az business magazine november/december 2012
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Arizona Business Magazine is the state’s leading bi-monthly business publication. Published by AZ Big Media, the magazine covers a wide-range of topics focusing on the Arizona business scene, and is aimed at high-level corporate executives and business owners.TRANSCRIPT
NOVEMBER // DECEMBER 2012
SPIRIT OF ENTERPRISE
.78CFO OF THE YEAR AWARDS
.40ARIZONA FORWARD
.97$4.
95
CONNECT » GUIDE » INSPIRE
ROBERT SARVER, CEO OF WESTERN ALLIANCE BANCORPORATION AND OWNER OF THE PHOENIX SUNS
ARIZONA BANKERS WARN:DEFICIENCY LAWS STIFLINGTHE ECONOMIC RECOVERY
STATUTE ofLIBERTY
BRANDING AZ
.72
10/12A division of Western Alliance Bank. Member FDIC.Western Alliance Bank is an affiliate of Western Alliance Bancorporation
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Ed ZitoPresident Alliance Bank of Arizona
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URBAN phoenix
Sales by Cambridge Properties Inc. Keith Mishkin, broker, licensed in the State of Arizona. Square footage is approximate and may vary. This material is not an offer to sell real property and shall not be construed as an offer in violation of the law of any jurisdiction. No Federal or State agency has judged the merits or value if any, of this property. Obtain all relevant
documents, disclaimers, and covenants, and read them before signing anything.The depictions herein may reflect building, amenities and improvements some or all of which may be conceptual only, and subject to change without notice. All brokers welcome. Prices, terms, incentives, material, and availability subject to change without notice. Subject to Public Report. © 2012 All rights reserved.
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4 AB | November-December 2012
Table Of Contents
Az Business on the Go:AzBusinessMagazine.com
Alpha CEO robert Sarver balances basketball and banking
Alpha First Job Desert Subway’s Mark roden loves giving back
Small Business Image Ave Studios adapts business to stay in focus
Alpha Women Joan Brubacher fuels resolute Commercial Services
Education ASU center helps businesses deliver better services
AzTech: HEAT • Arizona on the road to becoming bioscience leader • Zylstra: State needs more access to angel investors
Law Need $1 million? Crowdfunding may help you
Turnaround Management TMA honors those that help businesses rebound Health Does your wellness program pass a legal check-up?
Arizona Bankers Association • Experts: State’s defi ciency laws are crippling industry • Anatomy of a bank: A look at its business model
CFO of the Year A look at the 20 fi nalists who make up a class of Arizona’s fi nancial landscape for 2012
Branding AZ What it takes to create the the biggest buzz in business
Corporate Angels Giving back proves to be good for business
Arizona Forward • Organization transitioning into a statewide focus • State must ease transportation problems to compete
michael gossieEditor in [email protected]
bring on the HEATTh e valley of the Sun has
created the perfect climate for tech startups.
Don’t believe me? What if I told you the valley is almost as prolifi c as Silicon valley for producing tech startup com-panies? Would you believe it? You should, because it’s a fact.
according to an analysis from SizeUp, a San Fran-cisco–based provider of free business intelligence for small and mid-sized businesses, the valley boasts two cities — Chandler and Mesa — among the nation’s top 10 cities with the most tech startups per capita. Silicon valley had three cities in the top 10.
and Chandler, home of Intel and Microchip tech-nologies, ranks ahead of tech darling austin, texas, which beat out arizona to land apple’s new facility along with about 3,600 jobs.
Th e rankings illustrate the valley’s emergence as a hotbed for tech startups — computers, software, medical devices and electronics — and as an economic leader in technology- and research-driven industries.
and as technology drives arizona’s economy, it also drives our coverage of arizona business. Over the last several issues, we have been beefi ng up our coverage of all things tech-related. and in this issue, we take it one step further with the debut of a new section called heat, an acronym for healthcare, energy, aerospace and technology.
heat will take you inside all those issues that will drive arizona’s economy during its second century. We’ve all known for a long time that arizona is known for it’s heat. but soon, it will be the heat that defi nes arizona.
810121416182428303249728397
Cover photograph by Cory bergquist.
6 AB | November-December 2012
AZ Business magazine is published bi-monthly by AZ BIG Media, 3101 N. Central Ave. Suite 1070, Phoenix, Arizona 85012, (602) 277-6045. The publisher accepts no responsibility for unsolicited manuscripts, photographs or artwork. Submissions will not be returned unless accompanied by a SASE. Single copy price $4.95. Bulk rates available. Copyright 2012 by Arizona Business. All rights reserved. No part of this publication can be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system, without permission in writing from AZ BIG Media.
prESiDENT & CEO: MIChael atKInSOn
publiSHEr: CheRYl GReen
viCE prESiDENT OF OpErATiONS: aUDReY Webb
EDITORIAL
EDiTOr iN CHiEF: MIChael GOSSIe
EDiTOr: peteR MaDRID
ASSOCiATE EDiTOr: KRIStIne CannOn
iNTErNS: aRSelIa GaleS • DanIel eSCObeDO • CaROlIna lOpeZ tRavIS MCKnIGht • COOpeR RUMMell • JUlIa SWeM
ArTSENiOr grApHiC DESigNEr: ChRIStIn GanGI
SENiOr grApHiC DESigNEr: MIKe MeRteS
CONTribuTiNg pHOTOgrApHEr: CORY beRGQUISt
iNTErN: GlORY ShIM
DigiTAl mEDiAWEb DEvElOpEr: eRIC SheppeRD
WEb & grApHiC DESigNEr: MelISSa GeRKe
mArKETiNg/EvENTSmANAgEr: WhItneY FletCheR
iNTErNS: abRIelle SWISheR • bRIttanY haRRIS
OFFiCESpECiAl prOJECTS mANAgEr: SaRa FReGapane
ExECuTivE ASSiSTANT: MaYRa RIveRa
DATAbASE SOluTiONS mANAgEr: CInDY JOhnSOn
AriZONA buSiNESS mAgAZiNESENiOr ACCOuNT mANAgEr: DavID haRKen
ACCOuNT mANAgErS: ShannOn SpIGelMan • aRthUR alCala
AriZONA COmmErCiAl rEAl ESTATEACCOuNT mANAgErS: Steve KOSlOWSKI • MIChelle MCbaY
rANKiNg AriZONAviCE prESiDENT / SAlES & mArKETiNg: lenORe GRObSteIn
DirECTOr OF SAlES: SheRI KInG
ExpEriENCE AriZONA/plAY bAllDirECTOr OF SAlES AND mArKETiNg: SCOtt FIRle
SCOTTSDAlE liviNgACCOuNT mANAgErS:
SUSan haRKen • MaRIanne avIlla
AZ big mEDiA ExpOS
SCOttSDale SUpeR eXpO/nOveMbeR SCOttSDale SUpeR eXpO/apRIl
ExHibiT DirECTOrS: KeRRI blUMSaCK • tIna RObInSOn • SheRI KInG
HOmE & DESigN iDEA CENTErSHOWrOOm mANAgEr: JOanne StanleY
ACCOuNT mANAgEr: MaRIanne avIla
EvENT COOrDiNATOr: SaRa FReGapane
Shout OutsgiviNg iS iN THEir JEANS
Steptoe & Johnson’s phoenix offi ce has raised almost $100,000 for charities and nonprofi t groups in arizona by allowing
employees to wear jeans on Fridays in exchange for a contribu-tion of $5 or more toward a charity, which rotates weekly. Since 2005, the “Casual Day” fund has raised more than $95,000 for organizations, including the arizona Red Cross, hospice of the valley, St. Mary’s Food bank and the pat tillman Foundation.
App WATCHES OuT FOr YOur EYESSouthwestern eye Center has developed a mobile application designed to make it con-venient for patients to take eye care mobile.
Th e app makes it simple to make or change appointments, refi ll medication, request records and ask questions. patients can look up biographies of doctors, view locations, hours and phone numbers, and watch educational videos. Th e app is available for iphone, ipad and android devices.
HElpiNg HumANiTYMutual of Omaha bank recently purchased more than
two dozen non-interest bearing mortgages originated by habitat for humanity Central arizona. hFhCaZ has been able to invest the money to build, renovate and repair aff ordable homes in partnership with families in need. Since 2009, Mutual of Omaha bank has contributed nearly $8.1 million in capital to hFhCaZ, helping more than 500 families in central arizona.
TAKiNg SOlAr STATEWiDEapS’ Solar for Schools and Government program — a cooperative eff ort to enable publicly funded K-12 school districts, publicly
funded charter schools and government entities to save money with solar power — has helped spark solar installations in rural parts of arizona. harmon Solar executives expect the program to off set 62,000 megawatt hours of energy consumption over its fi rst three years — the equivalent to removing 5,400 cars from the road.
A FrEE EDuCATiONMillions of students are taking free “mas-sive open online courses,” or MOOCs, but
education experts are asking two questions: Will universities off er credit for the courses, and how can cheating be prevented? Colorado State University’s Global Campus, an independent online univer-sity, answered both questions when it became the fi rst american institution to off er three transfer credits to students who complete a free course off ered by Udacity and take a proctored test.
the good of the
GAME
The GAME is on during Waste Management Phoenix Open week. Day and
night. And, thanks to the GAME, The Thunderbirds give millions of dollars each
year to hundreds of Valley charities. Your support of the Waste Management
Phoenix Open helps enrich the quality of life for so many. GAME ON!
J A N U A R Y 2 8 — F E B R U A R Y 3 , 2 0 1 3 • T P C S C O T T S D A L E
See You at the Open!
Kyle 8x10.875_. 10/22/12 3:31 PM Page 1
8 AB | November-December 2012
alpha THE CORNER OFFICE
Which hat do you like to wear most: Suns owner or bank CEO?
On the night of a victory, owner of the phoenix Suns. On the night of a defeat, I’d rather be a banker.
Are there qualities that you look for both in a head coach and in bankers you hire?
They both have to be able to inspire people, motivate people, and bring out the best in the people that are working for them. They both have to have a vision and philosophy that those who work for them are ready to follow and work hard for.
Why did you choose banking at such a young age?My dad was in the savings and loan business, and I started out
working after school. My senior year in college, one of my professors helped me write a business plan to open up a community bank.
Are there lessons you’ve learned in banking that you carry over into management of the Suns?
a lot of it has to do with management and hiring the right people, motivating the right people, retaining the right people, putting them in the right position, keeping your customer happy, and exceeding your customer’s expectations. That’s true whether you’re selling banking services or seats to a basketball game.
What has been your biggest challenge as a CEO in the banking industry?
Dealing with the cyclical nature of our economy and struggling
VITAL STATS: ROBERT SARVER Bought the Phoenix Suns from Jerry Colangelo in the spring of 2004. Son of Jack Sarver, a prominent Tucson businessman, banker and hotel developer who built the Aztec Inn, the Plaza International Hotel (now a Four Points by Sheraton). Graduated from the University of Arizona with a bachelor’s degree in business administration in 1982. Founded the National Bank of Arizona (then the National Bank of Tucson) at age 23 in 1984. He sold it to Zions Bancorporation in 1994. Father of three boys: Max, Jake and Zach. His Paradise Valley home has 12 patios, room for 12 cars in the garage, and a basketball court in the backyard with the Phoenix Suns logo emblazened on it.
RObeRt SaRveRCEO of Western Alliance Bancorporation and owner of the Phoenix Suns
through a tough recession. I think I’ve worked the hardest I’ve ever worked over the last five or six years.
What has been your biggest challenge as owner of the Suns?
basketball is a very humbling business. If you win 65 percent of your games, that’s a good year. That’s hard to deal with for someone who has been in business and been successful more than 90 percent of the time. So trying to make good decisions for the basketball team that balance short-term goals with long-term goals has been the biggest challenge.
You’re very active in the community. What efforts are you particularly proud of?
I’m really happy with my wife and my involvement with the Sarver heart Center, which developed Continuous Chest Compres-sion CpR, a hands-only CpR method that doubles a person’s chance of surviving cardiac arrest. Our efforts are literally saving lives.
We are also working on something this year with Suns Charities to improve the graduation rate, and we are starting with Central high School. We’ve hired additional teachers and tutors to help improve its graduation rate. My son goes to brophy — which is right next to Central — and we like to get to the point where a kid that goes to Central will have the same opportunities as the kid that goes to brophy. If we can do that, we’ve really made a difference.
How is the team shaping up for this season?We’ve had a lot of change. We’re transitioning, but we’re trying
to shorten than transition period it takes a team to get back to elite status. We got younger, we got more athletic, so I think we have a number of nice pieces in place. This is going to be a fun year to watch.
photograph by CORY beRGQUIStIn a perfect world, saving endangered species like whales and sharks would be everyone’s responsibility. The question is, how can we make this world more perfect? Right now, Embry-Riddle researchers are designing low-cost, unmanned aerial vehicles (UAVs) that will fl y 400 feet above the waters of Galapagos Island National Park. While doing so, they will stream live video onto the web, so anyone, anywhere can monitor the area for the poachers who decimate our wildlife. Yes, at Embry-Riddle we aim for the stars. But we always keep home close to our hearts.
www.embryr idd le .comSCAN TO SEE US IN ACTION
How the wor ld’s premier aerospace univers i ty looks af ter some
fe l low passengers on spaceship earth .
ER.AzBusinessMagGalap.indd 1 10/1/12 7:06:20 AM
In a perfect world, saving endangered species like whales and sharks would be everyone’s responsibility. The question is, how can we make this world more perfect? Right now, Embry-Riddle researchers are designing low-cost, unmanned aerial vehicles (UAVs) that will fl y 400 feet above the waters of Galapagos Island National Park. While doing so, they will stream live video onto the web, so anyone, anywhere can monitor the area for the poachers who decimate our wildlife. Yes, at Embry-Riddle we aim for the stars. But we always keep home close to our hearts.
www.embryr idd le .comSCAN TO SEE US IN ACTION
How the wor ld’s premier aerospace univers i ty looks af ter some
fe l low passengers on spaceship earth .
ER.AzBusinessMagGalap.indd 1 10/1/12 7:06:20 AM
10 AB | November-December 2012
alpha FIRST JOB
What was your first job?I worked as a counter attendant at (now defunct)
Red barn Restaurants in White bear lake, Minnesota. I made everything from fries to shakes to fish sand-wiches as well as took orders from customers.
What did you learn from your first job?I definitely learned about responsibility as well as balancing
wants and needs ... Most importantly, working together as a team was critical, and that you sometimes have to work with people you don’t love and do work that isn’t much fun.
Describe your first job after college.I graduated from the Red barn to working in a grocery store
in college. after starting by stocking shelves, I eventually rose in ranks to management by the time I graduated. I was a guy with a lot of ideas, but sometimes big companies aren’t very flexible about trying ideas that carry risk. I got frustrated and wanted to see if I could build a better mousetrap myself.
What lesson did you learn in that job that still helps you today?
I learned that there are lots of talented people other there, but if they are all in the same room talking at the same time that chaos ensures; that hard work deserves to be rewarded; that personal connections matter; and that passion is critical to success. I take all this to heart as an entrepreneur. today, I like to walk into my stores just to thank our sandwich artists and managers and talk to them about their passions and goals one on one. If you show people you care, then they will, too.
How did you develop your entrepreneurial spirit?
In 1986, just months before I graduated from aSU, my father passed away. In the last face-to-face conversation we ever had, he talked to me about the importance of being one’s own boss, carving one’s own road. Knowing he was right, but not quite sure
MaRK RODenPresident, Desert Subway, which operates more than 60 Subway franchises
which road I would yet take, I went back to aSU for a master’s degree. about that same time, my brother-in-law started talking to me about opening a Subway restaurant together. The only Subway in arizona was right by my house, and every day I would stop by and get a cheese sandwich to go. Shortly thereafter, an opportunity to expand Subway in arizona came up. My desire to have my own business and the Subway opportunity all kind of came together at the time when I was looking to do something different. Over the first 70 days in business, we grew quickly to three Subway loca-tions.
Why is giving back to the community so im-portant to you?
Giving back is so important to us that in 1999, several franchi-sees partnered together to start Subway Kids & Sports of arizona, a nonprofit organization that provides sports equipment, uni-forms, registration fees, and access to major sporting events for kids who might not otherwise be able to participate. The organiza-tion’s biggest fundraiser, our annual Subway Kids & Sports of ari-zona Golf tournament, has been a staple of the valley for several years. I proudly serve as this organization’s executive director as well as chair of the tournament, in addition to volunteering with big brothers big Sisters and several other great causes in arizona.
What accomplishment are you most proud of?aside from my daughter, who is now 10 years old and the best
part of my life, I am proud that we have been able to build an organization that provides employment and advancement oppor-tunities to many, as well as enough success to give back to the local communities that we serve each day.
photograph by CORY beRGQUISt
AB | November-December 2012 11
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12 AB | November-December 2012
alpha SMALL BIZ
There’s a quaint studio located in the east valley that houses beautiful backgrounds, sets and camera equipment that can make any business owner or musician feel like a rock star. With its innovative technology, it is no wonder why so many different customers flock to Image ave Studios, which is located on the border of
Chandler and Gilbert. While the brand-new studios opened just three years ago, this video production company has deep roots in arizona that go back almost 40 years.
Founded in 1972 by arizona native James Rinkenberger when he was just out of college, the company started out offering only photography and other media production services. as the business became successful, Rinkenberger discovered an opportunity that would allow him to expand his business and reach more clients throughout the valley. Rinkenberger decided that in addition to his photography services, he would also offer video production services to local companies. From this concept arose video Media productions in 1975, which strived to create videos for businesses that would increase business-to-business communication.
“The challenge for me was, ‘Does anybody want what I do?’ ” Rinkenberger said. “I wanted to create clear and concise images to communicate. I have been passionate and overzealous about this topic because visually, in the 1970s, people just were not trained properly.”
The studio quickly made a name for itself in the arizona busi-ness community, and soon, video Media productions landed big-name clients — including the United States Supreme Court for a campaign to allow cameras in the courtroom; the national Guard during Operation Desert Storm; various cities to promote Senate bills; and with president Ronald Reagan on a public service announcement for the boy Scouts of america.
as video Media productions continued to evolve, Rinkenberger
wanted to create a definitive space for producers and their clients. So, in 2009, James founded Image ave Studios, a com-pany that combined his video and photo companies and allowed both businesses to operate as one entity. very quickly, how-ever, the company faced challenges because of the economic crisis. Despite the economic setback, Image ave Studios was able to stay afloat by continuing to think of methods that differentiated itself from the competition.
“Starting in the middle of a recession, it made my company more creative and more efficient,” Rinkenberger said. “It is a whole new world now because there are so many creative kids, and they offer their services cheaply. The only difference is that we have more experience with creating and meeting the needs of busi-nesses today. We have had to re-invent ourselves, and we have had to find more ways to fit in. Our success back then doesn’t mean anything now.”
even with early hardships, Image ave Studios has proved that it can stand the test of time. as Rinkenberger approaches retire-ment, he hopes his company will live on and that his love and passion will be shared with generations to come.
“My dream for the future of my business is, I’d like to pass the studio down to someone,” Rinkenberger said. “It has to be some-one who is passionate and loves making communication processes for businesses like I do.”
Image Ave Studios175 S. Hamilton Place, #115, Gilbert(602) 926-0118 imageavestudios.com
In bUSIneSS, IMaGe IS eveRYthInGvalley media company has been able to creatively adapt for 40 years
by DanIel eSCObeDO
James Rinkenberger founded Image Ave Studios, a company that combines his video and photo companies.
AB | November-December 2012 13
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14 AB | November-December 2012
alpha WOMEN
Joan brubacher is a gas.Well, she knows gas — and how to account for it. “Growing up in Kansas, my dad was a fuel dis-
tributor,” said brubacher, chief financial officer for Resolute Commercial Services, a Scottsdale-based receivership and corporate renewal firm. “he also loved math, just like me.”
at only 14, number-loving brubacher was working as her fa-ther’s bookkeeper. by college, the self-proclaimed tech geek would choose to crunch numbers for life, earning an accounting degree from Kansas State University.
Recruited by ernst & Whinney (now ernst & Young) out of col-lege, gas would continue to drive brubacher: One of her first audit clients was a convenience store and fuel distributor.
and it wouldn’t be her last.after putting in her time with the big Four — and getting mar-
ried — brubacher joined her father in the family business as its CFO.
“My father, husband and I decided to grow the business to-gether,” brubacher said. “In less than a decade, we grew from one to 19 locations statewide.”
eventually, however, arizona would come calling when her hus-band decided to take a great business opportunity in the valley in 1989. For the first time since she was 14, brubacher had nothing to account for except her husband and two young daughters.
embracing her inner tech geek, she eventually earned CFO posi-tions with several high-tech companies over the next two decades. One company — iGo — she would help take public in the 2000s.
While working on the IpO, she became friendly with colleague Jerry Foster.
“he was a staunch supporter of the community — and his pas-sion was contagious,” brubacher said.
before she knew it, she had joined Foster as a member of the board of directors for Junior achievement of arizona as well as branched out on her own, volunteering on the board with and serving on several committees for the Fresh Start Women’s Foun-dation and Financial executives International, among others.
and after the IpO, Foster had other plans for her as well.“Jerry had co-founded Resolute Commercial Services in 2008 as a
receivership organization assisting businesses with complicated debt and other issues in the midst of the recession,” brubacher said.
She joined Resolute as CFO in 2009 and has helped expand the firm into California, nevada and texas. Most recently, she has also helped drive the business in another direction.
“Often, receivership can be avoided if we can get in and help a business early enough,” said brubacher, who has spearheaded this proactive approach over the past year on behalf of lenders and debtors alike.
among her biggest clients — convenience stores and gas sta-tions, of course. She has assisted more than 30 locations nation-wide already in addition to physician practices, car washes and construction businesses, among others. brubacher finds that her background in finance and operations makes her uniquely quali-fied to assist businesses with their operational and financial issues, regardless of the industry.
“life really does come full circle,” brubacher said.
by alISOn baIlIn batZ photograph by CORY beRGQUISt
FUeleD FOR SUCCeSSbrubacher makes an impact on financial industry and on the community
5 Best: Female leadersBest companies are diverse, and it’s no surprise that exemplary female
leaders are found at many of Arizona’s 100 Best. BestCompaniesAZ, a leader in identifying, developing and promoting great workplaces, is celebrating its 10th anniversary by recognizing the 100 Best Companies in Arizona. These ‘best of the best’ appear in a special commemorative magazine produced by BestCompaniesAZ and Republic Media Custom Publishing. “Building a positive workplace culture makes a positive impact on the bottom line, and our 100 Best Companies have enjoyed success as a result,”
said Denise Gredler, founder and CEO of BestCompaniesAZ. “We are proud to showcase companies that demonstrate strong leadership, including these ve organizations that have thrived with outstanding female leaders.” The 100 Best demonstrate diversity, sustainability, excellence, innovation, leadership, employer branding and company culture. The ve featured leaders illustrate best practices and share a common goal...to be the best. Visit bestcompaniesaz.com for information on building your best company and to learn more about the 100 Best Arizona Companies.
S P E C I A L A D V E R T I S I N G F E AT U R E
Learn more about these innovative companies and review the 100 Best Companies at BestCompaniesAZ.com
BEST OF HE ART TR AILBL A ZERBEST OF STARS TR AILBL A ZER BEST OF STARS
Casa Grande Regional Medical Center is
a wonderful blend of small-town atmosphere with advanced technology – such as a cardiac cath lab or high-de nition MRI – found in a major metropolitan setting. Our employees describe themselves as family and they treat our patients as extended family while providing exceptional care. Over 70% of our employees are female, and we have a exible environment conducive to the success of women. With an infection rate at .2 percent, compared with the national average of 2.5 percent, our 187-bed facility is successfully putting quality, patient safety and outstanding customer service at the forefront of all we do. In addition, our staff feels passionately about our community and reaches out to those in our service area through volunteer, charitable and educational efforts.
We are a mission-driven organization
that believes in honoring the inherent dignity of each individual. That means providing the best care possible for our patients, and it means collaborating with others to improve the overall health of our community. It also means creating an outstanding work environment for our employees — an environment that values their contributions and encourages them to grow and expand their skills and talents. Our employees touch hundreds of lives every day, and they are crucial to the success and continuation of our important mission. As health care changes, our employees will help to develop new innovations and treatments of care. Our goal is to foster that creativity and innovation, which will in turn improve the health of those we serve.
Ever since Charles Schwab & Co. was
founded in the early 1970s, one of its basic principles has been to make investing more accessible and help people make strides towards nancial tness. That includes its own employees, since many Schwab employees are also clients; and we ensure employees have access to strong nancial resources. Our culture is very focused on teamwork. We take a strengths-based approach when matching people with projects, so we’re able to bring out the best in everyone. Women make up a crucial part of our talent base, and we support their growth through internal resource groups like the Women’s Interactive Network at Schwab (WINS). Real support for work/life balance through programs for new mothers and paid sabbaticals underscores our commitment to women.
We are in the business of building
relationships, both with our customers, and with our employees who serve them. While employees are focused on delivering Relationship Care® to our customers, the workplace itself enables them to be passionate about what they do while taking care of themselves. We provide a number of forums and opportunities for employees to get involved in networking, career development, improving job skills and having fun together. The Women’s Interest Network (WIN), for example, supports American Express’ more than half female workforce here in Arizona through a variety of formal and informal opportunities like mentoring, development, seminars and networking. A dozen other employee diversity networks offer similar opportunities for parents, veterans and more.
At WorldatWork, the signi cance of family
is not only understood but honored. You’ll nd a level of care and concern for the individual – and the individual’s family – that is rare in the workplace. We live and breathe exibility and wellness, and we provide assistance and support to make sure that everyone here can be engaged, productive and focused on what’s important in life. I’m proud to say we are a multi-year recipient of the Alfred P. Sloan Award for Business Excellence in Workplace Flexibility and have been recognized as one of the Top 25 Workplaces for Women in Arizona. We recognize our employees have lives, not just business hours. Our people are our most important asset and we make sure their work is invigorating, satisfying and engaging.
RONA CURPHYPresident and CEO
520-381-6300 CasaGrandeHospital.com
LINDA HUNTPresident and CEO602-406-3000
DignityHealth.org
PAT JOHNSONVice President,
Client Service Operations800-435-4000
AboutSchwab.com
TAMMY WEINBAUMSenior Vice President & General Manager
623-492-7474AmericanExpress.com
ANNE C. RUDDYPresident and CEO
480-951-9191WorldatWork.org
CLIENT: BestCompaniesAZ PUBLICATION: Arizona Business Magazine ISSUE: November/December 2012 TRIM SIZE: 8" x 10.875"DESIGNER: Lisa Quirin (602) 743-5472 [email protected]
BCAz_FP 5BestAD2 R3.indd 1 10/12/12 12:45 PM
16 AB | November-December 2012
Customer service was once viewed as the cost of doing business.
“across almost every industry, leaders are focusing on service as a way to compete in today’s competitive marketplace,” says Mary Jo bitner, academic director for the Center for Services leadership at arizona State University’s W. p.
Carey School of business.but times have changed. Companies that are in search of new
revenue streams are fi nding that in addition to providing great customer service, off ering value-added services to their product lines are helping their bottom lines. and to help them make the most of the opportunities, many are seeking help from the aSU Center, which focuses on research and executive education in managing and marketing services.
“Customer demand and the competitive challenges posed by the commoditization of many products has pushed many goods-based companies to take another look at services as a source of revenue and profi t,” says Director of the Center for Services leadership, Stephen brown, who has spent the past 20 years tracking the growing importance of services as a product. “Many are following market leaders to become goods-and-services companies.”
For example, boeing has broadened its off erings by adding the lucrative market of services to its aircraft manufacturing. Th e hewlett packard and Compaq merger created a new company whose major product is services. IbM’s impressive fi nancials over the past decade — in shining contrast to its competitors — were largely the result of its service businesses.
“In 2001, we were launching our fi rst fee-based service busi-
ness,” says Steve Church, president of avnet Integrated and chief corporate business development and planning offi cer. “We wanted to off er more services and solutions. We knew a lot, but there was a lot we didn’t know.”
Church says avnet’s membership in the center — which con-centrates on expanding service innovation by combining the latest scientifi c insights from the academic world with the best of busi-ness strategy in the real world — allowed the company to “build a culture of service excellence that focuses on the customer and gives each a great customer experience.”
Th e Center, which was created in 1985, remains the only one of its kind in the United States, devoted to research and education in the services fi eld. Its research fi ndings form the foundation of the Center’s executive education program, attended by managers and executives of leading fi rms. Member companies include at&t, Charles Schwab and Co., Ford Motor Company, IbM, Mayo Clinic and others, who sponsor research, fund scholarships, host Mba student teams and participate in executive education.
Many member companies sponsor research that is published in academic journals, and shared at the Center’s executive educa-tion forums. bitner, for example, has been studying the eff ects of self-service technologies (SSt), working with Ford and a major pharmaceutical benefi ts management company.
“Th e Center is really a tremendous resource for any company that has a strategy to to improve customer serve or add services to augment its products,” Church says. “We learned that by getting our employees engaged in customer service, we built customer loyalty, it helped us compete, and it enhanced our fi nancial performance.”
aSU’s Center for Services leadership becomes a resource for companies to fi nd profi t through services
EDUCATIONby MIChael GOSSIe
at YOUR SeRvICe
AB | November-December 2012 17
AAA of ArizonaAbbott DiagnosticsAbbott Medical OpticsAgile Pursuits Franchising, Inc.(a Procter and Gamble Company)Agilent TechnologiesAudatexAvnetBlue Cross Blue Shield of ArizonaThe Boeing CompanyCardinal HealthCharles Schwab & Co.Cisco SystemsThe Co-operatorsCox CommunicationsCubic Transportation SystemsCVS CaremarkDow ChemicalDuPont Sustainable SolutionsEdward JonesFedExFirst SolarFujitsu Network CommunicationsGEGE EnergyGE HealthcareGenpactGravell Insights, LLC.Harley-Davidson MotorCompanyHoneywell AerospaceIBM Global ServicesThe INSIGHT GroupIntel Corp
La Jolla Cosmetic Surgery CentreLutron ElectronicsMarriott International, Inc.Mayo ClinicMcKinsey & Company, Inc.Michelin USANational Industries for the BlindNJVCNOVO 1 Contact CentersOraclePearson School SystemsPetSmartRepublic ServicesSAP Labs LLCServigisticsSiemens IndustriesSonora Quest LaboratoriesSouthern California EdisonSouthwest AirlinesState Farm Insurance CompanySymantecTriWest Healthcare AllianceUSAAUnited StationersVocera CommunicationsVWR InternationalWestinghouse Electric Co.Zane’s Cycles
MEMBER FIRMSHere are some of the companies that are members of the Center for Services Leadership at the W. P. Carey School of Business at Arizona State University. To learn how to become a member, visit wpcarey.asu.edu:
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18 AB | November-December 2012
AzTECH: HEAT (HEALTHCARE, ENERgy, AEROSPACE AND TECHNOLOgy)
When arizona’s bioscience Roadmap was put into place a decade ago, the 10-year plan was an invitation to innovation.
The state has accepted that invitation with open arms.
“The bioscience Industry has directly, positively impacted the arizona econo-
my through our recent Recession,” said Derek Kirkland, life science leader for DpR Construction, which has built more than $600 million in bioscience projects over the life of the biosci-ence Roadmap. “It has allowed arizona to maintain and grow a construction workforce, which has shown a resurgence since late 2010.”
The success of the Roadmap, a long-term plan to make the state’s bioscience sector glob-ally competitive, is undeniable and quantifi-able.
JObS: arizona bioscience employment saw vigorous growth of 7.4 percent during the post-recession period of 2009-10, even as the state’s overall private sector lost 1.8 percent. From 2002 to 2010, bioscience jobs increased by 41 percent in arizona, adding nearly 28,000 jobs for a total of 96,223. The U.S. posted an 11 percent gain in bio jobs during this span.
FirmS: The number of bioscience establishments in arizona rose 27 percent from 2002 to 2010, increasing from 682 to 867. This compares with 20 percent growth for the U.S. The research, testing, and medical-labs sub-sector remains the largest in arizona, with 436
establishments, and since 2002 has expanded fastest, growing 49 percent.
WAgES: bioscience workers in arizona earn an average annual salary of $55,353, compared with $42,858 for all private-sector in-dustries. From 2002 to 2010, salaries increased 27 percent.
NATiONAl iNSTiTuTES OF HEAlTH grANTS: In 2011, arizona received $184.1 million in funding from the nIh, the indus-try gold standard. That total is smaller than 2009 and 2010, which
were boosted by nIh federal-stimulus awards, but 14 percent higher than 2008. From 2002 to 2011, nIh funding in
arizona grew faster (25 percent) than the top-10 funded states (20 percent) and the overall U.S.
(17 percent).rESEArCH AND DEvElOpmENT Ex-
pENDiTurES: bioscience-related academic research and development expenditures at arizona’s universities reached $437.1 mil-lion in 2009 (the most recently available data). This represents a 56 percent gain since 2002, slightly higher than the overall U.S.
growth (55 percent).vENTurE CApiTAl: arizona rebounded
from a difficult 2010 with a 2011 total of $69 mil-lion in bioscience venture capital. This represents the
second-most productive year since 2002, though it is still short of the Roadmap goal of $100 million.
implEmENTATiON: Of the 19 action items in the Roadmap rec-ommended by battelle in 2002 to achieve over 10 years, progress has been made on 18, or 95 percent, including substantial progress on 10.
tappInG IntO State’S pOtentIalbioscience Roadmap has led arizona down the path of innovation
by MIChael GOSSIe
AB | November-December 2012 19
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20 AB | November-December 2012
“In the next decade, I see phoenix becoming a global center of per-sonalized diagnostic medicine,” phoenix Mayor Greg Stanton said. “an example of this is the 3-D cell imaging for lung cancer detection that is currently being done by vision Gate, which is located in tGen’s head-quarters.”
tGen — the translational Genomics Research Institute, which was built by DpR Construction in downtown phoenix — may have had the single biggest impact on helping the Roadmap achieve its goals.
according to a recent study, tGen — established in 2002, the same year the Roadmap was implemented — provides arizona with a total annual economic impact of $137.7 million. The study also showed that tGen operations in 2010 produced $14.40 for every $1 invested by the State of arizona, supported 737 full-time jobs (directly and in-directly), generated $4.8 million in state tax revenues, and produced a direct annual economic impact of $79.2 million.
When the impact of tGen-generated business spin-offs and com-mercialization are included, the study shows, tGen in 2010 produced $25.04 for ever $1 invested, supported 1,124 jobs, generated $10.1 million in state tax revenues, and $137.7 million in total annual eco-nomic impact.
“tGen has become a cornerstone of arizona’s biomedical industry, continuing to add great value to the state and thriving despite chal-lenging economic conditions,” said bill post, recently retired Chair-man and CeO of pinnacle West Capital Corp. and recently appointed Chairman of the tGen board of Directors.
With the healthcare and bioscience fields more intertwined than ever, experts expect to see a shift toward interdisciplinary research and translational medicine.
“as a result, we expect to see the healthcare and bioscience sectors grow significantly for construction, potentially to 50 percent of our annual revenue,” DpR’s Kirkland said. “In addition, we anticipate a strong bioscience influence to higher education as universities strive to compete with each other to provide state-of-the-art teaching and training facilities for future researchers and medical professionals. additionally, the increasing use of super computers, digital records and remote or cloud data storage, to house information, will create a positive impact to the advanced technology and data center side of our business.”
Illustrating the increasing call for new bioscience construction projects and hoping to duplicate tGen’s success, Stanton announced plans earlier this years for a second bioscience campus, built on 600 acres surrounding Mayo Clinic in phoenix.
“We want to maximize the use of the land around Mayo to create the highest number of good jobs,” Stanton said. “This first decade of bioscience research has built a solid foundation. We have the build-ing blocks in place. We now need to push forward into a new phase. If we leverage this opportunity correctly, we can create sustainable long-term economic dividends for our kids, and for their kids.”
The bioscience industry has brought in more than $600 million in projects for DPR Construction since the Bioscience Roadmap was launched a decade ago.
AzTECH: HEAT
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Thank you for your support of 2012 Season of Wishes from your title sponsor Go Daddy:
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22 AB | November-December 2012
AzTECH: HEAT
many of us can relate to thinking of arizona’s economy as an automobile race. to win, you need a smooth race course, a fast car, a winning driver and high-powered fuel.
Carrying that analogy into arizona’s technology sector, it’s clear that a lot
of resources have been invested and progress has been made in building a world-class race course. We’ve made tremendous strides in creating a business climate and technology environment for facilitating both private and public sector support to address the needs of arizona’s technology businesses.
The arizona technology Council has worked collaboratively with many different technology champions to build this course. technology issues are supported by the Governor’s office, the state’s legislature, the arizona Commerce authority, the arizona Chamber of Commerce and Industry, and more.
technology incubators and shared space facilities such as Gangplank in Chandler, avondale and tucson; hackspace and venture Catalyst at aSU’s SkySong in Scottsdale; bioInspire in peoria; Innovation Incubator in Chandler; azCI in tucson; and aZ Disruptors in Scottsdale are making sure that today’s innovators are being given the right support, tools and environment to create the next big thing.
Collectively, our wins have included the passage of a tax credit for qualified research and development that is the best in the na-tion, the creation of the first statewide arizona Scitech Festival and the birth of the arizona Innovation Institute, to name a few.
arizona’s technology industry also has great race cars. These are the technologies and intellectual property that create wealth and jobs driven by both Fortune 500 companies and entrepreneurs. Companies such as Intel, Microchip technologies, Freescale, On Semiconductor and avnet can all be found here. nearly all of the largest aerospace and defense prime contractors in the nation are located in arizona, including boeing, honeywell, lockheed Mar-tin, northrop Grumman and General Dynamics.
The state’s entrepreneurial spirit is reflected in companies such as Webpt, Infusionsoft, axosoft, ilinc and Go Daddy that were founded in arizona along with the many innovators that are com-
ing to the table every day with new ideas rich in technology.
These companies large and small are driven by some of the greatest race car drivers the nation has produced.
but when it comes to fuel, arizona’s economy has always been running close to empty. We lack the vital capital needed to win the race. having access to angel investors, venture capital and private equity as well as debt instru-ments is critical to arizona’s success.
The situation has not been improv-ing on the equity side of the fuel equation. to offer some relief, the
arizona technology Council is proposing legislation that would create a system of contingent tax credits to incentivize both in-state and out-of-state investors to capitalize arizona companies. This program, called the arizona Fund of Funds, would allow the state to offer $100 million in tax incentives to minimize the risk for those seeking to invest in high-growth companies. The state government’s role would be to serve as a guarantor through these contingent tax credits in case the investments don’t yield the pro-jected results. expect more information on this important piece of legislation as it advances.
On the debt side of the fuel equation, there are encouraging signs that the worst of the credit crunch may be over. early-stage com-panies need access to debt instruments, or loans. Capital is needed for equipment and expansion. a line of credit can help early-stage companies through ongoing cash-flow issues. but loan activity is still modest in arizona for small companies. It remains heavily weighted toward the strongest corporate and consumer borrowers.
Capital goes hand in hand with innovation, high-paying jobs and cutting-edge technology, products and services. before arizona’s economy can win the race, we will need to become more self-suffi-cient at providing the fuel necessary to be a winner.
Steven G. Zylstra is president and CEO of the Arizona Technology Council.
STEVEn G. ZyLSTRATech Columnist
It taKeS FUel tO WIn the RaCehaving access to angel investors, venture capital and private equity as well as debt instruments is critical to arizona’s success
24 AB | November-December 2012
On april 5, 2012, president Obama signed into law the Jumpstart Our business Startups act, or JObS act. business owners and entre-preneurs need to know about the JObS act because it will allow startups and existing businesses to raise up to $1 million in invest-ment capital each year using the Internet and
other social media platforms.Raising money on the internet has exploded in recent years.
This type of money raising, called “crowdfunding” or “crowdsourc-ing,” is used by both nonprofit and for profit organizations. Crowd-funding projects are advertised or posted on various websites like kickstarter.com. prospective investors can view the projects on the Internet and make funding pledges online. however, investors do not receive any stock in the company promoting the project nor do the investors receive any monetary return on their investment. In essence, the investor’s investment constitutes a charitable con-tribution to a project that the investor believes will benefit society. This type of crowdfunding has been termed “charitable crowd-funding.” With charitable crowdfunding, no shares of stock can
be sold to investors nor can investors receive a monetary return on their investment because such events violate both federal and state securities laws. Therefore, under the current law, charitable crowdfunding cannot be used to raise investment capital.
beginning in January 2013, new and existing businesses can raise up to $1 million per year in investment capital utilizing crowdfunding. Companies will not be able to raise money on their own website. Instead, they will have to use a licensed securities broker or an intermediary (also called a funding portal) registered with the U.S. Securities and exchange Commission.
Companies using this new type of crowdfunding, called “equity crowd funding,” must prepare substantial documentation to meet the requirements of the JObS act. The act requires a company to disclose certain information to potential investors including: background information on the officers, directors and 20 percent shareholders of the company; The amount of money sought to be raised; how the money will be used by the company; a description of the ownership and capital structure of the company.
neeD $1 MIllIOn FOR YOUR bUSIneSS?‘Crowdfunding’ helps entrepreneurs raise capital to build, expand
by MaRK SveJDa
LEgAL
AB | November-December 2012 25
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26 AB | November-December 2012
Kickstarter.com pages offer many opportunities for investors to contribute to a certain project.
LEgAL
each company must also prepare and submit a detailed business plan and provide detailed information on the company’s fi nancial condition, if more than $100,000 in equity capital is sought.
Since the JObS act will not become eff ective until January 2013, new and established businesses have a little time to gear up and take advantage of the new law. Th ose interested in equity crowdfunding should become familiar with the JObS act and what needs to be done to comply with the act. Interested companies should: prepare an extensive business plan; perform market research to support the business plan; prepare a list of contacts of those who may be interested in investing in the business; prepare a video that promotes the company’s products or services; Review crowdfunding websites like kickstarter.com to see how successful projects are presented on crowdfunding websites.
Mark Svejda is Scottsdale-based attorney. you can email him at [email protected].
prospective investors can view the projects on the Internet and make funding pledges online
AB | November-December 2012 27
All of us at Andante Law Group congratulate
Daniel E. Garrison and Fay M. Waldo
for being selected as finalists for the
2012 Turnaround of the Year Awards
sponsored by the Arizona Chapter of the
Turnaround Management Association.
4110 N. Scottsdale Rd. Suite 330Scottsdale, AZ 85251Phone: 480.421.9449Fax: 480.522.1515
Let us be your trusted guide...Walk with Us.™
[email protected] | [email protected]
Daniel E. GarrisonFounder & Managing Partner
Fay M. WaldoAssociate
www.andantelaw.com
28 AB | November-December 2012
it’s not a surprise that the economic downturn killed many businesses and crippled countless others.
What is more surprising these days are the stories of those companies that rose from the ashes or near failure and regained profitability.
The arizona Chapter of the turnaround Management association (tMa) will be recognizing those companies and the individuals who helped turn them around at the 2012 turnaround of the Year awards on november 15 at 5 p.m.
at the Sheraton phoenix Downtown. The program will recognize companies, professional restructuring teams, and individuals who have made a significant contribution to a suc-cessful turnaround.
“We are excited to present the turnaround awards to arizona because we need to rec-ognize all the people who have worked tirelessly and collaboratively to turnaround strug-gling companies in arizona and save thousands of jobs,” said Chapter president Christo-pher Kaup, a shareholder at tiffany & bosco, p.a. “This is a great way to honor those who have made it through tough economic times and the teams of professionals that made it all happen.”
Co-chairing the awards program will be seasoned professionals in the turnaround market and tMa members Scott Cohen, a partner at engelman berger, pC; and beth Jo Zeitzer, president of ROI properties.
tMa is the only international nonprofit association dedicated to corporate renewal and turnaround management. established in 1988, tMa is an international organization with more than 9,000 members who are a professional community of turnaround and corporate renewal professionals who share a common interest in strengthening the economy through the restoration of corporate values.
an eCOnOMIC U-tURnarizona Chapter of the turnaround Management association presents its turnaround of the Year awards
TURNAROUND MANAgEMENT ASSOCIATIONby MIChael GOSSIe
Turnaround Management Association — Arizona ChapterP.O. Box 727204228 E. Taro Lane, Phoenix, AZ 85050623-581-3597arizona.turnaround.org
AB | November-December 2012 29
aRIZOna eQUIpMent Rental I, llC
Principals: Jeff bleeker and lance evicHeadquarters: tucsonNature of business: Construction equipment rental company serving arizona.
tURnaROUnD teaMPrimary attorneys: John Clemency and lindsi Weber, Gallagher & Kennedy, paPrimary financial advisor: Steven Odenkirk, peritus Commercial Finance, llCPrimary accountant: Steven phillips, Steven a. phillips Cpa
Problems leading up to turnaround: In the fall of 2008, aeR experienced a severe reduction in revenue due to the dramatic slowdown of construction and mining activity that corresponded with the economic downturn. From 2008 until 2010, revenue dropped 60 percent. aeR sought to effectuate a financial restructuring with its lenders in order to return to profitability.
Actions the turnaround team took: Unable to reach agreements with many of its se-cured lenders and lessors, aeR filed a Chapter 11 petition on Oct. 30, 2009 to assist aeR with restructuring certain liabilities and maximize its assets so that aeR’s business and cash flow could normalize and continue to be profitable.
Outcome of the turnaround: aeR’s business remained income producing throughout the bankruptcy case. about four months after the petition date, aeR confirmed a full payment plan or reorganization and exited bankruptcy. aeR reached an agreement with volvo Financial Services — its largest secured lender — to restructure its debt obligation. Upon successfully emerging from bankruptcy with its lower debt burden, aeR was able to quickly compete and generate profits in the post-recession economy. a testament to the company’s turnaround came when volvo made a substantial offer to buy aeR from its owners and the sales was completed in early 2012.
Jobs saved by turnaround: approximately 35.
tIMOthY RaY WRIGht
Principal: timothy Ray WrightHeadquarters: tempeNature of business: Residential rental properties that provide affordable housing for students attending arizona State University.
tURnaROUnD teaMPrimary attorneys: Daniel e. Garrison and Fay M. Waldo, andante law Group of Daniel e. Garrison, pllCPrimary financial advisor: edward M. burr, Sierra Consulting Group, llC
Problems leading up to turnaround: before the economic collapse, Wright took ad-vantage of the booming real estate market and refinanced many of his properties and used the loan proceeds to diversify his investments, which led to the properties being signifi-cantly overleveraged when the market collapsed. not only did his properties decrease in value, his other investments were performing poorly and the recession also impacted his rental revenue. by the time he filed Chapter 11, his occupancy rate has dropped that aver-age 95 percent down to 87 percent.
Actions the turnaround team took: Wright filed his Chapter 11 bankruptcy with a different attorney and in the 15 months that followed, he lost a significant number of properties to stay relief and foreclosure. Garrison and Waldo stepped in and were able to secure a modest period of time to take on the monumental task of compiling all the rel-evant information about Wright’s properties and indebtedness so they could develop and file a new Chapter 11 plan. They had to do this amid a flurry of pending and newly filed motions from lenders seeking relief.
Outcome of the turnaround: The applicants obtained confirmation of the debtor’s Chap-ter 11 plan in the spring of 2012, about one year after taking over the case. The plan preserved Wright’s ownership of approximately 100 properties, all with restructured indebtedness that can be serviced with Wright’s projected cash flow during the plan’s five-year term.
Jobs saved by turnaround: approximately 2-3.
30 AB | November-December 2012
HEALTH
Are employers who eliminate junk food from the break room, off er classes on how to quit smok-ing, and dispense free fl u shots doing enough to combat rising insurance premiums and increasing employee medical claims? Maybe not, according to a 2012 american heart association report, which refl ects that if current obesity trends continue,
obesity-related healthcare costs could reach more than $861 billion by 2030. and the average annual health insurance premiums for employer-sponsored coverage were a staggering $5,429 for single coverage and $15,073 for family coverage in 2011, studies show.
Th ese rising healthcare costs have many employers exploring “wellness programs,” which are work-sponsored programs that assist and support employees in establishing healthier lifestyles. although they vary from company to company, wellness programs can include weight loss counseling, physical fi tness contests, cholesterol and blood pressure screenings, advice on nutrition and healthful eating, subsi-dized fi tness programs and discounts on gym memberships; some even provide incentive-based rewards to employees who participate.
a number of companies credit these programs with decreasing rates of illness and injuries, reducing tardiness and absenteeism, increasing productivity, lowering healthcare costs and insurance claims, and even enhancing morale and camaraderie among employees. according to the CDC, 56 published studies report that workplace health initiatives have helped employers save up to 25 percent on overall healthcare costs, absenteeism, workers’ compensation, and disability claims.
It is no surprise, therefore, that the new patient protection and aff ordability Care act (ppaCa) encourages employers to provide wellness programs. Th e act even provides grants for employers who implement and promote wellness programs. but, in order to take advantage of these benefi ts, business owners need to make sure their wellness programs do not put them at legal risk.
Th e following tips may help your company implement a wellness program without violating federal employment laws:
1. make the program voluntary to avoid running afoul of the Americans with Disabilities Act (ADA).
Th e aDa prohibits discrimination against individuals with dis-abilities and precludes employers from asking questions about an employee’s medical condition or disability. employers should make
health-risk assessments voluntary and keep medical information confi dential and separate from an employee’s personnel fi le. Th e equal employment Opportunity Commission says a program is considered voluntary so long as the employer does not require participation and does not penalize employees who choose not to participate.
2. Have your employees execute authorizations in order to com-ply with genetic information Nondiscrimination Act (giNA).
another area of risk for employers off ering wellness programs is GIna, which prohibits discrimination based on an employee’s genet-ics and precludes employers from requesting, requiring, or purchasing genetic information about their employees or their employees’ family members. health risk assessment questionnaires, however, often include questions about medical history and family medical history because these questions can be helpful in identifying at-risk individu-als and in providing preventive treatment ideas. In order to prevent your health risk assessment from violating GIna, employees must volunteer the information and execute a written authorization refl ect-ing his or her knowing and voluntary participation in the program.
3. Don’t make rewards contingent on satisfying certain health metrics.
employers should also be mindful of the health Insurance portabil-ity and accountability act (hIppa), which prohibits group health plans from discriminating or using health factors to determine eligibil-ity for insurance enrollment or to determine insurance premiums. hIppa also prohibits discrimination within a wellness program itself. an employer would be at risk of violating hIppa by off ering, for example, a fi nancial reward to employees who achieve a certain “body mass index” (bMI). Th is sort of requirement may not be achievable by all employees due to medical conditions or disabilities. On the other hand, a wellness program will comply with hIppa so long as rewards are not contingent on employees satisfying a specifi c goal or standard. and employers will not violate hIppa by off ering fi nancial incentives — like lower insurance deductibles or co-payments for employees who participate in the wellness or disease prevention programs — so long as the reward is not based on a specifi c health outcome and all employees have the opportunity to participate if they so choose.
Emily Cates is a litigation partner in Lewis and roca’s phoenix offi ce. Caryn Tijsseling is a litigation partner in Lewis and roca’s reno offi ce.
hOW tO bUIlD a healthY WORKFORCe
by eMIlY CateS and CaRYn tIJSSelInG
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Th ere are risks and benefi ts to workplace wellness programs
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32 AB | November-December 2012
ARIZONA BANKERS ASSOCIATION
ChanGInG the tIDe
by MIChael GOSSIe
AB | November-December 2012 33
lynne herndon, city president for bbva Compass, will serve as the 2012-2013 chairman of the board of directors for the arizona bankers association (azba). herndon succeeds James lundy, president and CeO of alliance bank of arizona, as chairman of the association.
“I am excited to step into the chairman role and work with the other board and association members,” herndon said. “These last few years have required steadfast legislative attention and advocacy at all levels. We have also had to respond to heightened regulatory attention and pressures. acting with a single voice has made a larger impact. I look forward to continuing to strengthen the unified voice of the bankers within the state.”
herndon sat down with az business magazine for a far-reaching Q&a.
Ab: Why did you choose banking as a career?lynne Herndon: I chose banking because it allowed me to utilize both my interpersonal and analytical skills. I enjoy meeting with customers, and I enjoy analyzing a business situation and offer-ing a solution. bankers help companies accomplish their goals of growth and expansion. It’s a perfect fit.
Ab: tell us one thing about you that would surprise most people?lH: My two favorite things are college football, namely alabama football, and rock ’n’ roll music. My husband and I go to at least 20 concerts a year, both in and out of state.
Ab: What’s the biggest change you’ve seen in the banking industry since you started?lH: Regulation. banks are held to a much higher standard in areas of underwriting, appraisals and compliance. Our required level of due diligence is therefore deeper.
Ab: What has been your biggest challenge in the banking industry?lH: Winning business in a highly competitive market. arizona has many, many banks. and many banks are chasing the same deals.
Ab: What has been your greatest accomplishment in banking?lH: lending when times are good is easy. lending when economic times are tough is hard. I’m proud of the fact that bbva Compass was able to lend money during 2009 and 2010, two very difficult years.
Ab: The valley is home to many female banking leaders. Why have so many more women risen to the top of the industry here in arizona compared with other parts of the country?
lH: There are more women in banking today because more women are seeking and aspiring to senior management positions in this industry. In particular, more women are pursuing positions in commercial banking.
Ab: What do you hope to accomplish as chairwoman of the ari-zona bankers association?lH: Our marquee issue is amending arizona’s anti-deficiency statute.
Ab: The banking industry has been beaten up a bit over the last few years thanks in part to Wall Street. What does the industry need to do to begin to mend its public perception?lH: bankers need to proactively speak to clients about what we are doing. We are in business to make loans, and we are looking for ways to loan money to individuals and businesses. Our workforce is also very active in our communities giving both time and trea-sure. We need to tell our story.
ARIZOnA BAnkERS ASSOCIATIOn BOARdHere are the members of the 2012-2013 board of directors for the Arizona Bankers Association:• Chair: Lynne B. Herndon, City President, BBVA Compass• Chair-Elect: Mike Thorell, President, Pinnacle Bank• Vice-Chairman: Benito Almanza, Arizona President, Bank of America• Immediate Past Chairman: James Lundy, CEO, Alliance Bank or Arizona• Toby Day, Arizona President, Arizona Business Bank• Gail Grace, President & CEO, Sunrise Bank of Arizona• Steve Johnson, President, BMO Harris Bank• Chuck Luhtala, President, Canyon Community Bank• Brian Riley, CEO, Mohave State Bank• Joe Stewart, Chairman & CEO Arizona, JPMorgan Chase N.A.• Gerrit van Huisstede, Regional President, Wells Fargo Bank N.A.• Candace Wiest, President & CEO, West Valley National Bank
alabama football fan herndon hopes to lead arizona bankers association to winning season
34 AB | November-December 2012
ARIZONA BANKERS ASSOCIATION
Jack and Jill were living the american dream. Th ey bought their dream house in 2006. Th en, the economy spiraled downward. Jack lost his job. housing values dropped, and the amount remain-ing on Jack and Jill’s mortgage exceeded the value of the property — commonly known as having a house that is “under water.”
Jack and Jill didn’t want to pay the mortgage anymore, so they walked away, leaving the bank to clean up the mess from their fi nancial misstep.
Th ey were able to do that because of arizona’s anti-defi ciency statute, which says that if a person or corporation owns a resi-dential property on 2.5 acres or less that is used as a dwelling, the owner is not responsible for any defi ciency occurring after a foreclosure, according to lynne b. herndon, city president for bbva Compass.
“Th e diff erence between the fair market value of the home — or the amount that the foreclosure sale brings — and the loan bal-ance is known as a defi ciency,” said paul hickman, president and CeO of the arizona bankers association. “In arizona, the bank suff ers that loss, not the homeowner who walks away from the home.”
but it’s not only the homeowners — whom the statutes were intended to protect — who are catching the breaks.
“Unfortunately, the statute has been interpreted more broadly than originally intended such that properties used for investment are also covered,” herndon said.
arizona is one of only 12 states that has some form of anti-defi ciency protection. Of the 12, herndon said arizona has the most liberal statute.
“Th is statute absolutely contributed to the housing bubble as investors both in this state and outside of the state knew they could buy residential real estate in arizona and walk away if the investment became negative,” herndon said. “homeowners in this state have experienced larger declines in home value due to this statute allowing investors to speculate and walk away.”
Th e incidence of homeowners like Jack and Jill walking away from their home, avoiding hundreds of thousands of dollars of negative equity in their home, and legally sticking their lenders with a loss and became an all-too-common move during the Reces-sion, experts said.
“In my view, the average borrower was not likely aware of the fi ner points of the anti-defi ciency statutes when determining whether to purchase a home,” said Jennifer hadley Dioguardi, a
by MIChael GOSSIe
neeDeD: StatUte WIth lIMItatIOnSare arizona’s anti-defi ciency statutes feeding the bubble and worsening the economic collapse?
36 AB | November-December 2012
ARIZONA BANKERS ASSOCIATION
partner in Snell & Wilmer’s phoenix offi ce. “however, once the housing market crashed, the anti-defi ciency statutes likely caused some homeowners who had the means to make their mortgage payments to decide to simply walk away from the residence given the fact that the lender had no recourse against them other than to foreclose upon the residence once the residence was under wa-ter. Th e borrower was not responsible for the defi ciency. Th is likely contributed to some homeowners who could pay their mortgage simply walking away from the property and leaving the lender on the hook.”
experts believe that homeowners and investors who seized the opportunity to take advantage of arizona’s anti-defi ciency statutes to protect their own fi nancial futures, might be stifl ing the state’s chance at an economic recovery and exacerbating the economic collapse.
“Th e broadness of the defi ciency statute has had an overall nega-tive impact not just on the banking industry, but more impor-tantly, arizona’s long-term economy,” said Keith Maio, president and chief executive offi cer of national bank of arizona. “arizona’s statute is the most liberally interpreted of the 12 non-recourse/defi ciency states, the majority of which limit the protection to pri
mary residences or some other means that limit its contribution to speculation. In arizona, it allows investors to fi nance their specu-lation in housing, risk-free. If their investment does not work out, they don’t have to pay back the diff erence between what they sold the home for and what they owe. Th is statute was intended to protect homeowners, but what it has really done is hurt traditional homeowners by opening them up to large swings in housing val-ues. I believe the impact, while negatively eff ecting banks earnings, is greater on the homeowners in the community at large.”
Despite the impact on the overall economy, it’s still been the banks who take the initial and biggest hit because they are often precluded from recovering the balance of the loan defi ciency from the foreclosed borrower. While short sales are not protected by the
“Th is likely contributed to some homeowners who could pay their mortgage simply walking away from the property.”
AB | November-December 2012 37
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38 AB | November-December 2012
ARIZONA BANKERS ASSOCIATION
arizona’s anti-deficiency statutes, lenders have often been willing to agree to short sales and reduce or otherwise waive deficiency claims, because lenders know they could not otherwise recover loan deficiencies, should the borrower elect to foreclose.
“The deficiency statute has led to greater losses for residential lenders in arizona because they cannot obtain a judgment against the borrower who may have the ability to repay the deficiency,” Kevin Sellers, executive vice president of First Fidelity bank. “lenders’ inability to pursue the borrower for the deficiency cre-ates an environment that results in a higher incidence of strategic defaults.”
The biggest problem for lenders may be that it doesn’t appear that they will get any relief from lawmakers. Dioguardi said prop-erties initially covered by the anti-deficiency statutes had to be two and one-half acres or less and utilized either for a single one-family or a single two-family dwelling. This language was interpreted by the arizona Supreme Court to require that the dwelling be built and at least occasionally occupied.
“however, a recent decision by the arizona Court of appeals has extended the anti-deficiency protection to cover a residence that was not yet constructed and in which the borrowers had never resided,” Dioguardi said. “The Court found that even though the home was never utilized for a residence as required by the statute, because the borrowers intended to live in the single-family home upon its completion, they were subject to the protections of the anti-deficiency statute.”
The court decision, Dioguardi said, needs to be refined to protect both lenders and borrowers.
“Given that the arizona Supreme Court declined the petition for review of the decision, the legislature should amend the statute to make it even clearer that the borrower must physically inhabit the property to claim the protection of the anti-deficiency statute,” she said. “The current risk to lenders created by the decision as it
currently stands will likely drive up the cost of construction loans.”bank executives also believe that amending — not necessar-
ily getting rid of — the state anti-deficiency statutes is what the banking industry needs to continue on the road to post-Recession economic recovery.
“a very reasonable solution proposed by the arizona banking community is to simply require that a property protected from a deficiency judgment be the primary residence of you or a member of your family as already defined in arizona’s property tax statues,” Maio said. “This will have the effect of limiting this protection for homeowners, which is what was intended. Those in our arizona business community that oppose this type of change are moti-vated by their own special interests. Those whose real motivation is to profit on speculative investment or from the fees and com-missions that come from buying and selling speculative homes for profit, you will oppose this type of change. but for the rest of us that want to protect arizonans from future bubbles and encour-age a long-term and sustainable economy, we should support this simple change, as it is in our best long-term interest.”
Dioguardi Maio Sellers Hickman
AB | November-December 2012 39
ARIZONA BANKERS ASSOCIATION
What is the model of a bank?Th e fundamental busi-ness model of a bank is to give customers a safe, secure place to deposit their earnings and sav-ings, and to lend money to borrowers for small businesses, homes, education, cars, etc. . . . banks pay interest on deposits and charge interest on loans.
Why do banks need to make a profi t?like most other busi-ness enterprises, if banks are not profi table they cannot sustain themselves and stay in business. addition-ally, their deposits are insured by the FDIC, which is funded by bank premiums. a bank that continuously loses money would become uninsurable and lose its charter.
What is a common misconception about banks?One of the most com-mon misconceptions is that banks don’t need to charge fees for certain services. a prime example is the fees card issuers charge merchants for debit card transactions. Th e fees support a safe, secure, ubiquitous medium of exchange that operates 24/7, on a global scale.
Who establishes and enforces the regulations that banks have to follow?a bank’s primary regula-tor is determined by whether it is a commer-cial or savings institu-tion and whether it has a national or state char-ter. Th e primary federal regulatory agencies are the Federal Deposit Insurance Corporation (FDIC), the Offi ce of the Comptroller of the Currency (OCC), and the Federal Reserve. addi-tionally, every state has a regulatory agency that oversees state chartered banks.
What regulatory structures inhibit banks’ fl exibility in modifying loans?banks are required to maintain certain risk-weighted asset-to-cap-ital ratios. Once a loan is modifi ed, it must be reclassifi ed at a higher risk weight, requiring more capital. Given the current challenges many fi rms are facing raising capital, this regulatory structure can act as a disincentive to modify loans.
anatOMY OF a banKpaul hickman, president and CeO of the arizona bankers association, sat down with az business magazine to dissect the anatomy of a bank and what makes the industry click.
40 AB | November-December 2012
As the economy continues its slow recovery, many businesses are starting to slowly get back into the spirit after the Recession cut into holi-day party budgets for most companies.
“We have noticed that this year is on track to be about 10-12 percent stronger than last year,” said Jesse Thompson, director of sales and
marketing for the hotel valley ho.While holiday party planning is back in play, many companies
have toned down the over-the-top excess of the past.
“We are seeing bookings for more intimate gatherings — groups of 50-100 people,” said Denise Seomin, director of public relations and marketing communications for The phoenician. “In many cases, individual departments within a company are planning a special holiday event, which has moved the focus to our res-taurants. This season’s social functions are incorporating more lunches and dinners.”
The focus has also shifted to the food.“Clients are turning food into the conversation piece of the eve-
ning,” said Christi Des Jarlais, the director of catering and confer-ence services at Sanctuary on Camelback Mountain. “They enjoy the custom buffet stations created by our very own Chef beau MacMillan and have become increasingly interested in enhancements such as elaborate and colorful tiered dessert stations and hot beverage station additions such as decadent hot choco-late with small candy canes, rock candy sticks, whipped cream, chocolate dipped marshmallows, and caramel squares.”
While that sounds delicious, experts agreed that companies are looking to bal-ance fiscal responsibility with the festive celebrations in 2012.
“While value and costs remain at the forefront, it appears companies want to get back to the holiday celebrations of the past,” said Mark Scheller, vice presi-dent of sales for Casino Del Sol Resort, Spa and Conference Center in tucson.
EXECUTIVE gIFT gUIDE
It’S pArTy tIMebusinesses get back into holiday spirit as economy starts to improve
by MIChael GOSSIe
This season’s social functions
are incorporating more lunches and dinners.
“
“
Elements at Sanctuary on Camelback Mountain
Casino Del Sol Resort, Spa and Conference Center
42 AB | November-December 2012
JANUARY 13-20 Tickets on sale now!Barrett-Jackson.com // INFORMATION 480.421.6694
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EXECUTIVE gIFT gUIDE
7 WaYS tO plan a paRtY
1Sanctuary on Camelback Mountain, Paradise Valley: Options include private indoor venues with floor to ceiling windows that showcase the panoramic views of the surrounding mountains, customized menus to work within budgets, and 15 percent off food and beverage if booked by nov. 16. sanctuaryoncamelback.com
2 iPic Theaters and Tanzy, Scottsdale: The venue has a lot of flexibility to do just about anything that its clients are looking to do, whether it is a red carpet event, full sit-down dinner, or a time period themed event, according to sales manager Jon Stone. ipictheaters.com
3 Buca di Beppo: “We offer extensive bar and group packages as well as celebratory and special occasions,” said nichole lopez, mar-keting specialist for buca. “We recommend that any business contact the sales manager at their local buca for further information.” bucadibeppo.com 4
Casino Del Sol Resort, Spa and Conference Center, Tucson: What really sets an event here apart is the ability to enjoy the festivities with friends on the gaming floor after the scheduled program ends. Couple this with very attractive room rate offers designated especially for attendees and a traditional holiday party becomes an experience. casinodelsol.com
party coordinators said most businesses wait until november to book holiday par-ties and stress that the sooner businesses book their party, the more likely they are to get their preferred date, theme and menu. If your business is among the majority that has waited, here are a few leads to get you started:
Sanctuary Camelback Mountain Resort & Spa
iPic Theaters at Scottsdale Quarter
JANUARY 13-20 Tickets on sale now!Barrett-Jackson.com // INFORMATION 480.421.6694
THE ULTIMATE AUTOMOTIVE EXPERIENCE
SCOTTSDALE, ARIZONA
» VIEW OVER 1,000 VEHICLES
» BROWSE ACRES OF EXHIBITORS
» SHOP DISTINCTIVE VENDORS
» TAKE A HOT LAP WITH A PRO DRIVER
» DRIVE THE LATEST FORD & GM MODELS
» FUN FOR THE WHOLE FAMILY
WATCH LIVE ON
AZBusiness_121012.indd 1 10/12/12 11:27 AM
44 AB | November-December 2012
6Westin La Paloma Resort & Spa, Tucson: “While limited, we do have availability and offer a great incentive for the short-term op-portunities,” said General Manager Jonathan litvack. “Specifically, this year’s holiday incen-tive is a complimentary professional DJ for any new event worth a banquet minimum of $5,000 plus service charge and tax.” westin.com/lapaloma
5The Phoenician, Scottsdale: The resort is extending several special amenities and services to businesses that book a party for 75 or more guests. These include complimentary vIp guestroom or one-night stay gift certificate and butler-served champagne or other selected cocktail. thephoenician.com
7Hotel Valley Ho, Scottsdale: parties are treated to holiday décor with Christmas trees upon request, guestroom block discounts up to 40 percent off of the published room rates depending on date, and if your company can have its holiday party on an obscure day of the week, you’re eligible for some great discounts. hotelvalleyho.com
The Phoenician
Hotel Valley Ho
EXECUTIVE gIFT gUIDE
AB | November-December 2012 45
800.FAIRYTALE ~ BROWNIES.COM
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46 AB | November-December 2012
1. mAKE A biD: Rev up some holiday cheer this year with a week-long pass to barrett-Jackson when The World’s Greatest Collector Car auction returns to Scottsdale Jan. 13 – 20. You can purchase week-long passes in advance for $80 (50 percent off the gate price if purchased prior to nov. 12). barrett-jackson.com
2. HAvE A DriNK: The esio hot & Cold beverage System from Mesa-based esio beverage Company is available in Walmart U.S. stores retailing for $199. It is the only hot and cold system on the market. esiobev.com
3. FOr THE WOmEN: “The staples of a jewelry wardrobe for a professional woman are diamond stud earrings, cufflinks, a fine jewelry brooch, a fine timepiece and of course a diamond ring that is appropri-ate for daywear,” said al Molina, owner of Molina Fine Jewelers. “a pearl necklace has great versatility as does a diamond solitaire necklace.” molinafinejewelers.com
4. FOr THE mEN: Cufflinks are a great opportunity for men to express their tastes and can break the monotony of a man’s wardrobe,” Molina said. “today, I believe that men are judged by the quality of their timepiece. The more complications a watch posseses, the greater the culture and refin-ment of the man.”
5. giFT OF HEAlTH: The Satori Wellness Retreat is a four-day wellness journey that begins with a meeting with a certified per-sonal trainer who will design a personalized fitness program. additional components include a choice of fitness activities such as yoga, pilates, dance fusion and hiking; a weight management plan; nutritious meals prepared just for them (with take-home recipes from executive Chef beau MacMil-lan); a lifestyle journal; and follow-up care from your personal trainer after they leave. sanctuaryoncamelback.com
EXECUTIVE gIFT gUIDE
GIFtS FOR eXeCUtIveSneed to buy a gift for the business executive who has everything? here are a few arizona-based ideas:
1
23
4
5
AB | November-December 2012 47
ArrowheAd | 16091 N. Arrowhead Fountains Center Dr. • 623.412.9463ChAndler | 7111 West Ray Road • 480.785.7272MesA | 1730 South Val Vista Drive • 480.507.9463
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Hyatt Regency Phoenix122 North Second StreetPhoenix, AZ 85004
HYATT name, design and related marks are trademarks of Hyatt Corporation. ©2012 Hyatt Corporation. All rights reserved.
Let your holidays revolve around friends, family and colleagues.Celebrate the holiday season at Compass Arizona Grill, the only revolving rooftop restaurant with panoramic views of the Phoenix area. Featuring stellar cuisine and unparalleled service, Compass is ideal for individual dinner reservations. And this season, the restaurant’s expert chefs will create holiday menus for Thanksgiving and Christmas, plus special menus for office gatherings and other large group events. To book your holiday celebration, visit phoenix.hyatt.com or call 602 252 1234. Hyatt. You’re More Than Welcome.
AB | November-December 2012 49
ReCOGnIZInG pROFeSSIOnalS FOR OUtStanDInG peRFORManCe In theIR
ROleS aS CORpORate FInanCIal SteWaRDS2012
50 AB | November-December 2012
FINANCIAL EXECUTIVES INTERNATIONAL
FROM THE PRESIDENT OF THE ARIZONA CHAPTER OF THE FINANCIAL EXECUTIVES INTERNATIONAL
FEI ARIZONA CHAPTER OFFICERSPresident and Chairman of the Board: Bret Lawson, CPA First Vice President: VacantSecond Vice President: Richard Skufza, executive vice presi-dent, CFO, E.B. LaneSecretary and Treasurer: Gil Christopher, president and CEO, The Logistics GroupPast President: Michelle Hoffman, president, CFO &COO, ActiveForever.com FEI ARIZONA CHAPTER BOARD MEMBERSStephanie Brun, Financial Analysis Manager, U-Haul InternationalMarcus Feder, Salt River ProjectChris Niezgodzki, director, fi nancial budgeting and forecast, Grand Canyon Education Inc.Gayle Pincus, social enterprise consultant, Palo Verde Business Advisors LLCDan Regan, principal, Executive Financial ManagementHelen Swiatek, Partner, B2B CFOKaren Whitney, vice president, fi nancial planning and analysis, Apollo Group Inc.
The Arizona Chapter of the Financial Executives International (FEI) appreci-ates and thanks you for your interest in the 6th annual CFO of the Year Awards. FEI Arizona is presenting the CFO of the Year Awards to senior level fi nancial professionals for outstanding performance in their roles as corporate fi nancial leaders and stewards. e nominations and awards
recognize exemplary fi nancial management in three business sectors: public, private and nonprofi t.
An independent set of carefully elected and well-qualifi ed judges from Arizona’s business community and academia have selected winners based on their contributions to their respective organizations and their overall involvement in the Arizona business community.
FEI’s mission is to advance the success of senior level fi nancial executives, their orga-nizations and the profession. e FEI Arizona chapter is comprised of Phoenix Metro-area executives who represent and advocate for the interests of fi nance professionals of companies in all industries and all sizes within the public, private and nonprofi t sectors throughout the state.
FEI Arizona serves the community by off ering its members opportunities to network with their peers, stay apprised of current fi nancial policy, standards and regulatory guidelines, continue their professional development and form valuable relationships with community leaders. We also maintain an academic awards program to encour-age professional advancement of promising, fi nance-focused students, and off er career assistance and development to members as well as contribute to the research and advocacy activities of our national FEI organization which impact the strategic planning of the profession’s policy, standards and regulatory structure.
FEI continuously recruits new members who meet our membership criteria and who are interested in the value gained from becoming an FEI chapter member. Member-ship is open to CFOs, controllers, treasurers, tax executives, academic professors, and other senior-level fi nance professionals whose positions and company size meet FEI’s membership criteria. Additional information may be found on the national and chapter websites, www.fi nancialexecutives.org and www.feiaz.org.
Finally, FEI Arizona would like to thank our sponsors who have worked so closely and diligently with us to make this event a success: Arizona Business Magazine, Bank of Arizona, CresaPartners, Deloitte, Marsh USA and Robert Half Management Resources.
Very truly yours,
Bret LawsonPresidentFEI Arizona
Gil ChristopherChairmanCFO of the Year Committee
Jonas McCormick, Managing Partner, Deloitte, LLP
Christine Nowaczyk, SVP Corporate Banking Director, Bank of Arizona
Cheryl Vogt, Head of Offi ce, Managing Director, Marsh USA Inc.
Andy Ernst, Regional Manager, Robert Half International
Jonathan Keyser, Principal, Cresa
CFO of the Year Sponsor Representatives
Cheryl Green, Publisher, AZ BIG Media
Media Sponsor
AB | November-December 2012 51
FINANCIAL EXECUTIVES INTERNATIONAL
paMela l. ChanExecutive vice president and chief fi nancial offi cerWestern Alliance Bank (dba Alliance Bank of Arizona and First Independent Bank)
The company: Serves small and mid-sized businesses, entrepre-neurs, professionals, municipalities, nonprofi t organizations, high net-worth individuals and other consumers.
What she’s done: to inspire organization to greater success, Chan communicates fi nancial results and growth initiatives with manage-ment and across the organization in a simple and understandable format. Th is includes making key information available to all em-ployees by placing important messages and fi nancial charts in the break room or conference room. Chan facilitates a “bright Idea$” program, which is designed to encourage employees to submit in-novative suggestions for cost savings, eliminating ineffi ciencies and streamlining procedures. In a 12-month period, employees have identifi ed 15 “idea$” for a $200,000 annual savings.
FINANCIAL EXECUTIVES INTERNATIONAL
JaMeS bROenenChief fi nancial offi cer and senior vice president HR, IT and supply chainFender
The company: Fretted instruments, percussion, electronics and music accessories.
What he did: When broenen arrived at Fender, the company was in a potential default scenario on its debt. he not only got the company quickly into compliance with its debt agreements, but his ability to lead a refi nancing of the company’s debt and the subsequent debt structure at the beginning of the economic crisis of late 2008 and early 2009 al-lowed Fender to have the resources available to continue to invest in its operations and longer-term stra-tegic direction. Th e basis of these debt agreements has allowed Fender to continue to dominate its marketplace and invest in its innovation and strategic objec-tives over the past three years.
2012 FINALISTS
Christine Nowaczyk, SVP Corporate Banking Director, Bank of America
52 AB | November-December 2012
laRRY eISelChief fi nancial offi cerTotal Transit
The company: Multi-faceted transportation, including private (taxi), public (bus, Dial-a-Ride) and transportation management.
What he did: Upon eisel’s arrival at total transit, it took 26 work-ing days to close the books for its 11 companies. Th rough eisel’s leadership and vision, he assembled a group — starting with a new controller — that shared his vision as it relates to month-end clos-ing. With persistent execution, continuous process improvement and eff ective leadership, eisel has been able to reduce the total transit’s closing period to six working days, 16 days quicker than an average company, according to a 2011 study done by Financial executives Research Foundation.
FINANCIAL EXECUTIVES INTERNATIONAL
JaMeS COateSChief fi nancial offi cerThe Logistics Group
The company: asset-based transportation, trucking and warehousing services with focus on time-sensitive manufacturing companies.
What he’s done: Coates had been Th e logistics Group’s primary accountant and Cpa while he was working for the accounting fi rm of Kilpatrick, luster & Co., but he had a dream of becoming a CFO. When Th e logistics Group had grown to the point of needing internal fi nancial expertise, the company recruited Coates to become its CFO. Th e company’s business has doubled year after year and the transition
— including additional assets and costs — was well-managed and Coates led that process. he also directly manages the accounting process, along with billing, pricing and risk management.
2012 FINALISTS
FINANCIAL EXECUTIVES INTERNATIONAL An investment in your career.BETTER UNDERSTAND YOUR INVESTMENT AND THE VALUE OF FEI MEMBERSHIP FOR YOU AND YOUR COMPANY.
INTERACTION. INFORMATION. INFLUENCE. INTEGRITY.
Public Policy Education and Advocacy
Representation before U.S. Congress, SEC, FASB, PCAOB, IASB and more
Influencing policy, accounting and financial reporting issues from K Street to Wall Street.
National Conferences including our Annual Leadership Summit and CurrentFinancial Reporting Issues (CFRI)
Peer-to-peer, in-person networking with 15,000+ best-in-the business financial executive members
Featured speakers are high profile industry leaders broaching topics relevant to your career
Annual Cost without membership: $3,100.00
Financial Executive Magazine Subscription
Award-winning publication for senior-level financial executives in print and digital formats
Thought leadership and insight into financial, business and management news, trends and strategies
Cost without membership: $69.00
Other member-only intangibles include:
• FEI Career Center and career management services
• Local peer networking and education
through chapter involvement
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• Continuing professional education (CPE) opportunities
• Emerging Issue Alerts and regulatory updates
Your membership includes the following high-quality benefits and services.
Financial Executives Research Foundation (FERF) Publications
Downloadable, leading-edge content developed through objective, independent research
Practical insights into key financial topics impacting financial executives now
Annual Cost without membership: $1,700.00
“Ongoing personal and professional growth ateach stage of my career.”
EMPOWERED.“Member relationships with financial thought leaders.”
CONNECTED.“Leading edge content and objective research at my fingertips.”
Katherine AndersonChief Financial Officer
Seattle Opera
Member since 1994
Mary Jo GreenSenior Vice President & Treasurer
Sony Corporation of America
Member since 1988
Taylor HawesGM, Finance Systems & OperationsMicrosoft Corporation
Member since 2002
INFORMED.
MEMBER SERVICES 877.359.1070www.financialexecutives.org
54 AB | November-December 2012
COlleen FRItZChief fi nancial offi cer Unitedweb, Inc./Nextiva, Inc. The company: Invests in and operates companies that serve small businesses and emerging markets across multiple industries that rely on the Internet and technology to run their business.
What she’s done: Fritz’s expertise in process design and devel-opment was critical as the company went through rapid growth, transitioning to a mature phase in the business life cycle in just a few years. Th rough her guidance, the company was able to take risks to grow its business and the company’s year-over-year growth has virtually doubled each year it has been in business. Fritz’s atten-tion to the fi nancial and operational details is the guiding force for many of the company’s initiatives and metrics that contribute to its successes. Fritz has helped the company grow to 190 employees and serve more than 60,000 companies.
FINANCIAL EXECUTIVES INTERNATIONAL
thOMaS b. FISCheRChief fi nancial offi cerOnTrac
The company: a leader in regional overnight package delivery service within California, arizona, nevada, Oregon, Washington, Utah and Colorado.
What he’s done: Fischer has been a key driver of the company-wide strategy to automate the package fl ow of the 29 facilities in the over-night network. With a price tag in the millions per facility, Fischer’s lev-el-headed leadership of the negotiations has saved the company hun-dreds of thousands of dollars of acquisition costs as well as cost savings from the new equipment and technology installed. During Fischer’s tenure, revenues have increased more than 200 percent; working capital has increased 300 percent; stock holder’s equity has increased more than 250 percent; and long-term debt, during this same time period, plummeted from extremes of 75 percent of the total assets to less than 7 percent.
2012 FINALISTS
FINANCIAL EXECUTIVES INTERNATIONAL
SOMETIMES THE MOST VALUABLE GO-TO PARTNER IS THE ONE WHO COMES TO YOU. You need a banker you can go to for reliable business solutions. But how about one who also brings you new ideas? Right to your office, if that works best. With Bank of Arizona, you’ll work with responsive professionals with the experience to understand your challenges, as well as the local and global markets. And because Bank of Arizona is part of BOK Financial Corporation, a $26 billion financial services holding company, our service comes with the strength and stability you can count on.
Give us a call, or better yet, let us come see you.
Congratulations to all of the 2012 CFO of the Year Honorees.
Lending | Cash Management | International Banking Retirement Plan Services | Corporate Trust | Wealth Management
602.808.5332 | www.bankofarizona.com
© 2012 Bank of Arizona, a division of BOKF, NA. Member FDIC. Equal Opportunity Lender.
56 AB | November-December 2012
paUl MaleKChief fi nancial offi cerPhoenix Children’s Academy, Inc.
The company: Owns and operates a network of 115 private schools, including preschools, elementary schools and middle schools in 16 states and serving about 16,000 students.
What he’s done: Malek believes the use of technology can greatly streamline operations and reduce the administrative burden faced by operational personnel. he worked with operations personnel to replace the company’s school level operating system with a compa-ny-wide Web-based system. Th e project was completed at no cost to pCa and has given the company the ability to manage functions for the centers and provide immediate real-time access to facility information and results. he also restructured the depository account process and implemented the use of electronic check scanners at all locations to reduce administrative burden and improve timeliness and accuracy of deposits. Th e moved saved the company $60,000 in annual bank fees.
FINANCIAL EXECUTIVES INTERNATIONAL
tODD lapORteChief fi nancial offi cerScottsdale Healthcare
The company: Th ree acute care hospitals, clinical research, several ambulatory sites, and graduate medical education programs.
What he’s done: laporte’s role is to provide leadership that ensures a long-term and short-term fi nancial position for the healthcare orga-nization. his responsibilities also include information systems and he plays a key role in developing clinical integration initiatives to posi-tion the company for healthcare reform. laporte has displayed highly innovative skills in Scottsdale healthcare’s debt restructuring ($350
million) and in helping to craft a successful clinical integration joint venture with hospital physicians. both initiatives play a key role in the future success of Scottsdale healthcare.
2012 FINALISTS
FINANCIAL EXECUTIVES INTERNATIONAL
The Tenant’s Advantage cresa.com
Before we talk space, we talk business. Whatever you need space for, we want to know about the business goal behind it. We only represent tenants. We understand the business needs of tenants, and we take an integrated approach to addressing them. You can count on us to be shrewd in negotiation, rigorous in execution, and aligned—at every stage—with your business.
A typical real estate broker talks square footage.
A Cresa tenant advisor talks business.
Cresa Phoenix 602.648.7373 cresa.com/phoenix 2398 E. Camelback Road, Suite 900, Phoenix, AZ 85016
58 AB | November-December 2012
PAUL MEHLHORnChief fi nancial offi cerMake-A-Wish America
The company: Grants the wishes of children with life-threatening medical conditions.
What he’s done: When Mehlhorn was hired, the fi nance depart-ment was experiencing operational challenges and had lost the confi dence of the president and CEO, as well as the audit and fi nance committee of the national board and several key board leaders. Mehlhorn quickly turned the situation around, earning the respect and trust of virtually everyone with whom he has dealt. Last year, Mehlhorn established a centralized fi nancial services unit from scratch. It currently provides accounting services for six chapters across the country and that number is expected to increase in the coming years.
FINANCIAL EXECUTIVES INTERNATIONAL
CRAIG L. MCKnIGHT Executive vice president and chief fi nancial offi cer Phoenix Children’s Hospital
The company: Arizona’s only licensed, free-standing children’s hos-pital, providing inpatient, outpatient, emergency, trauma and urgent care.
What he’s done: McKnight was at the forefront of a major acquisi-tion that changed the face of pediatric care in the Southwest. In June 2011, Phoenix Children’s and Dignity Health Arizona completed a strategic alliance that transferred pediatric services at St. Joseph’s Hos-pital and Medical Center, Chandler Regional Medical Center and Mercy Gilbert Medical Center to Phoenix Children’s. Under the agreement, Phoenix Children’s also acquired the pediatric neuroscience pro-grams, creating Barrow neurologi-cal Institute at Phoenix Children’s Hospital. Th is agreement required complex fi nancial analysis and modeling.
2012 FINALISTS
FINANCIAL EXECUTIVES INTERNATIONAL
Deloitte congratulates the Arizona FEI CFO of the Year nominees
As used in this document, “Deloitte” means Deloitte LLP and its subsidiaries. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.
Copyright © 2012 Deloitte Development LLC. All rights reserved. Member of Deloitte Touche Tohmatsu Limited
James Broenen
Pamela Chan
James Coates
Larry Eisel
Thomas Fischer
Colleen Fritz
Todd LaPorte
Paul Malek
Craig McKnight
Paul Mehlhorn
Bonnie Mendoza
Robert Osborne
Tanya Perry
Ron Raber
Charles Ribbe
Ray Sadowski
Lyle Scritsmier
Susan Sweeney
Tracy Taylor
Sandra Torre
2901 N. Central Avenue Suite 1200 Phoenix, AZ 85012 +1 602 234 5100
www.deloitte.com
60 AB | November-December 2012
ROBERT D. OSBORnEChief fi nancial offi cerRussell Sigler, Inc.
The company: Primarily engaged in the wholesale distribution of heating, ventilation, and air conditioning parts, equipment and sup-plies that are predominantly manufactured by Carrier and Bryant.
What he’s done: Due to Osborne’s strength of planning and judgement, Russell Sigler, Inc. has a reliable, highly effi cient corpo-rate administration and fi nance team. With Osborne’s guidance and expertise, internal reports have been developed and are constantly fi ne-tuned. Osborne’s eff orts have assisted in the company’s ability to respond to the changing dynamics of rapid growth and a volatile market. Osborne has been a key player and integral part in establish-ing relationships and negotiating agreements with the company’s banking partners, allowing for growth and sustainability of current and expanding business opportunities.
FINANCIAL EXECUTIVES INTERNATIONAL
BOnnIE MEnDOZAChief fi nancial offi cer and executive vice presidentArizona Zoological Society (dba Phoenix Zoo)
The company: Operates the Phoenix Zoo, which exhibits and cares for more than 1,100 animals, provides educational programs, and ac-tively participates in animal conservation eff orts.
What she’s done: Mendoza played a signifi cant role in creating an incentive pay plan based on both individual and company performance. Payouts were successful in 2005, 2006, 2007, 2008 and 2012. Th e in-centive plan has raised the bar for individual performance and created an environment of increased personal responsibility. Mendoza was also involved in the implementation of an endowment building initiative in 2006 and co-authored the policy where both an operating reserve fund
and board designated reserve fund were established. Th e operat-ing reserve fund has grown from $150,000 to $3.1 million and the board designated reserve fund has increased from $50,000 to $2.5 million.
2012 FINALISTS
FINANCIAL EXECUTIVES INTERNATIONAL
4237_NCN_ArizonaCFO_AwardsAd_Printer.indd 1 10/2/2012 3:49:39 PM
62 AB | November-December 2012
ROn RABERChief fi nancial offi cerEsio Holding Company/Esio Beverage Company
The company: Focused on the development, manufacturing and marketing of multi-serve beverage dispensing systems and beverage products for the home and offi ce.
What he’s done: Since Esio initiated business in 2005, Raber and the team have worked to refi ne strategy; design, develop and perfect the technology; secure mass retail distribution; and acquire national beverage brand licenses. In October, Esio launched its countertop unit in 2,800 Walmart stores. In connection with its retail launch, Esio was facing a signifi cant capital need — thought to be $10 mil-lion — for inventory, advertising, and working capital. Raber worked on a creative fi nancing strategy, which included payment terms from key suppliers, an asset-based line of credit, and a smaller equity raise. Esio was able to reduce its capital needs to less than $3 million and focus on execution of its retail launch.
FINANCIAL EXECUTIVES INTERNATIONAL
TAnYA PERRY Senior vice president and chief fi nancial offi cer Goodwill Industries of Central Arizona The company: Operates 50 retail stores and eight stand-alone dona-tion centers throughout metro Phoenix, Prescott and Yuma; off ers job training, education and employment services to youth and adults with vocational barriers who are seeking self-suffi ciency.
What she’s done: When Perry joined Goodwill in 2007, the organi-zation had priority goals of ensuring fi scal responsibility and growing revenue and the number of people served. Since 2007, Goodwill has increased revenue from $59.6 million to an estimated $100 million in 2012; grown from 38 retail locations to 50 and from eight career cen-ters to 13; decreased long-term debt by more than 57 percent; and will serve an estimated 40,000 by the end of 2012, nearly four times the number served in 2007. 2012 FINALISTS
FINANCIAL EXECUTIVES INTERNATIONAL
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To attract the financial talent you want, get the salary data you need.
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Phoenix • 602.224.1273 2375 E. Camelback Rd., Ste. 290
64 AB | November-December 2012
RAY SADOWSKIChief fi nancial offi cerAvnet
The company: One of the largest distributors of electronic compo-nents, including connectors and semiconductors; technology solu-tions, computer products and embedded technology.
What he’s done: Sadowski has been instrumental in the acquisi-tions of more than 65 companies, all of which have contributed to Avnet’s attaining a global leadership role in the electronic com-ponents and computer products industries. Sadowski and former Avnet CEO Roy vallee introduced a value-based management initiative in 2001 that focused on a minimum 12.5 percent return on capital employed. Th e initiative put Avnet into a position of being the most profi table company in its industry and highest market cap. And in an eff ort to use the company’s cash most eff ectively, Sadows-ki initiated a stock buy-back program, which was recently increased another $250 million by Avnet’s board of directors.
FINANCIAL EXECUTIVES INTERNATIONAL
CHUCK RIBBEChief fi nancial offi cerCancer Treatment Centers of America
The company: A regional destination hospital specializing in complex and advanced-stage cancer care.
What he’s done: Under Ribbe’s guidance, CTCA Western has sur-passed budget expectations, including doubling net operating income before shared services and corporate allocation in 2012 compared with the previous year. Ribbe’s leadership in maximizing effi ciencies is evi-dent in the hospital’s Lean Six Sigma program, which eliminated more than 9,800 hours of patient wait time in 2011. An additional 12,000 hours of non-value added employee time were also eliminated. Ribbe’s vision of utilizing technology to improve patient care has helped create
the nation’s fi rst and only all-digi-tal cancer hospital.
2012 FINALISTS
FINANCIAL EXECUTIVES INTERNATIONAL
Susan Sweeney2012 NomineeCFO of the Year Award
www.cyracominternational.com
Phoenix Contact Center14415 S. 50th St., Ste. 100
Phoenix, AZ 85044
Tucson Contact Center2801 E. Elvira Rd.
Tucson, AZ 85756
Tucson Headquarters5780 N. Swan Rd.Tucson, AZ 85718
Las Cruces Contact Center2303 Divot Ave., Ste. 1Las Cruces, NM 88001
Congratulations!
Thank you, Susan Sweeney, for continuing to make CyraCom International a successful company!
2nd largest provider of Over-the-Phone Interpretation in the world
Inc. 5000 fastest-growing private company four years in a row
Created over 500 jobs over the past four years
66 AB | November-December 2012
SUSAn SWEEnEYChief fi nancial offi cer CyraCom International, Inc.
The company: Provides innovative interpretation and translation services to clients in healthcare, business and government.
What she’s done: Th rough Sweeney’s direction, the company more than doubled revenues to $43.7 million, while turning a nega-tive EBITDA (earnings before interest, taxes, depreciation and amor-tization) to a positive $4.8 million, and increased the earnings per share by 180 percent. Th e company has dramatically increased from 198 employees at the end of 2007 to more than 692 at the end of 2011. During Sweeney’s tenure, CyraCom has also been listed on the Inc. 5000 list of fastest growing private companies in 2007, 2009, 2010, 2011 and 2012.
FINANCIAL EXECUTIVES INTERNATIONAL
LYLE R. SCRITSMIERChief fi nancial offi cerMedApps (an Alere, Inc. Connected Health Company)
The company: Provides technology solutions for the collection, transmission and remote management of patient health data.
What he’s done: During a challenging economic environment, Scritsmier assisted the start-up company in raising $9 million of invest-ment through three rounds of fi nancing. He used his experience in the healthcare industry to secure sales and increase margins with MedApps initial customers when it was most critical. Th is ability is best illus-trated with a 2010 deal, where Scritsmier closed a $3 million contract. As part of the negotiation, he convinced the client to prepay an amount equal to four months of operating capital at a time MedApps was op-erating at a loss and the deal gave the company fi nancial breathing room when it was greatly needed. 2012 FINALISTS
68 AB | November-December 2012
SAnDRA TORREChief fi nancial offi cerThe Lavidge Company
The company: A Phoenix-based, full-service advertising, public relations, communications, consulting and interactive marketing agency.
What she’s done: Torre established hard performance measure-ments such as goals, ratios, KPI’s and benchmarks to be implement-ed company-wide, a challenge in an environment where creativity is the product for sale. She has streamlined the company’s monthly fi nancial reporting to encompass accountability on all levels and developed a performance-based compensation plan for the manage-ment team. Th ese fi nancial strategies have improved company per-formance and changed the attitudes and perceptions of the agency’s creatively minded personnel to embrace fi nance as something that can still allow for “fun.”
FINANCIAL EXECUTIVES INTERNATIONAL
TRACY TAYLORChief fi nancial offi cerMountainside Fitness Centers
The company: Full-service fi tness center with 10 locations through-out Arizona. Mountainside is the largest locally owned fi tness center chain in Arizona, serving more than 44,000 active members.
What she’s done: With Taylor spearheading the eff ort, Mountainside has upgraded both its accounting system (Intact) and its fi tness soft-ware (CSI). Th ese two platforms not only speak directly to each other, but Intact is also recognized as one of the premier fi nancial softwares in any industry. Most recently, Mountainside led the movement of the company’s credit card process out from underneath the banking indus-try and into more fl exible, third-party processing. Th is move has helped
Mountainside receive its funds sooner. Currently, Mountainside bills more than $22 million annu-ally, so this was no small feat to accomplish. 2012 FINALISTS
FINANCIAL EXECUTIVES INTERNATIONAL
AB | November-December 2012 69
70 AB | November-December 2012
2012 finalist for CFO of the Year Award
Chuck Ribbe ~ Chief Financial OfficerCancer Treatment Centers of America®
The patients, caregivers and stakeholdersat Cancer Treatment Centers of America
congratulate Chuck on his accomplishments.
©2012 Rising Tide
COMING NEXT ISSUE
For additional information, call 602.277.6045 or visit, AZBusinessMagazine.com
• The state’s 50 biggest employers reflect the economic recovery
• Industry Leaders of Arizona award winners are revealed
• Association for Corporate Counsel Awards
• Can you fire someone if you don’t like their tattoos or piercings?
• GPEC helps Valley take center stage in global economy
AB | November-December 2012 71
Wishes. Just nice?
Wishes.So necessary.
In the battle against life-threatening medical conditions, why is wish
granting important?
Because 89 percent of doctors, nurses and other health professionals say a Make-A-Wish® experience can infl uence the physical health of seriously ill kids*.
Because wish kids say the wish is a turning point in their struggle.
And parents say wishes return hope
and strength to their families.
Because wishes make life better for everyone. Find out how at wish.org.
*Make-A-Wish® America. “Wish Impact Study Results – Second Phase: Jan – Aug 2011: Survey of Medical/Healthcare Professionals.” November 2, 2011.
Elijah, 3neuroblastoma
I wish to go out on the range
Congratulations to Paul Mehlhorn, Chief Financial Offi cer for
Make-A-Wish America, for being named a fi nalist for 2012 CFO of the Year.
Paul is our CFO of the year every year.Make-A-Wish America, for being named a fi nalist for 2012 CFO of the Year.
The Logistics Group CongratulatesJim Coates
On your CFO of the Year Nomination!
Thank you for all your
hard work at The Logistics
Group!
Jim Coates, Jim Coates, 2012 CFO of
the Year Finalist
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www.phoenixchildrens.com
1 million square feet
Congratulations to Phoenix Children’s CFO Craig McKnight, and to all the CFO of the Year finalists.
1000 pediatric specialists
72 AB | November-December 2012
Got milk? The swoosh stripe. The Aflac duck. Kleenex. Successful branding effectively uses a name, term, design, symbol, or even a musical jingle to distinguish a product or service from those of other sellers.
“Brands are sincere, distinct and consis-tent,” says David Eichler, creative director and
founder of David and Sam PR. “Brands are, by definition, built over time. A brand is a promise kept to its consumer, over and over.”
While it’s common sense to think that effective branding will lead to an increase in business, what are the most critical things to remember when a company tries to build an effective branding campaign?
“First, it’s important to understand that while there’s a time and place for a specific branding campaign, effective branding should be an ongoing effort for every organization,” says Christine Olivas, director of client services for Off Madison Ave + SpinSix. “How and when to communicate the company’s values shouldn’t be a one-time outreach.”
However, Olivas says there are times when a branding campaign makes sense:
• When you are looking to change perceptions in the marketplace.
• When a new product or service is launching.• Or, when you are introducing yourself to a particular market or segment.“In these instances, it is important to consider how to make an
impact while ensuring that the subsequent marketing and operational efforts can continue to support and sustain the awareness you’re creating,” she stresses. “The last thing you want is to have a campaign that drives, say, tons of buzz in the social space but to not have an ongoing social media strategy that will continue the conversation when the blitz is over. You should also have an obsessive eye on visual
consistency. If you are launching a brand campaign, make sure the look and feel aligns with your core identity so as not to create confu-sion in the marketplace.”
While Olivas touched on the impact of social media on 21st-centu-ry branding, there is no denying that it’s changed the way companies market themselves.
“Social media is like a two-way megaphone for brands,” Eichler says. “Consumers are now empowered to share their experi-
ences — positive and negative — and brands have the ability not only to convey their brand’s attributes,
but reinforce them by how they interact with their customers. Especially when someone is
disappointed with their experience with the brand.”
That ability for consumers to imme-diately engage is why successful brands need to have depth to their brand story and relevant reasons for people to want to engage, according to Bob Case, the Lavidge Company’s chief creative officer and creative director.
“Setting up a Pinterest account and a Facebook page aren’t effective unless you
have a reason for having them,” Case says, “a strategy for how you want to shape the
message and a plan for the unplanned — negative responses, etc.”
Case says his best advice when creating a brand is to keep the message simple.
“Advertising is expensive, which can lead to companies trying to sell everything about their products and services in every mes-sage,” he says. “What’s the one thing you want people to know? It should be devastatingly difficult to build your campaigns because of what you leave out.”
Az Business magazine recognizes the impact that effective marketing and branding has on a company’s success. So on the pages that follow, we highlight the winners of our first Branding AZ awards, as voted on by our readers and our editorial panel.
BRANDING AZ
BRANDINGAZ
By MICHAEL GOSSIE
LEAvInGAn IMPRESSIOnEffective branding boosts business, but experts say keeping it simple is imperative, even in the era of social media
AB | November-December 2012 73
HEALTHCARE
Winner: Phoenix Children’s HospitalBrains behind the branding: Debra Ste-vens, WDCW AdvertisingFocus of branding: As Arizona’s only hospital that is focused 100 percent on the needs of children, PCH is able to provide a higher level of medical care.Highlight of branding campaign: Documentary-style spots allow Phoenix Children’s physicians to tell why being 100 percent for children matters. Multimedia campaign directs viewers to landing pages with deeper information.
Honorable mentionBanner HealthDignity Health
SPORTS AnD RECREATIOn
Winner: Mountainside FitnessBrains behind the branding: Stephanie Pereyra, marketing director, Mountainside FitnessFocus of branding: What’s your goal? At Mountainside Fitness, they off er their custom-ers a wide range of amenities that make conquering any level, any reason, any goal, possible.Highlight of branding campaign: Brand is highlighted through a full-brand campaign including digital, social media, billboards, commercials, direct mail and radio. Its brand is well-known through numerous community outreach initiatives and sponsorships.
Honorable mentionArizona Diamondbacks, Phoenix Suns
TECHnOLOGY
Winner: LifeLockBrains behind the branding: Marvin Davis, LifeLock chief marketing offi cerFocus of branding: Identity thieves are everywhere. Th erefore, LifeLock has to be relentless. Th e LifeLock army represents strength and vigilance in the pursuit of pro-tecting our members’ personal information.Highlight of branding campaign: Th e in-troduction of LifeLock Ultimate, the most comprehensive identity theft protection service and the only one to protect against bank account takeover fraud.
Honorable mentionInsight Go Daddy
RETAIL
Winner: Discount TireBrains behind the branding: Discount Tire handles all branding eff orts internally.Focus of branding: Discount Tire sponsors nASCAR nationwide Series and Monster Energy AMA Supercross.Highlight of branding campaign: Th e company’s Tv ads feature a 10-second clip fi rst fi lmed and used in 1975, in which a “little old lady” tosses a tire through a store-front window. Th is ad has made the Guin-ness Book of World Records for the longest, continuously-running television ad.
Honorable mentionMassage EnvyOregano’s
BRANDINGAZ
EXPERTS’ BEST BRANDINGHere are some of the Valley’s best mar-
keting experts’ picks for the best branding efforts:
David Eichler, creative director and founder of David and Sam PR: “The one that comes to mind, given the time of year is the NFL. In the 45 years of Super Bowls, the league has masterfully overtaken all other American sports in sales, merchandising, ad revenue and fan loyalty. They are savvy in how they have positioned themselves as vested in communities and causes.”
Isabelle Jazo, vice president of brand strategy at E.B. Lane: “Apple’s brand arche-type is ‘Revolutionary.’ The brand associates itself with thought leaders, artists and people in history that changed the rules of the game ... Apple’s marketing certainly gets people’s attention, but the customer experience is what makes the branding phenomenal.”
Bob Case, the Lavidge Company’s chief creative offi cer and creative director: “I’d go with Nike. Not for any single campaign, but for their overall brand. They are a vibrant, living brand that re-invents itself without losing its
core truth. It’s relevant, serious, fun, humorous, inspirational — in truth, a well-rounded robust story.”
Christine Olivas, director of client ser-vices for Off Madison Ave + SpinSix: “The best example of a brand that has become an experience is Zappos, an online retailer. From day one, the company has embraced service as a differentiator, but service isn’t just defi ned as a helpful customer service representative. Instead, the company has extended its friendly and fun approach to doing business across all internal and external communications.”
74 AB | November-December 2012
GREEn
Winner: APSBrains behind the branding: John Hat-fi eld, vice president of corporate communi-cationsFocus of branding: APS is committed to providing safe, reliable and aff ordable power to its customers.Highlight of branding campaign: Educat-ing its customers on ways to save energy and money through energy effi ciency programs and services.
Honorable mentionClean Air CabHarmon Solar
BRANDING AZ
BUSInESS SERvICES
Winner: SRPBrains behind the branding: Gena P. Trimble, chief communications executiveFocus of branding: SRP’s campaigns are designed to educate and inform its custom-ers about the benefi ts of SRP programs and services.Highlight of branding campaign: SRP’s marketing communications promote en-ergy effi ciency and water conservation that help its customers save valuable resources and money.
Honorable mentionAPSCox Communications
FInAnCIAL InSTITUTIOnS
Winner: national Bank of ArizonaBrains behind the branding: E.B. LaneFocus of branding: As true business partners, national Bank of Arizona under-stands and supports the entrepreneurial spirit of successful Arizona businesses.Highlight of branding campaign: Dem-onstrating the success and mindset of two of the state’s most recognizable entrepre-neurs and nB|AZ clients, Sam Fox, owner of Fox Restaurant Concepts, and Shawn Wendell, owner of Pink Jeep Tours.
Honorable mentionDesert Schools Federal Credit UnionWells Fargo
EDUCATIOn
Winner: University of PhoenixBrains behind the branding: Arra Yerga-nian, University of Phoenix chief marketing officerFocus of branding: University of Phoenix’s “Let’s Get to Work” campaign focuses on the link between a quality education and a fulfi lling and challenging career.Highlight of branding campaign: Uni-versity of Phoenix gives students resources to graduate in their course of study as well as helps prepare and link them to fulfi lling careers.
Honorable mentionArizona State UniversityGrand Canyon University
REAL ESTATE
Winner: Pulte HomesBrains behind the branding: Sharon Ruby, director of marketing Focus of branding: At Pulte Homes, all of its homes are Life Tested because it takes ideas from its own homeowners and uses them when designing new homes. Highlight of branding campaign: Pulte homes are constantly being updated with innovations that come from the people who know how a home should function; the people living in them. Th at means its homes aren’t just built for life, they are built for how you live.
Honorable mentionFulton HomesLennar Homes
BRANDINGAZ
nOnPROFIT
Winner: Arizona LotteryBrains behind the branding: E.B. Lane and Kim McGlothlen, director of marketing and advertising for the Arizona LotteryFocus of branding: Th e “How the Money Helps” campaign focuses on the Arizona Lottery’s funding of a variety of public projects and programs that enrich the lives of Arizona residents. Highlight of branding campaign: A video series depicting benefi ciary stories.
Honorable mentionGoodwill of Central ArizonaArizona Animal Welfare League
76 AB | November-December 2012
Winner: Fairmont Scottsdale PrincessBrains behind the branding: Pam Gilbert, director of sales and marketing at the Fair-mont Scottsdale PrincessFocus of branding: “Summer at the Princess,” turning moments into memories with activities for the whole family, from spa to golf, restaurants, Bobcat Billy’s Clubhouse, poolside games, concerts and fi reworks.Highlight of branding campaign: Celebrating summer, ads focused on special Legacy Event weekends such as 4th of July Freedom Fest and Labor Day Dream-cation, with fi re-works, Dive-In movies and the new Techno Waterslide, every weekend, all summer long.
Honorable MentionSanctuary on Camelback Mountain
TOURISM
Winner: Talking Stick ResortBrains behind the branding: Peter Arceo, senior director of sales and marketing for Talking Stick Resort and Casino ArizonaFocus of branding: Talking Stick Resort is the fi nest place in town to dine, spa, stay, play and be entertained in style while enjoying unparalleled views of Scottsdale. Highlight of branding campaign: Talking Stick Resort is the ultimate destination for business and hospitality, off ering the val-ley’s most stylish amenities.
Honorable mentionArizona Science CenterHotel valley Ho
OUTDOOR
Winner: My Sister’s ClosetBrains behind the branding: David Eichler and Tyler Rathjen, David and Sam PRFocus of branding: Conveying that My Sis-ter’s Closet and My Sister’s Attic are a more sophisticated interpretation of what people typically think of in a consignment store.Highlight of branding campaign: Using billboards, wrapped buses and cars to communicate to a wider audience that the brands are high-end but also whimsical in a risqué way.
Honorable MentionOregano’s
SOCIAL MEDIA
Winner: Greater Phoenix Conven-tion & visitors BureauBrains behind the branding: Melissa Gogel, director of marketingFocus of branding: One of Phoenix’s greatest destination attributes is sunshine. Th is fuels much of the CvB’s messaging and is ingrained in its photography, which often depicts outdoor activities. Th is includes dining, recreation and relaxing.Highlight of branding campaign: Th e most important component of the CvB’s ongoing marketing eff orts is its website, visitphoenix.com. It allows the organiza-tion to fully represent the destination and the outdoor lifestyle that Phoenix off ers.
Honorable MentionUniversal Technical Institute
Tv
Winner: Go DaddyBrains behind branding: Barb Rechter-man, chief marketing offi cer and senior executive vice president, GoDaddy.comFocus of branding: Th e “Inside / Out” campaign focuses on contrasts between Go Daddy’s edgy “outside” image and the seri-ous “inside” where technology and service are primary values.Highlight of branding campaign: Th e campaign pokes fun at Go Daddy’s risqué reputation, re-focusing on the company’s core brand of service and technology for the mainstream.
Honorable MentionDiscount Tire
BRANDING AZ
BRANDINGAZ
RADIO
Winner: Sleep AmericaBrains behind the branding: Destination MarketingFocus of branding: Sleep America wants to positively impact the quality of life through better sleep for its customers. Th is promise has been consistent since its incep-tion in 1997, and is the key component of its customer’s experience. Highlight of branding campaign: Th e iconic radio jingle, “Sleep American, where America goes to sleep,” shows who they are, what they do, and why you should care.
Honorable MentionSanderson Ford
AB | November-December 2012 77
I N D U S T R Y L E A D E R Sof Arizona
AWARDSFebruary 7, 2013 6 p.m. - 8 p.m.
Ritz Carlton, PhoenixIndustry Leaders of Arizona recognizes businesses and business leaders who through hard work and
innovation think beyond traditional boundaries and help lead the future of Arizona business. This year,
we will honor the following industries:Healthcare • Retail • HospitalityAlternative Energy • Distribution
Visit AzBusinessMagazine.comor call 602.277.6045 to reserve your seat.
RESERVEYOUR SEATS
FOR THE
78 AB | November-December 2012
Despite the slow economic recovery, Arizona already has many businesses showing impressive growth and even job creation. Th e W. P. Carey School of Business at Arizona State University is recognizing 10 of the state’s biggest achievers as fi nalists for this year’s prestigious Spirit of Enterprise Awards.
Th e awards, now in their 16th year, honor fi rms for ethics, energy and excellence in entrepreneurship. Past winners include well-known names like Cold Stone Creamery, Ollie the Trolley and Sundt Construction. Finalists are noted for creating a positive culture both internally and in the community as a whole.
Th e Spirit of Enterprise Awards are just one focus of the Spirit of Enterprise Center, which helps hundreds of businesses each year. Th e center off ers companies the chance to recruit and meet with top student talent, while also allowing students to get hands-on business experience. One key program, Student Teams for Entrepreneurship Projects (STEP), matches teams of W. P. Carey School of Business students with valley companies to help tackle real-world challenges and opportunities. Companies can also use the center to access other ASU business resources. Th e center is self-funded and utilizes community sponsorships and volunteers to sustain its activities.
Spiritof EntErprisE AwArds
FInALISTS BOAST JOB CREATIOn, CHARITY WORK, InnOvATIvE FEATURES
NJOYad_JG_P001.pgs 10.25.2012 15:11 BLACK YELLOW MAGENTA CYAN
T h u r s d a y , N o v e m b e r 1 , T h e J W M a r r i o t t D e s e r t R i d g e R e s o r t & S p a
2012
Celebrating Ethics,
Energy and Excellence
in Entrepreneurship
TM
o f E n t e r p r i s e A w a r d s
80 AB | November-December 2012
CyberMark International
When Kimberly Judd-Pennie started selling
websites in 1994, she wasn’t thinking it would be-come a long-term career, let alone a successful business. “I was a single mother, and I just needed a way to make money.” But she was in the right place at the right time, just enough ahead of the Web revolution to have a competitive edge.
“I taught myself HTML programming,” Kimberly recounted. “I sold websites all day and coded all night, with my baby boy sleeping by my side. Failure was not an option; I had no other way to support my-self.” With that powerful incentive, Kimberly grew CyberMark into a success-ful company.
Today, CyberMark provides search engine optimization (SEO), pay-per-click (PPC), and social media marketing ser-vices, mostly to small- and medium-sized businesses. Kimberly said the biggest challenge is keeping up with the incredibly rapid pace of change on the internet. “It’s kind of like you have to rethink your whole business model ev-ery six months,” she said.
Nature of business: Full-service internet marketingAddress: 2222 W. Parkside Ln., Phoenix, AZ 85027Web: CyberMarkIntl.comFounded: 1994Employees: 26
180 Degrees Automotive, Inc.
When Sarah “Bogi” Latein-er decided
to open her own auto repair shop, she “had no business plan, no money.” What Bogi did have was a passion and a talent for fixing cars.
With a focus on women and minorities — custom-ers who have traditionally been neglected or exploited by the auto repair industry and feel particularly intimi-dated by it — 180 Degrees Automotive grew rapidly, doubling each year after the first. “I was booked out two weeks in advance, but I knew that growth was not sustainable, that I was succeeding despite myself,” Bogi explained.
So she decided to learn how to be a business owner. Bogi discovered that focusing on the numbers and the sys-tems behind her busi-ness allows her more time to do the things she’s passionate about. That includes moving 180 Degrees Automo-tive into a new building, which she owns, teach-ing car care classes, and co-hosting an all-women car repair Tv show.
Nature of business: Automotive repairAddress: 545 W. Mariposa St., Phoenix, AZ 85013Web: 180auto.comFounded: 2006Employees: 6
Daphne’s Headcovers
When Jane Spicer was 10 years old,
she sewed a bagful of stuffed toys to sell to friends and neighbors. At the Park & Swap she made $200, and has been hooked on entre-preneurship ever since.
“When I was 16, a customer suggested that I make animal golf club covers.” Jane taught herself how to get past the attendants and as-sistants at golf resorts to get to the buyers. It worked: sales grew 400 percent in one quarter, her animal headcov-ers becoming the best selling item in golf after Tiger Woods started using one.
When the reces-sion hit in early 2008, Jane said that she was paralyzed with fear. “I stopped taking a salary. I sold everything at home that wasn’t nailed down. But I never missed pay-roll and I didn’t lay off a single key employee. By 2011 we were profitable again.” Nature of business: Manufacturer of animal/novelty golf club coversAddress: 337 W. Melinda Ln., Phoenix, AZ 85027Web: DaphnesHeadcovers.comFounded: 1978Employees: 19
GlobalMed
In 2002, when Joel Barthelemy started the business that
would become Glo-balMed, he made imaging equipment for quality assurance in the semiconductor industry. “We did about $1 million a year in sales,” Joel re-counted. “Just enough to keep the doors open.”
The company’s move into telemedicine came at the suggestion of a Tu-lane University patholo-gist. Joel took his advice and in April, 2005, GlobalMed delivered its first system: cameras and software for the first re-mote pathology consult, at Tulane.
Today, GlobalMed continues to develop the software and manufac-ture the equipment that makes telemedicine pos-sible. “To date, we have installed well over 2,000 telemedicine systems in 55 countries,” Joel explained. “We provide patients with access to healthcare wherever there’s an Internet con-nection.” He added, “We’re changing the healthcare system in the U.S. and globally.”
Nature of business: De-velops and manufactures healthcare IT systemsAddress: 15020 N. 74th St., Scottsdale, Arizona 85260Web: GlobalMed.comFounded: 2002Employees: 107
Spiritof EntErprisE AwArds
Hard Dollar
Hard Dollar was founded in 1989 to dramatically
improve how estimat-ing and project cost management (PCM) for capital projects is man-aged. Four years ago, when the bottom fell out of the construction market, the company re-invented itself. “The real estate crash forced us to rethink what solutions we offered, to whom, and how we delivered them,” explained Ron Babich, Hard Dollar’s vP of Sales and Marketing.
Where it once focused on helping construction companies build as fast as possible, Hard Dollar now focuses on helping them work as efficiently as possible. Hard Dollar provides project cost management software to help companies in the construction, mining, engineering, oil and gas, and energy markets manage productivity and cost.
“There are $10 billion, 40-year projects being managed in Excel,” Ron said. “Our biggest com-petitor is not another technology company — it’s spreadsheets.”
Nature of business: Proj-ect cost management (PCM) softwareAddress: 9977 N. 90th St., Scottsdale, AZ 85258Web: HardDollar.comFounded: 1989Employees: 56
To see the 2012Spirit of Enterprise
winners, please visitour website after
Novermber 1, 2012.
For more information aboutour programs please visit us at
www.SpiritOfEnterprise.org
The Spirit of Enterprise CenterOpening Doors for Your Great Ideas
The Spirit of Enterprise CenterW. P. Carey School of BusinessArizona State UniversityP: 480.965.0474F: 480.727.6185E: [email protected]
With Appreciation to Those Who Invest in Our Work.
180 Degrees Automotive, Inc. • CyberMark International • Daphne’s HeadcoversGlobalMed • Hard Dollar • LawLogix Group, LLC • NJOY, Inc.
Optimal Performance Training • Real Property Management East Valley • Total Transit
Congratulations to Our 2012 Spirit of Enterprise Finalists!
2012Celebrating Ethics,
Energy and Excellence
in Entrepreneurship
TM
82 AB | November-December 2012
LawLogix Group, LLC
In 2000, LawLogix co-founder Brian Taylor was sitting at a Burger
King near the consulate in nogales, Mexico, wait-ing for a new U.S. visa to be approved. His own immigration experience was time consuming and frustrating, and he knew there had to be a better way for immigrants to share their case informa-tion with attorneys.
So LawLogix — a software company focused on creating the easiest-to-use and most secure immigration case management and I-9 compliance software available — was born. Brian and his co-founder Dan Siciliano, a law pro-fessor at Stanford, set out to develop a service that would automate what is otherwise a time-, labor-, and paper-intensive hir-ing and visa application process.
Today, LawLogix software and services are used by more than 155,000 organizations and 4.2 million foreign nationals worldwide.
Nature of business: I-9, E-Verify, and immigration case management softwareAddress: 3111 N. Central Ave., Phoenix, AZ 85012Web: LawLogix.comFounded: 2000Employees: 52
Spiritof EntErprisE AwArds
NJOY, Inc.
nJOY’s electronic cigarettes are de-signed to mimic
the addictive elements of smoking — the nicotine and the hand-to-mouth-inhale habit — without the cost that smoking causes, including the high cost, odor, and social stigma. nJOY’s electronic ciga-rettes look and feel like a real cigarette, emitting what looks like smoke but is actually a smoke-free vapor. The “smoker” inhales nicotine vapor but no tar or tobacco.
CEO Craig Weiss said that more than anything, nJOY is a technology com-pany. “Cigarettes haven’t changed in 70 years,” he said. “We’ve developed a revolutionary technol-ogy that I hope will make tobacco cigarettes obsolete.”
nJOY leads the elec-tronic cigarette market with a 40 percent share. Craig knows that lead will be challenged soon, and he’s prepared. “We have a David v. Goliath mentality. Our little company took on the FDA in 2009, and we won. We view Big To-bacco the same way.”
Nature of business: Electronic cigarettes Address: 15211 N. Kier-land Blvd., Suite 200, Scottsdale, AZ 85254Web: njoy.comFounded: 2006Employees: 30
Optimal Performance Training
In 2008, Joey Bel-lus quit his job as a personal trainer
to follow his dream of owning a health and fit-ness training center. He started out training five clients in a 150-square-foot exam room within a chiropractor’s office.
A year later, he made the big decision to sign a three-year lease on a much larger space. It was, he said, “the scariest risk I had ever taken.” After two weeks of set-ting up the new location, Joey had $90 left to his name. “That was it ... The only way I overcame that challenge was self-belief.”
That outlook is one defining feature of Optimal Performance Training, where trainers work with more than 100 clients. “We not only challenge our clients to better themselves physi-cally, but mentally as well. We encourage them to live life ‘out of the box’ and push their personal boundaries. Conquer-ing fears, setting bigger goals, doing things in daily life that will help them live.”
Nature of business: Per-formance in health, fitness and lifeAddress: 725 W. Com-merce Ave., Gilbert, AZ 85234Web: OptimalAZ.comFounded: 2008Employees: 4
Real Property Management East Valley
When Clint Rowley and his wife Kim
started Real Property Management East valley in 2007, they wanted to change the perception that property manag-ers are a necessary evil and few good ones exist. Just 30 days after launching the business out of a spare bedroom in their home, Clint and Kim were managing 100 properties. Today, the company manages more than 1,400 units, and has consistently posted revenue growth of 30 percent a year.
not that Real Property Management East valley hasn’t been through its share of ups and downs. “In 2009 and 2010,” Clint ex-plained, “we lost about 600 homes to foreclo-sure – more than most companies ever manage ... We had to grow stron-ger and smarter.”
The positive environ-ment at Real Property Management East valley is clear: “Our employees don’t just work for us, we work for them and we all work as a team.”
Nature of business: Full-service residential property managementAddress: 950 E. Brown, Mesa, AZ 85203Web: RPMEastValley.comFounded: 2007Employees: 32
Total Transit
When Total Transit CEO Craig Hughes
bought a small airport cab company in 1984, he had only ridden in a cab twice, never in Phoe-nix. needless to say, he had to learn on his feet, and learn quickly.
He did, and today Total Transit is a cab company unlike any other. For starters, the company manages both public and private transportation services, including Discount Cab, express route and para-transit service for valley Metro, and service for many of the largest Medicaid and Medicare providers in the region. It’s a model Total Tran-sit hopes to see spread. “We are truly committed to integrating and man-aging public and private transportation services in a new way. Our goal is to create the most efficient, cost-effective, and environmentally re-sponsible transportation network possible.”
Total Transit has grown 25-35 percent an-nually over the last few years and set to grow more than 40 percent this year.
Nature of business: Transportation servicesAddress: 4600 W. Cam-elback Rd., Glendale, AZ 85301Web: TotalTransit.comFounded: 1984Employees: 300
Gordon Gecko had it all wrong.Greed isn’t good. Giving is.And thanks to the Arizona Centennial Challenge,
Arizonans have taken this to heart, and are commit-ting to serve 100 volunteer hours by February 2013.
Anecdotally, we know that people would rather work for, invest in and buy from businesses who are engaged in the community.
“Arizonans have a long-standing history of volunteerism and community service,” said Catherine Rea Dunning, executive director of 2-1-1 Arizona. “We estimate the volunteers in our state have made a fi nancial impact of upwards of $14 million each year, giving of their time and talent to a wide variety of nonprofi t, civic and community service organizations.”
2-1-1 Arizona serves as Arizona’s key source of information that brings people and services together to meet the vital needs in the state. In addition to the integrated 2-1-1 service it provides, it’s new online volunteer management system, 211arizona.volun-teermatch.org, allows organizations to publish and recruit for their volunteer opportunities, plus track volunteer hours. Individuals can take the Arizona Centennial volunteer Challenge, as well as search the site to fi nd opportunities in their communities. Individuals can also keep track of their volunteer eff orts.
“Th ere is a direct correlation between busi-nesses that volunteer within the community and
increased brand awareness, enhanced reputation and employee retention and engagement,” said Dunning. “Th e simple act of volunteering together as a business also improves communica-tion between employees and their supervisors as well as across entire departments.”
Th e Arizona Commission on Service and volunteerism has partnered with 2-1-1 Arizona to promoting volunteerism in Arizona and providing local communities with new tools to be strengthened through service.
For the past decade, the Commission has honored Arizona residents and businesses that give back, through its Governor’s volunteer Service Awards. Th e awards honor outstanding in-
dividuals, organizations and businesses who exemplify the motto “Give Today, Touch Tomorrow.”
In 2012, Prudential was honored with the service award in the category of large
business for their support of Jobs for Arizona’s Graduates (JAG), which helps young people stay in school and acquire the academic, personal, leadership and vocational skills they need to be suc-cessful. Prudential has been involved in everything from board leadership to event planning to program develop-
ment. Prudential also became increas-ingly involved directly with JAG students,
engaging in classrooms, presenting at conferences and providing direct training to
students on key job readiness topics.
GIvInG IS GOOD BUSInESS2-1-1 Arizona helps match organizations with volunteer opportunities
By ALISOn BAILIn BATZ
ARIZONACORPORATE
ANGELS
GETTING STARTEDIf your business is already engaged in
community programs and service projects – keep it up! Be sure to log your volunteer hours at 211arizona.volunteermatch.org. Individuals and organizations reporting their efforts can receive a certifi cate of achievement signed by the governor.
Not sure how to get started? Simply point and click 211arizona.volunteer-
match.org for more information.
AB | November-December 2012 83
84 AB | November-December 2012
ARIZONA CORPORATE ANGELS
United Cerebral Palsy of Central Arizona
Mission statement: UCP of Central Arizona provides comprehensive services to individu-als with disabilities and their families by provid-ing physical and developmental support, as well as educational growthwhich is the foundation for independent living.
To contribute: Donations can be made at your neighborhood Circle K stores in thecoin collection cannisters.
To volunteer: Volunteers, interns, peer men-tors, administrative work and help with specialevents are always needed.
Achievements: Opened Cafe Without Limits, a snack bar and retail store that provides job skills training for adults with dis-abilities.
United Cerebral Palsy of Central Arizona
1802 W. Parkside LanePhoenix, AZ 85027
(602) 943-5472ucpofcentralaz.org
of Central Arizona
1802 West Parkside Lane
1-888-943-5472 www.UCPofCentralAZ.org
UCP of Central Arizona assists individuals with disabilities and their
families. Those served have disabilities including cerebral
palsy, autism, Down syndrome, developmental delays and
learning disabilities.
• Early Intervention• Early Learning Center• Day Treatment & Training• Home & Community Based Services• Therapy Services• Information and Referral
Our Services:
Phoenix, Arizona 85027
86 AB | November-December 201286 AB | November-December 2012
ARIZONA CORPORATE ANGELS
Magellan Cares
Mission statement: The Magellan Cares corporate citizenship program enables employees of Magellan Health Services to take social action, support their community and develop as leaders while helping to solve social problems across central Arizona. Together we are “One Magellan,” a company with heart made up of people who care about doing the right thing to help our clients, our col-leagues and our community.
“Thank you for organizing the household and personal care items drive... [I] truly could not believe the many items and comprehensive nature of the items that were collected.”
– Eddie Sissons, Executive Director, Arizona Foundation for
Behavioral Health
Did you know: Four of Magellan’s busi-nesses are located here in Arizona, and employees from all four come together as One Magellan to volunteer.
How to help: Friends and family of Ma-gellan’s employees also volunteer with us. We encourage other businesses to join with us in supporting nonprofi ts in need.
Magellan Health Services of Arizona4801 E. Washington St., #100,
Phoenix, AZ 85034(602) 572-2300
MagellanofAZ.com
National Alliance on Mental Illness (NAMI) More 360 employees and their families in 2011 and 2012 participated in NAMI Walks and raised thousands of dollars in support of those challenged with mental illness. In a separate event, employees and their families biked to raise additional funds for NAMI.
Ronald McDonald HouseVolunteers on five evenings made and served dinner for families with sick children.
Behavioral Health Service RecipientsEmployees donated almost 9,500 bottles of water for those in need during the hot summer months.
Arizona Behavioral Health CorporationIn 2011 and 2012, employees donated more than 1,000 new household and personal care items to build home startup kits for individuals transitioning from homelessness to housing.
Autism Speaks 5-K Walk Magellan employees and their family members and friends walked and raised funds for autism research and care.
MY Fest Youth FestivalsVolunteers staffed booths for the festival, which was led by Magellan Youth Leaders Inspiring Future Empowerment (MY LIFE) and in both years garnered more than 6,000 attendees and greater awareness of how those challenged with mental illness can and do achieve recovery.
Habitat for HumanityIn honor of National Volunteer Week 2012 (April 15 to 21), 30 Magellan Cares volunteers used their talents and skills to help a single mom and her son build their first home through Habitat for Humanity.
Magellan Employees Give Back
Since Magellan Cares’ launch in 2011, Magellan employees, family members and friends have given freely of their pocketbooks and talents, not to mention more than 960 hours in volunteer time.
Here are some highlights from our corporate citizenship program since its inception:
UMOM New Day CenterIn honor of 2012 Children’s Mental Health Awareness Week (May 6 to 12), Magellan Cares volunteers participated in UMOM New Day Center’s Read to Me program, a weekly literacy program for children of families staying at UMOM’s New Day Center, which provides housing for homeless families.
Valle del SolEmployees supported behavioral health provider partner Valle del Sol in its annual fundraising event, Profiles of Success, by setting up for the event, stuffing information bags, setting tables and organizing event materials.
Anti-Bullying SummitEmployees supported Phoenix First Lady Nicole Stanton’s Anti-Bullying Summit by stuffing information bags for the event, which attracted more than 300 school administrators, teachers, counselors, nurses and other adults in positions to affect anti-bullying.
United Blood ServicesIn 2011, United Blood Services recognized Magellan employees with a bronze donor award. In our first blood drive of 2012, employees saved nearly 84 lives in the community through blood donations.
2011 and 2012 Computer Giveaway ProgramIn 2011, volunteers helped give away 280 Magellan computers to behavioral health recipients and their family members, and 20 computers to peer/family-run and service provider agencies—connecting these individuals to online resources available with technology. This year’s program will give away another 300 computers.
National Alliance on Mental Illness (NAMI) More 360 employees and their families in 2011 and 2012 participated in NAMI Walks and raised thousands of dollars in support of those challenged with mental illness. In a separate event, employees and their families biked to raise additional funds for NAMI.
Ronald McDonald HouseVolunteers on five evenings made and served dinner for families with sick children.
Behavioral Health Service RecipientsEmployees donated almost 9,500 bottles of water for those in need during the hot summer months.
Arizona Behavioral Health CorporationIn 2011 and 2012, employees donated more than 1,000 new household and personal care items to build home startup kits for individuals transitioning from homelessness to housing.
Autism Speaks 5-K Walk Magellan employees and their family members and friends walked and raised funds for autism research and care.
MY Fest Youth FestivalsVolunteers staffed booths for the festival, which was led by Magellan Youth Leaders Inspiring Future Empowerment (MY LIFE) and in both years garnered more than 6,000 attendees and greater awareness of how those challenged with mental illness can and do achieve recovery.
Habitat for HumanityIn honor of National Volunteer Week 2012 (April 15 to 21), 30 Magellan Cares volunteers used their talents and skills to help a single mom and her son build their first home through Habitat for Humanity.
Magellan Employees Give Back
Since Magellan Cares’ launch in 2011, Magellan employees, family members and friends have given freely of their pocketbooks and talents, not to mention more than 960 hours in volunteer time.
Here are some highlights from our corporate citizenship program since its inception:
UMOM New Day CenterIn honor of 2012 Children’s Mental Health Awareness Week (May 6 to 12), Magellan Cares volunteers participated in UMOM New Day Center’s Read to Me program, a weekly literacy program for children of families staying at UMOM’s New Day Center, which provides housing for homeless families.
Valle del SolEmployees supported behavioral health provider partner Valle del Sol in its annual fundraising event, Profiles of Success, by setting up for the event, stuffing information bags, setting tables and organizing event materials.
Anti-Bullying SummitEmployees supported Phoenix First Lady Nicole Stanton’s Anti-Bullying Summit by stuffing information bags for the event, which attracted more than 300 school administrators, teachers, counselors, nurses and other adults in positions to affect anti-bullying.
United Blood ServicesIn 2011, United Blood Services recognized Magellan employees with a bronze donor award. In our first blood drive of 2012, employees saved nearly 84 lives in the community through blood donations.
2011 and 2012 Computer Giveaway ProgramIn 2011, volunteers helped give away 280 Magellan computers to behavioral health recipients and their family members, and 20 computers to peer/family-run and service provider agencies—connecting these individuals to online resources available with technology. This year’s program will give away another 300 computers.
88 AB | November-December 2012
Mission statement: Hospice of the Valley is guided by our mission — bringing comfort and dignity as life nears its end — and our vision to set the standard of excellence for end-of-life care. Our care team members work together to meet the physical, emotional and spiritual needs of patients and families.
Did you know: We are one of the nation’s oldest and largest not-for-profi t hospices, serving 4,000 patients daily in central Arizona.
How to help: Listen to a story. Hold a hand. Sing a song. Ring up a sale. Sort merchandise. Sew a quilt. Give a speech. Make phone calls. Touch someone’s heart. Show you care. Change lives – including yours. Hospice of the Valley’s 2,600 volun-teers play critical roles throughout the agency everyday.
Hospice of the Valley1510 E. Flower St., Phoenix, 85014(602) 530-6900hov.org
ARIZONA CORPORATE ANGELS
Hospice of the Valley
As a physician, and as a son,
I recommend Hospice of the Valley.
They cared for my parents. Now they care for my patients.
— Ned Stolzberg, MDCommunity Physician
HOV Medical Director
602.530.6900 | hov.orgNot for profit. For Comfort.
90 AB | November-December 201290 AB | November-December 2012
ARIZONA CORPORATE ANGELS
Gabriel’s Angels
Mission statement: Gabriel’s Angels de-livers healing pet therapy to at-risk children, nurturing their emotional development and enhancing the quality of their lives forever. These Pet Therapy visits provide uncondi-tional love and acceptance to a child that desperately needs it, and help to teach critical life skills for growth into non-abusing adults.
Did you know: Gabriel’s Angels reaches more than 13,000 at-risk Arizona children each year through 150 volunteer Pet Therapy Teams. To provide Pet Therapy to one child for a year costs just $25. How to help: Volunteer as a Therapy Team with your dog or Helping Hand to a Team. Become a board or committee member. Tell others about Gabriel’s Angels mission. Sponsor a team or child.
Gabriel’s Angels1550 E. Maryland Ave., #1,
Phoenix, AZ 85014(602) 266-0875
GabrielsAngels.org
Thank YouSponsors
the arizona republic/azcentral.combridgeway health solutions
national bank of arizonapetsmart
sleep americaunited healthcare
Proud Supporters arizona biltmore montes wines the capital grille molina fine jewelers frontdoors news seasons 52
Presenting Sponsor
GabrielsAngels.org
Secure your sponsorship today for Salud! 2013! Contact Zee Peters at 602-266-0875 x13.
All proceeds support Gabriel’s Angels mission to deliver healing pet therapy to at-risk children, nurturing their emotional development and enhancing the quality of their lives forever.
Salud!signature wine dinner event
Unleash the Love for Gabriel’s Angels
We are pleased to announce the Presenting Sponsor for Salud! 2013
Event ChairsLen and Debbie Gaby
Honorary Chairs David and Dawn Lenhardt
92 AB | November-December 201292 AB | November-December 2012
ARIZONA CORPORATE ANGELS
Native American Connections
Mission Statement: Native American Connections improves the lives of individuals and families through Native American culturally appropriate behavioral health, affordable housing and community develop-ment services. For 40 years (1972-2012), NAC has provided a continuum of services to all populations with the purpose of helping people move forward to self-suffi ciency and wellness.
Did you know: Devine Legacy is the fi rst multi-family af-fordable housing community to earn LEED Platinum Cer-tifi cation for sustainable development along the lightrail. How to help: Volunteer, donate, serve: From prepar-ing meals for homeless youth to organizing food drives and community improvement projects, we work to cre-ate a meaningful volunteer experience for individuals, families or businesses to improves the lives of the people we serve. NAC accepts donations online at nativeconnec-tions.org or at the address below:
Native American Connections4520 N. Central Ave., #600,
Phoenix, AZ 85012(602) 254-3247
nativeconnections.org
Native American Connections4520 N. Central Avenue - Suite 600
Phoenix, AZ 85012 (602) 254-3247
www.nativeconnections.org
Serving more than 5000 families every year!
Working with business & non-profit partners to improve our community.
We specialize in helping families create a better tomorrow that is safe,
healthy and stable.
Join us in building a stronger community
Volunteer! Donate! Get Involved!
Behavioral Healthcare General Mental Health Counseling Substance Abuse Treatment
Providing a Continuum of Servicesfor Adults, Youth, Children & Families
Affordable Housing with Enriched Services Homeless Permanent Supportive Housing Low Income Working Families
Working with business & non-profit partners
We specialize in helping families create We specialize in helping families create
V
Behavioral Healthcare General Mental Health Counseling Substance Abuse Treatment
Providing a Continuum of Servicesfor Adults, Youth, Children & Families
Affordable Housing with Enriched Services Homeless Permanent Supportive Housing Low Income Working Families
94 AB | November-December 201294 AB | November-December 2012
Mission statement: The mission of Arizona School Choice Trust is to provide hope and opportunity to low-income children as well as low-income children who are also disabled and/or displaced awarding tuition scholar-ships to attend private elementary and sec-ondary schools (K-12). Did you know: You can help thousands of Arizona children at no cost to you.
How you can help: You can take a dollar-for-dollar tax credit every year for contributing to Arizona School Choice Trust — helping children in our state costs you nothing. The tax credit is for up to $1,003 per individual, $2,006 per couple. Companies can redirect their corporate income tax or premium tax liability as well. Decide where your tax dollars should go — and change a child’s life forever.
Arizona School Choice Trust
Mission statementTo provide hope and op-portunity to low-income children and low-income children with disabilities, by providing tuition schol-arships to attend private elementary and secondary schools.
To volunteerCPAs and business leaders are needed to reach out to the community with in-formation about the or-ganization and tax credit opportunities.
To contributeIndividuals and corpora-tions with a tax liability have the opportunity to receive dollar-for-dollar tax credits while funding schol-arships for economically disadvantaged children in Arizona.
Board of directorsClint BolickElizabeth McVaughTom Jenney
Dan EdwardsMatthew LadnerNeland Nobel
Bertrand RussellMichael HarrisDiane Ortiz Parsons
AchievementsArizona School Choice Trust has awarded more than 10,000 scholarships to Arizona students since 1993.
P.O. Box 1616Glendale, AZ 85311
(623) 414-3429asct.org
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Arizona School Choice Trust
Arizona School Choice TrustP. O. Box 1616,
Glendale, AZ 85311(623) 414-3429
asct.org
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96 AB | November-December 2012
DIVERSITY LEADERSHIP ALLIANCE
Christine French knows the heartbreak of limita-tions.
“I have four grandsons,” said French, president and CEO of Global Diversity Consulting and a board member for the Phoenix-based Diversity Leadership Alliance. “Th ree of them have autism, so I know what’s it’s like to see all your hopes and
dreams for children almost vanish.”In 2007, French directed the heartache she felt over her grand-
sons’ disabilities and made something positive out of it and to show young people that they shouldn’t see any limitations. She spearheaded an eff ort from the Diversity Leadership Alliance to form its own Youth Council, with the goal of cultivating and devel-oping future leaders from diverse backgrounds.
“I directed all my eff ort and energy into creating a program that would off er opportunities to other children that my grandsons might not get,” French said. “Th e students we come into contact were kids who may not have thought that college was in their future. But we have helped show them that their opportunities are endless. Th ere are no limitations.”
Th e DLA, which is celebrating its 11th year as an organization whose mission is to guide leaders in the transformation of culture to build an inclusive community, started out with 24 kids as part of its Youth Council. Today, more than 150 students participate in the Youth Council’s monthly workshops.
“Th e workshops are designed to teach students the skills they will need to be successful,” French said. “Some past workshops have focused on developing problem-solving skills, eff ective time management, and how to create and build healthy and eff ective re-
lationships. Th ese are all skills that corporate America is demand-ing from its workers, so the workshops are preparing the students for adulthood.”
Students who participate in DLA’s Youth Council are also eligi-ble for scholarships, which French said are possible thanks to spon-sors that include Boeing, SRP, University of Phoenix, Maricopa Community Colleges, APS, Cox Communications, Fennemore Craig, Wells Fargo and Sundt.
But just as important helping the students — who are selected from valley high schools that are diversity conscious — live up to their potential, French believes the Youth Council will ultimately serve a bigger purpose.
“We need to reach this next generation because they will be our future leaders,” French said. “We need to develop future leaders from diverse backgrounds who understand the value of diversity, understand the value of respecting everyone, so they can transform the environment and cultivate a world that values everyone equally.”
By MICHAEL GOSSIE
STUDEnTS COUnSELEDDiversity Leadership Alliance cultivates the next generation of leaders through its Youth Council
DLA WORKSHOPThe Diversity Leadership Alliance offers free monthly workshops that focus on diversity aware-ness and education and are both information and interactive.Where: Black Canyon Confer-ence Center (Sodexo), 9440 N. 25th Ave., Phoenix, AZ 85302When: Wednesday, Dec. 19, 8 a.m.-noon. Registration begins at 7:30 a.m.More information: diversityleadershipalliance.net
Christine French
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ARIZONA FORWARD
2012
98 AB | November-December 2012
Change is one of the only consistencies in life. It’s an often over-looked fact that genetically each person in this world is only half a percent different from another. Based on that, it’s only logical if we were to focus on our common needs, goals and power to affect change working together, we could produce amazing results.
We’re all having to do more with less and raising the bar in terms of creative collaboration during these trying economic times. The byproduct is some extraordinary, synergistic partnerships that enable us to accomplish so much more than talented people working alone. networks of gifted people can and are changing the world.
We live in one of the most interdependent eras in history. Issues like global economy and climate change cannot be dealt with from a single geo-political vantage point. Change is only possible through creative networks of collabora-tion. It’s this kind of network that defines valley Forward. And it’s so power-ful and effective that we’ve taken the mission of balancing economic growth and environmental quality statewide through Arizona Forward.
The diversity of involvement in our community makes it one of the best places in America to live. We are different politically, geographically and demographically. But we are the same — only half of a percent different from one another — and we share this place we call home. We are vested in it and we’re working together to ensure that it’s sustainable for generations to come.
The livability and vitality of communities across the state will be impacted by upcoming pivotal decisions related to land use planning and open space; a balanced multi-modal transportation system; improving and maintaining healthy air quality; leadership in solar and renewable energy technology; man-aging precious water resources; and protecting parks and other natural areas for Arizona’s tourism economy.
We hope you enjoy reading about some of the programs and people in valley Forward and Arizona Forward. These environmental stewards are committed to our valley and state. Their non-partisan public/private sector partnerships are working to help to create a healthier environment and more vibrant economy for Arizona.
Please join us in a mission to foster a holistic, statewide sustainability agenda to balance economic growth and environmental quality in the Grand Canyon State — let’s work together to move Arizona Forward!
Diane Brossart is president and CEO of Valley Forward and acting director of Arizona Forward.
GREEnER PASTURES AHEADA united front can create a healthier environment and more vibrant economy for Arizona
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ARIZONA FORWARD 2012
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ExPAnDInG ITS HORIZOnvalley Forward will transition to Arizona Forward and shift to a statewide focusBy MICHAEL GOSSIE
ExPAnDInG ITS HORIZOnvalley Forward will transition to Arizona Forward and shift to a statewide focusBy MICHAEL GOSSIE
AB | November-December 2012 101
Timing is everything, even when it comes to Mother nature.
“In 2010, we got an $85,000 grant to look at some federal issues on sustainability,” says Diane Brossart, president and CEO of valley Forward, which brings
business and civic leaders together to improve the environment and livability of valley communities. “We were asked to target Arizona’s Congressional delegation and get them up to speed in regards to understanding a sustainability agenda for Arizona and what that meant.”
What grew from that seed was an initiative that had actually been germinating for more than a decade, Brossart says: taking the successful Maricopa County-centric valley Forward and giving it a statewide focus. In August, valley Forward’s board voted unani-mously to move forward with a business plan that will transition valley Forward into Arizona Forward in January.
Brossart says the state is facing some serious issues related to the environment and the livability and vitality of Arizona’s cities and towns will be impacted by upcoming decisions related to:
* Land use planning and open space,* A balanced multi-modal transportation system,* Improving and maintaining healthy air quality,* Solar and renewable energy technology,* Managing our water resources, and* Protecting wilderness, parks, national monuments and other
natural areas for Arizona’s tourism economy.“As Arizona and the country recover from the Great Recession,
a statewide dialogue is more important than ever,” says William F. Allison, a shareholder at Gallagher & Kennedy. “The issues impact-ing us — water, energy, transportation, land use — involve the en-tire state rather than only the valley. Arizona Forward will provide a forum to think outside the box and beyond the valley.”
To get Arizona Forward to have its greatest statewide impact, Brossart and her staff connected with 13 companies that had influence on communities along the Sun Corridor — the stretch of freeway that connects Tucson, Phoenix, Prescott and Flagstaff — to become charter members of Arizona Forward.
“The leaders of those companies have become our tour guides as we go into Pima County and northern Arizona,” Brossart says. She points to Kurt Wadlington, Tucson Building Group Leader of Sundt Construction, for opening doors for Arizona Forward to spread its wings into Southern Arizona.
“Southern Arizona already has a very strong environmental focus, but struggles with areas that are dependent on statewide engagement from both a funding and advocacy perspective,” Wad-lington says. “(valley Forward’s) shift (to a statewide focus) will provide Southern Arizona with added resources to coordinate its future growth in the larger context of the Sun Corridor.”
TIME FOR UnITYExperts agree that now is the perfect time for valley Forward to
shift to a statewide focus statewide because Arizona is at a turning point, economically and environmentally.
“There are major issues that affect the state like transportation;
ARIZONA FORWARD 2012
What grew from that seed was an initiative that had actually been germinating for more than a decade
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ARIZONA FORWARD 2012
William F. AllisonJob title: Shareholder at Gallagher & Kennedy, P.A. His practice fo-cuses on land use entitlements — zoning, comprehensive/general plans, development agreements, revision of regulations.Position with Valley Forward: Vice chair and member of the execu-tive committee and board of directors.Most notable personal achievement: Completing a rim-to-rim hike at the Grand Canyon 11 months after breaking two vertebrae in his neck and shattering one in his upper back and seven months after discarding his clam shell back brace. Why he become involved with Valley Forward: “To be part of its important, thoughtful dialogue regarding development that is sustainable from both economic and environmental perspectives.”Importance of Valley Forward: “It convenes a broad group of public and private sector interests to study and discuss a variety of issues impacting the Valley and Arizona. This representation is unique in Arizona.”
managing resources; and protecting the wilderness, parks and national monuments,” says Barbara Lockwood, general manager of Energy Innovation for APS and who will be the first chair of Arizona Forward’s board of directors in 2013. “These are not just environmental issues, but are issues that have an effect on Arizona’s economy statewide. I think Arizona is ready to start having more positive statewide conversations about finding ways to grow our economy in a manner that can be sustained and is environmentally friendly.”
Brossart says that while Arizona has had countless groups that have focused on making their communities better, Ari-zona Forward will be looking to help educate elected officials, decision-makers and other to become the glue that brings those regional organizations together in a spirit of cooperation and unity.
“So much of our goal is to drive a political agenda to the middle and bring folks on both sides of the aisle together,” Brossart says. “The issues that we focus on are sustainability and environmental. Everybody needs clean air, clean water, open space and parks. Those are the things that make a community viable, healthy and livable. We all want that. Those aren’t political issues. But they do fall into a political arena that sometimes clouds the issues. If we can be a reason-ing voice of balance like we have been successfully in Maricopa County, if we can bring that statewide, it will be really good for Arizona — economically and environmentally.”
valley Forward members expect the transition to Arizona Forward to foster additional collaboration and conversation on
Janice CervelliJob title: Dean, College of Architecture and Landscape Architecture, University of ArizonaPosition with Arizona Forward: Advisory Board MemberSomething that would surprise most people: “I am a lead singer in a couple of bands in Tucson. Tucson has a great music scene.”Why she become involved with Valley Forward: “As dean of a college with a mission to educate architects, urban planners, and landscape architects, it is my duty to connect to and support such efforts within the state. Subsequently, I was invited to speak at the 2011 Liv-ability Summit, where I met many members and have been involved in Valley Forward ever since.”Importance of Valley Forward: “I support nonprofit, non-partisan, and non-government driven visioning efforts that combine advocacy with education, as I believe this to be one of the most promising ways in which Arizona can achieve a positive future for all.”
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104 AB | November-December 2012
statewide issues, bring additional viewpoints on key issues and allow for a more global conversation.
“My hope is that we can, over time, have a collective vi-sion that regardless of our own regional filters, we’re all in this together and need to find ways to move forward as one sustainable, economically successful state,” says Iain Hamp, community affairs representative, Wells Fargo Team Member Philanthropy Group.
ECOnOMIC IMPACTBrossart says one of the biggest messages Arizona Forward
will be trying to communicate is that making sound decisions about issues surrounding sustainability and the environment are good for business.
“If we make a case that shows the economic impact of parks and open space on the tourism industry, the business commu-nity will take notice and they are uniquely poised to deliver that message and be heard,” Brossart says. “Parks groupies are great and they are important. But when the business community gets involved, people listen.”
Where Arizona Forward could have its biggest economic impact is on growth industries that rely on the state’s amazing natural resources.
“It’s an exciting time to be a part of solar energy, as the clean, renewable energy industry is experiencing massive growth and helping the state and country achieve greater energy indepen-dence,” says Patricia Browne, director of marketing and commu-nications for SOLOn Corporation in Tucson. “And Arizona has been at the center of this growth. This has been made possible
ARIZONA FORWARD 2012
John GodecJob title: President of Godec, Randall & Associates Inc., which helps governments and businesses solve tough, dicey public and stakeholder chal-lenges. I’m also a partner in a training firm and in a company that designs and manages large public participation projects. Position with Valley Forward: Member of the Executive Committee and Board, and co-chair of the Public Education Committee with Penny Pfaelzer. Most notable personal achievement: “I won a pancake eating contest in high school (he ate 42) and I have a pretty terrific and happy daughter.” Why he become involved with Valley Forward: “I’m attracted to its mission — to find that sweet spot between robust business and protecting that which caused most of us to move here in the first place.”Importance of Valley Forward: “It has successfully served a unique purpose in the Phoenix metro for more than 30 years and the time is right for the organization to grow.”
Wonder womanFamed adventurer will share leadership lessons from Mount Everest and Wall Street at Valley Forward event
Alison Levine is a survivor.The University of Arizona graduate has overcome more than just the
life-threatening heart condition — Wolf-Parkinson-White Syndrome — that left her unable to drive a car or walk up stairs as a teenager. Surgery allowed Levine to achieve an Adventurer’s Grand Slam — climbing the seven highest peaks on each continent and reaching the North and South poles — and also successfully compete with the sharks on Wall Street.
“A lot of lessons that I learned climbing the mountains really helped me in the business world,” says Levine, an adjunct professor at U.S. Military Academy and a former investment professional at Goldman Sachs & Co. “On the flip side, a lot of the things I learned in Wall Street helped me stay alive in some pretty tough situations when I was climbing.”
Levine will share some of the lessons she learned in both business and in the bush when she is the keynote speaker at Valley Forward’s 43rd Annual Luncheon from 11:30 a.m. - 1:30 p.m., Friday, December 14, at The Phoenician. By drawing parallels between staying alive in the mountains and thriving in a fast-paced business world, Levine’s inspirational presentation focuses on leadership, teamwork, overcoming odds, taking responsible risks and dealing with changing environments.
Levine, the team captain of the first American women’s Everest expedition, says she will share some of the leadership lessons she has learned that apply to both business and to conquering a challenge in nature.
“One of rules that we always follow when we are climbing a mountain is the ‘leave no trace policy,’” Levine says. “When we climb, we want to leave the moun-tain better than we found it. If we apply that to our business practices and keep that in mind when we are utilizing our natural resources, that process will leave the planet in a better place than we found it.”
For more information about the luncheon or to register, visit valleyforward.org.
AB | November-December 2012 105
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not only by the companies developing the solutions, but by the state and local officials, Arizona-based businesses and indi-vidual residents who recognize the importance that solar plays in a number of ways such as a cleaner environment, economic development, and energy price stability. However, there are still challenges in making the adoption viable on a large scale, and Arizona Forward helps bring together the right players to help make this happen on a state level.”
Richard Mayol, communications and government relations director for Grand Canyon Trust in Flagstaff, says Arizona For-ward will give members in northern Arizona the opportunity to have a voice in discussions that affect the state today and in decisions that impact Arizona 20 years from now.
“We hope it will help create an economy that provides the op-portunity for prosperity without sacrificing the environment,” he says, “and makes northern Arizona an even better place to live, work, and raise a family.”
And that is what Arizona Forward’s mission is all about: bringing business and civic leaders together in order to convene thoughtful public dialogue on statewide issues and to improve the environment and sustainability of Arizona.
“All areas of the state will benefit, from urban to rural and suburban areas in between, due to a coordinated and planned strategy for such essential elements as affordable energy, water, transportation, affordable housing, and a wide band of employ-ment opportunities,” says Janice Cervelli, dean of the College of Architecture and Landscape Architecture at the University of Arizona. “All geographic, economic and environmental sectors of the state will increasingly become part of a larger, interde-pendent, connected system.”
ARIZONA FORWARD 2012
Iain HampJob title: Community affairs representative, Wells Fargo Team Member Philanthropy GroupPosition with Valley Forward: Executive Committee member and board member.Something that would surprise most people: “I never volunteered for anything in my life until 2006. Today, I volunteer a minimum of 876 hours (10 percent of my life) every year, and don’t plan to stop until age or gravity force the issue.”Why he become involved with Valley Forward: “I have a passion for finding ways all of us can live and work in an environmentally friendly way here in our urban desert oasis.”Importance of Valley Forward: “Our focus on ensuring that sustainability and livability are considered, through civil dialogue, is needed now more than ever before as we build our economy and our communities.”Legacy he hopes to leave: “I hope to play a part in transforming ‘sustain-ability’ and ‘service to our communities’ as concepts which are the norm rather than the exception within our business community.”
106 AB | November-December 2012
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Together we move the Valley forward.Congratulations to this year’s Environmental
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As valley Forward transitions to Arizona Forward to encompass a statewide focus, it’s only fitting that the association with a 43-year history of success tackling environmental issues — including land use, water management, air quality and energy —
turns its attention to an issue that impacts every resident and every business in Arizona.
Transportation.“valley Forward has always valued transportation as one of
the organization’s key areas of interest,” says John Godec, presi-dent of Godec, Randall & Associates Inc., which helps govern-ments and businesses solve public and stakeholder challenges. “The Phoenix and Tucson metros have seen radical transporta-tion changes and improvements in the past decade, so we’re asking, ‘What’s next? Are we good to go now?’”
Just as it did last year with parks and open spaces, valley Forward hopes to answer those questions as it unveils its stance on transportation, covering topics such as transportation plan-ning, how it impacts the quality of life in the Sun Corridor and how transportation affects Arizona’s economy.
One issue that Arizona Forward wanted to address in its Transportation Primer has been on the minds of every Arizonan: traffic congestion and how to better connect cities
TRAvEL TIMEvalley Forward study hopes to guide Arizona’s transportation systems into a less congested futureBy DAnIEL ESCOBEDO
ARIZONA FORWARD 2012
Eddie JonesJob title: Principal in charge of design, Jones Studio, an award-winning architecture and interior design firm with a focus on sustainability.Position with Valley Forward: Founding member of Arizona Forward, winner of 17 Valley Forward Association Environmental Excellence Awards.Most notable personal achievement: “To have been an essential team member for the design and construction of the Arizona 9/11 Memorial, because its message will survive my generation’s raw, emotive memories.”Something that would surprise most people: “I cannot say no to (Valley Forward president and CEO) Diane Brossart.”Why he become involved with Valley Forward: “I admired their mission and commitment.”Importance of Valley Forward: “Arizona desperately needs intelligent, responsible leadership.”Legacy he hopes to leave: “Never stop caring.”
AB | November-December 2012 109
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GOALS OF ARIZOnA FORWARD• Establish cooperative relationships with like-minded Arizona conserva-tion organizations and facilitate col-laboration on sustainability initiatives.• Bring business and civic leaders together to convene thoughtful public dialogue on regional issues.• Increase awareness of and inter-est in environmental issues initially in the Sun Corridor and then beyond, state-wide, building on an agenda of land use and open space planning, transporta-tion, air quality, water and energy.• Support efforts to promote the Sun Corridor as an economic devel-opment area using sustainability and smart growth principles.• Serve as a resource on envi-ronmental issues through Arizona Forward’s and Valley Forward’s diverse membership of large corporations, small businesses, municipal govern-ments, state agencies, educational institutions and nonprofit organizations.
with each other. According to a policy report written by Byron Schlomach for The Goldwater Institute, the average Phoenix commuter spends an average of 38 hours a year in traffic, while a commuter in Tucson spends roughly 42 hours in traffic.
In an attempt to remedy traffic congestion in Phoenix, voters adopted Proposition 400 in november of 2004, which allowed for the renovating and extending of current freeways and the addition of more public transportation, such as the valley Metro Light Rail, all of which connect small communi-ties with larger cities. In Tucson, Pima County voters approved the $2.1 billion Regional Transportation Plan, which saw the construction of a modern streetcar project throughout the city,
giving more people a chance to get around, while getting cars off the highways.
However, the question that has been asked by Arizona Forward is, is it enough, especially since Arizona only seems to be growing in size?
“At least half the transportation systems that the state will need in 2050 have yet to be built,” says Sally Stewart, deputy communications director at the Arizona Department of Transportation (ADOT) and Arizona Forward member. “Despite the recent economic downturn, Arizona’s growth is not over. It is not a question of whether the Sun Corridor — one of the emerging megapolitan regions in the country — will be a reality; it is simply a matter of when.”
According to a study published in March 2010 by ADOT, it is ex-pected that Arizona’s population will more than double, from 6.4 million to about 16 million people in the next 30 years. Maricopa County’s population is expected to increase by 90 percent, from 4 million people to about 7.6 million. The study suggests that because of this population explo-sion, travel times for various
destinations in the Sun Corridor could increase by about 100 percent by 2050. This could mean that a trip between Phoenix and Tucson, which currently is about a 95-minute drive, could take up to 5.5 hours in 2050 (assuming that the Interstate-10 freeway is widened to about 10 lanes).
Arizona Forward experts say the state must plan ahead to improve this transportation dilemma, especially if it wants to attract more business activity and economic improvement.
“Transportation is key for economic development,” says Eric Anderson, transportation director at the Maricopa Association of Governments. “The ability of a company’s workforce to commute on a predictable basis is critical. The movement of freight in and out of the region is also important. Companies looking to locate in the region always look at the adequacy of the transportation system in providing mobility and travel options.”
ARIZONA FORWARD 2012
Steve KrumJob title: Director of Global Communications, First Solar, Inc.Position with Valley Forward: Member of the Board of Directors, sits on the Executive Committee, and is also a member of the Public Relations Task Force.Why he become involved with Valley Forward: “A long-time enthusiast of thoughtful urban design and dynamic discussion of sustainability in policy and practice, I had the opportunity in the late 1990’s to provide Valley Forward with pro bono public relations consulting. I was immediately impressed with the passionate commitment the organization has for facilitating open dialog in the community. I found a great platform from which to focus my own dedication to community service.”Importance of Valley Forward: “Valley Forward has a four-decade legacy of bringing together business, local government and community stakeholders for frank, illuminating discussions on sustainable development. The lessons learned, the challenges overcome, the relationships built with thought leaders ... all this experience can serve as a blueprint for getting a state-wide perspective on the same issues.”
AB | November-December 2012 111
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