Ottawa Business Journal 20161010

Page 1

Total Building Maintenance Solution Provider

WWW.BMI-IND.COM 613-235-2126

Production mogul After growing Ross Video from a family firm into a global giant, David Ross has earned CEO of the Year honours > PAGE 3

October 10, 2016 Vol. 19, NO. 25

THE TENANT’S ADVANTAGE

613.688.7200

For daily business news visit obj.ca

Budding ambition? Co-founder of Beau’s brewery says firm isn’t ruling out a move into recreational cannabis once pot is legalized. > PAGES 4-5

Requiem for Nortel On 15th anniversary of massive job cuts at one-time tech colossus, ex-employees look back on the highs and lows. > PAGES 6-7

Sandwiches of fresh bread, local meat and homemade toppings are always on the menu at Etienne Cuerrier’s Hintonburg lunch spot. PHOTO BY MARK HOLLERON

Restaurateur’s recipe for success Passion, fresh food and sound business strategy are key ingredients at Meat Press Eatery owner Etienne Cuerrier shares his winning formula in OBJ’s six-page Small Business Week special section > PAGES 12-17

OFFICE CONDOS FOR SALE BUILD EQUITY - CALL TODAY!

Brittany Wilson*

(613) 780-1586 Michael Pyman*

(613) 567-8050 *Sales Representative


IT’S HERE!

Ottawa’s 2016 Buying Guide VIEW ONLINE AT bit.ly/2BOL2016 BUY ONLINE AT bit.ly/BUYBOL2016

Ottawa-Gatineau guide to corporate event planning NOW AVAILABLE AT ALL OTTAWA BUSINESS JOURNAL DISTRIBUTION OUTLETS OR ONLINE AT bit.ly/MITC2016

MEETING Ottawa-Gatineau’s guide to corporate event planning

in the Capital

A supplement to

April 25, 2016 • $5

Canada’s

BIG YEAR

WHAT EVENT PLANNERS NEED TO KNOW ABOUT THE NATION’S 150TH ANNIVERSARY

HR UPDATE camaraderie Your resource for professional and fresh insights.

THE HUMAN RESOURCE

PROFESSIONALS ASSOCIATION

OTTAWA CHAPTER PUBLICATION

HR

HR UPDATE

UPDATE

PREPARING YOUR KIDS FOR JOBS THAT DON’T EXIST YET STRATEGIES TO AVOID GETTING A HUMAN RIGHTS APPLICATION IMPROVING PRODUCTIVITY THROUGH YOGA

Your resource for professional camaraderie and fresh insights.

INTERVIEW WITH

Vandana Juneja Catalyst Senior Regional Director of

OTTAWA BUSINESS

JOURNAL

VOLUME 19 • ISSUE

14 • MAY 2016

THE HUMAN RESOURCE PROFESSIONALS ASSOCIATION OTTAWA CHAPTER PUBLICATION

HR UPDATE

HR

UPDATE

SPRING 2016 EDITION NOW AVAILABLE AT ALL OTTAWA BUSINESS JOURNAL DISTRIBUTION OUTLETS

PREPARING YOUR KIDS FOR JOBS THAT DON’T EXIST YET

MONDAY, OCTOBER 10, 2016

STRATEGIES TO AVOID GETTING A HUMAN RIGHTS APPLICATION

OBJ.CA

02

IMPROVING PRODUCTIVITY THROUGH YOGA

INTERVIEW WITH

Vandana Juneja Senior Regional Director of Catalyst

OTTAWA BUSINESS JOURNAL

VOLUME 19 • ISSUE 14 • MAY 2016

OR ONLINE AT bit.ly/HRUPDATE2016SPRING

obj.ca


BUSINESS AWARDS Ross Video’s David Ross named CEO of the Year Engineer-turned-executive has spearheaded local manufacturing firm’s growth from small family business to global powerhouse BY PETER KOVESSY pkovessy@obj.ca

T

“It’s not easy in technology to have a company survive as an independent business for 42 years … In technology it’s often grow or die, and keeping the pace up has been a big challenge.” — ROSS VIDEO CEO DAVID ROSS, THE OTTAWA BUSINESS JOURNALOTTAWA CHAMBER OF COMMERCE CEO OF THE YEAR

hree years ago, when Ross Video purchased a Florida-based sports production firm, CEO David Ross made a bold prediction. “We’re just getting started,” he told OBJ in 2013. It was an ambitious outlook for a 39-year-old family business that had already snapped up seven other companies in four years. But true to his word, Mr. Ross was just warming up. The company, which designs and manufactures equipment for live events and video productions, subsequently continued its acquisition streak, played a central role in the production of some of the most-watched live broadcasts on the planet such as the Super Bowl and even won an Emmy. Along the way, Ross Video hired dozens of new staff members, growing its headcount to some 640 employees, and maintained an average growth rate of 18 per cent. Its revenues are now approaching the $200-million mark. In honour of his business achievements and community involvement, Mr. Ross has been named the Ottawa Business JournalOttawa Chamber of Commerce 2016 CEO of the Year and will be honoured at the Best Ottawa Business Awards (BOBs) gala at the Westin Ottawa on Thursday, Nov. 10.

“It’s not easy in technology to have a company survive as an independent business for 42 years,” said Mr. Ross, who was named the firm’s chief executive in 2006. “The accomplishments of Ross Video wouldn’t have happened without a fantastic senior management team over many years, the entire management team that kept the wheels on as we continually evolved and grew, and employees getting the work done and continually going above and beyond.” The CEO of the Year award is a joint initiative of the Ottawa Business Journal and the Ottawa Chamber of Commerce. Past recipients include Ottawa Sports and Entertainment Group CEO Bernie Ashe, Minto’s Roger Greenberg, Halogen Software’s Paul Loucks and Ron Zambonini of Cognos. “We are thrilled to recognize and honour David Ross for his vision, passion and leadership,” said Ian Faris, president and CEO of the Ottawa Chamber of Commerce. “He has elevated Ross Video to new heights, not only expanding across the globe but also revolutionizing the industry with new inventions and innovations. He’s a remarkable global ambassador for Ottawa.” “Ross Video is one of those remarkably successful companies in Ottawa that somehow are not a household name in the business community,” OBJ publisher Michael Curran said. “Believe me, they should be. And this award should help to bring them even more into the spotlight.” Mr. Ross started to dabble in programming in the early days of personal computers in 1975 at the age of nine. While

in high school, he won three national engineering competitions involving real-time programming and computer graphics. He worked at Ross Video during university while completing his computer engineering degree and eventually joined the firm full-time in 1991. Staying current with the rapidly evolving television and broadcast industry has been one of the keys to the company’s success. NEW BUSINESS MODELS “We’ve seen transitions from analog TV, to digital, to HD, and now 4K and other new technologies,” Mr. Ross said. “Related to that, we’ve also had to add completely new types of expertise and business models like robotics, web, cloud, services, consulting and even becoming a producer of TV shows. “In technology it’s often grow or die, and keeping the pace up has been a big challenge.” Outside the office, Ross Video supports several charities and food banks, including raising more than $100,000 for the United Way. Mr. Ross also sits on the board of Invest Ottawa, where he helps to promote the nation’s capital as a business destination. “The ecosystem of firms from consultants, banking, legal, accounting, and supply chain makes Ottawa hard to beat,” he said. The BOBs will also celebrate the city’s top business performers in more than a half-dozen categories and recognize the Lifetime Achievement Award recipient.

MONDAY, OCTOBER 10, 2016

• Masonry Repairs • Waterproofing • Caulking • Coatings • Concrete Repairs

RON JONAS

03 3196663

OBJ.CA

3717 K1C 0Z7 1T1 3717 St. St. Joseph Joseph Blvd, Blvd, Orleans, Orleans, ON, ON, K4A Tel: 613-837-0111 613-837-0111 Fax: Tel: Fax: 613-837-6724 613-837-6724 www.jonasrestoration.com


RETAIL Beau’s turning over a new leaf? Trailblazing Vankleek Hill microbrewery weighs pros and cons of expanding into cannabis BY PETER KOVESSY pkovessy@obj.ca

W

Beau’s co-founder and CEO Steve Beauchesne. PHOTO BY MARK HOLLERON

ith legislation to legalize marijuana expected in the spring, Eastern Ontario’s largest craft brewery is rolling around the idea of expanding into the recreational cannabis industry, its chief executive said recently. Beau’s CEO Steve Beauchesne made the remarks in response to an audience member’s question following a presentation to members of Ottawa’s business community on Oct. 5. “I don’t want to say categorically no and I don’t want to say categorically yes,” Mr. Beauchesne said during the CEO Talk event at Craft Beer Market. “If there is a way to do it in a way that’s responsible

and fun – because for us, if it’s not fun, we just don’t bother – then maybe.” He added that the company has spoken to officials from Tweed, a Smiths Falls marijuana producer that currently supplies pot to licensed medical patients but plans to “aggressively” pursue the recreational market once the plant is legalized. Mr. Beauchesne said Tweed is led by “awesome people” and said he personally favoured “freedom of choice.” However, he said he also had social responsibility concerns about the prospect of expanding into marijuana. “(I) don’t think Beau’s wants to be standing at the forefront going, ‘Hey, we’ve got a bunch of weed in our beer and now we can get you messed up both ways,’” he said.

How to deal with the canada revenue agency

See the difference Introducing our newest Partner

MONDAY, OCTOBER 10, 2016

KPMG is pleased to announce the appointment of Kevin Kolliniatis to Partner in our Ottawa office. With over 17 years of experience in providing audit and IT audit services, Kevin is exemplary in his commitment and passion to client service.

Read Perley-Robertson, Hill & McDougall’s top practical tips in dealing with the CRA here: www.techopia.ca/perley

Kevin is the Canadian co-lead for Data and Analytics in audit and also provides advisory data and analytics services to clients in various industries in order to assist clients in interpreting their data and the impact to their organization. Congratulations to Kevin on achieving this significant career milestone! For more information on how Kevin can help you, contact him at 613-212-3654 or kkolliniatis@kpmg.ca.

Kevin Kolliniatis Partner

OBJ.CA

04 © 2016 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 14439

Gregory Sanders is head of Tax Law Group at Perley-Robertson, Hill & McDougall. A graduate of Osgoode Hall Law School and a Chartered Professional Accountant, Gregory has almost 30 years in private client tax law. Businesses and individuals looking to enhance and preserve their net worth benefit from Gregory’s expertise in all key tax related areas: tax and estate planning, dealing with CRA, tax dispute resolution, Canada-US planning and international tax. Gregory also assists not-for profit entities and charities in ensuring their compliance with corporate and tax laws.


Enjoying Beau’s beer. PHOTO BY MARK HOLLERON

Beau’s is based in Vankleek Hill east of Ottawa and was started in 2006 by Mr. Beauchesne and his father, Tim. It’s grown to become the region’s largest craft brewery, according to OBJ’s Book of Lists. It turns out some five million litres annually, and sells its products in seven provinces as well as New York state, according to the company’s website. The company’s beer is brewed with organic ingredients and Beau’s itself is a certified B-Corp, a designation for firms that meet standards for social and environmental performance, accountability and transparency. “If we do the right things for the right reasons, growth will be the symptom,” Mr. Beauchesne, a past Forty Under 40 award recipient, said.

“If there is a way to do it in a way that’s responsible and fun – because for us, if it’s not fun, we just don’t bother – then maybe.” – BEAU’S CO-FOUNDER STEVE BEAUCHESNE, ON THE POSSIBILITY OF EXPANDING INTO THE RECREATIONAL CANNABIS INDUSTRY

Best Western Plus Ottawa Downtown Suites The surprising downtown Ottawa hotel you might have missed. 377 O’Connor Street, Ottawa, Ontario 1-800-465-7275

bestwesternottawa.com

MONDAY, OCTOBER 10, 2016

05 OBJ.CA

To help mark the company’s 10-year anniversary, Beau’s started to sell shares in the business to its employees earlier this year. The move is intended to allow the company to keep expanding while preserving its independence. Beau’s is the official beer partner of the Ottawa 2017 celebrations and, last month, said it was helping a Rwandan entrepreneur open a craft brewery in her home country. Josephine “Fina” Uwineza was in Ottawa Wednesday evening and said Rwanda has a favourable investment environment, particularly for businesses interested in producing goods within the African country.


TECHNOLOGY 1882

Nortel’s predecessor company, Bell Telephone Co. of Canada, starts by manufacturing telephone handsets.

1895

Bell spins off Northern Electric and Manufacturing Co., but retains most of its shares.

1964

Northern Electric becomes a wholly owned subsidiary of Bell Canada.

1977

Incorporates in Canada as Northern Electric Co. Ltd.

1998

Changes name to Nortel Networks.

2000

Stock peaks at a high of $124.50 in late July. Shares were worth just 39 cents before bankruptcy filing on Jan. 14, 2009.

2001

On Oct. 2, Nortel announces a major round of 19,500 layoffs while reporting a net quarterly loss of $3.6 billion. CFO Frank Dunn succeeds John Roth as CEO the following month.

2003

On Oct. 23, Nortel acknowledges past accounting errors and says it will restate results, mostly upward, back to 2000.

2004

Dunn fired along with CFO Douglas Beatty in April as Nortel says 2003 profit was about half what it previously reported. Former U.S. admiral Bill Owens becomes CEO.

Nortel ‘did not need to fall apart as it did’ With Nortel pensioners and ex-employees still fighting for a settlement, two former company executives look back 15 years after historic management shakeup and massive job cuts BY DAVID SALI david@obj.ca

F

ifteen years ago last week, fall brought a blast of chilly news through the halls of what was then Ottawa’s largest technology company. On Oct. 2, 2001, Nortel Networks announced it was chopping another 19,500 jobs from its global workforce in the wake of a whopping $3.6-billion quarterly loss. The cuts brought the number of layoffs at the once-dominant tech colossus to nearly 50,000, and with that bombshell came another announcement that raised more than a few eyebrows: CEO John Roth, who had said earlier that year he would retire, would be replaced by CFO Frank Dunn effective the following month. While conceding that Mr. Dunn knew the company “inside and out,” an editorial in the Oct. 8, 2001 issue of OBJ argued that many outsiders would question his appointment. “They will wonder aloud: isn’t Dunn part of the team that created this colossal mess?” the column read. “As CFO, Dunn was part of the executive team that didn’t bother talking to the treasurers at client

companies that couldn’t possibly pay for US$100-million orders.” Still, the editorial expressed guarded optimism, ending with the prediction that a “new focus, a tighter hold on purse strings should result in a stronger Nortel that will continue to play a large role in the global telecommunications market.” As we now know all too well, things didn’t turn out that way. Already drowning in red ink, Nortel continued to rack up billions in losses over the next decade and finally filed for bankruptcy protection in 2009. In June of that year, its shares – once worth more than $124 – were de-listed by the Toronto Stock Exchange. ASSETS SOLD OFF The engine of the Ottawa tech community at its peak, Nortel gradually faded into oblivion, parcelling out its assets and selling them off to competitors like Ciena and Ericsson. Its massive 370-acre former campus on Carling Avenue, which once housed half of Nortel’s 16,000 employees in the National Capital Region, is now property of the federal government and will soon be home to the Department of National Defence headquarters. Meanwhile, Nortel’s international bankruptcy case is

Ex-Nortel employee Brian Hurley. FILE PHOTO

still winding its way through the courts, with $11 billion in assets remaining to be divided up and 20,000 pensioners and exemployees waiting for a settlement. But on Oct. 2, 2001, no one knew what was in store for Nortel, including its thousands of workers in the Ottawa region. “There was a lot of concern, and hope that Frank Dunn would be the fellow to lead us forward and break through the challenges ahead of us,” recalls local entrepreneur Brian Hurley, who in 2001 was a project leader of Nortel’s carrier IP business. “I think that at the time, (we) were still very optimistic about the likely

MONDAY, OCTOBER 10, 2016

WELCH LLP PRESENTS

OBJ.CA

06

The

GRAND CASINO

for the Ottawa Regional Cancer Foundation Nov 9th 6-10pm at the Canadian War Museum

GET your tickets: thegrandcasino.ca

outcomes, including myself.” At that point, he adds, most people at the company still believed Nortel would recover. “That was one of things that was great about Nortel and BNR (Bell-Northern Research, Nortel’s predecessor). It had a lot of very committed people who’d been with the company for a long time. When the uncertainty set in later, you could tell it was causing a lot of stress to a lot of people.” Peter Becke, a former vice-president of business development at Nortel who had left the company earlier in 2001, says that although Mr. Dunn was “financially astute,” he was the wrong person to replace Mr. Roth. “He was not an inspirational leader,” says Mr. Becke, who now mentors young entrepreneurs and runs a private equity firm called Hello Ventures with former Shopify CEO Scott Lake. “Nortel had some amazing leaders, but every Nortel executive can remember who they were and what they did for the company. I would just say that Frank didn’t seem to be in that echelon of great leaders. It didn’t seem to me that was a positive, forward step. It didn’t seem to me that Frank was going to get the company back on track.”


“The fact that so many of those business units became profitable, valuable assets for our competitors to buy and invest in, suggests that we had options. They just didn’t materialize. Far lesser companies had a future. (Nortel) could have.” – PETER BECKE, FORMER NORTEL EXECUTIVE

2005

Owens is replaced by former Motorola executive Mike Zafirovski, the company’s CEO until 2009.

2007 2008 2009 In March, U.S. Securities In June, RCMP In January, Nortel OTTAWA’S ECONOMIC

OUTLOOK

and Exchange Commission files civil charges against four former executives of Nortel Networks, including ex-CEO Frank Dunn. Ontario Securities Commission alleges misconduct and negligence.

lays fraud charges against former Nortel CEO Frank Dunn and two other former executives.

files for court protection from its creditors. Nortel shares are delisted by the Toronto Stock Exchange in June.

He believes Nortel still had great “I don’t look to place blame,” he says. products and world-class employees and “I think everybody at the end of the day could have rebounded under the right was trying to do the best job they could. conditions. Any technology company, you place your “I would guess that with stronger bets, you make your decisions … and leadership at the board level, at the sometimes those decisions aren’t correct. executive level, OTTAWA’S the financial situation The outcome was not the outcome we all ECONOMIC could have been dealt with and the desired, but that’s what happened. I think future of the company may have been everybody was working with the best different,” Mr. Becke argues. intentions.” “It did not need to fall apart as it did. Both Mr. Becke and Mr. Hurley prefer The fact that so many of those business to focus on Nortel’s enduring legacy – the units became profitable, valuable assets legions of talented engineers and tech for our competitors to buy and invest in wizards who went on to launch dozens of suggests that we had options. They just successful startups in the Ottawa region, didn’t materialize. Far lesser companies many of which are still thriving today. had a future. (Nortel) could have.” “We really had an amazing human Mr. Hurley, who went on to found capability at Nortel,” Mr. Becke says. two technology companies of his own “Many of those characteristics have after being laid off in 2002, takes a more transformed into other companies and philosophical approach. other ventures. There was something

OUTLOOK

2011

Bankruptcy courts in Canada and the U.S. approve the sale of 6,000 patents held by Nortel for $4.5 billion US to a partnership of Microsoft, Apple, Research In Motion, Sony, EMC Corp. and Ericsson.

2012

The criminal trial against ex-CEO Frank Dunn, ex-CFO Douglas Beatty and ex-controller Michael Gollogly begins in Ontario Superior Court in January.

about that time, during the good years, that really grew you as a leader, grew you as a person.” BITTERSWEET MEMORIES Mr. Hurley shares many of the same feelings. “That camaraderie and the culture of Nortel and BNR still exists today amongst the people who worked there,” he says. “We all tend to help each other out.” Now CEO of a software company called Purple Forge, he says his memories of Nortel are bittersweet. “First and foremost, it’s pride – pride in the people, the technology, what we achieved as an organization and what we had the potential to achieve, and the challenges we overcame along the way,” says Mr. Hurley, whose attachment to the firm that employed him for 15 years still

2013

The three Nortel executives are acquitted in Ontario Superior Court of manipulating financial statements.

2016

Thousands of Nortel pensioners and former employees have until Dec. 31 to determine what to do when the company’s pension plan winds down.

endures: He chose the name Purple Forge partly as an homage to BNR, which had a purple logo. “The second (emotion) would be there’s a sadness that it came to an end. And there’s the sadness (about) the negative way it affected some of the people who were no longer with Nortel.” Mr. Becke’s connections to Nortel also run deep – his father and brothers all worked for the company at some point, and there is a hint of reverence in his voice when he reminisces about its heyday. “Back in those days that Nortel was growing, nothing was impossible,” he says. “There was nothing you couldn’t do. That created a world of achievement. You felt proud to be part of that. It wasn’t about arrogance – it was about pride. You were part of something really big.”

OTTAWA’S ECONOMIC

OUTLOO

This annual event will examine trends and opportunities in the city’s business sector and provide an insightful forecast about Ottawa’s economic future.

This event will include: • A Keynote address by Geoff

• Presentation by Douglas

Porter, CFA, Chief Economist & Managing Director, BMO Financial Group

• An important update from The Mayor of Ottawa

INDIVIDUAL TICKETS

Ottawa Chamber Members: $60 Non-Members: $75

Collins Barrow Ottawa LLP is pleased to congratulate three new graduates of the Common Final Examination (CFE): Nili Katz, Ryan MacDonald and Joseph Massaad. Nili and Ryan both specialize in assurance and accounting, while Joseph’s expertise is in tax services.

Register now at OttawaChamber.ca

Whether you’re a multi-million dollar enterprise, entrepreneur or emerging company, you can rely on Collins Barrow for objective, actionable advice.

MONDAY, OCTOBER 10, 2016

Shaw Centre – Trillium Ballroom 11:00 a.m. - 1:00 p.m.

CB Life is where careers take off

It takes a team of the best and brightest minds to deliver excellence, and these graduates have successfully completed one of the most challenging professional exams in the world.

Smith, President and CEO, EllisDon

Tuesday, November 29, 2016

Rising to the challenge

CB Life: Where talent meets opportunity

CORPORATE TABLE OF 10 Ottawa Chamber Members: $540 Non-Members: $675

07

POWERED BY: OTTAWA BUSINESS EVENTS

OBJ.CA

7090-CBO_Print-ad_Final.indd 1

2016-09-30 10:03 AM


COMMENTARY Great River Media 250 City Centre Ave., Suite 500 Ottawa, Ontario, K1R 6K7 obj.ca TELEPHONE Phone: 613-238-1818 Sales Fax: 613-248-4564 News Fax: No faxes, email editor@obj.ca PUBLISHER Michael Curran, 238-1818 ext. 228 publisher@obj.ca CHIEF MARKETING OFFICER Terry Tyo, 238-1818 ext. 268 terry@greatriver.ca EDITOR, PRINT CONTENT David Sali, 238-1818 ext. 269 david@greatriver.ca EDITOR, ONLINE CONTENT Peter Kovessy, 238-1818 ext. 251 pkovessy@obj.ca REPORTER Craig Lord, 238-1818 ext. 285 craig@techopia.ca COPY EDITOR Samantha Paquin ADVERTISING SALES General Inquiries, 238-1818 ext. 286 sales@obj.ca Wendy Baily, 238-1818 ext. 244 wbaily@obj.ca Carlo Lombard, 238-1818 ext. 230 carlo@obj.ca SPECIAL PROJECTS Nikki DesLauriers, 238-1818 ext. 240 nikki@obj.ca

What price performance? Tying compensation to hitting sales targets is a tried-and-true strategy. But sales consultant Colleen Francis says recent examples at Volkswagen, Wells Fargo and other workplaces show that putting those goals above all else can have devastating long-term costs

MONDAY, OCTOBER 10, 2016

W

OBJ.CA

08

ells Fargo was recently fined $185 million by federal regulators in the United States – the largest penalty ever imposed by the Consumer Financial Protection Bureau. This happened after allegations surfaced of widespread illegal sales practices in which Wells Fargo employees had opened up some two million bank accounts without the knowledge of their customers, all in an effort to meet sales targets. But this isn’t just a Wells Fargo issue. Much of what happened in that case forms part of a repeatable pattern, one that’s seen in too many businesses today. It should come as no surprise to anyone that when you build a team and tie its compensation directly to just hitting sales targets, people on that team are going to perform accordingly. That old saying rings true: You really do get what you pay for. In the case of Wells Fargo, a large faction of the team crossed the ethical

line in the name of pay for performance, and in doing so, they produced the results they were paid to produce: boosting sales of products to existing customers. That came about because the company chose a bonus-pay plan solely based on results and emphasized goal attainment above all other results. Frankly, there’s nothing wrong with paying for results; many of my clients do this successfully. The trouble starts when results overshadow all other metrics of success. When that happens, teams naturally conclude that achieving targets at any cost is the only option. For Wells Fargo, bonus pay was contingent on hitting targets for opening accounts and adding products. This invited both unethical and illegal behaviour within the company, because achieving sales results alone was the only way people could get their bonuses. Since managers were also rewarded based on whether their teams met sales

goals, there was no appetite for oversight when sales started to increase well past previous norms. Bad management decisions propagate when no one is encouraged to seek the truth. The situation at Wells Fargo – as outrageous as it appears – is not an isolated incident. Here are three related examples among many that can be pulled from headlines in OBJ and other business news sources on any given week. First, there’s Volkswagen, whose executives are still digging their company out after stories surfaced that more than a half-million diesel cars it sold in the United States had been equipped with software designed expressly to cheat on emissions tests. Why did it happen? Because VW executives wanted their company to be the No. 1 carmaker in the world, and selling more diesel cars in America was thought to be vital to achieving that goal. Engineers were told to make it happen or

MARKETING & SALES CO-ORDINATOR Cristha Sinden, 238-1818 ext. 222 cristha@greatriver.ca CREATIVE DIRECTOR Tanya Connolly-Holmes, 238-1818 ext. 253 creative@obj.ca ART DEPARTMENT Regan VanDusen, 238-1818 ext. 254 regan@greatriver.ca Celine Paquette, 238-1818 ext. 252 celine@greatriver.ca FINANCE Jackie Whalen, 238-1818 ext. 250 jackie@greatriver.ca SUBSCRIPTIONS/DISTRIBUTION Patti Moran, 238-1818 ext. 248 subscribe@obj.ca PRINTED BY Transcontinental Qualimax 130 Adrien-Robert, Parc Industriel Richelieu Gatineau, QC J8Y 3S2 NEWS RELEASES Please e-mail to editor@obj.ca. LETTERS TO THE EDITOR We welcome opinions about any material published in the Ottawa Business Journal or issues of interest to local businesspeople. Only letters with the writer’s full name, address and telephone number will be considered for publication. Addresses and phone numbers will not be published, but they might be used to verify authenticity. Letters can be e-mailed to editor@obj.ca.

Ottawa Business Journal is published by

CHIEF EXECUTIVE OFFICER Mark Sutcliffe PRESIDENT Michael Curran All content of Ottawa Business Journal is copyright 2016. Great River Media Inc. and may not be reproduced in any form without permission of the publisher. Publisher’s Liability for error: The Publisher shall not be liable for slight changes or typographical errors that do not lessen the value of an advertisement. The publisher’s liability for other errors or omissions in connection with any advertisement is strictly limited to publication of the advertisement in any subsequent issue or the refund of monies paid for the advertisement. A guaranteed minimum of 11,000 copies per week are printed and distributed.


JOIN THE BIGGEST CELEBRATION OF LOCAL BUSINESS IN 2016 Frankly, there’s nothing wrong with paying for results; many of my clients do this successfully. The trouble starts when results overshadow all other metrics of success. When that happens, teams naturally conclude that achieving targets at any cost is the only option

Walk the red carpet

23RD A N N Icelebrate VERSARY and

with recipients

Network with VIPs in business, politics and community Enjoy a three-course

N O Vdinner EMBER 1 0 inspiring , 2016 and

show THE WESTIN OT TAWA 23RD ANNIVERSARY

Guests of Honour In the case of VW, they failed on both of those counts. Pay for performance works well, but only if you are measuring the right things in alignment with what this compensation model is meant to solve. Wells Fargo should have had performance bonuses in place around customer satisfaction. This would have ensured that unhappy customers were caught quickly and their concerns addressed fully. It would have provided an incentive to find out why “too good to be true” sales achievements were happening within the bank. Coaching would have gone a long way in diagnosing the problem, too; it would have forced the team to spell out how it was achieving its goals. The executives responsible for the Phoenix rollout used the wrong metrics to define good performance. Pay bonuses should have been tied to a muchbetter definition of what constituted a successful launch. That would have encouraged greater focus on prelaunch troubleshooting, combined with a staggered rollout strategy. At VW, executive compensation should have been based not just on growth and share price, but on service excellence and customer standards. That would have instilled more checks and balances and given people incentive to stand up and say “no” rather than accept a way of working that ultimately proved devastatingly costly to the company. No executive in their right mind plans a growth strategy that entails the kinds of disasters that happened at Wells Fargo and elsewhere. That’s why it’s important to choose smart growth – one that’s built on an attention to the right details, to living up to good corporate values and then rewarding people accordingly.

NOVEMBER 10, 2016

T H E W E S T I N OT TAWA

Michael Potter Lifetime Achievement Recipient Emcees Lianne Laing CTV Morning Live Ian Mendes TSN 1200

REGISTER NOW WWW.OTTAWACHAMBER.CA SINGLE TICKET Chamber Member: $195 Non-Member: $215

CORPORATE TABLE OF 10 Chamber Member: $1,755 Non-Member: $1,935

THANK YOU TO OUR SPONSORS LEAD SPONSOR

PROUDLY PRESENTED BY

09 For more information, please e-mail info@ottawabusinessevents.ca or call 613.236.7029

OBJ.CA

Colleen Francis is an Ottawa-based sales consultant and owner of Engage Selling Solutions. She has worked with organizations such as Abbott, Merck, Merrill Lynch and RBC and is the author of the best-selling book, Nonstop Sales Boom.

David Ross CEO of the Year

MONDAY, OCTOBER 10, 2016

they would be replaced. VW nearly met its sales goal, but at a price of some $14 billion in settlements to date, jail time for some, and a steep level of self-inflicted damage to the company’s brand. Second, there’s Samsung, which currently finds itself saddled with a near-billion-dollar recall of its newest cellphone, the Galaxy Note 7, after reports emerged that some batteries installed in this model were prone to catch fire and explode. While the company has blamed this on a manufacturing process, some industry observers have publicly stated that decision-making within Samsung was overly ambitious with the launch schedule – presumably to preempt its rival, Apple, which was poised to launch iPhone 7, its newest model, just weeks later. Third, Canadian federal government bureaucrats are knee-deep in a scandal involving a horrifically glitch-riddled rollout of the government’s new internal pay and benefits system called Phoenix. More than 80,000 federal employees have been affected: Some have not been paid for months, and others are being overpaid. There’s still no word on when these costly, damaging malfunctions will be ironed out. Why wasn’t Phoenix tested more thoroughly? Indications are that project decision-makers were hasty to launch it, because their bonus pay was tied to a one-time rollout. Here’s how that got interpreted: Launch on time at any cost or you’ll be penalized. So, they launched on time. At incredible cost. In each of these cases, people did what they were paid to do. Pay drives performance. It’s the No. 1 motivator of human behaviour in business. Wells Fargo’s team boosted crossover sales. VW sold more cars. Samsung shipped a product ahead of its rival. And bureaucrats kept a big project on track to launch on time. And yet none of those goals mattered when the price of meeting them became apparent. Wells Fargo didn’t build oversight into its sales strategy. The group responsible for Phoenix chose the wrong metrics.


DAVID SEBA, QUELQUE CHOSE PÂTISSERIE

MONDAY, OCTOBER 10, 2016

LOTTI SAAB, LOUIS’ RESTAURANT AND PIZZA

SUBHIR UPPAL, BROKER/MANAGER, METRO OTTAWACARLETON REAL ESTATE LTD.

OBJ.CA

10 CAROLINA VENTURA TUKAN RESTAURANT

RED DOOR PROVISIONS


A great place to start a business Why did these diverse entrepreneurs choose Vanier? Vanier is becoming a great place to live, work and play, regardless of whether you think a T-shirt is underwear or formal wear. Millions of dollars of new commercial and residential investment is already pouring into this area. The population is growing, incomes are rising, and so too are expectations for goods and services that are just a short walk down the street. The area is proud of its Francophone roots and French is still the mother tongue of some 40 per cent of residents. However, Vanier is fluently multilingual, with locals and visitors easily conversing in English, French and a host of other languages from around the world. This is reflected in the variety of businesses that operate in the area. Don’t come to Vanier expecting to find the big box landscape of the ’burbs. Vanier businesses are as unique as the people who run them.

Pizza and coconut cream pie, oh my!

Tex mex with a Salvadoran twist

The combination of strong Francophone roots and multicultural diversity drew Maria Ventura and her family to Vanier 26 years ago. Their household spoke French and Spanish, and found Vanier to be an inclusive community where they fit right in. “I like Vanier because you can find people from everywhere,” Maria said. “I’ve

VANIER HAS CHANGED A LOT THROUGH THE YEARS AND PEOPLE HAVE A VERY DIFFERENT CONCEPT OF THE COMMUNITY NOW. THERE ARE MORE KIDS AROUND, MORE FAMILIES. Fine art and great stories

When Abed Younes decided he was too young to retire and looked to start up his next new business, he too found himself drawn to Vanier. It’s fair to say he considered his options. Palestinian by birth, Abed lived for years in Germany, working with the Red Cross to help countless refugees and immigrants

from all over the world settle into new lives. When he came to Canada in 1990, he rented a car and spent five months exploring the country to better understand his new home. He then decided his best way to put down roots was to start his own business. Over the past 25 years, Abed has built up and sold several local businesses, all in some way art-related, including Picture Plus. About 18 months ago, he started up his latest venture, a custom framing and fine art prints shop on Beechwood Avenue called Art House Custom Framing. “People ask me why I work with art,” Abed said. “Art is the only way to run away without leaving your home.” It hasn’t taken him long to build up a strong customer base from among local residents and even nearby embassies with hard work, a focus on quality and word of mouth. Social work is still in his blood and his shop has become a local favourite for regulars who often drop by just to chat. “This is such an amazing area,” Abed said. “Beechwood is booming.”

French maracons … by way of Venezuela

David Seba, owner and manager of Quelque Chose Pâtisserie on Montréal Road, found the same welcoming community as the Venturas years later. He and wife Julia, a pastry chef trained in Paris, decided Vanier was the place to be when they came to Canada three years ago from Venezuela. With a large local customer base, few established competitors in the area and affordable real estate, Vanier offered the opportunity to give their small business a strong start. While Quelque Chose makes a variety of tasty treats, Julia’s specialty is macarons in flavours ranging from vanilla to salted caramel and dulce de leche with puffed quinoa. “The community is very thankful to us for bringing a nice bakery here,” David said. “We took a chance and I think it was worth it.” Entrepreneurs like David and Julia are investing in Vanier because of its diversity, strong sense of community, quick transportation link to downtown and affordable commercial real estate. Become part of the community To learn more about setting up shop in Vanier, visit www.vanierbia.com or call the Quartier Vanier BIA office at 613-745-0040.

BROUGHT TO YOU BY THE QUARTIER VANIER BUSINESS IMPROVEMENT AREA

QUARTIER VANIER Just east of ordinary OTTAWA’S NEXT ‘IT’ NEIGHBOURHOOD MAY SURPRISE YOU Learn more about the opportunities for developers, investors and retailers in the thriving community

David Seba, QV merchant.

vanierbia.com 1

Is Quartier Vanier Ottawa’s next ‘it’ neighbourhood? Vanier is a community pulling itself up the bootstraps, like Westboro did in the ’90s. It’s a developer’s dream, with prime locations at eyecatching prices. There just isn’t another neighbourhood so close to downtown Ottawa that still offers such untapped potential for mixed-used development, building a business or putting down roots to grow a family. Download the free digital magazine to meet the businesspeople of Quartier Vanier and hear their stories.

Learn more about the opportunities for developers, investors and retailers in this thriving community. DOWNLOAD HERE Or visit www.investinQV.com

MONDAY, OCTOBER 10, 2016

Just ask Rema Saab. In the 1960s, her uncle Louis came over from Lebanon and started up his own restaurant in a converted house at 181 McArthur Ave. Almost 50 years later, Louis’ Restaurant and Pizzeria is still going strong at that same location, now owned by Rema’s parents and employing multiple members of her family. This old school diner, known for its pizza and a mountainous coconut cream pie that has to be seen to be believed, attracts customers from as far as Stittsville, Rockland and Gatineau. It still features the original orange seats, because Rema’s father thought the colour brought him luck. Much of Rema’s family has put down roots in Vanier. Her sister runs a beauty boutique next door, her uncle a hair salon across the street. “It’s very friendly people here, we love the people, they’ve accepted us, it was a very successful place for us to start a business,” Rema said. “It’s a point of pride now to tell people we’re from Vanier.”

raised three teenagers here and I’ve always been happy and comfortable to be part of this community.” Eight years, ago, they realized her husband Roberto’s dream and parlayed his restaurant experience into their own eatery. They chose Montréal Road because it was an affordable commercial location with high visibility and lots of pass-by traffic. Today, Tukan Restaurant is a bustling success. It’s one of only two restaurants in Ottawa to serve authentic Salvadoran cuisine, with a twist—it combines on the menu with Tex-Mex. Folks from all over the National Capital Region and even further come to enjoy traditional dishes made with rice, red silk bean, plantain, pork and fried fish, with alguashte (a sauce made with pumpkin seeds) and pupusa (stuffed corn tortillas). “Vanier has changed a lot through the years and people have a very different concept of the community now,” said daughter Carolina. “There are more kids around, more families.”

11 OBJ.CA


SPECIAL REPORT

Alternative Dispute Resolution The Benefit of Experience By David Contant

david.contant@nelligan.ca

As legal fees continue to rise, business professionals need to decide: should I resolve this dispute on my own, or should I retain a lawyer with expertise in dispute resolution? Successful dispute resolution takes practice and preparation. Author Malcolm Gladwell argues that the “magic number” of hours it takes to achieve expertise is 10,000 hours.

MONDAY, OCTOBER 10, 2016

Our lawyers have certainly logged their hours of practice. We also have access to specialized research tools that allow us to obtain precedents both for and against your case. We can assist by focusing on your interests, rather than positions.

OBJ.CA

12

We provide guidance in terms of where to hold your mediation, and who to select as a mediator. As counsel, we can work with your mediator to structure the negotiation process, clarify facts and issues, come up with creative options, and facilitate communication. We can also provide guidance in terms of when to walk away, and when to reengage in the negotiation process. Practice may not make perfect, but it certainly provides value!

Read more at nelligan.ca

SMALL BUSINESS WEEK

Taking a bite out of the lunch market Bucking an industry trend is paying off for owner-chef Etienne Cuerrier’s Hintonburg eatery BY DAVID SALI david@obj.ca

A

ccording to the old adage, there’s no such thing as a free lunch. Etienne Cuerrier’s loyal customers would beg to differ. Mr. Cuerrier, the owner of Meat Press Creative Charcuterie and Sandwich Shop in Hintonburg, celebrated his first year in business in early October. The longtime chef at well-known restaurants such as L’Orée du Bois, Soif and the Wakefield Mill knew he was onto something when his incentive program – buy 10 sandwiches, get one free – generated about 40 giveaways in the first month alone. “That was very impressive,” the affable entrepreneur says with a chuckle. “We’re in a small neighbourhood, off the (main) street. You have to keep (customers) coming back if you want to make money.” Located in a small space tucked away on Armstrong Road, a block north of Wellington Street West near Somerset, Meat Press has become a go-to lunch destination for everyone from nearby office workers and store owners to other chefs from establishments such as Allium and Whalesbone who stop in for a bite before their shifts. “That told us that we were doing something good,” Mr. Cuerrier, 32, says of attracting clientele from within his own industry. Indeed, business has been very good for the father of three youngsters aged 6, 2 and three months, who chose a bit of an unusual strategy dictated largely by his hectic home life. Instead of targeting the dinner crowd like most new eateries, Meat Press serves

Family is never far from restaurateur Etienne Cuerrier’s thoughts. PHOTO BY MARK HOLLERON

“We wanted to establish lunch because I think it’s the best way to get known. It was a big challenge because all the restaurants I worked at … lunch was never a big hit. For us to survive (serving) no alcohol, only doing lunch was a big challenge. It pushed us to see what people like, what can we do that is different, that will interest them, that they’ll want to come back.” – ETIENNE CUERRIER, OWNER OF MEAT PRESS CREATIVE CHARCUTERIE AND SANDWICH SHOP

only lunch. After years as a chef who often worked into the wee hours of the morning, Mr. Cuerrier decided things had to change when he struck out on his own. “It was a bit impossible to have a family life,” he explains. “We wanted to establish lunch because I think it’s the best way to get known. It was a big challenge because all the restaurants I worked at … lunch was never a big hit. For us to survive (serving) no alcohol, only doing lunch was a big challenge.

FAST FACTS • Founded: 2015 • Employees: Three full-time; one part-time • Funding sources: BDC, Futurpreneur Canada

It pushed us to see what people like, what can we do that is different, that will interest them, that they’ll want to come back.” Mr. Cuerrier and his team of four chefs have managed to do exactly that, serving up an array of sandwiches featuring fresh meat from nearby farmers and homemade ingredients with a twist, such as mayonnaise infused with bacon or duck fat “just to give it a little kick.” Almost everything is prepared in house, he notes, except the mustard because, “I don’t know how to make it.” He used to bake his own bread but found the process too time-consuming, so nearby bakery Art Is In now supplies that part of the sandwich equation. Locally raised meat and produce might cost a little more, he says, but it’s worth it. Continued on page 17


SPECIAL REPORT

SMALL BUSINESS WEEK

Pivot to SME market a signature move for Ottawa-based software startup Despite a seven-figure funding round, Signority felt it had no choice but to boldly change course and hire new staff in effort to achieve ‘viral’ growth

SUPPORTING AOE ARTS COUNCIL INITIATIVES

ARTINIS A hauntingly good party THURS 7pm

27 OCT

PRESENTED BY

$75 ticket

$375 group (6)

MC: Wendy Daniels

Signority marketing chief Gustavo Sanchez and co-founder Jane He. PHOTO BY MARK HOLLERON

BOOM 99.7 FM

BY DAVID SALI david@obj.ca

B

Costume Contest • Art Installations & Demos • Live Music • Silent Auction FOOD AND DRINKS BY

MONDAY, OCTOBER 10, 2016

13 OBJ.CA

olstered by a solid product and $1 million in fresh funding, it appeared that Ottawa startup Signority was set for a breakout year at the beginning of 2016. A software-as-a-service company, Signority makes a product that allows customers to sign documents electronically. Founded in 2010, the firm had a back story not unlike countless other startups. Signority was launched in co-founder Jane He’s basement with funding help from the federal government’s Industrial Research Assistance Program, eventually landing space at Invest Ottawa headquarters. The company diligently developed the technology to the point that a group of local and international investors deemed it worthy of a sevenfigure seed-funding round last December. But Ms. He says she knew in her heart she needed to shake things up if the

firm was going to survive and ultimately thrive. Even though Signority already had more than 100 customers and six-figure revenues, Ms. He boldly decided early this year to alter course and shift the company’s focus from large enterprise customers like the federal government to small and medium-sized businesses. “It’s a risk we need to take,” the ex-Nortel engineer says. “If something doesn’t work, you have to make a decision. Maybe that decision is wrong – but if you don’t make a decision, it’s even worse. Nothing will work.” The product had garnered overwhelmingly positive feedback, she explains, yet the company wasn’t seeing the “viral” pace of growth its founders were hoping for. In March, she began the process of overhauling the company, revamping its website and bringing in a whole new sales and marketing team led by Gustavo Sanchez, a former marketing director at local software firm Kivuto Solutions. Continued on page 17


SPECIAL REPORT

SMALL BUSINESS WEEK

Dos and don’ts of mergers, M&As and IPOs Be prepared for anything, experts tell Ottawa entrepreneurs BY DAVID SALI david@obj.ca

W

hether a company is planning to go public, raise venture capital or merge with a competitor, one overriding piece of advice always holds true, panellists at a recent Ottawa conference agreed: Do your homework. A who’s-who of Ottawa entrepreneurs ranging from founders of fast-growing startups to executives of leading corporations gathered at KPMG’s Elgin Street office on Sept. 27 for a series of talks on mergers, IPOs and venture capital.

“I tell clients, ‘You should be thinking about your exit before the company is even founded.’”

MONDAY, OCTOBER 10, 2016

– KAREN HENNESSEY, PARTNER AT GOWLING WLG

1310NEWS-5x10-WhereOttawa-FINAL.indd 1

2016-09-01

1310NEWS-5x10-WhereOttawa-FINAL.indd 1

2016-09-01

1310NEWS-5x10-WhereOttawa-FINAL.indd 1

2016-09-01

OBJ.CA

14

The various discussions all circled back to one key theme: No matter how ready you think you are for a defining event such as a major funding round, 11:31 AM you can never be too prepared. “I tell clients, ‘You should be thinking about your exit before the company is even founded,’” said Karen Hennessey, a partner at Gowling WLG who specializes in corporate and commercial law. 11:31 AM That means keeping thorough corporate records, including clearly delineated share agreements, she told the audience. Tech firms in particular need to pay special attention to ensuring their intellectual property is protected, 11:31 AM the panellists said.

Halogen Software CFO Pete Low. FILE PHOTO

For a company looking to be acquired, it’s important to be patient and seek out the best offer, said Ed Bryant, CEO of Sampford Advisors, an Ottawa-based investment bank that focuses on M&As. “That first call isn’t going to be your highest bid,” he said. “Be prepared. Have your list of potential buyers ready to go.” Pete Low, the chief financial officer at Kanata’s Halogen Software, said his firm left no stone unturned in preparing for its debut on the Toronto Stock Exchange in 2013. Mr. Low said Halogen executives started building relationships with industry analysts five years before the company’s IPO because they know the business inside and out and are often the most influential group in shaping market opinions about public companies. “It was very valuable for us as a business to learn (from analysts),” he said. Public companies are also under heavy scrutiny from the media, shareholders and regulators, Mr. Low added, a fact of life that private firms don’t have to worry as much about. “It’s something you’ve got to get used to and embrace,” he said. Experienced advisers are essential for companies looking at going public to help prepare them for the challenges that lie ahead, Mr. Low said. The Halogen team spent many hours talking to CEOs and CFOs from a host of public companies about what to expect after putting their shares on the market, he told the crowd. “You can all learn from each other,” he said. You.i TV co-founder Jason Flick said young businesses have access to a variety of sources of funding, including federal money from the Business Development Bank of Canada and the Industrial Research Assistance Program as well as private investors. “Look at the right vehicles that are available,” he urged startup founders.


SPECIAL REPORT

SMALL BUSINESS WEEK

Productivity a big issue for small firms BDC chief economist to address Ottawa entrepreneurs at Oct. 20 Eggs n’ Icons breakfast event BY DAVID SALI david@obj.ca

W

ith nearly 98 per cent of Canadian businesses employing fewer than 100 people, it’s not hard to see why SMEs are the driving force behind the economy, contributing more than half of the country’s gross domestic product. The Business Development Bank of Canada is once again recognizing these businesses’ vital contributions to economic growth during Small Business Week, which runs from Oct. 16-22. Throughout the week, BDC is hosting a series of events across Canada to promote the importance of small businesses and their accomplishments, including an appearance by the bank’s chief economist, Pierre Cleroux, at the next Eggs n’ Icons breakfast on Oct. 20. A joint initiative of the Ottawa Business Journal and the Ottawa Chamber of Commerce, the event will

tackle a topic on every entrepreneur’s mind: Productivity. “We’ve been looking for an opportunity to work with BDC on its Small Business Week initiative,” said OBJ publisher Michael Curran. “This is a great start. I’m particularly looking forward to BDC’s chief economist, Pierre Cleroux, who is speaking about boosting productivity to unleash growth in companies.” According the Organization for Economic Co-operation and Development, Canada’s labour productivity growth rate dropped to an average of 0.9 per cent between 2004 and 2014, compared with an average of 1.4 per cent between 1996 and 2004. Mr. Cleroux will discuss the role of individual entrepreneurs in addressing Canada’s growing decline in productivity. He will also look at how falling productivity is impacting SMEs’ ability to compete on the world stage and what Canada’s most successful businesspeople are doing to buck the trend.

BDC’s Pierre Cleroux. PHOTO COURTESY BDC

The audience will also hear the results of a comprehensive study on the productivity of 1,500 Canadian business owners conducted by BDC. In addition, the bank will talk about a new business productivity benchmarking tool it is launching later this fall. Following breakfast, Ontario Chamber of Commerce president and CEO Allan

BUSINESS PRIORITIES

O’Dette will comment on a new report on the province’s SMEs that is being released as part of Small Business Week. Federal Minister of Small Business and Tourism Bardish Chagger is also slated to speak, while a panel of local entrepreneurs that includes CanvasPop co-founder Nazim Ahmed, Armstrong Monitoring president Joanne Johnson and Versature chief operating officer Jonathon Moody will discuss issues relating to productivity and small business. “Small and medium enterprises are vital for Ottawa’s vibrant economy, and outside the government, they are the biggest employers,” said Ian Faris, president and CEO of the Ottawa Chamber of Commerce. “We are not only committed to advocate, connect and support our SMEs, but also explore innovative ways to create new entrepreneurs, and this forum is all about that.” For tickets and more information, go to ottawachamber.ca.

ARTPRENEUR OTTAWA CONFERENCE

HURDLES TO BUSINESS

Talent, taxes and attracting new business. These are the top challenges for Ottawa businesses. No matter how you cut the numbers, these three issues are always fighting for the top spots. It doesn’t matter the category a business operates in, or its size.

47%

SATURDAY, NOVEMBER 5, 2016 SHENKMAN ARTS CENTRE PRESENTED BY

SKILLED WORKFORCE

OF COMPANIES THINK IT’S THE #1 HURDLE

$75

TICKET $25 STUDENTS $45 EARLY BIRD

• Skill building seminars and panels • Expo Hall and product demos • Rich conversations and cross disciplinary networking Read the complete program and speaker bios at:

until Oct 3, 2016

@artpreneurottawa @artpreneur1

ARTPRENEUROTTAWA.COM Info@ArtpreneurOttawa.com PRESENTED BY: PRESENTED BY:

– BRUCE RAGANOLD, DIRECTOR OF BUSINESS DEVELOPMENT, WELCH LLP

CONFERENCE PRODUCERS:

CONFERENCE SPONSORS:

z e h n (+)S t u d i o D E S I G N

&

ADVISORY COMMITEE:

OBJPrintAd.indd 1

15

D E V E L O P M E N T

OBJ.CA

This data is part of the Ottawa Business Growth Survey. Conducted by Abacus Data and made possible by Welch LLP, the Ottawa Chamber of Commerce and the Ottawa Business Journal, the survey gathered input from hundreds of local businesses. A free 36-page report can be downloaded at www.ottawabusinessgrowthreport.ca.

MONDAY, OCTOBER 10, 2016

“The future success of Ottawa’s knowledge-based and creative sectors is closely tied to our ability to attract the very best and brightest to move here. The massive growth of Ottawa’s Shopify, the decision by Apple to set up shop, are happening because of their ability to find the right talent and attract the people they need to our community. There are a lot of exciting things happening in our city right now. From the upcoming LRT to Lebreton Flats redevelopment, Ottawa is becoming an even more exciting city in which to live – this will in turn fuel further growth of this key sector.”

The Artpreneur Ottawa Conference brings artists together with creative experts, and business leaders to inspire and develop their professions.

2016-09-16 1:52 PM


SPECIAL REPORT

and present:

TACKLING CANADA’S PRODUCTIVITY GAP: IT STARTS WITH ENTREPRENEURS

Pierre Cléroux Chief Economist, BDC

Thursday October 20, 2016 BDC Breakfast 7:00 a.m. - 9:00 a.m. Small Business Week Forum 9:00 a.m. - 12:00 p.m. Sheraton Ottawa Hotel –150 Albert St., 2nd floor- Rideau Room Individual Tickets: $30.00 + HST (Members) $45.00 + HST (Non-Members)

Corporate Tables of 8 with Signage $210 + HST (Members) $315 + HST (Non-Members)

Small Business Week Forum: $10.00 + HST

Register online at www.ottawachamber.ca Lead Sponsor

Audio-Visual Rentals Locations audio-visuels

POWERED BY: OTTAWA BUSINESS EVENTS

E-mail info@ottawabusinessevents.ca to receive weekly updates on all our events.

SMALL BUSINESS WEEK

Taking productivity to the next level

T

he Business Development Bank of Canada offers these tips to help business owners boost their productivity:

technology. You can also network with other organizations in your industry that may have already tried and tested new innovations.

USE TECHNOLOGY Web-based technologies enable you to dramatically improve how you run your business. You’re a good candidate if you’re looking to increase market share, aggressively pursue cost reduction or greater efficiency or prevent customer service problems. Production management tools range from spreadsheets to off-the-shelf software solutions or business-specific, customdeveloped applications such as smart inventory control systems that can help you reduce inventory levels, improve profitability and speed up customer response time. It also helps to keep abreast of technological developments and ensure that your business is taking advantage of the latest innovations to improve productivity. You can use the web or attend trade shows to stay on top of new

REVIEW YOUR EXISTING SETUP Look at your processes from the point of view of a potential investor. Keep in mind the overall objective and vision of the business, and ensure the processes meet those goals and add value. Draw an accurate map of each process in your material and information flow. By doing this, you can better understand the links between various elements of your production, and you will be better equipped to identify and eliminate waste throughout your company. CONTINUOUSLY TRY TO IMPROVE Improving productivity is an ongoing activity. Assess the competition and the best practices in your industry and develop a plan that works for your company. Get external help to assess your business weaknesses and strengths. – BDC

Business news on the go

MONDAY, OCTOBER 10, 2016

Download OBJ’s new mobile app and get live business news at your fingertips

OBJ.CA

16

DOWNLOAD ON

SPONSORED BY


SPECIAL REPORT

SMALL BUSINESS WEEK

Continued from page 12 “To stay on top, you have to start with very good products,” says Mr. Cuerrier, whose wife Myriam Campeau also helps out around the shop and does the books. “And that’s what we did. I think people notice it.” He also understands that restaurants, like sandwiches, aren’t very appealing if they go stale. To that end, Mr. Cuerrier expects Meat Press to get its liquor licence before the end of October, at which point he will start serving dinner. He plans to limit dinners to three nights a week at first to see how things go, with a focus on “family dinner-style meals” – for example, seafood casseroles or duck cassoulets that a whole table can share. “It’s basically trying to bring back the French cuisine and the good times people had, staying a long time at the table and enjoying a prepared meal,” he explains, noting that a cassoulet takes

three days to properly prepare. “It’s something people won’t do as much at home, especially in the age group that we’re aiming for. It’s stuff that people don’t have time to do anymore.” Mr. Cuerrier credits the Business Development Bank of Canada and Futurpreneur Canada for providing him with the level of seed funding – $45,000 – that one of the big chartered banks likely wouldn’t. He has no regrets about his venture, though if he had to do it over again, he says, he would have been “a little more aggressive” in launching a dinner menu sooner. His advice to aspiring restaurateurs? Review your business plan early and often to ensure you’re staying on track. “The business can grow faster than you anticipate,” he says. “In the first week, we started selling out. I didn’t have the time to close the kitchen and make those big changes that I needed to do.”

Continued from page 13 “I experimented with several different teams, and it didn’t work,” she says, explaining her decision. “I had lots of sleepless nights. If you’ve never experienced this, never experienced sleepless nights, you cannot call yourself an entrepreneur. I’ve had lots of sleepless nights.” Mr. Sanchez – whom Ms. He fondly refers to as Signority’s “Don Draper” after the gifted ad exec of Mad Men fame – came on board in early May. His challenge, he says, was to make the company more nimble. Whereas sales cycles for enterprise clients typically take months, SMEs usually expect deals to be done in days or weeks at the most. “A lot of people think the switch from enterprise to SMB is easy,” he says. “No. Your product has to change, your onboarding has to change, the way you service customers has to change, the sales cycle changes, the marketing changes. It’s almost like a new company.” Signority now pledges to respond to customer inquiries within 24 hours and is much more aggressive in signing up new clients, Mr. Sanchez says. “We went through a bit of a period of readjustment,” he adds. “We were a lot reactive before with how we helped customers.” Ms. He says the change in course has taught her a valuable lesson: People truly are a business’s most valuable resource. “The mindset has to be there,” she says. “When you have the (right) people, it changes everything.” Signority is now seeing average revenue growth of 15 per cent month over month, and Ms. He predicts the company will hit seven-digit revenues by next year. Meanwhile, its roster of customers – who range from individual freelancers to 50-person law firms – continues to grow. A successful pivot requires 100 per cent commitment from top to bottom, Mr. Sanchez says.

“If you’ve never experienced this, never experienced sleepless nights, you cannot call yourself an entrepreneur. I’ve had lots of sleepless nights.” – SIGNORITY CO-FOUNDER JANE HE

FAST FACTS

17 OBJ.CA

• Founded: 2010 • Employees: 12 full-time, plus about seven part-time contractors • Funding: IRAP; local and foreign investors • No. of customers: About 170 • Product: Technology that allows companies to get signatures for documents electronically

MONDAY, OCTOBER 10, 2016

“A lot of things are going to happen in the journey that are going to make (a business owner) second-guess that decision,” he says. “But once they’ve made the determination, they need to keep going forward. Once you have a full grasp of who you’re selling to and what their pain point is and how you add value to that, then it’s all about ensuring that the entire organization is behind that new goal.” Ms. He sounds confident that all the sweat and toil – not to mention all those sleepless nights – are beginning to bear fruit. “Now, our product is ready, we have our Don Draper here,” she says, turning to Mr. Sanchez with a smile. “It’s time.”


THE LIST 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

MONDAY, OCTOBER 10, 2016

16

OBJ.CA

18

17 18 19 20

Company Name Address, City, Postal Code Phone / Fax / Web site Fulton’s Pancake House & Sugar Bush 399 Sugar Bush Rd. Pakenham, ON K0A 2X0 613-256-3867 fultons.ca A.H. Fitzsimmons 1878 Co. Ltd. 46 Daly Ave. Ottawa, ON K1N 6E4 613-238-2100 / 613-238-7456 ahfitzsimmons.com Marchand Lighting and Electrical 1283 Algoma Rd. Ottawa, ON K1B 3W7 613-749-2279 / 613-749-9952 marchandelectric.com Sanderson Roofing 437 Catherine St. Ottawa, ON K1R 5T7 613-233-9369 / 613-230-4646 sandersonroofing.com E.R. Fisher Menswear* 199 Richmond Rd. Ottawa, ON K1Z 6W4 613-829-8313 / 613-829-8111 erfisher.com McIntosh & Watts 11-700 Industrial Ave. Ottawa, ON K1G 0Y9 613-233-2332 robmcintosh.ca Freightliner of Ottawa 3818 Russell Rd. Ottawa, ON K1G 3N2 613-744-0974 / 613-744-8952 freightlinerofottawa.com Budd Gardens Perennials 2832 Innes Rd. Ottawa, ON K1B 4K4 613-830-4328 buddgardens.com Snelling Paper & Sanitation Ltd. 1410 Triole St. Ottawa, ON K1B 3M5 613-745-7184 / 613-745-7949 snellingpaper.com Binks Insurance Brokers Ltd. 100-881 Lady Ellen Pl. Ottawa, ON K1Z 5L3 613-226-1350 binks.ca Frisby Tire 1377 Clyde Ave. Ottawa, ON K2G 3H7 613-224-2374 / 613-224-3782 frisbytire.com C.A. Paradis / Chef’s Paradise* 1314 Bank St. Ottawa, ON K1S 3Y4 613-731-2866 / 613-731-8439 chefsparadise.ca Tanner Insurance Service Ltd. 200-2435 Holly Lane Ottawa, ON K1V 7P2 613-232-5704 / 613-232-6486 tannerinsurance.com Hulse, Playfair & McGarry Family Chapels* 315 McLeod St. Ottawa, ON K2P 1A2 613-233-1143 / 613-233-9166 mcgarryfamily.ca Tubman Funeral Homes 403 Richmond Rd. Ottawa, ON K2A 0E9 613-722-6559 / 613-722-3879 tubmanfuneralhomes.com Scrivens Insurance and Investment Solutions 270 MacLaren St. Ottawa, ON K2P 0M3 613-236-9101 / 613-236-0856 scrivens.ca Rideau Bakery* 384 Rideau St. Ottawa, ON K1N 5Y8 613-789-1019 rideaubakery.com Francis Fuels Ltd. 105-28 Concourse Gate Ottawa, ON K2E 7T7 613-723-4567 / 613-723-6722 francisfuels.com Armstrong & Richardson Fine Footwear 4-1050 Baxter Rd. Ottawa, ON K2C 3P1 613-596-5511 / 613-596-5651 armstrongandrichardson.com Bourk’s Complete Car Care 4009 Carling Ave. Ottawa, ON K2K 2A3 613-599-5232 bourks.com

Year founded

OLDEST FAMILY-OWNED BUSINESSES (RANKED BY YEAR FOUNDED)

No. generations No. family currently members curinvolved rently involved

Founder(s)

Current Owner/Principal

Type of business Maple sugar bush; seasonal restaurant; guided tours; gift shop; producer of organic maple syrup; maple gourmet and bath and body products

1860

5

11

John Fulton

Shirley Fulton Deugo

1878

1

1

Alexander H. Fitzsimmons

Frank Rizzo

1892

3

5

P.E. Marchand

Jacques Marchand

1895

1

1

J.D. Sanderson

Don Mann

1905

2

2

Emerson Ralph Fisher

Sonia Fisher

1906

2

4

Grant McIntosh; Christina Watts

Rob McIntosh; Barb McIntosh; Peter McIntosh

Retail, fine tableware and gifts. Specializes in fine bone china coffee mugs designed in Ottawa under the “McIntosh” brand.

1910

2

2

H.G. Francis

Matthew Francis

Heavy truck sales and repair

1911

2

5

Peter Budd

Don and Dave Budd

1915

3

2

Charles Snelling

WND

Food service packaging; janitorial supplies and equipment; industrial packaging; safety supplies

Full-service real estate brokerage

Electrical distribution; lighting supplies

Residential and commercial roofing, all types

Men’s tailored clothing and sportswear; made-to-measure service

Growers of perennial flowers, specializing in hostas.

1918

2

5

Harry S. Binks

Harry S. Binks

Specializes in directors’ and officers’ liability; automobile and power sports dealerships; manufacturers; non-profit organizations; defence industries; contractors and property management firms; Binks Financial

1920

2

3

George Frisby

Don Frisby

Owned by George, James and Don Frisby over the years, offers name brand tires, wheels, auto repair and brake services for customers located in and around the Ottawa area.

1921

2

2

C.A. Paradis

Pierre Paradis

1922

1

3

Allan R. Tanner

Steven A. Tanner; Keith R. Tanner; Robert D. Tanner

Commercial insurance; home and auto insurance; boat and yacht insurance specialists; group auto and home insurance

1925

3

Charles Hulse

Brian McGarry; Sharon McGarry; Patrick McGarry

Funeral and cremation service provider

1925

3

Albert Lloyd Tubman

Julie Tubman

2

Retail store, commercial food service and restaurant supplier, specializing in fine kitchenware, small appliances, restaurant equipment, cookware, china and knives.

Creates celebrations of life, memorial and funeral services, including cremation and burial. Specializing in arranging services in advance of need (pre-need services). Commercial insurance: contract bonding; marine insurance; manufacturers; directors liability; professional errors and omissions. Personal insurance: home; auto; boats. Financial & estate planning; group life insurance and employee benefits; RRSPs; GICs

1929

2

4

W.H. (Bill) Scrivens

Peter Scrivens; Michael Scrivens; Ole Jensen; David Scrivens; David Scrivens; Shawn Ryan

1930

2

6

Abie Kardish; David Kardish

David Kardish; Louis Kardish Bakery; wholesale and retail

1933

2

2

H.G. Francis

Brent Francis

1934

3

3

Omar Armstrong; Clarence Richardson

Eric Armstrong; Blair Armstrong; Deanna Armstrong

Fine women’s and men’s shoes, boots and accessories

1937

2

4

Robert Bourk

Gary Bourk; William Bourk

Automotive wholesale and repair; property development (Bourk Family DevelopmentsWestboro Station)

Fuel; gasoline; propane; heating; air conditioning

WND = Would not disclose. *Did not respond to 2016 survey – using data from previous years. Should your company be on this list? If so, please send details to research@obj.ca This list is current as of July 18, 2016. © 2016 by Ottawa Business Journal. All rights reserved. This material may not be reproduced by any method in whole or in part without written permission by Ottawa Business Journal. While every attempt is made to ensure the thoroughness and accuracy of the list, omissions and errors sometimes occur. Please send any corrections or additions by e-mail to research@obj.ca. OBJ lists are primarily compiled using information provided voluntarily by the organizations named. Some firms that may qualify for the list are not included because the company either failed to respond to requests for information by press time, because the company declined to take part in the survey or because of space constraints. Categories are drawn up in attempt to gather information of relevance to the Ottawa market. Research by Patti Moran. Please send questions and comments to research@obj.ca.


FOR THE RECORD Hats off Embotics, a cloud automation company, announced that its flagship product, Embotics vCommander 5.7, was recognized by TechTarget’s SearchServerVirtualization.com as a Best of VMworld 2016 Gold Award winner in the Workload Management and Migration category. The awards are presented to the most innovative new products in the server virtualization, cloud and end-user computing markets based on innovation, value, performance, reliability and ease of use.

Contracts The following contains information about recent contracts, standing offers and supply arrangements awarded to local firms. Modis Canada Inc. 155 Queen St. Description: Informatics professional services Buyer: PWGSC $3,660,461 Harris Canada Systems Inc. 80 Jean-Proulx Description: HF audio equipment replacement Buyer: DND $2,654,499 S.i. Systems Ltd. 170 Laurier Ave. W. Description: Informatics professional services Buyer: PWGSC $2,440,307 ADGA Group Consultants Inc. 110 Argyle St. Description: Professional Services Buyer: PWGSC $2,062,148

Pleiad Canada Inc. 487 Edgeworth Ave. Description: Change management support to the governance, planning and policy sector’s human resource initiatives Buyer: Treasury Board of Canada $1,988,800 Altis Human Resources (Ottawa) Inc. 102 Bank St. Description: Professional Services Buyer: Treasury Board of Canada $1,934,072 Calian Ltd. 340 Legget Dr. Description: Human resource services, business consulting/ change management; project management services Buyer: DND $1,658,068 Lockheed Martin Canada Inc. 501 Palladium Dr. Description: Radar equipment, except airborne Buyer: DND $1,500,000 Maplesoft Group Consulting Inc. 1545 Carling Ave. Description: Professional Services Buyer: PWGSC $1,267,747 4Plan Consulting Inc. 286 Kent St. Description: Provision of senior level business consultant services Buyer: Treasury Board of Canada $656,304

Valcom Consulting Group Inc. 85 Albert St. Description: Driver wheeled training Buyer: DND $565,000 Julius Egbeyemi and Tabitha Egbeyemi 272 Flodden Way Description: Occupational therapists – North Bay, ON Buyer: Veterans Affairs Canada $310,750 ESRI Canada Ltd. 1600 Carling Ave. Description: ADP software Buyer: DND $297,984

EMCON Emanation Control Ltd. 360 Terry Fox Dr. Description: Communications security equipment and components Buyer: DND $238,432 Prebbel Enterprises Inc. 2383 Frank Kenny Rd. Description: Snow removal and landscape maintenance Buyer: PWGSC $219,489 Evripos Janitorial Services Ltd. 412 MacLaren St. Description: Janitorial service Buyer: PWGSC $166,965 Les Toitures Raymond et Associés Inc. 65 Jean-Proulx Description: Repairs to the roof structures at CANMET experimental mine, Val-d’Or Buyer: Natural Resources

Shirley E. Greenberg is the first recipient of the Friend of the WLMP Award given by The Women’s Legal Mentorship Program. The award recognizes a WLMP legal mentor, ally organization or supporter for their dedication to women’s legal mentorship and work to increase the retention of women in the law.

Canada $163,494 Opes Consulting Inc. 160 George St. Description: Translation services Buyer: PWGSC $159,355

HPB Association Management Services Inc. 580 Terry Fox Dr. Description: Administrative support and secretariat services Buyer: Transport Canada $149,838 Day-View Electric Inc. 2750 Stevenage Dr. Description: Lighting energy

efficiency upgrade project – phase II – TVAC at the David Florida Laboratory in Ottawa Buyer: Canadian Space Agency $135,594 Tessier Translations 228 St-Joseph Blvd. Description: Translation services Buyer: PWGSC $122,160

Professional Development IT PAYS TO KNOW

(QUROO 1RZ IRU WKH 6PRRWKHVW <HDU HQG (YHU

Marty S., CPM - Member Ontario Region

With more than 200 federal and provincial regulations and changes each year, staying payroll compliant is one of the biggest challenges employers face.

'RQ W PLVV WKH HVVHQWLDO VHPLQDU IRU DQ\RQH UHVSRQVLEOH IRU \HDU HQG SD\UROO

:FBS FOE BOE /FX :FBS 3FRVJSFNFOUT IFMQT QBSUJDJQBOUT XJO UIF ZFBS FOE SFQPSUJOH SBDF B HFU B IFBE TUBSU PO UIF /FX :FBS SFRVJSFNFOUT 1BSUJDJQBOUT XJMM HBJO B UIPSPVHI VOEFSTUBOEJOH PG FYJTUJOH QBZSPMM MFHJTMBUJPO BOE QSBDUJDFT UP FOTVSF UIFJS PSHBOJ[BUJPOhT DVSSFOU QBZSPMM JT BDDVSBUF BOE XJMM MPPL BIFBE UP FYQFDUBUJPOT GPS UIF OFX ZFBS BOE CFZPOE 5HJLVWHU WRGD\ IRU GDWHV LQ 2WWDZD DQG .DQDWD payroll.ca.

#FDPNF B $BOBEJBO 1BZSPMM "TTPDJBUJPO NFNCFS BOE HFU QSFGFSSFE SBUFT PO TFNJOBST Stay Current Stay Compliant payroll.ca

19 OBJ.CA

Canadian Development Consultants International Inc. 331 Cooper St. Description: Senior archivist – litigation support Buyer: DND $2,000,000

Mitel announced that Internet Telephony Magazine has presented the company with a 2016 TMC Labs Innovation Award for MiTeam, the team

and social collaboration tool that supports how teams work and interact in the mobile-first workplace.

MONDAY, OCTOBER 10, 2016

TPG Technology Consulting Ltd. 887 Richmond Rd. Description: Informatics professional services Buyer: PWGSC $2,033,589

Zibi, a redevelopment project by Windmill Development Group, Dream Unlimited and Fotenn, has received the International Society of City and Regional Planners’ award of excellence for planning and design. The award, chosen by an international jury of ISOCARP members, recognizes plans with a strong focus on sustainability, innovation, regeneration and resilience.


BUILDING A REPUTATION ON EXCELLENCE Innovative, high-quality customer-focused end-to-end construction solutions With hundreds of satisfied new and repeat customers throughout the Ottawa region as well as across Canada, BBS Construction has completed a broad range of industrial and manufacturing facilities, warehouses, recreation centres, arenas, automotive service areas and showrooms, churches and much more. We offer a complete one-stop-shop for your new construction, renovation and retrofit needs.

MONDAY, OCTOBER 10, 2016

• • • • •

OBJ.CA

20

Pre-construction Consulting Butler® Pre-engineered Buildings Re-Roof Solutions Design Build Construction Management

BBS CONSTRUCTION (Ontario) LTD.

(613) 226-8830 | www.bbsconstruction.ca


Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.