Roundtable: Diversity in the Workplace â€“ Fuel for Growth or Disruption?
How 13 local governments are gearing up for small business success
Power Lunch Business Calendar By the Numbers
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SMALL BUSINESS RESOURCES GUIDE 2012
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IN BUSINESS MAGAZINE
Roundtable: Diversity in the Workplace – Fuel for Growth or Disruption?
CITIES BUILDING BUSINESS / SMALL BUSINESS RESOURCES GUIDE
JULY 2012 • inbusinessmag.com
Our Cities Are Building Business
How 13 local governments are gearing up for small business success
Power Lunch Business Calendar By the Numbers
This Issue $4.95 INBUSINESSMAG.COM
SMALL BUSINESS RESOURCES GUIDE 2012
Thirteen local communities weigh in on their plans for small business development. Mayors and economic development specialists of Metro Phoenix cities and towns share with Alison Stanton programs they have implemented to build business in their municipality. Departments
Greg Stanton, mayor of the City of Phoenix, introduces the “Cities Building Business” issue.
26 Social Networking — Off-limits in Employment Decisions? Alastair Gamble considers the legal implications of employers using social networking sites in pre- and post-hiring decisions.
Noted business and community leaders Barry Broome, Rick Murray and Mayor Thomas Schoaf respond to IBM’s burning business question of the month.
28 Priced for Business: Starting a
Victor Green examines strategies around the financial decisions at the heart of starting — and succeeding — in business.
9 Guest Editor
“Bytes,” Discovery Triangle Vibrant with Entrepreneurial Activity,” “Seeing Is Believing,” “Bicycle as Commuter Transportation Means Business,” Marketing and Packaging Partner into a New Company” and “Explosive Growth for Software Company Sends It to Chandler’s Price Corridor”
38 Power Lunch
16 By the Numbers
Diversity in the Workplace: Fuel for Growth or Disruption?
All business sectors in the state are projected to show growth in 2012 and 2013.
18 Trickle Up
View from the top looks at how Ron Lynch created a thriving franchise by focusing on dining as entertainment.
34 Creating a Corporate Dynasty
Jack Stark, Ph.D., discusses three leadership styles needed at the top (and the followers needed to support that system). Special Sections
The Guide to Starting or Bettering Your Business
J u ly 2012
New releases offer new-world views on management, the impact of social networking and employee retention.
39 Small Business Resources Guide The Gu
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July 2012 • Vol. 3, No. 7
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Vol. 3, No. 7. In Business Magazine is published 12 times per year by InMedia Company. POSTMASTER: Send address changes to InMedia Company, 6360 E. Thomas Road, Suite 210, Scottsdale, AZ 85251. To subscribe to In Business Magazine, please send check or money order for one-year subscription of $24.95 to InMedia Company, 6360 E. Thomas Road, Suite 210, Scottsdale, AZ 85251 or visit inbusinessmag.com. We appreciate your editorial submissions, news and photos for review by our editorial staff. You may send to email@example.com or mail to the address above. All letters sent to In Business Magazine will be treated as unconditionally assigned for publication, copyright purposes and use in any publication, website or brochure. InMedia accepts no responsibility for unsolicited manuscripts, photographs or other artwork. Submissions will not be returned unless accompanied by a self-addressed, stamped envelope. InMedia Company, LLC reserves the right to refuse certain advertising and is not liable for advertisers’ claims and/or errors. The opinions expressed herein are exclusively those of the writers and do not necessarily reflect the position of InMedia. InMedia Company considers its sources reliable and verifies as much data as possible, although reporting inaccuracies can occur; consequently, readers using this information do so at their own risk. Each business opportunity and/or investment inherently contains certain risks, and it is suggested that the prospective investors consult their attorney and/or financial professional. © 2012 InMedia Company, LLC. All rights reserved. No part of this magazine may be reproduced or transmitted in any form or by any means without written permission by the publisher.
Greg Stanton, Mayor, City of Phoenix
Doing What It Takes to Build Business
A native Phoenician, Mayor Greg Stanton completed his undergraduate degree at Marquette University and his law degree at University of Michigan and then returned to his hometown where he has been active in community organizations and in government. He was appointed to the Phoenix City Council in 2000, then won the seat in the 2001 and 2005 elections. He took office as Mayor of Phoenix in January 2012. Stanton has been recognized for his community service with awards that include Arizona Big Brother of the Year.
Arizona, and particularly the Valley, is an incredible place to start or build a small business. People want to be here. Despite the past years of a downturned economy, we have succeeded in many ways to foster small business growth and put the Phoenix metropolitan area in the spotlight as one of the top places to be in business. As mayor of Phoenix, I know small business is what makes or breaks an economy, and that it’s the key to building a diverse and sustainable economic future for Phoenix. Supporting local businesses is about more than buying your morning brew at your neighborhood coffee shop — we have to do everything we can at the city level help small businesses succeed, not work against them. That’s why the Phoenix City Council and I passed a program to enhance local and small businesses’ participation for city procurements — so they can realistically compete for city contracts. We also streamlined the process for companies to submit their plans electronically, which the city should have done years ago. In the cover story, “Cities Building Business,” writer Alison Stanton (no relation) breaks the Valley into four regions and speaks with city leaders and economic development experts as she spotlights actions the Valley’s various municipalities are taking to encourage small business growth. Incentives and hard work seem to be paying off for these municipalities. Other informative articles include “Creating a Dynasty: Three Leadership Styles You Need at the Top” by Jack Stark, Ph.D., and a look at legal compliance issues of an employer requiring employees to provide access to personal social media by attorney Alastair Gamble in “’Social Networking — Off-limits in Employment Decisions?” Victor Green, in his Enterprise article, discusses factors businesses should consider in setting the prices of their product or service. And in this issue’s Roundtable, In Business Magazine editor RaeAnne Marsh explores the impact of an ethnically diverse work force on a business. Also in this issue, In Business Magazine has created a guide to small business for those growing or starting a small business in the Valley. The “50 Top Small Business Resources Guide” is made up of those services dedicated to building small business, from funding to marketing to legal advice. As you read through this issue of In Business Magazine, you will find articles on diverse subjects but all directed to our common goal of building business in the Valley. Sincerely,
Greg Stanton Mayor City of Phoenix
Small Business to the Rescue Everyone touts how much of an impact small business has on the overall economy, yet small businesses feel the day-to-day struggle more than any other class of business. With leaders like Mayor Stanton, leaders among the other Valley cities, several major local corporations and local organizations who work so hard to encourage and infuse small business, it is no wonder we are taking the lead in fostering this drive to strengthen small business and small business opportunity in the Valley. We want to thank Mayor Stanton for his hard
work on City and regional efforts to build business, and also the 13 municipalities (including the City of Phoenix) that participated in our cover story for this issue. There are multiple programs, divisions and partnerships that our local cities are working on that clearly amount to a very pro-business attitude. This will, no doubt, be a boost to our comeback and will be a strong influencer in bringing new talent, money and opportunity to the Valley of the Sun. With advocates like these, existing and start-up small businesses will energize this community and, eventually, the region. —Rick McCartney, Publisher
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J u ly 2012
Valley Leaders Sound Off
Arizona is ranked the top state in the country for business start-ups, according to the Kauffman Index of Entrepreneurial Activity. How or where do you see government and/or the business community fueling this activity?
President and CEO Greater Phoenix Economic Council Sector: Business Advocacy Group
CEO Arizona Small Business Association Sector: Business Advocacy Group
Innovation and entrepreneurship are critical components of the Greater Phoenix region’s economy. However, innovative business ideas would have nowhere to go in an empty business community. For an idea to take root and blossom into a thriving start-up, the community must also support larger, export-driven companies. These larger companies often turn to smaller start-up companies for their materials, components, IT services, marketing, accounting and more. Likewise, start-ups rely on larger companies for the business and employment that stimulates their growth. Plus, most new technology start-ups are started by workers in mature industries like semiconductors, aerospace/defense and advanced electronics. This cycle creates an ecosystem that supports both mature and fledgling technologies. When combined with a vibrant list of accelerators and incubators, a top research university and countless funding opportunities, Greater Phoenix’s rich and varied business community makes it the perfect place to launch a new venture, as evidenced by the recent #1 ranking by the Kauffman Foundation.
When employers stopped hiring, we saw many of the unemployed take matters into their own hands and create their own jobs. For some it was an opportunity to do something they had always wanted to do, while for others it was a matter of survival. Small business received a huge helping hand from the Arizona legislature, which passed several pieces of legislation aimed at helping small businesses keep more of their hard-earned money. It’s the second year in a row, in spite of a down and struggling economy, that the legislature has passed meaningful, jobs-creating legislation aimed at helping small business. While sales and income are gradually increasing in small businesses in general, there is still a significant amount of work to be done to convince the buying public it’s safe to come out now. However, the Kauffman Index results prove what a pro-business legislature can do to help jump start not only a state’s economy but the national economy as well.
Greater Phoenix Economic Council gpec.org
Barry Broome, president and CEO of the Greater Phoenix Economic Council, is a proven leader with 20-plus years of experience in community building and economic development, company creation, formation of public-private partnerships and public policy design. Broome’s tenure at GPEC has led to the attraction of more than 160 companies, 30,980 jobs and more than $6.5 billion in capital investment in Greater Phoenix.
Thomas Schoaf Mayor of Litchfield Park Chairman of the Maricopa Association of Governments Economic Development Committee Sector: Government Greater Phoenix is attractive to start-ups for many reasons, including a skilled labor market, tax incentives, job training and expedited permitting. One way local governments are fueling activity is the development of business “incubators,” in which communities provide collaborative workspace for start-ups, entrepreneurs and creative companies. Incubators can include everything from physical space to on-site staff, mentors, tools or other resources that give small companies the boost they need to get a toehold in the marketplace. Cities around
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Arizona Small Business Association asba.com
Rick Murray has a wide and varied background that includes entrepreneurial endeavors and nonprofit association executive experience. Murray has seen tremendous success by using the same formula he has always used: developing relationships with businesses for mutual success and surrounding himself with a team of people who believe in a common goal. Murray is also well-versed in HIPAA compliance issues and healthcare-related businesses.
the region, including Avondale, Chandler, Gilbert, Mesa, Peoria, Phoenix, Queen Creek, Scottsdale, Surprise and Tempe, have seen how these incubators foster business development. Valley communities are partnering through the Maricopa Association of Governments Economic Development Committee to launch a number of collaborative economic development efforts, ranging from the development of a website to attract business, www.GreaterPhoenixRising. com, to working with Canada and Mexico to improve trade relations. The region was also selected by the Brookings Institution to develop and implement a Metropolitan Business Plan based on a rigorous market analysis. That plan will be completed in December. Maricopa Association of Governments azmag.gov
Elected as mayor of Litchfield Park in 2006, Mayor Thomas Schoaf has been involved in a variety of business endeavors that have taken him around the world. He is active in many community youth groups, also serving as a trustee of the West Valley Hospital and on the Westside Advisory Board of Phoenix Children’s Hospital. Mayor Schoaf has a B.S. in metallurgical engineering, cum laude, and a Juris Doctor, summa cum laude, from the University of Notre Dame, and maintains a law office in Litchfield Park.
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Co-working Tech The Valley is quickly becoming a hotbed for tech start-ups and innovation dens and tech think tanks. Get to know these techies as they accelerate tech entrepreneurship. Co+Hoots — This downtown Phoenix creative co-working space is all about finding new ways of becoming productive by teaming up with other entrepreneurs in one central location. Gangplank — For everyone from high-schoolers to established entrepreneurs, this group is about collaborating and community coming together to create great ideas that will fuel our local economic engine.
Discovery Triangle Vibrant with Entrepreneurial Activity
With about $2 million invested in active projects this year alone, the Discovery Triangle — an area of amorphous shape that takes in Downtown Phoenix, Tempe and Papago Park, one of the country’s largest urban parks, which sits on both cities’ boundary — is seeing a wave of entrepreneurial activity. In a year when the Kauffman Index of Entrepreneurial Activity ranks Arizona the top state for business start-ups, Discovery Triangle Development Corporation lead consultant Sara Dial points out that this large investment is taking place at a time when not much is happening elsewhere. Noting, “Young people want to be in an urban area,” Dial says the strong activity “makes sense because so many entrepreneurs are young people.” Working with investor organizations in the public and private sectors, DTDC is a two-year-old nonprofit entity tasked with taking the lead as facilitator and project coordinator on development and adaptive reuse in the urban region. “We developed a Google Earth database to identify the best locations to build and grow,” says Dial. DTDC enabled more than 1.5 million square feet of development added or renovated in 2011 and more than half that amount completed in just the first quarter of 2012. The 2012 completions include the Tovrea Visitor’s Center and phase one of Gateway Community College’s Center for Entrepreneurial Innovation. The focus on developing the area in a regional fashion, Dial notes, was due to the leadership of Hugh Hallman and Phil Gordon, as mayors of Tempe and Phoenix, respectively, who recognized the tremendous asset of the cities’ shared amenity, Papago Park. “They did not want to develop the cities as individual silos.” —RaeAnne Marsh Discovery Triangle Development Corporation discoverytriangle.org
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Photos: Rick D’Elia (right) Co+Hoots (left)
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Bicycle as Commuter
Marketing and Packaging
Located in the Tempe Transportation Center close to a light rail station, The Bicycle Cellar serves not just recreational cyclists but those who make bicycles part of their commute-to-work transportation. Bicycling enthusiasts Joseph Perez and John Romero came together as business partners and opened the store eight months after the light rail opened, providing showers, lockers and 24-hour security for bicycle storage in addition to the more standard components of a full-service bicycle shop. Tempe had already built the space with the amenities to serve bicycle commuters who want to freshen up before making their appearance in the office, and Perez says, “The inspiring part to me is that the city had committed to doing this and made it fairly seamless to occupy it.” With so much infrastructure already in place, he explains, the partners were able to self-finance the additional equipment and the bikes and related merchandise for retail. The Bicycle Cellar is the only business of its kind in Arizona, and most of the early advertising relied on online sites such as Yelp and Facebook, Perez says. Now, the business — which is membership-driven, although also open to the public on a daily basis — gets “a lot of referral from current membership and satisfied customers.” Strong proponents of bicycling as a healthy and economical mode of transportation, the partners are presently following the example of several of the similar businesses around the country and are in the process of converting the business to a nonprofit “so we can seek additional funding from corporate sources,” says Perez. —RaeAnne Marsh
PRfect Retail was created as the perfect fit between a national packaging and display company — California-based Heritage Pioneer Corporate Group — and a marketing and advertising agency — Phoenix-based PRfect Media International. The two companies came together to create a new model for the retail packaging and POP display industry, what PRfect Media CEO John Hernandez calls “a real game-changer.” For the first time, companies can turn to one vendor for all their packaging and display needs, from design, printing, delivery and fulfillment to marketing and advertising. “A salesperson at Heritage [said he] ran into a lot of retail clients who don’t have the ability to do their own graphic design,” says PRfect Retail spokesperson Ron Merritt, explaining how Heritage came to initiate the contact with PRfect Media. At the center of the new company, launched in June as a subsidiary of PRfect Media, is a state-of-the-art, $1.4 million digital printer. It not only enables a short-run capability but also the ability to easily change the print on the display or packaging — an advantage when there is a need for seasonal packaging, for instance. PRfect Retail partners creative advertising resources with this digital technology, and will also offer a full-service menu of marketing options to roll out retail products to the marketplace. —RaeAnne Marsh
The Bicycle Cellar thebicyclecellar.com
PRfect Retail prfectretail.com
Transportation Means Business
Partner into a New Company
Explosive Growth for Software Company Sends It to Chandler’s Price Corridor
Growth mode for Infusionsoft is bringing hundreds of new jobs to Chandler. The company, creator of all-in-one sales and marketing software for small businesses, is far surpassing its goals for this year, says co-founder and CEO Clate Mask. Having added 100 employees in the past 12 months, it expects to grow to 300 by the end of 2012 — with projected growth supporting employee numbers of 1,000 over the next two to four years. Positioning itself for this expansion, Infusionsoft is moving to a new location in Chandler’s Price Corridor, and Mask credits the City of Chandler and the Arizona Commerce Authority as “true partners throughout this process” of selecting a site. The company is working with developer Douglas Allred Company to create a work environment to help it attract and retain a high-quality work force, with amenities that will include a café/hang-out place, recording studio for video and audio, and a kid-friendly play room for times when an employee needs to bring his or her child along to the office. It’s not just demand for the software that has been accelerating, according to Mask. “Our proprietary educational method of teaching
J u ly 2012
sales and marketing success to small businesses is spreading like wildfire.” So the new office will also include a training area for large groups — “Think the 200-person range,” says Mask, who plans that Infusionsoft’s headquarters “will become the training center for small businesses in Arizona and worldwide.” He expects Infusionsoft to play host to thousands of businesses from around the world at company training events, and notes, “InfusionCon, the company’s annual user conference, brings more than 1,000 small businesses to Phoenix every year for product training and marketing education.” Additionally, Mask says, “Infusionsoft wants to put the Valley on the map as a great place to start and run a tech company.” He believes Chandler’s Price Corridor represents a budding center for tech companies and talent. “We anticipate that the City of Chandler and the Arizona Commerce Authority will use the Infusionsoft facility to attract tech companies to the Valley as an example of what can be accomplished here.” —RaeAnne Marsh Infusionsoft, Inc. infusionsoft.com
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By the numbers
Metrics & Measurements
All Sectors Show Growth for 2012 & 2013 Projections better than initially thought, implying sustained growth In case the latest numbers on employment (and/or unemployment) have not been clear — since multiple government agencies, research groups and even media outlets continue to quote and report weekly, monthly and every time there is a spike one way or another in the statistics — this latest report by the Arizona Office of Employment and Population Statistics gives real hope of growth. But not without its caveats. Projections for the next two years are better than expected. The EPS, according to its latest two reports (May 4 and June 14, 2012), predicts higher than expected employment growth in all sectors and better than initially reported growth for 2013. This bodes well for this region overall, although still not meeting projections anticipated prior to the economic downturn. The May and June reports forecast a gain of 102,900 nonfarm jobs, representing a growth rate of 4.3 percent, over the two projected years of 2012 and 2013. An over-the-year gain of 47,100 jobs is projected in 2012 and 55,800 jobs in 2013. The rate of growth projected for nonfarm employment is 2.0 percent in 2012 and 2.3 percent in 2013. Indicators — including improvement in real Gross Domestic Product, real personal income at the state and national levels, employment,
industrial production, and wholesale and retail sales — suggest sustained growth over the next two years. Employment gains in the private sector, increasing private domestic investment, slow rise in total industrial production and rate of capacity utilization, high levels of corporate profit, and a slow resurgence in private residential construction permits also indicate that positive growth is real and outweighs much of the negative factors, including continued high debt; continued weak residential and commercial real estate markets; and reduced wages, benefits and increased employment insecurity brought on by the highest unemployment numbers in decades. Job gains are projected in all major sectors in Arizona, suggesting a substantive momentum in employment. Educational and health services will see the largest gains, followed closely by leisure and hospitality. Government will see the fewest gains, and natural resources and mining will demonstrate the greatest two-year decline in employment. Construction makes a strong comeback with consistent gains this year and in 2013. Manufacturing will improve by 2013, and professional and business services will also see a rise over this period, according to the EPS. —Mike Hunter
Economic Indicators (Metro Phoenix)
Unemployment (April 2012)
YOY % Change
No. of Housing Permits (April 2012)
Consumer Confidence* (Q2 2012 to date) (Arizona)
Job Growth (in thousands) (May 2012)
Average Hourly Earnings (May 2012)
Eller Business Research
Retail Sales (Arizona) Retail Sales (in thousands)
Restaurants & Bars
The average over-the-year percentage change for each sector for 2011, 2012 and 2013, with 2011 the base year and 2012 and 2013 as forecast years.
Arizona Sector Employment
Net Absorption (in SF)
Rental Rates (Class A)
Net Absorption (in SF)
Leisure & Hospitality
Educational & Health Services
Rental Rates (General Industrial)
Professional & Business Services
Total Sales Volume
Trade, Transportation & Utilities
Total Median Sale Price
New Build Sales Volume
New Median Sale Price
Natural Resources & Mining
Resale Sales Volume
Resale Median Sale Price
a) Historical (BLS Current Employment Statistics) b) Forecast Office of Employment and Population Statistics May 4, 2012, Employment Report
Key indicators for the Metro Phoenix economy are provided in each issue to identify those key numbers that give readers a sense of the health of our local economy.
Eller Business Research
Arizona Sector Employment Average Annual Over‐the‐Year Change (sorted by highest 2013 gains)
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* Rocky Mountain Poll ** Consumer Price Index refers to the increase or decrease of certain consumer goods priced month over month. *** Cassidy Turley BRE Commercial Latest data at time of press
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A View from the Top
Ron Lynch: Success or Bust
Restaurateur understands the power of presentation in casual dining by Lauren Caggiano Restaurant dining can be as much about the entertainment value as it is about breaking bread. This is where Ron Lynch put the emphasis as he developed the Tempebased Tilted Kilt Operating Franchise, LLC, of which he is president. The Tilted Kilt is a Celtic-themed sports bar and restaurant chain known for its scantily-clad female servers in kilts — all against a backdrop of a fun and entertaining atmosphere. “The entertainment value is to have a very strongly Celtic theme, interesting oddities covering the walls that fit that theme, funny Irish limericks in highly visible places, dark rich woods that portray class while giving the feel of the old-world Pub (Public House), sexy servers and bartenders making a connection with each and every guest,” Lynch says, summing up the franchise’s business plan. While Lynch is the face behind the brand, he is not the pioneer. The concept, originating in 2003 in Las Vegas, was the brainchild of successful restaurateur Mark DiMartino. His vision is what customers have come to know as the Tilted Kilt brand —
theme-driven costumes in a fun atmosphere. The restaurant enjoyed great success in the Sin City market, and it was not long before it caught Lynch’s eye. Lynch entered into several months of discussion, confirming that the Tilted Kilt had broad, far-reaching appeal and had what it takes to make it in multiple markets. It was then the franchise was hatched, and the headquarters moved to Tempe. Explains Lynch, “The original pub was an evening business deriving their business from the casino traffic. We converted the concept to a
Celtic Cunning ■■ Tilted Kilt Operating Franchise was founded
in 2003. Currently, there are 70 pub locations in 20 states around the country plus Canada. Lynch projects there will be 95 pub locations by the end of this year, an increase of more than 33 percent over the next six months. While locations are chosen based on high visibility, good population density with average or above income level and an age demographic that averages about 36 years old, Lynch says, “We are sensitive to areas that are made up of predominately religious groups that may have a problem with restaurants that sell alcohol.” Tilted Kilt Operating Franchise placed on Restaurants & Institutions magazine’s “Emerging Chains: 10 to Track” in 2008, was No. 2 on Restaurant Business magazine’s “Future 50” in 2009 and No. 17 on Franchise Times’ “20 to Watch” in Jan. 2010, and was named to the Inc. 500 list of the fastest-growing privately held companies in America in 2011.
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full-scale restaurant with lunch, happy hour, dinner and late evening parts.” In a time when many casual dining franchises are closing locations, the company is in growth mode. The Tilted Kilt Operating Franchise, LLC has what Lynch calls “a big footprint,” with about 70 locations scattered throughout the United States and Canada. According to Lynch, the company is on track to open more than 25 additional locations by the end of 2012. And the size of the workforce is equally as impressive. “At any one time, we have approximately 4,000 employees employed in the Tilted Kilt system,” says Lynch. The company’s success has garnered it national attention. Through Lynch’s leadership the franchise has racked up an impressive record of awards, including being named last year to the Inc. 500 list of the fastest-growing privately held companies in America. How is all of this possible in a down economy? “It’s all about people. I think we’re doing a good job of attracting quality people,” he shares. Lynch attributes the company’s success to two factors: structure and branding. A twotiered system is designed to most effectively penetrate the respective market. An area developer is charged with rallying support for the franchise and has a familiarity with the local real estate. The second level is the franchisee, who owns and operates the store — following universal branding standards determined by Lynch and his team to ensure consistency for the customer. While the name Tilted Kilt Pub & Eatery, type of costumes and décor were already inbusine ssmag.com
in place in the original pub concept, Lynch had a hand in expanding the brand. “Among many things, I had our own costume fabric woven, our tartan material fabric registered on the International tartan registry and new patterns made, manuals, procedures, standards put in place for operations, marketing, administrative, et cetera.” The Tilted Kilt brand is fueled by Lynch’s commitment to “The Code of the Clan Tilted Kilt,” by which he expects every person at every level of the organization to operate. The code embodies the values of pride, integrity, respect, strong work ethic and fun. Lynch says these values were defined early on by DiMartino, and are what keep the customer coming back for more. With the backdrop of traditional pub décor and modern atmospherics, the eatery still channels its Celtic namesake. Think oddities like kilts hung on the wall and faux painting to create an old, weathered look. Only 10 percent of the décor is allowed to be locally sourced, so as to maintain the authentic feel. And the fare pays homage to the old public houses of America, England, Scotland and Ireland, serving up a mix of traditional pub food like Fish & Chips and Shepherd’s Pie. Beers from around the world are also available. As Lynch explains, “We strive to make it so that immediately you recognize that old-world flavor. We want to be the modern-day pub.” Success, according to Lynch, lies in the company’s quality leadership. “I think we’re doing a good job of attracting quality people,” he says. It’s a point of difference that has kept the franchise strong even in a weak market. In fact, Lynch believes recent hard times have proven to be doubly an asset. First, the company has had increased access to some “prime real estate” for new locations. Second, the franchise gained many attractive candidates among otherwise displaced workers or those simply looking for a career change. “Our [concept] is about the entertainment value. If we keep the fun in it, we’ll keep growing,” Lynch says. And he emphasizes that it’s all about being genuine to one’s brand. “Understand what the purpose of your business is. At the Tilted Kilt, our purpose for being in business is the entertainment business, as opposed to Taco Bell’s purpose, [which] is convenience. Also, differentiate yourself in the market.” Tilted Kilt tiltedkilt.com
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BMO Harris BankSM and M&I® are trade names used by BMO Harris Bank N.A. Member FDIC *Headd, B. Office of Advocacy, SBA. “An analysis of small business and jobs.” (2010). http://archive.sba.gov/advo/research/rs359.pdf.
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Building Small Business How 13 local governments are gearing up for small business success by Alison Stanton
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East Valley Ascending Chandler
he many cities and towns that make up the Valley of the Sun may be diverse in their geography and population size, but they do share one goal in common: growing and supporting their small businesses. The Phoenix metropolitan area is a hotbed of entrepreneurial activity and without a doubt contributed to Arizona’s recent ranking by the Kauffman Index of Entrepreneurial Activity as the top state in the country for business start-ups. Small business is the engine of commerce, and one way that local governments are fueling this activity is through programs focused on education, incentives and professional services meant to catapult business starts and give small business “a leg up” in their communities. In Business Magazine has spoken to many people behind these efforts of local governments, to identify what is available to small-businesspeople and what successes they have had on our overall economy. inbusine ssmag.com
High-wage priority Chandler Mayor Jay Tibshraeny says that, although the city does not offer incentives to small businesses per se, it does provide a very friendly atmosphere in which to do business. “Our Small Business Assistance Team works with those entrepreneurs who need help in moving through the system to ensure a successful start-up. We also offer direction and advice through our Economic Development staff and in partnership with the chamber of commerce.” The Small Business Assistance Team is available to assist small businesses that are considering leasing commercial space in Chandler. “The team is available to businesses free of charge to walk the potential space with them and discuss their plans for the space,” says James Smith, economic development specialist for the City of Chandler’s Economic Development Division, explaining the team then provides feedback to the business to let them know of any prohibitions and/or work that would be necessary before the space could be occupied and the business opened. In general, Chandler’s economic development is primarily directed at retaining and attracting high-wage jobs in fields like research and development, high-tech manufacturing, electronics, biotechnology and aerospace/aviation. Smith notes that, as Chandler’s largest employer, Intel tends to attract additional companies to the city. And Chandler has an incubator that provides start-up companies in high-technology fields the opportunity to get started in modern laboratory space that is not only available at below-market lease rates but has a number of amenities not typically provided in other leased spaces, including electricity, water, sewer, phone systems and Wi-Fi. J u ly 2012
Gilbert Science & technology abound In the next 20 years, Gilbert will become a net importer of science and technology jobs, predicts Dan Henderson, director of economic development. “This will be achieved through stakeholder collaboration, encouraging innovation and the promotion of entrepreneurial activities within the Gilbert business community.” The Gilbert Office of Economic Development assists small businesses in four specific areas, Henderson says: site selection, research and information, connectivity and collaboration, and project management. The department offers assistance with navigating the internal development processes such as design and building plan review, state and local business licensing and obtaining certificates of occupancy. Says Henderson, “The client has an internal advocate guiding them through the entire start-up process to ensure their facility is up and running in as short a time frame as possible.” Henderson says fiscal year 2012 will conclude a four-year pilot program utilizing a community development block grant as the funding source to deliver entrepreneurshipfocused programming services. “Through a
community partnership between the Gilbert Office of Economic Development, the Gilbert Chamber of Commerce, Stealthmode Partners and Gilbert-based Infusionsoft, this program provided services to over 150 entrepreneurs in the community and concluded with a success rate of over 450 percent above the job creation and job retention requirement by the federal CDBG program,” he says. Evidence of this kind of success is Banner MD Anderson Cancer Center, located in Gilbert, which has helped bring in a variety of businesses of all sizes, Henderson notes. Spin-off activity from the soon-to-be 630,000-square-foot facility includes additional research facilities and medical practices, pharmacies, medical device identification, hotels and retail development.
Mesa City of the future Reducing red tape and unnecessary regulations that hinder small-business growth, which can help allow the government to be a facilitator of its success, are the greatest incentives Mesa can offer small businesses, says Mesa Mayor Scott Smith. “Mesa’s overall focus for economic development is twofold. First, we are concentrating on our core
industries identified by our H.E.A.T. Initiative: healthcare, education/energy, aerospace and tourism/technology. Second is building and expanding opportunities for entrepreneurs and small businesses to prosper in an environment where government is there to facilitate their success, not regulate it.” Bill Jabjiniak, economic development director for the City of Mesa, credits quality infrastructure and a talented work force for the city already seeing “significant benefit” in each industry space. And once a small business comes to Mesa, the city continues to foster a relationship with it to ensure it grows and prospers. Assistance from his department aims to minimize risk, facilitate development and grow the organization. An example he cites is the Neighborhood Economic Development Corporation LightRail Business Support Program, a partnership with the City of Mesa to achieve the Council’s Economic Development Strategic Initiative by administering an electric utility rebate program for eligible businesses during periods of construction along the light rail line. “NEDCO also partners with the city through the Community Development Block Grant program to offer Downtown Business Development loans and Micro Enterprise Development loans designed to support and encourage business development in Mesa,” Jabjiniak says. “The loans can range from $5,000 to $50,000, with flexible terms and fixed interest rates. NEDCO also provides technical assistance in general business, marketing, accounting, financing, human resource planning, organizational development and IT systems,” he adds. These examples demonstrate the city’s efforts to build business in Mesa.
Mesa: Bill Jabjiniak, economic development director for the City of Mesa, credits quality infrastructure and a talented work force for the city already seeing “significant benefit” in each industry space. And once a small business comes to Mesa, the city continues to foster a relationship with it to ensure it grows and prospers. 22
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A tech hotspot Lisa Collins, interim community development director for the City of Tempe, says, “We concentrate on businesses that would benefit best from the unique characteristics of our community, such as our educated work force, our location in the middle of the Greater Phoenix metropolitan area and our city’s vibrant downtown.” Observing that one out of every five jobs in Tempe is technology-based, she notes this sector is very important. Incentives are offered on a case-by-case basis. Collins says the city looks at the specific inbusine ssmag.com
needs of each company and determines specifically what Tempe has to meet them. “We offer customized processing for building permits and a very high level of customer service for our businesses. We also work with the Arizona Commerce Authority to ensure that businesses in Tempe are introduced to the variety of incentives offered at the state level.” In order to help small businesses succeed, the city works closely with ASU Venture Catalyst, SCORE, the Tempe Chamber of Commerce, Arizona Tech Council and a variety of other organizations. “Our local colleges also offer great small-business programs, such as the Maricopa County Community College District’s Small Business Development Center, located in Tempe,” says Collins. “By working closely with the companies already doing business within Tempe, we can offer introductions to other non-competing businesses who can partner with them for success.” Large businesses that are already in Tempe, like Silicon Valley Bank and Sunbelt Holdings, have helped bring in additional businesses, as has Arizona State University. “There are dozens of companies that spin out of ASU research and millions of dollars invested in ideas by companies who want to be part of that innovation,” Collins explains in identifying the great opportunities that Tempe offers to small business.
Phoenix at the Center A model for success “For qualifying business owners, we can help them with business-planning strategies, accounting assistance, finance, public and private procurement, organizational development and information technology solutions through local, private-practice business consultants,” says Kedrick Ellison, project manager for the City of Phoenix’s Community and Economic Development Department. Hundreds of local businesses have used these consulting services at no cost to the business owner, according to Ellison, who notes that many of these businesses then went on to create jobs. “Our business consultants can also assist with the development of human resource plans, including employee handbooks,” he says to demonstrate what Phoenix is doing on a basic level to build and maintain successful small businesses here. inbusine ssmag.com
Phoenix: Other services Phoenix provides are candidate screenings, referrals, interview scheduling and customized job fairs. Through its Business & Workforce Development Division, the city can help employers with finding and training talent. Other services Phoenix provides are candidate screenings, referrals, interview scheduling and customized job fairs. Through its Business & Workforce Development Division, the city can help employers with finding and training talent. Because accessing capital is another challenge that a small-business owner typically encounters when growing and expanding, Ellison says the city helps business owners through a collateral enhancement program called EXPAND. Local lenders have used this program to provide additional collateral for loan packages that did not originally meet their institution’s borrowing requirements, he explains. Ellison also credits two local companies — the utilities Salt River Project and Arizona Public Service — for encouraging the growth of other companies and helping smallbusiness owners become stronger. “SRP has partnered with the W. P. Carey School at ASU to provide mentorships for smallbusiness owners, and they provide valuable information through their Business Resource Center,” he says. “APS has a program called Advancement of Small, Minority and Womenowned Enterprises that has been developing small-business owners by having them meet at least twice a month, and paired with an
advisor for a period of two years, while they work on their individualized goals.” Recently, to give a competitive edge to small and local businesses seeking to do business with the city, Phoenix Mayor Greg Stanton worked with the city council to pass an online procurement system weighted in favor of local small businesses. Reiterating a point he makes as Guest Editor of this issue, he contends that “helping small and local businesses to compete in our procurement process is one crucial way that we can support our homegrown businesses and help them to grow and thrive.”
Scottsdale & Surrounding Areas Booming Scottsdale Up-market, pro-business Cindi L. Eberhardt, assistant director of economic development for the City of Scottsdale, says the department’s main focus is providing assistance to existing businesses by supporting expansion opportunities and services that will help them succeed by remaining in Scottsdale. “Attracting business to relocate or choose to develop in Scottsdale are also part of this focus. Given Scottsdale’s up-market profile, we concentrate our J u ly 2012
Scottsdale: Scottsdale does not offer any tax incentives to any businesses, large or small, says Scottsdale Mayor Jim Lane. “However, we do offer an unmatched pro-business environment with a highly educated work force. Our high tourism economic impact allows us to keep property taxes low,” he says. activities on high-paying jobs and advanced industry sectors,” she says. These sectors are biomedical/healthcare, financial services, education, software/technology, renewable energy and lifestyle/sports-related industries. Eberhardt notes that ASU’s SkySong incubator has been in Scottsdale for more than five years and contains nearly 60 companies in its 300,000 square feet of space. On the private side, she points to AZ Disruptors as an innovative concept that has offered startup assistance, including $20,000 in financial assistance, to 20 companies. Scottsdale does not offer any tax incentives to any businesses, large or small, says Scottsdale Mayor Jim Lane. “However, we do offer an unmatched pro-business environment with a highly educated work force. Our high tourism economic impact allows us to keep property taxes low,” he says. “We also offer the largest concentration of Class A office in Arizona, along with a sophisticated and established infrastructure.” Lane says that in order to strengthen the relationship between the city and the private sector, he is in the process of organizing a comprehensive review and rework of the city’s entire regulatory and permitting processes. “We are not only going to cut red tape but we are also going to help businesses get in and out of the system as quick as possible. As a businessman myself, I know too well that overburdening red tape can act like a red light to business.”
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Carefree Charm & vision Carefree’s overall focus for economic development is to first enhance its aging town while maintaining its Southwestern charm, says Melissa Price, vice mayor of Carefree. Noting there are approximately 15 capital improvement projects that are part of a longterm plan recently adopted by the Carefree Town Council as a “vision” for the future, Price says, “Each of the projects is geared toward enhancing and positioning the town to entice future businesses to list Carefree as their number one town choice when the economy starts to recover.” Although the town does not offer incentives per se, Price says there is a definite willingness to work with new businesses and facilitate their success through interaction and knowledge. Mayor David Schwan says the town has been working over the past year to increase municipal facilities to help visitors and residents once they get into town. “For example, we are working to get more pedestrian lighting that will help encourage businesses to stay open longer,” he says. “Up until five years ago, we had no pedestrian lighting at all.”
Cave Creek A new way of doing business Several years ago, when the economy was starting to crumble, Cave Creek’s Mayor Vince Francia asked a group of citizens with a broad range of experience in the fields of business
and finance to make recommendations to the town government for adapting to the changing economic reality. According to Ian Cordwell, Cave Creek’s director of planning, they produced a white paper that yielded more than 30 recommendations for changing the way the town should do business — all of which the town has followed through on. Mayor Francia says that Cave Creek’s historic town core — one of Cave Creek’s identified business centers — now allows for more “free reign and for things like special promotions that help bring more people into the area.” At the other business center — the intersection of Carefree Highway and Cave Creek Road — a Walmart recently opened, which Francia notes is causing smaller businesses to apply to come in and be near it. While the town does not offer financial incentives for businesses, Cordwell says the staff is continually planning for and implementing the installation of walking paths and bike lanes throughout the town, intended to make it easier and safer for shoppers to get to and around the shopping areas.
Fountain Hills Attracting business The Town of Fountain Hills is reviewing and updating its comprehensive economic development plan, says Lori M. Gary, Fountain Hills’ economic development administrator. Overall emphasis for business attraction is on three industry sectors: professional, technical and scientific services; healthcare, medical and bio-medical; and finance and insurance. “Promoting Fountain Hills as a visitor destination, putting resources into tourism and local events, will also have the complementary result of increased economic activity for our businesses,” says Vice Mayor Ginny Dickey.
The West Valley Emerging Glendale Redevelopment & assistance Business retention and expansion, business attraction, business assistance and redevelopment are the pillars of Glendale’s economic development program, according to Brian Friedman, executive director of the Community and Economic Development Department. “In addition we have identified specific industries we are targeting to attract and retain in Glendale,” he says. These targeted inbusine ssmag.com
industries include education, technology, hospitality and healthcare. Glendale has also been working with its existing and small-business partners to establish a consortium of resources that provide a wide variety of assistance to small business in Glendale and all of the West Valley, Friedman notes. “Whether a business needs mentoring, marketing assistance, access to government contracts, inventory control, training, networking opportunities, entrepreneurship assistance, or business plan assistance, this consortium of partners offers specific programs to meet small-business needs.” Another high priority for building the smallbusiness community is redevelopment of the downtown area. Pointing to the recent action of the city council, approving a lease with Jivemind to use a city building to establish a musical incubator where musicians of all skills can learn, practice and record music, Friedman says the venue will also host weekly jam sessions that the public can attend. “We are making every effort to expand our cultural offerings in the downtown as a way to attract new patrons to our downtown shops and eateries, which further supports many of our small businesses.”
Goodyear Resources & responsiveness In order to attract small businesses, Goodyear considers incentives on a caseby-case basis, depending on the overall economic impact of the business to the local community, says Harry Paxton, economic development manager for the City of Goodyear. “These incentives could include expediting of permits and funding part of the plan review and permits fees if the economic impacts are significant.” In addition, Goodyear has committed resources in several ways to help small businesses prosper, including the recent addition of the Business Advocate position, which strengthens the department’s connection with businesses and provides greater responsiveness to the business community’s needs. Other programs Paxton cites include the “Shop Goodyear” campaign to encourage local purchases for the holiday season, the sign kiosk program to help with marketing, and the city procurement code that provides special consideration for Goodyear businesses. Goodyear has also maintained an active inbusine ssmag.com
Business Retention and Expansion program for some time, which involves visiting with already-established small and large businesses to ensure the city is meeting their needs and that the community is a place where their business can continue to thrive, Paxton says.
Peoria Open for business Peoria is focusing its economic development efforts on bringing in a variety of industries, including biotech, healthcare and higher education, says Mayor Bob Barrett. “As a city, we have three major investment zones, a technically skilled and educated work force, and good infrastructure” — which, he emphasizes, makes Peoria an ideal location for small businesses to relocate and expand. There is also commercial space available, and the city has been proactive in addressing the issue of vacancies. Debbie Pearson, business development specialist for Peoria’s Economic Development Services Department, says the city presents Broker Open Houses, inviting brokers throughout the metro area to learn about all the good things happening in Peoria. A small-business program that includes seminars, workshops and/or courses on a wide range of topics is another way Peoria entices small businesses to set up shop. Says Pearson, “They help the small-business owner run their business more successfully. A couple of the courses even include certification and college credits. We regularly partner with other organizations to offer as much expertise [as is] available.” Such a partnership is BioInspire, which, as of press date for this issue, is on track to open in June in Plaza Del Rio. Peoria’s first incubator-accelerator for biomedical devices is a partnership between the City of Peoria; BioAccel, a nonprofit organization focused on strengthening the economic development of the life-science sector in Arizona; and Plaza Companies, a Peoria-based development company with expertise in healthcare. The City of Peoria is also focused on attracting targeted industries such as renewable technologies, healthcare and biotech, clean manufacturing, and universities, with the expectation that the larger companies will attract “smaller supporting and complementary companies,” such as has already happened with BioInspire, Pearson explains.
Surprise Quality, not quantity Small business is a very big part of Surprise’s economic strategy, says Assistant City Manager Jeff Mihelich. To that end, the city offers a variety of programs and support to help them succeed. “We’re looking to grow more successful local businesses and highquality job opportunities.” AZ TechCelerator, the city’s business incubator, is one of the ways Surprise reaches out to support small business. “At the AZ TechCelerator, we offer low-rent space and free mentor connections that many of our young tech-based and innovative companies need access to,” Mihelich says. A Small Business Advocate has been added to the city’s economic development team, working very closely with the small-business community and assisting them with business licensing, permitting questions and other needs. And Mihelich notes that larger businesses are also helping small businesses succeed. The city is launching a business roundtable this summer to bring the business community and city staffers together, and Surprise Mayor Sharon Wolcott notes the purpose is to “explore new ideas for how Surprise can be even more supportive of our local employers.” She believes further growth is on the horizon. “I am also very excited about the economic development opportunities that await Surprise when the Loop 303 widening is complete.” With the commitment these 13 cities and towns have to supporting, growing and maintaining their small-business communities, the future looks bright for small-business owners throughout the Phoenix metropolitan area. Businesspeople may be encouraged by these efforts and the examples of success from the Valley’s local city councils and economic development offices. Town of Carefree carefree.org Town of Cave Creek cavecreek.org City of Chandler chandleraz.gov Town of Fountain Hills fh.az.gov Town of Gilbert gilbertaz.gov City of Glendale glendaleaz.com City of Goodyear ci.goodyear.az.us City of Mesa mesaaz.gov City of Peoria peoriaaz.gov City of Phoenix phoenix.gov City of Scottsdale scottsdaleaz.gov City of Surprise surpriseaz.gov City of Tempe tempe.gov
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People Are Key
Social Networking — Off-limits in Employment Decisions? Employers, be wary in pre- and post-hiring use of social networking sites by Alastair Gamble In the last several weeks, a minor firestorm has developed over private employers’ use of social networking sites, such as Facebook, to inform their employment decisions. Though the controversy about social networking sites was not exactly news to employers — many of whom have been monitoring employees’ Facebook, myspace, and similar pages for years — recent reports that some employers were demanding prospective employees to hand over their Facebook passwords has brought the controversy to new heights. As a consequence, new federal and state laws have been introduced and major litigation threatened and initiated, leading many employers to wonder if their own policies and practices are legally compliant. Social networking sites factor into the employer-employee relationship typically in one of two ways: The employer visits a job applicant’s publicly available social networking pages to gather information for the hiring decision; or the employer somehow discovers a current employee has posted a negative or critical comment regarding his or her employment on a social networking site, and the employer takes disciplinary action against the employee (including termination).
“Get Outta My Facebook!” Unfortunately for employers, these practices have led to several lawsuits, typically on discrimination grounds. Social networking pages often contain information that the employer is forbidden from considering in making employment decisions. For example, an
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employer could discover the employee’s religion (with a status update such as “Happy Easter!”), age (“I’m enjoying my 50s more than my 20s!”), marital status (“I love my wife!”), sexual orientation (“I also love my boyfriend!”), disability (“My arthritis is acting up today.”), and genetic information (“My dad is finally in remission!”). Therefore, making an employment decision after the employer views these pages created the appearance that the forbidden personal information had affected the decision, a post hac ergo propter hoc conclusion that logic eschews but that employment lawsuits eat up like candy. As a result, many employment attorneys had recommended that employers discontinue the practice of screening prospective employees with help of the candidate’s social networking posts. Some employers have been reticent — these sites often (especially where more personalized expression is common, such as Facebook) give employers a fuller picture of an applicant than a resume and 30-minute interview. (Indeed, a recent article in the Journal of Applied Social Psychology suggests that an applicant’s Facebook page is a better indicator of success on the job than most personality tests.) And, after all, since people control not only what they put on their social networking pages but also who can access that information, the thought was, “You have no one to blame but yourself.” Though this is a reasonable position academically speaking, it unfortunately does not shield the employer from the specter of liability. Especially in light of the recent password-nabbing controversy, visiting inbusine ssmag.com
Books an employee’s or job candidate’s social networking pages is fraught with legal danger. Unless the employer makes the precarious business decision that a discrimination lawsuit is less terrifying than making a hiring decision based only on resume, reference and interview, the employer should stop this practice immediately.
Is It Unionizing? Adding insult to injury, the National Labor Relations Board has begun bringing charges on behalf of non-supervisory employees who were terminated for posting critical social networking comments about their job, co-workers or supervisors on the grounds that these posts could, in the right light, be seen as concerted unionizing activity, which is protected under federal law, even if the employee does not advocate for, or even mention, a unionized work force. Many employers have balked at these lawsuits, partly because many are surprised that they are subject to the NLRA when they do not employ any unionized employees, but mostly because employers genuinely believe it is their prerogative to protect the company’s reputation (and that of its employees) from disparagement in a mostly public forum — an unquestionably legitimate position to take. The pattern of NLRB litigation suggests that employers can prohibit certain kinds of social networking activity under certain circumstances. For example, employers can (and should) have policies restricting an employee’s disclosure — including, importantly, on social networking sites — of trade secrets, securities information, and other confidential subjects. An employer should also have policies prohibiting harassment of other employees, which legally can occur on a person’s social networking page. Moreover, though broad policies prohibiting employees from making “disparaging” comments are generally struck down, it does appear that an employer may adopt policies prohibiting an employee from making comments about the employer (or other employees) that are “vulgar,” “obscene,” “threatening” or “harassing.” However, though employers make take some solace in this nuance, the law is currently evolving and the line as to whether a post is protected or grounds for termination remains unclear. Employers should therefore first seek advice from legal counsel before taking any adverse employment action where a social networking post may influence (or may be perceived as influencing) the decision. Though the foregoing may be sufficient advice for the present, the recent controversy over employers demanding social networking passwords may soon result in more intense scrutiny of existing policies and practices. Employers should take this opportunity to update all policies in accordance with the law and also give human resources directors and supervisors clear direction relative to any employment action in which an employee’s social networking pages or posts might be a factor. Employers should also follow state and federal lawmaking efforts to make sure they are fully informed of any new regulations regarding an employer’s use of social networking sites. Lewis and Roca, LLP lrlaw.com
Alastair Gamble is an attorney in the Phoenix office of Lewis and Roca, LLP, where he specializes in labor and employment litigation defense. He is licensed to practice in Arizona and California.
New-World Thinking Work Happy: What Great Bosses Know
Management guru Jill Geisler provides a practical, step-by-step guide — based on real-world experience and respected research — and lessons that will transform managers and their teams. It’s a workshop-in-a-book, designed to produce positive, immediate and lasting results. Geisler offers concrete steps for improving each element of management, including collaboration, communication, conflict resolution, motivation, coaching and feedback, so that everyone on the team — whether in the office or working offsite — can do their best. This book takes management skills to the next level and proves that learning, leadership and life at work can (and should) be fun.
Jill Geisler $24.99 Center Street On shelves and online
The Boy Kings: A Journey into the Heart of the Social Network This book takes readers into the heart of the fast-growing information empire of Facebook, inviting readers to high-level meetings with Mark Zuckerberg; lifting the veil on long nights of relentless hacking and trolling; taking us behind the scenes of raucous company parties; and introducing us to the personalities, values and secret ambitions of Zuckerberg and others who are redefining the way we live, love and work. By revealing what’s really driving both the business and the culture of the social network, Losse focuses on the biggest questions of all: What kind of world is Facebook trying to build, and is it the world we want to live in? Katherine Losse $26 Free Press On shelves and online
The 7 Hidden Reasons Employees Leave: How to Recognize the Subtle Signs and Act Before It’s Too Late People are four times more likely to leave a job because of something going on in the office than for an outside opportunity. Yet most managers blame employee turnover on the lure of other companies, even when the real factors are well within their control. Based on research performed by the prestigious Saratoga Institute, this book provides readers with real solutions for the costly problem of employee turnover. Now incorporating the results of the author’s “Decision to Leave” post-exit survey, the second edition features new research in employee engagement as well as innovative best practices for engaging and retaining in a down economy.
Leigh Branham $24.95 AMACOM August 2012
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Risks & Rewards
Priced for Business: Starting a Consumer Enterprise Financial decisions are at the heart of starting — and succeeding — in business by Victor Green It’s common sense but often overlooked: To start a business, you must plan a strategy to decide what part of the potential marketplace you are going to attack. First, obtain the relevant facts about your competitors and the importance of your chosen marketplace and its potential for growth. From this, assess what you can aim to achieve and how you can be different from what others offer. Price, although not the only consideration, is an important factor in your business plans. Selling at a lower price than a competitor just to increase sales will not necessarily improve your profit. This is usually a foolish move because your competitor may also reduce his price, to just above your reduced price — which will push your price even lower and you will not make money. In fact, it is more than likely that his sitting on your prices will force you out of business. This is common practice when a new business starts to enter an industry with low prices. The established company will have larger resources and can sit on you by lowering its prices and force you out of business. Once you have closed down, the other company can raise its prices again to profitable levels as before. Perhaps surprisingly, the opposite approach can provide a successful entry. Some years ago, a cosmetics manufacturer was set to launch a new cream it claimed would reduce facial wrinkles. Products with the same or similar ingredients were already on the market, selling at $15 to $25. The company’s research team suggested pricing the new product at $95, as this would appear to make it far better than the others simply because of its price. Guess what? They were right. The product sold well, even though it had the same ingredients as the other creams. Low prices are not always the way forward. Many people are willing to pay a bit more if it gets them “Rolls Royce service.” People will pay for something special or something that makes them feel special. It is the equivalent of giving customers one-on-one service,
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something we all love and want. If low prices were always the major factor for products, why is it that we do not all buy the lowest-priced cars? The cheapest-priced houses? Fly on budget airlines? We all want to choose how we spend our hard-earned money and choose the level of quality and service we want. That is why price is not as material as many people think. If you can survive in business only with lower prices, you are on thin ice. Businesses survive on good service, customer loyalty and innovative ideas.
Vanity or Sanity — Sales or Profit Do not be blinded by your sales figures. If they do not produce a bottom-line net profit, they are meaningless. Sales figures are vanity; profit is sanity. Growing your company’s sales is great, but only if the bottom line grows at the same rate. Profits must increase in line with additional sales — the top and bottom lines must be in sync with each other for you to make a real success of your business. One company I worked with had sales of about $2 million, but with net profits of only a few thousand. When I looked at the company’s overall costing structure, I found it to not be based on any particular strategy or even related to the actual running costs of the company. Rather, charges to clients were based purely on guesswork and varied with the individual client. The largest customers were charged less, took the longest time to pay and always questioned every invoice. These clients got their invoices discounted because they played up the fact of being major national companies. Incidentally, the large customers also expected an immediate visit from a service technician when they called, often refusing to pay overtime for night and weekend call-outs.
I found that of the company’s $2 million in sales, $750,000 was coming from the larger customers who were abusing the company with payment terms. I suggested that by removing these customers, the company’s profits would increase substantially, and recommended substantially reducing the sales figures to make the business profitable. Very unusual to voluntarily reduce sales to make a profit! I also put in place a minimum maintenance call-out charge plus a contribution to travel expenses, charging each mile of travel to clients for service calls. This was accepted by all of the customers as being fair and reasonable. The business reduced its sales by 37.5 percent, which, combined with a few staffing changes as well, translated into a net profit in excess of $100,000 — more than 33 times its previous profits. inbusine ssmag.com
What counts, then, is the bottom line — the net profit. You, the boss, get paid only from what is left after everyone else has been paid. Make sure your efforts are sensibly rewarded.
The Risk of Large Customers It is dangerous to have a customer — or supplier — that accounts for most or all of your sales. Such reliance leaves you vulnerable to their failure, so spread your risk. If you rely on one supplier or major customer and that company goes broke, you will likely go down with them. Just look at the recent recession that saw suppliers to banking services and the automotive industry lose their businesses overnight. You should have a maximum exposure to a client or supplier of no more than 20 percent. Then, if either the customer or supplier should stop doing business with you for any reason, your business will still be able to function. This may not be feasible if yours is a specialist business. However, if you do rely on only a few suppliers or customers, maximize your profits, save them and then use them carefully to diversify your business. This will reduce your reliance on a few customers.
Sales and the P&L There should be only one answer to the question, “Are you financially managing your business successfully and profitably?” It has to be, “Yes!” And to run a business profitably, you must have accurate and up-to-date financial information; you cannot guess if you are making a profit or a loss. People who say they are doing well but do not have a monthly Profit and Loss Statement don’t really know if they are making money. They are just kidding themselves. It’s like flipping a coin: Heads, we’re making a profit; tails, we’re taking a loss. The excuse for not having up-to-date financial information is often, “I cannot afford an accountant.” But for a nominal hourly rate once or twice a week, you should be able to afford one. If not, then we know you are losing money — or you are not making much money. Every business, large or small, needs financial information. And it will tell you more about your business than just whether you are operating at a profit or a loss. It is important to take the time to read, understand and interpret your P&L. A detailed P&L is a breakdown of income and expenditure over a 12-month period. This will show, monthly, exactly the amount you inbusine ssmag.com
have sold and the type of products you have sold. It also lists exactly what you have spent to get your sales income, plus detailing your overhead and expenditures. From this information, you will be able to see sales trends, such as whether sales were higher in one month and lower in another. You can then investigate the reasons for those differences — perhaps a holiday period, or hot or cold weather. Once you have the answers, you can direct your advertising and marketing to peak periods and reduce them when the sales are low. You can also devise promotional activities when times a good and even when they are bad, to improve sales. Likewise, you can look at the expenses in the P&L to see if you can reduce them at bad times and save money — which, in turn, translates into increased net profit. Going through the expenses each month will also enable you to look at ways of reducing costs by reorganizing some of your business practices and operations. Do you need so many cell phones, cars or trucks? Are you spending too much on gas and vehicle maintenance by making your own deliveries? Business owners, be sure to include your own salary in the P&L. One of the reasons businesses do not make a “true profit” is the owners often forget to include this vital cost in their overhead. You must always add the salary you think you should earn, even if you do not take it initially. This will at least take into account what you want to earn once the business is successful. If you do not add in your salary initially, you will need to make substantial increases to your charges later on, which may well cause problems for your business. Developing and running a successful business requires research and forethought, fulfilling customers’ needs and taking a hands-on approach to each and every project. Owners need to leave their egos at the door. The most important thing to remember when starting or running a business is that it is there to make money. The last time I checked, no bank accepts ego as a deposit. How to Succeed in Business by Really Trying howtosucceedinbusiness.com
Victor Green, author of How to Succeed in Business by Really Trying, has a long record of founding and growing businesses in a variety of industries. Now retired, he lectures and mentors small business owners and new entrepreneurs in conjunction with SCORE and the U.S. Small Business Administration.
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NonProfit Literacy Volunteers of Maricopa County: Providing the Power of Reading
by RaeAnne Marsh
Actions to build Community
■■ EVENT: Devour Hunger for Waste Not, ■■
July 17-31. Aiming to raise enough money to feed 100,000 people, Devour Phoenix restaurants are donating proceeds from featured dishes. Participating Devour Phoenix restaurants are Astor House, Beckett’s Table, Bliss/ReBar, Cibo, FEZ, Gallo Blanco, Humble Pie, The Parlor, St. Francis, Switch, Tuck Shop and Urban Beans. Waste Not is not a food bank. Since it does not warehouse food, expenses are minimal. Most of the operating budget goes to maintaining the trucks and paying the drivers. “Drivers are paid professionals because the job is so complex,” says Mitten, explaining that as the food — most of it perishable — is picked up, decisions must be made immediately as to the most suitable of the 100-plus recipient organizations to deliver it to.
as they work through their self-paced reading program. Others offer instruction in a more traditional classroom setting. Retired or recent college grad, they represent a variety of professions — but all share an appreciation of reading. Their commitment puts a face on the mission of LVMC: to achieve literacy in Maricopa County. Literacy Volunteers of Maricopa County literacyvolunteers-maricopa.org
■■ EVENT: Save the date — Feb. 16
& 17, 2013, for the book fair put on by Volunteer Nonprofit Services of Arizona. Literacy Volunteers of Maricopa County is a main recipient of that effort, which usually sells more than 600,000 books. Other funding comes from government grants, endowments and a strong donor base. Literacy Volunteers of Maricopa County is one of few adult education programs left in the community that is still focused on basic and intermediate reading instruction.
■■ LVMC can serve 300-350 students at ■■
its main center in central Phoenix, and 100-120 at its north center; over the course of a year, it serves more than 1,500 students. Last year, 83 active volunteers donated more than 6,000 hours.
Waste Not: Saving Food to Feed the Hungry Every day, 7,000 pounds of food — steak, milk, pastries, produce — is not simply tossed on a garbage heap and left to rot. Thanks to Waste Not, surplus but perfectly good food from caterers, resorts, grocery stores and other establishments is rerouted to community centers, senior centers, homeless shelters or other locations that can make immediate use of it. “It’s so much easier to just throw the food away, so when our partners take the time to collect the food for us — that’s huge,” says
Dee Mitten, executive director of Phoenix nonprofit Waste Not. Smaller restaurants do not have large enough kitchens to generate the large quantities that make a pick up worth the expense of time and resources. Looking for another way to support Waste Not, the independent restaurants of Devour Phoenix, part of Local First Arizona, have partnered with Waste Not for a summer fundraiser: Devour Hunger for Waste Not. The restaurants will donate the proceeds from featured dishes that use local food purveyors. Mitten sees the fundraiser having a dual benefit: “We want to drive customers to restaurants and help them in the summer — they do so much for the community — and expose the fact there are still hungry people in the summer.” One in four children in Metro Phoenix goes to bed hungry; with every dollar donated, Waste Not feeds six or seven people. Devour Phoenix devourphoenix.com Waste Not wastenotaz.org
In business to do good for the community, nonprofits enrich the lives of those who contribute as well as those who receive. In Business Magazine showcases two nonprofits in each issue, focusing on their business organization and spotlighting an upcoming fundraising event.
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Photos: Literacy Volunteers of Maricopa County (top); Waste Not (bottom)
It’s a whopping 45 percent of the Phoenix population that can benefit from reading instruction, says Kelly Stewart, executive director of Literacy Volunteers for Maricopa County. Some need instruction in English as a second language (many students are referred from the Somali and Sudanese refugee center, Stewart notes); some struggled in school themselves and now, as parents, want to help their children do better. Arizona’s Department of Education estimates one in five adults in Phoenix reads below fifth-grade level. “We don’t realize how much of the population doesn’t have sufficient skills to do the things we take for granted every day,” says Stewart. She notes that some of LVMC’s students do not have a reading level that gives them access to high-school material, so for those without a high school diploma, “We have to increase their reading level before they can study for the GED.” Some volunteers work in the computer lab, providing one-on-one assistance to students
O n t h e Ag e n D a
A listing of Greater Phoenix business organizations and their events. Visit www.inbusinessmag.com for an expanded monthly calendar of educational, networking and special business events.
Hacknights Wednesday nights — 6:00p – 10:00p Gangplank has become known as a collaborative work space, developed from a belief that a sharing of ideas fosters innovation in business endeavors. Every Wednesday night, Gangplank Chandler presents Hacknight to give this concept a somewhat more focused push. “It’s a free-form-style of event,” says Mike Benner, CTO of Authority Labs, a Gangplank anchor company. Energized more by ideas than the pizza and drinks provided, attendees mingle, remix and check ideas around the group. This can lead to a long conversation and dialog on a new project or theory. Or, says Benner, “Someone may have a great idea of what to build real quick. They’ll sit down and start cranking out project — hacking it out that night.” Attendees can build a proof of concept or a prototype, taking advantage of the laser cutter and 3-D printer on site. There may be a single focus for the evening — although this is rare — as when Sorenson Media presented a project it needed help with: Find Me Haiti, a proof-of-life website it was developing to help Haitians connect with loved ones in the aftermath of the country’s devastating earthquakes. “There are other groups, such as reading groups, that come in on Hacknight just to share the energy and dialog that’s going on in the room,” says Benner. Although these groups hold their meetings apart from the Hacknight activity, they appreciate the atmosphere of the event. A typical evening may attract 25-100 attendees, representing a wide variety of skill sets that include designers, Web programmers and those with expertise in hardware or assembling. “Each Hacknight is driven by the people who show up,” says Benner. Noting, “You don’t need to have an expertise,” he says some people come for advice or just conversation. —RaeAnne Marsh Gangplank gangplankhq.com
W. P. Carey School of Business
‘Driving Employee Engagement’ Workshop Fri., July 13 — 8:00a – noon Business loses when employees are not engaged in their work, experiencing lower productivity and increased costs. Yet research shows this disengagement is rampant today — and it’s a worldwide issue. W. P. Carey School of Business at ASU is presenting an interactive workshop on July 13 at the ASU Research Park in south Tempe that will give attendees practical lessons they can apply immediately when they return to the office. “The purpose of the workshop is to have a highly engaging, active application of concepts,” says Dawn Feldman, executive director of the school’s Center for Executive and Professional Development. Activities such as case work, group discussions, break-out team discussions, application exercises, role playing and simulations will occupy most of the workshop time, following an initial overview of critical concepts. Specific learning objectives are to enable participants to define employee engagement and explain its three major components, discuss a model of employee engagement that specifies its causes and consequences, and apply to model the employee engagement. Professor Angelo Kinicki will lead the employee engagement workshop. In addition to having published many books and articles on his research areas of leadership, organizational culture, and employee response to organizational change and involuntary job loss, Professor Kinicki has been honored with the Teets Outstanding Graduate Teaching Award for 2009-2010 and the Outstanding Teaching Award — MBA and Master’s Program for 2007-2008, among others. Cost for the half-day workshop is $550. Discounts are available for groups of three or more, ASU alumni and members of the Economic Club of Phoenix. The deadline for registration is July 11. —RaeAnne Marsh W. P. Carey School of Business Center for Executive and Professional Development wpcarey.asu.edu/professional-development
Notable Dates This Month Wed., July 4
Agenda events are submitted by the organizations and are subject to change. Please check with the organization to ensure accuracy. See more events online at www. inbusinessmag.com.
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O n t h e Ag e n d a AHWATUKEE FOOTHILLS CHAMBER OF COMMERCE Red, White and Boom Fireworks with the Radio Disney Road Show! Tues., July 3 3:00p – 11:00p
Highlights include live entertainment, water park kid zone and eating competitions. Free Ahwatukee Country Club 12432 S. 48th St., Phoenix ahwatukeechamber.com
ARIZONA ASSOCIATION FOR ECONOMIC DEVELOPMENT Luncheon
Tues., July 10 11:15a – 1:15p
“The Intersection of Higher Education and Economic Vitality” — speaker: Rick Myers, chairman of the Arizona Board of Regents. Members: $40; guests: $40; nonmembers: $50; must RSVP by July 6 Phoenix Country Club 2901 N. 7th St., Phoenix email@example.com
ARIZONA TECHNOLOGY COUNCIL Lunch and Learn: Full Service Data Center Solutions Tues., July 10 11:30a – 1:00p
Industry experts discuss the types of technology solutions available to meet different requirements. Presented by Phoenix NAP. Members, free; non-members: $15. Lunch is provided. Phoenix NAP 3402 E. University Dr., Phoenix aztechcouncil.org
VIP Networking Event Thurs., July 19 5:00 – 7:00p
Arizona Technology Council’s Board of Directors and state legislators have been invited to this special evening. Presented by Junior Achievement Arizona. Members, $15; non-members: $25. Food and drink are provided. Junior Achievement of Arizona 636 W. Southern Ave., Tempe aztechcouncil.org
Lunch and Learn: If You Built It, Will They Come? The Importance of Market Research Tues., July 31 11:30a – 1:00p
How to conduct market research and where to find information to develop a marketing plan. Presented by Maricopa SBDC. Members, free; non-members: $15. Lunch is provided. ASU SkySong 1475 N. Scottsdale Rd., Scottsdale aztechcouncil.org
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CENTRAL PHOENIX WOMEN Luncheon
Wed., July 18 11:30 a.m. – 1 p.m.
Cooking with Chef Toevs and tips on business entertaining. $75 The Ritz-Carlton, Phoenix 2401 E. Camelback Rd., Phoenix centralphoenixwomen.org
CHANDLER CHAMBER OF COMMERCE The Business of Business Golf — Networking on the Fairways Wed., July 18 6:30a – 10:00a
Members: $29; non-members: $40. Includes golf, cart and breakfast. The Foothills Golf Club 2201 E. Clubhouse Dr., Phoenix firstname.lastname@example.org
ECONOMIC CLUB OF PHOENIX Leadership Development Workshop: Driving Employee Engagement Fri., July 13 8:00a – noon
GREATER PHOENIX CHAMBER OF COMMERCE Professional Women’s Roundtable Tues., July 10 11:30a – 1:00p
“From Bedside to Board- Navigating into a Leadership Role” — Speaker: Patty White, president & CEO of St. Joseph’s Hospital and Medical Center. Members: $15; non-members: $25. Includes lunch. National Bank of Arizona Conference Center 6001 N. 24th St., Phoenix (602) 495-2194
Chamber Institute: Retention/ Customer Service: You Have New Customers … Now Keep Them! Tues., July 17 11:30a – 1:00p
Part 4 of GPCC’s Chamber Institute. Speaker: Jackie Thompson, Community Affairs & Grassroots, Southwest Airlines Co.; facilitator: Karen Poole, Maricopa Community Colleges. Free. Greater Phoenix Chamber of Commerce 201 N. Central Ave., Phoenix (602) 495-2194
$550; discounts available for some groups ASU Research Park 8750 S. Science Dr., Tempe (480) 965-7579 (See article on page 31.)
NATIONAL ASSOCIATION OF WOMEN BUSINESS OWNERS
“Master Your Systems — Five Strategies to Make More Money, Find More Time and Have More Fun” — Speaker: Laura Gisborne. Members: $38; non-members: $48 Phoenix Country Club 2901 N.7th St., Phoenix nawbophx.org
Wednesday nights, weekly 6:00p – 10:00p
Project time, open house, jam space and brainstorming session all rolled into one. Free Gangplank Chandler 260 S. Arizona Ave., Chandler chandler.gangplankhq.com/events (See article on page 31.)
Startup Weekend Chandler
Fri., July 27 – Sun., July 29 Starts 6:00p on Fri., all day on Sat. & Sun.
52 hours to make your startup dream(s) come true. $75 ($100 after July 1); developer/designer: $50; student: $25 Gangplank Chandler 260 S. Arizona Ave., Chandler Tyler Hurst, email@example.com
GLENDALE CHAMBER OF COMMERCE S.C.O.R.E.
Mon., July 2, 9, 16, 23 9:00a – noon; call for appointment
Free Glendale Chamber of Commerce 7105 N. 59th Ave., Glendale (623) 937-4754
Networking Luncheon Wed., July 11 10:45a – 1:00p
NAWBO University Wed., July 11 9:30a – 11:00a
“How to Manage and Understand Your Business Finances” — Presented by Barbara Appenzeller, president of Appenzeller & Associates CPAs, P.C. Members: free; non-members: $30 Phoenix Country Club 2901 N.7th St., Phoenix nawbophx.org
NORTH PHOENIX CHAMBER OF COMMERCE Business 2 Networking
Fridays throughout the month Noon – 1:00p
Members and Networking Phoenix Passport members: free; non-members: $10 Moon Valley Country Club 151 Moon Valley Dr., Phoenix Edward Gomillion, (602) 482-3344
Business 2 Business Mixer Thurs., July19 5:30p – 7:00p
Members and Networking Phoenix Passport members: free; non-members: $10 Rock Bottom Brewery 21001 N Tatum Blvd., Phoenix Edward Gomillion, (602) 482-3344
PEORIA CHAMBER OF COMMERCE Meet the Business Coach — Solutions for Your Issues Mon., July 9 12:30p – 1:30p
Learn how to make strategic introductions to maximize your reach. Presenter:Michelle Cubas. Free Peoria Chamber of Commerce 8631 W. Union Hills Drive, Peoria Michelle Cubas, (623) 518-2125 (option 2)
SCOTTSDALE AREA CHAMBER OF COMMERCE A.M. Connect — Roundtable Exchange Thurs., June 21 7:15a – 9:00a
Members: free; guests: $20 Maggiano’s Little Italy 16405 N. Scottsdale Rd., Scottsdale scottsdalechamber.com
Community Conversation on the Future of the Northeast Valley Thurs., June 26 7:30a – 9:00a
A Community Conversation on the Future of the Northeast Valley with The Honorable Greg Stanton, Mayor of Phoenix and The Honorable Jim Lane, Mayor of Scottsdale. Members: $45; guests: $60 The Fairmont Scottsdale Princess 7575 E. Princess Dr., Scottsdale scottsdalechamber.com
Airpark Forum: Airpark Real Estate Update Fri., June 29 7:30a – 9:00a
Members: $20; guests: $30; day of event: add $5 ZONA Resort Suites 7677 E. Princess Blvd., Scottsdale scottsdalechamber.com
SoSco Meet Your Neighbors Lunch Fri., July 13 11:30a – 1:00p
$5 The Venue Scottsdale 7117 E. Third Ave., Scottsdale scottsdalechamber.com
Please confirm, as dates & times are subject to change.
SURPRISE REGIONAL CHAMBER OF COMMERCE Customer Service Institute Mondays, July 9 – July 30 5:30p – 7:00p
Four-week training program for business owners, managers or employees who wish to improve their customer service skills and understanding. Free; open to first 20 registrants Holiday Inn Express 16540 Bullard Ave., Surprise Register online: surpriseregionalchamber.org
COWABUNGA! — Annual Summer FUNdraiser & Networking Event Fri., July 20 5:00p – 9:00p
Includes entertainment and dancing to music by DJ Robert Wilson. $35 prior to July 16; $40 after July 16. Registration required. Westbrook Village Lakes Ballroom 19251 N. Westbrook Pkwy., Peoria Mary Orta, (623) 583-0692
TEMPE CHAMBER OF COMMERCE Tempe Chamber Annual Luncheon Fri., July 13 11:30a – 1:30p
Keynote speaker: Pedro Gomez, reporter for ESPN’s Sports Center show. Members; $50; non-members: $65 Tempe Mission Palms Hotel 60 E. 5th St., Tempe tempechamber.org
Hot Topics & Lunch — The Truth Behind Our Nation’s Founding Thurs., July 19 11:30a – 1:00p
Historians from the Revolutionary War Veterans Association shed light on some common misconceptions about our nation’s founding. Members: $25; non-members: $35 Arizona Historical Society Museum at Papago 1300 N College Ave., Tempe tempechamber.org
WEST VALLEY WOMEN
Business Education Seminar Series
7th Anniversary Luncheon
Free Location to be announced Mary Orta, (623) 583-0692
Wed., July 25 8:30a – 10:00a
Fri., July 10 11:30a – 1:00p
SKYE 16844 Arrowhead Fountain Center Dr., Peoria westvalleywomen.org
WOMEN OF SCOTTSDALE Luncheon
Fri., July 20 11:30a – 1:00p.
$35 The Westin Kierland Resort and Spa 6902 E. Greenway Pkwy., Scottsdale womenofscottsdale.org
OTHER BUSINESS EVENTS Business Professionals Breakfast Thurs., July 12 8:30a – 10:00a
The Microsoft Store 7014 E. Camelback Rd., Scottsdale firstname.lastname@example.org
Phx IT Startups Meeting Wed., July 18 6:30p – 9:00p
The Microsoft Store 7014 E. Camelback Rd., Scottsdale email@example.com
Create a Business Video Thurs., July 19 9:00a – 11:00a
The City of Peoria presents this seminar with Michael Simpson, of SixVine Media, who will teach attendees how to make those popular short videos that help promote a business. Free Point of View Room 9875 N. 85th Ave., Peoria Debbie Pearson, (623) 773-5210
Thurs., July 19 5:30p – 6:30p
The Microsoft Store 7014 E. Camelback Rd., Scottsdale firstname.lastname@example.org
Women in Business Breakfast Social Tues., July 31 8:30a – 10:00a
The Microsoft Store 7014 E. Camelback Rd., Scottsdale email@example.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. Email the information to: firstname.lastname@example.org.
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A Path to Follow
Creating a Corporate Dynasty Three leadership styles needed at the top (and the followers needed to support that system) by Jack Stark, Ph.D.
Winning businesses follow the championship formula: People + Personality + Process + Purpose = Dynasty. People, naturally, are the first element needed to be in place in order to build a business with sustainable success. It is the people at the top — plus their personality traits along with processes and their purpose in life — who provide a more complete answer to identifying companies and teams that are successful over time and reaching dynasty status. The championship formula model identifies three core leadership staff and a group of followers: a thinker (idea person), a promoter (marketer and communicator), a coordinator (day-to-day manager) and a corps of actionoriented staff (support staff). Thinker. This is the brains behind a team who comes up with cutting-edge innovation that propels and maintains the group’s success — Steve Jobs with Apple or Tex Winter and the Triangle Offense with the Bulls and Lakers. They are brilliant people who can conceptualize and apply their vision with incredibly successful outcomes. In the corporate world, professional sports and collegiate sports, the thinker is typically embedded in the roles of board chairman, star player, and chancellor or president, respectively. Promoter. This is the person who promotes, sells or markets the team or company and the person the public most readily associates with it: Jack Welch, GE; Warren Buffett, Berkshire Hathaway; Payton Manning, the Colts; or Jeff
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Gordon and Dale Earnhardt Jr., NASCAR. In the corporate world, professional sports and collegiate sports, the coordinator is typically represented by the CEO, general manager or owner, and athletic director, respectfully. Coordinator. This is the day-to-day coordinator who is responsible for running an organization. This is often the COO or the general manager of a team such as the brilliant GM of the Colts, Bill Polian. Most often, the qualities of a coordinator are embedded in the role of a COO in the corporate setting, and head coach in professional and college sports. Action-Oriented Staff. These are the key chief executive officers, board members, division heads, assistant coaches or administrative staffers who carry out daily functions that ensure the ongoing success of the organization. Influencer. Of the three types of leader, there is always an influencer. This is a person who has a major impact on the life of the key leader of a team — the person most identified as a primary leader. The influencer impacts the culture, thinking and behavior of the leader, whether he or she is in the role of thinker, promoter or coordinator. Influencers are mentors who may be a parent, coach, teacher or boss — anyone who helped shape the head coach or CEO. It is important to note that these roles are not always locked in for all time. As brilliant thinkers build a large talent base at the top,
they can switch to promoting the organization — and become the face that people identify with as representing the organization. For example, Warren Buffett was able to move into the promoter role, with Charlie Monger and, previously, David Sokol helping with the thinker duties. That said, there needs to be great flexibility in this shifting, with contributions clearly spelled out for long-term success. All three leadership styles are needed at the top in an organization. Perhaps this is why so many leaders now fail or last at the top for only three to five years — they don’t surround themselves with the other styles. We are in a period when we have an abundance of charismatic leaders who lack deeper substance and bounce from one rousing speech to the next. They are a mile wide and an inch deep. It can catch up to this type of leader during the first crisis. Studying the people who mentored and shaped a leader will teach a great deal about the essence of a championship leader. The Championship Formula championshipformula.com
Jack Stark, Ph.D., author of The Championship Formula, maintains a practice as a licensed clinical psychologist and provides psychological and performance enhancement training to elite athletes at the collegiate, professional and Olympic levels. He is the founder and director of Performance Enhancement Group, regularly consults to Fortune 500 executives and has made more than 1,000 presentations on leadership and teamwork.
“We must view education as an investment, not an expense.” SHELLEY ESQUE Vice President, Intel
The education we provide for Arizona’s children will determine the kind of future we all enjoy. Arizona employers need a highly skilled, talented workforce to diversify our economy, increase job opportunities and stay competitive.That requires a stronger education system that begins at birth and continues through career. By investing time, talent and money to improve education today, we better position Arizona for long-term success. In the end, we all benefit. Education is everyone’s business. Make it your priority. Visit ExpectMoreArizona.org.
series on leveraging social media
Social Strategizing with LinkedIn
Focused on business professionals, the site also facilitates more than networking by Josh Dolin LinkedIn was founded by Reid Hoffman in 2002 as a businessoriented social network. It differs from Twitter and Facebook because its primary use is professional networking, job searching and recruiting. Executives from all Fortune 500 companies are LinkedIn members, and more than 2 million companies have developed LinkedIn Company Pages. With more than 150 million users in more than 200 countries and territories, LinkedIn is the 36th most-visited website worldwide. The management team consists of experienced executives from PayPal, Google, Microsoft, Yahoo!, Electronic Arts and TiVo. The largest growing demographic of new LinkedIn members is students and recent college graduates. As a result, LinkedIn is an excellent way for companies to manage human resources, including advertising open positions, hiring and training. While companies can choose from a variety of services, most of them require a fee-based subscription. For large companies, corporate recruiting solutions have excellent ROI. Small and mid-sized companies may want to select specific solutions rather than subscribing to comprehensive recruiting packages. LinkedIn allows candidates to conduct basic searches for job postings free of charge, but charges a fee for other premium job search and placement services. LinkedIn also boasts its own mail client, InMail,
Social Media – the Education Series q The Social Media Advantage q The Marketing Bonanza of Facebook and Twitter q Social Strategizing with LinkedIn To reference published segments, please access the archived “Education” articles on the In Business Magazine website, www.inbusinessmag.com.
that allows companies and job seekers to send secure correspondence regarding available positions. Just as individuals use LinkedIn to search for jobs, businesses can use it to navigate and test new market strategies on the global market. In fact, 60 percent of LinkedIn members are located outside the United States. Businesses can successfully tap into these resources by asking and answering questions on LinkedIn, getting involved in trade-related discussions and joining global economic groups. What does the future hold for LinkedIn? Even as large job boards become too saturated with information to be useful, expect LinkedIn to continue to be used primarily for supporting job searches, career changes and recruiting. LinkedIn will also continue to focus on mobile application development — nearly 15 percent of its users access the application on mobile devices. One area where LinkedIn sees room for further development is social networking. In February 2012, LinkedIn publicly announced that it acquired a start-up social network company called Rapportive. One of Rapportive’s successes is a browser plug-in that acquires contact information from users on Facebook and Twitter, and places them into Google’s Gmail. LinkedIn has not yet announced how it will leverage Rapportive’s technology. Other websites have also started to network with LinkedIn, leading the site in perhaps unlikely directions: In January 2012, a dating site called Hitch.me was launched for LinkedIn professionals. Tempo Creative tempocreative.com
Josh Dolin, founder of Scottsdale-based Tempo Creative and author of The Web Guru Guide, has provided expertise to entrepreneurs and business executives across the United States for more than a decade. The digital marketing firm has helped more than 500 companies of all sizes achieve greater success through effective marketing.
Untapped and Underutilized LinkedIn added an overwhelming number of features in 2011. Take a closer look at some features of LinkedIn that companies are still not fully utilizing:
■■ LinkedIn Today
This daily newsletter allows the user’s professional network to receive the latest customized industry information and share articles. It works by aggregating news from various sources and connections, and displays it in a visually appealing format. For example, each time a user shares an article, it receives a vote. If the person who voted is associated with that particular industry, the article receives an additional boost in popularity.
■■ Statistics Dashboard for Groups
The statistics dashboard allows users to drill down into the demographics, growth and
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activity of other users with a simple-to-read graphic display. Rather than spending valuable time compiling marketing data, companies can consult the statistics dashboard to quickly analyze comments and discussions, and even track career changes of group members. Businesses should be sure to use the dashboard to make decisions regarding only well-established or relevant group members.
■■ Polls for Groups
With more than one million established groups, LinkedIn added a polling application in late 2011. The polling feature allows page administrators to measure sentiment about
a new direction before a company makes a commitment. But businesses should beware of some users, who may join a group and subsequently use the polling feature to spam other users with unwanted advertisements.
■■ Events and Event Manager
In 2001, Events Manager was updated to help members find pertinent events rapidly and effectively. A feature has been added to list local events specific to a member’s industry. In addition, once members indicate that they plan on attending an event, the event manager makes recommendations on attendees the member may want to meet.
by Mike Hunter
We Value What We Own
2013 Ferrari California
Taking Time to Recharge Building business is the name of the game, but, as in any competition, it is important to stay fit and recharge for peak performance. So get away to relax and enjoy, whether in town or at a travel destination. Here are some summer packages that are available last minute:
Local Luxury — Scottsdale The Four Seasons Resort Scottsdale at Troon North is an exclusive getaway designed to pamper the executive couple or the entire family. Get low summer rates and a $100 resort credit with a two-night stay. Enjoy spa treatments, or a culinary experience at Crescent Moon. fourseasons.com/scottsdale
On-the-town Urban — San Francisco The Fairmont Heritage Place is the residential-style hotel overlooking the bay in Ghirardelli Square. Luxury 1-, 2- and 3-bedroom apartments await guests who want to be city-center near Fisherman’s Wharf and have access to great restaurants, sites and shopping. Packages include in-room dinners, chauffeured house car service and tickets to top events. fairmont.com/ghirardelli
Bungalow Style — The Bahamas The One&Only Ocean Club in the Bahamas is the summer getaway that will guarantee comfort, luxury, relaxation and even a tan. Celebrating 50 years, this exclusive hideaway is offering great summer deals that are still available. oceanclub.oneandonlyresorts.com
Photos: One&Only Ocean Club (left), Ferrari (right)
Getting Fit for Summer
Leave it to the new “commercialminded” Ferrari to further incorporate the California lifestyle into the namesake 2013 Ferrari California. Weighing less and reconfigured to maximize its muscle, this folding-hardtop sports coupe is living up to the hardcore Ferrari enthusiast’s expectations with better handling and more power. Meant to be the “every driver’s Ferrari,” the California entered the market just three years ago and has boosted the exclusive car maker into a bit more of a mainstream choice. More than 20 percent of the car’s owners use their California on a daily basis. The re-mapped engine and new exhaust manifolds make the V8 direct-fuel-injected engine 30 horsepower faster with a maximum of 490 hp and 372 lb-ft of torque. Satisfying the complaints of a very few who felt this model should be faster, the California has also slimmed down. With cutting-edge aluminum fabrication techniques and reengineered construction technologies by the Scaglietti Centre of Excellence on its chassis, the 2013 California weighs 30 kg less and maintains the structural rigidity and performance. With a retracting, storable hard-top and a trunk with some “real” space for storage (even when the top is tucked away), it is no wonder the California is quickly becoming a practical
California choice for those never having thought City MPG . . . . . . . . . . . 13 Hwy MPG. . . . . . . . . . . 19 a Ferrari was right 0-60 MPH. . . . . 3.8 sec for them or their Transmission lifestyle. Inspired by 7-speed automatic the 1957 California MSRP. . . . . . . $201,290 250, some of the styling incorporated includes the air intake on the bonnet and the side air vents. For the first time, the back seat bench folds down to expose the trunk space, allowing for a set of golf clubs, skis, a snowboard or even two suitcases for that quick trip out of town or a pick-up of a friend from the airport. Smooth, curved lines that speak to the classic Ferrari elegance and styling are well incorporated and unchanged from last year’s model. Refined, sporty interiors will impress with the expected attention to quality and design described as “couture.” A touch-screen display is centrally located for ease of use of controls while handling this powerful machine and is complete with technology and options that cater to the needs of the high-life clientele known by Ferrari. Ferrari ferrari.com
One&Only Ocean Club
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by Mike Hunter
Meals that matter
T.G.I.F.: Friday Afternoon Getaways It’s been a long week, and working hard has paid off, so why not celebrate in style with friends and colleagues? Here is a listing of some of the Valley’s great Friday (late) afternoon hot spots:
Cork — Chandler Wines, beers and specialty drinks (and great food) are what come to mind when heading to Cork. On its Euro-style patio, which is cool and generally packed with people, try a Champagne happyhour-priced creation or a chilled white wine. 4991 S. Alma School Road, Chandler (480) 883-3773 • corkrestaurant.net
Tommy Bahama — Scottsdale
Windsor — Phoenix Crowded and worth it, Windsor is a hip hot spot on North Central Avenue where one is likely to see a state legislator, a local artist or a barfly. This English pub-like joint is fun and eventful. 5223 N. Central Avenue, Phoenix (602) 279-1111 • windsoraz.com Tommy Bahama
Mediterranean Hideaway: Make it T. Cook’s for Lunch
Nestled within the exclusive Royal Palms Resort, T. Cook’s shares a rich history of culinary delight in Phoenix. It is known for its Mediterranean-inspired cuisine, and most think of T. Cook’s as a romantic getaway for dinner and drinks. For lunch, this hideaway offers awardwinning seasonal creations made with skill and a dedication to authentic ingredients. Dishes range from garden-inspired salads from Mediterranean regions that include exotic dressings to signature dishes like the seared Moroccan Tuna Salad or house-made pizzas. Tempting the taste buds with enormous flavors of this region are well-known offerings like the delicate Lobster and Fennel Bisque, the Insalata Caprese salad made with vine-ripened tomatoes and house-made mozzarella or a three-part combo that combines halfportioned choices from the menu.
With a culinary expertise that is known world-wide, the lunch experience at T. Cook’s provides more than just well-crafted dishes made to perfection. The location and ambience take diners away to a Tuscan-like villa countryside atmosphere with service and attention that is so reminiscent of a grand European resort that the feeling of having truly gotten away from the hustle and bustle of the everyday is realized. Because of the exclusivity and attention to detail, lunch at T. Cook’s is reserved for those important client conversations, meetings with an international trade partner or respite. The restaurant is located at the back of the property, where an amble from the valet parking through the private gardens at this boutique resort sets guests up for a tranquil experience not to be forgotten.
T. Cook’s • 5200 E. Camelback Road, Phoenix • (602) 808-0766 • royalpalmshotel.com
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Photos: T. Cook’s (top); Tommy Bahama (bottom)
The Island Time Happy Hour (3-6 p.m. daily) is not to be missed. This adventurous, casual, luxury retail store at Kierland Commons is home to a two-story bar and patio that will whisk away the pressures of the office and start the weekend off right. With its signature tropical drinks, this is where rum will be the ingredient of the day. 15205 N. Kierland Blvd., Scottsdale (480) 505-3668 • tommybahama.com
The Guide to Starting or Bettering Your Business
Accounting & Tax Services • Alternative Funding • Business Banking / SBA Lending • Business Marketing Services • Business Organizations & Associations • Business Services • Commercial Real Estate • Employee Benefits / Insurance • Healthcare Insurance • Human Resources / Hiring • Information Technology • Law Firms • Office Furniture • Payroll Services • Telecommunications / Mobile
Small Business Resources
Serving Arizona Small Business
Robert Blaney has served as the district director of the U.S. Small Business Administration for the State of Arizona since 1998. His varied experience includes work as a federal agent, police officer, vicepresident of an insurance brokerage and administrative assistant to the late Congressman Jack Kemp. He is a native of western New York and a graduate of the State University College of New York at Buffalo.
For many, the biggest challenge to the growth of their small business in Arizona is finding what assistance is available in or around their community. This month’s edition of In Business Magazine examines what individual municipalities in the Phoenix metropolitan area offer in the way of programs, services and incentives for small business. This edition is intended as an easy reference to the best available services to help you start, grow or expand your small business. In most communities, these services are dedicated to building small business and assisting to “level the playing field” for entrepreneurs who face unique obstacles in the world of business. Proper management and technical assistance from these excellent resources across and throughout the Valley can provide a strong basis in helping you to manage your business operations. Most smallbusiness owners are skilled in one area or particular discipline, which is often the reason they started their business. Examining your core skills, evaluating and understanding where you need additional information or assistance can help you better succeed. Facing tough questions in tough times doesn’t have to be as difficult as it seems. Some of the most common issues that we, working with the Arizona Small Business Development Center Network or the SCORE Association, have helped businesses with are examining their business model, evaluating their business plan and knowing where to go for the help that they need. Another interesting fact: Much of the small-businessoriented help across our community is free. Take advantage of if to help ensure better success.
Robert Blaney District Director • U.S. Small Business Administration, Arizona District
Small Business Is the Power of Arizona
Rick Murray has a wide and varied background that includes entrepreneurial endeavors and nonprofit association executive experience. Murray has seen tremendous success by using the same formula he has always used: developing relationships with businesses for mutual success and surrounding himself with a team of people who believe in a common goal. Murray is also well-versed in HIPAA compliance issues and healthcarerelated businesses.
A Kauffman Foundation study released in May says that, overall in 2011, there was a downward dip in new business start-ups nationwide. But the study points to five states with the highest entrepreneurial activity rate — and Arizona’s is highest. If there is one thing good that has come out of the economic downturn it is that there are more small businesses per capita in Arizona than ever before. In fact, 97 percent of Arizona’s economy is generated through small business. Arizona is leading the country out of the recession, thanks to Arizona small businesses. While sales and income are gradually increasing in small businesses in general, there is still a significant amount of work to be done to convince the buying public it’s safe to come out now. Some have referred to the Great Recession as a buyer’s revolution. No longer are the days when consumers are going to accept the status quo. Consumers are becoming much more educated and much more wary about parting with their money. The market correction also gave birth to a buying correction. America has a “re-born” consumer who is more like our grandparents who went through the Great Depression, when stashing money in a mattress was preferable to investing. People are holding onto their vehicles longer before replacing them, remodeling their home instead of “going bigger,” and fixing broken and worn-out appliances rather than replacing them. We have consumers who want us to prove it is worthwhile for them to spend their money. This is where small business makes the difference, connecting at the neighbor level to restore the confidence that will power the economy. Recognizing the critical role small business plays as an economic engine of our community, In Business Magazine is to be commended for assembling in this guide the critical services that small businesses, in turn, rely on.
About this Guide
Rick Murray CEO • Arizona Small Business Association
The In Business Magazine editorial staff has compiled a list of trusted business services that we strongly recommend to our business readers. Each business is dedicated to serving local small businesses and is a partner in building our business community.
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Small Business Resources Accounting & Tax Services CBIZ and Mayer Hoffman McCann, P.C. CBIZ provides accounting, tax and business valuation and consulting services to real estate, wholesale, not-for-profit, retail and manufacturing entrepreneurial business in the Phoenix marketplace. Top Executive: Carlos Wagner Local Headquarters: 3101 N. Central Ave., Ste. 300, Phoenix, AZ 85012 Offices (Local / National): 1 / 186 Phone: (602) 277-2371 Website: www.cbiz.com
Henry & Horne, L.L.P. Henry & Horne is Arizona’s largest locally owned accounting firm with a broad base of services to meet clients’ needs. The firm includes estate specialists, international tax experts and a multitude of experts with other areas of expertise. Top Executive: Chuck Goodmiller Local Headquarters: 2055 E. Warner Rd., Ste. 101, Tempe, AZ 85284 Offices (Local / National): 2 / 3 Phone: (480) 839-4900 Website: www.hhcpa.com
NUMBERSetc NUMBERSetc accounting and finance professionals bring an in-depth level of functional and industry experience in all areas of finance and accounting with real world experience. NUMBERSetc has been helping companies of all sizes, from start-ups to Fortune 500 companies. Top Executive: Pamela Smith Local Headquarters: 2152 S. Vineyard Ave., Ste. 120, Mesa, AZ 85210 Offices (Local): 1 Phone: (480) 821-1897 Website: www.numbersetc.biz
Alternative Funding Altima Business Solutions Altima provides assistance in raising capital through its affiliations and network of influence in angel/venture, private equity, hedge funds, factoring, equipment leasing and merchant funding. Top Executive: Andre Wilson Local Headquarters: 1820 E. Ray Rd., Chandler, AZ 85225 Offices (Local): 1 Phone: (602) 773-1488 Website: altimabusinesssolutions.com
FSW Funding FSW Funding is a privately owned and operated assetbased lending company specializing in the financing needs of small and medium-sized businesses. Top Executive: Robyn Barrett Local Headquarters: 4530 E. Shea Blvd., Ste. 142, Phoenix, AZ 85028 Offices (Local): 1 Phone: (602) 535-5984 Website: www.factors-southwest.com
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Performance Funding Group PFG offers flexible financial solutions that can help smaller businesses expand, improving cash flow for small to medium-sized businesses and providing them an advantage in today’s competitive market at a time when there are so many challenges to obtaining more traditional bank financing. Top Executive: Lou Wallace Local Headquarters: 11022 N. 28th Dr., Ste. 160, Phoenix, AZ 85029 Offices (Local): 1 Phone: (602) 912-0200 Website: www.performancefunding.com
Business Banking / SBA Lending Alliance Bank of Arizona Alliance Bank of Arizona is a “super community” bank, delivering a broader product array and larger credit capacity than a traditional community bank. Their focus is relationship-based, personalized service, with the latest in technology and lending capabilities to meet the needs of virtually any Arizona business. Top Executive: James H. Lundy Local Headquarters: 1 E. Washington St., Phoenix, AZ 85004 Offices (Local / National): 9 / 17 Phone: (602) 629-1776 Website: www.alliancebankofarizona.com
BMO Harris Bank N. A. BMO Harris Bank offers business banking products and services for small and medium-sized businesses: checking and savings accounts, loans and lines of credit, online banking, treasury management and more. Top Executive: Stephen Johnson Local Headquarters: 1 E. Camelback Rd., Phoenix, AZ 85012 Offices (Local / National): 33 / 300+ Phone: (602) 241-6500 Website: www.mibank.com
National Bank of Arizona National Bank of Arizona provides local expertise and focuses on delivering award-winning service. It is more than just a business bank; it’s expanded to a full-service financial institution offering a suite of products and services tailored to business. Top Executive: Keith Maio Local Headquarters: 6001 N. 24th St., Phoenix, AZ 85016 Offices (Local / National): 24 / 75 Phone: (602) 235-6000 Website: www.nbarizona.com
Wells Fargo & Company Wells Fargo & Company is a diversified financial services company that provides banking, insurance, investments, mortgage, and consumer and commercial finance. For the sixth consecutive year, it is the number one Small Business Administration 7(a) lender in Arizona in amount of dollars loaned. Top Executive: Pamela Conboy Local Headquarters: 100 W. Washington St., Phoenix, AZ 85004
Offices (Local / National): 167 / 6782 Phone: (602) 378-4644 Website: www.wellsfargo.com
West Valley National Bank West Valley National Bank is the West Valley’s first locally owned and operated community bank and recently expanded to Scottsdale. Founded by local business leaders, the bank is dedicated to looking after business owners and their financial needs. Top Executive: Candace D. Wiest Local Headquarters: 12725 W. Indian School Rd., Avondale, AZ 85392 Offices (Local): 3 Phone: (623) 536-9862 Website: www.wvnb.net
Business Marketing Services Infusionsoft Infusionsoft provides small-business solutions built exclusively to help conquer the chaos through a Web-based system that combines intelligent automation with powerful CRM, e-mail marketing, e-commerce and social media tools. Top Executive: Clate Mask Local Headquarters: 2065 W. Obispo Ave., Ste. 103, Gilbert, AZ 85233 Offices (Local): 1 Phone: (480) 807-0644 Website: www.infusionsoft.com
Fasturtle Fasturtle is a Web design firm that specializes in SEO marketing, website design, e-mail marketing and maximizing social media opportunities for companies of all sizes. It focuses on providing detailed planning and technological expertise to small business. Top Executive: Eric Olsen Local Headquarters: 7575 E. Redfield Rd., Ste. 213, Scottsdale, AZ 85260 Offices (Local): 1 Phone: (480) 348-0467 Website: www.fasturtle.com
Terralever Terralever was founded with the goal of providing innovative digital marketing solutions that bring about quantifiable results. It brings insight and expertise to every project to help brands evolve with the changing online ecosystem. Top Executive: Chris Johnson Local Headquarters: 425 S. Mill Ave., Ste. 201, Tempe, AZ 85281 Offices (Local / National): 1 / 2 Phone: (480) 839-1080 Website: www.terralever.com
Business Organizations & Associations Arizona Small Business Association ASBA is the largest trade association in Arizona, representing 11,000+ member businesses and more
than half a million employees in all 15 counties. ASBA creates opportunities for Arizona small businesses to make money, save money and achieve results. Top Executive: Rick Murray Local Headquarters: 4600 E. Washington St., Ste. 340, Phoenix, AZ 85034 Offices (Local): 2 Phone: (602) 306-4000 Website: www.asba.com
Local First Arizona Local First Arizona is a nonprofit organization working to strengthen communities and local economies through supporting, maintaining and celebrating locally owned businesses throughout the State of Arizona. Top Executive: Kimber Lanning Local Headquarters: 12 W. Camelback Rd., Phoenix, AZ 85013 Offices (Local): 1 Phone: (602) 956-0909 Website: www.localfirstaz.com
SCORE SCORE is a nonprofit association dedicated to educating entrepreneurs and helping small businesses start, grow and succeed nationwide. SCORE is a resource partner with the U.S. Small Business Administration and has been mentoring small-business owners for more than forty years. Top Executive: Chet Ross Local Headquarters: 2828 N. Central Ave., Ste. 800, Phoenix, AZ 85004 Offices (Local / National): 3 / 347 Phone: (602) 745-7250 Website: www.scorearizona.org
Looking for a way to fund business growth? Fortunately for you, not all lenders are the same.
“We consider FSW Funding a partner in our business.” —Cliff, founder of software development company, Arizona & Mexico
FSW Funding promises:
1-800 Got Junk? 1-800-GOT-JUNK? offers full-service junk removal for home or business, and will work with offices, retail locations, constructions sites and more. Local Headquarters: 1939 E. Primrose Path, Phoenix, AZ 85086 Offices (Local / National): 1 / 119 Phone: 800-Got-Junk Website: 1800gotjunk.com
• Fast funding for working capital • Flexible and innovative lines of credit • NO termination fees, contracts, or minimum volume requirements
DataPreserve, Inc. DataPreserve provides proven scalable data protection platforms for business continuity, using its enterpriselevel software, hardware and SAS-70 data center operations to protect business data whether it is on a single computer or part of a multi-office global enterprise operations network. Top Executive: Charles Bowen Local Headquarters: 15300 N. 90th St., Ste. 550, Scottsdale, AZ 85260 Offices (Local): 1 Phone: (480) 422-1600 Website: www.datapreserve.com
Express Digital Express Digital is a leader in data capture, document management and scanning systems,
Contact us today to learn more about our factor financing services
602-535-5984 4530 E. Shea Blvd, Ste. 142, Phoenix, AZ 85028
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Small Business Resources specializing in integrating with existing software and services of businesses. Top Executive: John Longobardo / John Principale Local Headquarters: 8585 E. Bell Rd., Ste. 103, Scottsdale, AZ 85260 Offices (Local): 1 Phone: (602) 569-8600 Website: www.edsaz.com
Maricopa County Attorney’s Office — Check Enforcement The Maricopa County Attorney’s Office established the Check Enforcement Program to assist victims. The primary responsibility of the program is to recover restitution for victims. Top Executive: Bill Montgomery Local Headquarters: 301 W. Jefferson St., Phoenix, AZ 85003 Offices (Local): 1 Phone: (602) 372-7300 Website: www.maricopacountyattorney.org
Reliable Background Screening Reliable Background Screening has been providing clients a unique and thorough screening service for employers, business owners, franchisers and landlords by offering background checks on new employees, franchisee applicants and new residents and tenants. Top Executive: Rudy Troisi
Local Headquarters: 8149 E. Evans Rd., Ste. C-9, Scottsdale, AZ 85260 Offices (Local): 1 Phone: (602) 870-7711 Website: www.reliablebackgroundscreening.com
Stoney-Wilson Business Consulting, L.L.C. Julie Stoney and Bob Wilson bring more that 60 years of business experience to the table. Their background in banking, finance and communications provides the foundation for advising businesses in need of banking and credit, cash management, strategic planning and sales management services. Top Executive: Julie Stoney / Bob Wilson Local Headquarters: 6501 E. Greenway Pkwy., Ste. 103583, Scottsdale, AZ 85254 Offices (Local): 1 Phone: (602) 370-1776 Website: www.stoneywilson.com
Commercial Real Estate Cassidy Turley BRE Commercial Cassidy Turley BRE Commercial is a full-service commercial real estate firm serving metropolitan Phoenix and secondary Arizona cities. A leader in the Phoenix market since 2003, it offers brokerage investment and advisory services in office, industrial, retail, multihousing and land as well as property management.
Top Executive: Bryon Carney Local Headquarters: 2375 E. Camelback Rd., Ste. 300, Phoenix, AZ 85016 Offices (Local / National): 1 / 60 Phone: (602) 954-9000 Website: www.brephoenix.com
CBRE, Inc. CBRE offers strategic advice and execution for property sales and leasing, corporate services, property, facilities and project management, mortgage banking, appraisal and valuation, development services, investment management, and research and consulting. Top Executive: Craig Henig Local Headquarters: 2514 E. Camelback Rd., Phoenix, AZ 85016 Offices (Local / National): 1 / 166 Phone: (602) 735-5555 Website: www.cbre.com/phoenix
GPE Companies GPE Commercial Advisors and GPE Management Services are leading providers of commercial real estate sales, leasing, property management and consulting solutions for business, office, medical, dental, retail and industrial properties in the Greater Phoenix metropolitan area. Top Executive: David Genovese Local Headquarters: 2777 E. Camelback Rd., Ste. 230, Phoenix, AZ 85016
Tired of Shuffling through Paperwork? Express Digital Solutions is Arizona’s leading provider of Electronic Document Management and Scanning Solutions. We provide a single source “one stop shop” service.
Find all your ﬁles instantly, eﬀortlessly — No more searching for missing documents Signiﬁcantly improve oﬃce productivity saving time and $$$ Save $$$ on document storage both On- AND Oﬀ-site Total Compliance with all regulations and laws—Disaster Recovery plan included An Experienced Award-Winning Local Company Providing Exceptional On-Site Service Fully HIPAA compliant Discount Document Scanning Service also available Finally… A Paperless Solution Everyone Can Afford!
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www.edsaz.com EXPRESS DIGITAL SOLUTIONS
Offices (Local): 1 Phone: 480-994-8255 Website: www.gpe1.com
Employee Benefits / Insurance Focus Benefits Group Focus Benefits Group is an independent group employee benefits consulting company that offers a variety of services to help clients receive the greatest amount of benefit coverage for the most cost-effective dollar. It helps clients by looking at ways to reduce healthcare costs, improving the overall benefits they can offer employees. Top Executive: Bill Weaver Local Headquarters: 4120 N. 20th St., Ste. B, Phoenix, AZ 85016 Offices (Local): 1 Phone: (602) 381-9900 Website: www.focusbenefits.com
Holmes Murphy & Associates Holmes Murphy is a premier independent riskmanagement and insurance brokerage firm. While today’s insurance market sees consolidations and mergers resulting in conglomerates more concerned about the bottom line, Holmes Murphy remains focused on clients’ needs and is committed to accelerating business success. Top Executive: Daniel Keough
Local Headquarters: 14850 N. Scottsdale Rd., Ste. 280, Scottsdale, AZ 85254 Offices (Local / National): 1 / 11 Phone: (480) 951-1776 Website: www.holmesmurphy.com
H. A. Mackey & Associates H. A. Mackey helps employers offer the most competitive and cost-effective benefit programs to retain and recruit valuable employees. Areas of expertise include medical, life, dental, vision, disability and long-term care. Personalized services and carefree relationship are just some of the benefits employers can rely upon. Top Executive: Henry A. Mackey Local Headquarters: 5114 N. 33rd St., Phoenix, AZ 85018 Offices (Local): 1 Phone: (602) 595-4476 Website: www.hamackey.com
Healthcare Insurance Blue Cross Blue Shield of Arizona BCBSAZ offers various health plans for individuals, families and small and large businesses. BCBSAZ also offers Medicare supplement plans to individuals over age 65. Top Executive: Rich Boals Local Headquarters: 8220 N. 23rd Ave., Bldg 2, Phoenix, AZ 85021
Offices (Local): n/a Phone: (602) 864-4899 Website: www.azblue.com
Delta Dental of Arizona Delta Dental is passionate about oral health and its importance to generations of families. It works to improve oral health by emphasizing preventive care and making dental coverage accessible to a wide variety of employers, groups and individuals. Top Executive: Allan Allford Local Headquarters: 5656 W. Talavi Blvd., Glendale, AZ 85306 Offices (Local): n/a Phone: (602) 938-3131 Website: www.deltadental.com
United Healthcare of Arizona United Healthcare provides a full spectrum of consumer-oriented health benefit plans and services to individuals, public sector employers and businesses of all sizes, including more than half of the Fortune 100 companies. Top Executive: Jeri Jones Local Headquarters: 1 E. Washington St., Ste. 1700, Phoenix, AZ 85004 Offices (Local): n/a Phone: (800) 985-2356 Website: www.uhc.com
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Small Business Resources Human Resources / Hiring DHR International, Inc. DHR is the fifth-largest retained executive search firm in the United States. DHR conducts search assignments at the levels of board director, C-suite and functional vice president. Its consultants are experienced professionals who are retained by Fortune 1000 as well as prominent venture firms and early-stage companies. Top Executive: David Bruno Local Headquarters: 11811 N. Tatum Blvd., Ste. 3076, Phoenix, AZ 85028 Offices (Local / National): 1 / 51 Phone: (602) 992-7810 Website: dhrinternational.com
HR Choice For nearly 30 years, HR Choice has been providing professional human resource programs, training and services to small and medium-sized businesses. It offers outsourced employer solutions and work collaboratively with its clients to support their tactical and strategic human resource management needs. Top Executive: Susan Williams Local Headquarters: 14175 W. Indian School Rd., Ste. B4, Goodyear, AZ 85395 Offices (Local / National): 1 / 2 Phone: (623) 935-7759 Website: www.hrchoice.com
Maricopa Workforce Connections Maricopa Workforce Connections collaborates with state and community partners to continually identify and develop local talent to meet the needs of local businesses. Services include employee recruitment and training to fill job vacancies by a diverse and broad range of qualified workers at no charge to business owners. Top Executive: Patrick Burkhart Local Headquarters: 234 N. Central Ave., 3rd Floor, Phoenix, AZ 85004 Offices (Local): 3 Phone: (602) 506-4888 Website: www.maricopaworkforceconnection.com
Information Technology BestIT Corp. BestIT’s services include a complete catalog of technology support services, comprehensive professional practices, innovative security solutions and cost-effective business strategies, resulting in maximized uptime, predictable IT budgets and quick response times. BestIT provides robust, leading-edge IT business and technology solutions. Top Executive: Harry Curtin Local Headquarters: 3724 N. 3rd St., Phoenix, AZ 85012 Offices (Local / National): 1 / 2 Phone: (602) 772-3556 Website: www.bestit.com
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CMIT Solutions CMIT Solutions offers a broad menu of technical support and IT services that all point toward one goal: helping small businesses run smoothly and be prepared for anything. Top Executive: Bruce Newman Local Headquarters: 14988 N. 78th Way, Scottsdale, AZ 85260 Offices (Local / National): 1 / 135 Phone: (480) 419-3931 Website: www.cmitsolutions.com/ phoenix-northeast-valley
OneNeck IT Services Corp. OneNeck is a leading hosted application management and managed services provider that offers a broad scope of services at mid-market prices which provide customers with tailored and flexible IT solutions. Top Executive: Charles Vermillion Local Headquarters: 5301 N. Pima Rd., Ste. 100, Scottsdale, AZ 85250 Offices (Local / National): 1 / 11 Phone: (480) 315-3000 Website: www.oneneck.com
Law Firms Donald W. Hudspeth, P.C. The law firm of Donald W. Hudspeth guides the smallbusiness owner through the complicated and often tricky legal problems related to the formation of their small business. The firm provides both practical and legal advice based on a knowledge and experience in business law. Top Executive: Donald Hudspeth Local Headquarters: 3030 N. Central Ave., Ste. 604, Phoenix, AZ 85012 Offices (Local): 1 Phone: (602) 265-7997 Website: www.azbuslaw.com
Polsinelli Shughart, L.L.P. Polsinelli Shughart offers clients the full array of business law services with a local presence and tremendous national and international reach. Top Executive: Ed Novak Local Headquarters: 1 E. Washington St., Ste. 1200, Phoenix, AZ 85004 Offices (Local / National): 1 / 16 Phone: (602) 650-2000 Website: www.polsinelli.com
Ryley Carlock & Applewhite Ryley Carlock & Applewhite provides legal support to clients in real estate, resort and hospitality, gaming, software and information technology, publishing, accounting, architecture, management consulting, engineering and other professional services, construction management, retail sales, Internet, telecommunications and manufacturing. Top Executive: Rodolfo Parga Local Headquarters: 1 N. Central Ave., Ste. 1200, Phoenix, AZ 85004
Offices (Local / National): 1 / 6 Phone: (602) 258-7701 Website: www.rcalaw.com
Office Furniture Copenhagen Imports Copenhagen is focused on helping clients improve productivity by designing for them the perfect work environment, from executive suites to functional home offices. Top Executive: Erik Hansen Local Headquarters: 1701 E. Camelback Rd., Phoenix, AZ 85016 Offices (Local / National): 4 / 3 Phone: (602) 266-8060 Website: www.copenhagenliving.com
Goodmans Interior Structures Goodmans represents millions of quality products from manufactures that include Herman Miller, Geiger, Davis, Nemschoff, Nucraft, Fixtures, Global, Hon, National, La-Z-Boy and more than 400 others. Services include planning through installation. Top Executive: Adam Goodman Local Headquarters: 1400 E. Indian School Rd., Phoenix, AZ 85014 Offices (Local / National): 4 / 1 Phone: (602) 263-1110 Website: www.goodmansinc.com
Target Commercial Interiors Creating capable spaces for the workplaces in all fields, Target Commercial Interiors services include shopping for products, financing, project management, planning and installation. Ongoing services are asset management, warehousing and more. Top Executive: Steve Thomas Local Headquarters: 8530 S. Priest Dr., Phoenix, AZ 85284 Offices (Local / National): 1 / 6 Phone: (480) 533-8326 Website: www.targetcommercialinteriors.com
Payroll Services Human Capital Strategies A partner to small business, Human Capital Strategies is a comprehensive firm that is all about driving business profits through their services, which include payroll, human resources, employee benefits and risk management. Top Executive: Jason Knight Local Headquarters: 2152 S. Vineyard Ave., Bldg. 6, Ste. 117, Mesa, AZ 85210 Offices (Local): 1 Phone: (480) 962-1580 Website: www.hcscando.com
Paychex, Inc. Paychex is a recognized leader in the payroll, human resource and benefits outsourcing industry. Top Executive: n/a
Isn’t it time to lay your fears to rest… Local Headquarters: 16404 N. Black Canyon Hwy., Ste. 240, Phoenix, AZ 85053 Offices (Local / National): 1 / 101 Phone: (602) 266-3660 Website: www.paychex.com
Pay-Tech Pay-Tech has been family-owned and -operated since 1979, with professionals who are trained and certified to bring clients customized payroll, accounting and HR solutions. Top Executive: Rene Brofft Local Headquarters: 640 E. Purdue, Ste. 102, Phoenix, AZ 85020 Offices (Local): 1 Phone: (602) 788-1317 Website: www.pay-tech.com
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AT&T Small Business AT&T Small Business Services offers a comprehensive portfolio of innovative wireless solutions, from e-mail and messaging to industry-specific business applications. Top Executive: n/a Local Headquarters: 20830 N. Tatum Blvd., Phoenix, AZ 86050 Offices (Local / National): n/a Phone: (480) 515-7000 Website: smallbiz.att.com
Cox Business Cox Business provides voice, data and video services for more than 275,000 small and regional businesses, including healthcare providers; K-12 and higher education; financial institutions; and federal, state and local government organizations. Top Executive: Steve Rizley Local Headquarters: 20401 N 29th Ave., Phoenix, AZ 95027 Offices (Local / National): n/a Phone: (623) 594-1000 Website: www.coxbusinessaz.com
Telesphere Telesphere is the leading pure-play provider of unified cloud communications, delivering carrier-grade performance and support for wireline and mobile devices to businesses over its private IP MPLS network, which is one of the largest of its kind in the nation. Top Executive: Clark Peterson Local Headquarters: 9237 E. Via de Ventura, Scottsdale, AZ 85258 Offices (Local / National): 1 / 4 Phone: (480) 385-7000 Website: www.telesphere.com
For more information on these companies, visit inbusinessmag.com or each individual website through our digital version of this publication.
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Index Index by Name
Francia, Vince, Mayor, 20
Merritt, Ron, 14
Schoaf, Thomas, Mayor 10
Barrett, Bob, Mayor, 20
Friedman, Brian, 20
Mihelich, Jeff, 20
Schwan, David, Mayor, 20
Blaney, Robert, 41
Gary, Lori M., 20
Millikin, John, Ph.D., 50
Smith, James, 20
Branham, Leigh, 27
Geisler, Jill, 27
Mitten, Dee, 30
Smith, Scott, Mayor, 20
Broome, Barry, 10
Henderson, Dan, 20
Murray, Rick, 10, 41
Stanton, Greg, Mayor, 9, 20
Collins, Lisa, 20
Hernandez, John, 14
Parraz, Norma, 50
Stewart, Kelly, 30
Cordwell, Ian, 20
Jabjiniak, Bill, 20
Paxton, Harry, 20
Tibshraeny, Jay, Mayor, 20
Dial, Sara, 12
Lane, Jim, Mayor, 20
Pearson, Debbie, 20
Wolcott, Sharon, Mayor, 20
Dickey, Ginny, Vice Mayor, 20
Losse, Katherine, 27
Perez, Joseph, 14
Eberhardt, Cindi L., 20
Lynch, Ron, 18
Price, Melissa, Vice Mayor, 20
Ellison, Kedrick, 20
Mask, Clate, 14
Romero, John, 14
Peoria Chamber of Commerce, 32
T. Cook’s, 38
Focus Benefits Group, 45
Peoria, City of, 20
Target Commercial Interiors, 46
Fountain Hills, Town of, 20
Performance Funding Group, 42, 47
Four Season Resort
Phoenix, City of, 9, 20
Tempe Chamber of Commerce, 33
Polsinelli Shughart, L.L.P., 46
Tempe, City of, 20
FSW Funding, 42, 43
PRfect Media International, 14
Tempo Creative, 36
Gangplank, 12, 31, 32
PRfect Retail, 14
Tilted Kilt Operating Franchise, LLC, 18
Index by Company 1-800-Got-Junk?, 4, 43 5 Arts Circle, 8 Ahwatukee Foothills Chamber of Commerce, 32 Alliance Bank of Arizona, 2, 42 Alphastripe.com, 12 Altima Business Solutions, 42 Arizona Association for Economic Development, 32 Arizona Office of Employment and Population Statistics, 16 Arizona Small Business Association, 10, 41, 42 Arizona Technology Council, 32 AT&T, 3, 47 BestIT Corp., 46, 51 Bicycle Cellar, The, 14 Blue Cross Blue Shield of Arizona, 40, 45 BMO Harris Bank, 19, 42 Carefree, Town of, 20 Cassidy Turley BRE Commercial, 29, 44 Cave Creek, Town of, 20 CBIZ, 42 CBRE, Inc., 44 Central Phoenix Women, 32 Chandler Chamber of Commerce, 32 Chandler, City of, 20 CMIT Solutions Co+Hoots, 12 Copenhagen Imports, 46 Cork, 38 Cox Business, 7, 47 DataPreserve, Inc., 43 Delta Dental of Arizona, 45 Devour Phoenix, 30 DHR International, Inc., 46 Discovery Triangle Development Corporation, 12 Donald W. Hudspeth, P.C., 46 Double L Ranch, 17 Driver Provider, The, 15 Economic Club of Phoenix, 32 Expect More Arizona, 35 Express Digital, 43, 44 Fairmont Heritage Place, 37
Scottsdale at Troon North, 37
Gilbert, Town of, 20 Glendale Chamber of Commerce, 32
Screening, 15, 44
Tommy Bahama, 38
Ryley Carlock & Applewhite, 46
United Healthcare of Arizona, 45
Goodmans Interior Structures, 46
Salt River Project, 11, 12
Verizon Wireless, 12
Goodyear, City of, 20
W. P. Carey School of Business, 30, 50
GPE Companies, 19, 44
Waste Not, 30
Glendale, City of, 20
Greater Phoenix Chamber of Commerce, 32 Greater Phoenix Economic Council, 10 H. A. Mackey & Associates, 45, 47 Henry & Horne, L.L.P., 42 Heritage Pioneer Corporate Group, 14 Holmes Murphy, 4, 45 HR Choice, 46 Human Capital Strategies, 46 Infusionsoft, 14, 42, 45 LaunchSpot, 12 Lewis and Roca, LLP, 26 Litchfield Park, 10 Literacy Volunteers of Maricopa County, 30 Local First Arizona, 43 Maricopa Association of Governments, 10 Maricopa County Attorney’s Office, 8, 44 Maricopa Workforce
Wells Fargo & Company, 42
Chamber of Commerce, 32 Scottsdale, City of, 20
West Valley National Bank, 42
West Valley Women, 33
Consulting, L.L.C., 44, 48
Windsor, 38 Women of Scottsdale, 33
Surprise Regional Chamber of Commerce, 33 Surprise, City of, 20
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Connections, 13, 46 Mayo Clinic, 52 Mesa, City of, 20 Motorola, Inc., 50 National Association of Women Business Owners, 32 National Bank of Arizona, 5, 42 NNR Multicultural Business Development, 50 North Phoenix Chamber of Commerce, 32 NUMBERSetc, 42, 48 One&Only Ocean Club, 37 OneNeck IT Services Corp., 46 Paychex, Inc., 46 Pay-Tech, 47
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A Candid Forum
Diversity in the Workplace: Fuel for Growth or Disruption? by RaeAnne Marsh
Diversity in the workplace was a hot topic when it was first mandated in the 1960s with the Johnson Administration’s Civil Rights Act. Since then, however, businesses have realized far-reaching benefit from having a culturally diverse work force. “The added value can be measured by reaching new markets, engaging new customer base and consolidating a brand presence in niche markets,” says Norma Parraz, president of NNR Multicultural Business Development. She notes, for instance, there is a high demand for customer service representatives with bilingual backgrounds. “As business sees a demand from a more diverse client base, they act to supply a sales work force that can accommodate the bilingual customer. This may come in both a cultural connection as well as a language preference, again customizing the business experience to fit a new market.” Less visible but also significant, she adds, is diversity in cultural purchasing analysis. According to John Millikin, Ph.D., who just retired as clinical professor with the Management Department at the W. P. Carey School of Business at ASU, studies show that people tend to like to associate with people like themselves. “When people go into a business and see nobody like themselves, it can be a turn-off. That doesn’t mean you have to be Hispanic to market to Hispanics … but a highly diverse work force shows the minority customer that the place is open to them as well.” He points out, however, that specifically hiring someone from a minority in order to market to that minority can be counterproductive. “Like any good idea, it can be taken to extremes.” The issue is not just language; there is a cultural element as well, as Parraz previously noted. As an example, she offers the experience of car dealership on Phoenix’s west side that has a predominantly Hispanic customer base and recently went through a remodel of its physical structure. “Some of the changes came in the new seating arrangement, providing sofas as more comfortable seating for a group of customers.” This in contrast to the typical arrangement of two chairs placed in front of the sales desk. The change was prompted by a cultural awareness, she explains. “With Hispanic families, no matter the purchase, several members of the family would come to the table to decide on the final purchase.” Companies doing business on a global scale generally follow one of two strategies, says Dr. Millikin, who is also a former vice president of human resources at Motorola, Inc. in Phoenix. One is to have their senior management be global in the sense that they have lived abroad and understand different cultures. The other is to develop local, hostcountry professionals. “Motorola would send expats only if they were spreading a particular knowledge, and they would train local people to replace themselves,” he relates. “One of the great advantages of multinational assignments,” Dr. Millikin notes,” is taking people out of their cultural home base and giving tem the experience of growth.” He points out that many companies prefer to have their senior people, as a rite of passage,
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working in a different culture so they have a more multinational viewpoint as they try to lead the company. “In Motorola’s case, more than 50 percent of our sales and operations were outside the U.S. You certainly do not want somebody sitting the corporate headquarter who has a very ethnocentric viewpoint of the world.” Parraz puts a local perspective on the need for management to have cultural sensitivity with an example of a landscape company that relies on a largely Spanish-dominant work force. “Everything from chemical composition to treatment for lawns to directions on getting trucks to the next project site can be easily undermined. Here, the diverse work force needs a management team that understands and can easily bridge the communication.” In some cases, employees may specifically seek out a company because it is multinational. Dr. Millikin describes a situation Motorola faced in its Korean factory when it was trying to adapt to the local culture. “Some employees came to management and asked them to not be so Korean.” These were top-flight people who could have worked for Samsung if they wanted but preferred to work for a multinational, he notes. “These were bright, young people saying, ‘Hey, you’ve got to act like Motorola, not like Samsung.” What’s important is to look at diversity as more than just numbers, says Dr. Millikin, speaking of organizations having multinational or multicultural experience even domestically within the subcultures of the United States. “Just checking off numbers but not gaining the richness of having that diversity, you’re short-changing yourself as a business.” He points out, “There are plenty of case studies that show a multicultural attitude at the top of the house is going to be most successful.” Motorola, Inc. motorola.com NNR Multicultural Business Development nnrmulticultural.com W. P. Carey School of Business at ASU wpcarey.asu.edu
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Because of Mayo Clinic’s collaborative model of care, Raley was able to have diagnostic tests, surgery and rehabilitation in one place with a team that was focused on her recovery. Now, Raley is cancer-free and back in training. For years, people from all walks of life have come to Mayo for answers. Mayo is an in-network provider for millions of people. To schedule an appointment, visit mayoclinic.org/arizona or call 1-800-446-2279.