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DEC. 2017

Best Practices against Security Breaches

Diversity & Inclusion Learning What We Don’t Know

When an Employee

Bolts to Competitor Conflict Management Is Participative Global Mobility as Strategic Priority $4.95 INBUSINESSPHX.COM

THIS ISSUE Arizona Technology Council


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DECEMBER 2017 COVER STORY

24

Diversity & Inclusion: Learning What We Don’t Know

The bottom line is touched by elements of social consciousness and market awareness as corporate diversity programs expand and gain a diversity of their own. Businesses in our community open up to In Business Magazine about what has worked for them, what they have learned and what benefits have accrued. FEATURE

30

Why Do We Continue to Have Data Breaches?

Is the solution equipment, software or something else? Morey J. Haber reports on a study by BeyondTrust.

DEPARTMENTS

9

Guest Editor

MAGAZINE

DEC. 2017

IN BUSINESS

Breaches

DIVERSITY & INCLUSION

Learning What We Don’t Know

When an

DECEMBER

Bolts toEmployee Competitor Conflict Managemen t Is Participa tive Global Mobility as Strategic Priority

2017 • INBUSINESSPHX.COM

THIS ISSUE

Arizona Technology

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Council

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PARTNER SECTION Winter 2O17 • aztechcouncil.org

IN THIS ISSUE 2 Need for NAFTA

Technology community counting on trade pact to continue

4 Winning Ways

Council leads celebration of best of Arizona tech

5 On Guard

New facility doubles united effort to fight cyber enemies

6 Taking the Lead

Chief Science Officers getting a head start on their futures

WHO WE ARE The Arizona Technology Council is Arizona’s premier trade association for science and technology companies.

Phoenix Office 2800 N. Central Ave., Suite 1530 Phoenix, AZ 85004 Phone: 602-343-8324 • Fax: 602-343-8330 info@aztechcouncil.org

Tucson Office

The University of Arizona Science and Technology Park 9040 S. Rita Rd., Ste. 1550 (near I-10 & Rita Rd.) Tucson, AZ 85747 Phone: 520-382-3281 • Fax: 520-382-3299 tucson@aztechcouncil.org

MANAGEMENT AND STAFF Steven G. Zylstra Leigh Goldstein Linda Surovick Lauren Witte Deborah Zack Brian Krupski Laura DeGeorge Jeff Sales Don Rodriguez Ron Schott Don Ruedy Justin Williams Marisa Ostos

President + CEO COO + Vice President, Programs + Events Director, Finance + Administration Director, Marketing + Communication Senior Director, Membership Services Director, Membership Services Executive Assistant to President + CEO Executive Director, Southern Arizona Regional Office Editor Executive Emeritus, Phoenix Executive Emeritus, Tucson Executive Emeritus, Tucson Director, Arizona SciTech Festival

Arizona Technology Council Foundation Jeremy Babendure, Executive Director Ph.D. Susan Farretta Greg McCarthy Sabrina Foy

Director, Educational Initiatives Director, Business + Community Relationships

Arizona Technology Report

Arizona Technology Council: The Voice of the Technology Industry

President’s Message With the role as the principal advocate for science- and technology-based companies in the state, you can imagine there really is little down time for the Arizona Technology Council. That’s especially true when it comes to public Steven G. Zylstra, policy. While you are gearing up for the President and CEO, Arizona Technology Council holidays, we already are looking ahead to January when we, through members of our Public Policy Committee, meet with and testify before members of the Legislature when they convene the 54th session. To help lawmakers, we annually prepare a Public Policy Guide. In creating this document, the Committee relies heavily on the Council’s mission by preparing key ideas, goals and legislative initiatives that: • Improve the business climate for technology-based companies, • Provide sources of risk capital that encourage entrepreneurship, • Create an environment that supports science- and technology-related job retention and creation, and • Attract, train and retrain the talent required to compete in a global innovation economy. While this year’s guide includes a variety of positions to aid elected officials and other stakeholders at all levels of government and business as they craft legislation, the Council for 2018 has set the following priorities for Arizona’s Legislature: Restore the fourth-year funding for career and technical education (CTE): Support budgeting and programming for funding of CTE to maximize and accelerate acquisition of knowledge and skills essential to increasing high-demand industry certifications and credentials. Appropriately fund the state’s education system: Fund all levels, including pre-kindergarten, full-day kindergarten, K-12 and postsecondary. Short-term reforms should include funding K-12 education according to the Proposition 301 formula, as well as alternative ideas to appropriately fund pre- and full-day kindergarten, K-12, CTE, universities and community colleges. Long-term comprehensive funding reforms should modernize and promote a 21st century delivery model of education that focuses on performance and accountability. Create and fund a job training program: Reinstate a funding structure to the Arizona Job Training grant program administered by the Arizona Commerce Authority to help attract and grow businesses here. In the 2015 legislative session, the Job Training tax was repealed from the fiscal 2017 budget — one year before it was scheduled to sunset. This tax provided funds to attract new businesses, and support small and rural Arizona companies by offering reimbursable grant money for job training to new and existing employees. Change the Refundable Research & Development Tax Credit to make it accessible to more small businesses: Expand the program to meet the needs of the early-stage companies that are investing in research and development dollars and earning credits without having the tax liability to which they can apply them. The program is capped at $5 million per year. Historically, this money has been allocated quickly, showing a much higher demand than the existing funding levels. For your convenience, we offer a copy of the guide on our website, www.aztechcouncil.org. We also encourage you to join us in taking a stand when lawmakers drop the gavel in January.

Accounting Assistant

ARIZONA TECHNOLOGY REPORT

aztechcouncil.org

Arizona Technology Council

DEC. 20 1 7

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Books

New releases give fresh insights on business thinking.

10

Feedback

Briefs

12

By the Numbers

Today’s workforce is putting pressure on companies to make global mobility a strategic priority.

14

From the Top

Hickman’s Family Farms CEO continues the family tradition of innovation.

16

CRE

36

Nonprofit

Assets

2018 Lexus LS 500 Plus: The right size carry-on alleviates one worry during this often-overbooked travel time.

38

Power Lunch

Over Easy: Breakfast for Lunch and Vice Versa Plus: Soup is a hot trend in fast-casual restaurants.

50

Roundtable

R.W. Burke examines conflict management as a participative process.

ON THE AGENDA

“The Downtown-Midtown Trifecta,” “Arizona Center Adds Hotel,” “24th at Camelback Refresh” and “Stay and Stay”

33

18

‘2018 New Business Opportunities in Latin America’ — Global Chamber

Technology

Spotlight

“Technology Graduate Programs” and “Technology Is Improving Expense Report Auditing”

Cybersecurity Lunch Forum — Arizona Technology Council

20

Business events throughout the Valley

1

39

31

Engaging the right consultant is one of the best decisions an organization can make. Engaging the wrong one can be damaging.

“Banking on Sustainability,” “Profitable Culture and Demographic Fit,” “CenturyLink Links to Hispanic Market,” “Point-of-Sale Marketing” and “No-Password Identity Authentication”

Diversity & Inclusion

Local attorney discusses steps employers can take to protect themselves when key employees leave to work for a competitor.

32

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against Securi ty

Legal

Dr. Joel P. Martin, president of Triad West Inc., introduces the “Diversity & Inclusion” issue.

Mesha Davis, Akshai Patel and Frankie Jo Rios respond to In Business Magazine’s burning business question of the month.

Best Practic es

22

Healthcare

34

Calendar

“Bayless Implements Self-Serve Pharmacy Kiosk,” “Smart Single-Use Biometric Patches” and “Employers Can Lower Diabetes Risk”

The overall availability of flexible jobs has been increasing, with FlexJobs — the leading online service for professionals seeking telecommuting, flexible schedule, part-time and freelance jobs — experiencing a 17-percent increase in the number of flexible jobs posted in its database between September 2016 and September 2017. flexjobs.com


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OUR CUSTOMERS SAY IT BEST “They’re very easy to get in touch with and I feel like they go above and beyond for their customers.”

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

Dr. Monica Brown

Owner: Fetch A Vet - Peoria, Arizona

PARTNER ORGANIZATIONS Kristen Merrifield, CEO Alliance of Arizona Nonprofits (602) 279-2966 www.arizonanonprofits.org Jack Lunsford, President & CEO Arizona Small Business Association Central Office (602) 306-4000 Southern Arizona (520) 327-0222 www.asba.com

Your Work. Your Legacy.

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

There’s a sense of pride in getting the job done right. We’ve been treating our customers like family for over 100 years and we’re ready to do the same for you! For a fast business loan or complete banking relationship, call

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480-314-4200 follow us

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| stearnsbank.com | Member FDIC

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

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

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01

WHEN BUSINESS BOOMS, BOOM BACK.

Dec. 2017

VOL. 8, NO. 12

Publisher Rick McCartney

Editor RaeAnne Marsh

Art Director Benjamin Little

Contributing Writers

Brett Abramson John Bonnell R.W. Burke Denise de la Rama John Egbert Morey J. Haber Mike Hunter Maggie Mae Joy Ethan Laub Claire Natale Richard Tollefson Michal Tyra Janice Vega

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Senior Art Director Benjamin Little

Chris Crafton 623-334-7186

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

DEC. 2017 DATES

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

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Events Amy Corben

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

2

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8

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

And for a limited time we are also offering:

SPECS

Operations Louise Ferrari Business Development

Office Manager Allie Schimmel

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

NOTES

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JOEL P. MARTIN, PH.D., TRIAD WEST INC

Diversity & Inclusion: Let’s Talk about It

Some consider Diversity & Inclusion (D&I) simply about political correctness. However, research tells us otherwise. In 2017 Gallup convincingly “linked engagement with positive business metrics including productivity, profitability, quality, employee commitment and retention” and reported that “Diversity combined with an inclusive culture can have an even greater impact on business outcomes” (bit.ly/gender-diversity-case). D&I is a relevant, competitive, and strategic advantage. D&I also positively contributes to the ways we must communicate and work together in our increasingly global workplaces and cities. Diversity and inclusion are not the same thing nor is D&I the same as affirmative action or equal employment opportunity. “Strategic diversity management” means you are bringing people of diverse races, cultures, genders, generations, and other diversity dimensions into your organization or board. “Strategic inclusion” means you are intentional about creating a culture of respect, acceptance and accountability such that everyone does his or her best work. Inclusive organizational cultures radiate “We welcome you.” Some of the prominent businesses in our community are leading the way with incorporating diversity and inclusion into their standard operations — and reaping benefits. This month’s cover story looks at how diversity and inclusion impacts business operations. In Business Magazine editor RaeAnne Marsh brings this home with input from Intel, the Desert Botanical Garden and other businesses sharing their experience in unitizing diversity and inclusion strategies to advance the goals of their companies. Another hot topic in today’s world is cybersecurity. Businesses spend enormous amounts of resources addressing the threat or consequences of breaches in their operations. Morey Haber explores the culpability of human error in the feature article “Why Do We Continue to Have Data Breaches?” Conflict resolution is the focus of this issue’s Roundtable, a Candid Forum. R.W. Burke offers suggestions to businesses as to how to deal with addressing conflict between employees; between managers and employees; and between departments. With its standard mix of information on healthcare, technology, commercial real estate, legal aspects of business practices — and even where to head for lunch and what wheels to use to drive there — In Business Magazine presents this December issue. It is my pleasure to assist in bringing you this issue of In Business Magazine. Please enjoy your reading and may many spirited and forward-looking conversations be held because of it. Have a happy holiday season.

Dr. Joel Martin, president of Triad West Inc. and founder of Positively Powerful Woman Awards & Programs, is an executive coach, speaker, author and consultant. She founded Triad West more than 15 years ago to provide clients with expertise in developing transformational leaders; diverse and inclusive cultures; and aligned, high-performing teams. Certified by the Women’s Business Enterprise National Council (WBENC) and a member of the Global Chamber and WOWOB, her company has provided services in diverse countries around the world. Dr. Martin has appeared on "The Today Show" and ABC Channel 15, in The New York Times, Black Enterprise and Fortune; and is the author of How to Be a Positively Powerful Person and MBA: ‘Me’ Brand Awareness.

Sincerely,

Dr. Joel P. Martin President • Triad West Inc.

May

17 Save the date for the 11th Annual Positively Powerful Woman Awards May 17, 2018. positivelypowerful.com

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

Open Your Eyes

We want to thank Dr. Joel Martin for her work on this and for leading

These days, this phrase is thought to be all about environment. However, as we can see in our cover story on diversity and inclusion, there is much more to our work culture than the environment itself. Being happy in our workplace is important, but understanding what we can do to present a better workplace includes a focus on people.

against Securi ty

MAGAZINE

Breaches

DEC. 2017

IN BUSINESS

Best Practic es

DIVERSITY & INCLUSION

Diversity & Inclusion Learning What We Don’t Know

When an

DECEMBER 2017 • INBUSINESSPHX.COM

THIS ISSUE

Arizona Technology

Council

Bolts toEmployee Competitor Conflict Managemen t Is Participa tive Global Mobility as Strategic Priority $4.95 INBUSINESSPHX.COM

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this issue of in Business Magazine. I had the pleasure of listening to her presentation on diversity and inclusion and realized immediately that I had so much to learn about the subject and the effect this conscious knowledge could have on any workplace and even on our communities. She opened my eyes and I hope she will open the eyes of our readers as well.

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—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@ inbusinessphx.com Marketing/Exposure: advertise@ inbusinessphx.com Visit us online at www.inbusinessphx.com

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VALLEY LEADERS SOUND OFF

Diversity and inclusion efforts have become a focus in the workplace. What are some key measures you’ve found to be effective in promoting diversity and inclusion?

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

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

MESHA DAVIS

AKSHAI J. PATEL

FRANKIE JO RIOS

Chief Executive Officer Arizona Foundation for Women Sector: Nonprofit

Co-Founder and CEO Phoenix Collegiate Academy Sector: Education

Performance, productivity and profits (3 P’s) is what I remember. From the boardroom to management to the direct line, these words were key in the workplace. However, focusing primarily on the 3 P’s can be counterproductive. When comparing organizations (for-profit and not-for-profit), I found the most innovative, progressive and successful were those that focused on not only their employees but the diversity of their teams. No matter the business, a host of diverse minds, experiences and cultures adds a certain spice or twist. One of my former CEOs said, “Employees are our No. 1 asset and a diverse team is the best team.” He implemented a diversity team and empowered them to ensure equity, diversity and inclusion. He was genuine. His charismatic presence exuded a sense of inclusion toward each employee. Everyone worked hard (sometimes unknowingly), was committed to the mission, and their performance and productivity were stellar. New ideas formed and perspectives and cultural-differences were respected and embraced. The organization’s profits were at an all-time high. The formula as I see it: Empowered, appreciated and happy employees equals performance, productivity and profits.

Diversity and inclusion has been an important focus area at PCA. In partnership with our management team, especially our talent director, we’ve taken several significant steps in the last three years to prioritize it. Prioritizing recruitment of people of color in hiring led PCA to increase the percentage of team members who identify as people of color from 35 percent in 2014 to 55 percent in 2017. Embracing student empowerment as a core value forced us to look at every decision through the lens of student voice (overwhelmingly, they are Latino and African-American children of poverty). Adopting culturally responsive teaching, which PCA engaged in as a pilot last year, resulted in participating teachers concluding that others should embrace it as an instructional approach across the network. This year, every returning teacher attends professional development to implement CRT. We’ve really pushed to go beyond words and into action on making equity a priority, so our students see success not only associated with one type of person.

Executive Director East Valley Hispanic Chamber of Commerce Sector: Business Advocacy Group

Arizona Foundation for Women azfw.org Mesha Davis is the CEO of Arizona Foundation for Women. Her prior experience includes being chief development officer for Southwest Center for HIV/AIDS, where she led their $10.1 million capital and capacity campaign. Davis received a Master of Science in management from Cardinal Stritch University and a Bachelor of Business Administration from the University of Wisconsin-Milwaukee.

DEC. 20 1 7

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Phoenix Collegiate Academy phxca.org Akshai J. Patel is co-founder and CEO of Phoenix Collegiate Academy charter schools, a pre-K-12 network in South Phoenix dedicated to preparing all students in the disadvantaged community to succeed in college and be leaders in the community. Patel attended Barrett, the Honors College at Arizona State University, and graduated summa cum laude with a B.A. in economics and a B.S. in political science with concentration in Public Policy Advocacy. He earned an MBA at Columbia University and an M.Ed. in curriculum and instruction from ASU.

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

We have to remember that diversity and inclusion means different things to different people, and organizations will apply those definitions to their companies respectively. Companies should tailor their initiatives to address their specific industry and acknowledge their areas of weakness, setting specific goals based on their strategic objectives. Organizations should also consider if any policies or practices need to be eliminated or adjusted. It is imperative that we embrace diversity and inclusion, not only for ourselves but for the future generations to come. Even though EVHCC is still in the developing stages and we have a small team, we pride ourselves on being an organization that encourages and respects diversity both internally and toward our members. As we represent the Hispanic business community, we make sure our staff is able to connect with our members in their native language and honors and respects their traditions as well. Internally, we welcome staff members based on their expertise and ability to contribute to the overall mission and vision of the Chamber. This is why we have a team tha t includes individuals of diverse age and gender and from diverse backgrounds and areas of expertise. We believe our individual differences and qualities are what makes us strong and efficient. East Valley Hispanic Chamber of Commerce evhcc.org Frankie Jo Rios is president and CEO of the East Valley Hispanic Chamber of Commerce. She retired from the State of Arizona after 25 years in the Criminal Division of the Attorney General’s office and five years as executive assistant with the Registrar of Contractors office.


QUICK AND TO THE POINT

Profitable Culture and Demographic Fit Chapman Automotive Group has entered into a partnership with Topgolf® in Arizona, which includes locations in Scottsdale, Gilbert and Tucson. The three-year agreement between the Chandler-based auto dealer group and the global sports entertainment leader will enhance guest experience through brand activations, music entertainment, driver appreciation nights, giveaways and more. This unlikely partnership is a result of a culture fit, demographic overlap and location alignment between the two brands. According to Chapman Automotive Group CEO Ted Chapman, the company prides itself on excellence in customer service and commitment to community, and recognized that Topgolf strives for the same goals by creating moments that are meaningful for their guests. Through their collaboration, Topgolf (with more than 1,500 Arizona associates and millions of annual guests) and Chapman (with more than 17 automotive brands and 1,700 employees), are on the cutting edge of redefining sports and entertainment partnerships. As part of their agreement, Chapman will receive exclusive marketing exposure to millions of Topgolf fans in a fun, engaging and vibrant environment over 363 days a year. Through lead generation, media promotion, vehicle displays, test drive events and social media contests, Chapman stands to gain key

BYTES

by Mike Hunter

CenturyLink Links to Hispanic Market CenturyLink, Inc. launched CenturyLink® Stream Latino with a variety of Spanish-language sports, entertainment, family and local programming channels, as well as a Cloud DVR, recognizing an important community in the Phoenix market. CenturyLink Stream, which can be ordered online, provides subscribers the ability to stream live and on-demand programs on computers, tablets, mobile devices and a CenturyLink Android TV set-top box, which

audience segments, including social seekers, families, athletes and corporate business. In exchange, Topgolf receives exposure to a wide variety of its target demographic from Chapman Dealerships, including luxury and non-luxury buyers, millennials, families and executives. Chapman’s 17 dealerships will also host customer and employee events at Topgolf venues, and Chapman will help Topgolf create exciting events to drive guest visits. Together, Chapman and Topgolf aim to amp up guest experience by hosting exciting game integrations quarterly, giving away Chapman vehicle leases and large cash prizes at Topgolf venues throughout Arizona, and by providing entertainment through curation of a new Topgolf Music Series presented by Chapman Automotive Group. —Janice Vega

customers have the option to purchase. centurylinkstream.com/esp.php

Point-of-Sale Marketing Phoenix-based Mobivity provides a platform for intelligent and personalized marketing in the real world. Real-world customer activity in national restaurants, retailers and personal care brands is difficult to track and connect to digital actions. Mobivity leverages detailed purchase data and communications platforms to improve business results by understanding, predicting and influencing consumer behavior — driving better actions and informing decisions by connecting point-of-sale outcomes to the events and influences

Banking on Sustainability Eighty-two percent of people want to practice sustainability, such as recycling, but few actually do, according to Paul Winn, chief revenue officer of Recyclebank, LLC, a B-Corp-certified company dedicated to creating a zero-waste future. To overcome that inertia, Recyclebank created a patented behavior-change program that is also an economic opportunity for local businesses while it educates and incentivizes individuals. Residents who enroll as Recyclebank members earn points for various actions, and can spend their accumulated points through offers at participating merchants. To the merchant, this participation is free (cost incurred is the value of whatever offer they choose to extend). And the benefit? “We have more than 60,000 members [in Phoenix], and

we market local merchants to them,” Winn explains. CopperStar Coffee and the Phoenix Art Museum are among 212 reward partners currently in Recyclebank’s catalogue of more than 290 offers available to Phoenicians. Since January of this year, Recyclebank has been charged with supporting the Reimagine Phoenix initiative and its goal of diverting 40 percent of the trash from landfills by 2020 through increased residential participation. The partnership it entered into in October with Local First Arizona enhanced its rewards catalogue with discounts on products and services from an even greater number of local businesses. —RaeAnne Marsh Recyclebank recyclebank.com

that caused them. mobivity.com

No-Password Identity Authentication Trusona offers a suite of no-password solutions, from frictionless login to the world’s only insured authentication. Trusona’s dynamic authentication relies on patent-pending anti-replay technology that uses the unique nature of every action to prove the True Persona behind every digital interaction. With a global presence, Trusona is leading the #NoPasswords Revolution where there are no passwords to be created, remembered, stolen or compromised, ensuring people are who they say they are and no one else can. trusona.com

Reimagine Phoenix is the city's initiative to increase the city's waste diversion rate to 40 percent by 2020 and to better manage its solid waste resources. Businesses are encouraged to participate. phoenix.gov/publicworks/reimagine

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METRICS & MEASUREMENTS

Global Talent Mobility Is Strategic Priority Leading global companies are enhancing workforce planning and leadership development

WHERE’S THE DATA? With global mobility on the senior leadership agenda, having robust, accurate data is an imperative. Sixty-seven percent of respondents to BGRS’s 22nd Talent Mobility Trends Survey say that in the last three years the amount of data, analytics and benchmarks requested by top management regarding mobility has increased. Yet, 57 percent of respondents indicate they don’t have sufficient access to data that allows them to gain the insight they need into their company’s mobility program. The top three most significant data gaps reported are mobile employee retention statistics, aggregated cost of mobility programs and employee career progression data. bgrs.com

The 22nd Talent Mobility Trends Survey, which explores how employee mobility is transforming to better support overall corporate growth strategies, found senior human resources leaders are approaching talent mobility with a new sense of purpose and support from the top. Sixty-three percent of respondents to this survey by BGRS, a leading provider of talent mobility solutions, indicate that employee mobility is high on their organizations’ leadership agenda. Eighty-five percent of respondents have recently made, are making, or are planning to make strategic changes to the way employee mobility is managed in their organizations, largely to align their primary remit with overall business strategy, develop innovative talent strategies and help business leaders achieve their objectives. Cross-border employee mobility can have a positive impact on the bottom line — whether it’s expanding into a new market, filling a skills gap or planning leadership succession. More than one quarter of respondents (27%) say that international work experience is a prerequisite to joining their company’s senior leadership team. In an increasingly globalized business landscape, this indicates a clear generational shift. Today, only 22 percent of Fortune 100 CEOs have international work experience. Further, of the ten oldest Fortune 100 CEOs, only two have taken international assignments, but among the youngest ten, eight have worked outside of their home country.

Nearly half of survey respondents (49%) indicate the primary reason they are making enhancements to the mobile employee experience is to improve their satisfaction. This reinforces the importance of overall career management if companies want to continue to attract top-tier candidates for strategic leadership assignments and retain high-performing employees in whose development they are investing. Employee experience is no longer one-dimensionally focused on compensation package and satisfaction with the relocation service, but now encompasses impact on the long-term employee career. “We are seeing a seismic shift in the changing nature of work — from demographics, innovation and digital disruption, to globalization versus protectionism and employee outlook. Flexibility in practices and innovative work arrangements are paramount,” says Ellyn Karetnick, vice president and global head of Talent Mobility Consulting at BGRS, noting the focus is on contribution to business growth and how mobility can be an effective lever to drive the bottom line. —BGRS (www.bgrs.com) develops and implements comprehensive talent mobility solutions for corporate and government clients worldwide, blending global perspective with local market strength. Its 22nd annual Talent Mobility Trends Survey reflects input from more than 120 talent mobility human resource professionals, representing more than 12 million employees worldwide.

Changes Made/Planned to Mobility’s Alignment to Other Functions in the Organization

Changes Made/Planned to Enhance Mobile Employees’ Experience

Improving career management and repatriation

43%

Develop mobility intranet pages/portals

55%

Integrating assignment-specific goals and evaluation

42%

Work with leadership to promote mobility

52%

Increasing integration with the HRIS technology

39%

Launch employee satisfaction surveys/focus groups

51%

No changes to mobility’s alignment to other functions

21%

Increase transparency into the career benefits of mobility

46%

Scaling compensation/benefits to assignment value

19%

Improve frequency of employee communications

43%

Optimizing leadership development programs

18%

Invest in employee-facing technology/apps

39%

Formalizing candidate selection process

18%

Set up a mentor/sponsor program

39%

Implementing global competency assessments

14%

Publish more success stories

29%

No changes to enhance mobile employees’ experience

10%

Other

8% (Source: BGRS. Respondents provided multiple answers.)

Other

0% (Source: BGRS. Respondents provided multiple answers.)

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Generational Transformation: Interest in cross-border employee mobility is trending. Of the 10 oldest Fortune 100 CEOs, only two have taken international assignments, but among the youngest 10, eight have worked outside of their home country. bgrs.com


MINDING THEIR BUSINESS

Glenn Hickman: Advancing Sustainability Practices Hickman’s Family Farms revolutionizes the egg carton by Claire Natale

FARM FRESH

Glenn Hickman, president of Hickman’s Family Farms, comes from a long line of innovators. In the 1940s, the first generation of Hickman’s Family Farms, Nell Hickman — along with her husband, Guy — began their backyard chicken coop with 500 chickens and a back-porch store. A savvy businesswoman, Nell used her hens’ freshly laid eggs for trade and extra income. Back then, acquiring produce and dairy was not as easy as it is today, but fresh eggs were in high demand. Nell built individual cages and coops to improve egg production and Hickman’s flock continued to grow. In 1957, Nell and Guy’s son, Bill, married Gertie. With Gertie’s experience in her father’s store and time on her hands, she became a 50/50 partner with her mother-in-law and the women continued to expand the business. As the years went by, the flock grew by five children: Matt, Glenn, Billy, Clint and Sharman. Today, Hickman’s Family Farms is led by Glenn, Billy, Clint and Sharman and is the largest egg producer west of the Rockies. In its fourth generation of Hickmans, the enterprise continues to innovate and expand while identifying that growing as a company means recognizing consumer needs. It is the fourth generation, in fact — Glenn’s and Billy’s sons — who have led Hickman’s recent expansion of cage-free options, opening its first cage-free facility in 2016. For Hickman’s, adopting technology and automation has gone hand in hand with growth. The company has always prioritized sustainability and minimized waste by repurposing and recycling waste streams. Today, Hickman’s produces its own feed for hens, collects broken eggs for limestone and

• Hickman’s Family Farms was founded in 1944. • Four generations of the family have worked at the farm or continue to work at the company today. • Hickman’s is the largest egg producer west of the Rockies. • Hickman’s produces 2 billion eggs in Arizona each year. • The company opened its first cage-free facility in 2016 and is continuing to build new barns and convert old facilities into cage-free environments.

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protein powder production, and turns manure into fertilizer that can be used in many applications, including treating organic lettuce greens. Hickman’s most recent advancement has come in the form of a new egg carton. Always looking to become more environmentally conscious, Hickman’s began looking for ways to shorten packaging supply lines. Keeping sustainability in mind, Hickman’s sought to shake up an egg industry standard — the egg carton. Egg cartons have remained virtually unchanged since their debut. That is, until Hickman’s came along. The 100-percent post-consumer recycled PET plastic egg carton debuted in 2016, and is the first of its kind in the egg industry. The carton uses about three recycled plastic soda bottles to make a 12-count egg container, and five bottles to make an 18-count container. The cartons save millions of water bottles and soda bottles from landfills each year and turn them into a practical, sturdy product that cuts down on waste. For an egg producer, the carton is one of the most important parts of the business. Since Hickman’s has always striven to turn waste streams into a value-enhanced product, choosing recycled plastic for a new container was an easy choice. Perfecting the new carton didn’t come without challenges, but once completed, it was more durable than pulp or foam containers, resulting in less breakage — and therefore less egg waste. Plus, the transparent package allows consumers to see the eggs without opening the carton. The new carton also gives Hickman’s Family Farms flexibility when it comes to packaging. The smooth surface allows Hickman’s to print and adhere labels for custom orders, reducing carton ordering costs and storage space — an added benefit to the company’s sustainability efforts. At Hickman’s, the chicken and the egg come first. As Hickman’s Family Farms enters its 73rd year, the company will continue to improve sustainability and enhance the consumer’s egg purchasing experience. Hickman’s Family Farms hickmanseggs.com

CAGE-FREE EXPANSION Consumers have become increasingly interested in where their food comes from and demanding the highest quality. Recognizing this, Hickman’s Family Farms has expanded its cage-free offerings.


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PROPERTY, GROWTH AND LOCATION

BY MIKE HUNTER

The Downtown-Midtown Trifecta A new wave of office, retail and multifamily activity has arrived in downtown and midtown Phoenix. The combination has created a self-supporting trifecta that is transforming these urban submarkets into true live-work-play environments, and attracting high-quality office tenants in droves. Significant leases from tenants like Quicken Loans, Uber Technologies, Spaces and Integrate Software have helped to bring the downtown submarket to a 16.8 percent average vacancy rate for all classes of office space and 13.5 percent for Class A space, and midtown to a 26.5 percent average vacancy rate for all classes of office space, and Class A midtown space at an even lower 21.7 percent. Why the influx of market leaders committing themselves to the core? In large part, it is because these areas are quickly and strategically positioning themselves to give employees — and employers — the amenities they want most, from bright, open, creative office space and quick access to Light Rail to close-by retail, dining, arts and entertainment attractions. Add to this a steady stream of educated young workers graduating each year from Arizona State University’s downtown campus, and more than 5,000 for-rent apartment units either in permitting, under construction or recently completed, and we have a nearperfect formula for office market success in a true live-workplay environment. To remain competitive in this high-demand environment,

• Texas Roadhouse, adding Scottsdale to the 17 other Arizona locations it operates

• Starbucks • Common Ground, a health and wellness center • Foosia Asia Fresh, a fast-casual eatery offering Southeast Asian street fare • Happy Feet, a nail salon Stan Sanchez, Larry Miller and John “JK” Jackson of Colliers International in Greater Phoenix are the project’s exclusive leasing/sales agents. colliers.com/en-us/ greaterphoenix

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GET REAL

(before renovation)

Arizona Center Adds Hotel

24th at Camelback Refresh

Arizona Center, Phoenix’s original downtown

At 24th at Camelback, in the prestigious

entertainment destination located at

Camelback Corridor, a new monument

3rd St. and Van Buren, plans to add an AC

sign and refreshed street landscaping are

Hotel by Marriott to the property. Arizona

part of exterior ground-floor renovations

Center owners Parallel Capital Partners is

that are expected to be completed

partnering with Las Vegas-based LaPour

this month. “Hines is investing nearly

Partners on the 200-key upscale, urban-

$1 million in improvements at the 24th at

inspired select-service AC Hotel Downtown

Camelback campus as part of our continued

Phoenix at Arizona Center, with a classic yet

commitment to ensure we stay current

modern design. Its 15 stories will include a

with trends and respond to the needs

fitness center and the only rooftop bar, pool

of our tenants,” says Michelle Brown,

and lounge in Downtown Phoenix. The hotel

general property manager. The design

overlooks a three-acre urban park that will

will give tenants more convenient access

be lined with exciting new restaurants, retail

to the buildings, and the circular drive

and entertainment at the heart of Arizona

between the buildings will be removed to

Center. arizonacenter.com

accommodate 30-minute visitor parking

parallelcapitalpartners.com

spaces. hines.com

The average vacancy rate for the Downtown Phoenix submarket is 16.8 percent; for Midtown Phoenix, 26.5 percent. jll.com/phoenix/en-us

Stay and Stay The Block at Pima Center, being developed by MainSpring Capital Group, has attracted a dual brand set of Hilton hotels. Sharing common registration and lobby space, Tru by Hilton and Home 2 Suites will offer a combined 166 rooms. Tru by Hilton is a new hotel experience that was designed to be vibrant, affordable and young-at-heart. The lobby space provides opportunities to work, play games, lounge or eat. The public lobby offers semi-private, sound absorbing alcoves to work, or collaborative space to work with others. Home2Suites by Hilton is a stylish, extended-stay hotel concept, with suites that offer sizable accommodations for work or sleep. mainspringcapital.com

Photos courtesy of Parallel Capital Partners , Hines and MainSpring Capital Group (bottom, l to r)

In addition to the Hilton hotel duo (see Get Real’s “Stay and Stay”), The Block at Pima Center is quickly attracting tenants. Five retail tenants announced within the first 30 days of construction are:

office building owners are actively repositioning their properties with amenities such as upgraded lobbies, contemporary workspaces and shared tenant spaces (think conference rooms, cafés, tenant lounges and workout facilities). Other unique amenities have included an on-site wine store and a top-floor bar with sprawling skyline views. These refurbishments are key to attracting modern office users, and have encouraged rent growth in both submarkets. In midtown Phoenix Class A, rents currently sit at an average $24.75 per square foot. In downtown Phoenix, Class A rents average $32.32 per square foot. In JLL’s Q3 Office Market Report, we posed the question: Is the downtown office submarket poised for a renaissance? The confluence of building amenities and tenant interest indicate that this renaissance is not only already underway, but is quickly filling the vacant space that remains in prime Central Business District buildings. A lack of office product — with little new office construction on the horizon — has the power to tee up downtown and midtown for an even stronger leasing environment at year-end and well into 2018. —John Bonnell, managing director, and Brett Abramson, senior vice president, in the Phoenix office of JLL (www.jll.com/phoenix/en-us), specializing in agency representation in office properties for both existing and ground-up development


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INNOVATIONS FOR BUSINESS

TECH NOTES

by Mike Hunter

Technology Is Improving Expense Report Auditing by Ethan Laub and Maggie Mae Joy

Technology Graduate Programs The continued acceleration of technology requisites in today’s workforce has led to a huge gap in qualified talent to fill available jobs. Seven of the top 10 “Best Jobs of 2017” identified by Indeed, the world’s No. 1 job site, are in computer science. To meet this rising need, Northcentral University, an online and graduate-focused university serving professionals globally, recently launched four graduate degree programs within its School of Technology. Doctor of Philosophy in Computer Science: This program helps students understand how computers function and communicate from the inside out. After the completion of the 50-month program, students will be prepared to participate in industry and academia as thought leaders, researchers, solutions architects and executive managers. Master of Science in Computer Science: This program focuses on computer science theory, computing problems and solutions, as well as the design of computer systems and user interfaces from a scientific perspective. This 23-month program includes training skills and knowledge directly applicable to solving real-world technical problems. Master of Science in Cybersecurity: The program curriculum is a balanced combination of theoretical and applied skills knowledge of cybersecurity, preparing students to apply hands-on skills as well as effectively evaluate, identify and prevent security risks, and provide strategic solutions within technology leadership roles. Master of Science in Information Technology: This program provides students the broad foundational skills and technical expertise required to lead teams in information technology-related roles within private or government organizations. The 23-month program includes education in in core technical areas and electives to personalize the training for specific needs and interests. To evaluate and align the technology coursework to labor-market needs, NCU has created a technology-focused Program Advisory Council comprised of tech industry stalwarts from information technology, digital media and learning technology. ncu.edu/school/school-technology

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How common is expense report fraud? According to the Association of Certified Fraud Examiners’ “2016 Report to the Nations on Occupational Fraud and Abuse,” 85 percent of all business fraud schemes involve some form of asset misappropriation, with expense fraud making up about 14 percent of such schemes. Obviously, this is a costly problem. Before the prevalence of expense management automation, there were few good solutions — only tradeoffs. Now, advanced expense management systems can identify and flag questionable reports, so businesses can focus their accounting and auditing resources on higher-risk reports instead of having to choose from the old menu of unpalatable options. As these systems grow in functionality and companies become more sophisticated in their use of them, businesses can stop most expense reporting fraud without incurring huge costs.

LEVELING UP

The next level of sophistication is being able to stop an end user before he or she even submits a report that would be flagged according to those criteria. Then, instead of accounts payable having Ethan Laub is director of product management with Coupa Expenses (www.coupa.com/software/expensemanagement). He joined Coupa (www.coupa.com) in 2015 when Coupa acquired TripScanner, an open booking technology company that he founded. Prior to that, he was a director of account management for American Express Global Business Travel.

The Association of Certified Fraud Examiners has reported that in past years approximately 14.5 percent of all asset misappropriations investigated involved expense reimbursement fraud.

to audit flagged reports and send back those that are non-compliant, the onus is on the submitter to get it right in the first place.

THE ULTIMATE

When all the information about expense reporting policies, accounting review triggers, user behavior and other fraud indicators are collected and fed into a smart algorithm, it can do things such as come up with a fraud risk score that’s based on many data points, beyond just what the system has been told to flag. This enables businesses to use intelligence and best practices and benchmarks from across a larger customer base and applying them to reports, so they can apply that additional layer of security without needing an expert in fraud detection. Fortunately, with automated expense systems, none of this has to be mutually exclusive. Instead of throwing in the towel or devoting a ton of accounting resources to reviewing reports, business owners can use a smarter, more modern approach to detecting and auditing high-risk reports so they can spend their time on more strategic things.

Maggie Mae Joy is a product manager for Coupa Expenses (www.coupa.com/software/expensemanagement). Prior to that, she was a senior implementation manager, leading more than 30 successful Coupa implementations.


SAME FIRM, NEW NAME. THE FRUTKIN LAW FIRM IS NOW RADIX LAW.

The word Radix in Latin means “root”: the root of a tree, the root of knowledge, or the root of a number. Our new name reflects our values. We are a business law firm that knows the law, helps our clients pursue opportunities and deal with challenges, and we are rooted right here in Arizona.

15205 N. Kierland Blvd., Suite 200 Scottsdale, AZ 85254 Phone: (602) 606-9300 radixlaw.com

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YOUR BENEFIT IN BUSINESS

WELL WELL WELL

by Mike Hunter

Bayless Implements Self-Serve Pharmacy Kiosk The APM Pharmacy kiosk, powered by MedAvail Technologies, is an innovative self-serve pharmacy kiosk solution that supports the dispensing of prescription drugs and over-the-counter medications under the full control of a remote pharmacist in a fast, secure and convenient manner. Use of the kiosk has been adopted by Bayless Integrated Healthcare, a leader in combining physical, emotional, social and addiction health services, in its Integrated Health Center and Dobson Ranch locations. The self-serve kiosk allows Bayless patients to fill a prescription immediately after being treated, dispensing in as little as 90 seconds from more than 700 medications. It saves an added trip for patients who are already feeling unwell, notes Ed Kilroy, CEO of MedAvail Technologies. And, in addition to “strengthening our mission to meet patient’s healthcare needs all under one roof,” it will increase medication adherence,” says Bayless CEO Justin Bayless. baylesshealthcare.com • medavail.com

Smart Single-Use Biometric Patches Qualcomm Life, Inc. has designed and developed breakthrough reference designs for cost-effective, connected and medical-grade biometric patches that will enable a multitude of intelligent care models, from perioperative care to assessing the impact of therapeutic interventions. Designed to allow healthcare professionals to monitor patients across the care continuum with access to near real-time data, the patches measure a variety of biometric parameters — including clinical thermometry and sophisticated motion measurements — enabling care providers to make better-informed decisions. Benchmark Electronics, Inc., a leading global provider of integrated electronics manufacturing, design and engineering services, will license the reference designs and serve as the device design and manufacturer of record with the FDA for those sensors. The patches were developed on Qualcomm Life’s 2net™ Design platform, which leverages Qualcomm’s expertise in developing innovative reference designs for wireless, power-efficient, small-integrated modules to create smarter, more affordable and intuitive connected medical devices. qualcommlife.com

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Employers Can Lower Diabetes Risk According to the Centers for Disease Control, the average business owner spends roughly twice as much on employees with diabetes as on healthy employees. But those costs are shrinking thanks to a little-known and rarely used wellness program that was designed to help employees get healthier. The latest version of the CDC’s Diabetes Prevention Program, Prevent T2, was launched last year by the CDC to prevent or delay Type-2 diabetes. The program is frequently covered by insurance, so the cost to employers is minimal. Sadly, many employers still don’t know about it or the incredible impact Prevent T2 can have on its workforce. Prevent T2 is already proven to help employees get healthier — employees who complete Prevent T2 lower their risk of developing diabetes by 58 percent while their healthcare costs and absenteeism decline.

WHY PREVENT T2 IS FREQUENTLY OVERLOOKED

It has always been difficult for employers to identify which employees were most at risk for diabetes. As a result, employers have struggled to help the employees who could benefit most from this wellness program. But now, thanks to Prevent T2, employees can more easily identify if they are at risk for diabetes through an easy-to-use online quiz. The quiz contains seven simple “yes or no” questions that can help employers evaluate an employee’s health. Employers who include the quiz in their benefits package can learn which employees will benefit most from this wellness program.

HOW PREVENT T2 WORKS

Prevent T2 is an updated version of the Diabetes Prevention Program, which was developed by

The Centers for Disease Control has developed Prevent T2, part of its National Diabetes Prevention Program, as a resource for businesses, who incur, on average, a healthcare cost of $13,700 for each diabetic on their payroll.

the CDC in the early 2000s. It includes a new curriculum and covers topics that promote healthier lifestyles and long-term weight loss. The curriculum engages employees by developing strategies for monitoring diet and physical activity with the goal of losing five to seven percent of their total body weight over 12 months. The first six months of Prevent T2 teaches participants how to stay committed to the program and how to achieve their goals. The participant guidebook outlines simple lifestyle changes such as taking the stairs rather than the elevator or substituting water for soft drinks.

PREVENT T2 ON MOBILE DEVICES

Because Prevent T2 requires weekly in-person sessions for four months, time has frequently been one of the biggest obstacles to completing Prevent T2. Fortunately, Prevent T2 is now available on mobile devices through CDC-certified virtual providers. Earlier this year, Noom Coach became the first digital health provider to receive full recognition by the CDC for Prevent T2. The mobile wellness program enables employees to take advantage of Prevent T2 literally from their pockets — on their cell phones. Yes, there’s an app for that! A live human coach monitors all of the user’s activity, offering inspiration, guidance and advice so employees can conquer diabetes. Prevent T2 typically costs just a few hundred dollars per participating employee, compared to the average healthcare cost of $13,700 for one diabetic on the payroll. —Denise de la Rama, director of operations and finance at Noom, Inc. (noom.com), has an insider view on how wellness programs are bought and sold through insurance brokers, while educating employees on diabetes prevention. National Diabetes Prevention Program cdc.gov/diabetes/prevention


LAW MATTERS TO BUSINESS

When Key Employees Leave to Work for a Competitor

Ten Steps Employers Can Take to Protect Themselves by John Egbert

against Securi ty

MAGAZINE

Breaches

DEC. 2017

IN BUSINESS

Best Practic es

DIVERSITY & INCLUSION

Diversity & Inclusion Learning What We Don’t Know

When an

DECEMBER 2017 • INBUSINESSPHX.COM

THIS ISSUE

Arizona Technology

Council

Bolts toEmployee Competitor Conflict Managemen t Is Participa tive Global Mobility as Strategic Priority $4.95 INBUSINESSPHX.COM

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

John Egbert is chair of Jennings, Strouss and Salmon’s Labor and Employment Practice Group. He is also currently a member of the firm’s management committee, and previously served as General Counsel. jsslaw.com

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At one time or another, most employers are going to experience the departure of one or more key employees to work for a competitor or to start a new competing entity. Such a departure can have significant adverse effects on the employer’s operations and success. Sometimes, the departing employees will have engaged in damaging misconduct leading up to their departure. However, there are steps that employers can take both in advance and at the time of such a departure. Here are ten of them. 1. Inventory the company’s intellectual property that gives the company a competitive advantage (trade secrets and other confidential and proprietary information). 2. Determine which employees have access to that information and have them sign non-disclosure and confidentiality agreements. Such agreements should clearly describe the important intellectual property to be protected, have the employees acknowledge the confidential nature of that property, and have the employees agree they will never disclose that information to third parties, either during their employment or after it has ended. 3. Consider using other restrictive covenants, such as noncompete and non-solicitation provisions where appropriate. 4. Reassess periodically. Promotions may change the information to which particular employees have access, and thereby change the need for some kind of contractual protections. What used to be confidential may not be now, and new, highly confidential information may be developed over time. 5. Whatever safeguards and procedures are developed, make sure they are actually implemented. 6. Establish an exit interview procedure for departing employees. During that procedure, attempt to learn where the

employee will be working next and remind the employee of his or her contractual obligations. 7. Secure computers, cell phones and other devices used by the departing employees, as well as back-up tapes, security data (including surveillance camera recordings and access logs) and any other information that might help the company determine (and, if necessary, prove) whether the employees engaged in misconduct leading up to their departure. 8. Where appropriate, disable auto-delete functions to avoid losing helpful evidence. 9. Interview witnesses, including co-workers left behind. Particularly when a group of employees depart together, there will frequently be one or more employees who were invited to join the departing group but chose not to go (or who asked to join the departing group but were not invited). These individuals will often be the source for a lot of critical information. 10. If there was misconduct by the departing employees (or if there is reason to suspect misconduct), get in-house or outside legal counsel involved. The law generally protects employees’ right to change jobs and disfavors restrictions on their ability to compete with former employers. However, the law also provides significant protections for employers. Departing employees may not actively compete while still employed, they may not plan their move on company time, and they may not violate enforceable restrictive covenants even after their departure. Putting appropriate protections into place in advance and being ready to act quickly when a departure occurs can go a long way toward protecting the employer’s assets and successful ongoing operations.

Employees can be the most valuable asset to any company, but don’t always have the firm’s interests in mind when looking to work for a competitor in the same industry. Keeping a cool head when it comes to intellectual property is a great way to start, but there are plenty of other ways to manage a less-than-gracious goodbye.


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


y t i d s n r a e v i D


: n o i s u l c n I

w o n K t l ’ a i n f soc o D o s t e n e W le em ness t a e y r b a h d aw e h W t c e u k g o r t a n s i m i e d n lin s an r m a s o e t e t L o sn sh b u r a e scio e M h T on Ann c ae R by


DIVERSITY IS A SOCIAL FORCE that continues to gain momentum in the workplace as well. Corporate programs are expanding and gaining a diversity of their own as we recognize identifiable subgroups in our country’s “melting pot.” What was once just race and gender now also includes military veterans, the LGBT community and other groups with identifiable specific needs and/or points of view. “The commitment to diversity and inclusion began in the 1960s with passage of Civil Rights laws and movements that recognized our country was becoming more diverse,” explains Joel P. Martin, Ph.D., president of Positively Powerful/Triad West Inc. and an international speaker, trainer and coach. And in today’s business world, that commitment has created a relatively new office in the C-suites: Chief Diversity Officer. The existence of a chief diversity officer developed out of an awareness of the purchasing power of difference segments of the consumer population, Dr. Martin explains. Citing the black consumer market’s purchasing power today at $1.7 trillion, she observes, “That’s a lot of money to ignore.” In addressing issues of diversity and inclusion, it’s important to note there is a distinction between the two. As Dr. Martin explains in her Guest Editor letter, “diversity” focuses on the existence of varied groups, and “inclusion” focuses on creating a culture in which the people of the varied groups work with one another. In this realm, generational differences have emerged as a growing concern in the workplace. “People are wanting to have presentations on this topic,” Dr. Martin shares. Noting that now is the first time in American history that there are four or five generations in the workforce at the same time, she observes, “Each has its own distinct, complex way at work and way of communicating.” And she makes the generalization that the younger generations are far more inclusive. This underscores another important distinction in the discussion of diversity and inclusion: generalizations vs. stereotypes. Generalizations (saying something is true in general) are based on science and recognize the existence of variation within the group; stereotypes (saying everyone is or has some characteristic) are based on perception.

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Diversity Improves Business “Focusing on diversity and inclusion helps all aspects of our mission. A diverse group who feels included can bring creativity to our research, to our educational programming and to our conservation efforts. An inclusive environment embraces everyone, and we can truly be the ‘community’s garden,’” says MaryLynn Mack, COO of the Desert Botanical Garden and director of its human resources diversity and inclusion initiative. And the Garden has benefited from having five generations working at the institution at the same time lending their voices in planning committees and long-range planning — and strengthening media campaigns. “Millennials allowed us to incorporate more technology in everything we do, from ticket sales to marketing. Younger employees talked about what strikes their fancy to have in exhibits. These were the voices that had us add art in the garden — which is not usual for a garden, so it gave us a whole new audience.” Gardens, historically, catered to older groups, those specifically interested only in gardening, but, Mack relates, “When we brought in art — the year we brought in Chihuly — we doubled the attendance, the member base more than doubled (from 12,000 to 30,000), and people were not coming for just one time.”

Barbara Whye, Intel’s vice president, human resources chief diversity and inclusion officer, sees the same experience in the technology and manufacturing environment of Intel. Observing that diverse and inclusive teams with diverse perspectives and experiences are more creative and innovative, she says, “It allows Intel to be even more competitive, because we have teams working on products that more accurately mirror our consumers.” Through diversity and inclusion, companies have the advantage of different points of view, providing many different solutions to any challenge, affirms Dr. Martin, calling diversity and inclusion the most progressive way to work. But it takes both parts to make an adequate whole. Diversity refers to differences; inclusion refers to the context of how a company operates — the confluence of its recruitment, retention and promotion practices. A company may have an inclusive corporate culture in which everyone is welcoming and open to hearing what everyone else has to say, but not be diverse — for instance, everyone having same socio-economic profile. At the other extreme, a company may have a global workforce and be driven by a global business model, but not necessarily be inclusive. Such companies, says Dr. Martin, would experience low retention and correspondingly high turnover.

Building D&I into Operations Part of the Garden’s plan to strengthen its D&I efforts was to focus on recruitment. “This allows us to ‘work from within,’ knowing that having diverse representation will help to organically change our visitorship,” Mack explains. Essen Otu, senior director of diversity and community affairs at Mountain Park Health Center, explains his approach is to think about dimensions of diversity “in relation to who we serve and who we employ, what unique needs our stakeholders have, and how we can better understand and be prepared to meet those needs.” He shares an issue identified early on in developing MPHC’s D&I program, prevalent at least at its largest facility: The community was heavily African-American but felt MPHC was focused more on serving the Hispanic and Latino community. Through the program now in place, MPHC addresses each dimension of diversity through a multitude of strategies that include training, dialogue that occurs through diversity site

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councils and an annual summit, diversity lunch and learns, and internal and external messaging. “And even through community visioning when designing facilities,” Otu says, “to better understand how multigenerational, families, individuals with disabilities, LGBT patients, or limited English speakers will navigate our health centers.” Whye describes Intel’s current efforts, which started in January 2015 with a bold goal to reach full representation of women and underrepresented minorities in its U.S. workforce by 2020 and was augmented by the company’s commitment of $300 million to support this goal and the broader goal of improving diversity and inclusion in the entire technology industry. “My vision is for Intel to have and sustain an even more vibrant, representative and inclusive culture,” Whye says. “I am an engineer by training, so my approach to solving diversity and inclusion challenges is by looking at the holistic system and addressing issues in all aspects

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of recruitment, onboarding, career development and retention with various internal and external programs.” And Derrick Hall, president and CEO of the Arizona Diamondbacks, shares, “We determined early on that it needed to be all encompassing — the interviewing and hiring of diverse candidates and employees, the promotion of those employees from within, the training of the importance of these practices to the workforce, the partnering with third-party vendors minority-owned, and the bridging of generational gaps through education and understanding.” The Garden adopted the same all-encompassing approach, surveying both staff and visitors. “You can’t have diversity without a culture of inclusion. You have to start there first; it breeds diversity,” Mack says. She sits down regularly with each department — without the department head present — to ask, “What’s on your mind? What’s not working? What can we do better?” “Don’t assume the staff is happy because a few people tell you that or because you have department heads who are being productive and giving you the results you want,” she says. Regularity of the ongoing program is key. As Hall observes, “It is far too easy to assume the practices continue to be prioritized without frequent culture and inclusion internal auditing.” There may be challenges to attaining an inclusive culture, but Mack relates that, in her experience, “For the most part, once we told people the ‘why’ behind the change, then they were on board to be part of it.” In Mack’s opinion, “It always comes back to communication.” But that can be a challenge of its own, making sure communication is clear, consistent and includes everyone —

especially when employees are separated physically and have a varied work schedules. “We’ve had to be creative,” she says. Finding a variety of ways to get the word out to everyone and make sure all voices are heard includes having representation from all levels of the organization in the hiring process, getting important information out in as many ways as possible (such as digital, staff meetings and cascading communication) and finding ways everyone could come together to celebrate accomplishments and get to know each other outside of work. “Employee engagement and contribution has also been a major part of our success,” Otu relates, noting MPHC’s Diversity Site Champions and councils at each of its large clinic sites have provided a mechanism for ongoing feedback, idea generation, connection and engagement. “This has also allowed us to recognize the contributions of our employees who have helped build a welcoming and inclusive culture. Rewarding those who model the behavior helps to establish organizational values that permeate and show up when you least expect them. For example, one of our Diversity Site Champions was recently highlighted in an employee spotlight and said, ‘The attention to detail, the diversity of our staff and the emphasis on inclusiveness is really awesome. Being able to come together and make a connection with someone from another background is really special. It’s what being human is all about.’” Specific parts of MPHC’s program include a weekly memo with D&I-related content; lunch and learns; diversity site councils that meet quarterly and provide a forum for an ongoing dialog of ideas and concerns, to engage in how people are experiencing the organization; and diversity and inclusion assessments, to measure progress points and gather feedback.

The Diversity Officer An emerging trend is companies establishing a management position of Diversity Officer. Shares Otu, “The impact of having a full-time, high-level role that reports directly to the CEO of the organization has been critical to our success.” He notes the ability to have the needed resources, influence, and autonomy to build a culture where diversity and inclusion are valued takes time and resources. “Having a highlevel role allows diversity and inclusion to be in the strategic conversation. For example, my role in growth and expansion has been important in moving us closer to understanding the diverse needs of our patients in order to build more patientand community-responsive facilities. Understanding the need for consistency and resources needed to build this type of culture requires being at the appropriate level of leadership and decision-making.”

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Whye believes having someone with the title of Diversity Officer can ensure ownership, accountability and results across the organization. But it doesn’t have to stay with a single office. “My goal as a leader is to ensure everyone in the company is a ‘diversity officer’ and has strong diversity and inclusion acumen as a key component of their leadership skills. Diversity is not a side activity and should be integrated in all aspects of the talent management lifecycle.” Otu also emphasized the importance of having buy-in from other members of the senior leadership team in order to effect change. “For me, I knew we had made headway when others began bringing up diversity and inclusion factors in their conversations and decisions. It’s difficult being an army of one, so getting as many champions who value diversity and inclusion is critical in communicating, scaling and making change stick.”

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Challenges “The only challenges came early on years ago when new policies and priorities were introduced and stressed,” Hall says. “I believe it has become much easier over the years as a younger and more educated workforce seems to be inherently more understanding and inclusive.” Calling it the “curse of knowledge,” Mack observes, “When you make a change, it’s always harder to get people who are already there on board. New people coming in don’t know any other way.” To that point, two competencies all employees at MPHC are evaluated on are diversity and cultural adaptability, according to Otu. “We think about our diversity and inclusion work as mission-critical and also recognize that we are introducing change frequently. That change is something people must understand, buy into and expect to

sustain. This, ultimately, results in a culture over time.” At Intel, Whye says, “We continue to achieve our hiring diversity pipeline goals, but retention is where we have the greatest opportunity to learn and provide solutions.” In 2016 Intel introduced the retention Warmline to provide employees with additional support when they find themselves struggling with issues or concerns about staying in their current job or leaving Intel altogether. As of last summer, when she was interviewed for this article, Whye says Intel has processed more than 6,500 cases, of which 91 percent are still at Intel. “We proactively use the data collected from the Warmline to create diversity playbooks and interventions, which enable business units to look at their unique organizational challenges and see exactly where they need to improve.”

Impacting Inward and Outward Otu believes the impact of a diverse workforce and an inclusive culture shows up in the care MPHC provides its patients and the satisfaction of its employees. “We have had generations of families loyal to Mountain Park over our almost 40-year history.” And, after almost eight years of conducting annual diversity and inclusion assessments, he has found the employees feel increasingly valued and respected. “As a matter of fact, when asked, ‘Do you feel valued and respected for the diverse culture(s), perspectives, beliefs, ability/disability, language(s) and opinions you bring into the organization?’ 87 percent of our employees say yes. This, and other markers of impact and engagement reinforce the meaningful nature of what we do and make us proud to be part of a larger team that creates this culture.” Otu also makes the case for D&I efforts to extend externally as well. “They should extend into every facet of our work, including vendors and suppliers who know we are actively seeking women, minority and other underrepresented business enterprises to help fill our goods and service needs." And he adds, “Supplier diversity is an area that requires a strong partner on the purchasing and supply side as well as a broad organizational understanding of the benefits and value having a divers vendor and supplier base brings.” Among the benefits he cites are sources who can “supply something that’s outside the usual” or are able to “provide [services] in a different way”; building a relationship — which leads to better customer service; and helping some suppliers to, themselves, grow as a business.

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“It absolutely must be a focus both internally and externally and must be sincere and genuine,” Hall asserts. “We have ambassador and diversity committees we have formed with community leaders to provide ideas and advice, while holding us and our promises in check.” Whye believes creating an inclusive supply chain is an important way to extend Intel’s diversity efforts to the global communities where it operates. “The innovation derived from diverse-owned businesses adds to our competitive advantage while our spending results in the economic empowerment of the diverse communities we source from,” she says. Relating that Intel, in 2016, surpassed its goal to spend $400 million with diverse-owned suppliers, reaching $555 million in diverse spending, she says, “Each year, we are increasing spending to achieve our goal of $1 billion in annual spending by 2020, reflecting a sustainable change in our global supply chain.” In sum, says Hall, “Diversity and inclusion contribute immensely to our culture of acceptance and family. We feel we are better served with individuals from all diverse backgrounds and opinions. It becomes a true competitive advantage to do business with thirdparty vendors and companies owned by women and minorities, and becomes an instant point of pride when these hiring and vending objectives result in success both on and off the field.” Arizona Diamondbacks mlb.com/dbacks Desert Botanical Garden dbg.org Intel intel.com Mountain Park Health Center mountainparkhealth.org Positively Powerful/Triad West Inc. positivelypowerful.com

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INNOVATIONS FOR BUSINESS

against Securi ty

MAGAZINE

Breaches

DEC. 2017

IN BUSINESS

Best Practic es

DIVERSITY & INCLUSION

Diversity & Inclusion Learning What We Don’t Know

DECEMBER 2017 • INBUSINESSPHX.COM

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Morey J. Haber is vice president of technology at BeyondTrust. With more than 20 years of IT industry experience and as author, with Brad Hibbert, of Privileged Attack Vectors, Haber joined BeyondTrust in 2012 as a part of the eEye Digital Security acquisition. Currently, as VP of technology, he overseas strategy for both vulnerability and privileged access management solutions. BeyondTrust is a global security company that helps businesses reduce risks against data breach threats. beyondtrust.com

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Why Do We Continue to Have Data Breaches? Is the solution equipment, software or something else? by Morey J. Haber

Data breaches are all around us, as well as other cyber tragedies like WannaCry, Mirai and Petya. Household names like FedEx, Maersk, Deloitte, Equifax, Nuance and Sony have all been victims of recent cybersecurity breaches. The daily press is draining, but there is something that can be learned from all the facts that can help all those involved in security become more secure and, it is hoped, stop the daily barrage of breaches and headline news. First, statistics are great! They are a valuable commodity in a discussion to formalize a point and validate a position. Many times, others will question the source, accuracy or even meaning of a statistic to skew the results. A statistic taken out of context, or viewed on its own, can lead to very misleading results. The point is, statistics drive everything from social initiatives to new product development. The methodologies to collect and develop them are a science. They can help us explain why we continue to have breaches. So, what are good sources for statistics? Security professionals may turn to vendors, analysts or the government for results. Cybersecurity company BeyondTrust is one of those vendors and produces statistics like the yearly Verizon Data Breach Investigations Report. While the data is compelling, in the end users are still just arguing with percentages, case studies and data that is quantifiable normally as a single sentence. For example, 76 percent of users admit not changing default passwords. The fact speaks for itself, but there is no rhyme or reason why this is done, or acknowledgement of why the security best practice of changing them is being ignored. The answer is above the science of statistics. It is due to user behavior and begins to explain our problem. In a recent international survey called “The 5 Deadly Sins,” BeyondTrust discovered and confirmed many of the security statistics that have been mentioned in this article, such as administrator rights and lack of security knowledge. They make valid arguments for peers to discuss the state of privileged access but also revealed an interesting trend about user behavior that was quantifiable. In lieu of just asking, “Do you

Data breaches are often caused by one or more of these human traits: apathy, greed, pride, ignorance and envy.

change default passwords,” lead-in questions help reveal why and highlight the user behavior aspect of these problems. For example, one of the questions confirms a specific finding by asking, “How frequently have you experienced a problem due to insecure security practices?” While this is not a trick question, it implies that the respondent to the security questions knows about an issue, the issue is not resolved, and it has become a liability for the organization. Using follow-up questions, user behavior can be deduced for the security problems, and their corresponding statistics represented in the survey. This leads to a conclusion that five human traits are the reason breaches continue to occupy our daily news: Apathy. Specifically, among password practices, organizations believe the threat level is highest for users sharing passwords with other users (79 percent). While organizations are generally well aware of the perils of sharing passwords, a relatively large number of respondents (22 percent) report that bad password practices persist. Greed. The practice of allowing users to run as administrators on their machines is recognized by study respondents as the highest threat level (71 percent) among privilege management malpractices. Although the risk is recognized, an astounding 38 percent of respondents report it is still common for users to run as administrators on their machines, and 22 percent of respondents say this practice has caused downtime. Why are end-users still allowed to have administrator rights when it is a basic security hygiene to remove all excessive privileges? Pride. Eighteen percent of respondents claim attacks that combine privileged access with the exploitation of an unpatched vulnerability are common. When combined with eliminating local administrator rights on end users’ machines, properly patching system vulnerabilities can close off most of today’s commonly reported attack vectors like ransomware. These threats thrive on system weaknesses and excessive access rights in order to move laterally. Ignorance. Sixty-eight percent of respondents consider least privilege on Unix/Linux an important PAM


BETTERING YOUR BUSINESS function. While 86 percent of respondents believe their Unix/Linux environments have the highest level of protection, 54 percent of respondents still run Sudo on at least one Unix/Linux server, and 39 percent still run it on workstations. Respondents report that Sudo shortcomings include that it is time-consuming, complex and lacks policy version control and synchronization, making it a poor security practice. Envy. A surprising 37 percent of respondents report they are not extending protection to SaaS applications and new cloud initiatives. Privileged access must be secured consistently across all resources, and there is a form of envy that the cloud does not need these initiatives — which is just not true. Considering known statistics for security best practices, we have a very compelling discussion. The conclusions are even more impressive when the user behavior driving them is exposed and communities can be educated that these behaviors are actually creating cyber security risks. Solving the problems based on statistics alone ignores the human element. By creating a dialogue on why a person does things and backing them up with statistics, users are more apt to actually implement a healthy change than with just raw data alone. This could help make breaches a less common occurrence in the end. Therefore, here are five steps that, if implemented, can have a positive impact to address the five deadly sins that lead to the most frequent types of data breaches: Deploy enterprise password management globally across all data centers, virtual and cloud. A centralized password management solution that includes built-in session monitoring will ensure that both important capabilities are met, while providing an automated workflow that makes it easy to use across all accounts and applications. Remove local admin rights from all Windows and Mac end-users immediately. Once all users are standard users, IT teams can elevate a user’s access to specific applications to perform whatever action is necessary as part of their role without elevating the entire user on the machine. The benefit? When the next ransomware variant breaks out, the end users’ machines will be contained, preventing further propagation and making it easier to remediate from an IT perspective. Prioritize and patch vulnerabilities. Attackers exploit asset vulnerabilities, hijack elevated privileges or compromised credentials, and move laterally until they achieve their objective. What’s the first step in that chain? Vulnerabilities. Better prioritization and patching of vulnerabilities boosts a company’s ability to execute smarter privileged delegation decision-making with regards to assets or applications. Replace Sudo for complete protection of Unix/Linux servers. With pressure on budgets, some organizations may be stuck with Sudo, but it doesn’t offer the industrial-strength capabilities that today’s security needs, such as user behavior analytics, fine-grained policy controls, file integrity monitoring, centralized control, activity reporting and more. Unify privileged access management — on the premises, in the cloud — into a single console for management, policy, reporting and analytics. As organizations race to adopt “the cloud,” IT must provide the same level of protection to cloud-based systems as for onpremises systems. Remember, they are someone else’s computers but we must protect them just like our own. Companies willing to implement these practices will help keep themselves out of the news for the wrong reasons, and avoid becoming yet another bad statistic. Changing user behavior is a key step in making this change. The 5 Deadly Sins of Privileged Access Management bit.ly/5-deadly-sins BeyondTrust, Inc. beyondtrust.com Data Breach Investigations Report verizonenterprise.com/verizon-insights-lab/dbir

Seventy-six percent of users admit not changing default passwords.

Disrupt! Compiled by Springwise, the global innovation discovery engine, Disrupt! explains and highlights the best, most disruptive and most useful innovation ideas of the 21st century. The book shares which themes underpin their success and which ideas can best be used to drive creativity in the workplace, office or industry. Springwise has a huge online readership and a reputation as the No. 1 engine for collating and sharing cutting-edge business ideas. This attractively designed book draws on Springwise’s vast archive and the expertise of its editorial team to create a practical, themed overview of contemporary innovation with simple, implementable strategies for bringing more creativity to one’s business or idea and more disruption to one’s industry. Disrupt!: 100 Lessons in Business Innovation James Bidwell

272 pages

Publisher: Nicholas Brealey

On shelves and online

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The Maker Revolution The Maker Revolution is a guidebook to the new industrial revolution. Artisans, crafters, DIYers and inventors around the globe are changing the way we change the world. This book shows how to find one’s place in the revolution. Readers will learn how the movement came about, and how Makers are already shifting paradigms and pushing the boundaries of innovation; discover the people, organizations, and technologies that are catalyzing a re-thinking of industry, business, economic development and education; and explore the ways in which specific types of participation could propel the movement toward greater access and inclusivity. Readers may even discover their own inner Maker, and decide to join the revolution. The Maker Revolution: Building a Future on Creativity and Innovation in an Exponential World Mark R. Hatch

272 pages

Publisher: Wiley

On shelves and online

$30.00

Inspired How do today’s most successful tech companies — Amazon, Google, Facebook, Netflix, Tesla — design, develop and deploy the products that have earned the love of literally billions of people around the world? Perhaps surprisingly, they do it very differently from the vast majority of tech companies. In INSPIRED, technology product management thought leader Marty Cagan provides readers with a master class in how to structure and staff a vibrant and successful product organization, and how to discover and deliver technology products that customers will love — and that will work for the respective business. Through sections on assembling the right people and skillsets, discovering the right product, embracing an effective yet lightweight process, and creating a strong product culture, readers can take the information they learn and immediately leverage it within their own organizations — dramatically improving their own product efforts. Inspired: How to Create Tech Products Customers Love Marty Cagan Publisher: Wiley

368 pages Available: 12/4/2017

$30

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INVESTING IN COMMUNITY

Engaging a Fundraising Consultant – the Why and the How RED FLAGS Proper ethical and professional behavior is important. Be cautious if a potential consultant does any of the following: • Requests to be paid a percentage of funds raised. This can result in major conflict-of-interest problems. • Promises to raise funds on the client’s behalf. Contract fundraisers are not the same as fundraising counsel and fall under different state and federal laws. • Promises to bring a portfolio of big donors. Odds are pretty good that they are peddling these donors to every potential client they have — and won’t hesitate to do so again. • Guarantees an amount they will help raise. The most successful consultants know that fundraising goals are best set collaboratively with the client, and after careful review of internal capacity and external interest.

Richard Tollefson is founder and president, and Michal Tyra is director of client and community engagement at The Phoenix Philanthropy Group, an Arizona-based international consulting firm serving nonprofit organizations as well as institutional and individual philanthropists. phoenixphilanthropy.com

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Engaging the right consultant is one of the best decisions an organization can make. Engaging the wrong one can be damaging. by Richard Tollefson and Michal Tyra

As nonprofit board members and professionals, it can be hard to ask for help. Emotion, pride and passion can be difficult and often cloud the more practical pursuit of enhanced business performance. Additionally, in a sector that often prides itself on making do with less, the idea of “scaling” programmatic and fundraising performance — and paying an outside consultant to lead this charge — may seem daunting. Thankfully, help is out there! Professional fundraising and nonprofit management consultants can provide major value to fundraising operations by helping build internal capacity for sustained, long-term success. They bring years of experience, and a breadth and depth of knowledge that can take organizations to the next level.

WHY ENGAGE A CONSULTANT?

Broad and Deep Experience — Good consultants have spent years, and sometimes decades, working in the field as professional fundraisers or nonprofit executives. Often, they have worked in multiple sectors, with organizations both large and small. They have personal, hands-on knowledge of industry best practices and emerging trends. This is a level of experience and expertise that nonprofits may not have on staff, and these insights can transform the way nonprofits operate. Objective Third Party — Being in the trenches every day, it can be easy to lose perspective. This is especially true in nonprofits, where passion and commitment can sometimes mask organizational issues. As an objective third party, outside counsel is able to wade through the weeds and identify problems that are keeping organizations from reaching their true potential. Additionally, they can deliver tough love effectively. Consultants, especially those with extensive experience, bring a level of respect and frankness that can often break through recalcitrant board members or a stubborn commitment to the status quo. Performance Acceleration — Often, outside counsel can introduce innovative thinking and a level of energy that raises expectations and drives a fundraising initiative forward. This “jump-start” can help reverse declining annual fund performance, help reinvigorate a stalled campaign, or reengage and energize board or staff. Lower Overall Cost — It’s true that, for the uninitiated, the sticker shock associated with engaging a consultant can be jarring. But the bottom line is, overall, the cost of engaging a consultant is not exorbitant and well worth the investment. Why? Because current fundraising challenges are likely beyond the capacity or experience of existing staff to manage. And

cost in salary and benefits to hire on new staff with that advanced expertise is almost always going to be significantly more in the long run. While a consultant may involve higher upfront expenses, the increased internal capacity they generate will more than pay for their expertise.

ALIGNMENT OF CULTURE AND VALUES

Not all consultants are created equal, and far from pushing operations forward, engaging the wrong consultant can actually be counterproductive. It’s important to hire a consultant who truly understands the mission and the unique culture of an organization, and addresses its specific needs and concerns. For example, a small human services organization likely doesn’t want a “fancy suit” who flies in once a quarter from out of town. It wants someone willing to spend some significant time in the office, getting to know its leadership, staff, board and clients. It wants someone willing to dig into the spreadsheets and donor files to assist in crafting next steps and collaboratively work with the organization to find solutions.

SET EXPECTATIONS EARLY

Even the best consultants aren’t miracle workers. They can’t come in, wave a magic wand, and suddenly have major gift donors breaking down the door. The road to sustainable success is long and winding. Successful navigation requires a willingness on the part of the organization to take criticism, be willing to make changes, and have realistic expectations. Additionally, it’s critical that the client and the consultant get on the same page early in the process. Conversations should be had to work out deadlines for deliverables, roles and responsibilities, and expectations for outcomes and communication. Doing this early will not only save headaches later, it will ensure a more productive working relationship and greater ultimate success.

The Giving Institute (www.Givingnstitute.org) offers information on the professional and ethical standards for fundraising consultants. In addition, these organizations provide related resources: Association of Fundraising Professionals (AFP), Council for the Advancement and Support of Education (CASE), or the Association of Philanthropic Counsel (APC).


BY MIKE HUNTER

DECEMBER 2017

Arizona Technology Council and Arizona Cyber Join the Arizona Technology Council and InfraGard Ryley Carlock Threat Response Alliance/Arizona

2017 Cybersecurity Lunch Forum

& Applewhite for this educational forum that will provide actionable solutions for protecting your intellectual property and customer data.

Presented by::

Thurs., Dec. 7 | 11:30a – 2:00p Thursday, December 15, 2016 11:30am - 2:00pm

An opportunity for government and business leaders Event Partners: toASU learn about the threats, vulnerabilities and SkySong Arizona Cyber Threat Response Alliance (ACTRA) 1365 North Scottsdale Road InfraGardand privacy consequences related to dataArizona security Scottsdale, Arizona 85257 matters, this educational forum provides actionable Register in advance and find out about sponsorship opportunities at aztechcouncil.org/cyberlunch. solutions as numerous real-world practitioners discuss their available resources and experiences geared toward helping protect intellectual property and customer data. There will be panel discussion, keynote speaker and lunch. Keynote speaker will be Malcolm Harkins, chief security and trust officer of Cylance, Inc. (www.cylance.com), the company that is revolutionizing cybersecurity through the use of artificial intelligence to proactively prevent advanced persistent threats and malware. Harkins is the author of Managing Risk and Information Security: Protect to Enable, which guides corporate leadership from C-level executives to IT managers through the basics of information security with the goal of more effectively managing risk while also enabling the business to maintain or even increase its competitive edge. Panel presentation of “The Risks and Rewards of 3-D Printing/Additive Manufacturing” will be moderated by ACTRA president and CEO Frank Grimmelmann, with panelists Christopher L. Ross, strategic development manager with Intel; Justin Ryan, research scientist with Phoenix Children’s Hospital; Pamela J. Waterman, contributing editor of Digital Engineering Magazine, “Rapid Ready Tech Blog”; and Dr. Ing. Soeren Wiener, director of technology and advanced operations with Honeywell, Aero Manufacturing Engineering. —Mike Hunter Members: $35; non-members: $50 ASU SkySong – Building 3 1365 N. Scottsdale Rd., Scottsdale aztechcouncil.org

Global Chamber

‘2018 New Business Opportunities in Latin America’ Wed., Dec. 13 | 8:00a – 9:30a Experts in Latin America and around the world will discuss the latest new business opportunities in Latin America and how the 2018 looks for this region. Attendees will hear from a panel of speakers who are right in the middle of the action. The program will start with an overview of the region and then do deeper dives into Peru, Mexico, Argentina, Brazil and many other countries. The event will take place at ASU SkySong, but may also be “attended” virtually from anywhere via a live presentation on Zoom. The link will be provided upon registration.  Speakers will include David Farca, president of International Business Group (www.intbizgrp.com), and Yolany Alvarado, founder and CEO of ProPanama (www.propanama.org/copia-de-inicio). Farca was born and raised in Mexico City, and started his first business in the retail industry selling accessories and gifts during his high school years. He graduated from UI (Universidad Iberoamericana) with a degree in biomedical engineering, which created the opportunity for his second venture in the medical field distributing surgical lasers. Farca’s opinion in designing and specifying digital imaging departments became very well respected throughout Mexico, and he became a business column writer for Diagnostic Imaging America Latina, a Miller Freeman publication. He is also a board member of the Mexican Society of Radiology and the Mexican Federation of Radiology. Alvarado is an attorney specializing in investment relations in Panama, and has broad experience on offshore companies, asset protection, trust and immigration procedures. She is the founder of ProPanama, an organization that helps foreign investors who go to Panama to invest in real estate as well as any other type of investment. The company advises its clients also in offshore corporations, asset protection, immigration services and citizenship in Panama. —Mike Hunter

SAVE THE DATE

Upcoming and notable Mesa Morning Live Jan.

Fri., Jan. 12

12

Live TV talk show in the style of “The Late Show.” mesachamber.org Cross-Cultural Communication in Global Business 2.0 Jan.

Tues., Jan. 16

16

Global Chamber’s multi-metro event invites localization experts to share communication tips for doing business globally and the resources out there for companies to be more successful. globalchamber.org

Members: free; non-members: $30 ASU SkySong 1475 N. Scottsdale Rd., Scottsdale globalchamber.org

DECEMBER 2017 S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 DECEMBER 2017 NOTABLE DATES 17 18 19 20 21 22 23 Dec. 12-20 — Hanukkah

24 25 26 27 28 29 30 Thurs., Dec. 21 —Winter Solstice 31

Mon., Dec. 25 — Christmas Sun., Dec. 31 —New Year's Eve

33 20DEC.1 7 INBUSINESSPHX.COM


DECEMBER 2017 Wed., Dec. 6 & 13

7:00a – 9:00a

Business Over Breakfast Glendale Chamber of Commerce Tues., Dec. 5

Attendees make new connections, exchange leads and referrals, and build relationships to help grow business. Includes a hot breakfast.

8:00a – 9:30a

Executive Breakfast: 5 Things Tech CEOs Can (and Should) Expect from Marketing

Members: $20; future members, one-time attendance: $60 Cucina Tagliani

Arizona Technology Council

17045 N. 59th Ave., Glendale

This 60-minute presentation by Renee and Mark Yeager, of Yeager Marketing, will present answers to the questions that both marketing and tech leaders are struggling with. Attendees will learn how to determine what marketing initiatives will be most impactful for their organization, what new skills are going to be critical for the marketing group to master, metrics that tech leaders and the marketing group should pay attention to, and how to ensure complete alignment between executive leaders and marketing.

glendaleazchamber.org Thurs., Dec. 7

11:00a – 2:00p

6 Steps to Creating a More Valuable and Sellable Business Chandler Chamber of Commerce Attendees will learn time-tested principles of how to grow business, boost sales and increase profits.

Fri., Dec. 8

11:30a – 1:00p

5th Annual Scottsdale Cure Corridor Scottsdale Area Chamber of Commerce Keynote speaker will be Andrew Hessel. $40

Tues., Dec. 12

5:00p – 8:00p

Holiday Social Association for Corporate Growth – Arizona This evening of networking with the top professionals in the deal-making community will feature some exceptional food, drinks, music and holiday cheer. Cost to be announced

Members: free; non-members: $15

Free

The Newton

Desert Willow Conference Center

Scottsdale Resort at McCormick Ranch – Arizona Main Ballroom

300 W. Camelback Rd., Phoenix

4340 E. Cotton Center Blvd, Phoenix

7700 E. McCormick Pkwy., Scottsdale

2501 E. Telawa Trail, Phoenix

aztechcouncil.org

chandlerchamber.com

scottsdalechamber.com

acg.org/arizona

5

6

7 Wed., Dec. 6

8

9

8:00a – 9:30a

6:00p – 10:00p

20th Anniversary Gala and State of the Chamber

North Phoenix Chamber of Commerce

Black Chamber of Arizona

Pre-registration is required.

In 2018, the Black Chamber of Arizona will celebrate 20 years of serving businesses in our community. This year’s banquet will feature the Entrepreneurial Success, Chairman’s Choice, Corporate Choice and the Outstanding Youth Entrepreneur awards, as well as an award recipient panel discussion. Byron V. Garrett, chairman of the National Family Engagement Alliance, a nonprofit dedicated to transforming education through meaningful family engagement, will serve as the master of ceremonies.

Franciscan Renewal Center 5802 E. Lincoln Dr., Scottsdale phoenixmetrochamber.com

4:00p – 7:00p

Sat., Dec. 9

12

Elite Networking Breakfast

Members: free; non-members: $10; breakfast: add $15

Tues., Dec. 5

The Wrigley Mansion

Members: $150; general public: $200

‘The Big Thank You’

Renaissance Downtown Phoenix

Arizona Small Business Association

100 N. 1st St., Phoenix

This networking event brings together a vast array of small-business owners, corporate and community partners to enjoy food, drinks, music, fun, illuminating conversation and networking, and share inspiring stories of people who believed, persisted and achieved great things.

blackchamberaz.com Tues., Dec. 12

Noon – 1:00p

‘Ask an Expert’ Chandler Chamber of Commerce

Free

Monthly seminar invites experts in their field to shed insight and answer questions on topics that are vital to success in today’s business world.

ASBA Building

Members: free; non-members: $10

4600 E. Washington St., Phoenix

Chandler Chamber of Commerce

asba.com

25 S. Arizona Pl., Chandler chandlerchamber.com

DEC. 20 1 7

34

INBUSINESSPHX.COM

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

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


Thurs., Dec. 14

8:00a – 9:30a

Chamber Institute: ‘Why Salespeople Fail and What to Do about It’ Scottsdale Area Chamber of Commerce

Wed., Dec. 13

4:00p – 5:00p

Good Government Buzz Session with Maricopa County Supervisors Gilbert Chamber of Commerce An event of SRP’s Good Government series, this buzz session will bring Maricopa County supervisors Denny Barney and Steve Chucri together with the business community for a discussion on the latest regional issues. Attendees at this meet & greet event will be able to ask questions and provide feedback that will contribute to a vibrant business community.

Program will help salespeople prepare for sales calls by addressing these questions: “In trying to get this order, have you already given away your knowledge of how to solve the customer’s problem?” “Was your presentation done before your prospect had really qualified?” and “As you read this, is your proposal being shopped around town?” Continental breakfast and coffee will be provided. Members: $49; non-members: $69 Sandler Training

8901 E. Pima Center Pkwy., S​ cottsdale

scottsdalechamber.com Thurs., Dec. 21

Follow a step-by-step process with the In Business Brand®

8:00a – 9:00a

Mesa Chambers Networking Group – Central Mesa Mesa Chamber of Commerce

Members: free up to 2 seats per member, additional guests: $10; non-members: $50

Networking includes discussion of business referrals and promotion opportunities.

Gilbert Chamber of Commerce

Free

119 N. Gilbert Rd., Gilbert

Mesa Chamber of Commerce

gilbertaz.com

mesachamber.org

13

14

Thurs., Dec. 14

14

19

20

21

Wed., Dec. 20

8:00a – 2:00p

5:30p – 7:30p

Small Business Leadership Forum – Small Business Master Class with U.S. Chamber of Commerce

After 5 Evening Mixer

Greater Phoenix Chamber of Commerce

Members: $5; non-members: $15

Business owners and entrepreneurs will engage with top experts to gain tools, strategies and best practices to help them compete successfully in today’s rapidly changing economy. Inspirational speakers who have achieved small business success will share inspiring stories. There will also be dynamic networking opportunities throughout the day. All general admissions passes include educational sessions, networking meals, and access to the Small Biz Solutions Marketplace.

900 N. 54th St., Chandler

Members: $25; non-members: $50 Events on Jackson 245 E. Jackson St., Phoenix phoenixchamber.com

1. TARGETED PRINT

165 N. Centennial Way, Mesa

Ahwatukee Foothills Chamber of Commerce

2. ONLINE & DIGITAL

Network with other businesspeople. Orangetheory

3. SOCIAL MEDIA & EMAIL

ahwatukeechamber.com Tues., Dec. 19

11:30a – 1:00p

Hot Topics & Lunch: ‘Local SEO for Small Business / Google My Business – Get on the Map!’

Tues., Dec. 19

Peoria Chamber of Commerce

Taste of Mesa is monthly networking programs sponsored by and hosted at area Chamber member establishments. This month’s meeting is catered by Café Rio.

This presentation is part of the Marketing & Communication Series hosted by Chris Amos of DEX Media. Class registration is required. Lunch will be provided.

5:30p – 7:30p

Taste of Mesa Mesa Chamber of Commerce

4. POWERFUL EVENTS

Members: $15; non-members: $25

Members: free; future members: $10

Mesa Chamber of Commerce

Peoria Chamber of Commerce

165 N. Centennial Way, Mesa

8385 W. Mariners Way, Peoria

mesachamber.org

peoriachamber.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

35 20DEC.1 7 INBUSINESSPHX.COM

Want to meet for lunch? We will bring lunch to you to talk about what the In Business Brand® can do for you. Learn more at marketing.inbusinessphx.com


WE VALUE WHAT WE OWN

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Breaches

DEC. 2017

IN BUSINESS

Best Practic es

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DECEMBER 2017 • INBUSINESSPHX.COM

THIS ISSUE

Arizona Technology

Bolts toEmployee Competitor Conflict Managemen t Is Participa tive Global Mobility as Strategic Priority

Council

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2018 LEXUS LS 500 MSRP: $73,495 City: 19 mpg Hwy: 28 mpg 0-60 mph: 4.6 seconds Transmission: 10-speed automatic

2018 Lexus LS 500 This fifth generation LS by Lexus is hoping to hit the market as a leader in the luxury sedan space. The 2018 Lexus LS 500, available in early 2018, is built on the platform of the highperformance LC coupe and is the first-ever twin-turbocharged engine — with craftsmanship that should catapult it to the top of the market. The engine is a 416-horsepower twin-turbocharged — more powerful than any previous Lexus. Clocking 4.6 seconds in 0-60 miles per hour and boasting a highway miles-pergallon of 28, this is a clean and impressively performing new arrival on the scene. Its sleek new styling is mean and important all at once. Using the latest technologies and design, this new sedan approaches in a way that feels like it is hugging the ground and is suited for maximum performance. The angled front headlights and graphic front grill say, “Drive me!” The styling is a bit outside the box for Lexus and not necessarily in line with the other models. Slightly more

rounded and with less “crease” on the side panel, this model will stand out and perhaps introduce a new design style for the manufacturer. The back end has more of a slanted rear window like the Audi A7 and the Porsche Panamera, affording it some clear competition in the marketplace. —Mike Hunter Lexus lexus.com

Enforcement of “carry-on size” in airline travel is often more random than certain, but having an approved size can eliminate one worry of traveling this often-overbooked holiday season. eBags offers a chart of carry-on size and weight restrictions for many airlines. www.ebags.com/buyingguides/luggage-and-travel/carry-on-luggage-size

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Art & Craftsmanship: Lexus incorporated hand-pleated interior door trims inspired by origami craft and hand-carved ornamentation produced by Kiriko glassworkers; traditional high-quality craft and advanced precision manufacturing signals Japanese Takumi craftsmanship in the all-new Lexus LS 500h.

Photos courtesy ofLexus (top); Away Travel, Genius Pack, Raden (bootom, l to r)

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MEALS THAT MATTER

Over Easy: Breakfast for Lunch and Vice Versa

CUBANO WITH SUNNY EGG Slow-cooked pork shoulder, ham, pickle, wild arugula and honey Dijon mustard on a toasted brioche bun

Soup’s On Soup has become a prominent menu item at popular fast-casual eateries. Some even lead with it in their name.

Over Easy Arcadia 4730 E. Indian School Rd., Phoenix (free parking) • (602) 468-3447 Multiple franchise locations eatatovereasy.com

Gadzooks Enchiladas & Soup

Panera Bread

Enchiladas and soup is what

several flavors of

the storefront lettering

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half of a soup-and-

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DECEMBER 2017 • INBUSINESSPHX.COM

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2398 E. Camelback Rd., Phoenix (validated parking) • (602) 687-7456

MAGAZINE

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Over Easy Biltmore

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Fit Chicken platter, a chicken breast served with egg whites and sliced tomatoes. Dedication to from-scratch cooking includes the orange juice, freshly squeezed per order. The coffee served is cold brew; blended with cinnamon, cardamom and sweetened condensed milk and served over ice, coffee becomes the very refreshing Over Easy Iced. As a franchise operation, the menu must be consistent for all Over Easy restaurants. But unique to the Biltmore location is a daily changing Grab 'n Go selection of four different salads, two sandwiches and a wrap.

THIS ISSUE

Arizona Technology

Council

Bolts toEmployee Competitor Conflict Managemen t Is Participa tive Global Mobility as Strategic Priority $4.95 INBUSINESSPHX.COM

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

Photos courtesy of Over Easy (top and far left), Soup&Sausage Bistro (bottom)

Chicken-fried steak with country gravy, two eggs and choice of potatoes

DEC. 2017

CHICKEN FRIED STEAK

At Over Easy’s recently opened site in the Biltmore Business Park, eye-catchingly yellow umbrellas set the mood for cheery, and the interior brightens it even further with yellow chairs and banquettes set off by brilliantly white tile in a spacious '50s diner style. The patio’s attraction is its location, affording a view of the commanding office skyline rising around it from its broad sidewalk expanse overlooking Biltmore Fashion Park across the busy traffic hub of 24th Street at Camelback. Breakfast and lunch dishes attest to the culinary creativity of executive chef Aaron May, who founded the restaurant in a repurposed Taco Bell in Arcadia in 2008 and continues to direct the menu development as current owners Ryan Dame and Jason Kyle expand the concept through franchising. Patrons’ choices are not constrained by the clock; they can order breakfast for lunch, and vice versa. In fact, the menu itself underscores that attitude and avoids categorizing dishes one way or the other. Indulge with Chilaquiles, an egg-topped mountain of chicken, cheddar cheese, sour cream, green onion and fresh corn tortilla chips smothered with tangy, house-made ranchero sauce. There’s breakfast-traditional eggs and hash browns and toast — served with house-made jelly and always prepared to exacting standards — and Over Easy creations such as Avocado Toast. For the health-conscious, choices include the Protein Bowl, with quinoa, sausage, egg, tomatoes and arugula; and the


Winter 2017 • aztechcouncil.org

IN THIS ISSUE 2 Need for NAFTA

Technology community counting on trade pact to continue

4 Winning Ways

Council leads celebration of best of Arizona tech

5 On Guard

New facility doubles united effort to fight cyber enemies

6 Taking the Lead

Chief Science Officers getting a head start on their futures

WHO WE ARE The Arizona Technology Council is Arizona’s premier trade association for science and technology companies.

Phoenix Office 2800 N. Central Ave., Suite 1530 Phoenix, AZ 85004 Phone: 602-343-8324 • Fax: 602-343-8330 info@aztechcouncil.org

Tucson Office

The University of Arizona Science and Technology Park 9040 S. Rita Rd., Ste. 1550 (near I-10 & Rita Rd.) Tucson, AZ 85747 Phone: 520-382-3281 • Fax: 520-382-3299 tucson@aztechcouncil.org

MANAGEMENT AND STAFF Steven G. Zylstra

President + CEO

Leigh Goldstein

COO + Vice President, Programs + Events

Linda Surovick

Director, Finance + Administration

Lauren Witte

Director, Marketing + Communication

Deborah Zack

Senior Director, Membership Services

Brian Krupski

Director, Membership Services

Laura DeGeorge Jeff Sales Don Rodriguez

Executive Assistant to President + CEO Executive Director, Southern Arizona Regional Office Editor

Ron Schott

Executive Emeritus, Phoenix

Don Ruedy

Executive Emeritus, Tucson

Justin Williams

Executive Emeritus, Tucson

Marisa Ostos

Director, Arizona SciTech Festival

Arizona Technology Council Foundation Jeremy Babendure, Executive Director Ph.D. Susan Farretta

Director, Educational Initiatives

Greg McCarthy

Director, Business + Community Relationships

Sabrina Foy

Arizona Technology Report

Arizona Technology Council: The Voice of the Technology Industry

President’s Message With the role as the principal advocate for science- and technology-based companies in the state, you can imagine there really is little down time for the Arizona Technology Council. That’s especially true when it comes to public Steven G. Zylstra, policy. While you are gearing up for the President and CEO, Arizona Technology Council holidays, we already are looking ahead to January when we, through members of our Public Policy Committee, meet with and testify before members of the Legislature when they convene the 54th session. To help lawmakers, we annually prepare a Public Policy Guide. In creating this document, the Committee relies heavily on the Council’s mission by preparing key ideas, goals and legislative initiatives that: • Improve the business climate for technology-based companies, • Provide sources of risk capital that encourage entrepreneurship, • Create an environment that supports science- and technology-related job retention and creation, and • Attract, train and retrain the talent required to compete in a global innovation economy. While this year’s guide includes a variety of positions to aid elected officials and other stakeholders at all levels of government and business as they craft legislation, the Council for 2018 has set the following priorities for Arizona’s Legislature: Restore the fourth-year funding for career and technical education (CTE): Support budgeting and programming for funding of CTE to maximize and accelerate acquisition of knowledge and skills essential to increasing high-demand industry certifications and credentials. Appropriately fund the state’s education system: Fund all levels, including pre-kindergarten, full-day kindergarten, K-12 and postsecondary. Short-term reforms should include funding K-12 education according to the Proposition 301 formula, as well as alternative ideas to appropriately fund pre- and full-day kindergarten, K-12, CTE, universities and community colleges. Long-term comprehensive funding reforms should modernize and promote a 21st century delivery model of education that focuses on performance and accountability. Create and fund a job training program: Reinstate a funding structure to the Arizona Job Training grant program administered by the Arizona Commerce Authority to help attract and grow businesses here. In the 2015 legislative session, the Job Training tax was repealed from the fiscal 2017 budget — one year before it was scheduled to sunset. This tax provided funds to attract new businesses, and support small and rural Arizona companies by offering reimbursable grant money for job training to new and existing employees. Change the Refundable Research & Development Tax Credit to make it accessible to more small businesses: Expand the program to meet the needs of the early-stage companies that are investing in research and development dollars and earning credits without having the tax liability to which they can apply them. The program is capped at $5 million per year. Historically, this money has been allocated quickly, showing a much higher demand than the existing funding levels. For your convenience, we offer a copy of the guide on our website, www.aztechcouncil.org. We also encourage you to join us in taking a stand when lawmakers drop the gavel in January.

Accounting Assistant

aztechcouncil.org

ARIZONA TECHNOLOGY REPORT

1


Examples of Lucid Motors vehicles were on display during Gov. Doug Ducey’s announcement that Casa Grande would be a manufacturing site for the company.

Need for NAFTA

Technology community counting on trade pact to continue To the rest of the country if not the world, the U.S. border lately has meant only one thing: the Wall. But to those in the know, the borders — yes, it seems observers have forgotten there are two — have meant something else: opportunity. A lot of this has been due to North American Free Trade Agreement (NAFTA), which 24 years ago created the world’s largest free trade zone with our nation and our neighboring countries to the north and south. Doing business with Mexico and Canada had been critical for Arizona as the two countries were the state’s top trading partners in 2016. Mexico was No. 1 with $8.3 billion in goods exported there last year, according to the U.S. Census Bureau. At the same time, Canada was the destination for $2.1 billion worth of products. And Arizona is just a piece of the entire pie. Canada is the main destination of exports for 35 U.S. states while Mexico is among the top three export destinations for 33. For the technology sector, including members of the Arizona Technology Council, there is a lot at stake. In 2016, U.S. companies exported $43 billion in technology goods to Mexico and $24 billion to Canada, according to the Information Technology Industry Council. U.S tech exports to Mexico have surged nearly 70 percent since 2006. Closer to home, the ties to Mexico have helped give birth to the Arizona-Sonora MegaRegion, signaling the attraction of high-tech

2

ARIZONA TECHNOLOGY REPORT

manufacturing and cross-border initiatives. A prime example is the decision of Lucid Motors choosing Casa Grande as the site of a $700-million auto manufacturing plant to build the next generation vehicles that will compete with Tesla and other players in autonomous and electric driving technology market. Gov. Doug Ducey has touted the state’s strong relationship with Mexico and 98 automotive suppliers in the region to help seal the deal. Mexico also offers a network of angel investors that is valuable to Arizona technology companies. In June, startup Urbix announced a $1.25-million investment from Mexican angel investors to support the Mesa-based company’s effort to produce a material used in additive manufacturing. Urbix uses a proprietary method to purify graphite without using hydrofluoric acid or a high-temperature treatment, which is a more efficient and environmentally friendly manufacturing method. This process allows the company to achieve battery-grade graphite after milling it down to a powder that can be used in a variety of ways, including disruptive technologies ranging from material for 3-D printing to making less costly thin film photovoltaic solar cells. But a threat looms for relationships that have been built with Mexico and even Canada. Oct. 17 brought an end to the fourth and most recent round of talks on the renegotiation of NAFTA. The word is American


negotiators are looking for changes that could help lower the U.S. trade deficit with the other two countries. However, there are risks that hit close to home for us all. This was part of the reason that the Computing Technology Industry Association (CompTIA), the Technology Councils of North America (TECNA), and the Arizona Technology Council and other State Tech Council Alliance Partners sent letters in early October to U.S. Trade Representative Robert Lighthizer to tell him of our interest in the outcome of NAFTA, especially its modernization. The groups let him know their top priorities are securing provisions that protect a free and open Internet, and protecting the movement of data across borders without forced localization. In particular, they advised, NAFTA 2.0 should prohibit requiring the transfer of private keys for commercial encryption products, software code and technology transfers as a condition of doing business. It also should block customs duties, taxes and other barriers to digital products and services. In addition, the groups want NAFTA to eliminate tariffs on technology goods. While Canada and the U.S. have both broadly done so under the World Trade Organization’s Information Technology Agreement, the groups and their counterparts in Canada ask the United States to require Mexico to join the pact. But the concerns go beyond the technology sector. One U.S. proposal concerns the rules of origin, which would dictate how much of the value of a car or truck must originate in the three NAFTA countries for the product to count as NAFTA-produced. The current requirement is 62.5 percent. The U.S. administration proposes raising the amount of NAFTA content in autos to 85 percent, with 50 percent of the total for the United States. According to The Detroit Free Press, auto industry observers say such demands could raise the price of vehicles and actually drive production offshore by causing carmakers to just pay a tariff and shift production to countries with lower labor costs. The other hot-button topic from the U.S. is a “sunsetting” clause in NAFTA, which would require the agreement to end after five years unless all parties renew it. That could make U.S. companies wary of investing in operations involving Mexico or Canada if all bets might be off in five years. Changes to NAFTA reach even farther than the border states. For example, consider Iowa, which counts Canada and Mexico as its two largest export partners. The state exported about $5.7-billion worth of goods to the two nations in 2016, which was 46.6 percent of all of Iowa’s exports, according to figures from the U.S. Census Bureau. Craig Hill, the president of Iowa Farm Bureau Federation, told The [Cedar Rapids] Gazette that NAFTA should be updated to include ways to deal with new innovations such as biotechnology and gene editing. In tiny West Virginia, there also is some interest in NAFTA. According to Wisetrade.org, Mexico is West Virginia’s third-largest export market, with chemicals claiming the No. 1 spot followed by minerals and ores. It also sends aerospace products and parts south. As for Canada, 100 percent of the engines and turbines produced in the state in 2015 were sent north, according to the Washington, D.C.based Business Roundtable. The next round of talks is slated to start Nov. 17 in Mexico and Lighthizer has announced an extension of negotiations into the first quarter of 2018, so there is still an opportunity to join others who are asking for NAFTA to continue. Keeping in mind that our Constitution allows the U.S. Congress to have a say when it comes to tariffs and levies, the decision can rest with others beyond the White House. Arizona’s technology industry is watching and waiting.

aztechcouncil.org

Four new members named to Council’s board The Arizona Technology Council Board of Directors recently elected four new members to serve three-year terms. The new members are Chad Fogg of Uber, Greg Kertman of Alliance Bank of Arizona, Bob Rasmussen of Honeywell Aerospace and Chuck Vermillion of AccountabilIT to its board of directors. “Chuck, Greg, Bob and Chad are fantastic additions to our board, bringing more than 80 years of combined professional experience,” says Steven G. Zylstra, the Council’s president and CEO. “They will be an important asset to the Council as we continue to advance our agenda designed to make a positive and lasting impact on the technology industry.” Fogg is global program manager, regulatory compliance at Uber. Before working for the transportation technology company, he began his career as a revenue management analyst for U.S. Airways, where he also assisted with the American Airlines merger. He graduated summa cum laude from Arizona State University’s W. P. Carey School of Business with a B.S. in management and entrepreneurship, and a certificate of international business. Kertman is a commercial banking professional at Alliance Bank of Arizona. He is committed to building long-term relationships with his clients by simplifying and solving complex financial challenges across a broad range of industries, including manufacturing, distribution, trade and transportation, healthcare, technology, retail, construction, and professional and business services. Rasmussen is director of engineering in Honeywell Aerospace’s Advanced Technology organization, where he is responsible for technology strategic planning and portfolio management, intellectual property management, university research, and continuous improvement of Advanced Technology’s open innovation and competitive intelligence processes. He has worked at Honeywell for more than 37 years in a variety of technology development, program management and leadership roles. Vermillion is founder and CEO of AccountabilIT, a Scottsdalebased provider of transformative information technology services. The company provides services internationally from its offices in Scottsdale; Wayne, Penn.; and Gurugram, India. Prior to AccountabilIT, Vermillion was founder and CEO of OneNeck IT Services, a Scottsdale-based managed services provider. Under Vermillion’s leadership, OneNeck grew to approximately $50 million in revenue and 250 employees. In July 2011, Vermillion sold OneNeck to TDS, a Fortune 500 company and parent company of US Cellular, for $95 million. The Council’s board of directors serves an advisory and fiduciary role by representing the interests of the state’s technology industries in the group’s strategic planning and ongoing operations. The current board is comprised of 41 members representing a diverse set of Arizona-based organizations.

ARIZONA TECHNOLOGY REPORT

3


Winning Ways

Council leads celebration of best of Arizona tech Whether working in solitude or as a team, being an innovator likely means working long days in relative anonymity while perfecting what may be — or not — the next big thing. But for at least one night of the year, the Arizona Technology Council casts the spotlight on the segment of the science and technology focused on making a better future. The Council in conjunction with the Arizona Commerce Authority recently paid tribute to the most noteworthy accomplishments when they announced award winners at the 14th Governor’s Celebration of Innovation (GCOI), a gala attended by the top technology companies and leaders in Arizona, who included Gov. Doug Ducey. More than 700 people representing Arizona’s booming tech ecosystem attended the early November event that featured the theme “Disruptive Technology.” “As our technology community continues to grow, the bar for innovation is set higher and higher,” says Steven G. Zylstra, president and CEO of the Arizona Technology Council. “This year’s winners

represent the best and brightest companies and individuals our state has to offer.” Sandra Watson, president and CEO of the Arizona Commerce Authority, says, “Their accomplishments are helping grow Arizona’s economy and advance our competitive position globally.”

The 2017 GCOI winners in their respective categories are: Company awards

Individual awards

• Innovator of the Year – Start-Up Company: Akos MD, Phoenix • Innovator of the Year – Small Company: Paragon Space Development Corporation, Tucson • Innovator of the Year – Large Company: PacSci EMC, Chandler • Innovator of the Year – Academia: Professors Jeffrey Pyun, Robert (Bob) Norwood, Novel Polymeric Materials, The University of Arizona, Tucson • Judges Award: Digital Citizen Academy, Scottsdale

• AccountabilIT Lifetime Achievement Award: Bob Parsons, founder of GoDaddy, American entrepreneur and philanthropist • Ed Denison Business Leader of the Year: Jeffrey Pruitt, founder, CEO and chairman, Tallwave and Tallwave Capital, Scottsdale • Chairman’s Award: Robert Witwer, recently retired vice president of advanced technology at Honeywell. Witwer served on the Council’s Board of Directors since 2011 and was chairman of the board for two years.

Future Innovators of the Year Awards representing the top performers in the Arizona engineering and science fairs (grades 9-12) for the year 2016. Each winner receives a $1,000 scholarship: • Joseph Galasso, Galasso Homeschool, Tucson • Somil Jain and Sachin Jaishankar, Hamilton High School, Chandler • Seoyoon Kim, BASIS Peoria High School, Peoria • Vilina Mehta, Basis Scottsdale High School, Scottsdale

Future Innovators of the Year honorable mentions: • Ava Christensen, Empire High School, Tucson • Heaven May Murphy, Tombstone High School, Tombstone

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ARIZONA TECHNOLOGY REPORT

Legislator awards • Outstanding Tech Senator of the Year: Sen. Karen Fann, District 1 • Outstanding Tech Representative of the Year: Rep. Regina Cobb, District 5

Tech Ten Legislators • Sen. Sean Bowie, District 18 • Sen. Sonny Borrelli, District 5 • Sen. Lupe Contreras, District 19 • Sen. David Farnsworth, District 16 • Sen. Kimberly Yee, District 20 • Rep. Heather Carter, District 15 • Rep. Cesar Chavez, District 29 • Rep. Randy Friese M.D., District 9 • Rep. Becky Nutt, District 14 • Rep. Jeff Weninger, District 17

Teacher of the Year award: • Marni Landry, Paradise Valley CREST (Center for Research Engineering Science and Technology), Phoenix

Teacher honorable mention: • Pradip C. Misra, Bagdad High School, Bagdad


On Guard

New facility doubles united effort to fight cyber enemies In a world besieged by what seem to be new wide-ranging cyber threats arising daily, building a combat-ready force is not a bad idea. To help, two member organizations of the Arizona Technology Council have teamed to open a second location of a facility dedicated to supporting revolutionary advancements in cybersecurity. The Metro Phoenix location of the Arizona Cyber Warfare Range (AZCWR) is a collaborative effort of the Arizona Cyber Threat Response Alliance (ACTRA) and Grand Canyon University. The volunteers of AZCWR have joined with the university to offer valuable cybersecurity resources and workforce training to cultivate highly skilled cyber professionals. Open to the public, this location joins the original AZCWR, which launched in 2014 at the City of Mesa’s Arizona Laboratories for Security and Defense Research, or more commonly called AZLabs. The Council’s Cyber Security Committee has hosted an event annually at the Mesa branch and plans to have a committee event there in early 2018. The Committee serves as a platform for information security professionals to share best practices and for technology companies without chief information security officers to seek guidance on requirements to strengthen their digital defenses. To help keep the momentum going, the Council and ACTRA also were to host the second annual Cybersecurity Lunch Forum on Dec. 7 at SkySong in Scottsdale. AZCWR is one of largest privately funded, volunteer-staffed organizations in the country focused on innovation and education in cybersecurity. It was launched by a consortium of volunteers from user groups, educational institutions and corporations in Arizona. The management team, including co-founders Ray Rivera and Brett L. Scott,

aztechcouncil.org

are all active in groups such as the Southwest Security Professionals Forum, Sonoran Desert Security Group and Infragard. Also part of the management team is the Information Systems Security Association (ISSA). The Phoenix Chapter of the ISSA joined the management team in 2014, and has provided more than $300,000 in donated equipment to help bring the range to its current size. AZCWR provides a barrier-free opportunity for teaching people with all types of backgrounds to become security savvy. Though not a traditional educational institution or a certifying party, its mission is to educate the public regarding cybersecurity through “learn by doing.” Most security-focused education curricula are focused on the theory and standards of computer fundamentals and information management. However, the volunteers who facilitate AZCWR believe in learning by doing. They created the AZCWR to give security professionals and even non-professionals the opportunity to push the limits. In fact, they encourage users to “learn by destruction.” That is accomplished through “live fire” computer network attacks against a wide variety of platforms. In this no-holds-barred environment, there are no restrictions, no filters and just two rules: no using the range as a botnet and no distributed denial-ofservice attack flood of AZCWR resources. To promote learning, there are four segmented areas for members to explore: beginner, intermediate, advanced and “Jedi.” Each validated user is granted a 24-hour access pass to the selected range. Each range has exercises and environments that allow members to explore everything from basic terminology and concepts to full-scale attacks against realworld targets. When a target is compromised, an image of the platform is moved to a secured storage area for use in digital forensic training.

ARIZONA TECHNOLOGY REPORT

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Members of the Chief Science Officers program during the STEM-ONstration Showcase of their Training Institute in July

Taking the Lead

Chief Science Officers getting a head start on their futures Becoming a leader. Many people spend an entire career looking for ways to accomplish this. Middle and high school students are getting the chance now, thanks to a program based in Arizona. When the Chief Science Officers (CSO) program was launched by Arizona SciTech a few years ago, it was viewed as a way to increase student voice in school and community discussions about science, technology, engineering and mathematics (STEM). Beyond that, students have been honing their skills as leaders, says Jeremy Babendure, Arizona SciTech’s executive director. Arizona SciTech is a program of the Arizona Technology Council Foundation, where Babendure also serves as executive director. Sessions for the CSOs Training Institute were held July and September to offer training in communication, such as blog writing and on-camera appearances, and strategic planning, such as teambuilding, Babendure says. This year, a record number of CSOs were trained. The current CSO class counts 320 members based in Arizona and another 100 in Oregon, Michigan, Tennessee and Missouri, he says. “What’s been awesome is now being in our third season, we have a lot more second-year [CSOs]. And even cooler, we have third years,” Babendure says. “So they have taken leadership roles to now help run some of the sessions and to assist in the sessions.” The July sessions were offered at Grand Canyon University, with a four-day schedule for returning CSOs, three days for new high school participants and two days for the new middle school students. Babendure says for many it may have been the first time they set foot on a college campus. “Having the chance to also stay overnight [in the dorms] was so magical for them,” he says.

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ARIZONA TECHNOLOGY REPORT

One of the sessions gave students guidance on collective action experience while another targeted leaderships. There also was mentoring through the SciTech Jedis, who are working professionals from Honeywell, Orbital ATK and Intel. Training for CSOs will be ongoing, Babendure says, especially with so many students continuing their roles beyond a single school year. “We’ve been working on a plan for the different levels CSOs can be and continue that level of leadership with them each year that they are with the program,” he says. Another opportunity for the CSOs to grow came when two participated in a meeting of the STEM Learning Ecosystems Initiative in Kansas City, Mo., in October. Representatives of 56 regional stem ecosystems — two from Arizona — met to develop ways to create a high-quality local STEM workforce. Babendure says two CSOs from Phoenix-area schools attended to express their perspectives on how STEM impacts them as students. “It was really the first time for many of these adults to interface with a kid that has this ability to enroll, really get them excited about ideas, and see the value and strength of STEM in students,” he says. CSOs even have had a chance to take things full circle by participating in September’s kickoff conference for the 2018 SciTech Festival held at the Mesa Arts Center. More than 50 sessions brought together collaborators from industry, education, government and the community to share their experiences and talk about their plans for the upcoming season with the theme “Arizona stem ecosystem,” Babendure says. One CSO even stepped up to lead the keynote session by introducing the featured speaker and all the sponsors. “Giving CSOs that opportunity to take their next steps in leadership at the conference was great,” he says.


Virtual ‘Snow’ a Highlight of Annual Mixer What’s a holiday party without a snowball fight — even if the locale is sunny downtown Phoenix? Tech the Halls, the annual holiday mixer of the Arizona Technology Council and its Ambassador Committee, will be held Dec. 14 at Galvanize, 515 E. Grant St., Suite 150. To set the mood for this year, Microsoft and gaming students at the University of Advancing Technology in Tempe representing Monster Vault Entertainment will create a virtual environment with falling snow and snowcapped mountains in which multiple players can throw snowballs at each other. Also expected this year will be the appearance of Santa aka Suns Gorilla. In addition, each Ambassador will also showcase his or her company in a new mini-expo format and provide raffle prizes, including use of a corporate suite at a Phoenix Suns game. This year, donations of STEM gifts and toys for the Phoenix Children’s Hospital will be accepted in lieu of the event fee for nonmembers, which otherwise will be $20 per person. The fee covers hors d’oeuvres, cocktails and entertainment. Council members will be admitted at no charge. To register for the event, go to www.aztechcouncil.org.

Holiday decor is a highlight of the annual mixer.

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Abramson, Brett, 16

Ducey, Gov. Doug, 40

Karetnick, Ellyn, 12

Rios, Frankie Jo, 10

Alvarado, Yolany, 33

Egbert, John, 22

Kertman, Greg, 41

Rivera, Ray, 43

Babendure, Jeremy, 44

Farca, David, 33

Kilroy, Ed, 20

Scott, Brett L., 43

Bayless, Justin, 20

Fogg, Chad, 41

Laub, Ethan, 18

Tollefson, Richard, 32

Bidwell, James, 31

Forkner, Carl, 33

Lighthizer, Robert, 40

Tyra, Michal, 32

Bonnell, John, 16

Haber, Morey J., 30

Mack, MaryLynn, 24

Vermillion, Chuck, 41

Brown, Michelle,16

Hall, Derrick, 24

Martin, Dr. Joel P., 9, 24

Whye, Barbara, 24

Burke, R.W., 50

Hatch, Mark R., 31

May, Aaron, 38

Winn, Paul, 11

Cagan, Marty, 31

Hickman, Glenn, 14

Otu, Essen, 24

Zylstra, Steven G., 39

Davis, Mesha, 10

Hill, Craig, 40

Patel, Akshai J., 10

de la Rama, Denise, 20

Joy, Maggie Mae, 18

Rasmussen, Bob, 41

1100 KFNX, 19

Coupa Expenses, 18

Lexus, 36

Stearns Bank, 6

AccountabilIT, 41

Delta Dental, 7

Lucid Motors, 40

Affinity Technology, 47

Desert Botanical Garden, 24

MainSpring Capital Group, 16

Technology Councils of North America, 40

Ahwatukee Foothills Chamber of Commerce, 35

Detroit Free Press, The, 40

Marriott, 16

Dynamic Worldwide Training Consultants, 33

Mayo Clinic, 21

Alliance Bank of Arizona, 3, 41 APS, 15 Arizona Cyber Threat Response Alliance, 34, 43

East Valley Hispanic Chamber of Commerce, 10 Ford Motor Company, 50

Arizona Diamondbacks, 24, 51

FSW Funding, 47

Arizona Foundation for Women, 10

Gadzooks Enchiladas & Soup, 38

Arizona Small Business Association, 34

Genius Pack, 36

Arizona Technology Council Foundation, 44

Gilbert Chamber of Commerce, 35

Arizona Technology Council, 34, 39 Association for Corporate Growth – Arizona, 35 Away Travel, 36 Bank of the West, 8 Bayless Integrated Healthcare, 20 Benchmark Electronics, Inc., 20 BeyondTrust, Inc., 30 BGRS, 12 Black Chamber of Arizona, 34 Blue Cross Blue Shield of Arizona, 52 BMO Harris Bank, 17 Business Roundtable, 40 Cedar Rapids Gazette, The, 40 Centers for Disease Control, 20 CenturyLink, Inc., 11 Chandler Chamber of Commerce, 34 Chapman Automotive Group, 11 Computing Technology Industry Association, 40

Giving Institute, The, 32 Glendale Chamber of Commerce, 34 Global Chamber, 33 Grand Canyon University, 43 Greater Phoenix Chamber of Commerce, 35 Hickman’s Family Farms, 14 Hilton, 16 Hines, 16 Honeywell, 41, 44 Information Systems Security Association, 43

MedAvail Technologies, 20 Mesa Chamber of Commerce, 35 Mobivity, 11 Mountain Park Health Center, 24 National Bank of Arizona, 5 NewSpring Pharmacy, 48 Noom, Inc., 20 North Phoenix Chamber of Commerce, 34

U.S. Census Bureau, 40 Uber, 41 UnitedHealthcare, 13 Urbix, 40 Wallbeds “n” More, 36

World Trade Organization, 40

Panera Bread, 38 Parallel Capital Partners, 16 Peoria Chamber of Commerce, 35 Phoenix Collegiate Academy, 10 Phoenix Philanthropy Group, The, 32 ProPanama, 33 Qualcomm Life, Inc., 20

Recyclebank, 11

International Business Group, 33

Scottsdale Area Chamber of Commerce, 34, , 35

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Trusona, 11

Wisetrade.org, 40

Intel, 24, 44

LaPour Partners, 16

Triad West, Inc., 9, 24

Over Easy, 38

Radix Law, 19

JLL, 2, 16

Topgolf, 11

Wells Fargo, 45

Infusionsoft, 48

Jive, 6

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Orbital ATK, 44

Raden, 36

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Tesla, 40

Northcentral University, 18

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Tempe Chamber of Commerce, 33

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A CANDID FORUM

BY

Managing Conflict: A State of Understanding It’s a participative process by R.W. Burke

Burke holds a bachelor of science in accountancy from Providence College, and a master of business administration with a concentration in finance from Providence College’s School of Business.

LEARNING TO MANAGE CONFLICT IS A PARTICIPATIVE PROCESS. PLEASE PLAY ALONG. It begins by me asking two questions. Here is the first: I’d like you to pretend you are describing yourself to a stranger, and you’d like that stranger to know everything about you (that you’d want them to know about you) in six, or eight, or ten words. What are those words? People will think about that question for a moment, then they will give me their words. And when they give me their words, what they are doing unknowingly (and precisely the reason I ask the question the way I do) is declaring their personal values. There are a couple of reasons it’s important to identify personal values. The first is, all human behavior is a function of personal values. A person’s behavior will either honor a value or defend one. The second is, personal values are also a person’s triggers. Any situation that challenges one of a person’s values will cause that person to become emotionally reactive. A point I make to HR professionals: If you don’t understand someone’s values, you won’t understand his or her behavior, and vice-versa.

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According to OSHA, reported incidents of workplace violence involve nearly 2 million American workers each year; the actual number may be much higher. osha.gov/SLTC/workplaceviolence

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Again, people will consider the question for a moment, and then answer it. Inevitably, the situation they tell me about will tie back to one of the values they identified when they answered the previous question. For example, perhaps one of their words was “consideration,” that is, being considerate of others. Then the situation they tell me about surrounds their observance of another person being inconsiderate, or they themselves being accused of being inconsiderate. In either case, the result is the same — emotional reactivity. Conflict exists when someone feels like one of his or her personal values has been offended, and by answering the second question, they are identifying their individual “hot situations.” Hot situations are those situations that are prone to offend an individual’s values. In order to effectively manage those situations, a person must first be able to identify them. That question also serves to help the person connect the dots between a personal value being offended and becoming emotionally reactive as a result. That connection can go a long way to helping people understand their own behavior. Once becoming emotionally reactive, what remains is to identify someone’s “default reactionary style.” People will react as “victims” or “in conflict.” If reacting as a victim, that person will withdraw, stop communicating, feel helpless and powerless; the prevailing idea is, “I lose.” If reacting in conflict, that person will lash out, become angry and aggressive, argumentative and combative; the prevailing idea is, “I win.” Regardless of the default reactionary style, the ultimate challenge is to learn how to interrupt the negative emotional reaction and transform it into a positive response. There are two levels of interruption. One is simple restraint. That is where the emotion still exists, but the destructive action does not. The problem with restraint, though, is it is a diminishable resource — a person can run out of restraint. The second level is where the emotion no longer exists by virtue of dissociating the perception of intentionality with respect to the observed or witnessed behavior. Without the emotion, there is no fuel for the reaction, and without the reaction we are left, simply, with a situation that we would like to be different.

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Please tell me about a situation that tends to bring out your worst…that turns you into that person whom you don’t want to be, but are anyway.

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DEC. 20 1 7

Once we have declared values, I ask the second question:

DEC. 2017

R.W. Burke, author of Quiet the Rage, is a top coach on Ford Motor Company’s Consumer Experience Movement (CEM) project, covering 25 dealerships in seven states. In his capacity as coach, he’s responsible for developing the dealerships’ 2,500 people (and the organizations themselves), both personally and professionally, to better understand the ways those people are limiting themselves in life and to break through those limitations to new levels of performance. He has logged more than 10,000 hours of individual coaching, with the vast majority focused specifically on helping others manage conflict.

I’ve had thousands of conversations with managers in recent years, and in almost every one of them, a manager is struggling with trying to change behavior — his own or someone else’s. And it’s usually someone else’s. The struggle with that behavior is mostly caused by the lack of understanding of it. Too many of us don’t understand our own behavior, let alone someone else’s; I didn’t understand my own behavior for more than 40 years. Once a basic understanding exists, managing it becomes easier. The same is true of managing conflict. Managing conflict is not only a state of mind but a state of understanding. And it’s easiest to learn to manage it within oneself before trying to manage it in others. The following are some keys to developing that understanding for HR professionals tasked with addressing conflict between employees; between managers and employees; and between departments, divisions, etc.

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December 2017 issue of In Business Magazine