B2B technology companies, we’ve been fortunate to work with numerous Arizona-based companies as well as nationally recognized enterprise organizations to bring their ideas to commercial success. As a result, these companies have been able to diversify revenue streams, differentiate themselves in the marketplace and, most importantly, disrupt their own industries with innovative software products. This is particularly important for Arizona, as the revenue growth and product diversification inevitably creates more job opportunities locally, injects more cash flow into our local economy, and shines a spotlight on our innovation community. The Arizona-based companies we’ve gotten to work with include AppointmentPlus, Shutterfly, Picmonic and Sparrow, to name a few. These companies have had tremendous success over the years, contributing greatly to our local economy.

: ER 2

Because we work mostly with growth-stage to enterprise companies, they come to us at critical, but often very different, points in their business. We’ve worked with companies needing to develop their product and successfully launch it in the marketplace. For this, we helped bring the concept to life, from conducting extensive market research to building and testing the product to branding the companies and planning their sales and marketing channels. For larger companies, we assist with the development of new technologies that either add to or supplement their current offerings. These companies often have a successful place in the market, but simply needed the resources to prototype and bring their innovation to life. With other clients, we assisted with brand development and rebrands following company mergers and product evolution.

ANSW

Launched from: Hotwire Development It’s hard to put a value on them, but here are ones I count at the top. One is, the principals at Hotwire Development are smart entrepreneurs, and they don’t just develop a product without thought. As a matter of fact, they don’t even take projects without really understanding it from the front to the back — the market, the manufacturing, the cost, the potential price. When you partner with them, they bring all those skills with them; they’ve done all those things. We started with an idea I brought to them, and we sat down together and looked at: What was the market? What would this cost to make? Where would we manufacture this? What would the marketing plan be? Pricing? All those kinds of things.

Steve Zeidman Vice President of  Software Solutions  Pethealth Inc A Fairfax Company pethealthinc.com Launched from: SEED SPOT I found the coaching from the SEED SPOT staff, mentors and fellow entrepreneurs the most valuable. It’s very hard to keep believing in yourself in isolation. The outsider view on what you are doing is so important.

Dave Albertson

: ER 3

While we no longer serve as an incubator, in our early days one local success was Shelvspace. It has become a leading provider of cloud-based sales technology for the Consumer Packaged Goods industry. This company disrupted an industry that had gone more than 30 years without significant change to the fragmented sales and brokering process. The CPG industry was ripe for innovation, and Shelvspace broke into the market with its mobile tools and real-time data reporting. It has since closed venture funding from local and national investors and is being used today as an enterprise sales cloud for many of today’s leading CPGs.

ANSW

CEO and Co-Founder Shelvspace shelvspace.com Launched from: Tallwave For founders, knowledge and networks are always extremely valuable. As an early-stage company, it’s hard to predict the roadblocks that will be in the way to realizing your vision. For this reason it is critical to align yourself with others who can remove blind spots for you and connect you with folks who can help. Knowing who to go to and having a deep bench of connections can often help you get past the big barriers faster and with less capital.

INBUSINESSMAG.COM

DEC. 2016

21


SMART SUCCESS

The Strong Case for Culture by Design Seven lessons American manufacturing’s decline can teach any company by Steven L. Blue

The United States destroyed its enemies in World War II because it out-produced them. Its manufacturing capacity was enormous and efficient. Its workforce was inspired and committed. The government, suppliers, and competitors all collaborated to produce the biggest manufacturing juggernaut the world had ever known. It seemed there was no end to America’s manufacturing might. But there was.

The end to America being a manufacturing powerhouse began during the recession of 2008. Millions of middle-class manufacturing jobs were lost. And they never came back. In fact, since 1979, manufacturing employment has plummeted by more than 33 percent. That is worse than the job losses suffered during the Great Depression. So what happened? How did the world’s mightiest manufacturing machine end up as the equivalent of room

Create a Culture by Design The strategy requires consciously and deliberately executed steps. 1. Understand the values the organization currently has. Some, Steven L. Blue is the president & CEO of Miller Ingenuity, a global supplier of missioncritical solutions in the transportation industry, and author of the new book American Manufacturing 2.0: What Went Wrong and How to Make It Right. steveblueceo.com milleringenuity.com

DEC. 20 1 6

22

INBUSINESSMAG.COM

Don’t choose values that sound cool in the C-suite but stupid to

perhaps all, of the values may be perfectly appropriate. Some may

employees. Choose values that everyone in the organization can

not be. But remember, the underlying values are probably different

get behind and feel good about.

from the bumper sticker values. Conduct an anonymous survey of every single employee and ask them. It would be a mistake to make this a human resource exercise. It has to come right from the top to be taken seriously. 2. Once you know the underlying values of the organization, decide which ones are worth keeping, nourishing and promoting

Sound like a tough job? It is. The last time I did this, it took a year. 3. Declare to the organization the new values that have been chosen — and why. If you have chosen well, people will applaud you when you tell them. If you have chosen poorly, you’ll be a water cooler joke. Be very deliberate and comprehensive when you announce the

and which ones need to be discarded. Then you and your senior

new values. Explain completely what each value means, why it was

leadership team can decide which new values need to be

chosen, and what you expect from employees in terms of behavior

implemented. This is not a slogan exercise. It is a gut-wrenching,

to support the values.

soul-searching mission. Which values should you choose? It will be different in every company, but you should choose values that drive organizational behavior toward remarkable outcomes.

4. Now comes the most crucial part. You must be certain your senior executives live these values day by day. You can’t expect people from below to do what the top does not.

According to Global Human Capital Trends 2016 report from Deloitte, building a meaningful culture is one of three areas on which companies have begun placing a high priority (the other two are increasing employee engagement and retention, and improving leadership). bitly.com/human-capital-trends


BETTERING YOUR BUSINESS service to China? How did the nation with the workforce that won the war end up with a workforce outsourced to India? How did the most motivated, inspired and productive workforce on the planet end up caring more about their bowling scores than their production numbers? There is no shortage of explanations. Some experts claim China is to blame. Others cite United States trade policies. And still others say it is because of the rise of the millennials. However, very few people point to the real reason. And that is a failure of American leadership on an epic scale; a failure of government to work with manufacturing instead of against it; a failure of business to adapt to the global marketplace instead of running from it. But most of all, it is a failure of leadership to harness and unleash the remarkable potential of the American worker. What must be recognized is that creating a “culture by design, not default” is the only way this massive potential can be released. A culture by design has a bedrock of carefully selected company-wide values that motivate employees, delight customers, serve their communities and spark innovation and creativity. But most companies have cultures “by default, not design.” They have what I call “bumper sticker” values. Bumper sticker values are created in boardrooms because they sound cool. But they don’t reflect the real, underlying values of the organization. One has to look no further than the Wells Fargo bogus accounts debacle to illustrate this. Two of Wells Fargo’s key values are “ethics” and “what’s right for their customers.” And yet what the company did was clearly neither. How can a company with those supposed ethics commit such an act? It can only be because, while those values look good on a bumper sticker, the real, underlying values at Wells Fargo are “profit above all else.” There’s no argument that profit has to be the number one goal. The problem with that as a core value above all else is, people will act that way. And when they do, relationships between employees and customers suffer, quality suffers, the books get cooked, and all other manner of bad outcomes occur. That is why it is so important to build a culture by design. Cultures by design contain foundational values that drive organizational behavior toward remarkable outcomes. Cultures by default contain foundational values that drive organizational behavior toward bad outcomes. The key point here is, businesses should choose values and not let values choose them.

Digital Sense Digital Sense provides a complete playbook for organizations seeking a more engaged customer experience strategy. By reorganizing sales and marketing to compete in today’s digital-first, omni-channel environment, an organization can gain newfound talent and knowledge from the resources already at hand. This book provides two pragmatic frameworks for implementing and customizing a new marketing operating system at any size organization, with step-by-step roadmaps for optimizing its customer experience to gain a competitive advantage. The Experience Marketing Framework and the Social Business Strategy Framework break down proven methods for exceeding the expectations customers form throughout the entirety of the buying journey. Customizable for any industry, sector or scale, these frameworks can help an organization leap to the front of the line. Title: Digital Sense: The Common Sense Approach to Effectively Blending Social Business Strategy, Marketing Technology, and Customer Experience Authors: Travis Wright and Chris J. Snook Publisher: Wiley

new values. Ask them to leave the company. Yes, you read that right. One loose cannon on the values ship can scuttle the whole effort. 5. Align all organization policies and practices to support the new values. Make them part of performance appraisals, standards for promotions and compensation increases. Don’t let this become a “check the box to keep human resources happy” exercise. 6. Once the values are firmly entrenched, don’t let anybody in the front door who doesn’t believe in them. Do a “values check” as part of the interview process.

$26

The Power of Positive Destruction It’s no longer good enough to build a company to last; today, it’s about building a company to ignite change. The Power of Positive Destruction reveals how to start a new business, disrupt an industry, and adapt to changing environments by leveraging technology and a new mindset. Serial entrepreneur Seth Merrin has built businesses by seeing issues with the status quo and introducing positive changes that have disrupted — and revolutionized — industries. In this book, he breaks down his process step by step to show how to successfully start a company and transform an industry. With this book, readers will learn to see the inefficiencies, ineptitudes, and everyday problems that others dismiss as the cost of doing business and create “unfair competitive advantages” to stack the deck — and win. Title: The Power of Positive Destruction: How to Turn a Business Idea Into a Revolution Author: Seth Merrin

Pages: 224

Publisher: Wiley

You will likely find that some of your executives won’t go along with the

Pages: 304 Available: 12/27/16

Available: 12/27/16

$29.95

Pivoting Change is a necessary, though sometimes challenging, part of staying relevant, being engaged and seeking ways to flourish in one’s life. Coaching helps individuals develop coherent strategies for their life and work and to tap into their strengths and inspiration. Many people find themselves having to shift or transform their limiting belief systems or habits of mind and behavior to move them toward greater self-direction. The authors set off on a scholar/practitioner journey of research, study and first-hand experience to better comprehend the mystery and wonder of how clients actually make meaningful transitions. Their path of inquiry describes a new science of change about how pivotal moments in coaching occur and what coaches

7. And, finally, this has to be a CEO initiative or it will fail. Think of this as a strategic culture plan, requiring years to execute, not months.  To successfully create a “culture by design,” you must give it the same time, importance, attention and resources as you do your strategic operating plan.

can do to help ignite substantial change. Title: Pivoting: A Coach’s Guide to Igniting Substantial Change Author: Ann L. Clancy and Jacqueline Binkert

Pages: 201

Publisher: Palgrave Macmillan

$34.99

The Harvard Business Review reports that a recent Interact/Harris poll found more than half of respondents said their biggest complaint was that their bosses didn’t have time to meet with them in person (52 percent), while a similar percentage (51 percent) said their bosses refused to speak to them at all. hbr.org

Available: 12/27/16

23 20DEC.1 6 INBUSINESSMAG.COM


INVESTING IN COMMUNITY

Jan

UP NEXT MONTH The Value of Campaigns

GETTING GOOD AT GRATITUDE Gratitude — appreciating the goodness in life — is a virtue that can be cultivated. By anyone. At any age. Consider the following activities that can help boost daily gratitude and enhance health: • List the five things you’re most appreciative of each morning. This daily reminder can provide an optimism boost on even the worst days. • Practice personal, positive affirmations. Affirmations re-wire the brain, raising the level of feel-good hormones and helping maintain positivity to reach goals. Gratitude can grow from achieving desired actions. • Reframe difficult situations. Turn difficult situations into positive experiences by looking at the benefits to be gained. For gratitude journaling tips from gratitudescience expert Robert Eamons, visit bit.ly/tipsgratitude-journal.

Usher Gratitude into the New Year

Thankfulness offers health benefits to board members and the nonprofits they serve by Cassandra Larsen and Deborah Whitehurst

The year is drawing to a close — a time of reflection for individuals and organizations alike. With that reflection often come resolutions: to focus on health, to raise more fundraising dollars, to make a greater impact on the lives of others. But what about “to be more grateful”? It’s not generally at the top of the resolution list. Science, however, is proving that a focus on gratitude could be the answer to improved personal health — and it just might have a trickle-down effect on fundraising success. It’s no surprise that grateful people tend to see the world in a more positive light, noticing and appreciating the good over the bad. Their positivity can ward off depression, lead to better sleep and, simultaneously, reduce anxiety and stress, thus improving overall health. But there’s even more to it than the “grateful = optimistic = healthy” equation. Brain scan studies conducted by researchers at Indiana University illustrate that particular areas of the brain light up when associated with gratitude tasks such as keeping a gratitude diary or writing thank-you letters. Those same areas of gray matter remain active even months after the task is complete, suggesting that, with practice, the mind can become conditioned to experience the enhanced feelings of well-being resulting from gratitude. What’s more, feelings of thankfulness can have a longlasting, spiral effect. When individuals feel more thankful, they more often act with gratitude toward others, causing them gratefulness. So what does gratitude mean to a nonprofit, its board members, its volunteers and its donors? “People who live gratefully feel a greater sense of social responsibility and may be better citizens,” says Jodi Swanson, Ph.D., faculty member in the Sanford School of Social and Family Dynamics at Arizona

Thankfulness: A Year-Round Goal To keep their nonprofits grateful year-round, board members can: • Instill hope and optimism whenever possible. “Whether discussing new projects, new directions, or even hashing through lessons learned from mistakes, optimism builds a gratitude-rich

Cassandra Larsen, Of Counsel, and Deborah Whitehurst, senior consultant, work with The Phoenix Philanthropy Group, an Arizona-based international consulting firm serving nonprofit organizations as well as institutional and individual philanthropists. phoenixphilanthropy.com

DEC. 20 1 6

24

INBUSINESSMAG.COM

State University. “They feel more of a sense of connection with others and operate with a clearer purpose in life and a healthy sense of independence.” Organizations that are immersed in a constant state of thankfulness — and are governed by independent, socially motivated, grateful leaders — are, therefore, at an advantage over competitors. They’re more connected, positive and productive. “Gratitude releases dopamine in the brain, which promotes a sense of wellbeing, optimism and physical health,” says Swanson. “In a nonprofit, these might translate to increased productivity, decision-making skills and problem-solving acuity.” Grateful board members, then, bolster not only their own health, but the health of the nonprofits they serve. Why not start a new year’s tradition and add “gratitude” to the resolution list?

recipient feel good. Happy, acknowledged donors give again and feel a heightened connection to the nonprofit. • Listen with an open mind. To express gratefulness

environment and social space, given that gratitude can be defined

means respecting others’ opinions. Leaders who thank volunteers

as a worldview, a lifestyle or a way of operating,” says Swanson.

or employees, but fail to consider their feedback, are seen as

• Emphasize and participate in employee recognition. “Regularly recognizing and appreciating all that employees and

disingenuous. • Jot notes in a gratitude journal one to two times per

volunteers do can result in increased engagement, motivation

week. Journals offer an opportunity for reflection and help

and retention, as well as enhanced workplace relationships,”

maintain greater optimism about the future. “Self-reflection helps

says Swanson. And personalize those grateful gestures: Would

individuals make meaning of their experiences and helps solidify

the employee most appreciate a handwritten note of gratitude,

events, people and places into useful tools for personal growth,”

a personal visit or acknowledgement in a public setting? Leaders

says Swanson. Entries can be brief and range widely — from “a

who express and value gratitude often inspire similar virtues

good cup of coffee this morning” to “a nice compliment from a co-

throughout the organization.

worker” to more substantial and overarching, such as “sharing time

• Hand-write donor thank-you notes. This time-honored act of expressing gratitude makes both the thank-you writer and

with friends.” The idea is to compile visual reminders of things to be thankful for.

Gratitude is good for the heart. Paul Mills, professor of family medicine and public health at the University of California San Diego School of Medicine, studied patients with heart damage and discovered those who kept daily gratitude journals experienced decreased inflammation and improved heart rhythm.


DECEMBER 2016

Arizona Technology Council and Arizona Cyber Threat Response Alliance/Arizona InfraGard

Cybersecurity Lunch Forum

Join the Arizona Technology Council and Ryley Carlock

Thurs., for Dec. 15educational | 11:30a – 2:00p & Applewhite this forum that will provide SAVE THE DATE

Attending State Legislators: (top: Rep. Heather Carter, Rep. Reginald Bolding; bottom: Rep. T.J. Shope, Senator Bob Worsley)

Greater Phoenix Chamber of Commerce

The Arizona Technology Council and Arizona Cyber Threat

actionable solutions for protecting your intellectual Upcoming and notable Response Alliance/Arizona InfraGard present the Cybersecurity

Lifecycle Marketing: Lunch Forum to inform government and business leaders about the property and customer data. How to Automate and threats, vulnerabilities and consequences related to data security Dominate Your Market and privacy matters.  Wed., Jan. 4 Jan. The program, geared to provide actionable solutions, will be Presented by:: Attendees to this presented by numerous real-world practitioners, who will discuss Thursday, December 15, 2016 eWomenNetwork their available resources and experiences to help businesses 11:30am -protect 2:00pm event will discover how to their intellectual property and customer data. make automation a reality Keynote speaker will be Luke Dembosky, speaking on “Sharing in their business, so they Platforms in the Era of Escalating Cyber Threats and Stricter Event Partners: can have a business that The Greater Phoenix Chamber of Commerce presents Privacy Rules: What it Means for Defending Your Data.” Dembosky, ASU SkySong evolves around their life. this event for all companies to learn how to effectively Arizona Cyber Threat Response Alliance (ACTRA) a partner with Debevoise & Plimpton and a veteran cybersecurity ewonemnetwork.com work with legislators. Attendees will be presented 1365 North Scottsdale Road Arizona InfraGardin attorney, brings to the topic an illustrious background tips from chamber leaders and directly from state Scottsdale, Arizona 85257 2017 Phoenix Golf investigating and prosecuting hacking cases for the Justice leaders themselves. They will also provide a toolkit for Tournament Department, along with a tenure as a diplomat with the DOJ attendees to take back to their business. Wed., Jan. 18 Jan. Register in advance and find outissues about sponsorship aztechcouncil.org/cyberlunch. addressing cyber with Russiaopportunities and China. at His presentation The event includes a roundtable discussion, giving Join the business will focus on CISA, the ISAO initiative, a new federal cyber attendees the opportunity to engage with the state’s and technology center, and a range of other new sharing platforms that provide decision makers before the start of the 2017 legislative community at beautiful opportunities (and raise some questions) in the fight against session and question lawmakers regarding key business Troon North Golf Club in national security and criminal threats that are increasing in volume Scottsdale for the Arizona community topics. Lawmakers will speak on topics that and complexity. He will address whether these new structures Technology Council’s eight include economic development, education, the state are likely to make any differences and what gaps may remain, and annual Phoenix Golf budget, and transportation and infrastructure. offer his insights on legal and policy issues involved for companies Tournament. As an extra attraction following the discussion, as they think about how to devote their limited resources in this aztechcouncil.org the chamber will lead a tour of the Arizona Capitol for evolving area.  interested attendees to see how the process works, and Guest Editor Economic The event’s panel discussion will be “Practitioners’ Practical Symposium learn more of the state’s history. —Mike Hunter Considerations for Proactive Threat Intelligence Information Thurs., Jan. 19 Jan. Exchange.” ACTRA President and CEO Frank J. Grimmelmann Members: $20; non-members: $30 In Business will moderate. Panel participants will be Mike Lettman, chief Arizona State Capitol State Senate Magazine information security officer for the State of Arizona; Andrew presents an impressive 1700 W. Adams St., Phoenix Roberts, director of IT Compliance & Risk Management, Information panel of former Guest phoenixchamber.com Technology Services at Grand Canyon University; and Edward Editors from more Vasko, CEO of Terra Verde. —Mike Hunter than 70 issues of the

Capitol Conversations – A Morning with State Legislators

4

Thurs., Dec. 8 | 8:30a – 10:30a

18

19

Members: $35; non-members: $50 ASU SkySong – Building 3 1365 N. Scottsdale Rd., Scottsdale

DECEMBER 2016

aztechcouncil.org

S M T W T F S

publication who are invited to talk about the local economy, workforce and education, and share their insight into the future. inbusinessmag.com

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

DECEMBER 2016 NOTABLE DATES

Wed., Dec. 7 — Pearl Harbor Remembrance 18 19 20 21 22 23 24 Sat., Dec. 10 — Human Rights Day 25 26 27 28 29 30 31 Wed., Dec. 21 — Winter Solstice

Fri., Dec. 24 – Sun., Jan. 1, 2017 — Hanukkah Sun., Dec. 25 — Christmas Day Sat., Dec 31 — New Year’s Eve

25 20DEC.1 6 INBUSINESSMAG.COM


DECEMBER 2016 Sat., Dec. 3

5:00p – 11:00p

Winter Gala, 13th Annual Business Awards Anthem Area Chamber of Commerce Traditionally, this event was a somewhat casual after-work affair, but that will all change this year as the chamber holds its first Winter Gala in the Ironwood Ballroom. Members: $75; non-members: $100

Mon., Dec. 5

Anthem Golf & Country Club – Ironwood Ballroom

53rd Annual ASU/JPMorgan Chase Economic Forecast Luncheon

41551 N. Anthem Hills Dr., Anthem anthemareachamber.org

11:15a – 1:15p

Economic Club of Phoenix Thurs., Dec. 1

Sat., Dec. 3

1:00p – 6:30p

6:00p – 9:00p

BioAccel Solutions Challenge

8th Annual Festival of the Trees

Arizona Commerce Authority

Phoenix Gay Chamber of Commerce

The Solutions Challenge is an annual competition designed to better align market need with innovation and early investment to stimulate company formation in novel medical technology. The program researches areas of critical healthcare and market need, then challenges entrepreneurs to create innovative solutions to address them. Selected finalists must convince at least one “Scorpion Pit” investor to provide up to $50,000 in private funding that BioAccel will match in additional financial support. Successful groups then have up to $100,000 in proof-of-concept dollars to advance the technology that addresses the healthcare challenge. 

Festival of Trees has become the Valley’s premiere kick-off for the holiday season, featuring opportunities to win holiday trees, wreaths and menorahs exquisitely decorated and delivered to your door. GPGLCC’s Festival of Trees has selected GLSEN Phoenix as beneficiary as part of its mission for community outreach. The event features complimentary light hors d’oeuvres, cash bar, holiday music, silent auction, raffle and live auction trees, raffle wreaths and menorahs, and a grand prize travel tree (airfare & hotel).

$350

$35

Phoenix Theatre

100 E. McDowell Rd., Phoenix

215 N. 7th St., Phoenix

festivaloftreesphoenix.org

1

$100 Phoenix Convention Center – North Hall

Children’s Museum of Phoenix

azcommerce.com

Outlook for the U.S. Economy will be presented by James Bullard, president and CEO of Federal Reserve Bank of St. Louis. Outlook for the Financial Sector will be pesented by Anthony Chan, chief economist of Chase. Outlook for the Metro and Regional Economy will be presented by Lee McPheters, research professor of economics and director of the JPMorgan Chase Economic Outlook Center at W. P. Carey School of Business.

100 N. 3rd St., Phoenix wpcarey.asu.edu

3 Sat., Dec. 3

5 Tues., Dec. 6

6:00p – 11:00p

2nd Annual Patriots Ball Southwest Veterans Chamber of Commerce

Thurs., Dec. 1

5:30p – 7:00p

‘Collaborative Communities’ – a GEM Talk Gilbert Chamber of Commerce Designed for the millennial entrepreneur, these events presented by the Small Business Council are patterned after “TED talks” and are called “GEM Talks” — Gilbert, Entrepreneurial, Motivational. Each GEM Talk will feature an interactive session with a successful and motivational entrepreneur who will share his/her success story and provide insightful tips on how others can succeed in business and life.

The Southwest Veterans Foundation and Chamber of Commerce Patriots Ball brings together veteran- and patriot-owned businesses, veterans support groups, and business and civic leaders to Celebrate Our Veterans. Event proceeds fund chamber member programs, scholarships and veterans support programs in the Phoenix area. The Patriots Ball will include award presentations to the Corporate Partner of the Year – The Patriots Shield Award. Event will recognize the Veterans Advocate of the Year with The Lincoln Award. $100 DoubleTree Resort

5401 N. Scottsdale Rd., Scottsdale

southwestveteranschamber.com

6

7:30a – 9:00a

Good Government Roundtable with Maricopa County Supervisors Gilbert Chamber of Commerce An event of SRP’s Good Government series, this roundtable meeting will bring county leaders together with the business community for a discussion on the latest local, regional and national issues. Members: $15; non-members: $20 Gilbert Chamber of Commerce

119 N. Gilbert Rd., Gilbert

gilbertaz.com Tues., Dec. 6

11:30a – 1:00p

Lunch and Learn Arizona Technology Council

STAX 3D Printing

“So You Want to Sell Software? Four Secrets of Successful Software Producers” is aimed at software-focused startups, established software firms aiming to grow revenues, and device manufacturers who has discovered the many advantages of shifting business to a softwaredriven business model, to help them identify strategies and insights for running and growing the software business. The presenters will share software monetization best practices and approaches, applied by many leading software/device suppliers.

1497 E. Baseline Rd., Gilbert

Members: free; non-members: $15

gilbertaz.com

AppointmentPlus

$15; at the door: $20

DEC. 20 1 6

26

INBUSINESSMAG.COM

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

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

15300 N. 90th St., Scottsdale

aztechcouncil.org


Tues., Dec. 6

Wed., Dec. 14

4:30p – 7:30p

Annual Red Affair Luncheon

Invest Southwest

National Association of Women Business Owners – Phoenix

VCs Unplugged is designed for entrepreneurs, service providers, angel investors and investors to have an opportunity to meet out-of-state venture capitalists and engage in informal conversations about funding opportunities within our region. The event will include a panel of seasoned venture capitalists, and Rocky Mountain Venture Capital Association members who are actively investing in the region.

This year, NAWBO Phoenix is supporting Singleton Moms. Attendees are asked to bring pajamas for an adult (male or female) and/or a child. Speaker is Jill Kimmel. Event includes raffles and a silent auction. Attendees are reminded to wear their favorite red outfit.

$50 Mod

2828 N. Central Ave., Phoenix

Wed., Dec. 14

iInvestsouthwest.org

Wed., Dec. 7

11:30a – 1:30p

Members: $55; non-members: $65

Waste Management Phoenix Open Tee-Off Luncheon

9:00a – 5:00p

Scottsdale Hilton Resort 6333 N. Scottsdale Rd., Scottsdale

Greater Phoenix Chamber of Commerce

CSA Southwest Summit 2016 Cloud Security Alliance The Cloud Security Alliance, the world’s leading organization dedicated to defining and raising awareness of best practices to help ensure a secure cloud computing environment, harnesses the subject matter expertise of industry practitioners, associations, governments, and its corporate and individual members to offer cloud security-specific research, education, certification, events and products to benefit the entire community impacted by cloud. $50

nawbophx.org

The Tee-Off Luncheon signifies the kickoff to the Waste Management Phoenix Open presented by the Ak-Chin Indian Community, where many exciting things will be announced for the 2017 tournament. The Waste Management Phoenix Open, known as “The Greatest and Greenest Show on Grass,” is the best-attended golf tournament in the world and has gained legendary status for being the most unique stop on the PGA TOUR. $150 The Phoenician

Pointe Hilton Tapatio Cliffs Resort

11111 N. 7th St., Phoenix

6000 E. Camelback Rd., Scottsdale

cloudsecurityalliance.org 6

11:00a – 1:00p

Improving Investability Workshop: VCs Unplugged!

7

phoenixchamber.com

9

10 Sat., Dec. 10

Fri., Dec. 9

11:00a – 1:30p

47th Annual Luncheon Arizona Forward “Arizona Vets to the Rescue, Mission: Disaster Relief & A New Purpose.” Event will celebrate the organization’s history of environmental stewardship. Leadership Awards will be presented to those who have made significant contributions to the organization, and founding members of Arizona Forward will be commemorated. After fighting overseas, 92 percent of American Veterans say they want to continue their service. Meanwhile, one after another, natural disasters continue to wreak havoc worldwide. Team Rubicon is a nationwide nonprofit that provides military veterans with the opportunity to continue their service by responding to natural disasters and global crises.

14 6:00p – 11:00p

Thurs., Dec. 15

15 11:00a – 1:00p

Banner Bon Santé Ball 2016

AZBio Trailblazers 2016

Banner Health Foundation

Arizona BioIndustry Association

Banner Bon Santé Ball celebrates medical education and clinical excellence at Banner Health and its Banner – University Medicine division (Phoenix and Tucson), and brings together physicians, academics, medical professionals of all disciplines, Banner leaders, corporate partners, philanthropists and stakeholders throughout Arizona. Cocktails, dinner, dancing — and an exclusive appearance by Dr. Bennet Omalu, the reallife doctor portrayed in the popular film Concussion.

Event honors members of the Arizona Legislature and state and local elected officials who have made it possible for the Arizona Bioscience Industry to gain national recognition, build capital infrastructure, and take its place as a leader in both scientific discovery and job growth. Members: $75; non-members: $100 Phoenix Country Club

2901 N. 7th St., Phoenix

azbio.org

$500 The Phoenician, a Luxury Collection Resort, Scottsdale

Tues., Dec. 20

6000 E. Camelback Rd., Scottsdale

Women in Business Luncheon

bannerhealth.com/calendar/bon-sante-ball

Chandler Chamber of Commerce

10:30a – 1:30p

In this month of giving and giving back, learn how business and community can work together for a greater good. This month’s program is a panel discussion on how working with nonprofits is a win-win situation, with speakers from Alliance Bank, ICAN and Pay Your Family First.

Members: $90; non-members: $110

Members: $30; non-members: $40

Arizona Biltmore

SoHo63

arizonaforward.org

2400 E. Missouri Ave., Phoenix

20

63 E. Boston St., Chandler

chandlerchamber.com

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

27 20DEC.1 6 INBUSINESSMAG.COM


OUR SUBJECT IN-DEPTH

Loving Well, Sans Weirdness It’s all about authentic by Jonathan Cottrell

While integrating love in business may sound nice as a theory, the real question is how to do it without it getting … weird. Of course, like anything in life, love can be a bit messy. But, for the sake of everyone, it doesn’t have to be mushy. Loving well and fostering such a unique culture is helped by these simple steps.

BUILD AUTHENTIC RELATIONSHIP

“I love you” are words that have the power to move businesses forward as team members build authentic relationships — and cultures. Managers and co-workers can set the ball in motion with a simple question, like, “What’s going on in your life outside of work?”

A serial starter, community builder, and self-proclaimed cranial nudist, Jonathan Cottrell serves entrepreneurs and their communities in Love as the chief entrepreneur officer of Hopscratch and early instigator behind local movements like #yesphx and PHX Startup Week. hopscratch.com.

DEC. 20 1 6

28

INBUSINESSMAG.COM

It all starts with relationship. Before a business owner or manager starts throwing the “L” word around all willynilly, it’s important to sit down with team members and be authentic, perhaps even brutally honest. The best way to cultivate authenticity from others, of course, is by leading with authenticity. Take charge by getting personal with stories about past struggles, opening up about family matters, and sharing interests outside of work. These types of conversations carry real power to start business owners and team members on the path toward knowing one another on a deeper level. It’s impossible to build a culture of love within business without a culture of authentic relationship.

SHOW TRUE CARE

Once a tone is established, it’s important that a leader keep consistent in showing her care for team members. Whether needing to write post-it note reminders or use task management software to follow up later, keep asking colleagues how things are going outside of work. If a coworker shares that her daughter was injured, show up with a get-well-soon basket. If an employee got married last year, ask him about their first year of marriage and what they have planned for their upcoming anniversary. If a difficult colleague likes Rihanna, buy him tickets. In short, a business leader needs to prove that she’s truly listening to people as they share what matters in their world.

NOTHING IS OFF LIMITS

Of course, there will come a time after building trust with team members that it becomes hard to love them. It’s

wonderful when talking about or dealing with the happy stuff, but what matters more is how a business owner treats a partner after he throws her under the bus, when a customer gets angry, once a top manager resigns, or as an employee says that he needs money in advance of payday. What she does to show love in the annoying, challenging, grit-her-teeth moments is what matters more than when it’s easy. In fact, this is when love is truly proven, not just preached.

SAY THE WORDS

It’s happening. By this point, a business owner has built trust, relationships and patterns within the walls of her office. Now, there’s no reason to hold back what she’s already proven by her actions. “I love you.” Say it. Niceties like “Good seeing you” or “Talk to you soon” are no longer required once true intent has been established. By this point, a business leader should easily be able to stop with the handshakes and start with the hugs, because nothing says love like a friendly embrace.

TALK ABOUT IT

As a leader establishes a culture of love within business, it’s essential to talk about it openly. How does that make people feel? Does the word alone make others uncomfortable? What does love look like in a business environment without it crossing the bounds of weirdness for everyone? These are important questions to ask, and they should be safe to ask. When aiming to build a culture that prioritizes love first within the organization, wherever that leader is within the ranks of the org chart, there is one key rule that must be understood: Lead first.

Love in Business: A Three-Part Series The Integration of Love and Business (Dec. 2016) Loving Well, Sans Weirdness (Dec. 2016) Quantifying Love in Business (Jan. 2017)

When looking at the facts, it’s clear that love can make a significant impact on business productivity and profits. Ninetythree percent of employees who feel valued at work say they are motivated to do their best work, while $11,000,000,000 is lost annually due to employee turnover. And what’s the top reason employees leave? Because, they say, “My boss is a jerk.” 


BY MIKE HUNTER

WE VALUE WHAT WE OWN

2017 Audi A7

Audi’s A7 has become art on the road. Mercedes CLS, BMW’s 6 series coups and the Porsche Panamara are all winners, and, while they are all priced higher than the A7, this strikingly noticeable Audi has become a true contender thanks to a better EPA rating and a smaller engine that boasts great power and performance. Powered by a 3.0-liter V6 TFSI engine that produces only 333 horsepower and 325 pound-feet of torque, this sporty sedan does move. The Audi TFSI engine combines direct injection with forced induction supercharging or turbocharging. Having produced an eight-speed automatic transmission and technologies that give this engine the feel of a much more powerful engine, engineers at Audi gloat over the 21 mpg city and 29 mpg highway.

Audi is known for its eye-opening design and its German engineering that combines both performance and esthetic. The new Audi A7 has a muscular stance and curves that one may expect in a hatchback sports vehicle. The rear hatchback is sleek enough (although some interior headroom was compromised) and is large enough in the truck area to handle luggage and cargo that can be easily transferred. The back seats lower to allow for more room. Rear seating consists of just two bucket seats rather than the usual bench seat. The interior is a masterpiece, with very functional electronics and a sound system that makes it almost a disappointment to arrive at destination. The Audi MMI® Radio, with 10 speakers and single CD player with MP3 playback capability, incorporates sound throughout the cabin and is integrated with the navigation and communications systems. The ride is smooth, with all seats made of leather and the interior surrounding passengers with available wood trim. In front, the heated seats offer eight-way power adjustment and four-way power lumbar adjustment. It is true Audi performance in a useful sporty sedan.

2017 AUDI A7 City: 21 Hwy: 29 0-60 mph: 5.2 seconds Transmission: 8-Speed

Audi audiusa.com

MSRP: $68,800

It’s Yours; Put Your Name on It Initializing one’s assets is in. Whether it’s initials on the cuff of a dress shirt, name engraved on a pen or a personalized license plate, it’s a way to say, “This is who I am.”

Arizona Department of Transportation

Moda Giorgio

Things Remembered

Nick Esposito is likely the only man in town

This retailer of personalized gifts

With more than 50 license plates to choose

whose work has been in the boardroom of

includes everything for the executive,

from, Arizona offers options to personalize

every company in town. This exclusive custom-

from executive desk sets to pens and

one’s plates or the plates of one’s company

tailoring clothier has been in the Biltmore

frames. Things Remembered will

fleet of vehicles. Login and use the tool

area for years, providing monogrammed

label, engrave quotes and phrases or

to chose the plate style (everything from

custom dress shirts and other accessories that

put one’s name on just about any item

sports teams to specialized organizations)

underscore one’s personal style.

ordered from their shops or online, or

and test up to a seven-letter combination

3168 E. Camelback Rd., Phoenix

on one’s personal items.

(602) 955-2003

In Valley malls

modageorgio.com

thingsremembered.com

to check availability.

Photos courtesy of Audi (top)

azdot.gov/mvd/vehicle/mvdplate.asp

Audi’s recognizable emblem of four rings in a chain was designed to signify the four previously independent motor-vehicle manufacturers — Audi, DKW, Horch and Wanderer — that consolidated as Audi AG in 1932.

29 20DEC.1 6 INBUSINESSMAG.COM


BY MIKE HUNTER

MEALS THAT MATTER

T. Cook’s: Savory Seasonal Mediterranean Piquillo pepper, haricot vert, Kalamata olive, lemon aioli, black garlic $12

PAN ROASTED BRANZINO Shishito peppers, stewed tomato, fingerling potatoes, Kalamata olive aioli $28

tomato, blue cheese, bacon, egg and buttermilk herb dressing. Seasonally special entrées include Pan Roasted Branzino served with shishito peppers, stewed tomatoes, fingerling potatoes and Kalamata olive aioli, and Wild Arugula and Truffle Tremor Ravioli served with black Tuscan kale, celery root, eggplant and Romesco sauce. Lunch is a perfect time of day to enjoy one’s repast on the vine-shrouded patio. Locals who may harbor a concern that the beloved Spanish Revival architecture and countryside villa atmosphere might have suffered some corporate interference since the boutique inn was taken over earlier this year by Hyatt can relax. Staff relates that corporate management is well aware of the gem they now are responsible for and have been clear about their intent to make no changes to the property. T. Cook’s 5200 E. Camelback Rd., Phoenix (602) 808-0766 royalpalmshotel.com/dining

Mall Meals Taking time out of the day for serious shopping or a mad dash to that all-important retailer doesn’t have be accompanied by a rushed fast-food lunch at the food court. There are options that provide a worthy menu, attentive service, and a comfortable place to meet and talk turkey with a client or colleague.

DEC. 20 1 6

30

INBUSINESSMAG.COM

1130 the Restaurant

True Food Kitchen

Zinc Bistro

A longtime downtown standard, 1130’s

Menu celebrates healthy

French café offering — take your

menu encompasses some American

eating, with a wide selection

pick — that great sidewalk-café

favorites with a bend toward the

of vegan, vegetarian and

experience or a view of the Eiffel

Italian. Great service and a comfortable

gluten-free options.

Tower (lighted model on display in

atmosphere inside and out.

Biltmore Fashion Park

the main dining room).

Arizona Center

2502 E. Camelback Rd.,

Kierland Commons

455 N. 3rd St., Phoenix

Phoenix

15034 N. Scottsdale Rd., Scottsdale

(602) 368-3046

(602) 774-3488

(480) 603-0922

1130therestaurant.com

truefoodkitchen.com

zincbistroaz.com

The Royal Palms was originally built as a private estate for Delos and Florence Cooke in the 1920s, and has been an inn for tourists since 1948. The restaurant has been open as T. Cook’s only since the hotel’s remodel in 1997 — to honor the (untrue but popular) local myth that Delos Cooke was related to the Thomas Cook travel agency family of Great Britain.

Photos courtesy of T. Cook’s (top), 1130 The Restaurant, True Food Kitchen, Zinc Bistro (bottom, l to r)

ROASTED SPANISH OCTOPUS

A drive through the entry gates to the exclusive Royal Palms resort leaves Arizona a departing memory as the lush Mediterranean landscaping envelopes the visitor’s senses. Chef Todd Allison’s menu at T. Cook’s perfectly complements the setting. Popular as a romantic getaway for dinner and drinks, the restaurant is a delightful hideaway for lunch, offering award-winning seasonal creations made with skill and a dedication to authentic ingredients. Says Chef Allison, “For me, it’s about authentic, not trendy. Everything on the fall menu is brand-new, and right now I’m exploring Portugal.” An order of the garlic-and-white-wine-braised Saltspring Black Mussels is a good choice to start with. A slight tang from the resno chiles (but care should be taken not to bite into one directly) is in perfect proportion to the garlic. There’s plenty for two people to share. A salad to follow will complete a lighter lunch, with choices that include Pickled Beets and Baby Lolla Rosa made with toasted pine nuts, Crow’s Dairy goat cheese and Banyuls vinaigrette, and the Tossed Cobb made with chopped romaine, watercress, grilled chicken, olives,


Celebrating 30 years of serving the women business owners of Phoenix

Winter 2016 • nawbophx.org

#NAWBOFirst

So far, this year has been full of great community building, creating alliances and forming new partnerships. I am thrilled to be a part of this growing organization and witnessing, first hand, the impact it has on our membership. Let me share with you a few exciting announcements! First, get your calendar out and reserve this time in your schedule because you won’t want to miss it: October 15 – 17, 2017. These are the dates of the National Women’s Business Conference being held in Minneapolis next year, and, if you are a woman-owned business or want to better connect or support women in business, YOU WILL WANT TO ATTEND. This year, like most, I came away from the conference with what we call a “NAWBO conference high.” It feels as if I can conquer any challenge and I know that the work I’m doing is making a difference. After attending for the past three years, there are many pieces that I love: the leadership development opportunities, breakout classes that speak to growing my own business, the amazing keynote speakers, hearing stories from founding members and reuniting with friends I’ve made along the way, but most of all, the inspiration I receive from other business owners who are going through what I’m going through. However, I came away this year with more inspiration than usual — I swear it just keeps getting better and better every year I attend. The beautiful thing about NAWBO is that we are the NATIONAL Association of Women Business Owners, which means we are so much bigger than our incredible local chapter! For example, at the National level, NAWBO has just released the new NAWBO Institute for Entrepreneurial Development, a 501(c)3 non-profit educational foundation that seeks to provide opportunities for capacity building and organizational development for emerging and established women entrepreneurs. Through the Institute, NAWBO aims to strengthen the wealth-creating capacity of women business owners and to promote economic development within the entrepreneurial community so that we can build a legacy of success for the next generation of women entrepreneurs. Go to www.nawbo.org/about/institute to learn more. The power of our national organization is getting even stronger. National NAWBO has recently started a new countrywide program designed specifically for our Premier members who own businesses that exceed $1 million in annual revenue. It is appropriately named “The Circle,” and our very own Lynda Bishop will participate as the program director. It’s an exciting time to be a NAWBO member and this new program will fill a need by offering deeper support through providing our members with peer and business connections, access, and learning opportunities above and beyond their actual membership. This will come in the form of mastermind groups, two-day retreats each year, a speakers’ bureau, and much more. Go to www.nawbo.org/about/institute/nawbo-circle to learn more. And finally, in Phoenix, we’re working on a program for women who are striving for that first $1 million in revenue. We understand how difficult it can be to achieve that hurdle, as does Susan Brooks, founder of Cookies from Home and founding member of NAWBO Phoenix. She will oversee this future program, which you will soon find on our website www.nawbophx.org. We know that no one succeeds alone — and NAWBO offers the means for women business owners to contribute to the success of others. Won’t you join us? You’ll be surrounded by some of the most ambitious, collaborative women business owners in the Valley who will inspire you every day to reach your fullest potential. Please visit our website or contact our office for more details!

Phaedra Earhart 2016-2017 President NAWBO Phoenix Chapter Farmers Insurance 1425 S. Higley Road, Suite 107 Gilbert, AZ 85296 480-289-5768 phaedra.earhart@gmail.com Years in Business: 6 Joined NAWBO: 2011

ABOUT NAWBO

—Phaedra Earhart, 2016 – 2017 President NAWBO Phoenix NAWBO® prides itself on being a global beacon for influence, ingenuity and action and is uniquely positioned to provide incisive commentary on issues of importance to women business owners. NAWBO Phoenix propels women entrepreneurs into economic, social and political spheres of power.

nawbophx.org

We host networking and education events throughout the valley each month, open to both members and guests. Check out our calendar at NAWBOphx.org and join us! Take advantage of this great networking opportunity by bringing business cards and making connections.

For more information, please visit NAWBOphx.org.

Phoenix Metropolitan Chapter of the National Association of Women Business Owners 7949 E Acoma Dr., #207, Scottsdale, Arizona 85260 480-289-5768 • info@NAWBOphx.org

1

NAWBO NEWS


Why Is Sharing on Social Media Important? by Tracie Rollins

The majority of savvy businesses today recognize the importance of sharing on social media for growth. When you consider that approximately 35 percent of millennials say that social media is one of their preferred avenues for communicating with businesses, it only makes sense that it will continue to grow. That said, many businesses don’t know how to use social media to engage audiences to help boost profits. One of the easiest ways to get started is by sharing articles, videos and memes on social media. You don’t have to write and produce the content; you just have to find it and share it in a way that adds value to your social media connections.

2

NAWBO NEWS

What Is Sharing?

“Sharing” on social media is the practice of sharing content from a website or a blog on a social media platform, and it has transformed the media industry. Social sharing builds consumer loyalty by demonstrating your knowledge and authority (even without having to write a blog), generates high exposure of your brand and can even improve your organic search engine results. Most importantly, sharing will improve a brand’s reach (the more people engage with your posts, the more they and others will see them), increasing the likelihood of gaining new connections and followers of your brand.


The good news is that, when it’s done effectively, you don’t have to spend hours writing content that drives more traffic. For example, when I share articles on behalf of my clients, I display a banner while the customer is reading that article, directing them back to the client’s website. This helps my clients get more leads, build trust and close sales.

approximately 34 gigabytes of content and 100,000 words of information in a single day. This indicates that the biggest challenge of productive sharing is to be certain that what you post and share is better than what your competitors do. It’s also important to consider whether or not your network appreciates it, hopefully going so far as being excited about it.

How and What Do You Share on Social Media?

Best Times/Days to Share

The average social media marketer maintains five different accounts, but that’s not necessarily what all businesses should do. Generally, businesses should share their content on the social sites that their target audience seems to prefer. Whether it’s Facebook, Twitter, LinkedIn, Google+, etc., spend some time researching the demographics of the different social platforms to make this important decision. Sharing is fairly easy and varies depending on whether you’re posting and sharing or just sharing. It also depends on whether you’re sharing a video or a headline with a link, or if you’re adding photos. For a basic share on Facebook, click the “Share” link on the website blog post and choose a share option from the dropdown menu. Then, you can choose where you want to share, whether it’s on your own timeline, in a group, on a friend’s timeline or in a private message. Instructions are subject to change, so always check out the social media site’s help pages for up-to-date assistance. Alternatively, simply paste the website link into your Facebook post and add your commentary.

Thanks to the increase of paid social media advertising, it’s no surprise that achieving organic reach has grown to be more challenging for brands. That said, you can still get the most out of your organic posts if you share them at optimum times, which tends to vary by platform. For instance, the best time to share on Facebook is between 1 and 4 p.m. on any day; on LinkedIn, Tuesday through Thursday before or after work; on Pinterest, Saturday mornings; on Twitter, Mondays through Thursdays; and on Google+, between 9 and 10 a.m. any day. The best date or timing for shares isn’t set in stone so it’s a good idea to test it out yourself, posting different times of the day, an hour or two apart, and paying close attention to how many clicks each post and share gets. The best time to share on social media is when your customers are on it. Experiment and don’t be afraid to publish. Over time, you’ll find the perfect cadence for your business.

Knowing What to Share

We’re constantly bombarded with a lot of material to read, watch, see and contemplate every day. The average American actually consumes

Tracie Rollins is the chief content officer for Socially Posted, a division of The Rollins Advantage, a Phoenixbased content marketing agency. To learn more about our low-cost, high-value social media services, visit: www.SociallyPosted.com.

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

nawbophx.org

3

NAWBO NEWS


How Paying Employees More Can Increase Your Profits by Cindy Gordon

Many small-business owners are concerned about the changes to the overtime rules that come into effect this December. Currently, employees who make an annual salary of less than $23,600 are eligible to be paid overtime if they work more than 40 hours a week. Beginning in December, the annual salary threshold increases to $47,476 — impacting the earnings of upward of 90,000 additional employees in Arizona. Small-business owners are understandably concerned about the additional cost’s impact on their bottom line. However, they don’t realize how paying employees well can help to improve their profitability. According to the Economic Policy Institute Family Budget Calculator (bit.ly/epi-family-budget), the annual income needed to attain a modest yet adequate standard of living in Phoenix for a family of one adult and one child is approximately $48,000. If a single parent is struggling to make ends meet, their attitude and motivation will be negatively impacted. This will inevitably affect how they interact with others (e.g., co-workers and customers), which, in turn, affects the profits of the company.

Employee Attitude

Imagine working 50-plus hours a week and earning $30,000. By the time you get home from work, you have little time to spend with your family. You’re tired and stressed about money. The gratitude you initially had for being hired quickly slips into bitterness for having to work so many hours for so little pay. This affects your attitude, which ripples into how you deal with others. Your attitude could ultimately get your fired or lead to co-workings looking for a new place to work. The cost of employee turnover is real — and significant. It can run anywhere from 50–150 percent of the employee’s salary. This includes hard costs like advertising and recruiting and training time, as well as intangible costs such as the impact on the staff morale and productivity.

The cost of hiring a replacement for an employee earning $30,000 could be at least $15,000. 4

NAWBO NEWS


Employee Motivation

If you were asked to work excessive hours for low pay, would you feel motivated to do great work? Would you feel proud to be an employee or be excited to make the company look good to their customers? I probably wouldn’t. I would probably be looking at the clock a lot, waiting for the day to end, thinking about all the personal things not getting done, and counting down to my next paycheck. (I hope this isn’t making you think of certain employees!) The motivation levels of employees are real costs to a company. Unmotivated people put in about 50–75 percent of the effort that happy and motivated people do — therefore, it will take more man-hours to get the work done.

Low motivation of an employee being paid $30,000 could cost at least $15,000 of lost labor productivity. Customer Satisfaction

Have you ever dealt with a company’s employee who was obviously unhappy at work? I think we all have. It can be a frustrating and sometimes unbearable experience. It’s an experience that makes you think twice about doing business with the company again and guarantees you won’t refer them to others. This directly impacts the growth of the company. I have not been able to find data on what percentage of customers are lost due to poor customer experience. However, research shows that it costs six times more to generate new business through regular marketing

nawbophx.org

initiatives than through referrals. Small-business pays, on average, $500 to $3,000 per month in marketing. Revenue growth through referrals would reduce marketing costs significantly.

Annual savings on marketing could be as much as $30,000 per year through referral business growth. When considering what to pay employees, business owners need to look at all the factors that may impact their profits. It’s time to look beyond the numbers of the salary payments and look at all the other factors that come into play when people are paid poorly. It has been proved that the benefits which come from good salaries far, far outweigh the expense. This is a fact that you only learn in the school of hard knocks!

Cindy Gordon is the founder of Business Rescue Coaching, a coaching service boutique that provides a unique experience to small-business owners who feel they are not in control of their business. Cindy helps to build strong systems, processes and strategies that lead to higher profits, more cash in the bank and more autonomous employees. Her clients feel less stress while achieving more success. Contact Cindy at (602) 423-7670 or cindy@businessrescuecoaching.com. www.businessrescuecoaching.com

5

NAWBO NEWS


Options for Owning a Part of the Valley of the Sun by Jan Green, Realtor

Arizona is a beautiful place to live and work, but it’s also a great place to visit. Arizona is a top winter destination for many who live in cooler climates, like our northern friends. Arizona is also a great summer destination thanks to lower prices for hotels, golf courses and other tourist attractions. Several new attractions have opened recently. The OdySea Aquarium, Butterfly Wonderland and Top Golf, to name a few. But it might be difficult to tell the difference between tourists and locals as we’re all in shorts and T-shirts enjoying Spring Training baseball and the many events around town. During the summertime, our hotel rates are very affordable. Golf courses reduce their rates and tee times are a little easier to schedule. Indoor activities are many in most areas of the city. Restaurants are less crowded, too.

Repeat visitors coming to Arizona often purchase homes here after experiencing our great weather and attractions. Some of them are for winter use only while others rent out their homes until they retire and can spend more time in the Valley of the Sun. An easy way to experience our city and have your own home is to purchase a condo. New construction in multifamily units has skyrocketed recently. There are 17-plus new projects in Scottsdale either just completed or under construction and at least 30 new projects in Phoenix. These are new patio homes, townhomes and apartment-style condos for sale. There are even more apartment multifamily complexes for lease. All of these styles are an easy lock-and-leave situation for our “snowbirds.” There is typically

GiveToPCHF.org

6

NAWBO NEWS

no outside maintenance, unless a townhome comes with an exterior patio. The monthly HOA fee covers the exterior of the buildings and roofs (for most of these condos, townhomes and patio homes), plus the common areas — which oftentimes includes swimming pools — are maintained. So how do you purchase one of these-lock-and-leave-type homes? Financing new construction typically involves on-site lenders, with some of them offering incentives to use the builder’s lender. Since the project is entirely new, comparable homes are


readily available to satisfy a lender’s appraiser. Resale condo financing, however, is an entirely different discussion. Financing resale condos has been a bit trickier, as the complexes have to meet lending guidelines. Guidelines are owner occupant ratios, financial reserve requirements and more. Occupancy ratios have been the biggest hurdle since the housing crisis. Since 2010, a large portion of condos went into foreclosure. Prices were reduced, making these an attractive option for investors who purchased the condos and rented the units to tenants, thus lowering the owner/occupant ratios. With lower occupant ratios, the number of FHA-approved complexes fell to a short list. To see the list of FHA approved condos, visit HUD.gov. Condos that don’t meet those guidelines have been removed from the FHA approved list and have become what we call “nonwarrantable.” There are lenders who specialize in financing these “non-warrantable” condos, so financing may still be available for some. And one lender I know of is working to add complexes to that list. This year, FHA guidelines will loosen, reducing the owner-occupant ratios and thus allowing more borrowers to purchase condos. If you’re interested in purchasing a home or condo, I can help you, but for information about financing, speak to a lender about your particular situation and for answers to your questions.

Your Business Deserves a Good Deal: Commercial Leases 101 by Marla Hudgens

When considering a commercial lease, don’t just sign on the dotted line! For many businesses, leases are a large part of overhead. Tenants have bargaining power to garner for themselves the best deal for their bottom line. Here are some items you should consider when negotiating a commercial lease.

Your Goals

Identify your goals. Here are some important variables: Size of the space in light of your needs (floor space vs storage space)

• T  he duration of the lease and your renewal rights • Location, and the importance of a particular space for your business • Total cost, including taxes, insurance and operating expenses • Conditions on the lease, including signage, use, subleasing, etc.

Tip: Landlords can be persuaded to offer concessions to tenants in the form of rent reductions (free or reduced rent periods), improvements (the landlord will pay for certain renovations or repairs), renewal rights (tenant can add lease years to the overall lease term), expansion rights (the ability to grow), and fewer tenant obligations. Knowing your goals will allow you to ask for what you need.

Types of Leases Jan Green

REALTOR®, GREEN®, SFR, EcoBroker® RE/MAX Excalibur 21803 N. Scottsdale Rd., Ste. 100 Scottsdale, AZ 85255 Cell (602) 620-2699 RelocatingtoScottsdale.com GotGreen.info® Green Maven Approved Site Volunteer, U. S. Green Building Council, Arizona Chapter Advisory Board Member, Efficiency First Arizona (EFAZ) Member, Phoenix Green Chamber of Commerce & USGBC & EFAZ

nawbophx.org

Leases are not made alike. Knowing the difference between lease types is central to any negotiation. Here are the three most common lease types: • Gross lease: Tenant pays a set rental rate, and the landlord pays taxes, insurance and operating expenses. Because your property ownership obligations are lower, rent is typically higher. • Triple net lease: Tenant pays taxes, insurance and maintenance in addition to monthly rent. In exchange for the higher level of building responsibility, the tenant’s monthly lease payment is usually lower. • Modified gross lease: This is a “compromise” between a gross lease and triple net lease. Tenant pays the base rent plus a proportionate share of selected

net expenses such as operating expenses, utilities, taxes and/or insurance.

Important Lease Terms

Commercial leases are long and complicated. Focus on big-ticket items first, but be sure to review all terms carefully to get the best deal. • Rent: Make sure your business can afford the total payments, especially if rent increases over time. Understand your entire financial obligation (not just set rental rates). • Terms: What is the duration of the lease? New businesses, for example, may seek a shorter term with optional renewals. • Use and exclusivity: Make sure the landlord has no objection to your business purpose. In some cases, you can negotiate exclusivity to ensure your competition is not in the building or complex. • Assignment: If you plan to assign or transfer the lease during the lease term, make sure that such assignment is allowed. Understand what expenses and liabilities carry forward with such transfer. • Repairs: Understand who is responsible for what repairs. Structural or large mechanical repairs should be negotiated to the landlord. There are dozens of other items that should be negotiated or considered when reviewing a commercial lease. Consider seeking advice from an attorney who is well equipped to handle these negotiations. You will save up-front negotiating costs over time because you have negotiated a better deal. After all, you will not receive what you want unless you ask for it.

Marla Hudgens is an attorney at Lewis Roca Rothgerber Christie LLP. Marla has represented commercial tenants and landlords for the last several years in both negotiations and disputes. To learn more about Marla Hudgens and Lewis Roca Rothgerber Christie LLP, please visit: www.lrrc.com/marla-hudgens.

7

NAWBO NEWS


Why You Should Issue 1099-MISC in Your Business by Debra Boyd

These days, businesses rely on additional services from contractors and freelancers for tasks that don’t require employee headcount. This means that it’s essential for them to understand IRS rules and varied prerequisites for issuing 1099-MISC forms in their business. Unfortunately, a lot of business owners “wing it” when it comes to following the rules and requirements because keeping up with changes can be so aggravating that many entrepreneurs simply give up. This can be a dangerous and costly move, with penalties adding up quickly. Fortunately, filing the 1099-MISC isn’t complicated. Here’s what you need to know.

1099-MISC Defined

Generally speaking, you’ll need to issue a 1099-MISC to anyone you’ve paid a minimum of $600 for services related to your business. This includes materials, rent, awards, prizes and other income payments made during the year. You don’t need to submit a 1099-MISC for payments made for personal functions. A 1099-MISC form helps independent contractors report their earnings to the IRS. It’s similar to a W-2 that employees receive from their employer. The IRS requires companies to report payments to the IRS and recipient through a 1099-MISC. The form displays total payments that you provided to an entity or person during the year that you’ve received services for. It contains personal information, including name, address, and either employer identification or Social Security number. Beyond the basic personal information, it classifies every type of payment in individual boxes on the form based on the grounds for your payment. For example, if you paid for contract work, the annual earnings should be acknowledged as non-employee compensation.

Business Legal Obligations

There is a wide range of transactions that require you to submit a 1099-MISC to the person or entity who received your payment. A few of the most common transactions include paying: • $600 or higher in compensation in exchange for services rendered, • $600 or more to a law firm or attorney for legal services, • Rent for commercial real estate, like a warehouse or office, • $10 or more in royalty fees, • Awards or prizes of $600 or more, and • Direct sales of at least $5,000 of consumer products to a buyer for resale through a non-retail establishment. In addition, if you ever end up paying a lawsuit settlement, you’ll be required to report all the payments you make apart from the ones that compensate an individual for their physical injuries or medical expenses. In order to avoid IRS penalties, it’s important to be aware of reporting deadlines for the 1099-MISC. You’ll need to give the recipient of the payment a copy of the 1099-MISC no later than January 31st, right after the end of the tax year that you made the payments in. In addition, you’ll need to file the 1099-MISC with the IRS by February 28th. The IRS may give you more time if you file electronically. Setting up processes and systems to issue 1099s can help you save time and money every year. If you’d like to discuss how I could help your business improve productivity and efficiency, schedule a free consultation at dlbconsulting.com.

Debra Boyd is a financial systems consultant and accountant. She established DLB Consulting, LLC with the goal to focus on implementing solutions and help entrepreneurs overcome the more than 30-year stigma that 80 percent of new businesses fail in their first five years. It doesn’t have to be that way! Debra has a successful track record of working with a wide range of small businesses — from start-up businesses to clients with more than 200 employees. Her passion is to see your business succeed.

8

NAWBO NEWS

NAWBO PHOENIX Presidential Corporate Partners SRP Western International University Executive Corporate Partners Border States Electric Cox Business GoDaddy Lewis Roca Rothgerber Christie Wells Fargo Business Corporate Partners Arizona Bank & Trust Arizona Fire & Water Restoration Bank of America Benjamin Franklin Plumbing IKEA Business Kolbe Corp Microsoft Store Orchard Medical Consulting Phoenix Country Club Schmeiser, Olsen & Watts LLP UPS Strategic Media Partners Hollister Design Group Independent Talk 1100 KFNX MoneyRadio 1510 NetworkingPhoenix.com Phoenix Business Journal Splash Printing & Marketing Executive Media Partners Beaver Pond Enterprises, LLC CITY Sun Times InBusiness Magazine Infinite Reach Agency Community Alliance Partners Arizona Small Business Association Arizona Small Business Development Center Scottsdale Area Chamber of Commerce Visit Phoenix Women’s Enterprise Foundation


HEALTHCARE DECISIONS Open Enrollment & Healthcare Guide for Business

Informing Our Business Community on Healthcare Options


HEALTHCARE DECISIONS

Healthcare and the Engaged Employee

Engaging employees as consumer is a key part of ensuring the best benefit to a business and its workforce by RaeAnne Marsh

Businesses are faced with many considerations in implementing programs for the greatest benefit to their company and their employees. New options have become available as the new mindset regarding outcome sends ripples through the healthcare industry. The most significant shift has been from the fee-for-service model to outcome-based, value-based care that rewards providers for managing patients and getting the patient better, observes Dave Allazetta, CEO of UnitedHealthcare of Arizona and New Mexico. A delivery system built around this model is the accountable care organization (ACO), through which care providers are eligible for incentives based on meaningful improvements in measures such as hospital readmission rates, disease management and prevention, patient safety and car delivery, as well as total cost savings and patient satisfaction. UnitedHealthcare launched its first in Tucson in 2013; in the Phoenix area, in May 2014 in partnership with Arizona Care Network to improve transitions of care for patients and facilitate better communication with all who are involved in a patient’s treatment. UnitedHealthcare followed this ACO two months later with another in partnership with Banner Health Network, which was one of the first care provider networks in Arizona to adopt the principles of accountable care — and one of the original 32 organizations nationally selected by the Centers of Medicare & Medicaid

Services to demonstrate the Medicare Pioneer Accountable Care Model. Nationwide, more than $30 billion of UnitedHealthcare’s annual physician and hospital reimbursements are tied to accountable care programs, centers of excellence and performance-based programs. The company projects this will reach $65 billion by 2018. “From my perspective, the big headline is engaging the consumers,” Allazetta says. The ultimate intent is helping providers engage their patients — UnitedHealthcare’s clients — but Allazetta sees it from the other direction as well: “We want the employer and employees to engage providers for preventive diagnostic care.” So there is no out-of-pocket cost for such things as mammograms and regular physical exams. And Allazetta observes many employers incentivize their employees to make sure they get the direct diagnostic care. It’s important, he points out, “to determine if they’re at risk for [health] conditions they will need to manage.” One way to facilitate engagement is to provide a platform and tools that allow the user to see the various options available and the approximate cost. A scenario he describes is a patient in the doctor’s office, getting a referral to an MRI, who can pull up information right then and there. “He can show the doctor it’s cheaper somewhere other than where he’s making the referral, and can ask, ‘Does that work for you?’ Usually, it’s fine,” Allazetta says.

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 current individual marketplace open enrollment window — November 1, 2016 to January 31, 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

Informing Our Business Community on ns Healthcare Optio

INBUSINESSMAG.COM

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.

DEC. 2016

41


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 business to provide plans and ensure compliance.

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

Employee Benefits Exchange Corp. 1745 S. Alma School Rd., Suite 210, Mesa (480) 839-6100 ebxaz.com

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

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

Blue Water Benefits Consulting 7848 E. Davenport Dr., Scottsdale (480) 313-0910 employeebenefitcompliance.com

Focus Benefits Group 4120 N. 20th St., 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 B101, 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

42

DEC. 2016

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 1645 E. Bethany Home Rd., Phoenix (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 117-234, Peoria (623) 594-0926 Matsock & Associates 2400 E. Arizona Biltmore Circle, Phoenix (602) 955-0200 matsock.com Powers-Leavitt Insurance 14301 N. 87th St., Suite 308, Scottsdale (480) 348-1100 powers-leavitt.com

INBUSINESSMAG.COM


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 4645 E. Cotton Center Blvd., Phoenix (800) 872-3862 aetna.com Amenda Insurance Associates Ltd. 5046 E. Redfield Dr., Scottsdale (480) 284-6400 douglasamenda.com American Family Insurance (No Individual Health Insurance) Multiple Agents Valley-wide (800) 692-6326 amfam.com Benefits By Design 8631 S. Priest Dr., Tempe (480) 831-7700 benefitsbydesignaz.com Blue Cross Blue Shield of Arizona 8220 N. 23rd Ave., Phoenix (602) 864-4899 azblue.com Bowman & Associates Insurance 16042 N. 32nd St., Bldg. A, Phoenix (602) 482-3300 bowmaninsurance.com

Humana Health Insurance of Phoenix 20860 N. Tatum Blvd., Suite 400, Phoenix (480) 515-6400 humana.com

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

JDH Insurance Brokerage Services Heather Wunderle 20403 N. Lake Pleasant Rd., Suite 117-234, Peoria (623) 594-0926

Cigna 25500 N. Norterra Dr., Phoenix (800) 997-1654 cigna.com

Powers-Leavitt Insurance Agency Charlene Powers 14301 N. 87th St., Suite 209, Scottsdale (480) 348-1100 powers-leavitt.com

Farmers Insurance Group Kara Anspach 15849 N. 71st St., Suite 255, Scottsdale (480) 998-8070 farmersagent.com/kanspach Glass Financial Group 4455 E. Camelback Rd., Suite D260, Phoenix (602) 952-1202 glassfinancialgroup.com HealthNet of Arizona 1230 W. Washington St., Suite 401, Tempe (602) 794-1400 healthnet.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.

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 Good Samaritan Medical Center 1111 E. McDowell Rd., Phoenix (602) 839-2000 bannerhealth.com

Arizona Brain & Spine Center 7649 E. Pinnacle Peak Rd., Scottsdale (602) 266-2272 azbsc.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

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

Arrowhead Hospital 18701 N. 67th Ave., Glendale (623) 561-1000 arrowheadhospital.com

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

Banner MD Anderson Cancer Center 2946 E. Banner Gateway Dr., Gilbert (480) 256-6444 bannerhealth.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

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

INBUSINESSMAG.COM

DEC. 2016

43


HEALTHCARE DECISIONS Hospitals (con’t) 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 Chandler Regional Medical Center 1955 W. Frye Rd., Chandler (480) 728-3000 dignityhealth.org/chandlerregional Gilbert Hospital 5656 S. Power Rd., Gilbert (480) 984-2000 gilberter.com Honor Health – Deer Valley Hospital 19829 N. 27th Ave., Phoenix (623) 879-6100 jcl.com Honor Health – North Mountain Hospital 250 E. Dunlap Ave., Phoenix (602) 870-6060 jcl.com Honor Health – Shea Medical Center 9003 E. Shea Blvd., Scottsdale (480) 323-3000 shc.org Honor Health – Osborn Medical Center 7400 E. Osborn Rd., Scottsdale (480) 882-4000 shc.org Honor Health – Thompson Peak Hospital 7400 E. Thompson Peak Pkwy., Scottsdale (480) 324-7000 shc.org

Urgent Care

Maricopa Medical Center 2601 E. Roosevelt St., Phoenix (602) 344-5011 mihs.org

Urgent care may be the option of choice for unexpected or severe healthcare issues, rather than a hospital’s emergency care, convenient for both cost and location. Here is a list of area providers.

Maryvale Hospital 5102 W. Campbell Ave., Phoenix (623) 848-5000 abrazohealth.com

FastMed Urgent Care Multiple Valley Locations (480) 545-2787 fastmed.com

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

NextCare Urgent Care Multiple Valley Locations (888) 958-2128 nextcare.com

Mercy Gilbert Medical Center 3555 S. Val Vista Dr., Gilbert (480) 728-8000 mercygilbert.org

One Health Alliance Urgent Care 7 Valley Locations (855) 887-4368 onehealthurgentcare.com

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

Phoenix Children’s Hospital Urgent Care 4 Valley Locations (480) 922-5437 phoenixchildrens.com/urgent-care

Paradise Valley Hospital 3929 E. Bell Rd., Phoenix (602) 923-5000 paradisevalleyhospital.com Phoenix Baptist Hospital 2000 W. Bethany Home Rd., Phoenix (602) 249-0212 phoenixbaptisthospital.com

Urgent Care Extra Multiple Valley Locations urgentcareextra.com

Workplace Bundled Health Programs

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

St. Joseph’s Hospital & Medical Center 350 W. Thomas Rd., Phoenix (602) 406-3000 stjosephs-phx.org

Arrowhead Health Centers Multiple locations (623) 334-4000 arrowheadhealth.com

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

Surgical Specialty Hospital 6501 N. 19th Ave., Phoenix (602) 795-6020 sshaz.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.

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

44

DEC. 2016

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

LifeCore Group 11022 N. 28th Dr., Suite 280, Phoenix (602) 235-2800 myhealthdividends.com

Orchard Medical Consulting Robin Orchard 3033 N. Central Ave., Phoenix (602) 942-4700 orchardmed.com

Redirect Health 16222 N. 59th Ave., Suite A-100, Glendale (623) 521-9406 redirecthealth.com

INBUSINESSMAG.COM


the signs of

THAT OCCURS WHEN YOU’RE TOO OVERWHELMED

hea lth care

network

Fortunately, we can help you and your company overcome conditions like this. We are Banner Health Network and we are far more than just hospitals. Banner Health Network is a 4,000-physician strong, integrated network across Arizona giving you specialty facilities, clinics, and an entire spectrum of services. We offer the highly-coordinated care employees want and the high efficiency you need to keep costs down. Choose care designed to fit the health of each and every employee in your company.

BannerHealthNetwork.com | 602.747.6305


We are working to make Arizona the Healthiest State in the Nation!

If you are passionate about healthcare in our state, subscribe to our Healthiest State Blog www.AZHealthiestState.org It's FREE!

Arizona Hospital and Healthcare Association

2800 N Central Ave, Ste. 1450 Phoenix Arizona 85004 602-445-4300 ADVERTISING PROFILE

46

DEC. 2016

INBUSINESSMAG.COM


DECEMBER 2016

In Business Magazine is pleased to offer the MarketPlace for our readers. This section is for

HOW TO ADVERTISE

service-based companies, events and other organizations that wish to “market” directly to

Interested in marketing your business

our readers with their services. Many offer special deals to our readers and all are focused

or service direct to our readers?

on providing the best possible products and services to other businesses here in the Valley. We hope that you will let these advertisers (and all of our advertiser supporters in each issue) know that you’ve seen their ad and that you care to do business with them. The

Show off your product, service, event, announcement or other great information to the best demographics of business decision makers in the Valley. For more information, please contact us at (480) 588-9505 or by email at

Marketplace is open for business.

marketplaceads@inbusinessmag.com.

Get to know what is happening in your Vicinity Follow us vicinitymagazines @vicinityarcadia @vicinityarcadia

INBUSINESSMAG.COM

DEC. 2016

47


DECEMBER 2016

Create Your Free Business Listing

Send the right message at the right time, automatically.

Introducing the premier directory of small businesses in AZ

Email marketing for small business. WATCH DEMO

infusionsoft.com

Market Your Products & Services to the Strongest Demographic in the Valley.

TM

Products • Services • Events • Announcements Q&A • Expertise • Special Offers

ThinkSmallBiz is a movement promoting the support and patronage of small businesses. Make sure your business can be found in the new ThinkSmallBiz directory by creating your free listing today. We encourage everyone to “ThinkSmallBiz”!

Give our readers a reason to call you now!

JAN UA

5 RY 201

n is for sectio rs. This ly to r reade direct for ou arket” tPlace d h to “m Marke focuse that wis er the all are . d to off izations rs and Valley organ reade is please r er the e ou in oth zin d ga als to es here nts an ess Ma cial de each ies, eve business er spe in In Busin er pan rs off ny d com porte es to oth es. Ma e-base iser sup d servic The servic ert ir an servic m. adv the r h ducts with the all of ou ble pro ders wit siness bu rs (and our rea st possi do ise be ert the care to se adv viding that you l let the on pro ad and t you wil n their pe tha ’ve see We ho . that you siness know for bu issue) is open tplace Marke

Visit ThinkSmallBiz.org Today!

Year. Great

a 2015 isness your bu to know ion Get to a subscript zine. ga with ess Ma ues. In Busin 12 iss year. and. 5 per newsst $24.9 ing off the e 42% sav

Make

(480) 588-9505 marketplaceads@inbusinessmag.com Starting at $299

e ge at th messa ally. e right ic Send th me, automat siness. all bu right ti g for sm Email

tin

marke

DEMO WATCH ft.com so

infusion

rib

/subsc

ag.com

sinessm

inbu www.

VERTISE TO AD

iness your bus keting s? reader ed in mar Interest ct to our ice, ice dire t, serv or serv at r produc er gre off you or oth Show of cement aphics announ t demogr event, ey. bes the the Vall tion to ers in informa n mak isio contact se dec s tion, plea busines il at e informa 05 or by ema mor For -95 g.com. 0) 588 inessma us at (48 @inbus ads lace marketp

HOW

Affordable Meds Program … 15 JA N . 20

We’ll work with your unique situation to customize a medication management program

63

… Workforce Medication Management INBUS

INESS

M AG . CO

M

Employer Benefits • • • •

Save on your bottom line Reduce insurance rates Boost employee morale & retain quality employees Reduce time-off for pharmacy visits

Employee Benefits • • • •

Save money Improve health outcomes Mail order convenience with local presence Ship anywhere in Arizona

CALL US TODAY! (623) 432-5938 www.newspringrx.com | info@newspringrx.com 10750 W. McDowell Rd., Suite C-301, Avondale AZ 85392

48

DEC. 2016

INBUSINESSMAG.COM


Adelberg, Doug, 15

Clancy, Ann L., 23

Jerkovic, Jeanine, 10

Sherman, Troy, 20

Albertson, Dave, 21

Cottrell, Jonathan, 28

Kaluzny, Pierre, 18

Snook, Chris J., 23

Allazetta, Dave, 41

Cragun, Shane, 50

Klein, Courtney, 9

Sullivan, Kellie, 15

Allison, Chef Todd, 30

Dembrosky, Luke, 25

Kopparthi, Vivek, 19

Swanson, Jodi, Ph.D., 24

Binkert, Jacqueline, 23

Earhart, Phaedra, 31

Larsen, Cassandra, 24

Sweetman, Kate, 50

Blue, Steven L., 22

Egbert, John J., 11

Lockhart, John, 21

Thorpe, Elise, 15

Boyd, Debra, 38

Gibboni, Robert, 14

Mackay, Christine, 10

Vermillion, Chuck, 12

Bradstock, Phil, 17

Gordon, Cindy, 34

Merrin, Seth, 23

Whitehurst, Deborah, 24

Brown, Cleveland, 14

Green, Jan, 36

Poon, Jenny, 18

Wright, Travis, 23

Bryant, Sheila, 15

Heckler, Dean, 18

Pruitt, Jeffrey, 21

Zeidman, Steve, 20, 21

Calihan, Kevin, 12

Hudgens, Marla, 37

Rollins, Tracie, 32

Choi, Ji Mi, 19

Jabjiniak, Bill, 10

Scoville-Weaver, Sara, 20

1100 KFNX, 35

Entrepreneurship + Innovation, Office of Knowledge Enterprise Development, ASU, 19

Phoenix Children’s Hospital Foundation, 36

1130 The Restaurant, 30 AAA Phone oh Hold, 8 AccountibilIT, 13 Alliance Bank of Arizona, 3 Alerus, 5 Anthem Area Chamber of Commerce, 26 APS, 5

Evolve Technologies, 20 Fennemore Craig, 6 FSW Funding, 47 Gilbert Chamber of Commerce, 26 GPS Insight, 2

Arizona BioIndustry Association, 27

Greater Phoenix Chamber of Commerce, 25, 27

Arizona Commerce Authority, 26

Heckler Design, 18

Arizona Cyber Threat Response Alliance/ Arizona InfraGard, 25

Hopscratch, 28

Arizona Department of Transportation, 29 Arizona Forward, 27 Arizona Hospital and Healthcare Association, 46 Arizona Relay Service, 8 Arizona State University, 24 Arizona Technology Council, 25, 26 Audi, 29 Banner Health Network, 27, 45, 52 Billfire, 21 Blue Cross Blue Shield of Arizona, 40 Business Rescue Coaching, 34 CBRE, 12 Chandler Chamber of Commerce, 27 Children’s Museum of Phoenix, 47 Cloud Security Alliance, 27 CO+HOOTS, 17 Debevoise & Plimpton, 25

Hotwire Development, 20 Infusionsoft, 48 Invest Southwest, 27 Jennings, Strouss & Salmon, PLC, 11

Phoenix Gay Chamber of Commerce, 26 Phoenix Philanthropy Group, The, 5, 24 Phoenix, City of, 10, 17

Surprise, City of, 10 SweetmanCragun, 50 T. Cook’s, 30 Tallwave, 21

Protocol, 14

Tempe Fire Medical Rescue Department, 15

RE/MAX Excalibur, 36

Tempe St. Luke’s Hospital, 15

Redirect Health, 7

Things Remembered, 29

Rollins Advantage, The, 31

ThinkSmallBiz, 48

SEED SPOT, 9, 20

True Food Kitchen, 30

Shelvspace, 21

UnitedHealthcare of Arizona, 41

Sokanu, 11

Vestafy, 20

Southwest Veterans Chamber of Commerce, 26

Waggl, 11

Sputnik Moment, 18

Waste Management Phoenix Open, 7 Zinc Bistro, 30

JLL, 51 Lewis Roca Rothgerber Christie LLP, 37

CHECK US OUT

Logi-Serve, 11 Lovitt & Touché, 15 MarketingPodcasts.com, 11 Mesa, City of, 10 Miller Ingenuity, 22 Moda Giorgio, 29 Morgan Law Offices, 6 National Association of Women Business Owners – Phoenix, 27, 31 NeoLight, 19 NewSpring Pharmacy, 48 OneAZ Credit Union, 14

DLB Consulting, 38

Payment Card Industry Standards Security Council, 14

Economic Club of Phoenix, 26

Payscout, 14

/inbusinessmagphx

@inbusinessmag

Pethealth, Inc., 20, 21

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

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

49 20DEC.1 6 INBUSINESSMAG.COM


A CANDID FORUM

BY

Yes, Businesses Have a Melt Rate

To stay relevant, they need to explore that and other ‘confront the brutal fact’ questions by Shane Cragun & Kate Sweetman

Shane Cragun and Kate Sweetman are founding principles at SweetmanCragun, the world’s leader in providing leadership and highperformance solutions specifically tailored for today’s Age of Disruption. They are co-authors of the new book, Reinvention: Accelerating Results in the Age of Disruption. sweetmancragun.com

DEC. 20 1 6

50

INBUSINESSMAG.COM

How can we gauge our relevance going forward in today’s tumultuous, disruptive and global business environment? How can we quickly determine if changes to our strategy and the way we do things is necessary? Are there a few key questions we would be wise to ask with our teams throughout the fiscal year? Let’s consider the case of the trillion-dollar U.S. food industry. As more and more shoppers opt for fresh, organic choices, the top 25 U.S. food and beverage companies’ market share continues to decline year after year. It seems their fundamental existence is being challenged in very big ways. A savvy industry analyst summed it up best: “These big food companies are like melting icebergs. Every year they become a little less relevant.”  Wow. Melting icebergs.  The question now is whether these large companies are willing to confront the brutal facts and pursue significant change through reinvention and other large-scale change strategies. In today’s Age of Disruption, we all need to continually reflect and focus on our current and future competitiveness. We can do that by asking four “confront the brutal fact” questions and, in fact, can ask them about ourselves as professionals as well. 1. Melt Rate: Is my professional or organizational iceberg melting? If so, at what rate? Why?  2. Relevance Trend: Am I and my organization continuing to increase in relevance in the eyes of customers and stakeholders? If not, why?  3. Adding Value: Am I and my organization continually adding value to our products from our customer’s point of view? Am I engaged in vital work that adds value to the customer? 4. Internal vs. External Change: Is my organization’s internal rate of change faster than the rate of change in the external environment? Am I learning faster as a professional than the creation of new knowledge in my external environment?

Although these questions are somewhat metaphorical in nature, they can spur deep insight into our ability to successfully compete now and in the future. If we avoid asking strategic questions such as these, we risk sliding into irrelevance and launching squarely onto the path of failure. “Head in the sand” strategies will not work for those who have a bias for success in the 21st century.  Whether it is asking the four questions we suggest above, or others that may be more relevant, we challenge all individuals, teams, organizations and societies to proactively ask profoundly self-reflective questions in an attempt to maintain complete awareness of their strengths and weaknesses. There is a natural law called The Law of Nemesis that has been in play in business over the centuries, but seems especially acute and powerful today. The law states, “Find a good thing and count on this: A nemesis will appear. Nothing good lasts forever because others will want to share it.” Asking “confront the brutal fact” questions will be a striking characteristic of future market champions.  Having a mindset in the Age of Disruption of being a “disrupter” versus a “victim of disruption” clearly makes professionals and organizations feel much more in control of their future, with their hands squarely on the operating dials in an effort to leverage incoming global shockwaves that are sure to come. What does survival in today’s digital and bit economy really require? Learning agility is a good start. Much has been written on this strategy, so we feel little need to elaborate. But suffice it to say, learning fast and well 24/7 will be a competency as valuable as gold for organizations going forward.  Speaking on the criticality of ongoing learning, American moral and social philosopher Eric Hoffer summed it up in this way: “In a time of drastic change, it is the learners who will inherit the future. The learned usually find themselves beautifully equipped to live in a world that no longer exists.” To maintain market leadership, business leaders need to embrace the strategy to be a voracious learner willing to ask the tough questions.

Named for the Greek goddess who imposed divine retribution for wrongdoing (especially the arrogance of hubris), the Law of Nemesis recognizes the reality that one cannot own something good forever because there will always be others who want a piece of it.


Buried by Obamacare? We Can Dig You Out.

Redirect Health’s EverydayCare™ plan is helping entrepreneurs just like you comply with Obamacare without crippling their operations. Stop overpaying and offer your people the high quality care they really need.

• Eliminates individual penalty and $2,000 per-employee penalty under Obamacare • Offers unlimited primary care, physical rehabilitation, chiropractic, concierge services and much more

...and, it can cost you as little as $0 to comply!

Find Out How:

888-455-6224

RedirectHealth.com/ZeroCostObamacare


Because differences matter.

TM

Understanding what makes you unique.® www.swlaw.com SNELL & WILMER | ONE ARIZONA CENTER | 400 EAST VAN BUREN STREET | SUITE 1900 | PHOENIX, AZ 85004 DENVER | LAS VEGAS | LOS ANGELES | LOS CABOS | ORANGE COUNTY | PHOENIX | RENO | SALT LAKE CITY | TUCSON


December 2016 Issue of In Business Magazine