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MAY 2018

Commercial Real Estate: Spotlight on the Best


Commercial Real Estate

Is the new tax law a benefit to Phoenix investors? Build Strength

through Disagreement

Starting Up in Conscious Capitalism Franchising as Expansion Strategy $4.95 INBUSINESSPHX.COM

THIS ISSUE Alliance of Arizona Nonprofits Global Chamber

Because no two clients are ever the same. TM

Understanding what makes you unique.®




Impacting Commercial Real Estate

John Chang and Ryan Sarbinoff examine the impact of the new tax law on the flow of money within the real estate sector and how that plays out in Metro Phoenix’s business community. Plus: Cross-Border Real Estate Investing examines whether new U.S. tax laws have changed things for Canadians. FEATURE Commercial MAGAZINE

MAY 2018


Real Estate: Spotlight on the Best




Commercial Real Is the new tax

law a benefit


to Phoenix investors? Build Strength

through Disagreeme nt

MAY 2018

Starting Up in Capitalism



Franchising as Strategy



Alliance of Arizona Nonprofits Global Chamber



Get a year of In Business Magazine Subscribe now at



Tips to Grow across Metros and Borders

May 5 Global Career Roundtable 11am in Scottsdale

by Cesar Trabanco, Manager of Business Services at Global Chamber®

May 10 Homerun Networking, D’backs vs. Nationals 6pm in Phoenix

Spotlight Event May 15 NAFTA Update for Your Business 8am in Scottsdale

May 17 8am in Phoenix

Get Your Business Ready for GDPR in Europe

Spotlight Event May 24 5:30pm in Phoenix

Welcome to Phoenix for Global Companies May 30 3:30pm at SkySong in Scottsdale

Global Chamber Phoenix Advisory Board

Inside this Section

2 3  4  5  6  7  8 

Global Trade Is Changing Phoenix Metro

Update Your Business on NAFTA It’s Time to Get Involved with Global Business

American Express Offers Foreign Exchange Selecting a Distributor in a Foreign Country

Spotlight Event: Next Up – ‘Welcome to Phoenix’ 5/24 Connect to Global Career and Consulting Projects

Global Chamber® makes it easier for our members to connect to opportunities across metro areas and borders. In today’s busy world where everyone is running a mile a minute, you need something to stand out from the crowd to get noticed: an amazing technology, a world-class product and/or a little warmth. With one, two or three of these, you’ll more easily reach new clients, new partners and new resources. We leverage our global network to get our members’ businesses to the forefront with prospects. The process starts with our asking questions to understand more about each member, and then using that information to connect them in a variety of ways to people who will make their business journey a little easier. Those warm intros are often folks we know well who should be a good fit. Our members appreciate the thought behind introductions and the warm approach we take to make it easier for everyone. We’re all busy; none of us can afford to waste time on cold calling or connecting to people who are not in our target. We need to be efficient and effective. Global Chamber can’t guarantee that every warm introduction will result in a sale, but we can say that each one will likely open a door or two to opportunities. And so, adding a little warmth helps make that a more successful process. We do that in five ways. 1) We ask questions and understand. It all begins here. We are able to help members effectively because we understand their needs and work to address them. We understand because we ask. 2) We make warm introductions for our members. When we know who our members need to meet, we make direct introductions to people we know. We frame those introductions

in a way that has value for both people being introduced. How effective is our process? We’re getting better every day, and we have members who are paying extra fees to get additional introductions — 3, 5, 10 or more introductions per month. We’re built to make warm intros across metros. “I went back over the last couple years and it’s clear that our growth can be traced to more clients coming from Global Chamber both directly and through other members than any other source. We are pleased to be members because the ROI is there.” —Kevin Hull, Sr. Vice President at BMO Harris Bank 3) We offer our own events to members and non-members. We do events regularly so that members can connect up with others who are interested to grow. At events, our Global Chamber team will work the room to identify connections for our members. In a big room, it’s hard to connect with just the right people, and we work at making that process optimal through our own efforts and technology. 4) We collaborate on events consistent with the interests of our global tribe. We’re the only organization in the world with the mission to grow business from anywhere to everywh ere while collaborating with every organization. As those collaborating organizations have events, we co-market and participate to expand success — like our collaboration with The Phoenicians here in Phoenix. 5) We count on the talent and connections of the global tribe. Above all else, the global tribe is amazing. They are talented, experienced and unstoppable. We thank everyone who is part of our world, making the business world a little better.


39 Global Chamber WINTER 2018


Let’s Build a New Table Together The Alliance of Arizona Nonprofits is an action-oriented group of partners across Arizona — both nonprofits and those in the community who support them — dedicated to uniting, strengthening and advancing Arizona’s nonprofit sector. The Alliance envisions an Arizona where all nonprofits are valued, empowered and thriving.


p. 2 2018 Arizona Gives Day Results p. 3 On the Board and in the Spotlight - Rhette Baughman p. 4 Tax Cuts and Jobs Act of 2017 Impact on Charitable Giving p. 6 Workforce Development through National Service Programs

Ah, let’s take a moment to envision the mythical “table” we all refer to and the elusive “seat” that we are never invited to fill. Have you ever caught yourself saying, “Well, if we just had a seat at the table we could …”? Admittedly, I’ve said it often when thinking about the work we need to do to support the incredible work of nonprofits in Arizona. I’ve even joked with colleagues, “If you aren’t at the table, you’re on the menu!” But, when you really think about it, this messaging can be “reactive” or, dare I say, even “defensive” in nature. This language can make you feel left out, less important or disconnected; none of which are normally intentional or true. I truly believe that in order for us to collectively build and grow an Arizona that we are all truly proud to call home, we have to come together to find solutions to common problems. We have to have all voices represented if we desire to be innovative, equitable and strong. Nonprofits, businesses, government agencies, educators, policy makers … it takes all of us to make Arizona work and to take care of our communities. Serving the nonprofit community is an incredible honor, but what makes it truly rewarding is to help make the critical connections needed to help these nonprofits fulfill their missions. We can’t do it alone, but we also can’t wait to be invited to the conversation. So I say, let’s throw the old table and seats away and let’s work together to build a new table. Let’s create a spirit of collaboration and inclusion that we have yet to see in our state. Let’s promote and engage amazing leaders in all of our sectors, and let’s highlight best practices that can cross over different segments. Let’s build an essential partnership between those doing critical work to strengthen our communities. Everyone already has a seat at this new table, we just have to fill it. I’ll see you around the table soon. Kristen Merrifield, CAE, CNAP Chief Executive Officer Alliance of Arizona Nonprofits

p. 8 Building Better Boards Leadership that Matters


47 Alliance of Arizona Nonprofits


Commercial Real Estate SPOTLIGHT ON THE BEST

CBRE Colliers International


Use Disagreement to Build Stronger Teams

Asking, “Are you a bad team player if you don’t agree?” Audrey Espstein explores why and how to get team members to disagree. DEPARTMENTS


Guest Editor


55 Commercial Real Estate: Spotlight on the Best

MAY 2018





Attorney examines franchising as an expansion strategy, and discusses factors involved in preparing and carrying out a franchising program.






“Emojis Do Real Estate” and “Audio Technology to Hit Pause on Poor Acoustics”

Ryan Sarbinoff, vice president and regional manager with Marcus & Millichap, introduces the “Commercial Real Estate” issue.


New releases give fresh insights on business thinking.

From the Top

Mitzi Castillo and Laurel Lewis respond to In Business Magazine’s burning business question of the month.

Trevor Wilde founded Wilde Wealth Management Group on principles he learned on the gridiron.





“Finance Division for Franchise,” “AI Automates Accounts Payable,” “‘Netflix For Business,’” “Solution for Real Estate Lenders,” “Local Standouts Recognized for Achievements and Philanthropy,” “On-Demand Home Buying/Selling” and “More Money in Contactless Cards”

2018 Volvo XC90 Plus: Safety at work is one thing, but what about outside the workplace?


Morning Squeeze: Relish the Retro Plus: These sushi places don’t have to fish for compliments.

By the Numbers

In a balanced market of buyers and sellers, small-business sale prices reach record highs.



“SaaS Platform for Influencer Marketing” and “In Business for Good”



“Balance Neighborhood Concerns with New or ReDevelopment,” “Value-Add Opp in One of Fastest-Growing Cities,” “New Groundbreaking at Papago Park Center” and “Medical Users Find Space in Gilbert”

JLL NAI Horizon




“MyUnity™ for Full Continuum of Care,” “Oral Hygiene, Digitally” and “Employers Benefit from Price Transparency in Healthcare”


38 66

Power Lunch


ATHENA International founder Martha Mertz looks at the growth of women as business leaders and explores the impact of gender and culture on leadership style. ON THE AGENDA



‘Final Countdown to GDPR’ — Arizona Technology Council IMPACT Awards Luncheon — Greater Phoenix Chamber of Commerce



Business events throughout the Valley

The new tax law holds favorable prospects for commercial real estate, according to John Chang, research analyst with Marcus & Millichap Real Estate Investment Services. Read the cover story on page 24.


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

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May 2018 In Business Magazine is a collaboration of many business organizations and entities throughout the metropolitan Phoenix area and Arizona. Our mission is to inform and energize business in this community by communicating content that will build business and enrich the economic picture for all of us vested in commerce.

PARTNER ORGANIZATIONS Kristen Merrifield, CEO Alliance of Arizona Nonprofits (602) 279-2966 Jess Roman, Interim Chief Executive Officer Arizona Small Business Association Central Office (602) 306-4000 Southern Arizona (520) 327-0222 Steven G. Zylstra, President & CEO Arizona Technology Council One Renaissance Square (602) 343-8324 Doug Bruhnke, Founder & President Global ChamberÂŽ (480) 595-5000 Julie S. Cook, President NAWBO Phoenix Metro Chapter (480) 289-5768 Anne Gill, President & CEO Tempe Chamber of Commerce (480) 967-7891 Our Partner Organizations are vested business organizations focused on building and improving business in the Valley or throughout Arizona. As Partners, each will receive three insert publications each year to showcase all that they are doing for business and businesspeople within our community. We encourage you to join these and other organizations to better your business opportunities. The members of these and other Associate Partner Organizations receive a subscription to In Business Magazine each month. For more information on becoming an Associate Partner, please contact our publisher at

ASSOCIATE PARTNERS Ahwatukee Foothills Chamber of Commerce Arizona Chamber of Commerce & Industry Arizona Hispanic Chamber of Commerce The Black Chamber of Arizona Chandler Chamber of Commerce Economic Club of Phoenix Glendale Chamber of Commerce Greater Phoenix Chamber of Commerce Greater Phoenix Gay & Lesbian Chamber of Commerce Mesa Chamber of Commerce North Phoenix Chamber of Commerce Peoria Chamber of Commerce Phoenix Metro Chamber of Commerce Scottsdale Area Chamber of Commerce Surprise Regional Chamber of Commerce WESTMARC


MAY 2018


May 2018

VOL. 9, NO. 5

Publisher Rick McCartney

Editor RaeAnne Marsh

Art Director Benjamin Little

Contributing Writers

MANAGE YOUR CASH. AND CASH IN. You can tackle extended payment terms and get cash back through a business credit card that delivers. Learn more ways to own your cash at

Alison Bailin Batz Adam Baugh John Chang Ed Clarke Audrey Epstein Bob House Mike Hunter Thomas Kaufmann Gloria Marcott Martha Mertz Courtney Read Ryan Sarbinoff Ruth Seigel Susan Wells


Operations Louise Ferrari Business Development

Member FDIC

Louise Ferrari Camron McCartney Kelly Richards Parker Shipe Cami Shore

Events Amy Corben



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Thanks to our speakers Kristina Sabetta, LMSW Executive Director Mental Health America of Arizona

Hugh Lytle Founder, Chairman and CEO Equality Health

Frank Benedetto Market Head of Sales Banner | Aetna

Mike Tilton Vice President Blue Cross Blue Shield of Arizona

Amber Gilroy COO Cancer Treatment Centers of America

David Berg, D.C. Chairman Redirect Health

Thanks to our sponsors


MAY 2018

President & CEO Rick McCartney

Editorial Director RaeAnne Marsh

Senior Art Director Benjamin Little

Financial Manager Tom Beyer

Office Manager Allie Schimmel

Accounting Manager Todd Juhl Corporate Office InMedia Company 1 N. 1st Street, Sixth Floor Phoenix, AZ 85004 T: (480) 588-9505 Vol. 9, No. 5. In Business Magazine is published 12 times per year by InMedia Company. POSTMASTER: Send address changes to InMedia Company, 1 N. 1st Street, Sixth Floor, Phoenix, AZ 85004. To subscribe to In Business Magazine, please send check or money order for one-year subscription of $24.95 to InMedia Company, 1 N. 1st Street, Sixth Floor, Phoenix, AZ 85004 or visit We appreciate your editorial submissions, news and photos for review by our editorial staff. You July send to 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. © 2018 InMedia Company, LLC. All rights reserved. No part of this magazine July be reproduced or transmitted in any form or by any means without written permission by the publisher.



Grounded in Real Estate Ryan Sarbinoff moved to Marcus and Millichap’s Phoenix office in January 2017 as vice president and regional manager following 11 successful years with the company as retail investment sales agent, sales manager, and regional manager for the Indianapolis, Cleveland and Cincinnati offices. He also serves as the broker of record for Marcus and Millichap’s Arizona operations. Sarbinoff earned his bachelor degrees in history and criminal justice at Indiana University. An active member of NAIOP, Valley Partnership and Urban Land Institute, he has also devoted time to numerous community organizations that include Brokers for Kids, Ryan House and NAIOP Dream Team, among others

Real estate is, historically, the basis of wealth. As an economic factor, it’s an industry that underpins an enormous swath of other industries. The state of investment in it, then, has a broad impact on the economy at large. As one of the largest industries in the state, real estate impacts Arizona’s economy in a multitude of ways. Phoenix, specifically, is in prime position to see continued growth in real estate due to two primary drivers: net migration and job growth. Net migration from other states and countries has accounted for more than 62 percent of Arizona’s total population change in each of the last four decades. An average of 223 people per day are moving to Maricopa County alone, making Phoenix the fastest-growing city in the country. Furthermore, the Greater Phoenix Economic Council forecasts 18-percent employment growth over the next decade, nearly double the national average of 10 percent. As a result, new construction and renovation of single-family homes, apartment communities, office buildings, industrial facilities and retail centers will be necessary to satisfy the needs of our ever-growing community. The new tax law, Tax Cuts and Jobs Act of 2017, impacts the flow of money within the real estate sector as investors determine where and how they will direct their funding. The cover story goes into this in depth. And, with Arizona — Metro Phoenix in particular — long a favored location of Canadian businesspeople, the cover story also includes a segment that looks at current activities and trends by this significant source of investment. Among other features this month is a look at how cultural differences may play out in business growth as ATHENA International founder Martha Mertz compares the leadership styles of businesswomen in the U.S. and China. Audrey Epstein offers an unusual perspective on disagreement as a positive force for business leaders in building teams. The special section this month profiles commercial real estate leaders and leading properties. Articles on healthcare, technology, franchising and more round out the content of this month’s issue of In Business Magazine, which is always focused on helping further growth in our business community. It has been an honor to work with the professionals at In Business Magazine on this May issue, and I hope you enjoy the read. Sincerely,

Rick Weekly McCartney Podcast ® hosted by

OUR PODCAST Join us for interesting, informative and inspiring conversations with top local businesspeople in the Greater Phoenix area. Listen now at

Ryan Sarbinoff Vice President and Regional Manager Marcus & Millichap


Location and More In our commercial real estate issue each year, we look to trends and indicators to get a sense of what is ahead. In this year’s issue, we looked to the

its growth, can benefit from those wanting to invest here. We want to thank Ryan Sarbinoff for leading this

experts to help us look quite a bit deeper into the

CRE issue of In Business Magazine. Marcus & Millichap

effects of the new tax code and how it can affect

is a leader in this industry and we are fortunate to

investment in our fast-growing community. New

have Ryan overseeing this market. Organizations like

properties and concepts are being built and more

the many world-renowned commercial real estate

are to come, making gentrification and opportunity

firms we have in Phoenix keep us always on top of

abound in our market. Office, industrial, multifamily

our game and entrench us in commercial deals.

and retail are all on the rise and Phoenix, given

—Rick McCartney, Publisher

Commercial MAGAZINE

MAY 2018


Real Estate: Spotlight on the Best




Commercial Real Is the new tax

law a benefit


to Phoenix investors? Build Strength

MAY 2018

through Disagreeme nt



Alliance of Arizona Nonprofits Global Chamber

Starting Up in Conscious Capitalism Franchising as Expansion Strategy $4.95 INBUSINESSPHX.COM


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

Story Ideas/PR: editor@ Business Events/ Connections: businessevents@ Marketing/Exposure: advertise@ Visit us online at


MAY 2018



What were some key factors in your decision to own the property for your business and/or in making that happen?

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Managing Partner Phinance Commercial Capital Sector: Finance

Senior Vice President NAI Horizon Sector: Real Estate

Our experience purchasing our commercial real estate building was the best decision my husband (also business partner) and I have made for our business. We had been leasing an office in midtown from a friend, a situation that was working for us until we found out he was considering moving to a location that would have been too far for us and our clients. We were lucky in quickly finding a building we liked nearby; it needed only some cosmetic changes, had ample parking, and was within our price range. The financing process went smoothly, as we use our own finance brokerage firm to take care of it. It took about a month or two to remodel and furnish the building — our building! We opened our doors in February of this year and within weeks leased three offices that we were not using. We now own our building and have plenty space to grow our team. We also generate revenue from the additional offices. It feels great to arrive at this beautiful building every day and know it is ours.

Many of my small business clients find there comes a time when their business is established enough that they are able to make long-term plans for their real estate. A few of the initial questions are “Can I qualify for a loan?” and “How does my lease cost compare to the cost of a purchase?” With low interest rates and attractive loans available for “owner occupied” buildings, the decision gets easier. Lease rates are escalating and buildings can still be purchased below the cost of replacement, allowing their equity to grow. Some buyers are making it part of their retirement plan. When they retire they plan to lease out the building for additional income. Other factors my clients are considering when deciding to buy include the peace of mind in knowing their long-term fixed expenses. They eliminate the risk of fluctuating lease rates and the cost of a move should their landlord choose not to renew their lease. And a big intangible benefit is the pride of ownership and the ability to control their own destiny.

Phinance Commercial Capital

NAI Horizon

Mitzi Castillo is co-owner, with husband Sergio Martinez, of Phinance. The company consists of dedicated business professionals with 20-plus years of experience in the financial, business development and marketing arena working with more than 100 commercial lenders, both traditional and alternative. Striving to find the one who is willing and able to provide the capital each of its clients’ business needs, Phinance is committed in this quest.

Laurel Lewis focuses on the representation of both landlords and tenants through the sale and leasing of multi-tenant office properties and owner-user buildings throughout Metropolitan Phoenix. Specializing in real estate-related marketing and strategic planning, site acquisition or disposition, renewal and relocation studies, financial analysis, negotiation and development of transaction terms and marketplace analysis, Lewis has closed more than $61 million of commercial real estate transactions since 1992.

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MAY 2018



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



by Mike Hunter

AI Automates Accounts Payable Digitech Systems’ new PaperVision Capture R87 software helps businesses simplify the process of converting to automated Accounts Payable (AP) processes. PaperVision Capture can virtually eliminate manual data entry of financial information, while digitizing AP process. A patented artificial-intelligence engine within PaperVision Capture can automatically recognize invoices, classify them by vendor, and extract all the data needed for a business to upload to its accounting application. Its threeway match electronically compares details from purchase orders, invoices, and goods received receipts — even if they’re housed in different applications. Additional features also enable automated workflow of invoices through approval processes and secure long-term storage of financial information either on-premises or in the cloud.

‘Netflix For Business’ Bizversity is aimed at the 800 million people worldwide who are business owners. The platform, suited to the fast-paced, mobile

On-Demand Home Buying/Selling OfferPad’s on-demand technology platform provides homeowners the ability to move freely, eliminating the stress and unpredictability associated with the traditional real estate process. Homeowners visit, request a free purchase offer and, within 24-hours, receive an offer on their home. Once an offer is accepted, people can select their closing date. Buyers can access and self-tour OfferPad homes on their own time through a feature on the site called Instant Access. They can also view home details and initiate an offer. In addition, buyers can view other nearby homes, provide feedback or request an Agent-on-Demand to help them with the process if they choose. OfferPad also works directly with homebuilders and other real estate technology companies to provide homeowners with more options to buy and sell their homes. OfferPad started the company in Arizona and is headquartered in Gilbert. The city is on TIME Magazine’s list of The 20 Hottest Cities for Tech Jobs Now, and, as such, is an ideal market

nature of businesspeople today, is an app compatible with mobiles, tablets and TV, like Netflix, but instead of dealing with the realm of entertainment, it hosts more than 1000 on-demand business training videos

for the type of consumers hungry for this real estate revolution. We have an enormous pool of smart, savvy and talented people, and with the influx of new residents comes a need for housing. The rise of the on-demand consumer has changed the way a myriad of businesses operate — from food service to package delivery — and it was just a matter of time before the real estate industry would need to evolve its operations to better suit today’s buyer and seller. After years of working in various real estate endeavors independently, OfferPad’s founders, Brian Bair and Jerry Coleman, teamed up in 2009. Since that time, the innovative duo has bought and renovated, then sold or rented, more than 100,000 homes across the U.S. With their unique insight into what homeowners need today, they launched OfferPad to give freedom to families and provide convenience, control and certainty when it’s time to sell and buy a home. —Cortney Read OfferPad

after partnering with 250 business experts. Broken into channels, users can find videos on more than 80 topics such as SEO, how to create new leads, and easy-to-follow “how-to” technology software guides users can implement in their business. Currently, Bizversity is free, but in the middle of 2018, the company will be launching its paid subscription service via a freemium model.

Solution for Real Estate Lenders The Solex eClosing and eVault solution by Idaho Falls, Idaho- and Scottsdale, Arizona-based Docutech, the leading provider of document, eSign, eClosing, and compliance technology for mortgage, home equity and consumer lending, has been approved by Fannie Mae for eClose, eNote, and eVault functionality. In addition, the Solex eVault has received certification from the MERS eRegistry for all eNote management transactions. Solex eClosing and eVault enables lenders to securely close and register electronic notes on the MERS eRegistry and deliver them with full confidence that each mortgage satisfies investor requirements.

WalletHub recently named Scottsdale 14th on its "Happiest Cities in America" list for 2018.


MAY 2018




Local Standouts Recognized for Achievements and Philanthropy ACHIEVEMENTS

HomeSmart 5th-Largest in the Nation HomeSmart is ranked the No. 5 largest real estate brokerage in the nation in the 2018 RISMedia Power Broker Report, a ranking of the top-performing brokerage firms in the country. For seven consecutive years, HomeSmart has been included in the RISMedia ranking, and is in the survey’s top 10 real estate companies for the second year in a row.

Local Photographer a Global Top Talent Darrylee Cohen, president of Phoenix-based Haute Photography & Videography, is one of the top five event photographers in the world chosen as part of PhotoShelter’s The List, an exclusive selection of top photographers. Founding her company 10 years ago, Cohen turned her passion for photography and videography into what is now an award-winning business specializing in corporate, charity and community events. PhotoShelter is the leading digital asset management platform for visual storytellers.


Even Stevens Phx Reaches 100K Sandwiches Donated Even Stevens Downtown Phoenix has reached the exciting milestone of 100,000 sandwiches donated to local nonprofit partners Desert Mission Food Bank, Sojourner Center, Phoenix Rescue Mission and St. Vincent De Paul. The Salt Lake-native craft-casual restaurant serves sandwiches, salads, bites and local craft fare unique to each of its 20 stores across six states, and, with every sandwich purchase, donates a sandwich to a local nonprofit partner — allowing them to direct resources toward programs that address the root causes of food insecurity.

Virtual Reality Experience for Free Arts Kids R&R Partners, an international marketing and advertising agency, hosted children ages 10 to 16 from the Free Arts for Abused Children of Arizona program to experience painting in a virtual atmosphere at their office in the Phoenix Warehouse District last month. Free Arts is the only nonprofit organization in Arizona delivering creative and therapeutic art programs, at no cost, to children ages 3 to 21 who have faced abuse, neglect and homelessness. The event stems from the Phoenix Addy Awards, where the advertising agency was tasked with providing an artistic contribution for an auction benefitting Free Arts programs. FabCom, a fellow marketing agency in Scottsdale, won the bid to sponsor the virtual reality experience. •

MAY 2018



More Money in Contactless Cards Scottsdale-based Equinox Payments, a leading provider of payment terminals, applications and support services, has enhanced its Apollo, L5000 and Luxe terminal lines to support contactless chip technology for JCB cards. JCB, a major global payment brand and a leading payment card issuer and acquirer in Japan, represents a significant amount of consumer spending — according to the U.S. Department of Commerce National Travel and Tourism Office, 83 percent of Japanese tourists cite shopping as a key activity; in 2016, the spending total came to about $16 billion for the 3.6 million Japanese visitors who traveled to the U.S. Supporting chip and contactless is a convenient way to remove any friction during the payment transaction since it mimics the process JCB cardholders are used to in their own country. “Merchants that adopt these solutions can improve the checkout experience for

JCB card members, and make sure their business is ready for the JCB EMV liability shift that takes effect next year,” says Rob Hayhow, Equinox vice president. “Once completed, all Equinox payment terminals will be automatically enabled to support JCB Contactless at the factory prior to release.” Final certifications are expected this summer, providing merchants with Equinox terminals a simple upgrade path to extend the convenience of tap-and-go payments via JCB chip cards and Apple Pay. In the U.S., JCB transactions are routed through Discover Network. —Mike Hunter Equinox Payments

Finance Division for Franchise Washington Federal has dedicated a new division specifically to franchise, recently launching a formal Franchise Finance Division focused on helping established restaurant franchisees secure funding for their businesses and headquartering it in the bank’s Arizona Regional Headquarters office in Scottsdale. The division is being led by industry veteran Marisa Felker, who will oversee the program across Washington Federal’s eight-state footprint. “In keeping with Washington Federal’s desire to increase its commercial loan portfolio in a profitable and sustainable way, restaurant franchise finance is a good fit,” says Felker, who, over a 25-year career, has served as a leader in franchise funding and also brings expertise in the areas of private banking and portfolio management. Explaining that franchise is a growing industry in the bank’s eight-state footprint — and is less vulnerable to the cycles that affect other sectors — she notes that franchisees are constantly upgrading their

Even Stevens restaurant chain donates more than 100,000 sandwiches per month to local nonprofits across the 20 markets it serves, who then direct the money thus saved to their other programs.

stores and there is a lot of consolidation going on among franchisees. “Both of these factors provide solid opportunities for loan growth going forward,” Felker says. “In recent years, the restaurant franchise industry has been growing approximately 6 percent per year, and it is currently a $256 billion industry with no signs of slowing,” says Mike Brown, president of Washington Federal’s Arizona region. “While Washington Federal has been involved in helping franchisees for decades, with the addition of Marisa’s expertise, the time felt right to launch our own platform to help these businesses reach full potential.” —Mike Hunter Washington Federal


Small-Business Sale Prices Reach Record Highs to Start 2018 Balanced market of buyers and sellers by Bob House

The first quarter 2018 Insight Report from, the Internet’s largest business-for-sale marketplace, shows a record-breaking quarter for the business-for-sale market for sales prices and completed transactions, highlighting a positive start to the new year. Small businesses sold for a median sale price of $245,000 in the first quarter of 2018, the highest sale price since BizBuySell started tracking the data in 2007 and a 3.4 percent increase from a year ago. The median asking price of sold businesses also hit a record high at $262,000, a 4.8 percent increase from 2017. Small-business owners should take note of the record prices. For those considering a sale, now appears to be a great time to at least contact a broker and ask how their business stacks up against the overall market. While business owners are getting more for their business, the data does not necessarily indicate a seller’s market. As is evident by the 0.92 sale-to-asking price ratio, buyers are willing to pay higher prices, but that may be due to the financial stability attached to these businesses and a strong optimism for continued growth. According to the National Federation of Independent Business (NFIB) February’s Small Business Economic Trends Survey, “small-business owners are showing unprecedented confidence in the economy.” BizBuySell data corroborates this sentiment. Median cash flow is often considered the best indicator of a business’s success. The median cash flow of businesses sold in Q1 increased to $120,000, a 2.3-percent increase over the same time last year. Additionally, BizBuySell’s latest small business owner poll shows that 72 percent of owners believe financials will continue to rise in 2018. Notably, tax reform appears to be one of the larger factors driving this positive outlook. According to the opinion poll data, more than 48 percent of small-business owners believe the tax changes

benefit small businesses compared to just 24 percent who said they are harmful. Tax reform also appears to be good news for the overall small-business environment, as 60 percent of benefiting owners plan to hire additional employees in 2018 and 57 percent plan to increase compensation. With owners entering the market to capitalize on rising prices and buyers willing to spend more for healthier businesses, the net result was 2,678 businesses sold in the first quarter of 2018. This represents a 13.1-percent increase from this time last year and the most businesses reported as sold in a quarter since BizBuySell began collecting this data. Similar to the number of businesses sold in the first quarter, businesses placed on the market also increased, up 6.9 percent. These businesses also boast growing financials, suggesting there is still a large amount of healthy businesses available for interested buyers. It is likely that baby boomers will continue capitalizing on today’s favorable conditions and exit small-business ownership for retirement in large numbers. At the same time, younger buyers are finding attractive businesses for sale with good access to lending, pointing to a balanced market with few signs of slowing down.

Q1 2018 Business-for-Sale Active Listings in Phoenix-Mesa-Scottsdale BizBuySell Active Listings – Business-for-Sale Data Business Type


Median Asking Price

Median Revenue

Avg. Multiple of Revenue

Median Cash Flow

Avg. Multiple of Cash Flow

Breakdown of Active Listings by Asking Price Price


% of Total

Retail - Restaurant







$0 - $50,000



Retail - Other







$50,001 - $100,000










$100,001 - $200,000










$200,001 - $300,000









$300,001 - $500,000



All Business Types







$500,001 - $1,000,000



Year-over-year change











Bob House is president of BizBuySell, the Internet’s largest business-for-sale marketplace. Since 1996, BizBuySell has offered tools that make it easy for business owners and brokers to sell a business, and potential buyers to find the business of their dreams. The company releases its BizBuySell. com Insight Report on a quarterly basis, reporting changes in closed transaction rates, valuation multiples and other economic indicators for the small-business transaction market

Source: BizBuySell’s Q1 2018 Insight Report

BizBuySell analyzed 58 closed transactions in this market in Q1 2018. Businesses sold for a median sale price of $350,000. On average, this is 0.94 of the ask price. These businesses had a median revenue of $550,000 and a median cash flow of $175,727. Business buyers paid on average 0.58 times revenue and 2.22 times cash flow.


MAY 2018




SaaS Platform for Influencer Marketing Find Your Influence has become a leading SaaS Influencer Marketing platform, connecting brands such as V8, Tylenol, Budweiser and Delta to high-impact influencers and tracking their campaigns from start to finish. It was founded in July 2013 by Cristine Vieira and Jamie Reardon, who brought their complementary expertise in marketing and technology, respectively, and their experience helping run LifeLock’s digital marketing efforts for more than six years. While at LifeLock, Vieira and Reardon managed an influencer program that was a tremendous help in boosting LifeLock’s online brand sentiment and overall share of voice online. At the time, Vieira explains, influencer campaigns were difficult to optimize, required multiple platforms to find and track the performance of campaigns, and required contracts with each influencer to facilitate payment. “Jamie and I quickly recognized a need in the space and stepped away from LifeLock to create the first influencer marketing platform,” Vieira relates. The advances that created the opportunity are also creating the challenges. Says Vieira, “We’re lucky to have launched a product in a market that is expanding, but with that comes the need for constant innovation and speed to market.”

Sharing that her goal for the company is to be the leader in all things “influencer,” she says, “There is infinite opportunity in our space from helping the content creators, connecting Fortune 1000 companies and SMBs to the best and most relevant influencers and utilizing data to optimize performance.” Find Your Influence

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MAY 2018



Colleges have long been a source of innovative ideas, and in recent years many higher institutions of learning have adopted formal programs to assist students and faculty in starting up a business around their idea. The recent Collegiate Challenge, presented by Conscious Capitalism Arizona and hosted by Grand Canyon University, focused on encouraging startups that incorporate the tenets of Conscious Capitalism, including a higher purpose and the clear message of “business as a force for good.” Ten teams from Arizona universities and colleges competed for cash prizes and awards by presenting innovative, viable business venture plans. Every team won at least two awards for competing: $500 cash from Conscious Capitalism Arizona and a 12-month membership to the conscious co-working space MAC6. And local angel investors were among the several hundred people who attended the event. Winning teams were Arizona State University’s TurnoverBnB, which created software that handles the scheduling and confirmation of the home cleaning turnover for those who market vacation rentals on AirBnB; University of Arizona’s Ecocrete, which creates safe, cost-effective and ecofriendly construction materials from the by-products of mining and energy industries, such as mine tailings and fly ash; and Grand Canyon University’s Prophet Insight, aimed at providing small-business owners a competitive analysis of social media, visualization of public data and statistical analysis of internal information through an SaaS platform and one-on-one consultations that will gain them “prophet-like insights for their business.”

Asserting a passion for education and Conscious Investment, the chairman of Conscious Capitalism’s Arizona chapter, Scott McIntosh, says, “Our Arizona chapter, CCAZ, is dedicated to bringing Conscious Capitalism to education, initially to university business schools, and ultimately to K-12 and all of university systems. We are working to create an Arizona template for Conscious Capitalism in education curriculum, and we will share the template with schools across the country and around the globe.” Conscious Capitalism Arizona

The City of Phoenix, a member of the Arizona Business Incubation Society, encourages the growth of local incubators, accelerators, co-working and maker spaces. •

Photo courtesy of Find Your Influence (top)

In Business for Good


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Balance Neighborhood Concerns with New or Re-Development

Hula’s Modern Tiki on 7th Street is a prime example of successful community outreach. The proposed restaurant is locating into a vacant building that directly abuts the Windsor Square residential neighborhood, an historic community known to oppose restaurants and bars that have outdoor patios. The development team met with the HOA president first to share the proposal and get early buy-in. Second, the team presented the concept at their monthly HOA meeting and solicited feedback. Third, the development team worked together with key stakeholders to identify and craft potential stipulations of approval that could help improve operations and ensure neighborhood compatibility. Upon filing, the development had a greater likelihood of obtaining zoning approvals with the support of the community known for opposing these types of requests. Hula’s was granted zoning approval and will be opening on 7th Street this year. —Adam Baugh of Withey Morris, PLC (

MAY 2018




First, discernment is key in conducting neighborhood outreach. Recognition of real neighborhood concerns cannot be overstated. Focusing on the real issues and actual stakeholders can address concerns and result in a joint compromise. Identifying the actual stakeholders and working together on common ground can neutralize professional opponents and manufactured opposition. On a recent case, we learned a competitor was secretly behind the opposition

effort to keep out a new restaurant. By identifying the motives behind the opposition, we could effectively engage the true neighbor concerns and expose the competition’s efforts. Second, engage the neighborhood early and often. Establishing genuine relationships with key stakeholders will go a long way in working together to achieve a successful development. Developers will earn their trust by working on joint solutions before filing an application. Often, they will attend the hearing in support of the new development because of that effort. Third, associate with a respected land use and zoning attorney from the project outset. He or she brings experience and expertise shaped by years of development projects, city relationships and community outreach. Together, land use and zoning attorneys set forth a collaborative and strategic neighborhood outreach plan that anticipates real neighborhood issues and discerns against faux opposition. Community outreach is integral to any successful development. Finding common ground with individuals and property owners most affected by development is key to securing community support. With the right development and zoning team in place, neighborhood support is possible and development will succeed. — Adam Baugh, owner at Withey Morris, PLC ( where he has been practicing land use and zoning law since 2007, is a seasoned and successful lawyer who regularly works with city councils, planning commissions and neighborhood groups in representing landowners, developers and businesses in obtaining land use entitlements


by Mike Hunter

Value-Add Opp in Mesa

Groundbreaking at Papago Park Center

Medical Users Find Space in Gilbert

MIG Real Estate, a Newport Beach-based real

With demand for Tempe office space at an

Kentucky-based Springstone, a leading

estate investment company, acquired Trails

all-time high, Lincoln Property Company has

provider of behavioral health services

at Harris Apartments, a 209-unit multifamily

broken ground on the second Class A office

throughout the U.S., will develop its second

property in Mesa. The property aligns with

building at The Grand at Papago Park Center.

Arizona behavioral health facility on 6.59

MIG’s philosophy, which is centered on

Totaling 352,000 square feet, The Grand

acres it recently purchased in Gilbert, near

improving the quality and performance of

Building Two is one of Arizona’s largest-

the Mercy Gilbert Medical Center. “We have

its properties to achieve optimum value.

ever office buildings to break ground as a

experienced a high volume of activity

Trails at Harris Apartments will undergo

purely speculative endeavor. It is scheduled

around the area for medical users looking for

significant enhancements as MIG Real Estate

for completion in second quarter 2019,

space,” says Philip Wurth, executive V.P. with

creates a more attractive for-rent housing

becoming the second of eight Class A

Colliers International in Greater Phoenix,

option in one of the fastest-growing cities in

office buildings slated to be built by Lincoln

who negotiated the sale. Springstone

the nation. This is MIG’s second multifamily

Property Company within the 60-acre mixed-

plans to break ground on a 60,000-square-

acquisition in the Phoenix Metro market in

use project called The Grand at Papago Park

foot facility by early July, with completion

the last two months.

Center. •

expected in 2019.n

At build-out, The Grand at Papago Park Center will total 3.2 million square feet of mixed-use office, multifamily, hotel, retail and restaurant space surrounding a dynamic central water feature and pedestrian-friendly, multi-use paths that meander throughout the project.

Photos courtesy of MIG Real Estate, Lincoln Property Company and Springstone (l to r)


An army of red shirts, slogan pin buttons, protest signs and opposition websites. These efforts describe the recent increase in opposition to infill redevelopment, rezoning and community planning. Neighborhood outreach and citizen involvement is a bedrock principle in the development process. By ordinance, local jurisdictions require developers to notify and meet with neighbors for a variety of property entitlements such as general plan amendments, rezoning, site plan approval, variances, use permits and more. Cities and counties generally require some form of community outreach, and smart developers often engage neighborhood involvement early in the process. However, the increase in project opposition and the new methods employed by opponents require serious pause and study. Developers and zoning attorneys must learn to strike the right balance of listening and responding to neighborhood concerns while positioning their project for development success.

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by Mike Hunter

MyUnity™ for Full Continuum of Care myUnity™ is a cloudbased comprehensive electronic health record platform recently made available by Netsmart to serve the entire care continuum of care at home and senior living providers. The platform is the next step in the Netsmart strategy to support and integrate the entire care at home and senior living ecosystems with all of healthcare, and its workflows and processes are designed to specifically address value-based care. Netsmart CEO Mike Valentine believes individuals’ care record should follow them regardless of the setting or provider. “As our clients provide that care, they need complete, immediate and easy access to information that captures a person’s entire health story,” he says. “Not only does this arm them with the right information to deliver whole-person care, but, by having all functions integrated, post-acute organizations can easily deliver positive outcomes. All of this contributes to making them a valuable referral partner to payers and providers.”

Oral Hygiene, Digitally Augmented reality (AR) has the potential to revolutionize the oral hygiene category, with industry players increasingly harnessing this technology to uniquely attract and engage consumers, GlobalData reports. In GlobalData’s 2017 global consumer survey, just 18 percent of respondents said they currently use digital tools to monitor/manage their dental and oral hygiene, whereas 40 percent of consumers said they would consider doing so in future. Lia Neophytou, associate analyst of Consumer at GlobalData, says, “This offers the highest usage potential for digital tools across all other toiletries and hygiene categories, indicating a possibility for consumers to be particularly receptive toward oral care innovation incorporating AR technology. French smart oral care company Kolibree is one such company innovating with this ambition in mind. Early this year, the company launched an AR-enabled toothbrush for kids — Magik — which turns any smartphone into a game console for fighting cavities and plaque.

MAY 2018




Employers Benefit from Price Transparency in Healthcare Employers as well as consumers have been pushing for price transparency in healthcare for some time, but now the idea is gaining momentum. Employers know price transparency can help their employees make informed healthcare decisions and, ultimately, better manage the cost of care. Nationally, healthcare represents nearly one-fifth of the total gross domestic product, and the annual per-person cost of healthcare stands at $10,348, according to 2016 data from the U.S. Centers for Medicare & Medicaid Services. As the cost of care continues to rise at an unsustainable rate, employees are feeling the pinch in the form of higher premiums and deductibles. The same is true for employers that must carve out a bigger line item for healthcare in their annual budgets. The irony is that patients are largely in the dark when it comes to the cost of care. They don’t know that healthcare providers bill different insurance companies at different rates for the same services or that a CT scan in one location could be much less expensive at another facility a few blocks away. As long as they have insurance and their premiums are paid, they have come to accept the out-of-pocket costs as “normal.” When asked about their concerns with healthcare, nearly two-thirds of Americans say it’s too difficult to find out what medical care costs, according to research presented by six U.S. senators sponsoring healthcare transparency legislation. There’s also the issue of cost vs. benefit. In some cases, the same lab and other services could vary in price. In other cases, unnecessary tests may be ordered and additional services provided, driving up the cost of care without necessarily improving the outcome. A good example is the treatment of acute lower back pain. Evidence-based guidelines prove that for the vast majority of patients, such pain will resolve itself within 30 days without any medical action. Even so, an immediate reaction by patients is often to request an MRI or a procedure that has little to no measurable impact on their recovery. That’s why giving employees an opportunity to comparison shop for healthcare is so important. It starts with awareness — providing employees information about their healthcare plan options, including the services covered and the total and out-of-pocket cost of care.

Nationally, healthcare represents nearly one-fifth of the total gross domestic product, and the annual per-person cost of healthcare stands at $10,348, according to 2016 data from the U.S. Centers for Medicare & Medicaid Services.

Employee engagement also is critical. By getting regular check-ups, keeping track of medications and implementing wellness initiatives, employees can make a positive difference in their health and the cost of care. Finally, physicians must be cognizant of the relationship between quality of outcomes and the cost of care. Research shows that while consumers do want price information, they rely on their doctor when it comes to making most healthcare decisions. As such, physicians must understand the true cost of the care and operationalize this in their practices by eliminating duplicate services, openly discussing the cost of care — and safe alternatives — with patients. Accountable care organizations can help by offering new health plan options to employers and employees, and helping physicians navigate a changing healthcare environment. The idea is not to ration healthcare, but to help everyone along the healthcare continuum — from providers to patients — make the best, most cost-effective healthcare choices that yield the best results. Employer often bear the cost burden of inefficiencies in employee healthcare. They can improve cost transparency simply by asking their health plan for a menu of choices and the cost of covered services, and arming employees with information and technology tools to help them take better care of themselves and evaluate the cost and benefits of care they receive. —Ed Clarke, M.D., chief medical officer of Arizona Care Network (, a physician-led and -governed accountable care organization that improves healthcare and reduces costs for patients in Maricopa and Pima Counties



by Mike Hunter

Emojis Do Real Estate HomeSmart International recently released an app that adds real estate-themed text messaging stickers to users’ smartphone keyboards. The idea for developing the emojis grew out of feedback from the company’s real estate agents that homebuyers appreciate appointment reminders, deadlines and other purchase-related messages by text — which can be expressed as an emoji icon — over such messages as promos, holiday greetings or birthday wishes. The HomeSmart Stickers app is available for iPhone and Android users at no cost. “This trend hasn’t necessarily been driven by the real estate agent but can, instead, be attributed to changing consumer preference for texting as a primary communication channel,” observes Matt Hensler, chief marketing and innovation officer at HomeSmart, noting that, if texting weren’t the preferred channel for the consumer, agents wouldn’t utilize it with them. “Within the context of the real estate industry, this form of communication does have tremendous benefits,” he says. “Being able to simultaneously share links to new listings, confirm showing times or do quick back-and-forth on offers and sales contracts streamlines the interactions overall for all parties involved.” Whether or not emojis are destined to become ubiquitous as a business tool, they can become a component of a cohesive brand strategy. Says Hensler, “Brands are built and reinforced through the sum of all interactions a prospect or customer has with a company. Whether it’s a website or a personal emoji, the interaction needs to be relevant, valued and trusted by the consumer if you want them to do business with you. Our real estate agents are entrepreneurs and their personal brand is front and center in their business. The more they consistently reinforce that brand within the interactions they have with clients, the easier it will be to consistently grow their real estate business.”

Audio Technology to Hit Pause on Poor Acoustics Imagine being at your industry’s most relevant conference of the year. Whether in a large auditorium or a hotel ballroom with just two loudspeakers set up at the front, the acoustics are anything but ideal. Add hundreds of people in the room talking to each other, coughing, doors slamming, and the person next to you eating potato chips right by your ear — it’s likely that you struggle to understand, miss words and lose your ability to concentrate. You want to ask a question but aren’t sure if it’s been answered already. At the end of the day, exhausted in your hotel room, you try to remember what you learned and realize you have two more days to go.

use their existing devices to directly tap in at the push of a button. For everyone else, headsets are available. The company’s newest product, OTOjOY LoopBuds, enables listeners to connect using their smartphone.


We set out to “loop Santa Barbara” in 2012 and have since equipped more than 250 venues, mostly in California, with the technology. Eventually, we were looking for a larger city to move the company to. But where to go? L.A.? San Diego? San Francisco? When we took a closer look at Phoenix, the city was surprisingly attractive. The startup community is growing, FROM ASSISTIVE TECHNOLOGY TO the state offers great resources like the MAINSTREAM Arizona Innovation Challenge or the Venture What if a presentation or board meeting Ready program, the cost of living is lower, the could sound like listening to an audiobook in infrastructure is modern, the market size is one’s car or with headphones? What if a person significant, yet the population density isn’t could just sit back, relax and effortlessly absorb overwhelming. When we started networking, every single word without needing to make out everything fell into place. The city has more the speech in a sea of ambient noises? Using a than doubled in size since the Americans with revolutionary technology originally intended Disabilities Act was signed into law in 1990, for people with hearing loss, OTOjOY is able so accessibility is on top of people’s minds to enhance the listening experiences in live everywhere. There is still a lot of work to be environments for everyone. done, though, particularly when it comes to Ultimately, a person doesn’t need to have hearing access. We moved to Phoenix in May of a hearing loss to have trouble hearing. With 2017 and haven’t looked back a day since. hearing loop technology, we use magnetic OTOjOY technology is in place locally at induction to wirelessly send an analog audio FilmBar, Crescent Ballroom and other venues signal containing speech or music from a venue’s listed on Event attendees sound system directly to the listener’s ears with can avail themselves of the technology by crystal-clear fidelity. Think of a telescope for switching their hearing device to the “t-coil” ears. Most people with hearing aids or cochlear setting or asking the facility for a headset. implants are ahead of the game since they can From a legal standpoint, virtually any place with a sound system, whether permanent How a Hearing Loop works or portable, needs to 1 A sound source such as a 2 The amplifier sends a current to a provide at least a headset microphone feeds sound wire loop that surrounds the room. system. —Thomas into an amplifier. This symbol lets people Kaufmann, founder know that a room is looped, so they can switch and CEO of Phoenixtheir hearing aids to telecoil (or “T”) mode. based audio technology company OTOjOY 3 The current generates a magnetic Wire Loop (, holds field, which emanates from the loop. a German diploma degree 4 in physics and a Master Tiny wire t-coils built into T-Coil most hearing aids pick up the of Science in chemistry magnetic signal. from the University of California, Santa Barbara 5 Hearing Aid

The hearing aid converts the signal into sound customized for the listener's individual pattern of hearing loss.

For more information visit or

MAY 2018



OTOjOY received the Innovation Award at the 2018 Consumer Electronics Show, and was a finalist in the 2018 Global Mobile Awards and the 2018 Edison Awards.

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Taking the Step to Franchise Easing into expansion – is franchising the right strategy? by Susan Wells

Commercial MAGAZINE

MAY 2018


Real Estate: Spotlight on the Best




Commercial Real Is the new tax

law a benefit


to Phoenix investors? Build Strength

through Disagreeme nt

MAY 2018

Starting Up in Capitalism




Alliance of Arizona Nonprofits Global Chamber

Franchising as Strategy




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Susan Wells is a partner at Wells & Gerstman. She has practiced law for 38 years and specializes in franchise law; her 25 years of experience in franchise law include representing Cold Stone Creamery from the time it started franchising until it achieved approximately 1,500 units at the time it was sold to Kahala in 2007.

MAY 2018



One option entrepreneurs may consider for expanding their business is franchising. This may have been part of the development plan initially, or the idea may have taken shape and grown from outside as others expressed interest in trying to copy a successful concept — either a proven, mature business or a new and trendy one. Franchisors should make sure to have all their ducks in a row prior to launching the franchising efforts. Franchising a business prematurely is likely to result in failure, a waste of time and money, and litigation. Taking the time to properly refine and institutionalize the business operations and develop an infrastructure for the franchise system will put the franchisor in the best position to offer a viable franchise opportunity and help the franchisees, and the franchise system, succeed. Brand Name Recognition: Because brand name recognition is the cornerstone of a franchise system, those planning to franchise should make sure their brand name is strong, available and registered on the principal register of the U.S. Patent and Trademark Office. Important first steps are to determine the availability of that brand name, discuss the strength of the brand name with a trademark attorney, and register it with the USPTO. Methods & Systems: It may be necessary to refine the business methods, systems and marketing practices and trade dress of the business. The franchisor should locate vendors and suppliers for products, services and FF&E (movable furniture, fixtures and other non-permanently installed equipment) and evaluate them in terms of price, quality and customer service. It’s important to work the kinks out of methods and systems and establish best practices. It’s also important to track the results of the various past marketing efforts. Taking the steps necessary to improve the economics of the business to make it profitable — particularly after prospective franchisees pay the franchise fee, royalties and marketing payments — will help ensure the franchise’s longterm viability. Standardization: A critical element in franchising is institutionalizing the business methods, systems, marketing practices and trade dress. Standardized recipes, prep guides and operational procedures are necessary so that product and service offerings will be consistent (and consistently good) from unit to unit. Standardization is also necessary for the franchisor to teach its franchisees how to establish and operate the business. Franchisees will appreciate and benefit from proven marketing practices. Trade dress will streamline build-out and enhance brand name recognition. Operating Manual: Franchisors should prepare an operating manual for the business. It is common practice for business owners to give their employees an operating manual; a franchise system operating manual is a similar document. It conveys key information that the business franchisees (and

their managers, chefs and other staff members) need to know about operating the business, such as recipes, opening and closing procedures and employee responsibilities, to protect the franchise system and the goodwill associated with the franchise’s trademarks. However, in the context of a franchise system, it is critical that the operating manual (and the training program, as well) not address the franchisees’ relations with their employees, as that could result in liability to the franchisor in connection with franchisees’ operations. Training Program: Franchisors should establish a training program for the business. Like an operating manual, a franchise system training program is similar to the training program businesses will have new employees complete. It trains the franchisees how to operate the franchised business. It also trains franchisees how to be owners of the business. Visual Language: Franchisors should have a Web design professional create and build a consumer website for the business. It is important to make sure the website can be expanded to accommodate all franchise marketing activities and franchisee intranet requirements and is designed to utilize current SEO and SEM techniques to maximize the franchise’s presence. Support: Before bringing franchisees on board, franchisors should decide what initial and ongoing support and benefits they will provide or make available to their franchisees. Site location and evaluation services or a list of required site criteria? Architectural design services or prototype plans? TI build-out services or assistance, or prototype plans? Established sources of supply? Bulk purchasing power? FF&E brokerage or ordering services or a list of required items? R&D with respect to new product offerings? The list can be exhaustive. The most critical element of being able to establish and operate a successful franchise system is a successful business that has withstood the test of time and can be replicated. Doing one’s homework early will enable a franchisor to make the business as successful as possible and put one in the best position to offer a viable franchise opportunity and help one’s franchisees, and franchise system, succeed.

According to the International Franchise Association’s Franchise Business Economic Outlook for 2018, the gross domestic product (GDP) of the franchise sector will increase by 6.1 percent to $451 billion this year. This will exceed the growth of US GDP in nominal dollars, which is projected at 4.7 percent. The franchise sector will contribute approximately 3 percent of US GDP in nominal dollars.

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Impacting Commercial Real Estate Is the new tax law a benefit to Phoenix investors? by John Chang and Ryan Sarbinoff

Over the last year, elevated uncertainty generated by the range of potential government policy changes, including tax laws, caused many investors to move to the sidelines. A more cautious outlook pervaded the real estate industry as investors awaited clarity on taxes, fiscal policy and a change in Federal Reserve leadership. This perspective begins to ease as the implications of the new tax law firm up and investors better understand how the new rules will affect their investments. The new tax plan offers generous tax cuts to corporations and pass-through entities such as Limited Liability Companies, and investors may see the new tax rules as an opportunity to reconfigure their portfolios. The new tax structure will apply to 2018 income for tax filings in 2019. Locally, the impacts have only started to be realized. Many thought that Q1 of 2018 would be a continuation of a very active Q4 2017. A president with a pro-business reputation and a real estate background had many in the real estate community expecting an explosive start to 2018. However, the complexity of the new tax code caused many investors to take some time for the dust to settle before making any moves. Local investors felt that making a mistake was much worse than missing an opportunity. But recently, both available inventory of investment properties as well as average time on the market have expanded. Buyers are seeing more options to invest in our local market. As a result, we saw a strong Q1 but not as strong as we forecasted. Year-over-year, we experienced approximately 15 percent more investment real estate sales in Arizona than we did in Q1 of 2017. Starting in February and March, we’ve seen investors move with more clarity and confidence. The flurry of activity has yielded an accelerated timeline for many buyers and sellers to capitalize on current market conditions. On a local level, our office is forecasting a significant increase in the number of transactions completed year-over-year in April and May.

NEW TAX LAW RETAINS KEY PROVISIONS FOR REAL ESTATE INVESTORS The highly anticipated tax reform recently signed into law by President Trump retained numerous key commercial real estate provisions. The 1031 tax-deferred exchange, the mortgage interest deduction for investment real estate and asset depreciation had few material changes. This consistency in tax law will enable investors to move forward with most of their existing investment strategies. That said, there are many provisions in the new tax law that will have a more nuanced effect on the sector, and these more subtle adjustments could create significant new opportunities for real estate investors. The big news here for Arizona is consistency and clarity. There was a significant fear that the IRS code 1031 Tax Deferred Exchange could be modified or removed entirely. As a result, the CRE industry overall, and specifically in Arizona, would be negatively affected by a slowdown in


MAY 2018


transactional velocity. With fewer motivating factors for buyers to acquire like-kind properties, demand would wane and prices would fall. Instead, we’ve seen a significant uptick in activity, especially in 1031 sales. Citing figures from our firm, since the number of 1031X sales in the U.S. is not published: In a typical year, 32 percent of Marcus & Millichap’s sales include a tax deferred exchange buyer. In Q1 2018 69 percent of our transactions included a buyer that was leveraging his ability to defer capital gains with a like-kind exchange, compared to 42 percent in Q1 of 2017. The recession was incredibly challenging for commercial real estate in Phoenix. Economic stimulus, historically low interest rates and strong net migration has led to strong investor demand in the last 60-plus months. These trends combined with improving operations and investor optimism have yielded rapid appreciation for many assets in our local market. The 1031X provision continues to incentivize buyers and sellers to transact, thus benefiting the local economy and capital flow into the great State of Arizona.


Canadians Find Arizona Attractive for Real Estate Investing , Low cost of living ,E  asy accessibility to California and other neighboring state with burdensome tax and regulatory guidelines ,A  ccess to responsive state, county and city government officials when working on projects ,E  conomic vitality ,B  uyer’s market compared internationally — significantly less expensive to buy property and/or develop a project in Arizona; attractive appreciation projections ,B  eautiful state with consistent tourism ,L  ow property taxes ,L  ower cost of ownership and property maintenance ,F  avorable commercial property loans ,L  ow construction costs ,E  xpanding transit infrastructure (light rail) ,A  ccess to trade

Perhaps more important than the modest changes to the core commercial real estate tax rules that investors have been most focused on is the reduction of taxes on passthrough entities. Owners of these types of companies will enjoy a 20-percent deduction on pass-through income, though there are several restrictions that will apply to this deduction. This favorable tax treatment will encourage investors to increasingly focus on after-tax yields when comparing their investment alternatives. On an after-tax basis, commercial real estate could offer a much stronger riskadjusted return than options such as dividend stocks and bonds. This could entice additional passive capital to flow to the sector through syndicators, partnerships and other passthrough funds. This influx of capital, should it manifest, could place downward pressure on cap rates. In Phoenix, despite increases in interest rates and spread compression, investors are flocking to commercial real estate investments due to increased cash flows and consistent volatility in alternative investments. More discretionary income is causing business owners to reassess appropriation of capital. We’re currently engaged in a multitude of conversations with local business owners to expand into additional space, add new or updated equipment and new jobs to grow revenue. Business interest deduction changes are inspiring companies that occupy the real estate they own to seriously contemplate sale-leaseback scenarios. This strategy allows business owners to maximize return on their investment, convert their illiquid equity into liquid cash, and structure a lease that maintains long-term control of the building as if they still own it. This is a favorable strategy for many because interest is only partially deductible for most business, whereas lease costs tend to be fully deductible. For real estate investors, mortgage interest can be deducted; however, it will affect the depreciation timeline. Accelerated depreciation on certain assets have many owner-users reevaluating their exit strategy because they can realize these tax benefits immediately in lieu of the typical depreciation schedule.

,P  opulation growth ,R  ight-to-work state


MAY 2018


TAX-INDUCED BEHAVIOR CHANGES WILL BE MEANINGFUL In addition to the direct effect the new tax law will have on commercial real estate investments, indirect effects could be equally important. The increased standard deduction and limits on local property and income tax deductions could significantly alter housing demand and behavior. At the same time, the elimination of the personal mandate of the Patient Protection and Affordable Care Act could impact long-term demand for healthcare real estate. The new rules could also spark increased consumption spending and more business investment into infrastructure. Changes to Carried Interest could slow the pace of construction because developers who use the Carried

Interest provision will need to hold the assets for three years instead of one to treat their profits as capital gains. Investor sentiment indexes have increased dramatically since tax reform was passed. Here in Phoenix, the explosion of multifamily developments evidences that optimism surrounding multifamily operations has increased, the optimism due to expectations of longer-term tenant retention. As a result, some Phoenix investors have become more bullish with assumptions and pro forma scenarios forecasting more favorable returns and higher prices. Changes to carried interest have some Phoenix investors altering their strategies to extend their ownership timelines. We expect there to be slightly fewer transactions over the next 36 months as developers and syndicators who utilize carried interest will have to decide whether to hold for three years or see their gains taxed as ordinary income.

Cross-Border Real Estate Investing Have new U.S. tax laws changed things for Canadians? Canada is the largest foreign direct investment

Investing in U.S. real estate assets is traditionally

For instance, existing properties are attracting

country into Arizona. And Arizona, alone, accounts for

where Canadians have parked their money for building

north-of-the-border attention. Within the past year,

approximately $6 billion bilateral footprint of the $1.4

and diversifying their wealth portfolios. Walters, a

Calgary-based investors purchased the Talavi Towne

trillion between Canada and the U.S., according to the

globally recognized tax advisor and author of several

Center in Glendale for $21.9 million, and another

Canada Arizona Business Council. Our neighbors to

books, including Buying Real Estate in the US – The

Canadian investor purchased the Verde Dimora

the north have long been lured to the great state of

Concise Guide for Canadians, Taxation of Canadians in

Apartments in Mesa for $22.25 million.

Arizona and share similar reasons for why companies

America: Are YOU at risk? and Taxation of Americans

and individuals decide to put down roots here.

in Canada: Are YOU at risk?” notes, “Three of the

year for which data is compiled — $2.7 billion was

This year ushered in the most sweeping tax

According to Williamson, in 2016 — the latest

biggest effects spotlighted from the new tax law is

invested in Arizona commercial real estate. Canadians

reform in decades. For many U.S. taxpayers, the

the doubling of the U.S. estate tax exemption amount

comprised $1.2 billion of that investment. “Now, with

new tax laws prove beneficial, with the reduction

through 2025, the 20-percent deduction on income

the corporate federal tax rate lowered, Arizona’s

of the maximum individual federal tax rate from

from pass-through entities and the lowering of the

already-attractive state tax rate and its proximity

39.6 percent to 37 percent, nearly doubling the

U.S. Corporate tax to a flat 21 percent.”

to neighboring states like California, the future for

standard deduction, 20 percent deduction for

“Arizona is already an attractive location for

Canadian investment in Arizona is bright.” Currently,

income for pass-through entities and lower rates

Canadians to visit, live and set up a business,” says

more than 400 Canadian companies have U.S.

for corporations. The question many are posing is,

Glenn Williamson, founder and CEO of the Canada

operations in Arizona.

“What, if any, effect does the new tax legislation

Arizona Business Council. “With all the Canadian capital

potentially have on cross-border deals and Canadian

pouring into Arizona, the reduction in taxes relieves

sunshine may be the initial lure to Arizona, there are

investment in Arizona?”

some of the red tape and that’s an added sweetener.”

many other reasons why Canadians flock to buy a

“The new Tax Cut and Jobs Act should not be

For nearly a decade, the footprint of money from

While tourism and 300-plus days of annual

second home and invest in other types of real estate

feared, and it is looking like it will have little impact

Canadian pension funds and individuals wanting to

assets (see sidebar). In general, Canadians believe

on the majority of Canadians,” says Dale Walters, CPA,

move and invest here is staggering. The mergers and

they have done well with their U.S. investments

PFS, CFP, senior tax manager and director of Canada-

purchases of Bank of Montreal with U.S. financial

whether it be from long-term equity gains in real

US Tax Services for BeachFleischman. “Extremely

institutions is an example of how the Canadian

estate or making money on the exchange rate. The

high net-worth individuals and those operating a U.S.

institutions have strategically positioned and

new tax laws only strengthen that.

company need to be mindful and stay one step ahead

established a presence south of their border to flow

“There’s no ‘one size fits all’ and the last

of the tax changes for their benefit.”

massive amounts of investment money into the U.S.

thing you want to do is open up yourself to


MAY 2018



risk and complicating matters,” says Peter Anadranistakis, a Canadian investor and real estate entrepreneur. “There are marked differences on how real estate is approached in both countries. Arizona is an extremely business-friendly environment. Government, commerce and civic leaders really work together to make the state better for its citizen and corporate entities.” While the simplification of the tax structure is broadly favorable to real estate investments and tightens up aspects for accounting and estate purposes, any non-U.S. investor regardless of his worth or size of U.S. investments shouldn’t traverse the brave new world of tax reform on his own. “Everyone needs to be conscious and seek advice on how cross-border investing for individual and business entities is structured to ensure maximum benefit,” states Walters. All indications suggest Arizona will remain a top destination for cross-border Canadian capital in the foreseeable future. Canadians have an insatiable appetite for Arizona real estate — just like they crave their hockey and poutine. —Ruth Seigel


Apartment demand is likely to rise. The previous tax rules created an economic incentive to purchase a home through itemized deductions. If the mortgage interest and property taxes exceeded the old standard deduction of $12,700 for married couples ($6,350 for individuals) then taxpayers received a reduction to their taxable income that effectively offset a portion of the housing payment. The threshold home price to receive this benefit naturally depended on interest rates and local property tax rates but was in the $200,000 range for married couples. Under the new tax law, the standard deduction has been raised to $24,000 for married couples ($12,000 for individuals), and as a result the threshold home price to benefit from itemized deductions has increased to the $400,000 range for married couples. Because the threshold has increased well above the median home price in most metros, there will likely be a modest reduction of first-time homebuyers, lifting apartment demand. Long-term prospects of healthcare real estate will soften. The elimination of the personal mandate, a provision of the Affordable Care Act that required people to have health insurance, will reduce the total number of insured by 13 million people over the next 10 years. As a result, about 5 percent fewer people will have health insurance compared with the number that would have been insured if the personal mandate were retained. This will modestly reduce the future demand for healthcare, implying a slight downshift in demand for healthcare real estate compared with projections with the personal mandate. Nonetheless, the aging population will still increase demand for healthcare services over the next 10 years, just not as much as would have occurred with the personal mandate in place. Market liquidity could rise; net-leased properties are positioned favorably. The newly introduced 20 percent deduction on income from pass-through entities could invigorate investment in real estate. On an after-tax basis, the yields offered by the sector will be even more compelling than under the previous tax structures. New capital could enter commercial real estate through syndicators and investment funds that are structured to capitalize on the pass-through advantages, but some new investors will enter the market with direct acquisitions. The additional capital will undoubtedly flow across a variety of property types including apartments, self-storage facilities, and retail, office and industrial buildings, but a segment that could attract a disproportionate share of the investment is single-tenant net-lease properties. These assets, often occupied by high-credit tenants on long leases, afford passive investors compelling yields that could be structured to benefit from the new passthrough tax rules. In addition, because these types of properties generally require minimal management and are available in a wide range of price points, they are well positioned for passive investors. Expanded expensing rules benefit niche real estate. Changes to the Section 179 depreciation rules will favor several niche real estate investments. Under the revisions, business owners will be able to fully expense up to $1 million of depreciable tangible personal property used to furnish lodgings. This change will allow investors with investments such as hospitality, student housing and seniors housing to deduct the full cost of furniture placed in service at their properties rather than depreciating them over multiple years. The rules also extend to roofs, heating, ventilation and security systems in nonresidential property. This provision is largely targeted toward small businesses, so the deduction phases out as business investment purchases exceed $2.5 million. In general, the new tax laws should boost economic growth a bit; we anticipate growth in the 3-percent range. This should bolster wage growth and consumption, but the very low unemployment rates will restrain the pace of hiring. On the residential side of real estate, a housing market slowdown could offset growth. The restructuring of the tax rules will likely weigh on the owner-occupied housing market, particularly in states with elevated home prices and property taxes. The new tax law affects home sales in several ways: The increased standard deduction will modestly restrain first-time homebuyers, while limitations on the deduction of state and local property taxes will weigh on upper echelon housing, particularly in California and states in the Northeast. The introduction of a lower limit on mortgage interest deductibility, now $750,000 instead of $1 million, will also weigh on higher-priced home sales. Since the recession, the housing market has contributed about 3 percent to economic growth, about half of the sector’s contribution levels of the early 2000s. Under the new tax law, housing’s contribution will likely weaken. —John Chang, First Vice President of Research Services with Marcus & Millichap Real Estate Investment Services, provided the broad-view analysis of the tax act and the economy. Ryan Sarbinoff, vice president and regional manager in Marcus & Millichap’s Phoenix office, provided the facts on real estate and real estate investor activity in Metropolitan Phoenix.

MAY 2018



Use Disagreement to Build Stronger Teams Are you a bad team player if you don’t agree? by Audrey Epstein

hosted hosted by by


Rick Rick Weekly Podcast ®® McCartney Podcast McCartney

OUR PODCAST Join us for interesting, informative and inspiring conversations with top local businesspeople in the Greater Phoenix area. Listen now at

Audrey Epstein is a partner at consulting firm The Trispective Group and co-author of The Loyalist Team: How Trust, Candor and Authenticity Create Great Organizations. The firm offers a free team snapshot assessment on its website.

MAY 2018



Because I facilitate team sessions for a living, I’ve seen a lot of team interactions. All kinds of drama, some shouting and tears, but also a lot of laughter, joy and bold action. Much about teamwork has been researched, dissected and discussed. Yet lately, situations have come forward that fall into an unexplored topic: how to get team members to disagree. What do you do as a team member, if, after all the discussion and debate, the hours the team talked about a new direction, plan, or policy, you still disagree? What I see happen on most teams is acquiescence — giving in or just going along. It’s hard for a person to know the line between sticking to her views and aligning with the team. Are you a bad team player if you don’t agree? For a long time, I have facilitated team problem-solving sessions in the same way: First, explore the issue from all sides, uncovering a comprehensive view of the current state and root causes. Next, brainstorm options and agree on a broad path forward. And finally, develop recommendations and specific action plans. During the first two steps, team members share their views, voice concerns, ask probing questions, debate and discuss. I ensure people know it’s a safe environment to dissent and challenge. And then, at a certain point, when we have brainstormed and kicked around options, we agree on a future state. From that, we move into action planning. Once plans and next steps are identified, I deem the team session a home run. We have moved from chaos into order, from theory into action. It always feels like a triumph of team process and alignment.

Settling for “good enough” teamwork hurts your top performers — and your business. —The Loyalist Team

Until it suddenly didn’t. At a recent team session, I didn’t like the feeling in the room at the end of Step 3. Everyone had dutifully done his or her breakout work, devising strong, meaty action plans. Yet, the energy was all off. Team members seemed deflated instead of enthused. So, I decided to do a check in. I asked everyone to show, using hand signals from fist to five, how they felt about bringing this plan forward to the organization. Here are the fist-to-five criteria I used: Fist: over my dead body 1–2: serious concerns and not really on board 3: I can live with it, but … 4: feeling pretty darn good 5: can’t wait to get started Based on the quality of the work they had done to develop strong plans and recommendations, I expected all 4s and 5s. What I saw around the room astounded me. Responses ranged from two-and-a-half to five. I couldn’t believe there were still three team members with serious, stop-thepresses concerns. As we started talking about it, here is some of what I heard: • “I still don’t believe this project should take precedence over our other priorities. And I don’t think we can get those and this done.” • “I don’t feel we have proven the ROI. I’m not convinced it will really impact our goals.”


Applied Empathy Having built his career working with iconic brands and

I was panicked. All eyes were looking at me with a “Now what?” stare, especially the team leader. Instead of trying to fix things, I decided to ask some questions. • “Why did you do the action planning if you still didn’t agree with the solution?” • “What made you feel that you couldn’t say this earlier in the day? What held you back?” I learned that team members felt swept along by the process, guilty about not going along with what the team leader so obviously wanted, and eager to demonstrate alignment and teamwork. We ended the day in a completely different place from what I’d expected. We decided to delay any further action on this project until it could be evaluated in the context of the larger portfolio. It was disconcerting to me. If I hadn’t checked in when I had, we would have ended the day with timelines and actions that fully one-third of the team didn’t believe in, and I (and the team leader) would have left with a false sense of unity. How often does this unspoken disagreement happen on teams? Maybe all the time? So, what can be done to ensure team members don’t just give up too early? Create real space for disagreement. Team leaders should discuss the importance of balancing candor with alignment. It’s important to create a team norm around members speaking up and sharing their view, even when it isn’t popular. Team leaders can talk with the team about the challenges of groupthink and how to avoid this common problem. Also, when doing team problem-solving, team leaders should ask good questions to promote speaking up, such as: • What’s a contrary view? • What have we not considered? • Why would this fail? • What’s the one thing holding you back from full support? • What has not been said that we should discuss before we move on? Check in on how people are feeling. We are focused in business on facts and data. And, while we shouldn’t make our decisions solely using “gut feel,” we shouldn’t ignore our intuition and our inner voice, which usually expresses our fears and concerns. Leaders should get team members to talk about their commitment level. Again, asking questions is the best way to understand what’s on others’ minds. • Now that we have talked this issue through, how would you rate its importance against our other priorities? • If you had to communicate this plan to the organization tomorrow, how would you feel about it? • What still holds you back from full commitment to this plan? Avoid skewing the direction based on personal views. Team leaders who have already decided on the direction or the outcome should tell the team. I have heard from many clients that they are frustrated by bosses who pretend to want input to support collaboration but have already made up their minds. It is acceptable for leaders to sometimes decide without full buy-in; companies are not democracies. But team leaders who really want to hear unbiased views should share theirs last. Don’t get me wrong; I love building team alignment and collaboration. But I also think we need to work just as hard to promote divergent thinking and unpopular views. Team leaders can build a stronger team by getting good at disagreeing.

On the best teams, there are no “elephants” allowed in the room. Run toward the toughest conversations, not away from them. —The Loyalist Team

institutions such as General Electric, Google, Nike, Warby Parker, and also The United Nations and the Obama Administration, Michael Ventura offers entrepreneurs and executives a radical new business book and way forward. Empathy is not about being nice. It’s not about pity or sympathy either. It’s about understanding — one’s consumers, colleagues and self — and it’s a direct path to powerful leadership. As such, Applied Empathy presents real strategies, based on Sub Rosa’s design work and the popular class Ventura and his team have taught at Princeton University, on how to make lasting connections and evolve one’s business internally (employees, culture and product/services) as well as externally (brand, consumers and value). Applied Empathy: The New Language of Leadership Michael Ventura Touchstone

288 pages Avaiable: 5/22/2018


Never Lost Again Never Lost Again chronicles the evolution of mapping technology — the “overnight success twenty years in the making.” Bill Kilday, the marketing director for Keyhole and Google Maps, was there from the earliest days, and offers a personal look behind the scenes at the tech and the minds developing it. But this book isn’t only a look back at the past; it is also a glimpse of what’s to come. Kilday reveals how emerging map-based technologies including virtual reality and driverless cars are going to upend our lives once again. Never Lost Again shows us how our worldview changed dramatically as a result of vision, imagination and implementation. It’s a crazy story. And it all started with a really good map. Never Lost Again: The Google Mapping Revolution That Sparked New Industries and Augmented Our Reality Bill Kilday HarperBusiness

368 pages Avaiable: 5/29/2018


Off the Clock Laura Vanderkam, the acclaimed author of What the Most Successful People Do Before Breakfast, isn’t like other time-management gurus. She’s interested in the emotional and psychological side of the 168 hours everyone has each week. Her core message is that people have more time than they think they do, and they can feel less stressed while getting more done. With the right habits, a person can live efficiently and effectively, and yet still see time as abundant. Vanderkam has packed this book with insights from busy yet relaxed professionals, including “time makeovers” of people who are learning how to use these tools. Off the Clock can inspire the rest of us to create lives that are not only productive, but enjoyable in the moment. Off the Clock: Feel Less Busy While Getting More Done Laura Vanderkam Portfolio

256 pages Avaiable: 5/29/2018



MAY 2018



Trevor Wilde: Bringing Teamwork from Field to Firm Wilde Wealth Management Group founded on principles learned on the gridiron THE WILDE WORLD • Wilde Wealth Management Group has four offices across Arizona: Scottsdale, Tempe, Payson and Glendale. • The firm has more than $750 million in assets under management and serves individuals and families as well as businesses across the Southwest. • The firm has been recognized by Forbes as among “The Most Dependable Wealth Managers in the Southwest.” • Active in the community through the firm’s Wilde for Arizona community outreach program, Wilde empowers his entire team to be active volunteers, fundraisers and neighborhood champions both together and on their own. • Recent community projects include work and fundraisers for Child Crisis Arizona, Sunshine Acres, Toys for Tots and Cell Phones for Soldiers. • Wilde has several affiliate partners, including Symons Wealth, Chris Smith Investments and DM Brown Wealth Management.

MAY 2018



by Alison Bailin Batz

Learning how to set both short- and long-term goals, as well as the importance of taking small steps toward said goals each day, are critical to achieving success both at work and in life outside the office. Wilde Wealth Management Group co-founder and managing director Trevor Wilde learned these lessons from a young age while playing football. “While not all goals were always realistic or immediately achievable, I learned that setbacks were only temporary and to always push forward,” says Wilde, who himself would push forward — literally — eventually earning a linebacker position on Horizon High School’s nationally ranked football team in Scottsdale in the mid-1990s. As his position’s name would imply, linebackers literally line up behind the defensive linemen. “What most people don’t realize is the amount of verbal and nonverbal communication required by the position to be effective, which is certainly just as important when leading a team,” Wilde says. Transitioning to the college game as a walk-on and earning a position at the University of Arizona gave him experience of a life lesson he brings to his business: “Don’t simply take no for an answer,” says Wilde, who would eventually red shirt then play two years for the Wildcats. To Wilde, every single practice and game would prepare him for the real world. “When I began in the financial industry in 2000, I worked for a big firm, but we focused narrowly,” he says. “Used to working on a team that always had an eye on the bigger picture, I found myself wanting to do more beyond simply working toward clients’ retirement goals.” During this time, Wilde also saw the critical role that understanding teamwork, taking calculated risks and having the ability to be coached played in the lives of everyone around him. So, in 2003, Wilde took a chance — as he’d done when he walked onto that UA football field — and partnered with his father to form Wilde Wealth Management Group. Their mission was two-fold: to offer customized investment and planning advice in a fiduciary capacity, and to offer clients expanded in-house service offerings from fellow independent experts

and specialists in the fields of legal, taxes, risk management, family services, real estate and insurance. Over the next 10 years, Wilde Wealth would earn accolades from Forbes, The Arizona Republic and more while bringing independent investment advisors, Certified Financial Planners, attorneys, mortgage specialists, an insurance team and even a Certified Public Accountant on board — and in house — as trusted partners. “The road has not been without new lessons, however, especially when it comes to building a business at the same time as building a family and home,” says Wilde. “Early on, the mistake that I made was feeling that every ounce of me had to be poured into the business and not having any sort of balance.” About five years ago, Wilde was pretty much at his wit’s end, busy running the various mechanics of the business while he and his wife welcomed four daughters. “I vividly remember running out of a meeting, trying to make a soccer game across town, while still having multiple conference calls left for the evening. I felt completely overwhelmed,” Wilde says. The next day, he sat down with his staff and completely restructured his family and work scheduling rules. “It took about seven months to fully restructure and implement formal rules for scheduling clients and new prospects — no more Sunday night meetings or regular meetings after 7 p.m. on any given weekday. We also had to redefine for our clients what the expectations would be.” According to Wilde, while there are still some nights when he’s working until 7 p.m., it’s more the exception than the rule. “Defining what balance means at work has allowed me to be more present both there and at home,” says Wilde. “It’s allowed me to be present with my kids. I’ve coached soccer for two of my daughters for the last three years. We have family night every Monday. I’m typically out of the office by 4 p.m.” And the business result? Now with four offices statewide, Wilde recently earned its biggest honor yet — being named to Barron’s list of top 1,200 advisors nationwide for a 10th year in a row, and among the top 10 in Arizona. Wilde Wealth Management Group

Trevor Wilde is ranked seventh in Arizona for 2018 on Barron’s annual rankings of the top advisors in the United States. Rankings are based on data provided by 4,000-plus of the nation’s most productive advisors; factors include assets under management, revenue produced for the firm, regulatory record, quality of practice and philanthropic work.


MAY 2018

Arizona Technology Council

‘Final Countdown to GDPR: What You Need to Know and Do Now (If You Haven’t Already)’ Thurs., May 10 | 11:30a – 1:00p On May 25, 2018, the European Union’s General Data Protection Regulation (GDPR) goes into effect. The Arizona Technology Council’s Law & Technology Committee will present a practical overview regarding the GDPR to help attendees review what new requirements may apply to their business, and what steps they need to take right now to comply. Those who are an international business have undoubtedly heard much about this new regulation and how it dramatically changes the landscape of data privacy protections. But even U.S. companies that do not have a presence in the European Union and don’t regularly conduct business there should still review the regulation’s potential application and impact. The scope of the GDPR, with its downstream implications on supply chains and vendors, is sweeping, and the potential penalties for violations are staggeringly high. Even those who don’t foresee an immediate impact on their business would be well-served to know the practical basics about this new regulation. Members: free; non-members: $15 Ryley Carlock & Applewhite One N. Central Ave., Phoenix

Greater Phoenix Chamber of Commerce

IMPACT Awards Luncheon Thurs., May 24 | 10:30a – 1:00p The Greater Phoenix Chamber of Commerce began presenting its IMPACT Awards in 1987 to honor the accomplishments of businesses and the impact they make on the Greater Phoenix business community. GPCC looks for companies with a strong footprint in the Valley that deserve special recognition. The award is presented to each of two businesses — one with 250 employees or fewer and one with more than 250 employees — in each of four categories. A single IMPACT Business of the Year recipient is selected from the category recipients in both business sectors. Awards and winners (250 employees or fewer, more than 250 employees): Arizona Advocate: A business promoting pro-growth, pro-job policies that foster a business-friendly climate, advocating for Arizona on a state, national and/or global level as a unique place for businesses and individuals to thrive. Winners this year are ISM Raceway and Arizona Public Service. Community Champion: A business that focuses on local community involvement, volunteering and truly making a positive impact in the community throughout their company. Winners this year are Delta Dental of Arizona and Salt River Project. Economic Driver: A business that contributes substantially to the economic vitality of the Greater Phoenix community by creating new jobs and opportunities, advancing a new industry or revitalizing a business sector or neighborhood. Winners this year are Plaza Companies and Phoenix Suns. Exceptional Innovator: A business that exemplifies the spirit of entrepreneurialism, identifying opportunities or unmet needs, taking risks, creating value and initiating change or developing innovative solutions. Winners this year are Equality Health and Phoenix Children’s Hospital. IMPACT Business of the Year: This additional category award honors a business that moves the local economy forward, giving back to the community, and possessing a corporate culture that enriches the lives of its employees. IMPACTful Nonprofit Award: Launched in 2016 as a companion to the Greater Phoenix Chamber of Commerce’s 30-year history of honoring businesses, this award highlights a nonprofit with a strong footprint in the Valley that serves a valuable mission and is deserving of special recognition. Members: $80; non-members: $95

Arizona Biltmore – McArthur Ballroom 2400 E. Missouri Ave., Phoenix

MAY 2018

Rick Weekly McCartney Podcast ® hosted by

OUR PODCAST Join us for interesting, informative and inspiring conversations with top local businesspeople in the Greater Phoenix area. Listen now at


Upcoming and notable 10th Annual Meet the Mayors Lunch June

Tues., June 5


Opportunity to learn what’s new and exciting in our local cities at this West Valley Women event. WorkWell: Addressing Behavioral Health to Improve Workplace Wellness June

Wed., June 6


Greater Phoenix Chamber of Commerce presents forum with guest speaker and roundtable discussion on ways to help reduce the amount of stress and identify key coping mechanisms relative to the workplace concerning employee mental health.

S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 MAY 2018 NOTABLE DATES 20 21 22 23 24 25 26 Sat., May 5 — Cinco de Mayo 27 28 29 30 31

Sun., May 13 — Mothers Day

Sat., May 19 — Armed Forces Day Mon., May 28 — Memorial Day


MAY 2018 Thurs., May 3

8:00a – 5:30p

Thurs., May 10

Cybersecurity Summit

‘You’re Growing: You Might Even Be Profitable; But How Valuable Is Your Business?’

Arizona Technology Council

Arizona Small Business Association

The Cybersecurity Summit provides actionable solutions while educating government and business leaders about the threats, vulnerabilities and consequences related to data security and privacy matters. Program includes panel discussions, keynote speakers and sponsor expo.

Scaling one’s business is not only a necessity in creating a profitable company but also essential when evolving into a valuable enterprise. Program addresses how to create value for one’s business, plan for short- and long-term needs, and determine one’s measurement and control thresholds.

Members: $50; non-members: $75 Scottsdale Hilton Resort and Villas


6333 N. Scottsdale Rd., Scottsdale

ASBA Business Education Center Fri., May 4

7:00a – 3:30p

Tues. – Wed., May 8 – 9

Gilbert Chamber of Commerce At Leadercast Live 2018, the speakers who take the stage will inspire attendees to lead themselves, so as to be a leader to their families, organizations and communities. This includes author and speaker Michael Hyatt, who will share his thoughts on personal productivity, authentic leadership, and building more margin into one’s life. Livestreamed via Simulcast. $99

All Day

5th Annual Arizona Food and Farm Forum Local First Arizona Foundation Program aims to influence the way Arizona feeds itself and does business locally. Both days: $99; one day: $59; individual event tickets also available The Farms at Agritopia

The Falls Event Center

4635 E. Baseline Rd., Gilbert

3000 E. Ray Rd., Gilbert


5 Sat., May 5

Thurs., May 3

11:30a – 1:30p

Annual Economic Outlook Luncheon Economic Club of Phoenix Dennis Hoffman, Lee McPheters, and Mark Stapp from ASU’s W. P. Carey School of Business will provide attendees their first look at the Greater Phoenix economy in 2019. $85

8 6:00p – Midnight

Scottsdale Area Chamber of Commerce – Past President’s Council

The longest-running event of its kind in the Valley, this formal gala honors the achievements of Arizona entrepreneurs, business leaders and individuals who have positively contributed to the state’s social progress and economic prosperity. Arizona Grand Resort & Spa

Event honors three individuals, a local company and a nonprofit organization that have contributed to the rich heritage of Scottsdale, dating back to its modern-day founding in 1888 by Army Chaplain Winfield Scott, that makes the City of Scottsdale one of the “best cities to live” in the nation.

8000 S. Arizona Grand Pkwy., Phoenix


The Scottsdale Resort at McCormick Ranch

Members: $300; non-members: $400

Signature Education Lunch

11:00a – 1:00p

North Phoenix Chamber of Commerce “Managing Your Business’ Online Reputation – A Precious and Powerful Asset,” presented by Lynn Ruby. Known for her edgy professionalism, Ruby has a realistic, results-oriented approach to marketing and is a straight shooter about what does and doesn’t work. Members: $20; non-members: $25; at the door: $30 cash Times Square Neighborhood Italian Restaurant 718 E. Union Hills Dr., Phoenix


6:00p – 9:00p

Arizona Hispanic Chamber of Commerce

7700 E. McCormick Pkwy., Scottsdale


Thurs., May 10

25th Anniversary Scottsdale’s History Hall of Fame Dinner

Tues., May 8


60th Annual Black & White Ball and Business Awards

The Scottsdale Resort at McCormick Ranch

MAY 2018

4600 E. Washington St., Phoenix

Leadercast Live 2018


8:00a – 11:30a

For more events, visit “Business Events” at

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

7700 E. McCormick Ranch Pkwy., Scottsdale

Fri., May 11

Thurs., May 24

8:00a – 3:45p

Employment Law Update

8:00a – 11:30a

‘Leveraging Digital Marketing to Grow Your Business’

Alliance of Arizona Nonprofits

Arizona Small Business Association

Employers Council’s annual Employment Law Update addresses the most significant developments of the past year while bringing HR professionals up to speed on important trends in human resources and employment law.

Attendees will learn the latest trends and critical fundamentals to navigate the complex landscape of digital marketing and sales enablement, filter through the fads and apply critical fundamentals, and identify key strategies for growth.

$199; on or before April 20: $149


The Phoenix Marriott Tempe at the Buttes

ASBA Business Education Center

2000 W. Westcourt Way, Tempe

4600 E. Washington St., Phoenix

Wed., May 16

Thurs., May 24

11:30a – 1:00p

8:00a – 1:00p

‘What You Need to Know if You Have Employees’

2018 Leadership Conference & Expo

Local First Arizona

Tempe Chamber of Commerce

Attendees will learn about Arizona employment laws, common mistakes businesses make that cost them money and opens them up to liability, what should be included in an employee manual, how to create a positive workplace environment, when/how/why of performance reviews and tips for low- or no-cost employee benefits. Lunch is included.

Event combines luncheon, trade show, training, keynote speakers, the graduation of the men and women in the 2018 Mentoring Program and the Business Woman of the Year ceremony.


Doubletree by Hilton Tempe

BMO Harris Bank

Members: $65; non-members: $95

4574 E. Cactus Rd., Phoenix

2100 S. Priest Dr., Tempe 11


Tues., May 15 16


11:00a – 1:00p

24 Thurs., May 17

8:00a – 11:30a

25th Annual Enterprise Business Awards Luncheon

‘Protecting Your Business from the Unexpected’

Arizona Small Business Association and U.S. Small Business Administration

Arizona Small Business Association

This event will bring together Arizona’s most elite industry officials to honor the accomplishments of individuals and organizations that have made great strides in their industry community activism and setting lending standards.

Attendees will learn how to navigate through common areas business owners overlook and learn how to create a personalized strategy to grow and scale their business, construct a plan by design rather than default, avoid common pitfalls on the road to success, and create strategies to align actions with goals.



Embassy Suites by Hilton Scottsdale Resort

ASBA Business Education Center

5001 N. Scottsdale Rd., Scottsdale

4600 E. Washington St., Phoenix Thurs., May 17


Tues., May 29

7:30a – 9:00a

Noon – 1:00p

Small Business Master Series with HRPivot

Ask an Expert

Greater Phoenix Chamber of Commerce

Chandler Chamber of Commerce

Whatever the reason, an up-to-date employee handbook delivers value to both one’s organization and one’s employees. Taylor Bell, general counsel of HRPivot, will walk attendees through what an employee handbook is, offer tips on how to write one and give them an idea of what they should or should not include.

Mark Kirstein of Sandler Sales Training will present “Insight into the dos and don’ts of closing your sale.

Members: free; non-members: $75 National Bank of Arizona

6001 N. 24th St., Phoenix

Members: $5; non-members: $10 Chandler Chamber Office 25 S. Arizona Pl., Chandler

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



2018 Volvo XC90 Commercial MAGAZINE

MAY 2018


Real Estate: Spotlight on the Best




Commercial Real Is the new tax

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to Phoenix investors? Build Strength

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Starting Up in Capitalism




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Franchising as Strategy




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2018 VOLVO XC90 MSRP: $46,900 City: 22 mpg Hwy: 25 mpg

The XC90 from Volvo is considered to be a real win for the car company that, over the last few years, has lost some of its famous market share it held through accolades for years on safety —and reliability. The car manufacturer has been innovating and is now back and “safer” than ever with its multiple innovations for the future of automobile safety. The XC90 is the SUV that everyone is taking about because of its adaptive airbag inflation, steering headlamps, automatic breaking, Blind Spot Information System™, City Safety™ collision avoidance technology and so much more — all standard — demonstrating that Volvo truly is the safest car brand on the road. This utility vehicle is just that — a utility — before anything else. The performance begins with the 250-horsepower, 258 lb. ft. of torque, Direct-Injected Turbocharged Engine, and eight-speed Geartronic™ automatic with Start/Stop & Adaptive Shift technologies. Using low friction engine technology, innovative engine management system, common rail direct fuel injection and advanced turbo technology, this engine maximizes power and efficiency. For everyday drivability, the turbo provides particularly good response at low to medium engine speeds.

The wood panel trim is cut from birch trees grown in Sweden, Norway and Finland, with a unique flame-shaped grain pattern created by natural conditions. Each panel’s grain runs at 90 degrees to its shape and has a glossy clear coat for a contemporary look that is complemented by an aluminum sheet with a diagonal, brushed finish that creates texture with real luster and shine through the cabin. When the sun shines, the finish glitters. Up to seven people travel comfortably and enjoy an excellent view in individual, ergonomically designed seats. All seats adjust easily to suit personal preferences, and in the third row, two passengers ride comfortably with ample legroom. The premium Sound by Bowers & Wilkins brings exceptional clarity and realism to the music, wherever the passenger is seated. Seamlessly integrated into the cabin architecture of this Volvo, the 12-channel amplifier, an astonishing 1400-watt output and 19 separate high-end speakers — including a tweeter-on-top center speaker that minimizes acoustic reflection from the windshield — will surround passengers with a pristine sound that feels more spacious and true to life than ever before in a Volvo. —Mike Hunter Volvo

0-60 MPH: 5.3 sec. Transmission: 8-speed automatic

Defense Alert According to data from the National Crime Survey and

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lifetime. Workplaces have barriers in place to keep employees safe on the job, but out in the field or during personal time threats become more of a factor. Wearing walking to a vehicle alone or exercising solo, or keeping it nearby at home could save one’s life. The D.A.D. includes a blinding flashlight, military-grade pepper spray and a silent Bluetooth GPS beacon that alerts the user’s emergency contact list, as well as everyone within a mile who has downloaded the TigerLight app that the person needs help. —Gloria Marcott, police officer,

MAY 2018



1959 – Three-Point Safety Belt There can be few men on the planet who have saved as many lives as Volvo engineer Nils Bohlin. He introduced three-point seatbelts into the series production PV544. Since then, it’s estimated that more than one million lives have been saved as a result of Volvo Cars waiving its patent rights so everybody could benefit.

Photos courtesy ofVolvo (top and left), TigerLight (bootom)

the TigerLight Defense Alert Device on one’s hand while


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Morning Squeeze: Relish the Retro

Poached eggs and smoked ham on an English muffin topped with hollandaise $10.25

SQUEEZE BURGER Bacon, tomato and onions, topped with fried egg and cheddar cheese

Having a great place to sit is only the start. The menu is built on fresh, organic and locally sourced ingredients. There’s a variety of eggs benedict dishes and specialty pancakes and waffles. Enjoy a side of ham — no anemic slice but a nice ham steak. “Lighter fare” includes the Wild Berry Parfait, with non-fat Greek yogurt, fresh berries and granola. Among health-conscious alternatives are the Pitaya Fruit Bowl, which combines shaved coconut, pomegranate seeds, pumpkin seeds, granola and sliced bananas, and the Belfer Fit Bowl, made with brown rice, quinoa, cilantro, scallions and egg whites. Specialty coffee beverages are offered, as are protein shakes and all-natural fruit smoothies. The lunch menu runs from burgers to salads and includes specialty sandwiches such as the Montecristo Classic, made with turkey, ham, melted cheddar and Swiss cheese, battered and fried, and served with a side of grape jelly dipping sauce. Morning Squeeze 690 S. Mill Ave., Tempe (480) 264-4688 •

Fishing for a Compliment Some days can make a businessperson just want to hit the bar. If that need means a sushi bar, here are some In Business Magazine picks:


MAY 2018



AJ’s Fine Foods


Kona Grill

AJ’s lunch café includes made-to-order

Hand-crafted sushi is available inside or on

Menu offers extensive selection of fresh

sushi with either white or brown rice.

the patio.

sushi and other Oriental-inspired dishes.

Multiple locations

2650 E. Camelback Rd., Phoenix

Five local locations in Chandler, Gilbert,

(602) 957-9700

Phoenix, Scottsdale

Morning Squeeze owner Todd Belfer is also a managing partner of Canal Partners, a venture capitalist firm in Scottsdale, and an adjunct professor at the W. P Carey School of Business at Arizona State University.

Photos courtesy of Morning Squeeze (top, far left), AJ’s Fine Foods, Hillstone, Kona Grill (bottom, l to r)


Some meetings call for a power breakfast, and Morning Squeeze has that covered as well as the lunch-time option — especially at the new location in Tempe, where tables can easily hold portfolios or notebooks along with the food. There is also plenty of solo dining at the indoor-outdoor bar. The patio wraps the south and west sides, and this time of year even the inside is almost outside thanks to the restaurant’s open design. The Mill Avenue address may be misleading; Morning Squeeze occupies the off-Mill side of the building and faces the AMC Theatre plaza, situated — just like the original location in Old Town Scottsdale on Scottsdale Road — for prime people-watching. And it’s mere blocks from what’s becoming a major business district along Rio Salado. With 1970s influences, décor emphasizes bright colors in the booths and chairs and flowers on the tables, set off against the walls of weathered brick, under exposed high ceilings. Owner Todd Belfer says he plans to add a state-ofthe-art DJ booth that will play host to some of the West Coast’s top touring DJs.



Let’s Build a New Table Together The Alliance of Arizona Nonprofits is an action-oriented group of partners across Arizona — both nonprofits and those in the community who support them — dedicated to uniting, strengthening and advancing Arizona’s nonprofit sector. The Alliance envisions an Arizona where all nonprofits are valued, empowered and thriving.


p. 2 Tax Cuts and Jobs Act of 2017 Impact on Charitable Giving p. 4 2018 Arizona Gives Day Results p. 5 On the Board and in the Spotlight - Rhette Baughman p. 6 Workforce Development through National Service Programs

Ah, let’s take a moment to envision the mythical “table” we all refer to and the elusive “seat” that we are never invited to fill. Have you ever caught yourself saying, “Well, if we just had a seat at the table we could …”? Admittedly, I’ve said it often when thinking about the work we need to do to support the incredible work of nonprofits in Arizona. I’ve even joked with colleagues, “If you aren’t at the table, you’re on the menu!” But, when you really think about it, this messaging can be “reactive” or, dare I say, even “defensive” in nature. This language can make you feel left out, less important or disconnected; none of which are normally intentional or true. I truly believe that in order for us to collectively build and grow an Arizona that we are all truly proud to call home, we have to come together to find solutions to common problems. We have to have all voices represented if we desire to be innovative, equitable and strong. Nonprofits, businesses, government agencies, educators, policy makers … it takes all of us to make Arizona work and to take care of our communities. Serving the nonprofit community is an incredible honor, but what makes it truly rewarding is to help make the critical connections needed to help these nonprofits fulfill their missions. We can’t do it alone, but we also can’t wait to be invited to the conversation. So I say, let’s throw the old table and seats away and let’s work together to build a new table. Let’s create a spirit of collaboration and inclusion that we have yet to see in our state. Let’s promote and engage amazing leaders in all of our sectors, and let’s highlight best practices that can cross over different segments. Let’s build an essential partnership between those doing critical work to strengthen our communities. Everyone already has a seat at this new table, we just have to fill it. I’ll see you around the table soon.

p. 8 Building Better Boards Leadership that Matters

Kristen Merrifield, CAE, CNAP Chief Executive Officer Alliance of Arizona Nonprofits



Tax Cuts and Jobs Act of 2017 Impact on Charitable Giving Arizona’s charitable community may lose approximately $170 million in giving due to the federal tax law changes. As business owners and professionals who engage with the nonprofit sector as board members, sponsors and donors, it is important to consider the impact this will have on nonprofits you support. It is also critical that we continue to make our much-needed financial contributions to ensure nonprofits are able to keep serving our communities and our most vulnerable populations. As Arizona policymakers consider changes to conform the state tax code to the new federal tax law, we urge you to encourage them to preserve and incentivize charitable giving in Arizona.


WWW.ARIZONANONPROFITS.ORG Background The federal Tax Cuts and Jobs Act of 2017 preserves the charitable deduction, a 100-year-old provision that encourages individuals to give away more of their income to help people in need. Unfortunately, the new tax law does not preserve the full scope and value of the charitable deduction. Although the law maintains the charitable deduction for taxpayers who will continue to itemize, the charitable deduction will NO LONGER be available to 95 percent of all taxpayers because of the expansion of the standard deduction.

all Arizona returns filed) claimed the charitable deduction in 2015, accounting for $3.4 billion in contributions, the most recently available IRS giving data show. A 5 percent loss resulting from tax reform would mean $170 million less to fund private food banks, homeless or domestic violence shelters, childcare or job training. Why it is important to Support Arizona’s Vibrant Nonprofit Sector • Arizona’s nonprofit sector generated more than 8 percent (more than $22.4 billion) of the state’s Gross State Product in 2014, positioning its contribution on a par with the state’s entire retail sector. • Nonprofits are Arizona’s fifth-largest non-government employer. • Nonprofits directly and indirectly generated approximately $2.1 billion — 9.5 percent — in state and local taxation in 2014. Source: Arizona Nonprofits: Economic Power, Positive Impact, L. William Seidman

That means: • More than 30 million taxpayers will no longer have the charitable deduction available to them. • Charitable contributions will decline by $13 billion or more per year, a 5 percent decrease in overall giving. Arizona Impact: In Arizona, 701,330 Arizona taxpayers (24.1 percent of

Research Institute at the W. P. Carey School of Business at Arizona State University We continue to urge Congress to make the charitable deduction available to all taxpayers. A 2017 study by Indiana University Lilly Family School of Philanthropy found that making the charitable deduction available to all taxpayers could increase annual giving by up to $4.8 billion. Companion bills introduced in 2017, HR 3988 and S 2123 would establish an “above-the-line” charitable deduction for non-itemizers. Protect the incentive to give in Arizona. As state policymakers consider conforming changes to Arizona’s tax code, we encourage you to urge them to weigh carefully the impact of any modifications on charitable giving. We stand ready to work with Governor Ducey, the Arizona Department of Revenue and lawmakers to protect charitable giving and ensure our vibrant nonprofit sector can continue to serve people in need.


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BOARD CHAIR: Kelly McCullough R Kids/R Entertainment SECRETARY: Ellis Carter Caritas Law Group, P.C.

Arizona Gives Day 2018 Results Are In! by Jennifer Purcell, Director of Community Engagement, Alliance of Arizona Nonprofits Arizona Gives Day is a grassroots, statewide day of giving that invited Arizonans to donate to their favorite causes during a 24-hour period on April 3, 2018. This year’s Gives Day raised more than $2.5 million for nonprofits across our state. This amount is likely to grow, as the total is still being tallied at the time of this writing, to include matching grants and other offline donations. Hosted by the Alliance of Arizona Nonprofits and Arizona Grantmakers Forum and presented by FirstBank, Arizona Gives Day has raised more than $12.6 million for Arizona nonprofits since its founding in 2013. We had a record-breaking number of nonprofits participate this year, with more than 1,050 organizations registered. Arizonans from across our state donated on April 3, helping a variety of nonprofits of every size to win additional prize money. We have now given away more than $1 million dollars in prizes since 2013. Participating nonprofits included large and small organizations focused on animal welfare, the arts, child welfare, human rights and more. This year, there were 17,640 total donations to 902 organizations.


VICE CHAIR: Sonia Perillo Audubon Arizona with the National Audubon Society TREASURER: Ron Stearns CliftonLarsonAllen Shaylinn Aleman Arizona College Access Network (AzCAN) Mario Aniles Housing Authority of Maricopa County

During the 24-hour day of giving, nonprofits encouraged their supporters to donate on to help them win prize money based on fundraising success. During eight “Power Hours,” nonprofits competed for the largest number of total donors giving at or above various dollar amounts. A total of 74 prizes were given away for accomplishments such as most dollars raised and most unique donors, as well several random prize drawings. You can view all the winners at Thanks to higher participation among nonprofits and donors across our state, Arizona Gives Day was a resounding success not only in the amount raised, but in providing much-needed funding and introducing new donors to nonprofits statewide. Registration is now open for the 2019 Arizona Gives day at

Pam Gaber Gabriel’s Angels Karl Gentles Back to School Clothing Drive Len Gutman American Heart Association/American Stroke Association Donnette Hermes Ameliorate, LLC Kristen Merrifield, CAE Alliance of Arizona Nonprofits Yvonne Moss Caritas Law Group, P.C. Amy Schwabenlender Valley of the Sun United Way Glenn Wike Arizona Community Foundation 


On The Board and In The Spotlight

Rhette Baughman Director, Marketing & Communication; National Speakers Association How long have you served on this board? One and half years

Name: Rhette Baughman Company: National Speakers Association (NSA) Job Title: Director, Marketing & Communication Board: YNPN Phoenix (Young Nonprofit Professionals Network) Board Title: Vice President

What drew you to this organization? I was drawn to YNPN Phoenix because of their impact on young professionals’ lives and their desire to affect change in the social sector. What would you say is one of the biggest challenges for a young professional serving on a nonprofit board?  Lack of experience. You have to start somewhere, so finding a nonprofit with whose values you align and who is looking for your skillset is the first hurdle. Then, once you land a position, it’s wading through all the standard board procedures and processes with which you’re simply not familiar. Organizations like the Alliance offer tremendous training to help prepare young professionals for board service. Then you have to jump in, acknowledge you will have areas of ignorance, identify and bring your strengths to the table, and — I can’t stress this one enough — follow through on your commitments. Whether a governance or working board, the nonprofit is relying on you to show up and deliver. How did you overcome that challenge? I had a few bad board experiences with other organizations because I didn’t prepare myself with research and training. I had to learn all the basics, plus get in the groove of delivering while not overcommitting. I overcame this by taking ownership of my professional development and board understanding. Doing simple things like researching how Robert’s Rules of Order work, how different types of boards operate, and familiarizing yourself with the industry you’re serving (if you happen to not be familiar already) will go a long way for the organization, staff and other board members.

What has been the biggest opportunity from this experience? Honestly, the biggest opportunity was meeting other incredible people in the business community who had similar interests and passions as me. I’ve created some wonderful relationships and friendships that have doubled as a benefit to my current company and other organizations I support. What do you wish you had known before joining the board?  I wish I had taken the time to research and have conversations with other board members to understand the role I needed to fill to be most valuable and the skills that would be most beneficial. What do you feel your greatest accomplishment has been during your time on the board?  We’ve accomplished so many great things as a team, such as setting a new, sustainable strategic direction and implementing replicable processes and procedures. However, my personal accomplishment has been in my own professional development. The skills I’m learning by serving on the board have had a positive impact on my role with NSA. What would you say to another young professional considering joining a nonprofit board?  Take ownership. Whether that’s seeking out a nonprofit and seeing if they have any gaps on their board for which your skillset would be a match, or volunteering with a few organizations by serving on committees to get to know them better. From seeking to serving, you’ll bring greater value and have better success when you own your actions and contributions.



Workforce Development through National Service Programs by Robin Hanson, Program Manager, AmeriCorps VISTA, Alliance of Arizona Nonprofits An educated and skilled workforce is one of the top factors in determining business attraction and expansion decisions. We can think of the usual


places to look for these candidates: college recruiting, job boards, career fairs. However, have you considered a VISTA alumnus to fill that next job?

Let’s take a step back. First, what is a VISTA? VISTA (Volunteers in Service to America) is part of the Corporation of National and Community Service. Most

WWW.ARIZONANONPROFITS.ORG commonly thought of as the “domestic Peace Corps,” the AmeriCorps VISTA is a grant in human capital with a focus to start, strengthen or expand programs or services. Members serve a oneyear term in a nonprofit, education program or government, and build the capacity and sustainability of the project for the organization. Next, how does this year of service benefit an employer in the business sector? According to the Voices for National Service ( here is how National Service leads to careers: • National service helps young people better define their career pathways and assists them in moving to the next step. Forty-three percent of AmeriCorps alumni state that their service was aligned with their career path, and 79 percent say their service was a defining professional experience. • National service helps young people develop into leaders, problem solvers

and more active citizens. Nine out of ten AmeriCorps alumni reported that their service experience improved their ability to solve problems. Additionally, eight out of ten alums say that if they were confronted with a community issue, they could confidently develop a plan to address it and get others to care. • National service is a powerful workforce development tool that has the power to lead to careers by providing young people with tangible skills — especially careerspecific skills for self-management and interacting with others. • On average, nine out of ten AmeriCorps alumni agreed or strongly agreed that they could solve difficult problems, persist when opposed, accomplish goals, handle unexpected events and unforeseen situations, remain calm, cope with difficulties, and identify multiple solutions. Alumni rated their current skills as higher than at

pre-service, with the greatest gains being in their abilities to deal with unexpected events and unforeseen situations. A recent LinkedIn survey of hiring managers revealed that 59 percent believe these highly valued soft skills are difficult to find. The Alliance VISTA team has VISTA members who are recent college graduates (many in their first job) who have spent a year doing projects around social media, marketing, recruiting and other hard skills that employers are looking for in potential new hires. We provide personal and professional development for the members, helping prepare them for their next job. These are your future problem solvers and idea generators. They represent the next generation of leaders in your organization. When you need to hire, consider reaching out to the Alliance for a VISTA alumnus. It may be one of the best recruiting tools you didn’t even know existed.


An online registry for equipping High School clubs on their path to graduation







Building Better Boards – Leadership that Matters

ALLIANCE OF ARIZONA NONPROFITS STAFF Kristen Merrifield, CAE, CNAP Chief Executive Officer

by Bruce Weber, President/CEO Weber Group

The role of the nonprofit governing board is vital to the long-term success of any nonprofit organization. The board is the critical lynchpin in creating a successful partnership with the CEO/ED that works toward long-term organizational sustainability. According to BoardSource, an innovator in governance thought leadership, exceptional boards add significant value to their organizations, making discernable differences in their advance on mission. Therefore, it is vital that board members realize the important aspect of their board service and act accordingly. Creating a brain trust that combines the experience of the members of the board along with the nonprofit leadership enables creativity and meaningful innovation. How does one get to this place of board nirvana? It begins with a mindful approach to building your governance team. First, recruit for purpose, not position. It sounds simple, but it is easy to get caught up in the trap of looking for the “heavy hitter,” the big name that can often write big checks. While I am a supporter of recognizing the financial impact that a wealthy contributor can make, there are things to consider other than having them occupy a board seat. As I previously mentioned, it is helpful to create a board partnership with the CEO, but that can only be accomplished if board members are present and accounted for. That can be challenging for many successful “heavy hitters” as they often have schedules that may not allow for regular participation as a member of the board. Recruiting for purpose is the careful identification of how a prospective board member can make a meaningful impact toward the mission and vision of the organization. Second is ensuring that board members understand their role versus the role of the staff. Typically, a board that micromanages is one that is looking for their value, something that

(602) 279-2966 x14


Jennifer Blair Director of Membership (602) 279-2966 x20 Robin Hanson Program Manager – AmeriCorps VISTA

they can impact as individuals. Often, when left up to their own accord, board members will seek value and probe for engagement. Sometimes that results in focus on areas that minimize impact, while creating burden for the staff. That can be avoided by clear articulation of the board member’s role, impact on the organization (job), and how to engage in a meaningful way. Finally, measure and recognize the board for its work in furthering the mission. Identify, along with the staff, the critical success factors facing the organization and how to engage meaningfully to address them. Construct an organization scorecard that is reviewed regularly, providing the opportunity for the board to look at progress and make adjustments accordingly, at both people and resources. Taking time upfront to thoughtfully establish the participants, clearly defining the role and personal impact, and measuring progress and success are key ingredients to long-term board impact.

(602) 279-2966 x19 Jacki Presnal Office Manager & Executive Coordinator (602) 279-2966 x10 Jennifer Purcell Director of Community Engagement (602) 279-2966 x17 Angel Cancino AmeriCorps VISTA Program Coordinator (602) 279-2966 x22 Molly Wagge AmeriCorps VISTA Leader (602) 279-2966 x18

Bruce Weber is president and CEO of Weber Group, providing more than 20 years of global experience at developing business solutions that drive social-sector organizations toward transformational change.

Alliance of Arizona Nonprofits 360 E. Coronado Road, Suite 120 Phoenix, AZ 85004 Phone: (602) 279-2966



Global Chamber® Events


May 5 Global Career Roundtable 11am in Scottsdale

May 10 Homerun Networking, D’backs vs. Nationals 6pm in Phoenix

Spotlight Event May 15 NAFTA Update for Your Business 8am in Scottsdale

May 17 8am in Phoenix

Get Your Business Ready for GDPR in Europe

Spotlight Event May 24 5:30pm in Phoenix

Welcome to Phoenix for Global Companies May 30 3:30pm at SkySong in Scottsdale

Global Chamber Phoenix Advisory Board

Inside this Section

2 3  4  5  6  7  8 

Global Trade Is Changing Phoenix Metro

Update Your Business on NAFTA It’s Time to Get Involved with Global Business

American Express Offers Foreign Exchange Selecting a Distributor in a Foreign Country

Spotlight Event: Next Up – ‘Welcome to Phoenix’ 5/24 Connect to Global Career and Consulting Projects

Tips to Grow across Metros and Borders by Cesar Trabanco, Manager of Business Services at Global Chamber®

Global Chamber® makes it easier for our members to connect to opportunities across metro areas and borders. In today’s busy world where everyone is running a mile a minute, you need something to stand out from the crowd to get noticed: an amazing technology, a world-class product and/or a little warmth. With one, two or three of these, you’ll more easily reach new clients, new partners and new resources. We leverage our global network to get our members’ businesses to the forefront with prospects. The process starts with our asking questions to understand more about each member, and then using that information to connect them in a variety of ways to people who will make their business journey a little easier. Those warm intros are often folks we know well who should be a good fit. Our members appreciate the thought behind introductions and the warm approach we take to make it easier for everyone. We’re all busy; none of us can afford to waste time on cold calling or connecting to people who are not in our target. We need to be efficient and effective. Global Chamber can’t guarantee that every warm introduction will result in a sale, but we can say that each one will likely open a door or two to opportunities. And so, adding a little warmth helps make that a more successful process. We do that in five ways. 1) We ask questions and understand. It all begins here. We are able to help members effectively because we understand their needs and work to address them. We understand because we ask. 2) We make warm introductions for our members. When we know who our members need to meet, we make direct introductions to people we know. We frame those introductions

in a way that has value for both people being introduced. How effective is our process? We’re getting better every day, and we have members who are paying extra fees to get additional introductions — 3, 5, 10 or more introductions per month. We’re built to make warm intros across metros. “I went back over the last couple years and it’s clear that our growth can be traced to more clients coming from Global Chamber both directly and through other members than any other source. We are pleased to be members because the ROI is there.” —Kevin Hull, Sr. Vice President at BMO Harris Bank 3) We offer our own events to members and non-members. We do events regularly so that members can connect up with others who are interested to grow. At events, our Global Chamber team will work the room to identify connections for our members. In a big room, it’s hard to connect with just the right people, and we work at making that process optimal through our own efforts and technology. 4) We collaborate on events consistent with the interests of our global tribe. We’re the only organization in the world with the mission to grow business from anywhere to everywh ere while collaborating with every organization. As those collaborating organizations have events, we co-market and participate to expand success — like our collaboration with The Phoenicians here in Phoenix. 5) We count on the talent and connections of the global tribe. Above all else, the global tribe is amazing. They are talented, experienced and unstoppable. We thank everyone who is part of our world, making the business world a little better.


Global Trade Is Changing Phoenix Metro by Doug Bruhnke, CEO and Founder of Global Chamber®

With 85 percent of business growth happening outside of the U.S., and more than 99.7 percent of new business being created outside of Arizona, more and more companies and communities are accessing new global opportunities. That’s why we’re here — helping members of Global Chamber® access new opportunities. Last month, Jeanine Jerkovic, director of Economic Development for the City of Surprise, delivered the International Report Card for Metro Phoenix as part of the International State of the Metro presented by Global Chamber Phoenix. Jerkovic shared mostly good news! Regional businesses are increasingly taking advantage of global business opportunities and growing. It wasn’t always that way, as Arizona historically has made slower progress with international trade compared to most coastal states and other regions, including Colorado and Illinois. Those states, along with Florida, New York and California, have higher exports per capita and foreign direct investment (FDI). Exports and FDI support approximately 190,000 jobs in Arizona, and, if the state could deliver global business like those states, another 100,000 jobs would be created. That’s the benefit of looking outside our borders for opportunity! Many regional businesses have seen the opportunity of tapping into the global pool, and they’re bringing money back to Metro Phoenix in the way of export dollars, foreign direct investment and tourism. Jerkovic’s overall report card of B+ for Arizona was an improvement from four years ago when the region was, at best, a B-. For example, regional export success stories that are creating jobs include BioHumaNetics, growing aggressively in Latin America; Wisdom Natural Brands, a recent winner of a national U.S. export award; and GlobalMed Telemedicine, gaining significant national and international contracts in 2017. Exports from the metro have grown to $12.8 billion per year, with top export markets being


Global Chamber®

Mexico, Canada, China, the UK, Germany, Singapore, Japan and Thailand. Also, regional foreign direct investment successes are on the rise. These include IRIS USA from Japan in Surprise, and Scientex from Malaysia and Zummit Plastics from Mexico in Phoenix. These are significant investments that found their way to Arizona. The region still has a long way to go, but we are lucky to have many talented business leaders here who are blazing the trail to grow exports and encourage investment. Global Chamber members are involved with global business through exporting, importing, tourism and investment. For instance, it is noted that some recent notable commercial real estate transactions have a global component. “Like the 618,000-square-foot deal signed by UPS as a distribution hub for e-commerce,” says Rod Beach, principal at Cresa Phoenix. “In addition, McKesson moved from Old Town Scottsdale to the 101 in Scottsdale, increasing their presence in the local market, driven by global growth.” The City of Phoenix has grown to almost 1.7 million residents, ranking as the 5th most populous city in the United States. As more business continues to expand and relocate to Phoenix, industry has become more diverse. “Commercial space vacancies continue to decline, pushing rental rates up to record market highs,” says Renee Ervanian, senior vice president at Heiple Travers Realty. “Indepth market knowledge and creativity are now required when a business is looking to relocate and secure a new location.” Some of the metro cities, especially Surprise and Phoenix, and to some extent Tempe, have global programs in place to increase exposure to, and success with, foreign investors. Activities like Jeanine Jerkovic’s recent meetings with Global Chamber members from other countries and her team’s active work in Toronto, bode well for future growth and success.

These programs often create investment that replaces more traditional commercial real estate. “More medical offices, call centers and other firms are moving to retail centers to take advantage of their abundant parking and easy access,” says Paul Blum of WestUSA Commercial Real Estate. “Forward-thinking developers and contractors will benefit from repurposing shopping centers and industrial buildings to the new economic imperatives.” The recent announcement of Bill Gates’ development or the new City of Belmont near Buckeye will have major global and local implications as well. “The impact of Belmont on the Arizona economy will be tremendous,” says Anita Verma-Lallian, director at Vermaland. “The region will benefit from the growth of Belmont. Additionally, not only does it identify Arizona as a cutting-edge place to build a city of the future, it highlights the natural characteristics Arizona has to support a cutting-edge city that will revolutionize future developments.” Tapping into global opportunities drives success locally. According to NAR, Infographic Report 2017, “US Home Sales to Foreigners Skyrocket,” Arizona is highlighted as one of the top five states for foreign buyers, along with Florida, Texas, California and New Jersey, with total sales of $153 billion. “That is a 49-percent increase from the year before from top nations, such as China, Canada, UK, Mexico and India,” says Maha Kapageridis, Realtor® with Berkshire Hathaway Homeservices Arizona, working with foreign investors. Are you interested to learn more about the global business opportunities?

Update Your Business on NAFTA by Doug Bruhnke, CEO and Founder of Global Chamber®

Global Chamber® member Squire Patton Boggs recently hosted a meeting with two key congressional leaders on trade. Several of our members were able to attend. We met with U.S. House Ways & Means Committee Chairman Kevin Brady (Texas) and Rep. David Schweiker (AZ). The good news was that both men were very positive about a renegotiated NAFTA passing in 2018. Both men also were positive about TPP, although they could not commit to whether the U.S. will join this year. Chairman Brady was also positive about a trade deal being done this year between the U.S. and South Korea. Thank you to the team at Squire Patton Boggs for the opportunity, and to attendees, who included Joel Barthelemy of GlobalMed, Dr. Jeff Trent of T-Gen and Jim Ratcliff of Rowpar Pharmaceuticals.

We encourage both members and nonmember to attend our next important event on trade rules May 15th: “NAFTA Update for

Your Business.” Check out our Phoenix event calendar for more.


It’s Time to Get Involved with Global Business by Doug Bruhnke, CEO and Founder of Global Chamber®

Most business opportunities are somewhere else, not in your town, state or even country! Metro Phoenix, for instance, represents less than 0.3 percent of global business activity. More than 85 percent of new business opportunities are outside the U.S. And yet fewer than 1 percent of companies are going after that 85 percent, because fewer than 1 percent of companies export and, of those, more than half export to only one country. So, 99 out of 100 companies are going after only 15 percent of opportunities. Does that make sense? It’s a good question. It can be a lot easier to sell next door. We get that. Doing business in another metro in your own country or in another metro in another country can be tricky. You need to know more — logistics, legal, banking, marketing, plus partners and customers. How do you best reach them? How can you trust that you’ll find new customers in new markets, and get paid? That’s the fun of cross-metro, cross-border and global business. Yes, I said fun. It’s fun when you’ve got a team that understands different


Global Chamber®

cultures, regulations and situations, so you can prioritize markets, reach them and sell to them. That’s why we’re here — to help you grow within your country to other metro areas, and across borders to other metros. Global Chamber® is the only organization in the world with hundreds of locations and a mission to help executives grow their business from anywhere to everywhere, while collaborating with organizations in every metro area. We’ve created our global growth tribe for you. Reach out for warm connections to bridge the gap between metros. Those of you reading this in the global tribe understand — you wouldn’t have it any other way. And you’re smart enough to know that you need help. No one should go global alone. But you need bridges to partners, clients and resources, to optimize your success. That’s what we do. You know that if you can successfully sell to different markets your risk is actually reduced because your business will benefit from the portfolio effect. As one market slows, another speeds up, and you’re now insulated from

the impact of the economy of one metro, region or country. Most SMEs, though, don’t have the resources needed to go after foreign markets without more than a little risk. That’s a big issue. So, we bridge the gaps to reduce the risk. The world has never been so attractive, despite the noise you might hear from politicians and populists. Global markets keep growing. If you and your company don’t participate, someone else’s will. So, what does an SME do? Better get going global, quick. Chances are, you’re under-invested globally. Don’t wait, and don’t listen to the noise. Global Chamber helps you grow your business.

American Express Offers Foreign Exchange by Doug Bruhnke, CEO and Founder of Global Chamber®

Membership in Global Chamber® has its privileges. We surround members with all the resources they need to be successful to grow across metros and borders. Succeeding the first time without failure is critical to every business, especially SMEs. We encourage our members to connect through our regional or global HQs to other members through warm connections, like to American Express. With more than 150 years in foreign exchange, American Express helps businesses in many industries with their international payments and foreign exchange needs, mitigating risk, saving money and elevating success overall. American Express FX International Payments offers foreign supplier payment solutions that can help your business succeed in foreign markets. Their services include: • No set-up or account maintenance fees

• In-depth and flexible reporting services to help manage your business • Foreign exchange (forex) in 110+ countries, 80+ currencies • Ability to upload forex payment files, making it easy to send foreign exchange payments to numerous recipients • Competitive exchange rates • Phone and email customer support, 24 hours a day, Monday through Friday • Receive Membership Rewards® points for eligible forex transactions if enrolled Regarding foreign exchange payments, American Express FX International Payments allows member businesses to receive incoming forex payments simply and securely from select foreign markets through its foreign exchange service. We’re honored to have world-class exporters,

importers, investors, service providers and collaborators worldwide, who are dedicated to growth. Whether it’s finding short-cuts, reducing mistakes or accelerating success, we are dedicated to helping members succeed. About American Express Foreign Exchange Services With more than 150 years in foreign exchange, American Express can help businesses in many industries with their international payments and foreign exchange needs.


Global Chamber®

Global Chamber Phoenix and Tucson Global Chamber® is a growing and collaborating community of CEOs, executives and leaders in 525 metro regions around the world taking on global business and advancing growth and success. Contact us at or (480) 595-5000. Guillaume Kety, GM/founder of Afrika Forward (left)

Selecting a Distributor in a Foreign Country by Doug Taekens, Pace Solutions International

Going with the big, established distributor isn’t always the best strategy. Relationships matter, but not always like you think. Jokari, a U.S. manufacturer of kitchen and household gadgets along with storage and organization products, utilized a large, established distributor in Japan and enjoyed some success. When three key executives of the distributor decided to leave and start their own distribution company, there was a tough decision to make. At the time, I was acting president and CEO at Jokari/U.S., Inc., and so I was right in the flow of the decision. Staying with the large, established distributor was the safe thing to do. Or we could go with the startup distributor created with the three executives, Aozora. That was a riskier choice! We had worked closely with the three executives at the large distributor, and had a good relationship with them, but going forward they would not have the resources at their disposal to get, and keep, distribution at key retailers. We decided to go with the new distributor based on their collective knowledge of our products, our personal relationship with them, and our belief in their ability to keep our current distribution in place and expand our distribution to additional retailers. After notifying our existing distributor of our


Global Chamber®

decision, the chairman promptly paid us a visit in the U.S. to persuade us we were making a mistake. Despite this pressure, we followed through on our commitment to Aozora. From then on, we enjoyed many years of a successful partnership with Aozora, and we watched our distribution grow in the Japanese market. This somewhat risky and difficult decision ended up working out. The process and result are testimony to the importance of developing personal relationships with your international partners. About Pace Solutions International Pace Solutions International has more than 30 years of experience developing global distribution networks for a variety of consumer products. PSI helps companies grow their top and bottom line revenue by taking their products to international markets. Together with its clients, PSI develops an export plan determining which products and which countries offer the greatest opportunities to generate quick results. PSI covers key retail channels, including food, drug, mass, hardware, department stores, specialty stores and gift stores. Pace Solutions International is a member of Global Chamber.

Chairman/CEO Sponsors BMO Harris Bank Polsinelli Squire Patton Boggs Thunderbird School of Global Management President Sponsors Alliance Bank of Arizona Bank of America BBVA Compass Bank Dickinson Wright InWhatLanguage Tiffany & Bosco Special Global Advisors Charles Bruce, Johnny Rockets, The Original Hamburger Hank Marshall, UK Honorary Consul in Arizona Melissa Sanderson, Freeport McMoRan Leila Aridi Afas, Toyota Michael Patterson, Polsinelli Jimmy Douglas, Tesla Electric Cars Lee Benson, ETW Susan Shultz, The Board Institute Committees All Metros, Industries and Regions Contacts CEO/Founder: Doug Bruhnke, Business Services: Cesar Trabanco, Membership: Yvonne Luker Global Marketing: Alexandra Verhein,


Next Up – ‘Welcome to Phoenix’ 5/24 by Doug Bruhnke, CEO and Founder of Global Chamber®

Our recent International State of the Metro at DIRTT in Phoenix was wonderful. It was the first opportunity for Phoenix mayoral candidates Kate Gallego and Daniel Valenzuela to speak as candidates — and they discussed global business! How far we’ve come in the region! Our next signature event is on May 24th, ‘Welcome to Phoenix’ at Tiffany & Bosco in Phoenix, with many of the recently arriving global and other businesses to the region. This is the second annual event. The first year’s event was outstanding, so we’re expecting nothing short of something more amazing this year! Join us!

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Connect to Global Career and Consulting Projects by Doug Bruhnke, CEO and Founder of Global Chamber®

At the Global Chamber®, we believe if you want to have a global career, you should have a global career — wherever you wish to live. And your company should have access to special global executives and professionals to lead growth. That’s why part of our daily goal is to connect members who want a global career to more companies that offer global jobs, and vice-versa. Browse our job opportunities and join our global talent community. And if you have a consulting business that targets global companies, you can connect in through our global tribe, too! Take your career across borders and have the life you want. As an executive looking for talent, gain access to the global tribe. As a consultant, connect to global companies who will value your services. For instance, an executive recently left his sales leadership position at a high-tech company and joined Global Chamber® to gain access to opportunities that would be a fit for his unique global skills and requirements, including him wanting to stay in his metro. After an


Global Chamber®

onboarding call, the regional Global Chamber® Executive Director provided three warm introductions plus a list of possible companies to introduce to consider. Before processing the list, one of the introductions turned into a call and a coffee — and a warm connection was made to a “perfect fit” job. That turned into a job offer and new position within a few more weeks. That’s the way it can work!! Global Chamber members who are open to new global career opportunities — jobs and consulting gigs — gather to discuss new business, jobs, consulting and other new opportunities at Global Career Roundtable sessions worldwide. Globies have special talents that many companies don’t and can’t understand; you know what I’m talking about!! Talking through opportunities with other globies creates a warm shoulder and an open mind to create new connections and opportunities. Get better connected to global career opportunities across your region and around the world.


Commercial Real Estate SPOTLIGHT ON THE BEST

CBRE Colliers International JLL NAI Horizon




MAY 2018


COMMERCIAL REAL ESTATE IN OUR SIGHTS To complement the cover story (see page 20) of this Commercial Real Estate issue of In Business Magazine, which is dominated by the multifamily segment, we also share the following updates on the industrial and office segments.

2018 Q1 Industrial Insight

As Vacancy Falls, New Construction Will Help Ease Supply Constraints Vacancy in the Phoenix industrial market fell to 7.3 percent, now just 100 basis points above its lowest point. With only 817,712 square feet of new deliveries and 1.3 million square feet of net absorption, vacancy inched down a mere 10 basis points. Despite a seemingly lackluster quarter, demand remains healthy. Phoenix manufacturers have benefitted from recent increases in government spending, resulting in mergers and consolidations that have increased the average user requirement size in the Airport and Southeast Valley submarkets. Aerospace and defense occupiers have been especially active as government contracts are awarded to local companies. With a $160 billion boost in defense spending provided through the newly-passed federal spending bill, we can expect more activity from the sector throughout 2018. As the volume and average size of user requirements ramps up, speculative developments are becoming more functional in order to attract large, single users, while still maintaining the

potential to become a multi-tenant building. Increased clear heights, wider column spacing and additional dock doors make these new developments attractive for institutional users with more sophisticated operations. Although 1.3 million square feet of absorption is considered light compared to the incredible gains of last year, there is still plenty of tenant demand across all sizes – including more than 100 tenants currently in the market for at least 100,000 square feet of space throughout the Valley. There are only enough existing contiguous blocks available to accommodate fewer than 50 percent of those users, and even with the high volume of construction underway, developers can’t seem to deliver space quickly enough. Speculative developments will contribute to a spike in vacancy in the near term but will provide muchneeded options as the market continues to tighten.

Q1 Industrial Insight Fundamentals


YTD net absorption

1,330,964 SF

QTD net absorption


Under construction

5,944,433 SF

Total vacancy


Average asking rent (NNN) Tenant improvements

$0.52 PSF Rising

Q1 Office Insight Fundamentals


YTD net absorption

746,564 s.f. ▲

Under construction

2,442,328 s.f. ▲

Total vacancy

19.2% ▲

Average asking rent (gross) $25.44 p.s.f. ▲ Concessions

Stable ▲

Information provided by JLL


Commercial Real Estate SPOTLIGHT ON THE



About this section: As part of our service to our readers, our editorial staff has invited these top commercial real estate companies to provide information on themselves, their expertise and details relating to their business in this Commercial Real Estate: Spotlight on the Best special section. The real estate market is improving and these companies are proven leaders in the Valley.


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Please visit for more information and articles on the local real estate market.



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2018 Q1 Office Insight

Phoenix Office Market Reaching 19th Straight Quarter of Positive Net Absorption


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The market currently has 2.4 million square feet under construction, with Vacancy continued its downward trend, coming in at 19.2 percent this an estimated 1.7 million square feet planning to deliver throughout the quarter and approaching lows that haven’t been seen since the second half next 18 months. Just under of 22 percent of this new development has been of 2008. Tenant activity is active, with more than 31 companies currently preleased thus far. While this might seem like a lot of development activity, seeking 2.2 million square feet of space, and all classes of office product are the lack of speculative properties is forcing tenants to get inventive with in demand. A few large tenant move-outs this quarter stifled absorption spaces. gains, leaving notable large blocks of space, but there is plenty of room for Sales activity reached a strong $293 million in the quarter. Compressed growth before the market peaks. yields in coastal markets is driving more investor interest in Phoenix, where Although the first quarter was slow to start by recent standards, it is still returns are still relatively attractive. The healthy and growing labor force, the 19th straight quarter of positive net absorption for Phoenix. The market Rd affordable cost of living and temperate climate will continue to attract is projected to extend this streak in the second and possibly am third quarter of tD let art B investors, company headquarters and tech users, supporting further 2018. Anticipated large move-ins will drive net absorption up and create a investment here. The average asking rent in Class A office product increased need for continued development and the creative use of space throughout Rd ek Cre from $29.81 per square foot to $30.88 per square foot, a growth ofm 107 the Metro area. y a W ve Ca basis points. Tempe took command as the most expensive submarket in the is Information provided by JLL D a Merdian Dr Valley, with Class A asking rates of $38.73 per square foot. Desert Hills Dr Joy Ranch Rd

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CBRE CBRE is the leader in the Metropolitan Phoenix commercial real estate market, offering 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. Throughout its business lines, the Phoenix office has earned a reputation as a respected leader in the business community with vast market knowledge and an enduring culture of client service. CBRE believes that the truest measure of our success comes from providing superior service to our clients — delivered by knowledgeable, creative and tenured employees, many boasting more than 20 years in the marketplace. It is our dedication to teamwork and commitment to excellence that makes it possible to serve the diverse needs of our clients. Whether facilitating the design, construction and move of a new corporate headquarters or strategically planning and negotiating complex lease agreements, CBRE offers a fully integrated, global service platform to our clients, delivering seamless execution and measurable results.

Our commitment to customer service and innovative solutions is recognized throughout the industry. NAIOP Arizona named CBRE its Brokerage Firm of the Year and also honored our professionals with Office Brokerage Team of the Year, Healthcare Brokerage Team of the Year and Developing Leader of the Year awards for 2014. AZ Big Media recognized CBRE as its 2014 Industrial Sales Team of the Year as well. BOMA’s Arizona chapter honored two CBRE-managed buildings with TOBY awards, and the Phoenix Business Journal recognized CBRE as the No. 1 commercial brokerage, appraisal and property management firm in Arizona. The year 2014 was also the 16th in a row Ranking Arizona named CBRE its No. 1 commercial brokerage firm. CBRE is also considered a top employer in Arizona, regularly recognized as an outstanding place to work. CBRE has ranked as one of the Business Journal’s Best Places to Work nine of the past ten years, and BestCompaniesAZ named CBRE one of Arizona’s Most Admired Companies for the fifth consecutive time in 2014. In 2012, BestCompaniesAZ also included CBRE in its list of 100 Best Arizona Companies, recognizing CBRE among the Arizona businesses that shaped the state during the past decade.

PROFILE Company Name: CBRE Main Office Address: 2575 E. Camelback Rd., Suite 500, Phoenix, AZ 85016 Phone: (602) 735-5555 Website: Number of Offices in Metro Phoenix: 1 Number of Commercial Agents: 110 City Nationally Headquartered: Los Angeles Sr. Managing Director and AZ Market Leader :  Craig Henig No. of Years with Firm:  10 years Year Est. Locally: 1952 Specialties:  Brokerage, Asset Services, Capital Markets, Debt & Structured Finance, Global Corporate Services

Craig Henig, senior managing director and Arizona market leader, and Cathy Teeter, director of operations, outside CBRE’s Phoenix office ADVERTISING PROFILE


MAY 2018


Unrivaled TalenT. UnmaTched resUlTs. Serving as trusted advisers to Phoenix’s most notable companies is a role we take seriously. Our professionals share an unwavering commitment to being a world-class real estate services company. A client-first culture and focused dedication to professional excellence are what make CBRE the leading provider of commercial property management, leasing services and investment sales in one of the country’s most vibrant real estate markets.

For more information on how CBRE can assist you with your real estate needs in Phoenix, please contact: Phoenix Office +1 602 735 5555


MAY 2018




JLL JLL is a leading professional services firm that specializes in real estate management. A Fortune 500 company, JLL helps real estate owners, occupiers and investors achieve their business ambitions. At year-end 2017, JLL had nearly 300 corporate offices, operations in more than 80 countries and a global workforce of more than 82,000. The Phoenix office of JLL was established in 2008 when JLL purchased the Staubach Company, a leading national tenant representation company. Former Dallas Cowboys quarterback and Super Bowl MVP Roger Staubach formed the Phoenix office of the Staubach Company in 2000. By 2008, that team had grown to 18 licensed brokers. Today, JLL Phoenix is one of the area’s top commercial real estate service providers, employing more than 49 licensed brokers and 580 of the Valley’s most recognized industry experts. Together, this team has realized a full-service vision for its Phoenix operations that includes tenant representation, landlord representation, capital markets investment and debt services, consulting, project management and property and facility management. JLL’s integrated services are specialized for a variety of assets, including office, industrial, multifamily, retail, healthcare and data centers. The expertise of JLL’s collaborative brokers spans a variety of industries, including e-commerce, financial services, healthcare, law, manufacturing,

distribution, retail, technology and food and beverage. JLL professionals also have specialized experience in public institutions ranging from government entities to universities to nonprofits. JLL’s innovative solutions are built on insight, market research and collaborative knowledge to help clients understand and navigate the intricacies of the constantly changing real estate world. Our local research team collaborates with more than 150 research professionals across the United States. Under the direction of office leader Pat Williams, the JLL Phoenix office in 2017 completed 35.7 million square feet in lease and sale transactions (valued at $1.9 billion) and directed $112 million in project management. The team currently manages a 24.2-million-square-foot portfolio. JLL earns recognition from clients, professional organizations and communities for its service, performance, culture and values. Recent recognitions include being named a World’s Most Admired Company by Fortune Magazine, an Ethisphere World’s Most Ethical Company, a CR (Corporate Responsibility) Magazine’s 100 Best Corporate Citizens, an Arizona’s Most Admired Company, a Top Company to Work for in Arizona, and multiple honors as a Phoenix Business Journal Best Places to Work and a NAIOP Brokerage Firm of the Year. For more information and market research, visit or follow us on Twitter at @JLLPhoenix.

PROFILE Company Name: JLL Main Office Address: 3131 E. Camelback Rd., Suite 400, Phoenix, AZ 85016 Phone: (602) 282-6300 Website: No. of Offices in Metro Phoenix: 1 No. of Commercial Agents: 49 City Nationally Headquartered: Chicago, IL Senior Managing Director: Pat Williams No. of Years with Firm: 18 Year Established Locally: 2000 Specialties: Tenant representation, landlord representation, capital markets, project management, property and facility management

FINANCIAL: Property Sold in 2017 (In cumulative dollars): $775 million Property Leased in 2017 (In cumulative dollars): $931 million No. of Commercial Transactions closed in 2017: 546



MAY 2018



MAY 2018


Gallagher & Kennedy The prime location for attorneys who know real estate law and how to get deals done.

DEALS WE DO Complex to routine transactions, including land use & zoning, litigation, construction, secured lending, leasing, acquisitions, sales, eminent domain/condemnation, valuation, distressed assets, refinancing, sale-leasebacks, permanent loans, tax planning, liquor licensing and land banking

FOR YOU Developers, home builders, contractors, lenders, landlords, tenants, investors, syndicators, owners, buyers, sellers and individuals

Lawyers. When Results Matter.

AND YOUR PROJECTS Mixed use developments, master planned developments, commercial, office projects, sports facilities, shopping centers, retail, industrial, multi-family, mini-storage and master sign plans

62 2575MAY East2018 Camelback Road | Phoenix, Arizona 85016-9225 | P: 602-530-8000 |




NAI Horizon NAI Horizon has been serving Arizona for more than 25 years, providing brokerage and property management services for local, national and international clients. We are proud to be the local representative of NAI Global, the single largest, most powerful global network of owner-operated commercial real estate brokerage firms. Founded in 1978, today NAI Global has more than 400 Phoenix headquarters offices worldwide, with more than 7,000 local market professionals, managing more than 425 million and service that only owner-operated, marketsquare feet of property. leading firms can provide. Our member firms are owner-operated and With locations in both Phoenix and Tucson, local market leaders, deeply rooted in their NAI Horizon is well-equipped to service clients communities around the world. We call this the throughout Arizona, and connected to markets “Power of Collective Independence”: independent all over the world. You can feel the pride we take firms collectively united to achieve extraordinary in our relationship with you, and how important results through creativity, collaboration and the your business is. At NAI Horizon, our global consistent delivery of exceptional knowledge strength is built on our local leadership.

Congratulations to Our 2017 Top Producers!

PROFILE Company Name: NAI Horizon Main Office Address: 2944 N. 44th St., Suite 200, Phoenix, AZ 85018 Phone: (602) 955-4000 Website: No. of Offices in Metro Phoenix: 1 No. of Commercial Agents: 54 City Nationally Headquartered: Phoenix CEO/Managing Director: Terry Martin-Denning No. of Years with Firm: 32 Year Established Locally: 1992 Specialties: Office, Retail, Industrial/Land, Investment Sales, Property Management Property Sold in 2017 (In cumulative dollars): $150,762,894 Property Leased in 2017 (In cumulative dollars): $144,674,682 No. of Commercial Transactions closed in 2017: 484

local knowledge global reach

The broad range of specialties represented in NAI Horizon’s Top Producers of 2017 is a testament to the collective success of professionals from industrial, retail, office, and investment sales.

broker owned

NAI Horizon’s broker ownership platform allows our agents an opportunity to play a direct role in the company’s future. This creates a culture in which our agents can maximize their own business while benefiting from the resources of a global commercial real estate brokerage firm.

Russ Warner

Rick Foss

Mark Wilcke

Chris Gerow

Tyler Smith

Shelby Tworek

Barbara Lloyd

Denise Nunez

Lane Neville

Isy Sonabend

Investment Sales (MH & RV Parks) Industrial Office

Investment Sales Investment Sales

Industrial Retail Retail

Investment Sales (Self Storage) Industrial

Interested in joining our team of commercial real estate experts? Please contact: Terry Martin-Denning, CEO |

Brokerage • Property Management

Phoenix | 602 955 4000 ADVERTISING PROFILE


MAY 2018


Anadranistakis, Peter, 28

Felker, Marisa, 12

McIntosh, Scott, 14

Vieira, Cristine, 14

Baugh, Adam, 16

Hayhow, Rob, 12

Merrifield, Kristen, 39

Walters, Dale, 28

Baughman, Rhette, 43

Henig, Craig, 58

Mertz, Martha, 66

Weber, Bruce, 46

Brown, Mike, 12

House, Bob, 13

Reardon, Jamie, 14

Wells, Susan, 22

Castillo, Mitzi, 10

Kaufmann, Thomas, 20

Sarbinoff, Ryan, 9, 24

Wilde, Trevor, 32

Chang, John, 24

Kilday, bill, 31

Taekens, Doug, 52

Williams, Pat, 60

Clarke, Ed, M.D., 18

Lewis, Laurel, 10

Vanderkam, Laura, 31

Williamson, Glenn, 28

Epstein, Audrey, 30

Martin-Denning, Terry, 63

Ventura, Michael, 31

1100 KFNX, 37

Enterprise Bank & Trust, 8

OfferPad, 11

AJ’s Fine Foods, 38

Equality Health, 33

OTOjOY, 20

Alliance Bank of Arizona, 3

Equinox Payments, 12

Pace Solutions International, 52

Alliance of Arizona Nonprofits, 35, 39

Find Your Influence, 14

Phinance Commercial Capital, 10

Arizona Care Network, 18

First Bank, 6

Phoenix Children’s Hospital, 33

Arizona Diamondbacks, 7

Gallagher & Kennedy, 19, 62

Phoenix Suns, 33

Arizona Hispanic Chamber of Commerce, 34

Gilbert Chamber of Commerce, 34

Pinnacle Bank, 67

Global Chamber, 47

Plaza Companies, 33

GlobalData, 18

Polsinelli, 23, 49

Grand Canyon University, 14

Prophet Insight, 14

Greater Phoenix Chamber of Commerce, 33, 35

Radix Law, 37

Arizona Public Service, 33 Arizona Small Business Association, 34, 35 Arizona Technology Council, 33, 34 ATHENA International, 66 Bank of Arizona, 15 BeachFleischman, 28 BizBuySell, 13 Bizversity, 11 Blue Cross Blue Shield of Arizona, 68

Hillstone, 38 HomeSmart International, 20 ISM Raceway, 33

Read Better Be Better, 41 Redirect Health, 23 Ryley Carlock & Applewhite, 33 Salt River Project, 33


Scottsdale Area Chamber of Commerce, 34 Snell & Wilmer, 2 Springstone, 16 SRP, 17 Support My Club, 45 Tempe Chamber of Commerce, 35 TigerLight, 36 Trispective Group, The, 30 TurnoverBnB, 14 Volvo, 36 Washington Federal, 12 Weber Group, 46 Wells & Gerstman, 22 Wilde Wealth Management Group, 32 Withey Morris, PLC, 16

JLL, 56, 57, 60, 61 Kona Grill, 38

BMO Harris Bank, 21

Lincoln Property Company, 16

Canada Arizona Business Council, 28

Local First Arizona Foundation, 34

Career Connectors, 41

Local First Arizona, 35

CBRE, 58, 59

Marcus & Millichap, 9, 24

Chandler Chamber of Commerce, 35

Maricopa Community Colleges, 51

Colliers International, 64

MIG Real Estate, 16

Conscious Capitalism Arizona, 14

Morning Squeeze, 38

Delta Dental of Arizona, 33

NAI Horizon, 10, 63

Digitech Systems, 11

National Bank of Arizona, 5

Docutech, 11

National Speakers Association, 43

Ecocrete, 14

Netsmart, 18

OUR PODCAST: Join us for interesting, informative and inspiring conversations with top local businesspeople in the Greater Phoenix area.

Economic Club of Phoenix, 34

North Phoenix Chamber of Commerce, 34

Listen now at

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

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A World of Difference in Leadership What’s the impact of gender and culture on leadership style? by Martha Mertz

Women’s leadership is influenced by culture. In communist China, women are considered equal, so accommodations are not made for children or family responsibilities. Women’s choices are “having a voice” or having a family — a strong cultural expectation.

Martha Mayhood Mertz is the founder of ATHENA International, an organization devoted to developing, supporting and honoring women as leaders; a successful entrepreneur; and the author of Becoming ATHENA. Since 1982, ATHENA International has recognized 7,000 women leaders in more than 500 communities worldwide based on the ATHENA Leadership Model, a distinctive approach for effective leadership in the 21st century.

MAY 2018



Leadership has been a hot topic for several decades, and the ways women lead has landed at the top of the discussion. Although the pace has been less than dazzling, women have found their footing in every level of existing organizations or have created organizations to provide an environment suitable for them. I should know. I was one of the women who founded a company and built my future. I also founded a movement to lift awareness in the community about the leaders there who happened to be women. What started as a local effort to increase the numbers of women in influential positions has become a force with a global reach. The organization, ATHENA International, has become a wellspring of knowledge about leadership and women. One of the great discoveries during this journey has been about gender differences in approaches to leadership. Women have been using tools that are not part of traditional practices. To verify this, we studied women from across the U.S. who had been honored for their leadership and found eight distinct strengths they used to be effective, calling our findings the ATHENA Leadership Model. Traditionally, leadership is hierarchical, like a ladder. Everyone is ranked according to title and position, the people at the top having the most authority and power. Everyone learns the traditional way; most of our institutions use that structure, perhaps first drawn from the military centuries ago. It provides an understanding and cohesion for order within groups. In contrast to that, the ATHENA Leadership Model (ALM) is like a circle, people working side by side with a focus on the project rather than the importance of any individual. This leadership is also ages old, drawn from women who typically had fewer resources and less independence. They relied upon each other for work that needed many hands. The fact that women’s ways of leading remain fully alive and effective, even hailed as transformative leadership in the 21st century, is amazing. How does the ALM resonate elsewhere? How much is leadership affected by cultural influences? These questions are taking on a higher degree of importance as the wonders of technology shrink the world. In 2017, the ATHENA philosophy, the award and the ALM were the primary focus during the SHE POWER professional women’s conference in Shanghai. This provided an opportunity to see the impact of China’s culture on the way this model works: The idea of “Living Authentically” is not in the Chinese lexicon. For American women, it means knowing oneself and one’s values, then living those values. Chinese culture has far less individuality. Values are collectively uniform within the group. For most Chinese women, a personal internal

assessment of “Who Am I?” is not appropriate or valued. “Learning Constantly” is highly valued in China. Getting into a good university is exceedingly competitive and education is a key component for providing family support and finding a good partner. The literacy rate in China among millennials is 99 percent, markedly higher than in the U.S. Learning in Chinese culture can be singularly focused upon advancement, rather than for personal interest or the pleasure of expanding intellectual breadth. Building “Relationships” and “Fostering Collaboration” resonate in both cultures. In China, collaboration is almost ingrained in the culture. Everyone works together toward a common goal, often prescribed through social media, which is controlled by the Chinese government. Here, the rise of the hashtag movement demonstrates the dramatic force of collaboration, amplifying the power of women’s voices, largely through social media. In one place, collaboration is a managed state-run dynamic, in another, one voice multiplied by thousands becomes a catalyst for change. The most difficult principles of women’s leadership in China are “Acting Courageously” and “Fierce Advocacy,” particularly in public. An idiom “Shoot the bird who takes the lead” captures the reality that challenging cultural norms can land a person in prison. One place courage shows up is in entrepreneurial endeavors. In China, three-quarters of new entrepreneurs are women. As a long-time entrepreneur myself, I can attest to the courage required to risk reputation and resources to create a new business regardless of the culture. Many college-age Chinese women are coming to the U.S. for further education, absorbing values and taking some cultural practices back, including women’s leadership strengths. The pace of change is slow, but China recognizes that aspects of Western culture are coming. For women in both countries, recognizing and honoring our differences opens the possibility for a powerful international collaboration that will benefit all of us.

China now has the largest number of self-made billionaires, according to a recent Hurun Report. There were 78 self-made female entrepreneurs worldwide with wealth exceeding US$1 billion each, of whom 49 come from China.

Come home to local banking.

It’s been 10 years. And we’ve made local banking something worth coming home to. This anniversary isn’t about us, it’s about you: Arizonans who wanted a better banking experience. After all, you’re not just clients. You’re our neighbors, our friends and the businesses that power our local economy. And with the accolades we’ve received—#1 Community Bank, Top 200 Healthiest Bank, 5-Star Superior Rating—it’s clear we’ve earned your trust with our easier, more personalized, local banking service. Here’s to 10 years as your hometown bank. Bank local. Bank Pinnacle.

Creating an exceptional experience!

Scottsdale 480.609.0055


Phoenix 602.995.6565

Member FDIC | Equal Housing Lender. Copyright © 2014 Pinnacle Bank, All rights reserved




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May 2018 issue of In Business Magazine  
May 2018 issue of In Business Magazine