in business magazine - march 2012
DESCRIPTION
In Business Magazine covers a wide-range of topics focusing on the Phoenix business scene, and is aimed at high-level corporate executives and business owners.TRANSCRIPT
MAR
. 201
2
Power LunchBy the NumbersBusiness Events
National Association of Women Business Owners
This Issue
Roundtable: Are You Working Harder for Less Profit?
Franchise: Leveraging aProven
Commodity
Business
PowerQuestions
Build
IN BuSINESS M
AGAZINE
SKILLS GAPM
ARCH 2012 • inbusinessm
ag.com
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4 i n b u s i n e s s m a g . c o mm a r c h 2012
www.inbusinessmag.com
In Business Magazine is a collaboration of many business organizations and entities throughout the metropolitan Phoenix area and Arizona. Our mission is to inform and energize business in this community by communicating content that will build business and enrich the economic picture for all of us vested in commerce.
Partner Organizations
Donna Davis, CEOArizona Small Business Association
Central Office (602) 306-4000Southern Arizona (520) 327-0222
www.asba.com
Steven G. Zylstra, President & CEOArizona Technology Council
One Renaissance Square(602) 343-8324 • www.aztechcouncil.org
Kristine Kassel, PresidentNAWBO Phoenix Metro Chapter
(602) 772-4985 • www.nawbophx.org
Rick Kidder, President & CEOScottsdale Area Chamber of Commerce
(480) 355-2700 • www.scottsdalechamber.com
Mary Ann Miller, President & CEOTempe Chamber of Commerce
(480) 967-7891 • www.tempechamber.org
Our Partner Organizations are vested business organizations focused on building and improving business in the Valley or throughout Arizona. As Partners, each will receive three insert publications each year to showcase all that they are doing for business and businesspeople within our community. We encourage you to join these and other organizations to better your business opportunities. The members of these and other Associate Partner Organizations receive a subscription to In Business Magazine each month. For more information on becoming an Associate Partner, please contact our publisher at [email protected].
Associate PartnersAhwatukee Foothills Chamber of Commerce
www.ahwatukeechamber.com
Arizona Chamber of Commerce & Industry www.azchamber.com
Arizona Hispanic Chamber of Commerce www.azhcc.com
Chandler Chamber of Commerce www.chandlerchamber.com
Economic Club of Phoenix www.econclubphx.org
Glendale Chamber of Commerce www.glendaleazchamber.org
Greater Phoenix Black Chamber of Commerce www.phoenixblackchamber.com
Greater Phoenix Gay & Lesbian Chamber of Commerce www.gpglcc.org
Mesa Chamber of Commerce www.mesachamber.org
North Phoenix Chamber of Commerce www.northphoenixchamber.com
North Scottsdale Chamber of Commerce www.northscottsdalechamber.org
Peoria Chamber of Commerce www.peoriachamber.com
WEStMArC www.westmarc.org
March 2012
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Business Owners, Executives & Entrepreneurs:Please join us for this groundbreaking event. Meet our Guest Editors for an intense discussion on the local economy.
Topics include:• Emerging Economic Opportunities • Strengthening our Workforce• Business Funding • Government Policy and much more . . .
In Business Magazine brings together its Guest Editors for this annual event that is certain to impact your business.
Donald SmithPresident & CEOSCF Arizona
Victor F. Trastek, M.D.CEOMayo Clinic in Arizona
Janice K. BrewerGovernorThe State of Arizona
Howard LeinFounder & OwnerRE/MAX Excalibur
John HuppenthalSuperintendent of Public Instruction, State of Arizona
Rich A. RectorOwner & Executive ChairmanRealty Executives Phoenix
Derrick HallPresident & CEOArizona Diamondbacks
Donald BrandtChairman & CEOArizona Public Service Company
Craig R. BarrettRetired CEO/Chairman of the Board, Intel Corporation
Jerry ColangeloPrincipal PartnerJDM Partners
Jim PedersonCEOPederson Group, Inc
Ángel Cabrera, Ph.D.President, Thunderbird School of Global Management
Jos AnshellCEOMoses Anshell
Candace D. Wiest President & CEOWest Valley National Bank
Vicki Panhuise, Ph.D. President and OwnerVePoint Consulting Group, LLC
Friday, May 18, 2012Arizona Biltmore Resort
The Grand Ballroom
11:30a Registration & VIP Reception11:50a – 1:30p Lunch & Symposium
Register today at inbusinessmag.comPresented by:
Individual Lunch: $65Tables of 10: $650
Corporate Sponsorships Available
For more information:Phone: 480-588-9505 x213
Email: [email protected]
In Business Magazine Guest Editors invited to attend*
*Not all guest editors have confi rmed their attendance at time of press.
Guest Editors since November 2010
Growing Local Business
6 i n b u s i n e s s m a g . c o mm a r c h 2012
9 Guest EditorCraig R. Barrett, retired CEO and chairman of the board of Intel Corp., introduces the “Skills Gap” issue.
10 FeedbackNoted business and community leaders Mayor Greg Stanton, Barry Broome and Jeffrey A. Martin respond to IBM’s burning business question of the month.
12 Briefs“Centennial Brings Dollars to the Copper State,” “New Local Job Site Blends Value and Quality,” “Mortgage Document Services Company Expands to Scottsdale,” “Fostering a Global Private Equity Mindset,” “Phoenix Company Sees Pay-off of Working with Pets” and “Meetings that Get Things Done”
16 By the NumbersStudy scores states on economic subsidies’ effectiveness. Plus: Key economic indicators provide a sense of the health of the local economy.
20 Trickle UpView from the top looks at how John Leonesio, CEO of The Joint… the chiropractic place, forged chains of success by focusing on key industry changes.
29 BooksNew releases that explore behavior triggers offer key insights and strategies for bettering business.
22The Growing Skills Gap: Can We Compete?It’s a wake-up call as Arizona faces an urgent need for highly skilled workers to accelerate our economic recovery. Sue Kern-Fleischer speaks with business development professionals, members of the Governor’s Council on Workforce Policy, some of the state’s largest employers and others to lay out the parameters of Arizona’s potential crisis.
DEPARTMENTS
FEATuRES
18 Don’t Go It Alone Sharing the insights and experience of successful franchisors and franchisees, Gremlyn Bradley-Waddell explores the enterprise of building business around a proven commodity.
BuSINESS EDuCATION NETWORKING
SPECIAL SECTIONS
41 National Association of Women Business Owners
30 NonprofitHospice of the ValleyThe Board of Visitors
38 AssetsBMW X6 M and anti-virus software
34 Systems … or How to Make the Perfect LatteMarketing and communications coach Kathy Heasley concludes her six-part series on branding by illustrating the important whys and hows of consistency in brand identity.
36 Building Your Sales Team CorrectlyIn the fifth of his six-part series, sales coach Mike Toney identifies different selling styles and describes how they fit — or don’t fit — a company’s product or service.
31 On the AgendaIn Business Magazine guide to chambers of commerce, trade organizations and other business associations that host events to help you build business
NAWBO NEWS
nawbophx.org
1
This issue
President’s MessageSpringtime in Arizona is fi nally here.
This is the time to take advantage of not only spring
cleaning the house, but also your business. That’s right,
double check your budget and make sure you’ve cut or
added to support your year’s planning activities. Also make
sure you’ve got a spring in your sales delivery too! Changing
the months of March and April. If you
join during this drive you will receive
$25 o of your annual membership.
We also are sponsoring prizes for the
recruiters and also the new members
that join during this time. If you want
to learn more about NAWBO please
feel free to attend one of our welcome meetings that are always
at 10 am on the 2nd Wednesday of every month right before
our monthly educational meetings. Looking forward to seeing
you soon and thanks again for the opportunity! Now go out
and enjoy our fabulous weather!Kindest Regards,
Kristine KasselNAWBO Phoenix Chapter President 2011-2012
it up a little will be refreshing to not only your team, but also
your prospective clients.Here at NAWBO Phoenix we have also made some great
changes this year, so please come check us out at one of our
upcoming events. We have a new Association Management
Team, SOS Association Management Solutions, as of January
2012. Our new administrative contact is Suzanne Lanctot and
she can be reached at [email protected] or at 480-289-
5768. Their fi rm is bringing several new ideas to NAWBO
Phoenix and we look forward to a long relationship with their
team. Also we are currently in the process of building a new
leadership team for the 2012-2013 year. This always is great for
an Association as getting involved really helps keep members
long term. Please reach out to myself or the President Elect
Lynda Bishop if you are interested in joining any committees.
This is also the time of year that we
are putting on a membership drive for
About NAWBONAWBO® prides itself on being a
global beacon for infl uence, ingenuity
and action and is uniquely positioned to
provide incisive commentary on issues of
importance to women business owners.
NAWBO Phoenix propels women
entrepreneurs into economic, social and
political spheres of power.Visit one of our FREE Welcome Meetings
- For All New and Prospective Members.
They o er a casual, informational opportunity
that both highlights the local and National
benefi ts of NAWBO Membership. Plus, this is
a great place to hear about the diversity in our
benefi ts and determine if NAWBO is a fi t for
you and your business.Please bring business cards too!For more information, please visit
NAWBOphx.org.Phoenix Metropolitan Chapter of
the National Association of Women
Business Owners7949 E. Acoma Dr. #207Scottsdale, Arizona 85260
Page 2• Invest in Your Business by Utilizing a
Professional Business Coach• When You Need to Hire a Coach
Page 4The Real Value of Advice
Page 7How to Boost Your Business without
Busting Your Budget
and more...
Kristine KasselPresident, NAWBO Phoenix
Suzanne Lanctot
SPRING 2012 • nawbophx.org
Celebrating more than 25 years of serving the women business owners of Phoenix
39 Power Lunch“A Fine American Eatery in Cask 63”Plus: “Midday Hot Spots”
50 RoundtableImplement the 80/20 Rule to increase company profits.
28 Ask, Don’t Tell Andrew Sobel and Jerold Panas share the power questions that help build better business relationships.
2818
March 2012C o n t e n t s
MAR
. 201
2
Power LunchBy the NumbersBusiness Events
National Association of Women Business Owners
This Issue
Roundtable: Are You Working Harder for Less Profit?
Franchise: Leveraging aProven
Commodity
Business
PowerQuestions
Build
$4.95 INBUSINESSMAG.COM
IN BuSINESS MAGAZINE
SKILLS GAPM
ARCH 2012 • inbusinessm
ag.com
8 i n b u s i n e s s m a g . c o mm a r c h 2012
PuBLISHER Rick McCartney
EDITOR RaeAnne Marsh
ART DIRECTOR Benjamin Little
CONTRIBuTING WRITERS Gremlyn Bradley-Waddell Kathy Heasley Mike Hunter Sue Kern-Fleischer Elizabeth Rush Kruger Brett Maxwell Jerold Panas Mike Richardson Andrew Sobel Alison Stanton Mike Toney
PHOTOGRAPHER-AT-LARGE Dan Vermillion
Advertising
OPERATIONS Louise Ferrari [email protected]
SENIOR Louise Ferrari ACCOuNT EXECuTIVES [email protected] April Ray [email protected] Cami Shore [email protected] Greg Stiles [email protected]
More: Visit your one-stop resource for everything business at www.inbusinessmag.com. For a full monthly calendar of business-related events, please visit our website.
Inform Us: Send press releases and your editorial ideas to [email protected].
PRESIDENT & CEO Rick McCartney EDITORIAL DIRECTOR RaeAnne Marsh SENIOR ART DIRECTOR Benjamin Little
CORPORATE OFFICES 6360 E. Thomas Road, Suite 210 Scottsdale, AZ 85251 T: (480) 588-9505 F: (480) 584-3751 [email protected] www.inmediacompany.com
Vol. 3, No. 3. In Business Magazine is published 12 times per year by InMedia Company. POSTMASTER: Send address changes to InMedia Company, 6360 E. Thomas Road, Suite 210, Scottsdale, AZ 85251. To subscribe to In Business Magazine, please send check or money order for one-year subscription of $24.95 to InMedia Company, 6360 E. Thomas Road, Suite 210, Scottsdale, AZ 85251 or visit inbusinessmag.com. We appreciate your editorial submissions, news and photos for review by our editorial staff. You may send to [email protected] or mail to the address above. All letters sent to In Business Magazine will be treated as unconditionally assigned for publication, copyright purposes and use in any publication, website or brochure. InMedia accepts no responsibility for unsolicited manuscripts, photographs or other artwork. Submissions will not be returned unless accompanied by a self-addressed, stamped envelope. InMedia Company, LLC reserves the right to refuse certain advertising and is not liable for advertisers’ claims and/or errors. The opinions expressed herein are exclusively those of the writers and do not necessarily reflect the position of InMedia. InMedia Company considers its sources reliable and verifies as much data as possible, although reporting inaccuracies can occur; consequently, readers using this information do so at their own risk. Each business opportunity and/or investment inherently contains certain risks, and it is suggested that the prospective investors consult their attorney and/or financial professional. © 2012 InMedia Company, LLC. All rights reserved. No part of this magazine may be reproduced or transmitted in any form or by any means without written permission by the publisher.
March 2012 • Vol. 3, No. 3
Learn more about how Holmes Murphy will be a trusted advocate for you — visit holmesmurphy.com.
©2011 Holmes Murphy & Associates
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At Holmes Murphy, we think providing you with innovative answers to the ever-increasing challenge of rising health care costs is one of the most important things we can do to affect your company. That’s why we take the time to get to know your company’s challenges and consult with you to provide the highest-quality, lowest-cost solutions — tailored especially for your business.
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9i n b u s i n e s s m a g . c o m m a r c h 2012
Education, Education, EducationIT IS SO clear in talking with business leaders and even some politicians that education is the way to strengthen Arizona economically. A strong education system from primary to graduate school here in Arizona will prep us for a better future. It will take bold political leadership and engaged businesspeople to make this happen here, and it is time we focus.
We thank Craig Barrett and the participants of this issue’s cover story who are forward thinkers and are working daily to improve education in Arizona. With a home-grown, well-educated, skilled work force, we can expect to achieve the impossible in Arizona and compete to gain industry, opportunity and prosperity in business and beyond. —Rick McCartney, Publisher
Let’s Fill the Gap
CRAIG R. BARRETT, Ph.D., received his doctorate degrees in Materials Science from Stanford university, and served on the Stanford faculty after graduation. His studies include a NATO postdoctoral fellowship at the National Physical Laboratory in England. A leading advocate for improving education in the u.S. and the world, and a vocal spokesman for the value technology can provide in raising social and economic standards globally, Dr. Barrett chairs Achieve, Inc.; Change The Equation; and Dossia. He serves as international co-chairman of the Skolkovo Foundation Council; is chairman of the Governor’s Arizona Ready Education Council; is on the faculty of Thunderbird School of Global Management; and is a leader on numerous other boards, policy and government panels.
There are many reasons for business to move to arizona or for a business to exist here and flourish. however, over the past two decades, as economies and opportunity grow elsewhere, arizona has lagged in the critical area of education and now finds itself with a dramatic skills gap — a result of actions and inactions on the part of business organizations, city and state governments, and especially our education system.
We all know that a quality education is critical for success in the 21st century. The ability to add value in the work place is the key determinant to a good salary, and education is key to adding value. at this time, arizona ranks rather poorly in all aspects of education, whether it is K-12 quality, the percentage of our work force with a university degree (especially in the hot areas of math, science, engineering and technology), or the quality and quantity of our vocational training programs. Certainly we have pockets of excellence in all areas of education, but, on average, we are failing our young people and consequently not generating the quality work force we need to compete around the world. This fact is not lost on companies looking to expand their operations in arizona. The number one issue with expansion plans is always the availability of a quality work force, and education is the number one issue with workforce quality.
When questioned, all arizonans understand the importance of education to our future, but all too often the gap between reality and what we need is as wide as the Grand Canyon. The public, the business community, our education leaders and our political leaders have to face the hard facts. If we want a vibrant
economy with good-paying jobs and opportunity for our young people, then we have to focus on the twin pillars that michael Crow at aSU has eloquently prioritized as his top challenges: quality and quantity. We need to educate more students at higher quality if we want to succeed. Just comparing ourselves to the school or state next door is insufficient. We need to compare and improve our educational system to the best in the world.
In this issue of In Business Magazine, Sue Kern-Fleischer digs into this subject of a skills gap that is hampering growth and opportunity for business and for our work force. She speaks with top business leaders, members of the Governor’s Council on Workforce Policy and others who are vested in strengthening our education, training and workforce efforts to develop our plan to fill this skills gap and ensure that arizona is a leader in industry and economic prosperity. On other pages, Gremlyn Bradley-Waddell explores business and legal aspects of developing a franchise or being involved in one. She speaks with both franchisor professionals and franchisees in a variety of industries. and this month’s “Trickle Up” focuses on John Leonesio, himself a successful franchisor whose leadership has energized The Joint...the chiropractic place.
In Business Magazine continues its focus on education for businesspeople at all levels of business. In this issue, Kathy heasley of heasley & Partners finalizes her six-part series on branding by revealing top steps to implement systems to build business. mike Toney of Conquest Training Systems continues his series on sales with insights on key distinctions in developing the right kind of sales team for different types of business.
I am pleased that In Business Magazine is focusing on issues that affect our business community. Bringing issues to the surface and presenting them to our business community are important steps in creating change. I hope that you will enjoy this issue.
Sincerely,
Craig r. BarrettRetired CEO/Chairman of the Board • Intel Corporation
craig r. Barrett, retired ceo/chairMaN of the Board, iNtel corporatioN G u e s t e d i t o r
10 i n b u s i n e s s m a g . c o mm a r c h 2012
A local “educated work force” is cited as a necessity for Arizona’s economy to flourish. What do you see as the priorities to ensure we attract or retain a qualified, skilled work force right here in the Valley?
Executives Answer
Jeffrey A. MartinPresident & CEOYulex CorporationSector: Green technology
The PhOenIx meTrO area has no lack of outstanding undergraduate and graduate programs that have the ability provide a continuous feeder system for local industry. however, far too many of our students and
skilled professionals leave the Valley because investment in growth businesses (e.g., life sciences, clean tech, medical device, green materials, alternative energy, nanotechnology, etc.) fall far below that of neighboring regions such as Southern California or Texas. For example, during the last quarter of 2011, as venture funding grew a significant 20 percent over the previous year, investment in arizona continued to be weak, benefitting from less than 1 percent of all capital invested, whereas neighboring Texas captured 5 percent; Southern California, 12 percent; and, of course, northern California (Silicon Valley), 46 percent.
a long-term approach to attracting capital to Phoenix emerging technologies should become a primary focus, with academia, industry and state government playing key roles. Phoenix is already educating our country’s new leaders; let’s keep them here!
Yulex Corp. yulex.com
Jeffrey A. Martin is co-founder of Yulex Corp., the first commercial enterprise to produce bio-based, medical-grade latex that is safe for people with latex allergy. Prior experience includes corporate officer and VP of sales for Safeskin Corp., which he was instrumental in positioning as “The Best Small Company in America” (Forbes Magazine, 1996). Martin received his degree in engineering from the Georgia Institute of Technology, where he was recently inducted into the Academy of Distinguished Engineering Alumni.
Doug Bruhnke Founder and CEO Growth Nation Sector: International trade
arIzOna haS PrOBLemS with education: 74 percent of 4th graders are below proficient in reading, 69 percent of 8th graders are below proficient in math and 50 percent of high school graduates can’t qualify for arizona’s universities (per expectmorearizona.org).
education matters more than ever in our increasingly competitive global marketplace. We need many more critical-thinking, creative and collaborative workers, managers and leaders — not fewer.
research has shown that a more educated population creates less crime, requires less financial assistance and better supports today’s modern companies, and yet efforts to improve education in arizona are often stalled by old arguments. There is reason to believe that things will get better because smart leaders like michael Crow of aSU, Glenn hamer of the arizona Chamber of Commerce & Industry and Steve zylstra of the arizona Technology Council are pushing to create more world-class education in support of technology, manufacturing and other growth businesses. Besides their efforts, support by businesspeople of improved education for all students can help break through the gridlock and improve business retention and attraction efforts.
Growth Nation growthnation.com
Doug Bruhnke is CEO of Growth Nation. The company, which he founded in 2001, helps companies grow locally and globally with high ROI using well-crafted marketing, sales and sustainability tools and services. Bruhnke is also president of Arizona Council for International Visitors and Arizona International Growth Group. He was born in New York and has been a resident of Scottsdale since 2003.
Greg StantonMayor City of PhoenixSector: Government
reTaInInG TaLenT IS about quality of place, not just quality of education systems. We cannot fail to focus on quality-of-life impacts on keeping our existing talent and attracting new talent. Phoenix must be an interesting and safe place to live,
and an easy place to start and grow a business.But education is vital. We must have a relentless commitment to
education if arizona is going to be competitive in a global economy.
I’ve been questioned whether it is appropriate for a city government to be involved in education. I always answer with, “how can we not be?”
We must use the bully pulpit to be champions of our schools, from early childhood programs to higher education. We must also put more focus on STeam education (science, technology, engineering, arts and math). Cities, not just Phoenix, are ready to lead on this because mayors understand that economic success begins and ends with our schools.
City of Phoenix phoenix.gov
A native Phoenician, Mayor Greg Stanton completed his undergraduate degree at Marquette University and his law degree at University of Michigan. He was appointed to the Phoenix City Council in 2000, then won the seat in the 2001 and 2005 elections. Stanton has been recognized for his community service with awards that include Arizona Big Brother of the Year.
Valley leaders souNd offF e e d b a C k
Call (602) 506-WORK (9675) to schedule a meeting with a local workforce professional or visit www.maricopaworkforceconnection.com today!
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All services are provided at no charge to employers and job seekers.Funding is made available through the Workforce Investment Act (WIA).
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12 i n b u s i n e s s m a g . c o mm a r c h 2012
New Local Job SiteBlends Value and QualityWITh ITS LaUnCh last month, the online job site LocalWork.com brings Phoenix-area business owners a new venue through which to attract qualified job applicants. The intent, according to founder ryan naylor, is to provide a reasonably priced and high-quality option in a sophisticated platform that includes a program that enables employers to rate and sort applicants and also help them keep the e-mailed replies and resumes organized in one convenient location.
The website is the brainchild of naylor, a small-business employer who says he has found it challenging over the years to recruit quality talent online at an affordable price. “a lot of the major national job posting websites charge $400 or $500, which definitely cuts into my budget and then what I can afford to pay people,” says naylor, who plans to charge $50
Mortgage Document Services Company Expands to Scottsdale DOCUTeCh COrPOraTIOn, a leader in compliance services for mortgage documents, recently acquired the assets of Lender Support Systems, Inc.’s Docs3D mortgage document software from parent company emphasys Software and, in support of its continuing growth, has opened a new office in Scottsdale.
“DocuTech selected Scottsdale as the location for its expansion for a couple of reasons,” says Ty Jenkins, DocuTech founder and CeO. “One, it is a major hub of regional lenders, and those lenders are beginning to grow again and need document compliance support. The Phoenix area is also a great source of talent for DocuTech as we grow and expand our staff.”
Founded in 1991, DocuTech provides compliance services and documentation technology for the mortgage industry. Its software interfaces with leading loan origination systems and enables mortgage professionals to generate documents locally. metro Phoenix’s geographic position as
centrally located to many of DocuTech’s existing customers also enables stronger customer and sales support, Jenkins notes.
—RaeAnne Marsh
DocuTech Corporation docutechcorp.com
per posting but is offering the service at half that rate through april 30. “On the other side,” he adds, “there is craigslist, which costs just $25 to post a job listing, but that usually involves being bombarded by sometimes hundreds of e-mails by people who are not necessarily qualified.”
LocalWork.com does not allow spam postings like multilevel marketing positions or work-at-home jobs, a restriction naylor says makes the site more user-friendly for serious job seekers. The website also allows applicants to upload a video of themselves, which allows employers another way to screen their job candidates. and employers may post each listing in up to three different categories, an advantage that naylor notes also makes it a great deal over its competitors, which typically allow just one selection. —Alison Stanton
LocalWork.com localwork.com
Centennial Brings Dollarsto the Copper Statea LOT OF people are visiting arizona this year to help us celebrate our state’s Centennial, and those tourist dollars are part of the revenue generated by the statehood celebration.
although the big gala Fandango rocked the capital on the anniversary of statehood, Feb. 14, other events have been and will be taking place all year long, all stimulating tourism to our Copper State. In fact, some started in 2010. an arizona Best Fest held in Prescott last September was rated a success in that community, reports Karen Churchard, director of the arizona Centennial Commission. “The town sold out and surrounding areas — Prescott, Prescott Valley, Gerome, Cottonwood. hotels, restaurants, bars, retail stores — everybody in Prescott was very, very pleased with the economic impact it had in that area.”
among other Best Fests around the state — a free-to-attend event supported by sponsors, foundations and individuals — was the one held in Downtown Phoenix the weekend preceding Fandango that was also the culmination of the arizona Centennial motorcycle ride which attracted participants from around the country. The Centennial ride “made a little revenue,” according to Churchard. more revenue came from the sale of tickets to enter the drawing to win the Copper Chopper, produced by world-renowned bike builder Paul yaffe, that toured the state as the Centennial mascot from October 2010 to February 2012.
Tourism is the biggest revenue benefit from the Centennial activities that include more than 400 arizona historical advisory Commission-designated legacy projects held in 2011 through the end of 2012, but, additionally, the arizona Centennial 2012 Foundation contracted with a company to develop Centennial merchandise being sold online as well as in Safeway, Fry’s market and Circle K and is also working with companies to provide official products from food to a Centennial Ping putter. Speaking with In Business Magazine in early February, Churchard said, “Interest regarding Centennial merchandise is just coming to a head.”
—RaeAnne Marsh
Arizona Centennial 2012 Foundation az100years.org
Fostering a GlobalPrivate Equity MindsetPrOFeSSIOnaLS In The private equity and venture capital space will come together as Thunderbird School of Global management, the number one-ranked school of global business worldwide, presents its eighth annual Global Private equity Investing Conference april 4 and 5 at its Glendale campus. an international slate of thought leaders comprised of venture capitalists, corporate leaders, analysts and government officials will share their perspectives on the current flow of private equity, how transactions are being structured, and current trends in the marketplace.
The conference focus is identifying and facilitating an understanding of the changes and current activity in global private equity and venture capital markets in areas from mineral rights to energy production. It will look at opportunities in frontier countries, former Soviet Bloc states and other emerging economies.
Quick aNd to the poiNtb r i e F s
13i n b u s i n e s s m a g . c o m m a r c h 2012
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Business Tips
14 i n b u s i n e s s m a g . c o mm a r c h 2012
TECHNOLOGY IS CONSTANTLY speeding up the pace of business. Decisions once delayed for weeks are now made in seconds thanks to Internet communication. Computer analytics puts real-time market information at our fingertips. Transactions can occur anywhere, any time. Just to keep pace, businesses must develop the organizational agility to move quickly and decisively, and it’s absolutely critical if they want to do more than just survive.
unproductive and time-wasting meetings are one of the biggest obstacles to organizational agility. To develop agile meetings with traction:
Map the meeting. Create a standing agenda and a master spreadsheet with tabs relevant to each agenda item with the expected inputs, throughputs and outputs. That way, the meetings are easy for the chairman to run because everything is crystal clear.
Set the mood. Set the tone for the energy level by playing a video or music. To start it off, tell a story, read a quotation or be unpredictable and create a surprise factor.
Spark creativity. Frame the purpose of the meeting as a question: “How do we best …?” Questions get the human brain thinking more quickly.
Document the action live. Instead of taking notes, editing them and distributing them afterward, save time by capturing everything electronically in real time. Action items can be projected for all to see during the meeting, then made available in a master spreadsheet hosted on the company’s server for easy access by all.
Time-box everything. Meetings should last 45 minutes, from five minutes after the hour to 10 minutes before the next hour. Allot time for each agenda item and especially for presentations. Get people used to the fact that anything which runs over will be guillotined. When
people are challenged to figure out how to get things done in the time allotted, it’s amazing how they can.
Leverage the wall space. Wall space is one of the most underutilized assets in a business. Post on the wall the standing agenda, creative problem-solving frameworks, the company’s core values, key elements of the strategic plan, inspirational quotations, etc., all in a format large enough to refer to during the meeting.
Generate input. Have everyone take a minute to write down an idea relevant to the agenda item. Go around the table and allow each person to share his or her idea, or break into pairs or triads to discuss the ideas
and report back. (Remember to allot time for each step of the process.)
Get fast consensus. Once the options are on the table, prompt the group with statements and questions to facilitate fast decisions: “I’m leaning toward this …”; “Does
anyone have a violent objection to that … ?”; “Can everyone get behind that?” Then move them into fast action: “How would we best do that?”
Agility is the ability to be constantly looking for opportunities to move forward toward goals while planning
for problems, capitalize on fleeting opportunities, rebound from problems and make decisions on the turn of a dime. That doesn’t happen in businesses where executives and workers are bogged down by burdensome systems, procedures and time-wasting meetings stuck in minutiae. Instead of shooting forward when they press on the gas, they go into a futile wheel spin. Creating agile meetings is one big step toward creating an agile organization that is in traction. —Mike Richardson
Wheel$pin: The Agile Executive’s Manifesto: Accelerate Your Growth,
Leverage Your Value, Beat Your Competition mydrivingseat.com
among the keynote speakers are his excellency mr. amr al-Dabbagh, governor and chairman of the board of the Saudi arabian General Investment authority, with the rank of minister, known for visionary and highly ambitious leadership that has seen the value of SaGIa’s investment licenses grow during his eight years with the organization to more than 40 times its total at its inception in 2000; and robert Grady, chairman of the new Jersey State Investment Council and managing director of Cheyenne Capital, whose 19 years experience in private equity includes global coordinator of venture and growth capital at The Carlyle Group and deputy assistant to President George h.W. Bush and executive associate director of the Office of management and Budget in the White house. —RaeAnne Marsh
Thunderbird School of Global Management
thunderbird.edu
“The demand is there, and our business model offers a number of key differentiators that sets Villa La Paws apart and makes it an attractive franchising product,” says Tom murray, Villa La Paws CeO and president, who can show a six-year track record of success for his business.
Villa La Paws launched its nationwide franchise program last month. Core services include cage-free dog day care, pet grooming, dog training and overnight care. In addition to its completely cage-free facilities, what sets the Villa La Paws franchises apart is its use of
technology, which is incorporated into the franchise model and includes 24-hour, indoor/outdoor webcams accessible online
and via the resort’s smart phone application, an iPhone-based national call center, and an
integrated business system. —Sue Kern-Fleischer
Villa La Paws villalapaws.com
Phoenix CompanySees Pay-off of Working with PetsWe LOVe OUr pets. according to a recent survey conducted by the american Pet Products association, 62 percent of U.S. households (72.9 million homes) own a pet, with 46.3 million of those owning a dog. We’re also quick to open our wallets to provide quality care for our four- and two-legged friends. In 2011, total U.S. pet industry expenditures reached an estimated $50.8 billion.
Villa La Paws, a cage-free pet resort, spa and canine training company with two Phoenix locations, is counting on america’s love for animals to catapult its new franchise program, Villa La Paws LLC, nationwide.
Meetings that Get Things Done
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Banking and Credit RelationshipsEstablishing complete banking and loan relationships for small to mid-size business clients.
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16 i n b u s i n e s s m a g . c o mm a r c h 2012
Key IndicatorsKEY INDICATORS FOR the Metro Phoenix economy are provided in each issue to identify those key numbers that give readers a sense of the health of our local economy.
Economic Indicators (Metro Phoenix) Number
YOY % Change
Unemployment (Dec. 2011) 7.9% 0.11
Job Growth (in thousands) (Dec. 2011) 1,742.5 1.64
No. of Housing Permits (Dec. 2011) 573 19.2
Consumer Confidence* (Q1 to date) (Arizona) 69.5 9.64
Average Hourly Earnings (Dec. 2011) 22.73 -0.09
Eller Business Research
Retail Sales (Arizona)
Retail Sales (in thousands)
Nov. 2011
YOY % Change
Total Sales 4,493,048 5.8
Retail 2,797,075 3.2
Food 672,235 3.9
Restaurants & Bars 564,364 10.7
Gasoline 459,372 21.1
Contracting 512,089 12.1
Eller Business Research
Real Estate
Commercial: Office*** Q4 2011 Q4 2010
Vacancy Rate 27.9% 28%
Net Absorption (in SF) 92,786 -100,127
Rental Rates (Class A) $23.45 $24.72
Commercial: Indust.*** Q4 2011 Q4 2010
Vacancy Rate 12.3% 14.5%
Net Absorption (in SF) 2,853,602 105,408
Rental Rates (General Industrial)
$0.51 $0.53
Residential: Jan. 2012 Jan. 2011
Total Sales Volume 6,374 6,164
Total Median Sale Price $128,250 $120,000
New Build Sales Volume 447 310
New Median Sale Price $223,000 $227,233
Resale Sales Volume 5,927 5,854
Resale Median Sale Price $121,500 $115,000
* Rocky Mountain Poll** Consumer Price Index refers to the increase or decrease of certain consumer goods priced month over month.*** Cassidy Turley BRE Commercial
Latest data at time of press
Subsidy Accountability is Good Economic DevelopmentStudy shines light on the economic black hole of state subsidies meant to build businessSTaTeS are SPenDInG billions per year on corporate tax credits, grants and other economic development subsidies that often require little if any job creation and lack wage and benefit standards covering workers at subsidized companies.
These are the key findings of Money for Something: Job Creation and Job Quality Standards in State Economic Development Subsidy Programs, a study by Good Jobs First, a nonprofit research center based in Washington, D.C.
“With unemployment still so high, taxpayers have a right to expect that economic development investments create significant numbers of quality jobs,” says Good Jobs First executive Director Greg Leroy. “If subsidies do not result in real public benefits, they are no better than corporate giveaways,” adds Good Jobs First research Director Philip mattera, principal author of the report.
money for Something rates the performance standards and job quality requirements of 238 key subsidy programs from the 50 states and the District of Columbia. each is rated on a scale of 0 to 100. arizona ranked relatively well and above the average score of 40 with a 42 score, ranking 17th.
The study found that fewer than half (98) of the 238 programs it evaluated impose a wage requirement, and only 53 of those are tied to labor market rates. Only 11 of the wage requirements raise pay levels by mandating rates somewhat above existing market
averages. Wage requirements vary from just above the federal minimum to more than $40/hour in limited cases. regarding health benefits, only 51 programs require that a subsidized employer make healthcare coverage available and only 31 require an employer contribution to premiums.
Subsidy programs vary from sales tax exemptions to cash grants and include corporate income tax credits, enterprise zones, low-cost capital financing and loan guarantees, and reimbursement for worker training expenses.
acknowledging that subsidies are common practice, the report also notes they have long been controversial over such issues as existing companies suffering a competitive disadvantage or greater tax burden, and subsidized companies creating jobs of such poor quality that the government ends up with more calls on its social safety-net programs for the employees and their families.
although subsidies are defined as the various forms of financial assistance given to companies to encourage the growth of business activity and job creation within a state’s borders, Good Jobs First’s research found many programs that are given subsidies have little accountability to ensure that desired outcome. most states have dozens of such programs, which in the aggregate cost state and city taxpayers an estimated $70 billion each year. —Mike Hunter
Good Jobs First goodjobsfirts.org
State Performance & Job Quality ScoresOur Region
State Rank Average Grade
Arizona 17* 46 C-
California 42 23 D
Colorado 13** 51 C
Nevada 1 82 B
New Mexico 39 27 D
Texas 22 42 C-
Utah 32 32 D+
Top 5State Rank Average Grade
Nevada 1 82 B
North Carolina 2 79 B-
Vermont 3 77 B-
Iowa 4 70 B-
Maryland 5 68 C+
* Tied with Delaware and Mississippi** Tied with Georgia and Kansas
For more information on the criteria used to score these states, see the full report, Money for Something, at goodjobsfirst.org.
Metrics & MeasureMeNtsb y t h e n u m b e r s
668702_03535
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i n b u s i n e s s m a g . c o mm a r c h 201218
the Phoenix area, two more in development that are slated to open this year and an additional dozen so planned to open by year’s end.
Jervik, who also served 15 years as the national vice president of operations for Pizza hut, frequently speaks to business professionals about the industry, which he says has been impacted in recent times because of the way business is done nowadays. For one thing, Jervik says, the structure of the work place has changed significantly. For example, the Colorado-based entrepreneur says, 85 percent of workers during the 20th century were full-time; the other 15 percent were either temporary or part-time. In the 21st century, however, only 50 percent are full-time.
“That’s a big change when you get displaced,” he says, noting the recent economic woes that have left many out of work. “you may not land in a job, and you may not land in a full-time job.”
as a result, franchising has become especially attractive to those who have been displaced in their careers, says Shelly Sun, author of Grow Smart, Risk Less: A Low-Capital Path to Multiplying Your Business through Franchising (and, as owner and CeO of Gurnee, Ill.-based BrightStar Care healthcare staffing franchise, featured last year on the reality show “Undercover Boss”). Sun says the industry is seeing interest from those who have been out work for two or even three years as it becomes apparent that jobs aren’t coming back. “There’s a little bit of reality that, ‘If I’m going to have a good future, I’m going to have to create it myself,’” she says. much of the success she has created for herself came only after she chose to franchise her business, which had been successful on the local level. The difference is she’s now expanding it internationally.
Franchise FeesWhile the question of money always pops up early on in discussion
about franchising, Sun insists that isn’t the most important matter to consider. “The passion has to be there,” says Sun, who was named the International Franchise association’s entrepreneur of the year for 2009
LInDa STanFIeLD FeLT she had done all she could do with the plumbing business she and her husband and started in the east Valley, and she didn’t like feeling stuck. “We were trying to make strides,” she says, noting they had joined a plumbing association but hadn’t figured out how to advance their company. “We grew as businesspeople, but, like with high school or college, you have to move on to the next level.”
So when the opportunity presented itself for their company to become part of the Benjamin Franklin Plumbing franchise — known for its fleet of recognizable blue trucks with the iconic image of the great inventor on the side and the catchy tag line, “The punctual plumber” — Stanfield took the matter under consideration. While there were points to evaluate and it wasn’t an entirely easy decision, the couple ultimately decided to join the franchise. They kept their customer base; got access to training, marketing and supplies they hadn’t had before; and even saw their newspaper advertising bill dip by 50 percent thanks to a franchise discount. all in all, the results have thrilled them.
“I’d say we tripled our growth in a lot of different ways,” says Stanfield, who even vacations with Benjamin Franklin colleagues and considers other area franchise owners “like brothers and sisters.”
For entrepreneurs with an existing business, like Stanfield, or someone new to the arena, franchising has long presented itself as an enticing option. Of course, as with any business proposition, there are pros and cons to consider and plenty of fine print to read. That said, franchise supporters have a host of reasons as to why being a franchisor or franchisee is the only way to do business these days.
New and Growing Interest in FranchisingIf anyone knows the industry well, it’s Jeff Jervik, who has worked
both as a franchisee, when he worked for Papa John’s Pizza in hawaii, and as a franchisor in his current position as president and CeO of Fitness Together holdings, Inc. The parent company owns, among other firms, elements Therapeutic massage, a franchise with five locations in
Don’t Go It AloneFranchisors and franchisees build business around a proven commodity by Gremlyn Bradley-Waddell
risks & rewardse n t e r p r i s e
i n b u s i n e s s m a g . c o m m a r c h 2012 19
and was also recognized by the Women Presidents Organization and american express Open as number one in their Top 50 Fastest-Growing Women-Led Organizations in 2011. “you have to understand the need and want to solve it.”
however, cautions Jack eberenz, owner and president of Phoenix-based Franchise Integration, “The problem is that too many franchisees buy from a purely emotional standpoint, as opposed to a logical, objective approach looking at the potential of the business and the support [from the franchisor].”
Of course, money is a key ingredient of franchising, which, as Jervik points out, is basically a license to use the name and trademark, as well as products and services, of a particular business. every franchise, therefore, has a franchise fee, and what a buyer gets in return for that fee typically depends upon how much support the franchisee is given before and after the opening of the business, he says. Some fees may run a few thousand dollars; some may be much more. “The franchise fee is always the biggest obstacle for the franchisee to get over,” he adds.
But while newcomers think their hard-earned investment dollars are going right back into the franchise owner’s pocket, that’s not generally the case, Jervik says. In fact, the transaction is almost cost neutral for a good franchisor. most will invest the money back into the business, making sure that the right infrastructure — everything from the real estate pros who know where the prime locations are to an effective marketing plan that precisely hits its target audience — is in place.
a good franchisor will closely monitor his or her franchisee’s performance and step in with proactive measures if there’s any sign the business is struggling. Communication is key, and a good franchisor keeps the lines of communication open. and, should worse come to worse, a quality franchisor will find the right person for a faltering location and get things turned around. “you don’t want to ruin the reputation of that particular market,” Jervik explains, noting a top-notch franchisor always has to be one step ahead.
although fees are based upon the franchise concept, Sun says a lower fee doesn’t mean a lesser product. She also says that, due to “the capital-lacking environment we’re in” and banks being less than willing to lend, more franchisors are realizing they have to help potential franchisees get access to capital. although it wasn’t this way even two years ago, Sun says a good franchisor today will have prequalified sources available. another source of funding could be rolling a 401(k) into a business purchase, she adds.
In any case, she says anyone considering whether to go the franchise route or the go-it-alone route needs to realize one thing: “Starting on your own will be more expensive.”
Structured riskFrom the franchisor’s standpoint, franchising a locally successful
business is another avenue for achieving growth in revenues and customers. notes Sun, it not only allows the businessperson to expand with limited capital and less risk than opening additional locations on one’s own but mitigates the challenge of trying to take one’s great, local business and manage it in an unfamiliar territory.
On the other side of the equation, along with the industry support that Stanfield mentioned earlier, franchise owners can also take comfort in knowing that their risk is structured, Jervik says. a franchise business is a proven business and business model, after all, and every franchisor must have the Franchise Disclosure Document. This document is
required by the Federal Trade Commission, he notes, and must disclose, among other things, any business owner who has closed or transferred a franchise location and information about how all the franchises are doing financially. “I guess what I’m saying is, there’s no place to hide,” Jervik says.
Sun says some of the larger companies, like an international fast-food chain or a well-known hotel firm, might have a one- or two-page document. Others may have as many as 10 pages. The smaller the company, the more critical the disclosure document is, she adds.
Brand recognition is another bonus of belonging to a franchise, Jervik says. Successful franchisees stay the course to protect the brand, and that bodes well for all involved. The biggest reason some franchisees fail is because they try to tweak the brand or offer a new service or product. as Jervik says, “The Big mac has to taste the same at every mcDonald’s.”
That said, even though being a successful franchisee typically means strictly adhering to a franchisor’s guidelines, there is some room for leeway. eberenz says such flexibility depends upon the systems — such as purchasing, supplies and sales — a company has in place. It’s standard, he says, to have about seven to ten key factors that control and protect a franchise’s brand name, make the franchise profitable and keep customers coming back. The quality of raw materials, such as a bistro’s meat and produce or a construction outfit’s finishing nails, would likely be strictly controlled. “and, if you’re running a restaurant, there’s no give on cleanliness,” says eberenz, who serves on the boards of realty executives International and Precision Door Service. “Signage can vary a little, but it has to be exactly the right color and use of the trademark.”
Where there could be some room for give would be, for example, employee uniforms. a Florida-based locksmith company might have standard-issue garments for its warm-weather employees, but a cold-weather franchisee might need to make adjustments to accommodate area conditions. another area where there’s a lot of latitude for franchisees to explore what works or doesn’t work in their neighborhood is marketing and sales, eberenz adds. Some franchisees might be great at cold calling potential new customers, for instance, while others shun it. even if an approach has not been suggested by the franchisor, it may very well be approved in the blink of an eye. “If it gets results, that’s what matters,” eberenz says.
Other perks simply have to do with economies of scale, Jervik says, which are beneficial to both the franchisor and the franchisee. The more locations one has, the better the pricing that can be had from the distributor and vendors and the more efficient the marketing can become. and as the franchisee, support starts immediately, from finding the right location to getting fair terms on a lease, then moving to finding a qualified contractor who can do the work at the right price in the right amount of time, then getting people trained and opening the doors. “as a business owner, it’s really difficult to do everything yourself,” says Stanfield, the owner of the east Valley plumbing franchise.
So, it’s really no wonder that franchising is as popular at is. It just makes sense to those with the right backing and skill set. “you feel like you’re in business for yourself,” Jervik says. “But you’re not in business by yourself.”
Benjamin Franklin Plumbing benfranklinplumbingaz.com
BrightStar Care brightstarcare.com
Fitness Together Holdings, Inc. thewellnessleader.com
Franchise Integration franway.com
Expanding on a Concept ■ Leonesio’s goal for The Joint…the chiropractic
place is to have 1,000 franchises and 500,000 members in 10 years.
■ As of January this year, The Joint...the chiropractic place has 33 clinics open, 146 awarded and in development and 149 in agreement with Regional Developers. Locations are in Arizona, California, Louisiana, Texas, Colorado, Kansas, Nebraska, Florida, Georgia, South Carolina, Nevada, New Mexico, Missouri and utah. Another 202 units are under agreement with additional Regional Developers.
■ Leonesio founded Massage Envy in 2002 and sold it to Natural Wellness uSA in 2008 with 800 franchise licenses awarded and 350 clinics opened.
■ Leonesio built twenty Q, the Sports Clubs between 1990 and 1999, when he sold them to 24 Hour Fitness.
■ Leonesio and his brother grew Scandinavian Health Spas to 40 locations nationwide, and sold the company in 1985 to Bally Health and Fitness.
20 i n b u s i n e s s m a g . c o mm a r c h 2012
John Leonesio: Forging Chains of SuccessFrom chains to franchise networks, Leonesio builds by focusing on key industry changesby Alison Stanton
operating system was identical. Q showed me that if you have a successful business model, it can be duplicated over and over.”
his first franchise business came next, but it didn’t start as a franchise idea. he had learned during his time with Q that, for many people, getting a massage was not merely a luxury but rather an important part of their fitness routine. “I realized that people who are into fitness like massages because they can help them recover quicker from their workouts, and I saw a trend developing where people wanted to get massages but they wanted the places to stay open later and on the weekends,” he says. “Price is also always a factor with people, and so if I could also help make massage affordable, I would. I really looked at what the customers wanted.”
In 2002, Leonesio founded massage envy, anticipating opening a chain of five or six locations around the Valley. “I wasn’t focusing on franchising at the time, but after six months I explored it as an option.” he decided he wanted to license the locations and teach others how to do the system, so franchising made sense. In six years, he had grown the franchise from idea to a $300 million company with more than 800 licenses awarded. he then sold the company to natural Wellness USa, Inc.
Leonesio’s latest endeavor is The Joint, which was founded in 1999 by Fred Gerretzen,
D.C., in Tucson. Looking to take the concept to the next level, The Joint hired Leonesio as CeO in 2010 due to his success with massage envy. he quickly turned the franchise from its faltering growth to an expanding enterprise that now has more than 150 clinics open or in development in multiple states, including arizona, California and Louisiana. “I’m applying the same core strategies that made massage envy so successful, by incorporating chiropractic care into the wellness routine and making it accessible and affordable to everyone.”
Leonesio says he has thoroughly enjoyed his experience in franchises, which he says he has tried to keep as simple as possible so that each franchisee can be successful. noting that the health clubs didn’t lend themselves well to franchising because they required a substantial investment — each Q location cost about $7.5 million — and were fairly complex to run, he explains that his model for a franchise is a business that is inexpensive and whose operation is fairly easy to teach. “I’m just very enamored with franchises and the concept of helping people fulfill their dreams of opening their own companies.”
The Joint…the chiropractic place thejoint.com
reFerrInG TO hIS decades of experience creating successful businesses, John Leonesio, CeO of The Joint…the chiropractic place, jokingly refers to himself as a “one-trick pony.” his “trick”? Growing four businesses from the idea stage to hundreds of locations around the country.
The key, Leonesio says, is taking specific parts of industries that need to be improved, finding a way to do it, and then sticking with an already-proven business model to make the business grow. “I am not out to change the industry; I’m only changing the way it’s brought to the public by giving them what they want and how it is delivered,” he says. “The concept I know is how to create the successful model and let it get its own momentum, and build up brand recognition.”
Leonesio’s interest in franchises began more than 40 years ago, when he and his brother Frank started their own chain of health clubs called Scandinavian health Spas. Over time, the duo built up the business to about 40 health clubs, which they sold to Bally health and Fitness in 1985.
Leonesio stayed with the health club genre for his second endeavor, opening another fitness club in the Valley in 1990 that he named Q, the Sports Club. “I built 20 of them in five years then sold them to 24 hour Fitness,” he says. “The difference between the chains was that with Q, they were all identical and the
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KnOW SOmeOne OUT of work? With the unemployment rate lingering at 8.5 percent nationally, the surprising fact is, in the last six months, a large portion of the 3.5 million job openings across the country have gone unfilled for months. how does this jibe with the reality that 40 percent of the unemployed have been without work for a year or longer?
Blame it on a skills gap. It’s an international problem that has hit the United States hard. and, like everything else about the Great recession, arizona’s skills gap issue is magnified even more, especially in the management, science, technology, engineering and manufacturing sectors.
It’s a talent mismatch that has economic and workforce development professionals scrambling to find solutions. Compounding the problem here in arizona is the fact that the dominant industries prior to 2008 — hospitality, services, tourism and construction
It’s a wake-up call as Arizona faces an urgent need for highly skilled workers
i n b u s i n e s s m a g . c o mm a r c h 201224
— are being replaced by industries requiring a different and higher-level skill set. and then there’s education. In arizona, 78 percent of the unemployed have no post-secondary education, and 40 percent of arizonans over the age of 25 have a high school education or less.
An Alarming Wake-up CallPatrick Burkhart is the assistant director of
maricopa County human Services Department, Workforce Development Division. he oversees maricopa Workforce Connections, a program designed to develop a competitive work force and reduce the number of public assistance recipients in maricopa County. Burkhart’s wake-up call to arizona’s alarming skills gap issue came in February 2011 when he reviewed the results of a study his office had commissioned through arizona State University’s Center for health Information and research. “It hit me over the head,” he says. “We had been conducting annual studies relating to healthcare, but this time we expanded our questions to get a much broader picture.”
The broader picture jolted Burkhart into action. he immediately went to work to assess just how serious the skills gap problem in arizona not only is but will be. “On a national level, we tend to be focused on what skills will be in demand 12 to 18 months from now, when we should be looking at five years and beyond. If the present trend continues, by 2020, there will be an excess of 6 million low-skill and low-education workers and a shortage of 1.5 million college-educated workers,” he says.
Industries with the largest skills gap are limping along trying to find qualified workers. a recent mcKinsey report revealed that 64 percent of companies surveyed can’t find qualified applicants for management, scientific, engineering and technical positions. In arizona, 76 percent of arizona technology companies report that it is either very difficult or somewhat difficult to find qualified applicants for computer science, engineering and technical positions. and the findings of a national manufacturing Institute survey are just as sobering: 67 percent of employers report a moderate to severe shortage of available qualified workers, and 56 percent expect this shortage to become more severe.
Sherman Jennings is chair of the Governor’s Council on Workforce Policy and human resources Site Leader at Boeing. In his role with the GCWP, he provides guidance to the Governor and the state legislature regarding workforce development issues. he also manages the GCWP’s responsibilities for making policy decisions for the operation of the local workforce system statewide. “This is a critical issue for arizona’s future. To attempt to quantify it does not address the core issue of why this problem exists
and, more importantly, what plans are in place and being developed to address the skills gap. The ability to provide ready-to-employ citizens is central to the ability of arizona to attract and retain employers that will enable arizona’s future,” Jennings says.
A Work Force of ‘Left Behinds’Did we mention the fact our work force is aging?
approximately one-third of our national work force is age 55 or older. Because of current economic conditions, most plan to work past retirement age. But once the economy stabilizes, they will exit in droves. “Between 2015 and 2020, they are going to vamoose — and all at once,” Burkhart says.
So, who is left behind? It’s a mixed bag of older and younger workers, some of whom are credentialed but not necessarily experienced. most will have transferable rather than precise skills and experience. The majority will have a low skill set and little education. also making up the majority of our work force: people with disabilities, veterans, people with poor credit, long-term unemployed and people with prior legal offenses.
arizona Public Service is already preparing for a mass exodus of workers who will retire. “Like the rest of the utility industry, aPS is facing increased workforce retirements over the next five years,” says Lori Sundberg, aPS senior vice president, human resources and ethics. “Today, 25 percent of our employees are eligible to retire, and by 2014, the percentage will jump to 43 percent. at the same time, energy technology continues to evolve, whether we’re talking about renewable energy or smart meters. That means we’re looking for different skills in some areas.”
In Arizona, the dominant industries prior to 2008 — hospitality, services, tourism and construction — are being replaced by industries requiring a different and higher-level skill set.
i n b u s i n e s s m a g . c o m m a r c h 2012 25
elaine Babcock serves as the vice chair for the GCWP. as manager of the Southern arizona human resources department of Southwest Gas Corporation, she says the skill set required to do jobs has been changing since long before the recession. “If we think about this broadly, our business has changed dramatically over the years using technology. For example, our construction crews have computers on their trucks, and we include computer skills in our recruitment process for construction workers,” she says.
Babcock’s colleague, Betty Gudeman, manages Southwest Gas’s Central arizona human resources division and worries about what will happen when the economy stabilizes. “Once job seekers find their ideal jobs and unemployment rates go down to 4 or 5 percent, we may see a slight shift in the candidates looking for work,” she says.
Developing a Talent PipelineBack to the “left behinds” — how do we train them
so they get into the hiring pipeline?Barry Broome, president and CeO of the Greater
Phoenix economic Council, says it is important to understand why so many companies are finding it difficult to recruit qualified workers. “much of the high-end, management-level talent has been absorbed. For those workers who are left behind, there is a lack of understanding what skills are transferable. In addition, there is an insufficient pool of employees having two to five years of specific experience.” he calls Phoenix a high-growth, big-bandwidth market, and notes another challenge is many people are eager to work but are used to high
wages for semi-skilled jobs. “This is what happens when the market contracts. We end up with a gap.”
recognizing that education is vital in solving the skills gap issue, Broome says GPeC is working with other like-minded organizations to evaluate better programs geared at developing a talented pool of skilled workers. “We’re assessing the region’s training programs and placing an emphasis on working with our community colleges. There are more than 260,000 community college students in the Phoenix metropolitan area … among the highest concentration of students in the nation.”
more college graduates will help. By 2018, 61 percent of all jobs in arizona will require some postsecondary training beyond high school. and within the next 10 years, nearly 170,000 arizona jobs requiring a Bachelor’s degree will become vacant due to retiring Baby Boomers.
Tom anderes, Ph.D., is president of the state’s public university governing system, the arizona Board of regents, and co-chair of Getting aheaD (access to higher education and Degrees), a special project that was created three years ago from a $1.5 million grant from the Lumina Foundation for education. arizona was one of seven states to receive grant funds. he notes, “The intention is to put universities and colleges in a position to provide a wider array of postsecondary education that is more accessible and affordable. at one time, the U.S. ranked at the top of the world in college completions, but now we’re ranked 12th, and that number continues to drop. In addition, arizona is substantially behind the U.S. [average] in the number of high school graduates who pursue postsecondary education, ranking 45th nationally.”
The four-year grant has enabled the Getting aheaD project to develop innovative new partnerships between community colleges and arizona’s three public universities to fundamentally change the enterprise of higher education so that more residents can complete associate and bachelor’s degrees. “We’re working to open up more pathways for students. all of the community college and university presidents now meet quarterly, whereas there was no vehicle for them to do so in the past,” Dr. anderes says, adding, “We have also developed performance funding, and advising and career planning is now more student-centered.”
recognizing the need to start early, Getting aheaD recently launched a high school online portal, aztransfer.com, that helps students, parents and K-12 administrators and advisors identify the graduation requirements students need to complete in order to be accepted into a university. “It’s a great resource to help young people who may be uncertain about their future or less motivated,” Dr. anderes says.
“If the present trend continues, by 2020, there will be an excess of 6 million low-skill and low-education workers and a shortage of 1.5 million college-educated workers.” —Patrick Burkhart
i n b u s i n e s s m a g . c o mm a r c h 201226
The Getting aheaD grant has also enabled colleges and universities to create an enterprise Plan. “It is broad strategic direction of where we want to go. There is much more to what we’re trying to do,” Dr. anderes says. Four goals represent the foundation of the universities’ enterprise Plan and the basis for the decisions made in the future: access and excellence, research excellence, work force and the community, and productivity. “Increasing access and seeing more residents with a degree will contribute to the growing workforce demands, while increasing our research base will contribute to a stronger economy locally and across the state,” he says. The plan has 32 different metrics that will help assess their progress on the goals while their funding will be driven by university success in attaining annual targets. “Our level of improvement will be transparent and apparent to all those interested in our impact on individuals, communities and the state.”
On the corporate side, more companies in need of skilled labor are increasing their support of education. aPS’s corporate giving is focused on supporting STem (science, technology, engineering and math) programs throughout arizona. “We are focusing on building our talent pipelines, planning for retirements, ensuring we identify and transfer critical knowledge and strengthening our capabilities in workforce planning, data and analysis,” Sundberg says. “We want to be able to hire men and women from across arizona for jobs as line workers, accountants, plant operators, electricians, power engineers, security officers, IT specialists and many more.”
Through the new arizona energy Workforce Consortium, the state’s utility companies and electric cooperatives are working with educational and governmental entities to build talent pipelines and create a greater awareness of energy jobs in arizona. aPS also is one of only five utility companies nationwide piloting the Troops to energy Jobs program, sponsored by the Center for energy Workforce Development. This program focuses on helping military veterans transition into jobs in the energy industry, offering skills testing, career coaching and an online application process.
“We also are working collaboratively with the maricopa Community Colleges that offer specialized training for the energy industry. For example, estrella mountain Community College works closely with our Palo Verde nuclear Generating Station and has launched the Get Into energy Program this semester,” Sundberg says. The program provides scholarships to high school students who want to learn the skills needed for the energy industry. aPS also works with Chandler-Gilbert Community College, which offers an electric Utility Technology Program. In addition, aPS sponsors an internship program, and employed
nearly 100 college students in summer and year-round internships last year.
Boeing is also taking a proactive approach to finding and developing skilled labor. “education is the key to addressing this critical issue,” says Jennings. “The education system of arizona needs to be in sync with preparing its students with the current and emerging needs of its present and future employers.” Boeing has increased its outreach efforts at all levels of the education and employment spectrum to include mentoring in math and science at the grade school level, partnerships with local community colleges and universities, and, on the national level, recruiting efforts and university relationships. “We are continuously looking for new solutions to this issue,” he says, citing as examples an apprenticeship Boeing is creating to help close the gap in the skilled-crafts job family and efforts to increase Boeing’s partnerships with local entities to include nonprofits and state entities that can direct new talent to the organization. “additionally, we are encouraging our employees to utilize their networks to assist in the process of finding the talent that we need for the present and the future.”
Call to ActionOn a national level, several states have already
taken progressive steps to address their skills gap issue. Colorado, minnesota, michigan, Connecticut, Pennsylvania, Washington, mississippi and massachusetts forged initiatives and are working closely with employers, educators and the work force to overcome their challenges.
“arizona needs a sector strategy,” Burkhart says. “as Peter Drucker said, ‘The greatest danger in times of turbulence is not the turbulence; it is to act
“Much of the high-end, management-level talent has been absorbed. For those workers who are left behind, there is a lack of understanding what skills are transferable.” —Barry Broome
i n b u s i n e s s m a g . c o m m a r c h 2012 27
with yesterday’s logic.’ We can’t continue to operate like we did in the past. It is no longer a buyer’s market for talent, and we need an initiative quickly.”
Burkhart is working to create a regional workforce summit comprised of economic and workforce development leaders; major trade associations; chambers of commerce; leading employers; and human resource, education and political leaders. Summit participants will devise a regional two-part plan addressing a fast-track tactical skills shortage solution and a strategic pipeline solution for the mid-decade retirement bubble. While the summit is still in its initial planning stages, Burkhart encourages those concerned about arizona’s skills gap to engage with local workforce and economic development groups now so their concerns will be addressed.
Bridging the skills gap is not going to be easy. nor will it happen overnight. But it will take a team effort and a “can-do” attitude. “There’s nothing like a challenge to get up in the morning,” Burkhart says.
Arizona Board of Regents azregents.edu
Arizona Public Service aps.com
The Boeing Company boeing.com
Getting AHEAD gettingaheadaz.org
Governor’s Council on Workforce Policy
arizonaworkforceconnection.com/gcwp/council.asp
Greater Phoenix Economic Council gpec.org
Maricopa Workforce Connections
maricopaworkforceconnection.com
Southwest Gas Corporation swgas.com
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i n b u s i n e s s m a g . c o mm a r c h 201228 i n b u s i n e s s m a g . c o m
JUST a FeW years ago, globalization was in full swing and the world seemed to be bursting with an infinite supply of business. all this bounty lulled us into taking our customers for granted — until the economy tanked and shattered the illusion of endless prosperity. Suddenly, the old-fashioned “trusted relationship” started to look good again.
Personal connection, likeability and trustworthiness are today’s new litmus test for doing business. We create these qualities not by knowing the right answers but by knowing the right questions.
asking questions and letting people come up with their own answers is far more effective than spouting facts or trying to talk someone into something. Telling creates resistance. asking creates relationships. here are nine ways questions can transform professional and personal relationships:
“you’ve had an extraordinary career. you have accomplished so much, starting at the very first rung of the ladder, on the manufacturing floor. as you look ahead, is there something else you’d like to accomplish? Is there a dream you’ve yet to fulfill?” nearly stunned, the CeO replied, “no one has ever asked me that question. no one.” and then he began talking about a deeply held dream he had for his retirement. That question was the turning point in building a long-term, deeply personal relationship with an influential business leader.
They make the conversation about the other person. most of us don’t care what other people think — we want to know first if they care about us. The need to be heard is one of the most powerful motivating forces in human nature. “What do you think?” and “Can you tell me more?” are power questions.
When you make the conversation all about you, others may think you are clever. But you will not build their trust. you will not learn about them. you will squander the opportunity to build the foundations for a rich, long-term relationship.
They cut through the “blah, blah, blah” and create more authentic conversations. no doubt you can relate to this scenario: a person says, “I want to bounce something off you,” then proceeds to spend ten minutes telling you every detail of a very convoluted situation he is enmeshed in. you do yourself and the other person a favor by getting him to focus on the true kernel of his issue. Simply ask: What is your question?
This is a tough-love question. People will resist it — often strenuously. But asking it forces them to take the first step toward clarifying what the issue is and what advice they really need from you.
They help people clarify their thinking. Instead of saying, “We need to improve our customer service!” ask, “how would you assess our customer service levels today?” or “how is our service impacting our customer retention?” If someone at work says, “We need more innovation,” ask, “Can you describe what innovation means to you? how would we know if we had more of it?” Or if there is a call for more teamwork, ask, “What do you mean when you say ‘teamwork’?”
They help you zero in on what matters most to the other person. The next time you’re talking to someone and realize you’ve “lost” her — she’s fidgeting, she’s stopped asking questions, maybe she’s sneaking glances at
Ask, Don’t Tell Power questions help build better business relationshipsby Andrew Sobel and Jerold Panas
Questions turn one-dimensional, arms-length business relationships into personal relationships that endure for years. When a relationship is all business and there is no real personal connection, it lacks heart and soul. and therefore you are a commodity — a kind of fungible expert-for-hire. a client — or your boss — can trade you out for a new model with no remorse or emotion. But when you’ve connected personally, the situation is transformed because clients stick with people they like. Bosses hold onto team members they feel passionately about. your expertise and competence get you in the door, but it’s the personal connection that then builds deep loyalty.
near the end of a meeting with the CeO of a major client that was being courted by competitors, the senior partner of a consulting firm paused from the briefing and said,
louder thaN wordsC o m m u n i C a t e
The Instant Survivor: Right Ways to Respond When Things Go WrongWHEN A PERSON is distracted by professional and personal crises, he or she works less productively, delivers poor results and suffers from poor health. Yet employees and their managers are not equipped to effectively resolve these crises. As a partner in a leading Washington law firm, crisis-management veteran Jim Moorhead has spent
decades helping Fortune 500 companies and individuals survive crises, and now offers a simple, actionable process based on proven business practices that will enable managers to resolve personal crises at any level of any organization.
Jim Moorhead$19.95 • Greenleaf Book Group • On shelves and online
The Power of Habit: Why We Do What We Do in Life and BusinessThe New York TIMeS business reporter Charles Duhigg takes us to the edge of scientific discoveries that explain why habits exist and how they can be changed. Learn why some people and companies struggle to change, despite years of trying, while others seem to remake themselves overnight. Visit laboratories where
neuroscientists explore how habits work and where, exactly, they reside in our brains. Discover how the right habits were crucial to the success of Olympic swimmer Michael Phelps, Starbucks CEO Howard Schultz and civil rights hero Martin Luther King Jr.
Charles Duhigg$16.46 • Random House • On shelves and online
The 20% Doctrine: How Tinkering, Goofing Off, and Breaking the Rules at Work Drive Success in BusinessGAWKER TECH-BLOGGER and journalist Ryan Tate reveals how businesses can inspire greater creativity and productivity by making small, specific changes to how work time is approached within their corporate cultures and allowing their employees to pursue their own passions at work. The concept of “20% Time” originated
at Google, but Tate takes examples from all around the business world, including Flickr and The huffington Post, to demonstrate how flexibility and experimentation can revolutionize any business model.
Ryan Tate$16.97 • HarperCollins • April 2012
The Loyalty Leap: Turning Customer Information into Customer IntimacyBRYAN PEARSON DRAWS on more than 20 years of first-hand experience in building emotional loyalty in an information age, with insightful stories from the trenches of the data-gathering and marketing communications fields. While other business books address customer service and data as the abstract fruit of technology,
his new book reveals how shopper data can be used as the cornerstone upon which to build intimate customer relationships, leading to profitable growth in the new era of marketing.
Bryan Pearson$16.95 • Portfolio Hardcover • May 2012
i n b u s i n e s s m a g . c o m m a r c h 2012 29i n b u s i n e s s m a g . c o m
the clock — ask, “What is the most important thing we should be discussing today?” you will instantly connect with what really matters to her, and the conversation that ensues will help her see you as relevant and valuable. In business it’s critical to be seen as advancing the other person’s agenda of essential priorities and goals.
They help others tap into their essential passion for their work. One of the highest-impact power questions you can ask is, “Why do you do what you do?” It grabs people by the heart and motivates them. When they seriously consider and answer this question, the room will light up with passion. Dull meetings will transform into sessions that pop with energy and generate ideas that vault over bureaucratic hurdles and create real impact.
They inspire people to work at a higher level. The late Steve Jobs was notorious for pushing employees. he asked people constantly, “Is this the best you can do?” It’s a question that infused apple’s corporate culture from the beginning. It’s one that helped revolutionize the desktop computing, music and cellular phone industries. and it’s one that you can use too — sparingly and carefully — when you need someone to stretch their limits and do their very best work.
They can save you from making a fool of yourself. Before responding to a request or answering someone’s question to you, it’s often wise to get more information about what the other person really wants. When a potential employer says, “Tell me about yourself,” you can bore them to tears by rambling on and on about your life — or you could respond by asking, “What would you like to know about me?” When a prospect asks, “Can you tell me about your firm?” the same dynamic applies. most people go on and on about their company, but the client is usually interested in one particular aspect of your business, not how many offices you have in europe.
They can salvage a disastrous conversation. It happens all the time in business — and at home — that interactions get off on the wrong foot and someone gets angry or offended or just shuts down. But people are forgiving. They want to have a great conversation with you. asking, “Do you mind if we start over?” will disarm the other person and make him smile. That smile will ease the way to a new beginning.
all business interactions are human interactions, and part of being human is acknowledging that you don’t know everything about everything — and that you certainly don’t know everything about the other person and her needs. Questions help you understand these things more deeply. The right questions unleash a cascade of innermost feelings and vibrant conversations. They help you bypass what’s irrelevant and get straight to what’s truly meaningful. They make people like you, trust you and want to work with you.
Andrew Sobel and Jerold Panas are co-authors of Power Questions: Build Relationships, Win New Business, and Influence Others. andrewsobel.com • jeroldpanas.com
executive educator, coach and top-level management consultant, Andrew Sobel has worked with leading corporations such as Citigroup and professional service firms such as ernst & Young. In addition to numerous books, he has authored articles that have been featured in a variety of publications such as The New York Times, Business Week and Harvard Business Review.
Jerold Panas is executive partner of Jerold Panas, Linzy & Partners, a fundraising services and financial resource development firm whose clients comprise many of the foremost not-for-profit institutions in the world; founder and chairman of the board of the Institute for Charitable Giving, one of the most significant providers of training in philanthropy; a noted author on the subject as well as a regular contributor to professional journals.
Books oN BetteriNg BusiNessb o o k s
■ EVENT: Hospice of the Valley’s CIGNA Pro-Am Golf Tournament on April 5 at Grayhawk Golf Club.
■ With about 1,700 employees — including an on-duty staff — and 2,500 volunteers, Hospice of the Valley provides 24/7 care.
■ Hospice care is provided mainly at home by a team comprised of a doctor, nurse, social worker, nurse’s aide, chaplain (if requested) and volunteer.
■ Hospice care does not cost the patient anything out of pocket. ■ Sixteen palliative care units Valley-wide offer inpatient hospice care
for limited periods of time.
■ EVENT: 97th Annual Charity Ball, April 21, at Camelback Inn Resort and Spa, Phoenix.
■ Two part-time staff members, 50 active members and 130 associate members work at the nonprofit organization.
■ The active members organize the annual charity ball and Care Card fundraisers, and the associate members run the annual fashion show.
■ The 2012 Care Card will benefit uMOM New Day Centers. ■ A limited amount of additional donations is given by attendees of
the events.
30 i n b u s i n e s s m a g . c o mm a r c h 2012
In business to do good for the community, nonprofits enrich the lives of those who contribute as well as those who receive. In Business Magazine showcases two nonprofits in each issue, focusing on their business organization and spotlighting an upcoming fundraising event.
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Hospice of the Valley: Providing Comfort and Care to Patients
The Board of Visitors: Funding Healthcare Needs of the CommunityFOr mOre Than 100 years, The Board of Visitors has made contributions to the healthcare needs of women, children and the elderly throughout the Phoenix metropolitan area. according to its website, it is the oldest charitable organization in the state.
“We … determine allocation and distribution of funds to those nonprofits who meet our mission statement,” says mary ann Sheely, chairman of The Board of Visitors, adding that charities may apply for a grant directly through the Board of Visitors website.
The Board of Visitors relies on three fundraisers a year to raise money: an annual Charity Ball in the spring, sales of a Care Card in the fall — the card, which sells for $50, allows shoppers to save 20 percent on purchases for about 10 days at more than 700 participating retailers — and an annual fashion show and luncheon in December.
Since 1995, the nonprofit organization has contributed $14 million to local charities. Sheely says that last year’s budget was close to $1 million, the vast majority of which was donated to local nonprofits. “We are really proud to keep our operating expenses at less than 10 percent,” she says.
The Board of Visitors boardofvisitors.org
FOr 35 yearS, hospice of the Valley has provided end-of-life care to patients with life-limiting illnesses and support to their families. The nonprofit organization’s mission statement is “Bringing comfort and dignity as life nears its end.”
hospice of the Valley’s main source of funding is medicare, says executive director Susan Levine. In addition to hospice care, these dollars help pay for staffing, medications, equipment and facilities. But donations and grants are the chief funding for the recently established arizona Palliative home Care, which cares for the seriously ill who are struggling with daily living and disease management. and the donor-funded helping hands fund takes care of emergency needs of patients and families, which could be help paying the rent or a utility bill or buying a plane ticket to reunite a patient and family member. “Our not-for-profit agency relies on donations to care for people without insurance or the financial ability to pay,” she says. “Donations also pay for services not covered by insurance, such as pet, music and massage therapy and some pediatric services.”
Charity care expenses grew by 16 percent from 2009 to 2010, Levine says, reaching more than $11 million. no one was denied service through hospice of the Valley because of an inability to pay.
Hospice of the Valley hov.org
iNVestiNg iN coMMuNityn o n p r o F i t by Alison Stanton
31i n b u s i n e s s m a g . c o m m a r c h 2012
March 2012A listing of Greater Phoenix business organizations and their events. Visit www.inbusinessmag.com for an expanded monthly calendar of educational, networking and special business events.
Economic Club of Phoenix
Business LuncheonTues., March 13 — 11:30a – 1:30p LOnG reCOGnIzeD aS the place to meet national and international leaders in business, the economic Club of Phoenix’s monthly luncheons have included CeOs from Southwest airlines to the Ford motor Company who have taken the stage to share with local executives their wealth of experience. at this month’s luncheon, which will be held at the Westin Kierland resort & Spa in Scottsdale, the featured speaker is Doug Parker, chairman and CeO of US airways.
US airways Group has been one of the largest employers in arizona since its merger in 2005 with america West airlines. Parker, who had joined america West as senior VP and CFO in 1995 and been elected chairman, president and CeO in 2001, became chairman and CeO of US airways after the america West/US airways merger. he has 25 years of airline industry experience.
The economic Club of Phoenix continues to drive the collective power of arizona business. Through local networking, exposure to national and international industry icons, and access to the leadership and knowledge of arizona State
Notable Dates This MonthSat., March 17 St. Patrick’s Day
Tues., March 20 Vernal Equinox
Fri., March 30 César Chávez Day (observed)
Agenda events are submitted by the organizations and are subject to change. Please check with the organization to ensure accuracy. See more events online at www.inbusinessmag.com.
University’s W. P. Carey School of Business, this pre-eminent forum was created to foster discussion of economic issues amongst academic, business, labor and public sectors in the Phoenix area and is an essential resource for every Valley business leader. Luncheon fee for economic Club of Phoenix members varies with their type of membership; for non-members, the cost is $75. advance registration is required. —RaeAnne Marsh
Economic Club of Phoenix econclubphx.org
Arizona Small Business Association
Business Development SeriesSix-week series in April and May, morning and evening sessions
PreSenTInG The SerIeS at its Business education Center in Phoenix, aSBa kicks it off with a “Process of Business Development” overview offered three times in march — on the 1st, 15th and 29th, from 8 a.m. to noon. The series itself begins on Thursday, april 5, for the evening sessions (5 p.m. to 8 p.m.) and on Friday, april 6, for the morning ones (8 a.m. to 11 a.m.). Businesspeople may attend the overview to become acquainted with the type of content that will be covered in the series’ sessions, or may sign up directly for the series.
The program is designed for companies that are on the cusp of opening, or even still in the idea phase, as well as those that have been in business for a while and are stalled in growth, explains Kristen Wilson, aSBa chief operating officer. “We saw a need [among the businesspeople] applying for our mentoring programs,” she says. The sessions will walk business owners through the six areas of running a business: business organization, market analysis, sales strategy, financial overview, KPI (key performance indicators) development and business implementation processes. not only will the program enable participants to construct at least the framework for a business plan, but the final session will include the opportunity to meet with aCCIOn, national Bank of arizona and other financial organizations that are lending to small business.
The sessions will be conducted by business analyst Jerone Davis, of Business Development network, who will also bring in experts in specific subject matter, such as marketing, sales, law and accounting. Davis has been working with businesses in Tucson for 10 years and has teamed with aSBa as its in-house business development consultant to offer this program in Phoenix. —RaeAnne Marsh
Arizona Small Business Association asba.com
economic club of phoenix
www.iNBusiNessMag.coM o n t h e a G e n d a
i n b u s i n e s s m a g . c o mm a r c h 201232
ASSOCIATION FOR CORPORATE GROWTH — ARIZONA
March Breakfast featuring Betsy Baylesstues., March 137:00a – 9:00amembers and sponsors: $49; non-members: $69; at the door: add $10Arizona Biltmore Resort & Spa2400 E. Missouri Ave., Phoenixacg.org/arizona
ARIZONA CHAMBER OF COMMERCE & INDUSTRY
Arizona Heritage Award DinnerFri., March 26:00p registration; 7:00p dinnermembers: $250, non-members: $300Frank Kush FieldSun Devil Stadium at ASU, Tempeazchamber.com
ARIZONA HISPANIC CHAMBER OF COMMERCE
Buenos Dias tues., March 138:00a – 9:30amembers: free; non-members: free with rSVP by march 12, $10 at the door The Better Business Bureau4428 N. 12th St., Phoenixazhcc.com
ARIZONA SMALL BUSINESS ASSOCIATION
The Process of Business Developmentthursdays, March 1, 15, 298:00a - noonThis seminar consists of a four-hour presentation and one hour business review process for each client. This assists start-up and existing business owners to create a realistic overview of a new business model or integrate a new function into their existing business.members: $25; non-members: $40ASBA’s Business Education Center4600 E. Washington St., Phoenix asba.com/events
Creating Your Effective Networking Commercialtues., March 132:00p – 3:00pGet customized pointers on ways you can develop an effective 30-second networking commercial in this hands-on workshop. Facilitated by mike Leeds, Pro Sales Coaching.members: free; non-members: $10ASBA’s Business Education Center4600 E. Washington St., Phoenix asba.com/events
Business Development (Six Part Series – PM)thursdays, April 5 – May 105:00p – 8:00pThis is a six-week, comprehensive workshop for starting and growing your business. Topics: business organization, market analysis, sales strategy, financial overview, KPI (key performance indicators) development and business implementation process.members: $225; non-members: $275ASBA’s Business Education Center4600 E. Washington St., Phoenix asba.com/events(See article on page 31.)
Business Development (Six Part Series – AM)Fridays, April 6 – May 118:00a – 11:00aThis is a six-week, comprehensive workshop for starting and growing your business. Topics: business organization, market analysis, sales strategy, financial overview, KPI (key performance indicators) development and business implementation process.members: $225; non-members: $275ASBA’s Business Education Center4600 E. Washington St., Phoenix asba.com/events(See article on page 31.)
ARIZONA TECHNOLOGY COUNCIL
Lunch and Learn: Becoming a Better Strategic Thinker tues., March 611:30a – 1:00pDirected at professionals and managers who contribute to the development or execution of functional strategies. Presented by adaptive Strategies.members: free; non-members: $15.ASU SkySong1475 N. Scottsdale Rd., Scottsdaleaztechcouncil.org
Lunch and Learn: Tips on Matching the Candidate to the Jobtues., March 1311:30a – 1:00pnew ways of hiring, developing and retaining superior performers as well as data from real-world experiences. Presented by SherPa & associates.members, free; non-members: $15.TTI 17785 N. Pacesetter Way, Scottsdaleaztechcouncil.org
Arizona Health & Medical Technology Expothurs., April 512:30p – 6:30pa focus on cutting-edge healthcare topics and the latest advanced technology in the medical field.members, $20; non-members: $30 (includes two drink tickets during reception).Hilton Scottsdale Resort & Spa6333 N. Scottsdale Rd., Scottsdaleaztechcouncil.org
NATIONAL ASSOCIATION OF WOMEN BUSINESS OWNERS
NAWBO UniversityWed., March 149:30a – 11:00aStart with “Why?”: how to build a memorable brand and stand out in a crowd.members: free; non-members: $30Phoenix Country Club2901 N. 7th St., Phoenixnawbophx.org
Networking LuncheonWed., March 1410:45a – 1:00p“Direct your energy to Succeed at Life and Work!”members: $38 by march 9, $53 by march 11; non-members: $48 by march 9, $63 by march 11Phoenix Country Club2901 N. 7th St., Phoenixnawbophx.org
PEORIA CHAMBER OF COMMERCE
Facebook Seminar for New UsersWed., March 711:00a – 1:00pBring your own laptop with wireless to this interactive seminar. you will leave with a solid understanding of how to implement Facebook as a social media strategy for your business. Instructor: michael Simpson.$20 (includes lunch)City of Peoria, Point of View Room Development and Community Services Bldg9875 N. 85th Ave., Peoriapeoriachamber.com
SCOTTSDALE AREA CHAMBER OF COMMERCE
Airpark Tradeshowthurs., March 83:00p – 7:00pFreeMonterra at WestWorld16601 N. Pima Rd., Scottsdale Calleen Sorensen, (480) 949-6282
Scottsdale’s History Hall of Fame DinnerFri., March 235:30p – 9:00pThe Past President’s Council of the Scottsdale area Chamber of Commerce honors four individuals and one not-for-profit organization$60Chaparral Suites Resort5001 N. Scottsdale Rd., ScottsdaleLeslie nyquist, (480) 949-2174
CENTRAL PHOENIX WOMEN
Monthly Luncheon Mon., March 511:30a – 1:00pyuval yisrael, microsoft Corporation, will present Today’s mobile Interaction Technology.$75 The Ritz-Carlton, Phoenix2401 E. Camelback Rd., Phoenixcentralphoenixwomen.org
CHANDLER CHAMBER OF COMMERCE
Employers’ Seminar Series tues., March 278:00a – 9:15aTopic: “Do your employees have to Study to Pass a Drug Test or Other employment Tests?”members: $5; non-members: $10Chandler Chamber of Commerce25 S. Arizona Pl., Chandlerchandlerchamber.com
Economic Update Forum LuncheonWed., March 2811:30a – 1:30pTopics: City of Chandler update presented by the City of Chandler’s economic Development Department, and “Generational Change: Back to the Future — how to Perceive the next 20 years” presented by Wayne Strutzer, Senior Vice President-advisor Consulting Group, rBC Wealth management.members: $20; non-members: $25 Hilton Phoenix/Chandler2929 W. Frye Rd., Chandler chandlerchamber.com
ECONOMIC CLUB OF PHOENIX
March Luncheontues., March 1311:30a – 1:30p Speaker: Doug Parker, chairman and CeO of US airways.members: fee varies with membership; non-members: $75; advance registration is required.The Westin Kierland Resort & Spa6902 E. Greenway Pkwy., Scottsdaleeconclubphx.org (See article on page 31.)
GREATER PHOENIX CHAMBER OF COMMERCE
Phoenix Forum: History as a Source of StrengthWed., March 711:30a – 1:00pSpeaker: David mcCullough$75Sheraton Phoenix Downtown Hotel 340 N. 3rd St., Phoenixphoenixchamber.com
Please confirm, as dates & times are subject to change.March 2012o n t h e a G e n d a
i n b u s i n e s s m a g . c o m m a r c h 2012 33
SURPRISE REGIONAL CHAMBER OF COMMERCE
Spirit of Community Awards BanquetFri., March 96:00p – 10:00pnow more than ever, thriving local businesses will lead the way as our regional and national economy gets back on the path to recovery. recognizing and celebrating our local businesses and their leaders is an exciting part of this process.$75The Colonnade19116 Colonnade Way, Surprise mary Orta, (623) 583-0692
TEMPE CHAMBER OF COMMERCE
State of the District: A Federal Update with Congressman David SchweikertMon., March 127:00a – 9:00a.Congressman Schweikert will share his vision for the future of our district, state and country.members: $55; non-members: $65Conference Center at Rio Salado College2323 W. 14th St., TempeSachiyo ragsdale, (480) 967-7891
Hot Topics and Lunch: ASU President Michael Crowthurs., March 1511:30a – 1:00p aSU President michael Crow joins us to discuss how one of the nation’s largest colleges intends to maintain a pivotal role in the community. members: $25; non-members: $35Four Points by Sheraton Tempe1333 S. Rural Rd., TempeSachiyo ragsdale, (480) 967-7891
WEST VALLEY WOMEN
Spotlight Our Members Luncheontues., March 611:30a – 1:00p$35 SKYE16844 Arrowhead Fountain Center Dr., Peoria westvalleywomen.org
WOMEN OF SCOTTSDALE
Monthly Luncheon Fri., March 1611:30a – 1:00p$35 The Westin Kierland Resort and Spa6902 E. Greenway Pkwy., Scottsdale womenofscottsdale.org
BUSINESS EVENTS
Global Business Fun and FundingMon., March 57:30a – 9:00aDiscussion of opportunities for U.S. businesses to grow exports features experts Kevin O’Shea, arizona Commerce authority; Pellson Lau, U.S. Small Business administration; and Doug Bruhnke, Growth nation.$20 ($25 at the door)SkySong1475 N. Scottsdale Rd., Scottsdalegrowthnation.com/azigg/upcoming-events
Business Professionals Breakfastthurs., March 88:30a – 10:00aCome prepared with your questions, as this will be an open format for you to get the answers pertaining to your business or industry. Starbucks coffee and a continental breakfast will be served.FreeScottsdale Microsoft Store7014 E. Camelback Rd., [email protected]
THRIVE! Endorsement Event with Arizona Sci-Tech Festivalthurs., March 157:00p – 8:30pan innovative event integrating the spirit of community, collaboration and
technology for small business through relationship and video marketing. FreeScottsdale Microsoft Store7014 E. Camelback Rd., [email protected]
Computer Technology Conference Workshopsthurs., March 222:00p – 3:30p, 3:30p – 5:00pFreeScottsdale Microsoft Store7014 E. Camelback Rd., [email protected]
Computer Technology Conferencethurs. – Sun., March 22 – 25$125Radisson Fort McDowell Resort & Casino10438 N. Fort McDowell Rd., Scottsdalecomptechconf.com
Please confirm, as dates & times are subject to change.
If your event is directed to helping build business in Metro Phoenix, please send us information to include it in the In Business Magazine events calendar.
Email the information to: [email protected].
B U S I N E S S A W A R D SENTERPRISE19th Annual
luncheon
SAVE THE DATE
presented by
C e l e b r a t e t h e B e s t i n B u s i n e s s
Visit asba.com/bestinbusiness
Tuesday, May 1, 2012 | Arizona Biltmore
34 i n b u s i n e s s m a g . c o mm a r c h 2012
Systems … or How to Make the Perfect Latteby Kathy Heasley
hOW IS IT that a grande caramel latte in Phoenix tastes just like the one you had in Columbus which tasted just like the one you had in Chattanooga? how does Starbucks do it? how do any of the big brands manage to keep such consistency from one location to the next, whether it’s across town or around the globe? The answer is “systems” and it is the fifth stage in this heart & mind Branding series.
you will recall from previous articles in this series that great brands first must find their heart, their reason for being. Then they just put it into words; that’s the message stage. next they must translate those words into images, and from there to actions. But it is the final stage, the systems stage, that holds it all together.
More Beneficial than You KnowToo many businesspeople believe the primary reason to have systems
within a company is to create efficiency that lowers costs, delivers a competitive advantage and increases profits. Those are great reasons to systematize your business. But a bigger reason, one that will deliver all those advantages and more, is simply that a consistently wonderful brand experience will keep customers coming back and, even better, telling others about you — and that response is what builds your bottom line.
Setting up systems isn’t just for the big guys and it’s not just for a consumer products company, retailer or restaurant chain; it’s for every business. In fact, systematizing your business is the most critical item on your to-do list. It makes everything easier and stops problems before they start.
It wasn’t too long ago that we were working with a client that was having customer service issues. The company was also having employee issues and its leaders wanted to get people in their company on board and grow their business. When we looked at their company, what we found was a brand that was lacking in both the promise and the experience — those two words that define a brand. But the company also had no systems. One person in the field was doing things her way while another was doing them his way and so on. multiply this by twenty-three, the number of outside consultants the company has, and you have
not only chaos but no brand consistency. Some clients loved the company’s work.
Others felt it was so-so. and still others were unhappy, which cost the company money and hurt its reputation. It was clear the company needed to define its actions in stage four and then systematize them fast before suffering any more damage.
after defining the company’s brand experience, we worked with the company, its leaders and employees to systematize it. We also put systems in place so that promoting the new brand was manageable, too. That included systematizing the blogging, social media, public relations, et cetera so everyone would be consistent on the promise side of the brand equation, too.
You Can SystematizePart of the solution comes from experience and seeing the patterns of
need. Wisdom goes a long way in establishing a brand’s systems. But so does discovering best practices by talking with company employees and customers to find out what’s working, why it’s working and what they love about it. Finally, it’s knowing the tools that make the system efficient. no one likes busy work.
any company, even a company of one, that wants to build a positive reputation in the marketplace (and who doesn’t?) is wise to pay attention to building systems for every process. People always ask us, “When is the right time to brand?” Our answer: Immediately! It is never too early. you’re branding yourself unintentionally if you are not doing it intentionally. Why not own it?
Systems are the secret to creating and building a great brand that people choose, that they recommend and that they love. Starbucks developed its systems with store number one. Smart move. It’s why we can count on a consistent cup of coffee no matter where we are in the world. It’s why we can recognize its brand and feel a sense of comfort no
Intro Message ActionsHeart Image Systems
To reference published segments, please access the archived “Education” articles on the In Business Magazine website, www.inbusinessmag.com.
Heart & Mind Branding — the Education SeriesTHE “HEART & MIND BRANDING” series takes business owners through the steps to consciously address improvements to their company’s success by implementing an integrated approach to branding. In Business Magazine presents the six-part series:
matter which location we visit for our coffee fix. Starbucks is a strong brand not because it has the best coffee; taste is a matter of opinion. Starbucks is a strong brand because it has consistency — because it has systems.
Heasley & Partners, Inc. heasleyandpartners.com
kathy heasley is founder and principal of heasley & Partners, Inc., a branding company that helps organizations grow and prosper. She’s the creator of heart & Mind® Branding, a rich Dad Advisor, author of multiple books and CDs, and international marketing and communications coach.
series oN BraNdiNge d u C a t i o n
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Sales — the Education Series Sales Is Not a Bad Word!
Compelled to Sell: It’s a Process
Silos and Structures of Revenue and Sales
Systems and Correct Measures of the Sales
Building Your Sales Team Correctly
Strengthening the Bench
To reference published segments, please access the archived “Education” articles on the In Business Magazine website, www.inbusinessmag.com.
36 i n b u s i n e s s m a g . c o mm a r c h 2012
Selling styles While every company needs to sell what they
do, not every company needs a salesperson or sales team. If your company is the type that does, then the first step is to look at is the selling style that fits your business. your company can change quadrants (e.g., style and skills; see chart above) over time based on its maturation in its life cycle or the ease of doing business with technology. hiring the person with skills from the wrong quadrant can create chaos or brand corruption, or ruin a team or company.
NOT Expensive, NON-critical: Items in this quadrant are viewed as commodities; selling is about price, availability and competitive issues. Success typically comes from being able to discount to beat the competition or having the hottest brand. Skills that work well here don’t translate well into other quadrants because they are based on a structured approach and system.
Expensive, NON-critical: Items in this quadrant are viewed as utilitarian services or products; selling is about safety, image
Building Your Sales Team CorrectlyBy Mike Toney
or reducing risk. examples range from life insurance to pricey home décor items. however, an item that fits into this bucket may slide into “expensive, Critical” if safety or risk is imminent for the buyer — which would require a different selling approach and different sales skills.
NOT Expensive, Critical: Items in this quadrant are viewed as high-value products or services that solve an immediate problem. Businesses in this category, such as consulting, website development and marketing, require sales skills that are very market or domain specific along with elements of problem solving to ensure fit. also, an item that was neither expensive nor critical could fall here in some circumstances, such as a gallon of gas needed to travel for an unexpected, urgent meeting or chore. a salesperson with a good sales method and skill set can remove competitive and pricing issues by discovering the criticality of the moment for the buyer.
Expensive, Critical: Items in this quadrant are viewed as value-added products or services that provide solutions and minimize risk, from outsourced manufacturing to talent management to customized products and services. Salespeople with the style, strategy and systems to do well in this quadrant can sell in any quadrant. This sales professional can use questioning as a tool to guide a prospect to the solution, and the prospect will think he thought of it himself.
Understanding these simple distinctions gives you the edge, when hiring someone, to explore job fit. Someone with a commodity mindset (bottom left) could present himself as a strategic professional (top right), so you must be equipped to get behind the candidate’s interview “mask.” Following are four common defects in the interview process.• Subjectivity: The hiring process is
missing objective measures. In this case,
the interviewer’s assessment is based on impressions rather than reason. measurement tools and assessments that use double blind input prevent the interviewee from gaming the process. Predictive Index and The Devine Group’s CoreTeam Tm ScoreCard are among the effective tools that are available.
• Emotional Attachment: Falling in love with a person because they are like you or not like you. a hiring manager may become “emotionally attached” and lose objectivity, a situation that sometimes happens because there is a desperate need to hire and fill the position. make time your friend when hiring and take it slowly; it exposes things otherwise not seen. • Weak interviewing: Lacking skills to
reveal the real person, not the person the interviewee wants to show. The manager or interviewer needs tools beyond “behavioral” questioning to determine if someone is telling the truth or not; a gut feeling that there is a problem is not sufficient if the interviewer does not have the questioning skill to test the candidate’s authenticity.
• Undefined job metrics and accountability: Proper sales structures needed to determine a candidate’s job fit are missing. If a salesperson is required to prospect two hours a day, what are the measurable outcomes expected of him during that time? What questions can you ask a candidate to see if he can produce that result? Then how can you be sure he can do it?
Our final article will explore interviewing and hiring strategies to select the best candidates.
Conquest Training Systems, Inc.
conquesttraining.com
Michael Toney, Ceo of Conquest Training Systems, drew from 20-plus years of education and experience in sales and sales training — including consulting with Trw, IBM, Allied Signal and other Fortune 50 corporations — to develop the dynamic program of leadership and consultative and strategic sales techniques.
BUILDInG The rIGhT sales team will propel a company to success; building it incorrectly will create mediocrity or, worse, send it to bankruptcy. It’s important to be aware, when building the sales team, of the different selling styles and how they fit — or don’t fit — your company’s product or service.
Business Types and Selling StylesEach quadrant represents different selling style and skills needed for the company. Determine which of these four quadrants characterizes your company’s product or service:
NOt Expensive
NON- critical
NOt Expensive
Critical
ExpensiveCritical
ExpensiveNON-
critical
series oN growiNg reVeNuese d u C a t i o n
“We must vieweducation as aninvestment, notan expense.”SHELLEY ESQUEVice President, Intel
The education we provide for Arizona’s children will determine
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education system that begins at birth and continues through career.
By investing time, talent and money to improve education today,
we better position Arizona for long-term success. In the end, we
all benefit. Education is everyone’s business. Make it your priority.
Visit ExpectMoreArizona.org.
38 i n b u s i n e s s m a g . c o mm a r c h 2012 Pho
tos:
BM
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Get Protected BuSINESS IS RuN on our computers. Safely protecting these machines has become vital to business. We are paralyzed when they are not functioning to our expectations, affecting speed and workability. To avoid the cascade of issues from viruses, spyware, worms, rootkits, keyloggers, trojans and adware, here are our picks for top-rated software programs for PCs.
AVG Anti-Virus 2012Rated reliable for removal of malware and solid protection of phishing and exploits, this anti-virus has a free version (for personal use) that’s rated better than most paid software options, plus paid options for securing emails, downloads and more. Full version $54.99 AVG Technologies avg.com
Norton AntiVirus 2012This software was a best pick by PC Magazine, which tested its malware blocking and removal and its ability to keep systems clean. New for 2012 are affordability and changes that make the program easier to use. $39.95Norton by Symantec
norton.com
Webroot SecureAnywhere AntiVirusLatest version has a new approach that makes scanning faster and reliability probable. The software is great at cleaning up malware-infested systems. Scoring perfect scores in most tests, this may be a perfect anti-virus product. $39.95 Webroot webroot.com
Crossing Over: The BMW X6 M ExcelsmeeTInG The rOaD with this muscle crossover brings the SUV experience and the BmW european sports car styling together. The BmW x6 m series is a slick, all-occasion vehicle that makes for a unique option for the businessperson who doubles as the carpooler. Calling it a Sports activity Vehicle, BmW gives it the styling of a four-door cabin with a hatchback that provides a spacious rear area meant to be convenient to load and unload.
Getting there will be quick with the V8 4.4-liter twin-turbocharged DOhC engine pulling a full 555 horsepower at 6,000 rpm. Getting off the line will impress with 500 ft-lb of torque meant to move you. The xDrive all-wheel-drive system is amped up with stiffer suspension that performs well, making the sporty seats a necessity. Braking is quick, with a clocked stop from 60 mph in 106 feet. This is an all-time best for an SUV crossover.
The interior is what one can expect from BmW, with sporty dual-toned leather sport seats. In 2012, an iPod/USB port, heated front seats and auto-dimming mirrors come standard. new, easier-to-use navigation and electronic controls are mounted dead center on the dash and managed with touch-screen technology or the “mouse” in the center console. Front and rear spacing allows for comfort and roominess. Built-in Bluetooth telecommunication technology is standard and works better than any system we’ve seen, with convenience steering-wheel controls and well-defined sound. new for 2012, smart BmW software integrates navigation, telephonics
and the entertainment system well. With limited production of this “hulky”
crossover, the BmW x6 m series may be a rarity on the road, but it is a sports car enthusiast’s dream SUV that will not disappoint.
BMW bmwusa.com
we Value what we owNa s s e t s by Mike Hunter
BMW X6 MCity MPG . . . . . . . . . . . . . . . . . . . . . . . . . . 12Hwy MPG . . . . . . . . . . . . . . . . . . . . . . . . . . 170-60 MPH . . . . . . . . . . . . . . . . . . . . 4.0 secTransmission . . . . 6-speed automaticMSRP . . . . . . . . . . . . . . . . . . . . . . . $90,300
Caffe Boa
39i n b u s i n e s s m a g . c o m m a r c h 2012 Pho
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Cas
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Am
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A Fine American Eatery in Cask 63The CULmInaTIOn OF two veteran Valley restaurateurs’ efforts, Cask 63 recently opened to acclaim in Scottsdale. Co-owners Brian Feirstein, executive chef, and Jerry Tingle, general manager, team up to provide what Tingle describes as “a warm, comfortable neighborhood restaurant environment paired with superior service, extraordinary cuisine and great value.”
Cask 63 american eatery & Wine Bar is a perfect spot to end the day and take on a flight of wine. The room is sophisticated, with half-moon booths and tables to compliment them, creating an effect reminiscent of a 1930s hollywood hot spot. With modern hints here and there, smart service and a tasteful menu, this is a safe bet to take that biggest of clients. however, the wine list and décor are mere embellishments to the fare, and lunch is something not to be missed.
Soups and salads may start as options, but true foodies will graduate to the rainbow Trout, the Brisket Burger or the Tagliatelle. Salads are traditional in name only. The Baby Iceberg “Wedge” is updated for today’s tastes with heirloom tomatoes and neuske’s Bacon dressed with a Shaft Blue Cheese Vinaigrette not to forget. From the Warm Brie platter to the light and flavorful Cask 63 Caesar, all choices are prepared perfectly and delivered tableside with confidence. add roasted chicken, grilled shrimp, crisp calamari or grilled Scottish salmon to any salad.
Chef Feirstein’s creations will perk up that lunchtime meal, whether it is a special occasion or a meaningful meeting of the minds. his use of local and regional ingredients from high-quality purveyors has led to many fresh and inventive dishes.
Cask 63 American Eatery & Wine Bar
8877 N. Scottsdale Road, Scottsdale
(480) 922-5666
cask63.com
Midday Hot SpotsTHESE VALLEY HOT spots may be worth becoming a regular at for lunch. They are hip, have great food, and will impress that client. These hot spots include easy parking (or valet), easy-to-get seating (especially for the known regular) and menus that are perfect for large or small groups.
CAFFE BOATempeQuaint and charming, almost reminiscent of Melrose Avenue in Los Angeles, this place is frequented by creative businesspeople and those who know great food. It offers a selection of fresh-made pastas, antipasti and paninis. Artisan cheeses can be chosen a la carte or for the table.398 S. Mill Ave., Tempe(480) 968-9112 • cafeboa.com
POSTINO ARCADIAPhoenixValet makes this otherwise very busy hot spot an easy place to slip into for that last-minute lunch meeting. There’s patio dining among the bamboos or inside seating among the many wine bottles available for purchase. The food is simple yet very satisfying, from the cheese board to the NYC Grilled Cheese sandwich. Enjoy paninis, salads, soups and a choice of four bruschettas from the more than ten options.3939 E. Campbell Ave., Phoenix(602) 852-3939 • postinowinecafe.com
ST. FRANCISPhoenixAt this establishment specializing in wood-fired cuisine, lunch-goers will love the many choices, from the pizzas to wood-roasted vegetables. Flatbreads, salads, sandwiches and some house specialties are always popping up. And the desserts — not to be missed — are known to keep people coming back for more. Crowded, yes — but it is a Central Phoenix atmosphere with a lively ambience that will energize any meeting. 111 E. Camelback Rd., Phoenix(602) 200-8111stfrancisaz.com
Meals that Matter p o w e r l u n C hby Mike Hunter
NAWBO NEWSnawbophx.org 1
This issue
President’s MessageSpringtime in Arizona is finally here. This is the time to take advantage of not only spring cleaning the house, but also your business. That’s right, double check your budget and make sure you’ve cut or added to support your year’s planning activities. Also make sure you’ve got a spring in your sales delivery too! Changing
the months of March and April. If you join during this drive you will receive $25 off of your annual membership. We also are sponsoring prizes for the recruiters and also the new members that join during this time. If you want to learn more about NAWBO please
feel free to attend one of our welcome meetings that are always at 10 am on the 2nd Wednesday of every month right before our monthly educational meetings. Looking forward to seeing you soon and thanks again for the opportunity! Now go out and enjoy our fabulous weather!
Kindest Regards,
Kristine KasselNAWBO Phoenix Chapter President 2011-2012
it up a little will be refreshing to not only your team, but also your prospective clients.
Here at NAWBO Phoenix we have also made some great changes this year, so please come check us out at one of our upcoming events. We have a new Association Management Team, SOS Association Management Solutions, as of January 2012. Our new administrative contact is Suzanne Lanctot and she can be reached at [email protected] or at 480-289-5768. Their firm is bringing several new ideas to NAWBO Phoenix and we look forward to a long relationship with their team. Also we are currently in the process of building a new leadership team for the 2012-2013 year. This always is great for an Association as getting involved really helps keep members long term. Please reach out to myself or the President Elect Lynda Bishop if you are interested in joining any committees.
This is also the time of year that we are putting on a membership drive for
About NAWBONAWBO® prides itself on being a global beacon for influence, ingenuity and action and is uniquely positioned to provide incisive commentary on issues of importance to women business owners.
NAWBO Phoenix propels women entrepreneurs into economic, social and political spheres of power.
Visit one of our FREE Welcome Meetings - For All New and Prospective Members. They offer a casual, informational opportunity that both highlights the local and National benefits of NAWBO Membership. Plus, this is a great place to hear about the diversity in our benefits and determine if NAWBO is a fit for you and your business.
Please bring business cards too!
For more information, please visit NAWBOphx.org.
Phoenix Metropolitan Chapter of the National Association of Women Business Owners
7949 E. Acoma Dr. #207Scottsdale, Arizona [email protected]
Page 2• Invest in Your Business by Utilizing a
Professional Business Coach• When You Need to Hire a Coach
Page 4The Real Value of Advice
Page 7How to Boost Your Business without Busting Your Budget
and more...
Kristine KasselPresident, NAWBO Phoenix
Suzanne Lanctot
Spring 2012 • nawbophx.org
Celebrating more than 25 years of serving the women business owners of Phoenix
NAWBO NEWS2
When You Need to Hire a CoachBy Lynda Bishop, MPC, CEC
Asking for help is often one of the hardest things a business owner does, and yet it is something that can make the difference between dreaming
about the success of their business and actually having the success they dream of. A business coach is not a therapist or a consultant, they are a skilled, professional confidant completely focused on your success and can give you that extra enthusiasm and push you may need.
Many people go into business because they have an idea or a skill that they wish to dedicate their professional lives to. They
know how to do something better than anyone else and want to share that with the world. They have a gift. The tough part is that having a gift does not mean that the gift holder has everything it takes to actually run a successful business. Business owners know how difficult it can be to wear all of the hats required and few people are good at all of the roles required. There are few great marketing expert-accountant-administrative-customer service-problem-solving-engineer-visionaries out there. Even if there were, how would they know which piece to put first and when? Just thinking about doing all that it takes to run a business without the right help can land you right into the land of overwhelm.
So, when is the right time to hire a coach? Ideally, the right time to hire is at the onset of starting a business. There are coaches available who specialize in organizing new start-up businesses and helping them to build on a solid foundation built for success. Similar to getting pre-marital counseling, a business-startup coach can help you identify challenges before they happen and help you to make a clear plan with fewer surprises along the way.
What if you already are in business, when do you hire a coach? There is no easy answer that fits every business owner, but here are five signs that might indicate that hiring a good business coach might be your best move (any one of them is reason enough):
Lynda Bishop
NAWBO NEWSnawbophx.org 3
Invest in Your Business by Utilizing a Professional Business Coach
By Kristi Trimmer
• You are losing your enthusiasm for being in business (loss of passion)• You are not making enough money, or your business has stalled • You are working as many hours as you can, want to expand your business, but are not clear on exactly how to proceed• You are full of ideas but need help with taking action or following through• You have gone as far as you know how to go, but are not satisfied and want more (you can’t see your own blind spots, a coach can help you find them).
Wishing you success!
Lynda Bishop, MPC, CECPresident, Summit Alliance Solutions, LLCwww.summitalliancesolutions.com Years as a NAWBO member: 3Years in business: 7
Kristi TrimmerOrange Dragonfly Mediawww.OrangeDragonfly.comYears as a NAWBO member: 1Years in business: 2
The Social Media industry is changing the landscape of business at warp speed. Keeping up with those changes and focusing a business strategy on
ever evolving social platforms can be difficult for the small business owner. When I started Orange Dragonfly Media, I knew the only way to grow it into a profitable marketing firm was to enlist the help of a Professional Business Coach. During the first year of having a business coach, I worked on my Business Plan, Strategic Partner Plan, and formed ways to creatively problem solve issues that come with opening a new business. I did all the homework the coach assigned and carefully laid down the groundwork for a successful budding firm.
My goal for 2012 is for my boutique marketing firm to really soar, and for that I would need to kick up my efforts up another notch. I invested time and money and met with my professional business coach, Lynda Bishop of Summit Alliance Solutions, for an intensive eight weeks.
Each week, I was held accountable to the tasks assigned. Everything from breaking through fears to solidifying subcontractor agreements, to clarifying product offerings, to a solid marketing plan, with a very specific action plan written on how to accomplish each task. Creating a sales forecast and a corresponding budget were the hardest for me. With the coach’s help, we went over each piece every week until it was one dynamic tool that I use to direct my business daily. Being crystal clear on specific goals and having my coach hold me accountable, allowed me to start off 2012 with a clear plan of action and the drive to accomplish each goal.
First quarter of 2012 has been like a rocket launched out of my business. I am up almost 400% from 2011 for the same time period. My phone hasn’t stopped ringing and I had to bring on additional staff! The increased business revenue I’ve seen is directly related to the plan of action my business coach helped me lay out. We continue to meet twice a month to stay on track.
The benefits of working with a business coach far outweigh the time and financial costs associated with the investment. It is truly an investment in you and your business! I could not imagine running a small business without having a trusted advisor to guide me through the crazy ride of small business ownership, and am grateful I have a trusted ally to celebrate my wins with!
Kristi Trimmer
NAWBO NEWS4
The Real Value of AdviceBy Julie A. Kern, CPA, CFP®
As a financial advisor, I have helped clients get out of debt, save for retirement, make better decisions about mortgages and car purchases, reduce their tax bills, and protect their assets and their loved ones from an
unexpected disaster. But the area in which I have had the largest impact has been in saving my clients from themselves. That’s right. More than the economy or tax rates or the stock market, your decisions about money play the biggest role in determining your level of financial success.
Think about the recent recession. When the stock market hit its low in March of 2009 and many people were moving their investments to cash, did you feel an urge to
do the same? Maybe you did change your investment strategy during that time. At the very least, you may have lost some sleep over it—worrying about what the impact would be on your future. Hopefully, you were working with a qualified financial advisor who “talked you off the ledge” and kept you from making changes at precisely the wrong time. Everyone understands the wisdom of buying low and selling high, yet our emotions prod us to do exactly the opposite in times of market lows.
Business owners face additional challenges in maintaining discipline when it comes to executing their financial plan. First, they are entrepreneurs and by nature enjoy the freedom of making decisions and being in control. This works against them when it comes to financial planning, where changing courses mid-stream can wreak havoc on the results. Decisions like deciding to sell off part
of your portfolio to invest in that great new company your buddy told you about on the golf course or rewarding yourself with that trip to Europe that you’ve always dreamed of—all the while justifying it as a one-time opportunity—will do more damage to your financial future than any recession ever could.
Secondly, business owners are busy people who enjoy their work but often don’t like doing paperwork or other boring tasks. Important details like bookkeeping, tax returns, cash flow analysis, and financial projections often fall by the wayside as seemingly more important projects take precedence. With that being the case, business owners have the most to gain by having a solid financial professional on their team, guiding them all along the way (and yes, saving them from themselves at times).
Our lives get busier every year and technology has created an environment where we are always connected to someone, talking about something, and multi-tasking with most of our waking hours. There simply isn’t time to do a good job with our own financial planning. We understand the value of hiring a professional to handle other duties in our busy lives like housecleaning, yard work, and tax preparation, so it only makes sense to have an expert guide us in our finances. If you aren’t currently working with a qualified financial advisor, let me save you from yourself and tell you to get one today!
Julie A. Kern, CPA, CFP®Bridge Financial Strategieswww.bridgefinancialstrategies.comYears as a NAWBO member: 2Years in business: 3 (10 in the industry)
Julie A. Kern
WEF is a 501(c)3 charitable organization that supports and inspires emerging women business owners within the greater Phoenix area who have a demonstrated business development need or who would benefit from specialized educational training and development opportunities.
To learn more or to make a donation visit www.WEFPHX.org
The Women’s Enterprise Foundation
NAWBO NEWSnawbophx.org 5
NAWBO Board of DirectorsExecutive CommitteePresident
Kristine Kassel Benefits by Design
President-Elect (Bylaws Chair)Lynda Bishop Summit Alliance Solutions, LLC
SecretaryMarnee Weber The Caregiving Coach
Finance Director Barbara Appenzeller Appenzeller & Associate, CPAs, P.C
Immediate Past President (Past President Chair)
Cindy Hynes Hynes Benefits Consulting, LLC
Director of Administration - NAWBO Office
Suzanne Lanctot SOS-Association Management Solutions
Saved from MyselfBy Doug Behm, Director of Technical Architecture at American Express
A critical component of reaching any goal in life is to have a plan. A good financial planner spends time with a client to understand their unique situation and goals then crafts a strategy to reach their goals.
Like a lot of people, I figured financial planning was just about managing your investments but it turns out to be a much more comprehensive engagement. My planner Julie Kern, of Bridge Financial Strategies, optimized my portfolio to minimize tax expenses, provided tax planning advice and guidance on my insurance coverage and estate planning needs.
In addition, Julie provides a layer of insulation by protecting me from reactive investment decisions during times of extreme market volatility. You hire a mechanic to fix your car and a roofer to fix a leaking roof, why wouldn’t you hire a trained professional to manage your largest asset?
Board of DirectorsDirector of Communications
Shawn Vallee Think Fresh Advertising
Director of Corporate & Economic Development
Amy Bruske Kolbe Corp
Director of Marketing ServicesNancy Sanders Three Dog Marketing
Director of Membership Services Peggy Ridgley European Touch Interiors
Director of Media Relations Lisa Bhella INBOX2OUTBOX, LLC
Director of Programs Susan Ratliff Susan Ratliff Presents Inc.
Director of Public PolicyGinger Lamb Arizona Capitol Times
Ambassador Chair Cheryl Skummer Meridian Payment Systems
Awards ChairMarnee Weber The Caregiving Coach
Community Alliances/Diversity ChairShelly Winson True Choice Benefits LLC
Community Service Chair (ex-officio)
Ginny McMinn McMinnHR
Honorary Advisory Council/ Past Presidents Council Chair (ex-officio)
Robin Orchard Orchard Medical Consulting
Mentor Program ChairPamela Smith NUMBERS etc
Neighborhood NAWBOs ChairConnie Zimmerlich ClickChick Photography
NAWBO University ChairDorothy Wolden Creative Intuition
Membership Retention ChairColleen O’Shaughnessy Met Life
Social Media ChairLisa Bhella INBOX2OUTBOX, LLC
Women’s Enterprise Foundation (ex-officio)
Jackie Wzsalek Despins Printing & Graphics
A R I Z O N A ’ S P R I V A T E U N I V E R S I T Y S I N C E 1 9 4 9
Grand Canyon University is regionally accredited by the Higher Learning Commission of the Nor th Central Association of Colleges and Schools. (800-621-7440; ht tp://www.ncahlc.org/ ).
Get started today! 855.287.0174 | www.gcu.edu/inbusiness
Ken Blanchard College of Business | College of Education | College of Nursing | College of Arts & Sciences | College of Fine Arts & Production
Campus • Evening • Online
NAWBO NEWS6
Three Signs You Need Marketing SupportBy Nancy Sanders
Women business owners can do it all: network and build solid relationships; generate revenue by demonstrating our value and expertise; and grow the business … to
a point. As other advisors have shared in this issue, business owners need to recognize when to get help. In no other area is this as critical as in marketing and business development. But many times we don’t know when we need to ask for help. I’ve listed three signs to help determine when it’s time to meet with a marketing professional.
You are overwhelmed with work.Few of us have enough staff or time to
complete everything we want. Many marketing firms offer a variety of services from creating monthly newsletters to a fully integrated strategic marketing campaign. You can select how much
time (and money) you want to invest, freeing you up to focus on your strengths.
You don’t know what you don’t know.Perhaps you’ve made an investment in
a marketing tool and have some systems established. But you have questions. “How do we track ROI from our efforts?” “Why are “open rates” dropping and prospects aren’t responding to our offers?” Maybe you just need a coach to come in and provide some training, answer specific questions and give you a fresh perspective. An investment of a few hundred dollars might enable you to generate tens of thousands of dollars in new revenue.
You want to generate more revenue.Business owners frequently fall into the “go
get the business, service the business and then get more business” treadmill. Wouldn’t it be great to have a steady flow of new business coming in? A marketing firm can show you a
way to market more effectively, consistently and professionally, enabling you to focus on what you do best—running your business.
Whether you are in the process of expanding your business or just want to be more effective, talk with a marketing consultant and watch that light bulb over your head begin to glow with new ways to embrace marketing and improve your revenue.
Nancy Sanders, Three Dog MarketingYears as a NAWBO member: 6Years in business: 1+
Nancy Sanders
NAWBO NEWSnawbophx.org 7
Value of ASBABy Kristine Kassel, NAWBO President and ASBA Past-Chair
Many of you probably are not aware that NAWBO Phoenix and ASBA have an Alliance Partner relationship. NAWBO members receive a discount on the ASBA membership fee. This is a great relationship for us as ASBA offers several great programs that our members can now take advantage of. Some of those programs are very educational and also provide personal coaching. They are currently offering a Business Development Series and you as a business owner can select the different classes that apply specifically to you. They also offer one-on-one business analysis which is completely free to their members. And of course you can’t forget the original Fast and Curious Speed Networking. Bring your 30 second commercial and be prepared to say it over and over as well as the opportunity to meet several business owners at the same time.
ASBA also offers several affinity programs that provide discounts to help small business owners cut costs. This is because they have the buying power of a larger organization because of their membership size. Some of those programs include a special program with Staples for office supplies, credit card processing fees at super low rates, Human Resources and Payroll processing and of course many insurance programs such as Delta Dental, VSP, UNUM and CIGNA.
The other area that ASBA is helping out small businesses today is with advocacy. They are helping business owners by keeping up on all the bills and legislative activities going on within our state and nationally. They have a full-time lobbyist and an active public policy committee. It would be worth it to check out what ASBA is offering today by visiting their website at www.asba.com.
How to Boost Your Business without Busting Your Budget
By Shawn Vallee
As a business owner with a background in creativity, I needed advice on creating business systems. What I was happy to discover was that there are many low and no cost solutions when looking for business advisors.
The Arizona Small Business Development Center (AZSBDC) provides no-fee consulting services (the organization is funded by the Small Business Administration), is a
hub of connections and offers a wealth of business knowledge. You’ll be matched with an advisor who best fits your business needs. The advisors may also suggest business classes and workshops that will lay the foundation for many of your business systems.
NAWBO’s Mentoring Program is hosted by the AZSBDC and there is no charge to NAWBO members. The Women’s Enterprise Foundation works closely with NAWBO to provide emerging women business owners grants and scholarships to support participation in NAWBO along with other business needs.
SCORE matched me with a working entrepreneur; Chuck helped identify business prospects’ expectations of our company. Gaining objectivity showed us what we needed to focus on.
Fresh Start provides classes for start-ups and women business owners. I pursued Lynn after seeing her present at Fresh Start. I asked if she would consider taking me on as a mentee. We discussed expectations and she’s been a valued advisor ever since.
Lynn also dedicates some of her time at JumpStartBiz at Meridian Bank in Fountain Hills. They open their doors this February to entrepreneurs—with business space and free advice.
My advisors and mentors have each uniquely helped me improve my business. The day will come that I will share what I’ve learned. It will be my opportunity to give back what so many of my advisors have given me. That’s the true meaning of priceless.
Shawn Vallee, ValleeThinkFresh.comYears as a NAWBO member: 1Years in business: 6
Kristine Kassel, NAWBO President and ASBA Past-ChairNAWBO member 10 yearsOwner of Benefits by Design for 15 years
Shawn Vallee
NAWBO NEWS8
Get social with NAWBO PhoenixIt’s a great way to stay informed on everything NAWBO Phoenix and expand your online network. And don’t forget once you’re there to make a recommendation to let everyone else know how great it is to be a NAWBO Phoenix Member.
NAWBO PHOENIX Corporate PartnersPresidential Corporate PartnersSalt River ProjectState Farm Insurance
Strategic Corporate PartnerAlliance BankNational Bank of Arizona
Executive Corporate PartnersBenefits By DesignKolbe CorpSnell and WilmerSouthwest GasThe New WellWal-Mart
Presidential Media PartnersKFNX News-Talk RadioMedia88
Strategic Media PartnersArizona Capitol TimesCreative IntuitionNetworking Phoenix.com
Executive Media PartnerCITYSunTimesDespins PrintingEasel PhotographyIn Business Magazine Money Radio 1510 AM
Business Corporate PartnersAPSBenjamin Franklin Plumbing Border States ElectricClean N FreshOrchard Medical ConsultingPaychex Price KongThe Car SourceWells Fargo
Every journey starts with a single step! Whether it’s a 5K run, a successful business or a scholarship application for a NAWBO membership, the journey is a little easier and a lot more fun with a little help from our friends.
Women’s Enterprise Foundation (WEF) raised some money and had a little fun with the Women in Business 5K Fun Run/Walk at Tempe Kiwanis Park on February 5. Men, women, children and dogs enjoyed a crisp morning stretching, walking, running and helping women succeed.
Along with a little help from our friends at Appenzeller & Associate CPAs, Bridge Financial Strategies, Benefits by Design, Chi Running/Walking, Despins Printing and Graphics, Orchard Medical Consulting, Price Kong CPAs, The New Well Fitness and Wellness Centers,
Three Dog Marketing and Women in Banking, WEF succeeded in raising even more money for women entrepeneurs.
The monies raised will fund scholarships for a year’s membership in NAWBO, including luncheon fees and mentoring opportunities. Women in business for at least one year are eligible. Applications and a business plan template are available at www.wefphx.org. Applications are due February 28th, 2012.
Grants for educational opportunities will also be available later this year for NAWBO members looking to expand their businesses. Follow us on Facebook for more information on events and opportunities. Contact Jackie Wszalek at 602-810-4005 [email protected] for more information.
WEF 5K Fun for Scholarships!By Jackie Wszalek
49i n b u s i n e s s m a g . c o m m a r c h 2012
Al-Dabbagh, Amr, His Excellency Mr. , 12 Anderes, Tom, 22Babcock, Elaine, 22Barrett, Craig R., 9Behm, Doug, 45Bishop, Lynda, 41, 43Broome, Barry, 22Bruhnke, Doug, 10Burkhart, Patrick, 22Churchard, Karen, 12Drucker, Peter, 22Duhigg, Charles, 29
American Express Open, 18American Express, 45Appenzeller & Associate CPAs, 48Arizona Board of Regents, 22Arizona Centennial 2012 Foundation, 12Arizona Chamber of
Commerce & Industry, 32Arizona Diamondbacks, 35Arizona Energy Workforce Consortium, 22Arizona Foundation for
Medical Care, 7Arizona Hispanic
Chamber of Commerce, 32Arizona Public Service, 22Arizona Small Business
Association, 31, 32, 33, 47Arizona Small
Business Development Center, 47Arizona State University, 13, 22Arizona Technology Council, 32Association for
Corporate Growth — Arizona, 32Benefits By Design, 48Benjamin Franklin Plumbing, 18Biltmore Bank of Arizona, The, 51Blacktie Arizona, 27Board of Visitors, The, 30Boeing Company, The, 22Bridge Financial Strategies, 48BrightStar Care, 18Caffe Boa, 39Cask 63, 39Cassidy Turley BRE Commercial, 4Center for Energy
Workforce Development, 22Center for Health Information and
Research, 22Center for Services Leadership, 13Central Phoenix Women, 32Chandler Chamber of Commerce, 32Chandler-Gilbert Community College, 22Chi Running/Walking, 48City of Phoenix, 10Conquest Training Systems, Inc., 4, 36Despins Printing and Graphics, 48DocuTech Corporation, 12Economic Club of Phoenix, 31, 32Elements Therapeutic Massage, 18Estrella Mountain Community College, 22Expect More Arizona, 37Fitness Together Holdings, Inc., 18
Index by Name
Index by Company
Eberenz, Jack, 18Feirstein, Brian, 39 Gerretzen, Fred, 20Grady, Robert, 12Gudeman, Betty, 22Heasley, Kathy, 34Jenkins, Ty, 12Jennings, Sherman, 22Jervik, Jeff, 18Kassell, Kristine, 41, 47Kern, Julie A., 44Kruger, Elizabeth Rush, Ed.D., 50Lanctot, Suzanne, 41
Leonesio, John, 20LeRoy, Greg, 16Levine, Susan, 30Martin, Jeffrey A., 10Moorhead, Jim, 29Murray, Tom, 14 Naylor, Ryan, 12 Panas, Jerold, 28Pareto Vilfredo, 50Pearson, Bryan, 29 Sanders, Nancy, 46Sheely, Mary Ann, 30Sobel, Andrew, 28
Stanfield, Linda, 18Stanton, Greg, Mayor, 10Sun, Shelly, 18Sundberg, Lori, 22Tate, Ryan, 29Tingle, Jerry, 39Toney, Mike, 36Trimmer, Kristi, 43Vallee, Shawn, 47Wszalek, Jackie, 48Yaffe, Paul, 12
Franchise Integration, 18Fresh Start, 47Getting AHEAD, 22Good Jobs First, 16Governor’s Council on
Workforce Policy, 22Grand Canyon University, 45Greater Phoenix
Chamber of Commerce, 32Greater Phoenix Economic Council, 22Growth Nation, 10Heart & Mind Network, 27Heasley & Partners, Inc., 34Holmes Murphy, 8Hospice of the Valley, 30Intel Corporation, 9International Franchise Association, 18Jerold Panas, Linzy & Partners, 28Joint, The, 20JumpStartBiz, 47Linda Land, 8LocalWork.com, 12Maricopa Community Colleges, 22Maricopa County
Human Services Dept., 22Maricopa Workforce
Connections, 11, 22Massage Envy, 20Mayo Clinic, 52Meridian Bank, 47Microsoft Store, 33National Association of Women
Business Owners, 32, 41, 46National Bank of Arizona, 2National Manufacturing Institute, 22New Well Fitness and
Wellness Centers, The, 48’Women in Banking, 48Orange Dragonfly Media, 43Orchard Medical Consulting, 48Palo Verde Nuclear
Generating Station, 22Peoria Chamber of Commerce, 32Phoenix Convention Center, 40Postino Arcadia, 39Precision Door Service, 18Price Kong CPAs, 48Q, the Sports Club, 20Realty Executives International, 18Reliable Background Screening, 15Salt River Project, 3Scandinavian Health Spas, 20
SCORE, 47Scottsdale Area
Chamber of Commerce, 32Scottsdale Healthcare, 21Small Business Administration, 47SOS Association
Management Solutions, 41Southwest Gas Corporation, 22St. Francis, 39Stoney-Wilson
Business Consulting, LLC, 15Strategic Power, 50Summit Alliance Solutions, LLC, 43Surprise Regional
Chamber of Commerce, 33
Tempe Chamber of Commerce, 33Three Dog Marketing, 46, 48Thunderbird School of
Global Management, 12Villa La Paws, 14W. P. Carey School of Business, 13Wells Fargo Bank, 17West Valley Women, 33Women of Scottsdale, 33Women Presidents Organization, 18Women’s Enterprise
Foundation, 44, 47, 48Yulex Corporation, 10
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i n d e x
50 i n b u s i n e s s m a g . c o mm a r c h 2012
Schools have taught you to treat your customers equally, but your customers do not treat your business equally. your top customers highly value your business, so value their business. according to the 80/20 rule, as noted above, your top customers will generate 16 times more profits than your less profitable customers. This means that when your business implements a top market strategy, you can expect its profits from customers to quadruple.
Strategic Power segmentmarket.com
elizabeth rush kruger, ed.D., head of marketing consultancy Strategic Power, writes, speaks and consults about the 80/20 rule. her book, Top Market Strategy: Applying the 80/20 Rule, released by Business expert Press, uses a case example to demonstrate how use the 80/20 rule to increase profit from customers.
nO CUSTOmer WanTS to hear that you have other customers, but you do. What’s more, no customer wants to hear that you have more important customers, but that’s also true. If your business treats all its customers exactly the same way, you wind up sacrificing a lot of profit in the process.
Virtually every business seeks to increase its profit, but few business leaders realize that a universal law governs profit from customers. The law in play here is called Pareto’s Principle and it’s named for a well-respected Italian economist. Vilfredo Pareto observed in 1896 that 20 percent of the people consistently own 80 percent of the wealth. he also noticed that 20 percent of the pea pods in his garden contained 80 percent of the peas. Fast forward a century and recent scientific research confirms that Pareto was right — Pareto’s Principle does accurately predict results in all types of cases.
many businesses have used the 80/20 rule to improve quality, productivity, time management and sales, but this law also applies to profits. according to the 80/20 rule, you can expect the most profitable 20 percent of your customers to generate 80 percent of your profits. meanwhile, the bottom 20 percent of your customers will generate only 20 percent of your profit. On average, customers in the top 20 percent generate 16 times more profit than customers in the bottom 80 percent of your business.
The 80/20 rule can increase the profits of any business by distinguishing top customers, delighting them with a top market strategy, and discouraging less profitable customers. For example, if you are a distributor, you can quickly enact these three steps:
Distinguish — Distinguish the most profitable 20 percent of your customers from your other customers. allocate one day a week to serving them with a top market strategy. expect these customers to generate 80 percent of your usual weekly profits in one-fifth of the time.
Delight — Identify prospects just like them and target them on the other four days of the work week. Use your top market strategy to convert these top prospects into new
Are You Working Harder for Less Profit?You can profit from the 80/20 Rule by Elizabeth Rush Kruger, Ed.D.
customers. reward these loyal, heavy users with loyalty programs. Predict that these new customers will be highly profitable.
Discourage — allocate neither time nor other resources to serving customers in the bottom 80 percent. realize that they cause more problems than they’re worth. encourage less profitable customers to patronize a competitor by implementing stratified policies, and replace them with more profitable customers. expect your profits from customers to quadruple when all of your customers are highly profitable.
For example, an insurance company I worked with personally services the top 20 percent of its customers but automates services to its other customers. as a result, its representatives have the time to prospect for highly profitable new customers. This top market strategy is a classic win-win game plan: Its profits have magnified and its top customers are delighted with the company.
your win-win game plan is to customize a top market strategy for your highly profitable customers. Provide them exactly what they desire for an expected price and at a convenient location. Target them and similar prospects with your promotional campaign and appeal to their motivations for buying from your business.
a caNdid foruMr o u n d t a b l e
COrrECtION: Our roundtable article in the Jan. 2012 issue stated that e-Verify was an optional program employers could use to check the immigration status of potential employees. However, Arizona law (A.r.S. §23-214) requires all Arizona employers to use e-Verify to confirm employment eligibility of employees.
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I’m a three-time national rodeo champion.One day after training I had a seizure.Tests showed I had a rare brain tumor, andsurgery to remove it could have left me paralyzed. Today, I’m back in the saddle.My answer was Mayo Clinic.
Raley Mae Radomske
Because of Mayo Clinic’s collaborative model of care, Raley was able to have diagnostic tests, surgery and rehabilitation in one place with a team that was focused on her recovery. Now, Raley is cancer-free and back in training. For years, people from all walks of life have come to Mayo for answers. Mayo is an in-network provider for millions of people. To schedule an appointment, visit mayoclinic.org/arizona or call 1-800-446-2279.