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UTAH’S BUSINESS JOURNAL www.slenterprise.com

THIS WEEK • Industry Briefs • Begin on page 4.

• Calendar • See page 6.

Focus Special

R e p ort Made in Utah Begins on page 8.

Sept. 19-25, 2011

$1.44

Volume 41, Number 8

Asset buy creates $4.5 million assisted living state's largest IT facility under services outsource firm construction in Provo

In a move to expand its position within the information technology outsourcing market, American Fork-based Integratechs Inc. has acquired substantially all of the assets of DirectPointe, a nationwide managed IT services provider based in Lindon. The combined entity becomes fastest-growing and largest managed IT services provider in Utah, serving a diverse and growing client base across 25 states. Integratechs CEO Erich Pletsch said Integratechs brought 24 employees to the table, while DirectPointe had 62. The firms have combined their operations at DirectPointe’s Lindon facility because it had sufficient space for all. Four new jobs await fulfillment. Outside Utah, the combined firm has employees — most doing field service work for national clients and operating out of their homes — in Washington, Arizona, New Mexico and Connecticut. DirectPointe was founded in 2001, Integratechs in 2003. One of the firms’ higher profile local clients is Real Salt Lake.

Pletsch said it has not yet been determined which company name will be used going forward, but a decision should be made within the next couple of weeks. Companies in the managed IT services arena essentially manage and maintain the IT infrastructure of businesses of all sizes. “We build and install the servers and computers, support their end-users, work with them on planning and budgeting — anything their internal IT departments don’t want to do, we will, 24/7/365,” Pletsch said. “The majority of the work is done over the phone or remotely; we log into their systems. “The real benefit of this transaction to Utah is that with the combined company we have a stronger, more local focus and we are Utah’s fastest growing IT service provider and we’re now the largest in the state. The big plus is there’s a strong local option for companies that are a looking for outsourced management services within the state.”

Salt Lake City-based commercial real estate brokerage NAI WEST released its 2011 midyear report detailing the highs and lows of the Utah commercial market. Several key indicators in 2011 have had an effect on Utah’s commercial real estate market, including Forbes magazine ranking Utah the No. 1 Best State for Business and Careers, CNBC ranking Utah No. 8 For the Best State for Doing Business in 2011, Fortune magazine listing Salt Lake City as one of the world’s 15 “hottest” cities for business and Utah ranking No. 1 for Economic Outlook in the ALEC Laffer Economic competitiveness index. Utah is ranked in the top third in the nation for the lowest unemployment rate at 7.3 percent, compared to a national average of 9.2 percent. The number of firms looking to relocate to or expand in Utah continues to be steady, if not increasing. “Utah’s economy, as a whole, continues to outperform other markets in the nation and remains

one of the most fundamentally sound economies in the country,” said Gary Magnum, NAI WEST principal broker/managing director. “The Wasatch Front commercial real estate market does mirror that of the nation, but with a more optimistic outlook.” Industrial - Salt Lake County As a whole, the Salt Lake industrial market continues to outperform most of its national counterparts. As of midyear 2011, the vacancy rate rose to 6.16 percent. New construction in Salt Lake is as active as it was prior to the downturn in the economy, with 12 buildings containing approximately two million square feet currently under construction. Six of these buildings are being built on a speculative basis and make up almost 75 percent of the new build square footage. The total number of transactions is up significantly from midyear 2010, translating into the most transactions completed in over three years. Due to the geographic con-

DesignMatters Matters Legal

An elevation of Our House Assisted Living Center of Provo. It was designed to resemble a large residential home. By Barbara Rattle The Enterprise Ground has been broken in Provo for an approximately $4.5 million, 58-bed assisting living facility that is slated for a soft opening on Feb. 1, 2012. Located at 462 S. 900 E., the facility will be owned by Lon Lewis, a Pleasant Grove general contractor who has been building and operating assisted living centers since 1995. The Provo facility, as is the case with several other assisted living facilities built in Utah by Lewis’ company Lewcon Corp., will be operated by Our House Assisted Living, which manages a dozen smaller (averaging around 20 beds) assisted living facilities

throughout Utah. The Provo facility will be a “Type II” assisted living center, meaning that residents with disabilities will be able to avail themselves of single-person assistance with activities of daily living. Medication management will be offered under the direction of a contract nurse. The 40,000 square foot, single level structure was designed by Cooper Roberts Simonsen Architects. BHB was the structural engineer. The center has been designed to resemble a large residential home, with large gables and brick and stone facade and a two-car, covered parking area at the entrance for pickups

Executive Lifestyle Executive Lifestyle Legal Matters

Executive Lifestyle Begin on page 15.

Legal Matters Legal Matters Matters Legal

see ASSISTED page 2

Report details state of commercial real estate market straints and the underlying fundamentals of the Salt Lake Industrial market, steady growth and overall health is projected for the foreseeable future, barring any seismic shifts or catastrophic events in the economy. Office - Salt Lake County While there is a reasonable level of activity in terms of tenants and buyers looking for space, the midyear numbers do not reflect improvement in the market overall. Average asking lease rates for office space have made an inconsequential improvement from $19.46 to $19.62. Vacancy rates have gone up close to three quarters of a percentage point from 13.17 percent at year-end 2010 to 13.89 percent. Class B space in Salt Lake County seems to be the most obvious of the continued economic stagnation. Vacancy rates for class B space, now nearing 18.5 percent, have climbed upward since the fourth quarter of 2009, when they were hovering around 16 per-

cent. Additionally, owner/user sales have been strong, perhaps in part driven by reduced asking prices from 2008 levels. At this point in time NAI does not expect a rapid improvement in the office market. Retail - Cache, Davis, Salt Lake, Utah and Weber Counties A consensus is building among retail industry experts that the bottom of the retail commercial real estate downturn has occurred along the Wasatch Front and we are now trending upward, albeit at a relatively anemic pace. The threat of a lethargic rebound or even a double-dip downturn still remains, but many market fundamentals indicate that markets have rebounded off lows and are strengthening. Retail investment sales have become red-hot, with year-overyear transactions up 80 percent and CAP rates stabilizing. In

StaffingMatters Matters Legal

Real Estate Matters Legal Matters

see REPORT page 2


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Sept. 19-25, 2011

The Enterprise

REPORT from page 1

Which comes first — the culture or the brand?

In today’s hyper-connected, ever- flattening world, it’s almost become a question not worth asking. Coexisting in a chicken/egg, yin-and-yang relationship, an organization’s brand and culture shape and reflect each other in an interconnected system. One doesn’t change without the other; they can only evolve together. And the workplace is where it all happens. In the symbiotic relationship between brand and culture, brand is the outward manifestation of a company’s DNA and culture is the inward demonstration. The corporate world has been talking about organizational culture for years, but the emergence of brand as a discussion point in the executive suite is relatively new for many organizations. Of course, brand mavens like P&G and Coca-Cola live their brands every day, but at less well-known companies, brand has traditionally been left to the purview of the marketing department. In a competitive marketplace with a multitude of choices, however, organizations are realizing that differentiation is critical to survival and a strong brand can help cut through the clutter.

particular, well-located grocery anchored and single tenant, triplenet investments are approaching CAP rate levels not seen since 2006-2009. Investment - Cache, Davis, Salt Lake, Tooele and Utah Counties Midyear 2011 numbers show a healthy increase in dollar volumes across the board and the highest since mid-year 2008. These positive signs show that investor interest is strong and seeking to find quality deals and value added properties. Sales data reflects that core Class A assets are in demand for all property types, as is the competition for note purchases and deeply discounted properties. Class B and C assets have yet to recover their fundamentals and sales remain sluggish. Investment

CEO acquires 100 percent of SnugZ USA Space can be a powerful tool to both create and refl ect culture and brand, a kind of social glue that holds a workplace community together and increases engagement.

Today, experts agree that a brand is no longer something you can apply to the surface of an organization as if it were nothing more than a mark on cowhide or a catchy tagline on an ad. Strong brands grow from within. The line between culture and brand thins and smudges to the point that it almost can’t be seen. And if an organization wants to change its brand, it needs to consider whether the culture can support that change. The workplace is a frequently overlooked but critical lever in supporting a brand and culture change. If a culture change is a drama being played out (sometimes literally, as well as figuratively), then the workplace is the theater. Midwest has studied these issues through primary and secondary research, plus field studies with clients, and even uses its own spaces as living laboratories, thereby discover- ing new insights into the tightly connected and changing relationship between culture, brand, and workplace. It is virtually impossible to change an organization’s culture or its brand in significant ways without also changing the workplace. WHERE IS BRAND REFLECTED IN YOUR WORKPLACE? Logos and advertising are still the primary way to express brand in the workplace. At the same time, we understand that the design of the total workplace is a powerful way to encourage behaviors that sync with brand. HOW IS BRAND EXPRESSED IN YOUR WORKPLACE? Because space has such power to influence behavior — how we feel, how we interact with others, our productivity — its role in shaping culture and, as a result, a brand is imperative. By recognizing that the total workplace is an opportunity to successfully refine or redefine their culture, organizations can be poised to respond to the fast-changing dynamics of globalization, technology, Gen Y presence and influence, real estate compression, economic recession, and other operational and market challenges. BRINGING BRAND INTO WORKPLACE DESIGN With the growing importance of brand, many organizations are thinking about where to start. There are many ways to approach defining and designing spaces that will support a company’s brand. First, understand your organization’s brand intent. Understanding the right questions to ask is the key to defining the strategy for a workplace that will support your brand: • What are your key business goals? • What is your brand promise? • What do you need people to do in order to achieve the goals and deliver on the brand promise? • What behaviors do you need to encourage to ensure people are living the brand? THE BOTTOM LINE Exploring the questions of brand and culture and their relationship to the workplace is no longer a “nice to do.” It’s imperative for organizations that want to compete in an increasingly crowded marketplace. Gone are the days that companies could put forth one image to the public and keep its internal behaviors behind the curtain. Employees are the ambassadors of the brand, and that doesn’t mean just executives or the sales force. Every person who touches the customer in some way — from the people in the shipping department to those who answer the phone — have an opportunity to shape the company’s reputation and, therefore, its brand. When an employee feels an emotional connection to brand and “at home” in the workplace, an organization is on its way to both a stronger, richer culture and a more authentic, successful brand.

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The president and CEO of SnugZ USA, a Holladay-based promotional products firm, has acquired 100 percent of the company. Brandon Mackay has been a stakeholder in the company since 2005 and bought all interest from a handful of other shareholders. Founded in 1989 with a 10 employees making customizable eyewear retainers, SnugZ has grown to more than 250 employees and now manufactures lanyards, pouches, badge reels, tradeshow organizers, neck wallets and bags, water bottle straps and wine glass holders, pet products, lip balm, headbands, keychains, bracelets, card holders, luggage spotters, whistles, sunscreen, sanitizers, lotions and gels and other promotional products that can be custom-branded. The firm was recently ranked on the Inc. 5000, which indicated the company had revenues of $24.8 million last year.

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sales volume is only restrained by the lack of quality product. The market will continue to see more of the same, NAI predicts — a long, slow trend upward. Demand for quality deals will continue to push pricing and hopefully result in more assets coming to the market. Other investment assets will continue to flounder with sales few and far between. Land - Cache, Davis, Salt Lake, Utah and Weber Counties Land sales activity has reached its lowest point in the decade. Sales volumes for unimproved and improved land are just 10 percent of the peak in 2007 and about half of what they were this time last year. This reduction is due primarily to lackluster home sales, which in turn has curbed the appetite of home builders for more lots or residential land for lot development. The price disparity between buyers and sellers is beginning to close. Facing a continued difficult economy, lenders are becoming more anxious to move nonperforming assets off of their books. Reasonable buyers who are willing to take on some risk will find the best opportunities to buy in the next 18-24 months.

ASSISTED from page 1

and drop-offs. Each resident room will measure about 300 feet and be accompanied by its own private bath. “We’re offering full services — salon, laundry facilities, large dining area, living room/ congregation area, a private dining facility the residents can use if they choose,” Lewis said. Rental rates have yet to be determined, but will be competitive, he added. Located in a quasicommercial area, the facility will be adjacent to the Mountainland Health Services Center and will face State Street. Lewis said Central Bank is providing both construction and permanent financing for the project, which necessitated the demolition of a former Fraternal Order of the Eagles building. THE ENTERPRISE [USPS 891-300] Published weekly by Enterprise Newspaper Group Inc. 825 N. 300 W., Suite C309, Salt Lake City, UT 84103 Telephone: (801) 533-0556 Fax: (801) 533-0684 Web site: www.slenterprise.com. For advertising inquiries, e-mail david@slenterprise.com. To contact the newsroom, e-mail barbara@slenterprise. com. Subscriptions are $55 per year for online only, $65 per year for print only and $75 per year for both the print and online versions. or $1.25 per copy. Opinions expressed by columnists are not necessarily the opinion or policy of The Enterprise Copyright 2011 Enterprise Newspaper Group Inc. All rights reserved Periodicals postage paid at Salt Lake City, UT 84199. POSTMASTER: Send address corrections to P.O. Box 11778, Downtown Station, Salt Lake City, UT 84147


3

The Enterprise

Sept. 19-25, 2011

Wealth management firm opens Utah office Gentry Wealth Management, a Scottsdale-based financial planning firm, has opened their first Utah office at 292 E. 12200 S., Draper. The company specializes in retirement planning, income management, philanthropic planning and estate and legacy planning. Clark Morzelewski has been hired to manage Utah operations.

He previously worked at Fidelity Investments as vice president and senior account executive. While at Fidelity he managed 350 relationships with a combined net worth in excess of $1 billion, and received the President’s Award on multiple occasions, recognizing his outstanding client relationships. Gentry Wealth Management

employs a diversified, multi-manager approach that utilizes both traditional and non-traditional investments designed to achieve portfolios that not only perform in a good market, but help protect assets during poor market performance. The Utah office marks the firm’s first foray out of its home state of Arizona.

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Law firm purchases Salt Lake City building Winder & Counsel, a Salt Lake City law firm specializing in commercial and business litigation and transactions, has purchased an approximately 5,700 square foot building at 460 S. 400 E. and plans to be up and operating there by Oct. 31. The firm is currently located at 175 E. 200 S. in a structure in which Winder & Counsel principal Donald Winder held an equity

interest for many years. Winder said the new location offers about the same amount of usable square footage as does the 200 South office, but provides a basement that will be valuable for storage. “We’re trying to get rid of that stuff called paper but we don’t seem to be completely succeeding,” he said. Winder & Counsel, founded in

Vital Signs Staffing acquires Sandy-based On Call Solutions Vital Signs Staffing, Murray, has acquired On Call Solutions, an after-hours nursing triage service located in Sandy. Vital Signs gained eight employees, who have been integrated into Vital Signs’ Murray location, in addition to several good-sized customers, including one with facilities in Hawaii, California, Texas and Georgia, said Vital Signs owner Steve Whitworth. The combined firm now is responsible for more than 3,000 patients in the Wasatch Front area. Vital Signs was already in the after-hours nursing triaging business; the acquisition served to more than double that business. Vital Signs employees field calls from patients and/or their family members when the patient — most living at home or in a hospice environment and near

death — experiences a medical difficulty such as an accident or a fall or their pain medications are no longer effective. “We’ll walk the patient or the family member through if we can,” Whitworth said. “If we can’t, then we notify a nurse in the local area. If it’s in the Wasatch Front area we send the nurse out to do the visit. If it’s outside the state then we contact one of [the clients’] employees to go out and do a visit.” On Call Solutions was founded roughly six years ago. In addition to after-hours nursing triage services, Vital Signs places registered nurses, licensed practical nurses and certified nursing assistants. Earlier this year, it purchased Home Option Personal Care, which performs non-medical staffing services.

1983, has four full-time attorneys, three of counsel attorneys and two law clerks, one of whom has taken the bar exam and hopefully will become the firm’s fifth full-time attorney. Winder said he bought the 400 East building because “now the market’s very good to be an owner again. Business after the start of the Great Recession was not very good, but it’s been recovering and we’ve had a nice year.” The building purchase transaction was brokered by Rich Nordlund and Alison Beddard of Commerce Real Estate Solutions.

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Henriksen Butler invests $400,000 in remodel of Salt Lake showroom

Salt Lake City-based Henriksen Butler (H/B), a firm specializing in interior design and custom furniture solutions, recently remodeled its main 14,000 square foot showroom at 249 S. 400 E., part of its effort to keep in line with the latest architectural and design trends. “We’re in a very fashion-forward business so things change,” HB president/CEO David Colling said of the two remodels, which cost $400,000. “We need to keep up on design trends. It’s like being an auto dealership and not having the latest line of new cars. There are significant changes in design trends in terms of products and layouts architects are specifying; it has driven the need to update our showroom with the latest and

greatest products.” H/B has been Utah’s sole distributor of Herman Miller office furnishings since 1989, and the newly remodeled showroom incorporates Herman Miller’s Canvas Office Landscape systems furniture, which features lower panels and more glass to allow light into the workspace. One showroom highlight is an artistdesigned digital wallpaper by Maharam and DIRTT wall solutions featuring back-painted glass and textiles. Henriksen Butler was founded in Salt Lake City in 1980, with satellite offices in St. George and Las Vegas. The firm had revenues of $30 million in 2010 and expects to gross $37 million in 2011, a 30 percent increase.

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The Enterprise

• Industry Briefs •

BANKING

• This month Zions Bank is celebrating the completion of 1,000 Financial Peace University (FPU) classes in Utah and Idaho. Since Zions Bank began supporting this community-based financial education program, more than 30,000 participants have attended the program locally. FPU, developed by best-selling author Dave Ramsey, is a 13-week series

designed to help families save money for emergency expenses, get out of debt, and build wealth. A recent survey of past Zions Bank sponsored participants revealed that the average household has been able to add $15,600 to their savings and pay off $16,300 in debt. Moreover, 33 percent have paid off all consumer debts, and 38 percent have increased their 401(k) contributions by an aver-

age of 6 percent. • U.S. Bank has appointed Michael Cureton as a wealth management advisor for The Private Client Reserve of U.S. Bank, a unit of U.S. Bank’s Wealth Management Group that serves clients with more than $1 million in individual or family wealth. Cureton and teams of specialists help clients work towards their financial objectives by providing

comprehensive wealth management services in the areas of private banking, personal trust, and financial planning. Cureton reports to Michael Poulter, market leader for The Private Client Reserve in Salt Lake City. Cureton has more than 25 years of experience in the banking industry. He has held positions as a private banker with U.S. Bank and Wells Fargo Private Bank and is a graduate of Dixie

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Sept. 19-25, 2011

College in St. George. • Wells Fargo recently installed a new generation of Envelope-Free ATMs across Utah. The new machines no longer require envelopes for deposits and allow customers to stack and deposit checks and cash together at the same time. Following a successful pilot in Colorado, Wells Fargo has now installed 139 brand new ATMs across Utah featuring this new technology. Customers no longer need to write on an envelope or key-in a deposit amount. Once cash and/or checks are inserted into the ATM (up to 30 checks and/or bills at a time), the machine converts the paper checks into digital images, which appear on the ATM screen and on the receipt. The ATM also sorts and counts the cash and verifies the amount. • Frontier Bank, Park City, has hired Catherine Cimos as assistant vice president and branch manager. Cimos, a life-long Utah native and 16 year-resident of Park City, graduated summa cum laude from Westminster College of Salt Lake City, holding a B.A. degree in accounting.

CONSTRUCTION

• The U.S. Green Building Council has awarded a Leadership in Energy and Environmental Design (LEED) Silver Certification for Commercial Interiors to the intellectual property law firm Brinks Hofer Gilson & Lione for the firm’s offices at 222 S. Main in Salt Lake City, Utah’s first LEED Gold-certified high-rise. LEED for Commercial Interiors is the green benchmark for the tenant improvement market. It is the recognized system for certifying high-performance green interiors that are healthy and productive places to work, that are less costly to operate and maintain, and that have a reduced environmental footprint. The architect was Method Studio, a full-service architectural and design firm in downtown Salt Lake City, and the contractor was design-build firm Bonneville Builders.

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Sept. 19-25, 2011

• Salt Lake City-based ajc architects has promoted Joshua W. Greene to associate principal of the firm and Kent Rigby to associate architect. With more than 16 years of design experience, Greene has been with ajc architects since 1995, and has worked with a diverse range of clients and projects, from neighborhood visitor centers to 100,000 square foot life science buildings. An eightyear ajc architects veteran, Rigby has been in the industry for 30 years of experience, specializing in quality control.

EDUCATION/TRAINING • Michael S. Bassis will

retire as president of Westminster College, Salt Lake City, at the conclusion of this academic year, July 2012. Bassis has served as the college’s president since July 2002. The college’s board of trustees will begin a national search for Bassis’ replacement, whom they expect will be in place by summer, 2012. • The University of Utah has climbed up one spot to 79th in the Academic Ranking of World Universities by the Center for World-Class Universities of Shanghai Jiao Tong University. In the latest issue of U.S. News & World Report’s “America’s Best Colleges” rankings of undergraduate programs, the David Eccles School of Business at the U made a very strong showing moving up 12 spots to number 55 in the nation. • LDS Business College officials will celebrate the school’s 125th anniversary Sept. 21 with a downtown party on the plaza south of the college at 95 N. 300 W., Salt Lake City. The “Neighborhood Celebration,” scheduled from noon to 3 p.m., will open with an official cake cutting, and feature party treats, entertainment, displays, games and prizes. At about 12:30, 1,000 ping pong balls will be tossed from the roof of the 10-story building with 125 marked for prizes. In 1886, 10 years before Utah became a state, a group of resourceful Salt Lake City businessmen, under the direction of John Taylor, then president of The Church of Jesus Christ of Latter-day Saints, founded LDS Business College, known then as Salt Lake Academy. • The Natural History Museum of Utah at the University of Utah will dedicate its new home, the Rio Tinto Center, on Nov. 17. The new building will officially open to the general public on Nov. 18. The museum, an active research institution, cares for 1.2 million objects from the state and around the region. The total square footage of the new building is approximately 163,000, and its size and design allows for 50 years of future collection growth. The Museum is seeking LEED gold certification for the

5

The Enterprise Rio Tinto Center, which features many “green” elements and is situated on a 17-acre site located above the shoreline of ancient Lake Bonneville.

INSURANCE • Metro National Title, Salt

Lake City, has appointed Blake T. Heiner vice president and general counsel. He has more than 30 years of professional title insurance and will be responsible for risk analysis, claims review and underwriting transactions as well as escrow closings. Heiner got his law degree from the University of Utah. Previously, he worked for more than 16 years as regional and senior claims counsel for First American Title Insurance Co. • XSI Sports Insurance, a Lehi-based provider of supplemental insurance aimed at everyday athletes, is now offering its products to snowboarders and skiers.  Plans begin at $15.40 per month per individual. XSI Sports Insurance’s supplemental insurance plans cover snowboarders and skiers on and off the slopes.  Unlike health insurance plans, supplemental insurance pays cash to the policyholder when claims are approved. • Regence BlueCross BlueShield of Utah has hired Scott Thompson as its new media relations manager. He was previously with the Utah Department of Transportation where he served as its public involvement manager in the Orem Office. He has over 20 years of experience working in communication roles for state government, nonprofit organizations and television broadcasting. 

LAW • Chad S. Pehrson has

joined the Litigation Practice of the Salt Lake City law firm of Parr Brown Gee & Loveless. He specializes in complex commercial litigation, including intellectual property disputes, patent infringement claims, securities litigation, health care litigation, antitrust suits and government investigations.  Previously, Pehrson was an

associate with Simpson Thacher & Bartlett in Palo Alto. • Jones Waldo will host the fall meeting of the Legal Netlink Alliance, a global alliance of independent law firms selected for their commitment to high quality and integrity, Sept. 21-24. The gathering will include an overview of city development from the Downtown Alliance along with sessions on client service and marketing. In addition, a panel of top executives will discuss legal issues and trends in the direct sales industry, and University of Utah law professor Wayne McCormack will address “9/11: A Decade After and a Decade to Come.” • Holland & Hart LLP, which has an office in Salt Lake City, has been named among the nation’s 50 Best Law Firms for Women by the National Association for Female Executives, a division of Working Mother Media and consulting firm Flex-Time Lawyers. This is the second time the firm has been listed as one of the top 50 firms in the nation for creating a supportive work environment for women. Holland & Hart was also named to the 50 Best Law Firms for Women in 2009.

MEDIA/MARKETING • Clarus Marketing Group,

a technology firm based in Middletown, Conn., has opened an office at 50 W. Broadway, Suite 1016, Salt Lake City. The firm owns, operates and manages e-commerce websites. Its largest site and flagship business is freeshipping.com. C. J. Jedrziewski, director of partnership marketing, said the Utah office will focus primarily on partnership marketing

while customer service and all IT and operations will be run out of Connecticut. • Crowell Advertising, Marketing & PR, Salt Lake City, has added five new employees. Marshall Mann has joined Crowell as an interactive account executive. Mann worked at another local agency in a similar role and graduated from the University of Utah’s David Eccles School of Business with a bachelor’s degree in business marketing. As an account services coordinator for Crowell, Amelia Hall previously worked as a features journalist at an Australian media company promoting her clients in sometimes scary or inedible ways. Connor Crowell is working on many projects, such as media coverage management, new business development, creative services support, client events and office manage-

ment. A new sales account coordinator serving Crowell’s business development team, Julia Breinholt helps create new business opportunities, researches prospects, and provides project management support services. Brittany Jacoby is the agency’s production coordinator.

NONPROFIT • The Historic 25th Street

Business Association in Ogden will present the 10th annual America First Credit Union Harvest Moon Celebration Sept. 24. from noon until 10 p.m. The community will celebrate the end of summer, KBER’s 25th anniversary and the XTERRA USA Championships and Trail Run Nationals in Ogden. More than 25 family-friendly activities are continued on page 7

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• Sept. 20, 8-9:30 a.m.: “European Regulatory Affairs — Update on Medical Device Directives,” sponsored by the Utah Technology Council. Dr. Michael Rinck, CEO of MT Promedt Consulting in Germany, will review of the changes over the past year and to provide information on how Utah companies can maintain compliance with the EU regulations.  There will be Q & A session following the presentation. Location is the Little America Hotel, 500 S. Main St., Salt Lake City. Cost is $15 for UTC members, $30 for nonmembers. Register at www.utahtech. org. GSBS_Enterprise_4x4.pdf 1 • Sept. 20, 6 p.m.: Rotary

Club of Salt Lake City Centennial Gala, “A Century of Service — A Future of Opportunity.” The celebration of the club’s 100th anniversary will include a reception, dinner and presentation by honorees who exemplify Rotary’s motto of “service above self.” Honorees will be Ezekiel Dumke, Jr., cofounder of The Katherine W. and Ezekiel Dumke Jr. Foundation; Kem Gardner, chairman of The KC Gardner Co.; Jon M. Huntsman Sr., founder and chairman, Huntsman Corp.; President Thomas S. Monson, President of The Church of Jesus Christ of Latter-day Saints; Beverley Taylor Sorenson, co-Founder, Sorenson 8/4/11 5:14 PM Legacy Foundation; and Maj. Gen.

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• Calendar • Brian L. Tarbet of Utah National Guard. Location is the Salt Palace Grand Ballroom, 100 S. West Temple, Salt Lake City. Cost is $50. Register at www.slcrotary. org or by calling the Rotary office at (801) 363-8415. • Sept. 20, 4-7 p.m.: Contractor Lien and Bond Seminar, sponsored by Bank of American Fork. Many changes to Utah lien and bond law place new burdens on contractors to protect their lien rights. To help subcontractors understand these changes and how they will be affected, Dana Farmer, an attorney with Smith Knowles, will address a number of issues. Location is Cabela’s, 2501 W. Grand Terrace Parkway, Lehi. Free. RSVP at www.bankaf.com/events or (801) 642-3139. • Sept. 20, 11:30 a.m.: Utah Advertising Federation September Luncheon. Stephen Freitas, chief marketing officer of the Outdoor Advertising Association of America, will discuss new technologies to reach consumers and measure effectiveness, such as the new EYES ON audience measurement system, as well as advancements in digital formats and how the industry is addressing environmental stewardship. Location is the Salt Lake Hilton, 255 S. West Temple, Salt Lake City. Cost is $25 for AAF members, $35 for nonmembers. Register at http://aafutsep2011. eventbrite.com. • Sept. 22, 8 a.m.-noon: Free

GAIN MARKET SHARE. LEARN HOW. Focus W UTAH

a sa t c h Fr o n t

W

801.533.0556 ext. 237 • www.slenterprise.com

Sept. 19-25, 2011

Business Conference, presented by UBS Financial Services. Several local business experts will speak about increasing sales through branding, social marketing and interactive advertising; how a securities-backed line of credit works and why it may be valuable to your company; strategies to earn more interest income on your company’s working capital and cash reserves; getting the most out of a company 401(k) plan; understanding the benefits of an employee stock ownership plan; addressing difficulties through business turnaround and restructuring strategies; taking advantage of SBA resources; learning what community banks have to offer; and when accounts receivable factoring or invoice financing might make sense. Location is the Wells Fargo Building, 299 S. Main St., Suite 2100, Salt Lake City. Free. Breakfast and lunch will be served. Register with ben. driggs@ubs.com. • Sept. 23, 8 a.m.-4:30 p.m.: Business Sustainability Conference, presented by Net Impact Utah Professional Chapter. Keynote speakers will include Salt Lake County Mayor Peter Corroon; Pete Ashdown, founder and owner of XMission; and Terri Holland, owner and founder of Home Caregivers Home Health. Net Impact is the leading business sustainability organization globally with 20,000 members in 70 countries affiliating with undergraduate, MBA and professional chapters. Sustainable businesses use the “triple bottom line” to measure their success, generating positive environmental, social and economic impacts — or people, planet, profit. Location is the Wasatch Retreat and Conference Center Episcopal Church Center of Utah at 75 S. 200 E., Salt Lake City. Cost varies. For more information and registration, visit  / www.regonline.com/Register/ Checkin.aspx?EventID=978610. • Sept. 28, 8 a.m.-3 p.m.: Smart Women Smart Money Conference, presented by Zions Bank’s Women’s Financial Group. Guest speaker will be actress Geena Davis. Breakout sessions will show participants how to travel at full speed toward retirement, how to fuel a business career, and how to navigate the financial freeway with a budget. Davis’ keynote speech will motivate the audience to drive the road to success by highlighting the importance of gender equity and empowerment for success in life, finance and business. Location is the Salt Palace Ballroom, Salt Lake City. Free, but registration is required.

Register at www.smartwomen. zionsbank.com or by calling 800737-6586. • Sept. 28, noon-1:30 p.m.: “Advances in Neuroprosthetic Implants and Regenerative Medicine,” presented by the Utah Technology Council. Patrick A. Tresco, Ph.D., professor and chair of the Department of Bioengineering, College of Engineering at the University of Utah, will talk about advances in neuroprosthetic implants that allow patients with profound disabilities to use their thoughts to control computers and machines. He also will introduce a novel approach to rebuild bodily tissues with natural biomaterials harvested from living cells. Tresco has served as a biomaterials consultant to such companies as Bard Access Systems, Fresenius and Microislet. Location is the Little America Idaho Room, 500 S. Main St., Salt Lake City. Cost is $35 for UTC members, $60 for nonmembers. Register at www. utahtech.org. • Sept. 30, 9 a.m.-5 p.m.: Dave Ramsey’s EntreLeadership Nationwide Simulcast Training Event, presented by ChamberWest and hosted by the Salt Lake Community College Jordan campus. Cost is $39. Register at www. chamberwest.org or by contacting Holly at (801) 673-332 or holly@ chamberwest.org. • Oct. 28-29: Women in Business Conference, sponsored by the BYU Management Society and the Marriott School of Management at BYU. Keynote speakers will be Cathy Chamberlain, managing director of market strategy for Deseret Book Co.; Linda Daines, managing director for private client services at Goldman Sachs; and Jan Saumweber, senior vice president of Global Walmart Team Sara Lee Corp. There will also be a number of breakout sessions and speakers. The Oct. 28 events run from 5:30-9 p.m. while the Oct. 29 events run from 7:30 a.m.-4:15 p.m. Location is the BYU campus in Provo. Cost varies depending on number of events attended. Registration deadline is Oct. 14. For more information and to register, visit www.wibc.byu.edu. • Nov. 4, 7 p.m.: Utah Technology Council 2011 Hall of Fame Gala. Keynote speaker will be Larry Ellison, founder and CEO of Oracle Corp. Location is the Grand America Hotel, 555 S. Main St., Salt Lake City. A networking session will begin at 6 p.m. Cost is $300 for UTC members, $450 for nonmembers. Register at www.utahtech.org.


from page 5 planned for all ages including live music, kid’s activities and downtown criterium races. For additional information visit www. historic25.com or call (801) 6444068.

REAL ESTATE

• Red Ledges, a private mountain golf community in the Heber Valley, said that Kevin Price Designs has released a new selection of home designs for The Cottages collection. These new homes will start at $850,000. Kevin Price Designs, a firm with 34 years of experience in building and designing in high-end luxury communities, has enhanced The Cottages to provide buyers with increased value. The collection includes five floor plans ranging from 2,766 to 3,549 square feet, each featuring three bedrooms, three and a half bathrooms, three fireplaces, a laundry room, wideopen living spaces, a mudroom and a patio. The Wasatch floor plan, which is 2,766 square feet, is the most recent addition to The Cottages. • Everest Realty Group, an independent real estate companies, has become a franchise brokerage firm of the CENTURY 21 System, and is now known as CENTURY 21 Everest Realty Group, Midvale. Everest Realty Group opened its doors on June 1, 2009. In the first six month of business, the company grew to approximately 50 sales agents and today has more than 100 agents serving the Wasatch Front market and surrounding areas.

RESTAURANTS

• Salt Lake City-based New Golden Dragon restaurant is moving from its present location at 1518 S. Main to 1716 S. State, according to owner Tak Siu. Siu purchased the approximately 11,000 square foot building in April, which used to be home to Rolling Thunder Cycles, and is in the midst of having it completely remodeled. The owner hopes to open the 200-capacity facility by mid-October, pending approval from state health department and building inspector. The restaurant will remain open at its present location until the move is finalized. The New Golden Restaurant is open for lunch and dinner and offers traditional Hong Kong Chinese fare, in addition to dim sum. • Chick-fil-A will open its newest Layton location at 651 W. Antelope Road on Sept. 22, and will award a free year’s supply of Chick-fil-A to the first 100 adults in line that morning. Nearly eight years after it debuted at an Arizona grand opening, Chick-fil-A’s First 100 celebration ushers in each grand opening around the country. The parking lot party draws from

7

The Enterprise

Sept. 19-25, 2011 miles around Chick-fil-A’s loyal customers who come equipped with couches, TVs, computers, tents and other gear as they count down to the newest restaurant opening. • Salt Lake City-based TCBY, The Country’s Best Yogurt was presented with the Prepared Foods Excellence in Innovation Award for its development of Super Fro-Yo at the Prepared Foods New Products Conference in Naples, Fla, recently. Co-sponsored by Prepared Foods and the American Egg Board, the Excellence in Innovation Awards are designed to recognize innovative new products introduced nationally during 2010 through 2011, and the inspirational teamwork and creativity that made those new products possible.

free month membership. There are no limits on access during the trial. Nursery services are available for an additional charge. The pass is inclusive to all three northern Utah Gold’s Gym locations — Roy, Layton and Ogden. Former members of Gold’s Gym are not eligible for the free trial. Details are available at www.trygoldsgym. com. • The Riverside Country Club in Provo has opened its newly renovated clubhouse. Originally built in 1960, the

restored 52,000 square foot clubhouse includes new meeting spaces, expanded dining options, added spa and salon offerings, an updated reception venue and the addition of a state-of-the-art fitness center and kids club.

TELCO

• More than 13 million AT&T wireless customers, including more than 50,000 customers in the Salt Lake City area, will soon enjoy unlimited mobile calling to

any mobile number in the United States — regardless of the wireless service provider — at no additional charge. AT&T has added Unlimited Mobile to Any Mobile calling to more than 13 million customers with an unlimited messaging plan and a qualifying voice plan. This addition expands the calling scope for qualified customers from the current 85 million AT&T wireless customers to the more than 250 million wireless phone numbers nationwide.

Business After Hours Thursday, Sept. 22 from 5-7pm

RETAIL

• WhatTheyThink. com, a media outlet in printing and publishing, has chosen AlphaGraphics CEO Ken Cushing has been named the Print CEO of the Year. The award, in its second year, acknowledges the work of print CEOs who have been in their positions for at least two years and show innovative and inspirational leadership of a successful printing company. This success is quantified in revenue, profit growth, corporate transformation initiatives, environmental leadership and other qualifications as seen by those who nominate leaders. AlphaGraphics is headquartered in Salt Lake City.

Workers Compensation Fund 100 W Towne Ridge Pkwy, Sandy UT

Cost: $10 if registered by Sept. 21 $15 at the door $20 Non-members RegisteR online: www.slchamber.com/bah Questions please call 801.364.3631 Media Sponsor:

SPORTS/FITNESS

• Gold’s Gym of Northern Utah is giving the community the opportunity to workout at their facilities at no cost during September with the “Everyone’s a Member” campaign. Individuals (18 and older) and companies are invited to try the gym for 30 days, no purchase necessary. Group fitness classes, cardio equipment, weights, steam room, sauna, pool and basketball and racquetball courts are all included during the

Enterprise.indd 1

8/15/11 2:13 PM

RO S E M A N U N I V E R S I T Y

C O L L E G E O F D E N TA L M E D I C I N E S O U T H

J O R D A N ,

U TA H

UTAH’S FIRST AND ONLY D O C TOR OF D EN TA L MED I C I N E P ROG R A M

Roseman University, a nationally recognized leader in providing health care education, is bringing high quality pre-doctoral dental education to Utah. With a curriculum focused on our student-centered educational philosophies of mastery learning, outcomes-based education, and development of lifelong colleagues, and a state-of-the-art patient clinic that will provide affordable, high quality dental care to residents of the Salt Lake Valley and surrounding areas, Roseman University is transforming health care education.

801.302.2600 | www.roseman.edu/dental


8

The Enterprise

Focus

Harmon's thriving with 21st century ideology

s p e c i a l

report

Nearly 80-year-old family-owned company has redefined its image in past decade, with emphasis on quality, variety and supporting local vendors

LABORATORIES

HIGHLIGHTING BUSINESSES THAT WERE CREATED IN UTAH AND CONTINUE TO BE OWNED BY UTAHNS

OGIO leaders optimistic about sales growth potential Bluffdale-based firm has established itself as an innovator in designing stylish, user-friendly sports and lifestyle bags By Brad Fullmer The Enterprise Mike Pratt, principal owner and founder of Bluffdale-based OGIO International Inc., has always has always had an inclination for developing new concepts for products. Twenty-five years ago while working out at a local gym in Park City, Pratt was flummoxed by the shape of his duffel bag, which fit awkwardly in the gym’s vertical locker. So Pratt started looking at his bag from a user perspective, and concluded that it would function better if it were shaped more like the locker. He went home and designed his first product, the locker bag. He had some sample bags made, found a factory in Asia that could manufacture the products and, voila, the company was launched. From those humble roots, OGIO has blossomed into an award-winning, internationally renowned leader in sports and lifestyle bags, apparel and accessories. The company has grown consistently since it began in 1987 and is on track to do more than $60 million in revenues in 2011, according to Pratt. “This will be our best year ever in terms of sales,” said Pratt. “We have major growth potential. Conservatively, I would put our growth for next year between 15 and 20 percent, and my belief is that in three to five years we’ll have a huge uptick in sales, where we’ll potentially double or triple in size if we’re smart.” The 50-employee company has actually slimmed down its operations in recent years, going from a 100,000 square foot office to one that is 30,000 square feet. OGIO has more than 100 independent representatives in North America and a series of distributors across the U.S., which reduces the need for inventory space. Pratt’s optimism stems from having a revolutionary line of stylish, cutting-edge products and gear, and a collection of great in-house talent, including CEO Tony Palma, whom Pratt hired in January 2010 to help spur OGIO’s growth. “We have the right leadership in place to take advantage of patents we own that will allow us to become a larger player in some of the silos we’re doing business in,”

Sept. 19-25, 2011

said Pratt. “I think we have the right ideas – we just need to execute.” “OGIO is a unique company,” said Palma, a former CEO of Easton Sports who helped that company increase its sales five-fold over a 15-year period to more than $750 million annually. “I’ve known these guys for years and knew they designed phenomenal bags and felt that in order for them to get to the next level they needed some fresh thinking. Very few people talk about a bag as being a unique product, but it’s what we do.” “Hiring Tony is one of the better decisions I’ve made,” said Pratt. “I needed someone to run the business. We were using Tony as an advisor and saw an opportunity to bring him in. I’m not a CEO; my first love is product development and branding. Before Tony came on board it was difficult to get traction everywhere we needed and he has the ability to be on top of the every day details. He’s making sure we’re moving forward.” When Pratt started OGIO – a random name his wife came up with – he focused primarily on duffel bags and backpacks before eventually branching out into highperformance golf bags and gear bags for the motocross and snowmobile industries. Pratt was virtually a one-man show during the company’s first few years in business, and had considerable success early on. He said that by the second year OGIO had sales of $8.4 million with just one bag that came in three colors, which fueled his outlook. “It was a fun experience at the beginning,” said Pratt. “I started out approaching department stores and sporting goods stores, companies like Foot Locker and Nordstrom. I did a lot of persuading at the time.” Pratt soon realized that in order to grow his business further he needed to expand OGIO’s product line, and began developing different kinds of bags and packs. After a decade in business, he saw a major need in the golf bag industry and in 1998 began making bags with unique features and styles that bucked traditional trends. OGIO’s golf bag line has been a major success over see OGIO page 11

By Brad Fullmer The Enterprise Spend a few minutes walking through Harmon’s newest state-of-the-art, 69,380 square foot Station Park supermarket in Farmington with owners – and local semicelebrities – Bob and Randy Harmon and it becomes quite obvious that the lifetime grocery retailers have an overwhelming passion for good food. Whether they’re showing off the store’s spacious lobby with its myriad displays of fresh fruits and cheeses and unique locally produced sundries, offering up a slice of house-made chicken pizza with white sauce or extolling the virtues of dry-aged prime beef, the Harmon brothers seem to be relishing the fruits of their 21st century business model. That model includes reinvesting considerable dollars back into their company, a rather remarkable concept during a recessionary period of vast economic uncertainty. Harmon’s has a current annual sales volume of approximately $430 million from 15 Utah-based stores (No. 16 opens February 2012 in downtown Salt Lake) and operates on razor thin profit margins. Yet, the company is thriving under the leadership of third generation members who have a firm belief in the concept of reaping what you sow. “We have put a tremendous amount of resources back into our company,” said Bob Harmon, 50, vice president of customers. “Since 2003 we’ve reinvested $76 million into renovations, training and equipment. When everyone else was ‘leaning out,’ we actually grew our company staff by more than 25 percent. We added 460 jobs – pastry chefs, artisan bakers, butchers, houseware specialists. We added all of these into our business. “At this point it’s been very successful,” Bob said of the way Harmon’s has improved and enhanced its operations since the turn of the century. “We knew back in the late ‘90s that our industry had changed dynamically. Bigger boxes [i.e., corporate retail behemoths like Walmart, Target and Kroger] had more leverage in procuring

products at a very low price point and we knew we didn’t have that same leveraging power. We knew [their presence] was going to change market share and that we needed to do something entirely different than what we were providing, and something uniquely different from our competitors. That’s when we started on the path of finding great value.” Bob says this like the past dozen years have been something of a Yellow Brick Road kind of journey for the Harmons and their extended company family of 2,700 employees, or “associates” as they’re referred to. In many ways, it has indeed been a twisting, turning, winding road that has led them to this point. “We knew all about Walmart before they even entered this market,” said Randy Harmon, 51, vice president of consumer affairs. “We’re members of a national organization of family-owned grocery businesses and the first thing they told us was ‘don’t play the price game, because you’ll lose every time.’ “Instead of the philosophy ‘pile it high and watch it fly,’ it’s more about being educated on what we sell, and in turn educating our customers,” added Randy. “It’s changed our entire business. The more we learn about food, the more passionate we become about it, and we’re attracting more passionate employees as well. It’s made our lives a lot more fun to share that with people.” “We were concerned with Walmart and seeing other locally owned grocers that were selling out to bigger companies, and we didn’t want to do that,” said president Dean Peterson, a 38-year Harmon’s veteran who started stocking shelves as a teenager in 1973. “But we wanted to survive and that meant making significant changes.” “We had to re-think our entire business,” said Bob. “We’re trying to hit something different than price. We were always a good operator, but it seemed like everyone was offering the same shopping experience. In order for us to retain our market share and grow customers, we had to differentiate ourselves from our competition.” see HARMON'S page 10

Shoppers converged on Harmon's newest venture at 1706 E. 1300 S. in Salt Lake City on the Sept. 14 grand opening. The smaller-scale store occupies what formerly was Emigration Market.


Sept. 19-25, 2011

The Enterprise

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HARMON'S from page 8

Deep Community Roots Harmon’s nearly 80-year history has always been steeped in its local roots and close community ties. It began in 1932 when Jake and Irene Harmon started a local fruit stand in Salt Lake City at 3300 S. Main St. that expanded over the next decade to include a greater variety of goods. In 1942, a truck crashed into the front of the store, causing major structural damage and coming within feet of hitting Bob and Randy’s father, Terry Harmon, who was just a toddler. That forced the Harmons to start a café for a couple of years before eventually opening up the first Harmon’s Market in 1945 at 4000 West and 3500 South, which Bob and Randy affectionately refer to as “The Green Store” because of its muted green, sagebrush-like exterior color. Terry Harmon and wife Doreen “were always at the store,” Randy recalled, and the kids were allowed to help out at an early age in the late 1960s. “It was a fun time; Saturday mornings dad would get me up early and I’d go over and help him set produce, sort bottles, bag groceries. It depended on how much I worked that day whether I got a [toy] model or a doughnut,” he chuckled. From the mid-1940s to the late 1960s, Harmon’s gradually expanded its product line to become more of a mercantile operator, which made sense because there simply weren’t other nearby options for local residents to get essential food, clothing and household items. Harmon’s was an integral part of Salt Lake’s west side community, a company that truly cared about its clientele. PostWorld War II was a challenging time for many local families; Harmon’s would often accept barter or trades from some customers, or would extend credit to people so they could feed their families in tough times or between paychecks. “We have people who still come into our store – from third generations like us – and talk about that,” said Randy. “They remember our grandparents extending credit during hard times. It was important to them to support the community.” Another calamity struck Harmon’s in 1969 – a fire caused significant damage to the Green Store, forcing the Harmon family to reconsider its overall business approach. They ultimately rebuilt the West Valley store to be better than ever. Bob said his grandfather would visit grocers in other states and incorporate the best aspects of those stores into his own operation, a tradition company executives have successfully replicated in recent years. “After they remodeled, it was really the first ‘super’ store in the state, with a deli, meat department, pharmacy, dry cleaning, post office – no other store was like it,” said Bob. Over the next 25-plus years, Terry and Doreen Harmon eventually took over as second-generation owners, and oversaw the expansion of the firm to eight Utah stores by 1998. Terry Harmon died in 2004 at the age of 64; Doreen, who is now 71, remains company chair and principal owner. 21st Century Innovations; Focus on Quality, Selection The influx of giant corporate retailers into the Wasatch Front grocery market at

The Enterprise the end of the 20th century meant Harmon’s had limited options for continued long-term success. Competing against the likes of Walmart on sheer cost would have been a losing proposition. And the option of selling the nearly 70-year-old family business – such as Smith’s Food & Drug did in 1997 to Fred Meyer (which was ultimately bought out by Kroger in 1999) – was far from palatable. In addition, retail grocers in general were competing against societal trends that saw young individuals and families spending more of their food budget eating out and less buying traditional groceries. So the Harmon family rolled up its collective sleeves and began to reinvent itself, which started with an intensive education process for company executives, associates and, eventually, customers. “The fast food revolution hit first – people were eating out five days a week,” said Randy. “They just didn’t go grocery shopping. We saw the need to educate our customers on how to cook, and educate them on the freshness of items.” “Randy and I, and all our associates, have learned more about food – where it comes from, its life cycle and all those nuances – in the past 10 years than we ever thought about it before,” said Bob. “It used to be you buy it, you market and merchandise it, and you sell it. Our people are much more passionate about our product because they’re making it in-house.”

“Instead of the philosophy ‘pile it high and watch it fly’, it’s more about being educated on what we sell, and in turn educating our customers." And just like Grandpa Jake did eight decades ago, Harmon’s is committed to buying its fresh, non-commodity products – namely meats, cheeses, dairy, fruits, vegetables, even organic flour – from as many local suppliers as possible. This “buy local first” mentality means a much higher percentage of consumer dollars spent in a Harmon’s store stays in Utah’s economy. “We’ve found things along the way to stay competitive, and buying local is one of them,” said Bob, adding that Harmon’s supports more than 700 local companies and spends nearly $250 million annually on buying local products. “Buying direct, buying closer to home, and manufacturing it ourselves has helped us procure items at a better cost; plus we’re providing a higher quality, fresher product.” David Nimkin, co-founder and cochair of Local First Utah, a not-for-profit organization that promotes local, independently owned businesses throughout Utah, said companies like Harmon’s reap many benefits from buying local products. “Harmon’s, to their credit, is doing what we hope for other local businesses that are similarly structured,” said Nimkin. “We want all local businesses to embrace their local brand and promote localness as part of their identity.” “We are a local company – 100 percent of our people live in this state,” said Peterson. “It makes sense for us to leverage that. Bob and Randy are accessible to our customers, which I think is unique in itself. There are not many owners walking the sales floor interacting with the public,

Sept. 19-25, 2011

Bob (left) and Randy Harmon at their Station Park store in Farmington, which opened in May. A downtown Salt Lake City Harmon's is slated to open February 2012 next to City Creek Center. (photo by Brad Fullmer)

which is to our advantage.” “Helping to promote and sustain the community is very important to us,” Bob added. “We’re supporting local businesses who provide jobs to people. When you buy local, those dollars are staying in our community. It’s meaningful, and we’re trying to do our share of getting even more localized.” The Harmon brothers admit that certain commodity-type and non-food items may cost more at their stores than a big-box competitor, but they hope consumers are savvy enough to look at the overall value and experience of shopping. In addition to top-notch quality and selection of goods, Harmon’s newest stores like Station Park in Farmington and Bangerter Crossing in Draper offer amenities like an in-store barista serving coffees, pastries and Italian gelato, fresh salad and soup bars, pizza and deli counters, an upstairs mezzanine with comfortable spaces to dine, and a cooking school for patrons to learn directly from Harmon’s own culinary chefs. The company takes great pride in having specially trained, highly educated associates, including cheese mongers, artisan bakers, dietitians and pharmacy technicians. “For a lot of people it’s all about price; we focus on value, convenience and quality,” said Randy. “There’s more to shopping than just price. [Large corporate competitors] are so big, they don’t have the culture we have, and they can’t provide the training we give our associates or match our customer service.” “What people are realizing is the value and quality of what they’re buying and making healthier choices,” added Bob. “You pay for what you get. We want to offer something that is this much better; it will be a little more [expensive], but it will last you longer at home and it will taste better. There is a value in that beyond price point – our customers understand that. When it comes to specialty foods, organic natural foods, we are as aggressively priced as anyone.” “We do 1,000 price checks a week,” said Randy. “Commodities like flour, frozen orange juice, canned goods. We’re checking them; they’re checking us. One thing we’ll never do is think our customers don’t know. If you ever feel like you can take advantage of a customer, you won’t be in business long. We make a little bit of margin, but we never take more than we should. Price is

just one thing about value. In our industry you can take value a long ways – friendly staff, clean stores, excellent variety and quality. It’s not hit and miss – it’s every day.” Bright Future Harmon’s will soon boast 16 stores across in Utah stretching from Ogden to St. George. The Emigration Harmon’s store celebrated its grand opening Sept. 14 at 1706 E. 1300 S. in Salt Lake City – site of the old Emigration Market. The 10,000 square foot building marks a new concept for Harmon’s – a store that is one-sixth the size of a typical one, a true “neighborhood market.” Next February, Harmon’s will unveil the only full-service grocery store in Salt Lake’s central business district when it opens the 43,410 square foot City Creek Harmon’s at 135 E. 100 S. in Block 74 of the highly-anticipated $2 billion City Creek Center development. The City Creek store will cap an era of unprecedented growth – eight new store locations in fewer than 13 years. The future looks bright, and the company is well-positioned to continue its legacy as a familyowned business with strong input from a veteran leadership and 2,700 associates. “It’s exciting for our associates to be allowed to incorporate their own vision into a product and not be held back,” said Peterson. “Not everything we do works, but we keep trying new things. Jake Harmon was like that.” Bob and Randy Harmon will continue to serve as company spokesmen and consumer relations specialists, while sister Jamie helps out with promotional events. A fourth generation of Harmons, three of Randy’s four children and all five of Bob’s, work for the company in various capacities. “I read a statistic where 65 percent of second generation businesses either fail or do not have succession,” said Bob. “For the third generation, it was a 90 percent failure rate. We’re well-established for the fourth, trying to honor what our grandparents and parents have done. “The success we’ve had now, and going forward, is because of our people,” Bob added. “You can build amazing facilities and have all the state-of-the-art equipment and tools you need, but to be successful you have to have the person that brings it all to life, that engages the customer, that has ownership.”


Sept. 19-25, 2011

OGIO from page 8

the past 13 years, to the point where other manufacturers have incorporated many of OGIO’s concepts into their own golf bags. “Back in ’98 I saw golf bags as having an old man, country club feel,” said Pratt. “I saw an industry that was not young and edgy and when I looked at bags I saw a lot of improvements that could be made. I wanted to make something that was sporty, more for the younger crowd. That first year I designed a see-through golf bag and at trade shows I put smoke machines and funky tube lights in my booth. It took people off guard, but I was trying not to be the same as everyone else. What it comes down to is you need a great product that people will buy, and one that has shelf appeal.” For Pratt, one of the main “hot buttons” in designing any product is what he calls “touch points” – something to differentiate his brand and make it stand out. “I look at things like the handle, the zipper, things that needed to be special and better than competition,” Pratt said. For example, OGIO golf bags have individual slots for each golf club, rather than a standard bag that may have only three slots. Another feature is a zipper-less golf ball compartment that the user can simply pop open to get another ball.

“Our brand appeals to young professionals or the young at heart, someone with a swagger in their step who wear a bag as part of their fashion statement. Bags to OGIO are like bags to Louis Vuitton.” OGIO is also well known for its design of gear bags for motocross and snowmobile enthusiasts, which it started making in 2001. Being a motorsports enthusiast himself, Pratt figured it was another market that would help OGIO’s overall brand appeal, one that catered to a young, hip audience. The company has also had great success getting professional athletes to endorse its products. Popular golfer Fred Couples and motocross daredevil Travis Pastrana are perhaps the most well-known of the dozens of pros who use OGIO travel and gear bags. Pratt said he met Pastrana when the X-games phenom was still a relatively unknown teenager and over the years the two have developed a longlasting friendship. Pratt said he’s served as somewhat of a mentor to Pastrana, giving him tidbits of advice about life in general. “It’s more than just a business relationship,” said Pratt. “When we talk it’s a more personal type of conversation. I have his cell phone number and I’m sure he’d take the call because of our history, not because he’s a sponsor.” Pratt said one of the reasons athletes

The Enterprise like OGIO products is because of their stylish, edgy design. “When you’re working with athletes, these guys are brands unto themselves and they have to associate with products that make them look good,” he said. “When they see a product like OGIO, they look at it as a way to enhance their own image, so sometimes they’ll strike an interesting deal with us. We’ve seen some high-caliber people who look at us as an edgy brand.” Palma said OGIO’s newest product, which will be unveiled in March 2012, is a gear bag designed for endurance athletes such as those who compete in triathlons. “It’s a more specialty product,” said Palma. “It has pockets for high-end goggles, sunglasses, a place for wetsuits, some unique carry systems, anti-microbial pockets – it’s what OGIO is known for. The initial focus group studies are fantastic; no one has seen this kind of a product before.” Another new feature in various OGIO bags, backpacks, and messenger bags is a reactive suspension system, which is designed to protect a laptop computer or tablet against unwanted impact. The user

11

Founder Mike Pratt (left) and CEO Tony Palma are the key executives of Utah-based OGIO, which specializes in custom made sports and lifestyle bags. can “drop” their portable device into the bag without worrying about damaging it. “It’s like having an integrated hammock in the bag,” said Palma. “We wrap it in a façade that is very stylish, something we call an ‘adrenaline look.’ We’re very focused on designing bags that have a

unique style and look. Our brand appeals to young professionals or the young at heart, someone with a swagger in their step who wear a bag as part of their fashion statement. Bags to OGIO are like bags to Louis Vuitton.”


12

The Enterprise

Sept. 19-25, 2011

Q&A with Dr. Edward Ashwood of ARUP Laboratories Edward Ashwood, M.D., is the president and chief executive officer at Salt Lake City-based ARUP Laboratories, and a professor of pathology at the University of Utah School of Medicine. ARUP is one of the top four national reference laboratories in the United States. The Enterprise had the opportunity recently of getting some unique insight into ARUP from Dr. Ashwood’s perspective. Enterprise: What is ARUP’s mission? What core services does ARUP provide? What segment of your business is responsible for most gross sales revenue? Ashwood: ARUP’s mission is to support our clients first and foremost through high quality diagnostic laboratory testing services. We also provide strategic business planning resources and innovative lab informatics tools. We specialize in providing testing services to hospitals, offering more than 2,500 test and test combinations. Because of their smaller size, most hospital laboratories can offer about 500 different tests. As their reference laboratory,

we provide the remainder for the needed laboratory services. Our economies of scale support our large number of specialists and our huge equipment investments. Enterprise: Who owns ARUP? Ashwood: ARUP Laboratories is a nonprofit enterprise of the University of Utah and its Department of Pathology. Enterprise: ARUP is one of the largest full-service reference laboratories in the nation. Who are the others? Ashwood: The top competitors include Quest Diagnostics, Laboratory Corp. of America and Mayo Medical Laboratories, a division of the Mayo Clinic. Quest and LabCorp serve physician’s offices as well as hospitals. Mayo and ARUP do not. Because we have focused on all aspects of hospital diagnostic testing, we have become one of the leaders in that market. Enterprise: When was ARUP founded? What does ARUP stand for? Who are the founding members and current key executives? What inspiration was behind the formation of this company? Ashwood: ARUP Laboratories was

ARUP uses robotics technology to assist the efforts of its approximately 2,800 employees, 1,000 of whom were added in the last decade. founded in the early 1980s and officially – this was a modification of Associated opened their doors for business in June of University Pathologists (AUP), the original 1984. Originally, ARUP stood for Associated holding company. “Regional” was added to Regional and University Pathologists, Inc. emphasize the company’s service to regional clients. Today we serve clients, mostly hospitals, in all 50 states, so a few years ago we officially changed our name to ARUP Laboratories, which is not an acronym. Our company was founded by faculty and staff of the Department of Pathology in the University of Utah School of Medicine. Some notable names from our early days include Lloyd Martin, the business manager in the department of pathology whose idea it was to start the lab and really was the energy behind the idea. Dr. Ernst Eichwald was the chair of the Department of Pathology in the early 1970s and had created AUP to support Lloyd’s idea. Dr. John Matsen joined the department of pathology in the early 1980s and, as chair of the department, served as ARUP’s first president and CEO. Dr. Joe Knight, Dr. Harry Hill, Dr. Owen Ash, and Dr. Carl Kjeldsberg were all key players in the early days of our company. The inspiration behind our company Trusting was very simple: we wanted to be able to Honest grow the department of pathology. The best way to do that, we thought, was to Committed start our own diagnostic reference laboraPassionate tory. Looking back it was a very bold and risky move, but with a lot of perseverance, dedication, optimism and support from the Your regional General Contractor, University of Utah and University of Utah Building Relationships & Building Hospital, it has all paid off in spades. Enterprise: How many employees Value for Owners and Developdoes ARUP have? How many employees ers throughout the eleven westdid company start with? ern states for 60 years. Wadman Ashwood: We started with 100 Corporation has always strived to employees in 1984, and some of those folks use Utah subcontractors and buy are still here. ARUP currently has around 2,800 employees. We’ve added about 1,000 local products when ever possipositions over the past 10 years. Although ble; honoring and giving back to we added a large number of employees the community that has supportthree years ago, we are currently holding ed us for 60 years. steady. Enterprise: How has ARUP grown in recent years? Education: K-12 & Higher Education │ Office │ Industrial │ Hospitality Ashwood: ARUP Laboratories has seen consistent, positive growth as a busiMulti-family │ Resort │ Retail │ Religious │ Government │ Health Care ness and in terms of market share in the industry. Data from Medicare indicates that 2920 South 925 West laboratory services have grown about 6 Ogden, Utah 84401 percent per year for the past three years. In 801.621.4185 that same period, ARUP grew 25 percent. www.wadman.com Enterprise: What are ARUP’s

Celebrating “60 Years of Building Value”

see ARUP page 17


13

The Enterprise

Sept. 19-25, 2011

Six years later, Local First Utah still going strong By Brad Fullmer The Enterprise What started out in 2005 as a modest group of volunteer Utah-based business owners hoping to better educate the public and other companies about the benefits of buying local goods and services has mushroomed into an organization with roughly 3,000 members statewide. Local First Utah is a nonprofit group whose mission is to strengthen communities and local economies by promoting local, independently owned businesses all across the Beehive State, and to better educate the public and government about the myriad benefits of buying local. The organization is open to all Utah businesses that are least 51 percent locally-owned and make their business decisions independently; there is no class of membership and there is no charge to join. The only requirement, says co-founder and co-chair Betsy Burton, is to be as active a participant as possible and to consider the importance of supporting local businesses. “People need to understand that when they shop, they are shaping the places they live with the dollars they spend,” said Burton, co-owner of King’s English Bookstore in Salt Lake City. “We ask people to understand the consequences of their spending habits.” “If you’re a local enterprise, your money is generating more economic activity in your community,” said David Nimkin, Southwest regional director of the National Parks Conservation Association

and another co-founder and co-chair of Local First Utah. “There is a real feeling of identity and character that local enterprises reflect. We define neighborhoods by the businesses that have been there for a long time. We articulate the goal of promoting local and independent business and want people to understand these elements; it’s about public education. We hope people recognize that they do have an influence on where they spend their money. If they value the local economy and community, we encourage them to find products and

services that local businesses can provide.” Burton and Nimkin said Local First Utah has made a significant impact in its six years in operation, mainly through education. One of the main points of emphasis is helping people realize that for every dollar spent in a locally owned independent business, as much as three times that much is re-circulated in the community compared to if that dollar is spent at a national chain store. “I’ve been an active participant since its inception,” said Steve Rosenberg, owner of Liberty Heights Fresh in Salt Lake City. “When you support a local business, the difference is so multi-faceted and beneficial. That business offers a personal touch, is hiring local workers, and the dollars stay in our community. If that business is fortunate enough to earn a profit, that profit is often reinvested locally. Local businesses allow local people to work at often times better wages and better conditions than a large chain.” “For a business like mine, I want to make other businesses and people aware that we are a local company,” added Pete Ashdown, founder and CEO of Salt Lakebased XMission, and a Local First Utah board member. “It’s a great organization.” Local First Utah originally started out as an offshoot of Salt Lake Vest Pocket Business Coalition, according to Burton, but wanted to expand its presence beyond Utah’s capital city and impact businesses all over the state.

Nimkin, who worked for the Utah Microenterprise Loan Fund for 18 years, was state director of Utah Small Business Development Centers in the early 90s, and worked under former Salt Lake Mayor Rocky Anderson, was instrumental in helping with the organizational aspect of Local First Utah. He said that buying goods and services from local businesses helps with the issue of unemployment. “At a time when everybody is talking about job creation, we don’t have to look to the federal government for jobs; there are ways, with the purchasing power we have, to have a significant impact on creating jobs locally,” said Nimkin. “If we want to promote local businesses, ultimately it’s customers and the community who make that decision.” The organization has a strong presence in Salt Lake City and County, Ogden and Moab, and this year has placed a greater emphasis on reaching areas such as Cache Valley, Wayne County and Washington County. Besides Burton, Nimkin and Ashdown, other current Local First Utah board members include treasurer Jorge Fierro, founder of Rico Mexican Market in Salt Lake; Suzy Dailey, owner of Ogden-based Grounds for Coffee; Leigh von der Esch, director of the Utah Office of Tourism; Jim Rizzi, publisher of City Weekly in Salt Lake; and Jocelyn Kearl, co-owner of Third Sun Productions of Salt Lake.

Not in Our Town Light in the Darkness

Wed. Sep. 21, 9PM In 2008, seven local high school students killed a 37-year-old Ecuadorian immigrant who had lived in their New York village for 13 years. When arrested, they said they were “looking for a Mexican” to beat up. Not in Our Town tracks the steps one town took to repair a community that has been torn apart by bigotry and fear.


14

How is your ability to make the sale?

“Jeffrey, what’s the BEST ownership. way to make a sale?” • The best way to make a When I’m asked this ques- sale is to relax throughout the tion (I’m asked it all the time), entire sales conversation. what the salesperson’s really ask• The best way to make a ing is, “What’s the EASIEST way sale is to respond in a heartbeat. to make a sale?” • The best way to make a EASY ANSWER: The easi- sale is to make yourself available est way to make a sale is lower when a customer needs you. your price to a point that you make • The best way to make a no profit. Not a good option. sale is to support and prove all REAL ANSWER: There is your claims with video testimonino EASIEST way to make als from existing cusa sale. tomers who love you And, just like there is and are loyal to you. no easiest way to make a • The best way sale, there is no BEST way to make a sale is to ask to make a sale – but there for a date of beginning, are several elements that or some type of commitcontain the word BEST ment to move forward, that you must self-evalAFTER you are certain uate in order to discover you have removed all Jeffrey why the sales takes place, risks and removed all Gitomer or why not. barriers from your prosKEY POINT OF pect’s buying process. UNDERSTANDING: Selling is • The best way to make a sale NOT manipulating. Selling is har- is to have multiple relationships at monizing. different levels and departments Oh, you can occasionally within the same company. make a manipulative sale. But if • The best way to make a you’re still in the 1970s trying sale is to earn the status of trusted to “find the pain,” or “sell an up- advisor. front contract,” or “make a cold • The best way to make a call,” or “close the sale,” you’re sale is to create the atmosphere toast. Sales toast. where the customer wants to buy. Here are the BEST ways to • The best way to make a make a sale: sale is to make the passion of your • The best way to make a sale belief transferrable. is to have your reputation precede And there are questions you you by word of mouth from your must ask yourself that enable the Google ranking, and from your list of the BEST ways to make a business social media presence. sale: • The best way to make a • Am I always achieving my sale is to be known as a valued PERSONAL best? resource before you start. • Am I always PREPARING • The best way to make a my best for every sales call? sale is to be friendly before you • Is my ATTITUDE set on start. positive, and positive outcome? • The best way to make a • Is my BELIEF in product, sale is to meet with the CEO or company and self always at the actual decision-maker. highest level? • The best way to make a • Do I believe in my HEART sale is not to be salesey, or cocky, that the customer is better off havor condescending. ing purchased from me? • The best way to make a • Am I always doing my sale is to find some common BEST for every customer, every ground before you start the selling time? process. REALITY: As a customer, I • The best way to make a do NOT need a salesman. I need sale is to ask intelligent, emo- productivity, an idea, morale, a tionally engaging questions that profit provider and a trusted advidraw out both needs and buying sor. motives. Is that you? • The best way to make a sale is to walk into the meeting with two ideas in favor of the Jeffrey Gitomer is the author of Social BOOM!, The Little Red customer. • The best way to make a Book of Selling and The Little Gold sale is to have done pre-call prep- Book of YES! Attitude. President of Charlotte, N.C.-based Buy aration in terms of the customer. • The best way to make a Gitomer, he gives seminars, runs sale is to convey value rather than annual sales meetings and conducts Internet training programs features and benefits. • The best way to make a on selling and customer service sale is to focus on how they profit at www.trainone.com. He can be reached at (704_ 333-1112 or and produce. • The best way to make a salesman@gitomer.com. © 2011 All Rights Reserved sale is to focus on outcomes and

The Enterprise

Sept. 19-25, 2011

CenturyLink — what to you think?

They’re doing it again. people had been handled too poorly of the decision to change, although for too long. They were losing cus- I’m not sure about the new name Changing their name, that is. I’m talking about the tele- tomers too fast and too steadily and itself and I’m even less impressed phone company. You know, that couldn’t seem to stop the bleeding. with the “slinky” ads on TV. Of course, this is speculation (Slinkys aren’t chains. They don’t one that used to be Qwest, which before that was U.S. West, which to some degree on my point, except “link,” and if that’s what they’re before that was Western Bell or that I was one of those customers. after, I’m not sure it works.) Anyway, if the company Intermountain Bell or something I finally left Qwest for Comcast like that … or was it both, which about a year ago. This, after prob- decided it couldn’t win as Qwest, before that was Bell Telephone, ably four or five years of trying I think they were right, and as which we all referred to as “Ma to find an alternative that would expensive as it is, the change was work. necessary. Bell.” I talked to dozens of Qwest The question is, will it work? And those are the names it’s been known by in just the last 40 customers over the years of my dis- And I think it has a chance. Their satisfaction, and they all agreed. five-year $19.95 Internet promise years. And here’s the is actually a very compelling offer, OK, I know. The teleultimate iron: Comcast especially if it’s a no-contractphone industry ain’t what it isn’t really any better required deal. So it leads me to used to be. Dereg’d and all. than Qwest. In fact I’ve believe that the execs are waking up The intro of cellular, the legal come to the conclu- from their 40-year nap. insistence that the big compasion that my Comcast After all, isn’t that the way nies let little companies use Internet service is actu- it should be? Shouldn’t people be their lines, the move away ally inferior to Qwest’s. able to vote with their feet and their from landlines, the broadenAnd while their cus- wallets? If they all did that, don’t ing of the market to let cable tomer service has been you think the whole industry would companies provide phone service and phone companies Jim Ackerman OK (no better than serve the whole customer base betOK, but at least OK), ter? to provide programming and, they pulled some of the And, if finally, they can just do of course, voice over Internet protocol or VOIP. And let’s not for- same pricing bait-and-switch crap something about that customer serthat I used to get with Qwest. As vice. If they can, they may provide get the death of the Yellow Pages. But y’know what? The big a consequence, I’m paying signifi- a real link to the next century for phone companies – Ma Bell spin- cantly less than I paid with Qwest, their entire industry. offs in particular – have had literal- but significantly more than what ly decades to figure this all out. I’m I expected to be paying when I Jim Ackerman is a Salt Lake City-based marketing speaker, talking about figuring out how to signed up with Comcast. These kind of shenanigans marketing coach, author and ad go from a monopoly to a company that simply has to be responsive to give the whole industry a bad name writer. For his speaking serviccustomers in a competitive envi- and I think the companies tend to es, go to www.marketingspeakronment. That has to compete in think consumers will just throw up erjimackerman.com or contact product proposition, value proposi- their hands and say, “They’re all him directly at mail@ascendtion, price and customer service in just as bad, so I might as well stick marketing.com. Subscribe to his VLOGS at www.YouTube.com/ a “we aren’t the only game in town” where I’m at.” Or maybe they think there will MarketingSpeakerJimA, where world. You can argue the reasons for always be a lot of shifting, but in you get a video marketing tip of name changes until you’re blue in the end, we’ll keep our share of the the day, and at www.YouTube. com/GoodBadnUglyAds, where the face, but I would argue, even if business. Obviously not the case with Ackerman does a weekly ad criofficials at the company would dispute my assertion, that the change Qwest or there wouldn’t be a need tique and lets you do the same. ©2011, Jim Ackerman from U.S. West to Qwest, and now, for the name change. All Rights Reserved In this case, I actually approve even more so to CenturyLink, has a great deal to do with an inability to overcome a persistent perception of a company that provides poor customer service, is unresponsive and generally pisses customers off. Believe me, name changes in big companies are not taken lightly. The CEO doesn’t wake up in the morning and say, “Wow, looks like a great day to change the name of our company!” The infrastructure ramifications alone can be mind-boggling, not to mention incredibly expensive. Everything from changing letterhead and business cards to re-painting (or re-wrapping) every vehicle in the fleet. Just changing the automated phone system that keeps customers in on-hold hell forever is a daunting Interior plant maintenance. proposition. Guaranteed. So you can bet that Qwest was in the think about and planning stages regarding this name change, probably for two or three years, maybe more. Which gives us a very imporDraper location: 12252 S. 1325 E. 801-676-0935 tant insight … Salt Lake location: 2735 S. 2000 E. 801-485-2542 At some point, the company realized that it wasn’t going to be cactusandtropicals.com able to shed its lousy service image, no matter what it did. Too many

You take care of Business.

We’ll take care of the plants.


15

The Enterprise

Sept. 19-25, 2011

Executive Lifestyle Executive Lifestyle Legal Matters Travel since Sept. 11 With the coming and going of the 10th anniversary of the Sept. 11, 2001 terrorist attacks on the United States, the American news media have noted hundreds of changes wrought on our nation by those attacks. And, granted, there are many. But, am I the only one who noticed no attacks on Sept. 11, 2011? And don’t you think a significant date of remembrance such as that would have been a superb time for terrorists to celebrate by creating even more mayhem for us? Kudos to the Transportation Security Administration (TSA), which has indeed increased the “hassle factor” at airport check in; and kudos to the redesigned airports that no longer permit crowds

passed without any terror, which is just the way we like it. The only thing that actually happened was the hijacking of an NBC News Twitter feed by a group known as “The Script Kiddies” on the Friday before Sept. 11 and using it to publish hoax tweets claiming that terrorists had used passenger jetliners to attack ground zero in Manhattan. So, a hoax was the worst thing that happened. True. The nation’s overall economy slowed down after those attacks 10 years ago, but in the years since, it has shown remarkable resilience. The growth in the gross domestic product slowed only temporarily, and although the Dow lost almost 700 points when the stock market reopened after the attacks, it gained 5,000 points over the next six years,

The Quest is a masterpiece; add it to your business library

Legal Matters Legal Matters Matters Legal

(Editor’s note: Each month Jack Covert, founder of 800-CEOREAD, reviews the best recently released business books. Jack is coauthor of The 100 Best Business Books of All Time, released in March of 2009. 800-CEO-READ is a leading direct supplier of bookrelated resources to corporations and organizations worldwide, and specializes in identifying trends in the changing business market.)

explaining complicated issues with great story telling. For example, his two-page explanation of the evolution of climate change becoming a cultural divider and a universal concern is read-outloud brilliant and easy to understand. From the Caspian Sea to China, Africa to Hugo Chavez and Venezuela’s oil production, Yergin shows us the interconnectivity of the world, giving it life and context. This book will help you to understand some of the complex issues regarding energy that we will need to deal with globally, and will keep you thoroughly entertained along the way.

StaffingMatters Matters Legal

Don Shafer

of people to send us off at airline boardings; and kudos to the flight attendants who no longer put up with unruly passengers; and kudos to those who have made scores of other changes that made this Sept. 11 safe and secure. It came and

see SHAFER page 17

Real Estate Matters Legal Matters THE CENTER OF IT ALL

The Quest: Energy, Security, and the Remaking of the Modern World By Daniel Yergin, The Penguin Press 816 Pages, $37.95, Hardcover For almost 30 years, I have made a living telling people about business books that are important. There are nearly 11,000 business books published each year, so this job requires me to make quick judgments based on those years of experience. Because of the number of books that cross my desk, I really gravitate to shorter books. So it is extraordinary for me to read — no, devour — a 700plus page book cover to cover. The book is The Quest: Energy, Security, and the Remaking of the Modern World by Daniel Yergin, and it is a masterpiece. Ten years ago, the author wrote a book called The Prize, a Pulitzer Prize winner that told the history of oil. In The Quest, he uses a wider lens to capture the larger energy picture: oil as well as coal, nuclear, and natural gas used to generate electricity, drive our cars and heat our homes. This book takes the reader through the early part of the 20th century when gas was cheap, through the creation of OPEC and the oil embargo of the ‘70s, and then into this century with the Gulf War and the nightmare of the Japanese nuclear disaster. He also digs into the other sources of energy — solar, wind, biofuels — which aren’t exactly new, but being revalued by investors and consumers alike. Yergin has a real talent for

HR Matters Legal Matters

INLAND WESTERN R

Retail Real Estate Trust, Inc.

Uncertainty: Turning Fear and Doubt into Fuel for Brilliance By Jonathan Fields, Portfolio 240 pages, $25.95, Hardcover Business is not just a creation, it is a creative process. Jonathan Fields recognizes this, and has written a book addressing a key part of that process — uncertainty. Having left the six-figure income he made as a lawyer to work as a personal trainer and open a yoga center in New York City (the day before 9/11, no less), it is a topic he knows something about. And he knows that life without the unknown is life without innovation. If we were sure of everything we did before we did it, we would have never discovered fire or invented the wheel. Ambiguity has unseen opportunity, uncertainty is rife with potential. As the author notes: “The more you’re able to tolerate ambiguity and lean into the unknown, the more likely you’ll be to dance with it long enough to come up with better solutions, ideas, and creations.” But we all fear the unknown, and when it comes down to your life’s work, it can be downright terrifying. That’s not going to go away, but you can frame it differently. Writing of “The Myth of the Fearless Creator,” Fields notes that prolific creators learn to expesee BOOKS next page


16

rience fear as attention and motivation, like a mountain climber on a precipice. He tells the story of how Sebastian Junger, the author of Perfect Storm and maker of the film “Restrepo,” learned to deal with this fear. Junger explains: “I start feeling it and then I … just unhook from it. … I was a climber for tree companies and I’m scared of heights, but I never got over my fear of heights. I just figured out how to not think about it. It was really simple.” Uncertainty will help you become more comfortable living amidst the mystery, embracing the unknown so that you can exploit it’s potential. As Fields poignantly remarks, “Genius always starts with a question, not an answer.”

The Big Enough Company: Creating a Business That Works for You By Adelaide Lancaster and Amy Abrams, Portfolio 288 pages, $25.95, Hardcover Entrepreneurship. Starting your own business. Running your own company. These words and phrases are ripe with potential, optimism, freedom. They mean realizing your dream, saying no to the corporate grind, being your own boss, setting your own value. But of course it is far more complicated than that. Once you get your business off the ground, once your business becomes a success, it’s entirely possible that your little business, much like a child, will have developed a mind and personality of its own. And, as a result, you really aren’t going to have a lot of freedom, and you’ll be too tired for a lot of optimism, and identifying more potential will also mean more work. Unless, of course, you have a plan — a plan that can help you establish and sustain a “big enough company,” big enough by your standards and no one else’s. Adelaide Lancaster and Amy Abrams, owners of In Good Company, a community for women business owners, have authored a new book to show you how to develop such a plan. The Big Enough Company follows the bifurcated advice the authors give on how to create a company that fits: “It is not enough for your business to be a means of fulfilling your personal motivations.

The Lean Startup: How Today’s Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses By Eric Ries, Crown Business 336 pages, $26.00, Hardcover Each startup is begun with a leap of faith; no entrepreneurs know for certain who their customers are or how they will act. Planning and developing a company based on uncertainty is a difficult skill to be sure, but one that can be learned. In his new book, The Lean Startup, Eric Ries asserts: “Startup success is not a consequence of good genes or being in the right place at the right time. Startup success can be engineered by following the right process, which means it can be learned, which means it can be taught.”

The book digs deep into the process and shows how entrepreneurs need to have more than a big idea, a business plan, some research and funding. They need       to have a sort of purposeful flexibility, where reactions can be addressed in small increments,              minute by minute. These pivots                           and shifts continuously test the vision of the idea, and when prepared, entrepreneurs can shape       the business into the right model         rather than continuing to, as Ries describes it, “achieve failure.” RD178969              Job No.: Ries lays out a type of proAd Size: SALT LAKE CITY, UT cessEngagement management City: that many might      Section: notMedia: have considered. AfterTRADE all, any AD idea can seem really good until the     Insertion Date(s):      world tells you it’s not as good as          you thought. Ries elaborates:  “Entrepreneurship is a kind of management. No, you didn’t read that wrong. We have wildly divergent associations with these two words, entrepreneurship and management. Lately, it seems that one is cool, innovative, and exciting and the other is dull, serious, and bland. It is time to look past these preconceptions.” This is a critical book for those itching to quit their jobs and start their dream business, and just as important for those who have been an entrepreneur for years. With Lean Startup as your guide, not only will your failure rate decrease, you’ll discover things about your ideas and about business that you never did before, because you’ll be open to that discovery and prepared to act instead of wondering why the results aren’t what you planned.

FELD ENTERTAINMENT

©2011 Feld Entertainment

from previous page

Your business needs a purpose of its own in order to last in the marketplace.” The first half of the book is absolutely stuffed with realworld examples and case studies of entrepreneurs who followed their own authentic vision for the creation of their company. In the second part they get more prescriptive, concentrating more specifically on the decision-making and networking needed to help you keep your company doing the right things the right way. The Big Enough Company tackles a timely topic while offering a fresh voice that defends the choice to create a company that is specific to your needs and values, and the right to say no to the chorus of “grow! expand! merge! sell!”

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Sept. 19-25, 2011

The Enterprise

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SHAFER from page 15

and reached its highest point ever in October 2007 when it leaped above 14,000. Passengers on U.S. air carriers numbered more than 56 million in August 2001, then dropped to only 30 million that September. Some said the airline industry would never recover, but they were back above 56 million passengers by September 2004. Not bad for a business that some said was doomed. And that’s not all. There are more hotels than ever, more car rentals, more cruise passengers, more resorts and particularly more all-inclusive resorts. And as for getting to travel destinations, people are not only flying, Amtrak business is up, bus travel is on the rise and auto trips are at an all time high. Come to think of it, and this is not based on a scientific study, but I think I’ve noticed more walkers, joggers and bikers on my daily trip up the canyon with my dog. Even with the current economic stagnation, which has nothing to do with terrorist attacks, unless you think loan officers who offer mortgages to people who can’t pay them and bankers who fund such an enterprise qualify as ... well, never mind. Anyway, despite the current difficulty in the economy, which isn’t a result of what happened Sept. 11, 2001, travel is up. The people who have the money to go somewhere for fun are on the move. And the bargains are galore. You can rent a car for a daily rate

17

The Enterprise

Sept. 19-25, 2011 that is no more than you would have paid 20 years ago. You can go on a cruise for much less than 20 years ago, which is unbelievable. Hotels are offering all sorts of deals, including in many cases a free night if you book three, four or five nights. Group travel, which is at an all time high, offers such tremendous rates that sometimes it seems as if it would be less expensive to go on a group tour than to stay at home. And air fares have just recently dropped. Yes, they have been reduced. And oh, by the way, when you consider inflation, the cost of air travel is much less than it was 10 years ago. So, yes, things have changed since that awful day 10 years ago, but in almost every case it seems to have been for the better. Not only are the various entities that serve us more alert, but we are as individuals. Passengers have become part of the solution, often detecting and reporting suspicious activity, and as a result, preventing bad things from happening. Travel is far bigger than it was. More places are easily accessible, and we have more means of getting to wherever we want to go, and more accommodations and fun things to do once we get there. But most importantly, it is truly safer than it has ever been. Don Shafer has been hosting radio travel shows in Salt Lake City for more than a dozen years, and was taught everything he knows by travel experts he has interviewed. Although some have called him “The Travel Doctor,” he holds a Ph.D. in a totally unrelated field, religion.

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ARUP

from page 12 growth goals for the last quarter of 2011, and for 2012? Do you anticipate adding more staff in 2012? Ashwood: Our goals for the rest of this year are to keep growing, and serving our clients by providing excellent patient care. We are always hiring talented people as we have a young, mobile and educated workforce. We have excellent tuition benefits. Thus, many of our staff are in college and take out-of-state positions upon graduation. The esoteric lab testing market is growing, and we continue to be a market leader and gain market share. I am most excited about our genetics division; it is growing by adding a large number of innovative laboratory tests. Our anatomic pathology division has benefited from the addition of a new medical director, Dr. Mary Bronner. She is a pathologist that we recently convinced to leave the Cleveland Clinic. Pain management is also a growing segment. In addition to our lab testing we are putting resources into our newly created marketing informatics division. With health care reform efforts under way in the United States, the value and role of the laboratory and its services are vital. We are developing new services and better ways of using our existing services, that will help our clients and their physicians improve the quality of medicine they deliver to their patients. Enterprise: How has the recession impacted your business? Ashwood: We have seen several effects from the recession; budgets are tighter, hospitals are looking to make the most of every penny they have. Thus, the poor economy has led to an increase in pricing pressures from clients. Health care reform brings a different set of challenges to the health care industry, mostly because of the unknown. We simply don’t know how this new legislation will impact health care and for us how it will affect independent labs such as ARUP. Despite the current challenges, opportunities abound and ARUP’s patient-first philosophy is perfectly aligned with many of the goals and objectives of health care reform. We may not be able to predict the future, but our longstanding philosophies have positioned us perfectly to take advantage of the changes. Enterprise: ARUP is a “business-to-business” company, so you’re not necessarily dealing with patients directly. Who are your main clients? What percentage of your business comes from Utah-based hospitals? Ashwood: ARUP Laboratories serves hospitals

Ashwood

across the country, including more than half of all academic hospitals. Other clients include regional and other national reference laboratories. We serve a number of hospitals in the state of Utah, including University Hospital, Huntsman Cancer Institute and Intermountain Healthcare. About 15 percent of our work is from within Utah. Enterprise: What significant services does ARUP offer clients that the general public may not know about? Ashwood: We have long seen the importance of technology information in laboratory medicine and as part of medical care. We have a talented informatics team that works with some of our current offerings and is currently working to develop new tools to benefit our clients and their patients. We have a free awardwinning website, ARUP Consult, designed for physicians. Our medical directors and research and development staff publish medical articles frequently (more than 200 in the past 12 months). We are also a training site for University of Utah students, pathology residents, and fellows. Enterprise: Describe your journey from starting at ARUP 26 years ago and what you did initially, compared to where you are now. Ashwood: I started at ARUP in December 1985, after Harry Hill convinced me to leave a faculty position at the University of Washington. Thus, I left a laboratory with 300 staff to join one with only 100 staff. Since then, ARUP has grown in revenue 45-fold, and our staff has increased 28 times. My old UW lab has doubled. My first ARUP position was entirely focused on informatics, but in 1988 ARUP executives asked me to take the automated clinical chemistry laboratory. The next year I stepped in to direct all clinical chemistry laboratories. I joined the ARUP executive team in 1996, became director of Laboratories in 2002, and was appointed as president and CEO in 2009. Enterprise: At the time, could you ever have imagined that you’d be president/CEO

of one the nation’s largest labs, overseeing over 2,800 employees? Ashwood: Not only could I not image that future, I wasn’t even trying. I sought instead costeffective excellent patient care and exciting new tests. The promotions followed. Enterprise: What are some keys to ARUP’s growth over the years? Ashwood: The keys to our success and growth as a company have been very simple: focus on people. The three “people” that are key to our success are our employees, our clients and their patients. This has been our philosophy from the very beginning; the decision to put people ahead of profits wasn’t done because it was a good business decision, it was done because it was the right decision. As it happens, this philosophy is a sound business strategy. Enterprise: Is there any particular device(s) or technology that has been invented in past 25 years that really stands out as something that has been a great boon to the lab industry? Ashwood: Two newer technologies stand out in laboratory medicine: (1) techniques for DNA amplification and sequencing, and (2) mass spectrometry, which allows accurate and precise measurement of chemicals based on their electric charge and atomic mass. When ARUP started we had no DNA tests. We now offer more than 100 tests in genetics, oncology, and infectious diseases. In the early 2000s, we purchased our first mass spectrometer. We now have more than 40 mass spectrometers in five different laboratories. Enterprise: How much focus goes into the company’s R&D? Ashwood: ARUP Laboratories has a very robust R&D division; our Institute for Clinical & Experimental Pathology has more than 100 staff and 40 medical directors. Together they publish more papers than any other lab in the industry. They are charged with constantly improving the tests that we offer, developing new tests and searching for solutions, through diagnostic testing, for medical diseases. Enterprise: What does the future hold for ARUP? What is the underlying theme of everything your company does? ARUP is very fortunate to be part of the University of Utah. The fit is so good, that we hope it continues far into the future. We were not founded to be a spinoff, nor are we positioning ourselves for that outcome. The synergies of academia and clinical service make us very competitive. I anticipate, and hope, that we will remain so.


18

Sept. 19-25, 2011

The Enterprise

How Texas Medicaid wasted vast sums, lethally Both as governor of Texas how to deliver health care to more and as the leading Republican people in a less expensive way presidential candidate, Rick Perry than what the federal government has established himself as a harsh does. I need more states to stand critic of federal programs — and, up and say we don’t want your in particular, as a “state’s rights” strings attached. We don’t want advocate who accuses Washington you down here telling us how to of gross ineptitude and run our business.” waste in providing services If only Texas such as health care for the could operate wholly poor and elderly. independently of federal In his 2010 book Fed rules, he insisted, “you Up and in his campaign will see more people in speeches, Perry has often the state of Texas who asserted that the states, will have more coverage simply left to do the job and frankly we’ll save without federal interfer- Joe Conason money at the end of the ence, could perform far day, as will the federal better. The theme is highly government.” Although Perry was forced popular, like Perry himself, in Tea to abandon that scheme when a Party circles. “It is through states that the state report showed that leaving American people get the job done Medicaid would cost Texas bilevery day,” he wrote in his book, lions (and leave even more Texans “often in spite of a deeply flawed uninsured), he still claims that the bureaucratic federal government.” federal government should stop Late last year, when he proposed trying to make sure that more that Texas drop out of Medicaid Americans have health care, and altogether, he said: “We know that programs run solely by the

states would be more efficient. But lately the facts about Perry’s own record as governor have begun to emerge — and they don’t support his argument. Over the past several weeks, a Dallas TV station has exposed the “golden teeth” Medicaid scandal in Texas, now under investigation by the inspector general of the Department of Health and Human Services. The Perry appointees who run Medicaid have allowed hundreds of millions of dollars to be misspent on orthodontic braces for children who don’t need them — with huge profits for private dental clinics owned by Wall Street hedge funds. Nor is that the only aspect of Perry’s record that belies his boasting. One of the most embarrassing episodes during his first two terms as governor involved a plan to let private firms run Medicaid, replacing state employees. The privatization plan was an “innovation” that was supposed to save money. What it accomplished

instead was to earn enormous sums for contractors like Deloitte Touche and Accenture (along with their Texas lobbyists), while costing taxpayers still more hundreds of millions of dollars — and all without achieving its most basic objectives. Four years after the plan was implemented in 2003, the Austin American-Statesman published a thorough report on its results, and what the newspaper found was a project “in shambles.” The state had been forced to cancel its contract with the Accenture group and continue to use state employees to perform necessary work on an outdated computer system, exactly the same as before Perry’s privatization scheme began. How much had this great innovation cost the state? Approximately $500 million, not including the amount spent using the old system, at roughly $1 million a month. Unfortunately this fiasco wasted more than money and time, as paperwork vanished

and patients suffered. As the Statesman reported, it may well have cost a 14-year-old boy named Devante Johnson his life. Left without health insurance for several months because of the Texas Medicaid enrollment bureaucracy, the Houston boy could not get treatment in time to save him from the kidney cancer that eventually killed him in March 2007. While it isn’t clear yet whether his administration’s Medicaid operations were corrupt or incompetent or both, none of this has fazed Perry at all. He went on to reappoint the Texas health and human services commissioner who oversaw the entire mess — and then to run for president himself, as the populist who will “reform” Social Security, Medicare and, of course, Medicaid. Joe Conason is the editor in chief of NationalMemo.com. Copyright 2001 Creators.com


Sept. 19-25, 2011

19

The Enterprise

Back to the future? Those who are impressed poured down a bottomless pit. by words seem to think that Are we to keep on doing the same President Barack Obama made a things, just because those things great speech to Congress earlier have been repackaged in different this month. But, when you look words? beyond the rhetoric, what did he Or just because Obama now say that was fundamenassures us that “everytally different from what thing in this bill will be he has been saying and paid for”? This is the doing all along? same man who told us Are we to continue that he could provide doing the same kinds of health insurance to milthings that have failed lions more people withagain and again, just out increasing the cost. because Obama delivers When it comes Thomas clever words with style and to specific proposals, Sowell energy? President Obama repeats Once we get past the the same kinds of things glowing rhetoric, what is the presi- that have marked his past policies dent proposing? More spending! — more government spending for Only the words have changed — the benefit of his political allies, from “stimulus” to “jobs” and the construction unions and the from “shovel-ready projects” to teachers’ unions, and “thousands of transportation projects.” “jobs for construction workers.” The fundamental fallacy in If government spending were the answer, we would by now all of this is the notion that politihave a booming economy with cians can “grow the economy” by plenty of jobs, after all the record taking money out of the private trillions of dollars that have been sector and spending it wherever

it is politically expedient to spend it — so long as they call spending “investment.” Has Obama ever grown even a potted plant, much less a business, a bank, a hospital or any of the numerous other institutions whose decisions he wants to control and override? But he can talk glibly about growing the economy. Arrogance is no substitute for experience. That is why the country is in the mess it is in now. Obama says he wants “federal housing agencies” to “help more people refinance their mortgages.” What does that amount to in practice, except having the taxpayers be forced to bail out people who bought homes they could not afford? No doubt that is good politics, but it is lousy economics. When people pay the price of their own mistakes, that is when there is the greatest pressure to correct those mistakes. But when taxpayers who had nothing to do

with those mistakes are forced to pay the costs, that is when those and other mistakes can continue to flourish — and to mess up the economy. Whatever his deficiencies in economics, Barack Obama is a master of politics — including the great political game of “Heads I win and tails you lose.” Any policy that shows any sign of achieving its goals will of course be trumpeted across the land as a success. But, in the far more frequent cases where the policy fails or turns out to be counterproductive, the political response is: “Things would have been even worse without this policy.” It’s heads I win and tails you lose. Thus, when unemployment went up after the massive spending that was supposed to bring it down, we were told that unemployment would have been far worse if it had not been for that spending.

Are we really supposed to fall for ploys like this? The answer is clearly “yes,” as far as Obama and his allies in the media are concerned. Our intelligence was insulted even further in President Obama’s speech to Congress, when he set up this straw man as what his critics believe — that “the only thing we can do to restore prosperity is just dismantle government, refund everybody’s money, and let everyone write their own rules, and tell everyone they’re on their own.” Have you heard anybody in any part of the political spectrum advocate that? If not, then why was the President of the United States saying such things, unless he thought we were fools enough to buy it — and that the media would never call him on it? Thomas Sowell is a senior fellow at the Hoover Institution, Stanford University, Stanford, CA 94305. Copyright 2011 Creators.com


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The Enterprise-Utah's Business Journal, Sept. 19, 2011