Ottawa Business Journal November 2018

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November 2018 Vol. 21, NO. 22

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Innovative solutions to tackling youth unemployment in Ottawa Ottawa Community Foundation engages private sector, social enterprises with New Leaf Community Challenge

W

NOVEMBER 2018

hen it comes to tackling youth unemployment, a little bit of creative thinking and some business sense can go a long way.

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For the past two years the New Leaf Community Challenge, organized by the Ottawa Community Foundation, has encouraged local organizations to come up with innovative ways to find young people meaningful employment. The most promising contender is awarded a $125,000 grant.

Youth Ottawa and the Social Planning Council, two local not-for-profits that offer skills training to disadvantaged youth, stepped up to the challenge in 2017.

Together, they proposed using the grant to expand their existing videography program, Youth Active Media, into a social enterprise.

“The plan we put forth went out in two stages,” says Ian Bingeman, Executive Director of Youth Ottawa.

“One was to go out and run a training program in how to create your own videos … The other was growing a social enterprise where we can hire youth from that training program and get them going and making videos for clients.”

Since winning the grant, 54 youth have graduated from the training program and 19 went on to work for Hot Shoe Productions – the fully operational video production service supported by both organizations.

“We’ve done video products

for Shopify, for RBC and the Centre for Social Enterprise Development, and for local charities” says Bingeman. “It’s not just finding employment opportunities for youth. It’s also telling the story to the rest of the community that there’s a huge value added when you involve youth in your business.”

EMPLOYING YOUTH

Although some organizations have found success in getting youth into workplaces across the city, the number of unemployed youth in Ottawa is still high. In 2017, Ottawa’s youth unemployment rate was 13.1 per cent.

There’s no standard blueprint for businesses trying to eliminate youth unemployment, says Marco Pagani, President and CEO of the Ottawa Community Foundation, but cross-sector partnerships between public, private and philanthropic sectors are a great way to

work towards lasting change.

The Ottawa Community Foundation works to bring local organizations together to find non-traditional solutions to some of the city’s most pressing issues and provides funding opportunities to make it all happen.

In the case of youth unemployment, Hot Shoe Productions is just one example of how these crosssector partnerships can create positive, systemic and sustainable change.

“There’s no reason why those video services couldn’t be purchased by for-profit businesses,” says Pagani.

“When we talk about social enterprise ... It should mean charities can create and deliver products and services that are ready for primetime, can be consumed by clients, regardless of the sector you happen to be in.

Those are very meaningful contributions.”

(L to R) Marco Pagani, CEO & President, Ottawa Community Foundation and Ian Bingeman, Executive Director, Youth Ottawa. Photo : Mark Holleron

2018 FINALISTS

The New Leaf Community Challenge is back again with a new cohort of finalists who have devised their own solutions to youth unemployment: • The Ottawa Community Housing Foundation, Youth Futures and Global Vision have proposed launching Youth+, an initiative that will help youth get jobs in fast-growing industries through a number of support programs; • Relay Education’s initiative, Green Collar Careers, aims to assist youth in exploring environmentally-oriented career paths through skills development training and connecting them with employers in the industry; and • The Rideau-Rockcliffe Community Resource Centre’s GeneratioNeXt Ward 13 is an employment and entrepreneurship program that plans to connect youth with potential employers and guide those who want to run their own business.

“The public, private and philanthropic partnerships are getting much more interesting,” says Pagani. “We find that this kind of process, this out-of-the-box Dragons Den-light approach, has yielded a lot of good things, including a sector that’s much more ready and the three finalists are certainly a reflection of that.”

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Linton on a roll

Canopy Growth boss riding high on the strength of some hard lessons learned early in his career CEO OF THE YEAR COVERAGE ON PAGES 13-14

PHOTO BY MARK HOLLERON

November 2018 Vol. 21, NO. 22

PROSPECTUS

NOVEMBER 2018 OBJ.CA

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By now, younger readers have whipped out their smartphones to determine the man in question is 86-year-old Gordon Reid. And the business is Giant Tiger.

“Gordon is a man of vision who has forged a company with a family-based culture. His honesty, integrity and common-sense approach to business has gained the respect of his employees, suppliers and other leaders in the business community. He is a remarkable Canadian success,” said his industry colleagues in 2010.

On this issue, OBJ seeks to bring more attention and appreciation for this business success story. (See profile on page 14.)

Also, OBJ joins the new Board of Trade in naming Gordon Reid as our 2018 Lifetime Achievement Award recipient. Reid will be feted on Friday, Nov. 16 at the Best Ottawa Business Awards.

The BOMA Ottawa Commercial Space Directory is the authoritative guide to office, industrial A LOOK AHEAD: OTTAWA IN 2036 and retail space in the capital.

In addition to detailed facts, figures and leasing contact information on hundreds of commercial properties, this magazine contains the latest industry updates from the voice of the local real estate industry, BOMA Ottawa, and several news features on the trends shaping the sector.

You can also read the magazine online at http://bit.ly/BOMACSD-2018.

DIRECTORY 2018/19

PUBLISHED BY

OCTOBER 22, 2018

EYES ON Corporate Governance

A special publication of the Institute of Corporate Directors Ottawa Chapter | NOVEMBER 2018

Looking to the future

ICD Ottawa in the community Page 4 David Emerson talks trade Page 8

@objpublisher Michael Curran

Harassment in the workplace: What it looks like and how to handle it see page 15 for the full story

INSIDE THIS ISSUE

Eyes on Corporate Governance is a special publication of the Institute of Corporate Directors Ottawa chapter. In this edition, former federal trade minister David Emerson explores a new era in global trade, while experts weigh in on the art of recruiting for Crown boards. This edition also introduces one of the new local leaders of directors education in Ottawa.

Daina Mazutis brings expertise in diversity and sustainability to new role at the Directors Education Program of the Institute of Corporate Directors

Photo by Mark Holleron

After almost 20 years at OBJ, I still love a good story. Sometimes that’s news of a remarkable business deal (such as Assent Compliance’s $100-million plus venture capital round in late October); other times, it’s a compelling rags-to-riches story.

Let’s travel back to a simpler time, the post-war period in the 1940 and ’50s. A 20-something travelling salesman in the United States comes across a fresh retail concept in Ohio, something that was unseen in Canada’s business landscape. It was a discount store.

Fast forward to 1961 and this young man, now 28 years old, opens a modest discount retail store at 98 George St. in the ByWard Market. As the story goes, he was so short of cash, he could not afford shelves to display his goods. He crafted man-made tables out of wood instead.

If I told you this modest store –​ still operating at that exact ByWard Market location – was the beginning of an Ottawabased retail powerhouse that now boasts more than one billion dollars in annual sales (no, that’s not a typo), would you believe me?

Remarkably, the story isn’t well-known in Ottawa.

And if I told you that young man, who became a master of discount retail in Canada, was later inducted into the Retail Hall of Fame alongside the founders of retail giants that are household names – for example, Loblaw, Bata Shoes, Harry Rosen and Home Hardware – could you name him?

ON THE STREET

COMMERCIAL

Recruiting for Crown boards Page 10

Nov. 1-2

TiECon Canada is TiE Ottawa’s flagship conference for startups, entrepreneurs, SMEs, industry veterans, investors and other members of the Canadian business community. Among the impressive list of speakers is Gopi Kallayil, chief evangelist of brand marketing at Google. He works with Google’s sales teams and customers and helps grow customer brands through digital marketing. Gopi previously led marketing for AdWords, worked at two Silicon Valley startups and was a consultant for McKinsey. TiECon Canada attracts more than 500 attendees, including 40 local, national and global speakers. It all happens at Brookstreet Hotel.

Visit www.tieconcanada.org.

OTTAWA’S ECONOM IC

OUTLOO Nov. 7

Ottawa’s Economic Outlook brings together business owners and executives for a series of presentations highlighting trends in the regional economy.

The 2019 event will include an Doug Porter important update from the Mayor of Ottawa on upcoming economic development priorities and initiatives. Attendees will also benefit from the valuable insights of one of Canada’s top economic analysts, BMO chief economist Doug Porter. This year’s keynote presentation from Stephen Willis, head of planning infrastructure and economic development at the City of Ottawa, will focus on how investment in light rail transit will trigger related residential, commercial and mixed-use development.

The luncheon takes place at the Shaw Centre. Visit www.ottawabot.ca.

The Best Ottawa Business Awards (the BOBs) are the highlight of the fall’s busy social calendar. The BOBs include longstanding honours for CEO of the Year and the Lifetime Achievement Awards. For the first time, a CFO of the Year will be honoured. This year’s stellar lineup of recipients includes Canopy Growth’s Bruce Linton for CEO, Giant Tiger’s Gordon Reid for Lifetime Achievement and Steve Spooner of Mitel for CFO. Plus, more than 20 companies will be recognized for their performance. If you want top-level networking and inspirational local success stories, do not miss this event.

Visit www.bestottawa business.ca.

Bruce Linton

Dec. 6 Gordon Reid

Steve Spooner

On Dec. 6, OBJ and the Board of Trade will unveil the results of the Employees’ Choice Awards for 2018-19. More than 20 companies launched surveys in October to determine which organization had the highest level of engagement.

The awards ceremony will take place at The Marshes in Kanata. For tickets, visit www.ottawabot.ca.

Success

is within us.

Read our story at bit.ly/Merkburn

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www.merkburn.com

Nov. 16

Justin Trudeau’s new minister for Canadian Heritage and multiculturalism, Pablo Rodriguez, will take the podium at the city’s premier business breakfast, the Mayor’s Breakfast series. Rub shoulders with leaders from the private and public sector and hear from high-profile speakers.

It all takes place at City Hall. Visit www.ottawabot.ca.

NOVEMBER 2018

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1969-2019

Nov. 27

EXECUTIVE BRIEFS They’re picking up the Karlsson of the real estate world in Canada.

— PRIMECORP PARTNER AIK ALIFERIS ON OTTAWA’S LARGEST INDEPENDENT REAL ESTATE BROKERAGE BEING ACQUIRED BY CALIFORNIA-BASED MARCUS & MILLICHAP

REAL ESTATE

Primecorp sold to California brokerage Ottawa’s largest independent commercial real estate brokerage has been sold to a U.S.-based industry giant.

Primecorp Commercial Realty announced in early October the organization has been acquired by California-based Marcus & Millichap.

Terms of the agreement were not disclosed.

Founded in 1998, Primecorp has offices in Ottawa, Toronto, Montreal and Gatineau and employs a dozen brokers in the National Capital Region.

Primecorp’s Bank Street headquarters is remaining open but will take the Marcus & Millichap name, while staff in Toronto and Montreal are moving to the U.S. parent’s offices in those cities. CEO Aik Aliferis and his current partners, Sam Firestone and Nick Pantieras, are joining M&M as senior executives.

M&A

Martello acquires Dutch software firm Kanata-based Martello, which makes software that helps enterprises manage rising bandwidth demands and troubleshoot issues as they occur, said last month it is acquiring Netherlands-based Savision B.V. in a cash-andstock deal worth about C$12 million.

Savision’s cutting-edge technology alerts customers when issues arise with their Microsoft-based applications, providing updates on the status of a whole suite of products in one easy-to-read dashboard.

Martello CEO John Proctor told Techopia the deal gives his company instant access to the European market, thereby boosting its customer base while

beefing up its service offerings. He said Martello looked at about 60 potential acquisition targets before zeroing in on Savision.

Founded in 2006, Savision has more than 900 customers in 50 countries and posted revenues of about C$4.5 million in fiscal 2017.

Most of the firm’s 32 employees work in the Netherlands, but its chief technology officer, Rob Doucette, and his 11-person team are based in Kanata.

Those employees will move to Martello headquarters at nearby 390 March Rd. All of Savision’s Europe- and U.S.based employees will also be joining Martello, boosting the fast-growing firm’s headcount to 94.

RESTAURANTS

Mad Radish on the grow The founder behind DavidsTea is taking his salad-based meal chain Mad Radish to Toronto following a successful launch in Ottawa.

The company announced Oct. 24 that it will open its first location in Toronto at Yonge Street and Eglinton Avenue. Mad Radish has three locations in Ottawa – one in the Glebe and two in the downtown core – with Toronto marking its first move out of the nation’s capital.

The company offers healthy, “chef-driven” meal choices, according to co-founder David Segal, who spoke to OBJ in 2017 when the chain first launched in Ottawa.

Segal told OBJ then that he believed burger joints were crowding the quick-service scene and there was a market for fast and healthy offerings. He said Mad Radish wouldn’t offer “rabbit food,” and contrasted the restaurant’s offerings with competitors that he said lack substance.

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Nearly one-third of respondents plan to lease or buy BIGGER COMMERCIAL SPACE for their business

IDENCE BUSINESS CONFTA IN THE CAPI L MARKET OUTLOOK

HIRING INTENTIONS

WORKPLACE TRENDS

MAYOR’S RATING

Download the full report at www.ottawabusinesssurveyreport.ca

ing Ottawa businesses? minimum wage affect PLUS: How is the rising BROUGHT TO YOU BY

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2018-05-14 2:35 PM

OBGS MAGAZINE 2018indd.indd

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NOVEMBER 2018

2018

ns the attitudes, perceptio Exclusive insights into business leaders and plans of Ottawa’s

As a Canadian company, we feel we have a global lead. We’ve got opportunities that are coming to us all over the world, and we feel that we can (dominate) the market.

— SLICE LABS CEO TIM ATTIA AFTER THE OTTAWA CLOUD-BASED INSURANCE PLATFORM RAISED US$20 MILLION IN VENTURE CAPITAL FUNDING

TECH

L-Spark unveils new cohort

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The L-Spark accelerator is widening its sectors of focus but keeping closer to Ottawa with the first four companies announced in its 2018 fall cohort, three of which call the National Capital Region home.

The Kanata-based accelerator program says it heard from 499 companies on this year’s SaaS Roadshow, an annual tour that this year brought the organization to Ottawa, Toronto, Montreal and Waterloo. After an evaluation process, four firms were selected to take part in the six-month program with the goal of growing their revenues 10x.

The latest cohort includes Gatineau’s AideXpress, which connects those in need with self-employed maintenance workers, housekeepers or just someone to help with miscellaneous chores; Ottawa-based AlphaKinect, which is developing a system that delivers real-time cognitive information to help prescribe rehab techniques for people suffering from concussion; Gatineau-based Brokrete, which has created an app for on-demand concrete orders; and Kingston’s Wavve, which is making an app for boaters to better navigate the water.

UP CLOSE

You have to get to know each of your customers personally, their likes and dislikes, their kids and their dogs. Or that might just be my curious nature.

– Wall Space Gallery + Framing’s Patricia Barr

FIVE THINGS TO KNOW ABOUT PATRICIA BARR:

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‘It’s like opening a Christmas present each month’ The ever-changing nature of her job makes Wall Space Gallery + Framing director Patricia Barr glad she abandoned her career as an occupational therapist to enter the world of business

BY CAROLINE PHILLIPS NOVEMBER 2018

caroline@obj.ca

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P

atricia Barr grew up in a household where success was defined almost exclusively by the pursuit of respectable, white-collar jobs.

“Medicine, law, or business –​ not the arts,” says the 51-year-old director of Wall Space Gallery + Framing, a contemporary art gallery and custom framing studio at 358 Richmond Rd. It just celebrated its 10th year of operation in the bustling neighbourhood of

Westboro Village.

Like “a good Asian daughter,” she originally set her sights on medicine because she was strong in sciences and it made her folks happy. She studied microbiology at McGill University before changing to occupational therapy.

She thrived in the profession for 17plus years, until job burnout and the challenges of balancing work and family life had her craving a change.

Her husband Tom suggested that Barr come work part-time with him and his brother at their new Westboro location,

She was one of four kids born to Tony and Carmen Hidalgo in the Philippines. The family moved to Canada when she was just four.

Her dad became an executive with Hewlett-Packard and her mom sold Shiseido skin-care products.

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She jokes that, due to her struggle with work-life family balance, she encouraged each of her kids to choose one sport, but to never be good enough to make a competitive team (because it would require driving to out-of-town games).

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She’s passionate about gardening. She grows Swiss chard in her front window boxes at home.

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Barr and her team have supported various charities over the years, including the Candlelighters, The Royal Ottawa Foundation’s Women for Mental Health and Ottawa Riverkeeper.

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Don’t ask her which artist is her favourite. “It’s like asking which one of your children is your fave,” she responds. “I love them all uniquely and equally.”

winning her over with: “You can order lattes next door and do what you do best – talk with clients.”

“It sounded really exciting,” recalls Barr, who joined a month after they launched the Westboro spot in August 2008. She went full-time in 2010, when manager Lori Wojcik left to open Town restaurant.

“I did not realize how much work

it was going to be if you want to be successful in the business,” she concedes. “Nobody tells you about all the hours you have to put in, how it consumes your every waking hour. Tom mentioned it, but I scoffed, thinking being an OT was harder.

“You’re schlepping stuff, cleaning up crap like frozen vomit in your outdoor planter,” Barr says with a laugh, later revealing that particular mess took two hours and four pots of boiling water to remove.

“You have to get to know each of your customers personally, their likes and dislikes, their kids and their dogs. Or that might just be my curious nature.”

Yet running the gallery has become the most rewarding experience of Barr’s career.

“It’s like opening a Christmas present each month,” she says of the ever-changing art exhibits, including local landscape artist David Lidbetter’s upcoming solo exhibit, beginning Nov. 2.

LEAN WINTERS For the past decade, Barr has been riding the highs and lows, watching some shows do very well while others, although critically successful, suffer poor sales. She listens to clients and gains their trust as they share their life stories, world travels and personal struggles in relation to their precious photographs or works of art.

Through it all, she’s tried to divide her time between the small family-owned business and raising three children.

“Work often wins, as it’s keeping us afloat,” says the mother of Griffin, 20, Sydney, 18, and Audrey, 16. “I’m happy to report they survived.”

Barr has always had a passion for art and design, beginning in her Gloucester

High School days. She worked at a horses after one boisterous but fun rental.

Framing Experience store in east Ottawa, This past September, Wall Space landing her then-boyfriend, nowhosted an anniversary bash to celebrate husband Tom a job there. He continued its 10 years in Westboro. It was poor in the custom framing business and, timing for Barr, who’s been suffering with his brother Edward, now owns two since mid-August from pelvic health locations: one in Westboro and another difficulties. She’s been resting at home in the Train Yards shopping district. under her doctor’s strict orders.

Westboro’s Wall Space relies both on What was very sweet, though, is the the sales of its artwork and its framing way the community businesses pulled ECONOMIC design services. It also sells OTTAWA’S jewelry, through for Barr, who, despite being ceramics, sculptures and glassworks. incapacitated, made an appearance at The leanest period, says Barr with a the party. sigh, “is in the dead of winter, when not Cupcake Lounge provided sweets one person comes through the door, in while Kichesippi Beer and The Wine an outdoor shopping district, and you Bottega made sure there were drinks, have zero sales for the day.” and Dave Neil, owner of The Piggy Wall Space saw a drop in gallery walk- Market artisan deli, kept on top of the throughs last year when neighbouring charcuterie platters. Artists celebrated coffee shop Bridgehead relocated next to along with the Wall Space team, fellow OTTAWA’S ECONOMIC Farm Boy. business owners, friends and clients, “People used to come in for very all in support of the Candlelighters, a expensive cups of coffee,” Barr jokes. non-profit organization that provides At one time, Wall Space rented its programs and services to young cancer venue as a source of income, but the patients. social gatherings caused too much wear In response to the community and tear, says Barr, who still remembers kindness, a grateful Barr quotes Winston finding kiss marks on photographer Churchill: “We make a living by what we Michelle Valberg’s exhibit of Sable Island get, but we make a life by what we give.”

OUTLOOK

TIECON CANADA 2018

Brookstreet Hotel, Kanata November 1-2, 2018 TiECon Canada is TiE Canada’s flagship conference for startups, entrepreneurs, SMEs, industry veterans, investors, funding agencies and other members of the Canadian Entrepreneurial community.

TiECon Canada 2018 will feature grand keynotes, daring entrepreneurs, industry leaders, investors, and experts from the hottest technology sectors. With over 30 keynotes and speakers, TiECon Canada is must attend conference for startups, entrepreurs, investors and service providers.

OUTLOOK

Beth Comstock Past vice Chair, GE World’s 100 most powerful women, Forbes

Gopi Kallayil Brand Evangelist, Google. Author, The Happy Human

Stephan Jacob Co-founder, President and COO, Cotopaxi

OTTAWA’S ECONOMIC

OUTLOO

This annual luncheon brings together business owners and executives for a series of presentations that provide them with an outlook on the region’s economy.

This event will include:

• Guest Speaker: Stephen Willis, General Manager of Planning, Infrastructure

Tanmay Bakshi J. Skyler Fernandes IBM Champion & World’s Powerlist 100 VC youngest AI expert

Katherine Foster CSO BLOC & Blockchain advisor, World Bank

& Economic Development at the City of Ottawa

• Presentation by Douglas Porter, CFA, Chief Economist & Managing Director, BMO Financial Group

• Update from the Mayor of Ottawa • Panel Q&A with, Michelle Taggart, Tamarack Homes & Taggart Investments, Shawn Hamilton, CBRE and Mathew Laing, Trinity Group.

Wednesday, November 7, 2018

INDIVIDUAL TICKETS

Ottawa Board of Trade Members: $60 Non-Members: $75 EVENT SPONSORS

Register now at ottawabot.ca CORPORATE TABLE OF 10

Ottawa Board of Trade Members: $540 Non-Members: $675

Mike Weider CEO, Clearwater Clinical

Tanya Seajay CEO, Orenda Solutions

ALSO, DON’T MISS

3 Technology panels, including AI Avalanche, Blockchain Unchained, The Rise of Intelligent Cars, Sentimental Analysis

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3 See Ottawa’s top technology startups pitch their venture at PitchFest 3 Seek mentorship from the most sought-after entrepreneurs 3 Meet investors, potential partner and customers Register now at www.tieconcanada.org

NOVEMBER 2018

Shaw Centre – Trillium Ballroom 11 am – Registration and Networking 11:30 am – Event Commences 12:00 pm – Lunch Service 1:30 pm – Event Concludes

Jamyn Edis Founder and CEO, Dash

REAL ESTATE

Morguard, Quebec investor purchase Jean Edmonds Towers in $186M deal Sale of ‘highly sought-after’ downtown property ranks among largest in city’s history

BY DAVID SALI

david@obj.ca

NOVEMBER 2018

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leading commercial landlord has partnered with a Quebec-based investor on the $186-million purchase of a major downtown office complex that ranks among the biggest real estate transactions in Ottawa history.

Morguard announced in late October it was joining forces with iA Financial Group to buy the Jean Edmonds Towers, a 552,000-square-foot property consisting of two highrises at 300 Slater St. and 365 Laurier Ave. The deal will see iA Financial, a publicly traded firm that offers a range

of life and health insurance products as well as savings and retirement plans, own a 50.1 per cent stake in the property, with Morguard controlling the rest. The site was previously owned and operated

by Brookfield Asset Management, which put the buildings on the market earlier this year.

The two 20-storey highrises are linked by a ground-level retail atrium.

They are currently 98 per cent occupied by the federal government and are home to Immigration, Refugees and Citizenship Canada and the Canada Border Services Agency. The feds in the midst of investing tens of millions of dollars in a floor-by-floor renovation of

the complex that includes upgrades to common areas, lobbies and washrooms as well as a redesign of workspaces.

Brookfield originally tried to divest the property in 2016 but wasn’t able to find a buyer. Cushman & Wakefield Ottawa managing director Nathan Smith, who helped broker the deal, said the site drew interest from a number of “private equity and institutional capital” investors this time around, mainly due to its central location and stable, long-term government tenants, who still have about eight years remaining on their lease.

“It is the type of property that’s highly sought-after across the country,” he said.

Morguard will provide property management services at the towers, giving the firm operational management of a full block in Ottawa’s central business district. The company and its affiliates also manage and hold ownership interests at 280 Slater St., 301 Laurier Ave W., 333 Laurier Ave W. and 150 Bank St. CLASS-B BUILDINGS While the deal is dwarfed by the $480-million price tag of the transaction that saw a trio of investors purchase Constitution Square in September 2017, it’s still among the city’s largest deals ever.

Unlike Constitution Square, a top-tier class-A property, the 44-year-old Jean Edmonds Towers are considered class-B buildings. But iA Financial Group vice-president of real estate investment Mario Bedard said the buildings are an attractive commodity because they offer a “steady-flowing” stream of rental income.

“That’s perfect for us,” he said, adding the company is eyeing other potential deals in the capital as part of a bid to expand its portfolio across the country.

The firm currently owns about $1.4 billion worth of real estate assets, mostly in Quebec and Vancouver, and the Jean Edmonds transaction is its first foray into the Ottawa region.

“It’s a market we like,” Bedard said.

Representatives from Morguard were unavailable for comment before press time. In a statement, the company said

OTHER NOTABLE OTTAWA COMMERCIAL REAL ESTATE TRANSACTIONS: Constitution Square $480,000,000 (2017) Former Nortel campus at 3500 Carling Ave. $208,000,000 (2010) Minto Place (50% interest) $188,000,000 (2017) 200 Kent St. $143,400,000 (2012) Chateau Laurier $120,000,000 (2013) 100 Kent St. | $111,000,000 (2016) Source: Juteau Johnson Comba Inc.

the Jean Edmonds acquisition sets the stage for “potential master planning opportunities” for its properties in the immediate area.

Colliers International associate vicepresident Michael Pyman agrees the deal “opens up potential” for a makeover of the towers down the road.

“It gives options for (Morguard) to link their entire block together, either below grade or above grade with breezeways,” he said, noting the firm now has an ownership interest in about 800,000 square feet of real estate in that part of the core.

The deal brings Morguard’s managed real estate portfolio in the city to more than five million square feet. The firm owns or manages 2,800 residential suites in the National Capital Region. The Jean Edmonds Towers were built in 1974 by Robert Compeau and are the former home of the Ottawa Journal newspaper.

Tightening vacancy adds pressure for next downtown Ottawa office build

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ith class-A office vacancy rates Ottawa is a slightly different market, dipping below four per cent in however, because its growth has Ottawa’s central business district, historically been tethered to the federal talk among some real estate watchers is government. turning to when ground will be broken on But Smith says there is talk of Public the city’s next office tower.

Services and Procurement “We certainly believe Canada exploring a request that it’s time,” said Nathan for some 130,000 square feet Smith, managing director of central office space. of Cushman & Wakefield “We’ve seen the feds kick Ottawa, speaking on the off development before,” sidelines of this year’s Smith said.

Explore the trends and Ottawa Real Estate Forum.

If the feds were to agree developments shaping the capital’s commercial CBRE managing director to lease that much space in property market.

Shawn Hamilton, who a new building, Smith said Watch at http://bit.ly/ joined Smith on the Ottawa one of the key questions is OttawaRealEstateShow.

Thanks to our sponsors Real Estate Show, noted that whether a developer would Mann Lawyers and a sub-five per cent vacancy construct a tower in the CBRE Ottawa. rate in many other cities hope that private-sector would typically cause net tenants would lease the effective rents to skyrocket and, in turn, balance of the space and make the “cranes going in the air.” project viable. ​– Peter Kovessy

SECTOR SNAPSHOTS

DEVELOPMENT

Highlights from interviews at the Ottawa Real Estate Forum. For the full interviews, watch the Ottawa Real Estate Show on the Ottawa Business Journal YouTube channel.

Over the last 15 years or so, there has been an enormous growth in the INDUSTRIAL MARKET We’re seeing tenants desire of municipal planners to have that we never thought centrally planned would (lease) an industrial bay. development.

– DOMINIC BONIN, LEASING DIRECTOR OF SKYLINE COMMERCIAL ASSET MANAGEMENT, ON THE IMPACT OF CRAFT BREWERIES AND OTHER EMERGING TENANTS ON OTTAWA’S INDUSTRIAL MARKET. WATCH THE INTERVIEW AT bit.ly/ORES-Bonin

– MICHAEL POLOWIN, PARTNER, GOWLING WLG, ON CHANGES IN THE REGULATORY ENVIRONMENT FOR DEVELOPERS. WATCH THE INTERVIEW AT bit.ly/ORES-Polowin

WHAT TRENDS ARE TRANSFORMING OTTAWA’S RETAIL REAL ESTATE MARKET?

Andre Martin

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http://bit.ly/OttawaRealEstateShow

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is a partner at Mann Lawyers and head of the firm’s business law group.

NOVEMBER 2018

Watch the Ottawa Real Estate Show

JOIN THE BIGGEST CELEBRATION OF LOCAL BUSINESS IN 2018 Meet your event emcees:

Catherine Clark

Rick Gibbons

2018 Bruce Linton of Canopy Growth

Gordon Reid of Giant Tiger

Steve Spooner of Mitel

CEO of the Year

Lifetime Achievement Recipient

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Sam Laprade

CEO OF THE YEAR

‘You’re going to have some things that don’t work when you try big things’ Perhaps the highest-profile exec in the country’s mosthyped industry, Canopy Growth boss Bruce Linton looks back on the failure that paved the way for his current success david@obj.ca

PHOTOS BY MARK HOLLERON

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ushing between meetings in Los Angeles on a late October morning, Ottawa’s CEO of the Year paused to reflect on an opportunity lost.

It was around the turn of the millennium, and ​ Bruce Linton – an ambitious young businessman who’d helped found tech firm CrossKey Systems and take it public a few years earlier – was president of a fledgling startup called webHancer.

NOVEMBER 2018

BY DAVID SALI

Continued from previous page

NOVEMBER 2018

The software-as-a-service venture helped clients build better, faster web pages, focusing on technical aspects of the Net such as internal link structures. Its founders were so focused on addressing what they saw as a pressing need, they failed to realize they were sitting on a gold mine of information about things such as who was surfing the internet and the sites they were looking at.

“What we didn’t pay attention to was we were generating at that time probably one of the world’s leading data selections on what people do and act online and how they can be better served with content they want based on product clicks and follow-through behaviours,” said Linton, who is better known today as the cofounder and CEO of cannabis producer Canopy Growth.

“We were really focused on fixing the internet, but I would say that, you know, some of our customers saw what we doing in an entirely different light. And we didn’t necessarily listen to them or think about it in the way they wanted, which was actually a much greater value proposition than fixing why the internet was annoying.”

One of the firm’s clients, Microsoft, did see the potential in the data webHancer was mining, and bought the company’s IP and assets in 2001.

Linton, meanwhile, moved on to other ventures, including clean-tech firm Clearford Industries. It took another decade or so, but he eventually found his mojo with medical cannabis producer Tweed, now the recreational and medical pot powerhouse known as Canopy. At roughly the same time he entered the cannabis space, Linton also became chief executive of software firm Martello Technologies, which went on to become

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When I started this, there were like really two countries at it and a couple thinking about it. There are more than 30 now. We’ve got to go fast to keep up with the globalization so we maximize the future value of the company.”

– Bruce Linton, co-founder and CEO of cannabis producer Canopy Growth

the city’s fastest-growing company under his watch.

Yet the lessons Linton learned from his experience with webHancer remain embedded in his psyche.

Building a successful company, he said, comes down to “constantly reviewing all the opportunities and the actions you’re taking. That’s how I’d phrase it. Because they change every day.”

Failure, of course, is inevitable in business, and even the most accomplished entrepreneurs can look back on their careers and wish they had a few do-overs. At 52, Linton understands that better than ever.

MEDICAL RESEARCH “If (a venture) is successful, your IQ didn’t go up, and if it didn’t work, your IQ didn’t go down,” he said. “You’re going to have some things that don’t work when you try big things. But hopefully, you learn from these things.”

Indeed, Linton’s career trajectory from Molson beer rep while attending Carleton

University (“the best student job ever”) to one of the region’s most recognizable – not to mention quotable – chief executives was not exactly of the hockey-stick variety.

And he’s not shy to admit it.

“I don’t know anyone who got to where they are on a simple linear basis and it all worked perfect,” he said. “The stuff that (failure) teaches you is the more important stuff. I don’t think we’d be having this conversation, or I don’t think Martello or Canopy would be where they are, if you don’t get hit in the head a few times with things that don’t work.”

With weed now legal in Canada for recreational use, Linton must figure out how to maintain Canopy’s position of dominance in a global market that is surely going to see more producers in more countries enter the fray as the trend toward legalization spreads.

In the short term at least, Linton is betting that the medical cannabis market will offer the most lucrative path to growth.

Canopy and its subsidiaries have

already invested millions in medical research and are getting set to launch clinical trials on both humans and pets in an effort to better determine how cannabis can relieve conditions such as anxiety and insomnia.

“Medical is the governing model that’s gonna sweep the globe,” Linton said. “We’re already seeing it in about 30 countries. Which means that if you have intellectual property and proven outcomes with medical, as you enter those countries, no one can say that there’s no medical evidence. The medical market could be quite a lot bigger than the rec market over the next three years, because first (countries) have to do the medical and then they might add the party. It’s our big spend. It’s our big build. It’s a serious deal.”

Canopy has a first-mover advantage, but that will only take it so far. Unfazed, Linton said he’s ready for the challenges ahead.

“When I started this, there were like really two countries at it and a couple thinking about it,” he noted. “There are more than 30 now. It’s happening in Europe, it’s happening in South America, it’s happening in the Australia region.

We’ve got to go fast to keep up with the globalization so we maximize the future value of the company.”

Linton, who lives in Kanata with wife Heather and sons Adam and Max, said his overnight success that was 25 years in the making couldn’t have come at a better time.

“I think in some ways, it’s much easier to do these things at 52 than it was at 42.

It’s just an accumulation of experience. I’m a slow learner, I guess.”

Linton will receive the CEO of the Year honour at the Best Ottawa Business Awards Nov. 16 at the Westin Ottawa.

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Harassment in the workplace: What it looks like and how to handle it Nelligan O’Brien Payne regularly advises clients on the best way to handle and prevent cases of workplace harassment.

I

t could be a touch on the shoulder, a demeaning comment in front of colleagues or an inappropriate invitation to get together outside of working hours. While these acts may be initially easy to shrug off, with time and repetition they can quickly cross over into workplace harassment. But where is that line drawn?

In the midst of social movements such as #MeToo, it has become a bit easier for individuals to come forward with stories of both sexual and personal harassment in the workplace, says Karine Dion, a partner with Nelligan O’Brien Payne LLP. But, despite this push, it can still be difficult to prove allegations.

With so many subtleties surrounding harassment, and not much in the form of documentary evidence, many cases end up relying on the credibility of the parties. However, there are ways for both employees and business owners to protect themselves while on the job.

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PROTECTING YOUR WORKPLACE

15 OBJ.CA

As a business owner, the best way to avoid trouble when it comes to harassment is to be proactive, says Dion. Workplace policies are key, and should be updated annually with accurate information regarding who to contact with a complaint and the various steps in the complaint procedure; where possible, the approximate length of the investigative process, or its various steps, should also be included.

It is crucial that an employer assess the situation from the outset and take appropriate action to ensure the safety of its employees, says Dion. If the

allegation is serious enough, a common practice is to place the accused perpetrator on paid leave while the investigation takes place.

Following a harassment investigation, there are a number of recommendations an employer should expect.

“It could be as simple as training for the staff, all the way up to terminating with cause,” says Dion.

While it is not mandatory for an employer to follow the investigator’s recommendation, from a legal standpoint it is often a good practice, she says.

As seen in a 2017 court case, employees who are unsatisfied with the reaction to their complaint can sue for the tort of harassment, or could even request another investigation by the Ministry of Labour, all at the expense of the employer.

“If you are an employer and you’re doing what you are supposed to be doing, then that’s fine,” says Dion.

“If not, you’re opening yourself up to liability.”

NOVEMBER 2018

For many victims of harassment, it’s not always clear at first when inappropriate conduct crosses the line.

However, there are steps you one should take even before you’re ready to take action.

“If you think it’s going in that direction, start taking notes,” says Dion. “What happened, when, who was involved, where you were. Keep a detailed journal so you have something to go back to.”

Once a pattern has been established, Dion says the victim should look to their work policies for how to move forward, and consider getting a lawyer for professional advice. If it is a manager or owner accused in the complaint, it is imperative that the victim speak to their human resources department to begin an investigation.

“Filing a harassment complaint in a timely manner is a way of indicating that you’re not OK with it, and may be a more appropriate reaction than verbally objecting in front of all your peers,” says Dion.

Victims also fear being fired if they speak up; a consequence which unfortunately does occur.

In 2017, a woman took her workplace to court after she was fired for filing a sexual harassment complaint against her manager. In instances like this, Dion points out that employers can get into serious legal trouble if they mishandle these types of complaints.

Edelman Ottawa Welcomes

Established Talent

Gordon Campbell Strategic Advisor

We're pleased to add to our growing team.

Former British Columbia Premier Gordon Campbell joins us as a Strategic Advisor and longtime Public Affairs professional Jeff Polowin is our new Senior Vice President Public Affairs (Municipal).

Edelman Ottawa Darcy Walsh

Chris Vivone

NOVEMBER 2018

Senior Vice President and General Manager Ottawa

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Senior Vice President and Deputy General Manager Ottawa

Jeff Polowin

edelman.ca

Senior Vice President Public Affairs (Municipal)

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Home of the News that Matters to you

CFO OF THE YEAR

Mitel’s M&A maestro One of Ottawa’s most respected tech execs, Steve Spooner is the inaugural winner of OBJ and the Ottawa Board of Trade’s CFO of the Year Award

BY DAVID SALI

david@obj.ca

A

office there in the 1980s. After serving as CFO of Wang’s Canadian operations, he returned to his hometown in 1993 to become a vice-president at SHL Systemhouse, then a major tech player with annual revenues of more than $1 billion.

From there, he moved on to CrossKeys Systems, a spinoff of Matthews’ Newbridge Networks, where, in 1997, he spearheaded the company’s initial public offering on the NASDAQ and Toronto Stock Exchange. As a “seasoned business guy,” he was brought in to provide mentorship to a young executive team that included Bruce Linton, now the head of Canopy Growth and Ottawa’s 2018 CEO of the Year.

“Bruce and I worked together for five years and had a lot of fun,” Spooner said.

He then had a two-year stint piloting telecom startup Stream Intelligent Networks through turbulent waters during the dot-com bust of the early 2000s, a job that prompted him to turn down Matthews’ initial offer to join Mitel as CFO after the tech magnate bought back the firm he’d founded and turned it private.

‘THE MODERN CFO’ Following “a fun gig” as chief operating officer of mobile app platform Wysdom in 2002-03, Spooner got another call from Matthews. This time, his answer was yes.

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HOMETOWN BOY An Ottawan through and through, Spooner graduated from J.S. Woodsworth Secondary School before earning his bachelor of commerce degree from Carleton University in 1980.

He started his career at the Ottawa office of Arthur Andersen, then one of the largest accounting firms in the world.

Although he had his heart set on working his way up to partner at a major firm, the pull of the tech industry soon proved too strong to resist.

Spooner did stints in finance at now-defunct computer manufacturers Digital Equipment and Wang, relocating to Toronto when Digital moved its head

Steve Spooner, CFO at Mitel

NOVEMBER 2018

fter initially turning down Terry Matthews’ offer to join Mitel as its chief financial officer in 2001, Steve Spooner just couldn’t say no the second time the Ottawa tech legend came calling.

That was in 2003, after Spooner had spent a couple of years as CEO of a Toronto tech startup and another year as chief operating officer of a mobile app platform-maker when that field was in its infancy. Already with a couple of decades of experience under his belt as a C-suite executive at a number of enterprises, the Ottawa native couldn’t resist the chance to work with one of his most revered business mentors.

“I said, ‘Let’s keep in touch,’” Spooner, 60, recalled during a recent interview with OBJ. “Well, two years later, he came back and said, ‘Come on, let’s do this.’”

It was the beginning of a very fruitful partnership. The firm that then had a top line of about $400 million and was struggling to break even now has annual revenues of more than $1.3 billion and is on track to turn a $200-million profit in fiscal 2018.

Spooner’s role in Mitel’s ascent, along with his wide-ranging background as a tech executive, made him a clear-cut choice to be the first recipient of OBJ and the Ottawa Board of Trade’s inaugural CFO of the Year Award for his financial and community leadership. Spooner was selected by a committee of business and financial leaders that included Mark Noonan of Deloitte Ottawa; Ian Sherman,

a partner at Ernst & Young and chair of the board of trade; Ian Faris, the board of trade’s CEO; and OBJ publisher Michael Curran.

The affable grandfather of four is one of the most highly regarded tech execs in the capital region. His latest accolade was cheered throughout the city’s close-knit tech community, not least by the man who lured him to Mitel.

“Talent is the natural resource of the tech industry ​– the precious metal that drives business growth and success –​ and Steve Spooner has set the gold standard for best-in-class financial leadership and integrity in Ottawa, Canada and the world,” Matthews said.

“I am personally grateful for the contributions he has made to companies I am involved in, and for his close friendship. I congratulate him on this extraordinary and well-deserved honour.”

In 15 years at one of the region’s largest companies, Spooner has partnered with CEO Rich McBee to become a central figure in Mitel’s evolution into a one of the world’s leading cloud communications providers.

“Steve is an outstanding model for what I call the ‘modern CFO,’” McBee said. “He is not only a master of corporate finance, but also has a clear vision of the big picture with a deep understanding of the whole organization – from sales and R&D to supply chain – and a passion for helping shape our corporate growth strategy and mindset.

“It’s difficult to overstate the value of the broader perspective Steve has had on my success and Mitel’s. I can’t think of another person more deserving for the recognition as CFO of the Year, in Ottawa or anywhere else.”

In 2010, Spooner paved the way for the largest IPO in Ottawa history, Mitel’s $147-million debut on the NASDAQ. After helping guide Mitel through numerous acquisitions over the past decade, he was on the other side of the table earlier this year when the firm agreed to be sold to California-based Searchlight Capital Partners in a $2-billion deal that will again take the company private. The transaction is expected to close by the end of December.

Before coming back into the Matthews fold, Spooner had worked for seven employers in his first 20 years in tech.

Clearly, he’s found a home at Mitel.

“My wife (Donna, to whom he’s been married for 41 years) makes the joke that when I get bored, I leave,” he said with a laugh. “I’ve been here 15 years, so boredom has not been an issue for me, and I don’t think it will be in the future. I’m excited about what lies ahead for Mitel, and I hope to be a part of it certainly for the next few years, and we’ll see how things go from there.

“We have a great team here, and I’m hugely proud of what we’ve achieved as a company. We’ve transformed this company and emerged as a leading cloud player. It’s been a great ride.”

Spooner will be honoured at the Best Ottawa Business Awards Nov. 16.

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Merkburn’s property at 4043 Carling Avenue. (Photo provided by Merkburn Holdings)

Practical advice for Ottawa tenants as Kanata market tightens Merkburn Holdings offers tips for tenants

A

NOVEMBER 2018

buoyant Kanata office market, propelled by a resurgent tech sector, is great news for the local economy as firms hire new staff and expand their physical footprint.

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But the tightening market is a double-edged sword for firms in Kanata that are looking to improve or expand on their leased space.

“In the last couple of years, any tenant that needed to grow or find new space in Kanata had an abundance of options,” says Kevin Rougeau, the managing partner of Merkburn Holdings. He adds that landlords aren’t able to accommodate overholds on currently leased space as much as in the past simply due to demand.

Rougeau’s advice is for tenants to start planning well in advance of their current lease expiring, and to be mindful of several key dates in their current agreement.

“Now, with the market tightening, tenants have to plan further ahead.

There has been a significant change in the available product in that marketplace,” he says.

SHIFTING MARKET Vacancy rates in Kanata not long ago hovered around 18 per cent – what many experts would consider a troubled market. But in the past couple of years those rates have tightened to closer to eight per cent.

Mr. Rougeau says a combination of startups, high-tech and government demand, coupled with reduced supply, are making for the tightest commercial real estate market Kanata has seen in years.

He emphasizes that if you want to stay in your current building, it’s crucial not to miss the option-torenew period stated in your lease, which typically starts between six

and nine months before your lease expires.

And if you want to find new space, Mr. Rougeau says it’s a good rule of thumb to start the planning and review process as early as a year to 18 months before the end of your current lease.

“Companies don’t just need space – they need suitable space that meets their business needs and desired corporate image,” he says.

Mr. Rougeau’s firm, a privatelyowned, local company that’s been in business for nearly 50 years, has around 30 buildings and close to a million square feet in its citywide portfolio. In Kanata, Merkburn Holdings has more than 200,000 square feet, with another 30,000-square-foot office building in the development stages. He says they have around 40,000 square feet that’s readily available for lease.

“And that ranges from raw space that can be custom fit to any tenant’s needs, to readily available office space that’s already fit up and is business ready,” he says, adding the firm’s speed of service, local ownership, strong client relationships and ability to help clients adjust in changing marketplaces are some of Merkburn’s strengths.

“We can do complete turnkey services from start to finish. We can help with planning and design, submitting building permits to the city, fit ups, all the way to giving them keys at the end of the day where they can walk in and start running their business.”

Considering your next move?

Merkburn Holdings has a diverse portfolio of office and industrial properties across Ottawa. Check out Merkburn.com for leasing opportunities.

MARKETING

Sens shooting to win over millennial fans In a Q&A with OBJ, new Ottawa Senators chief operating officer Nicolas Ruszkowski and chief marketing officer Aimee Deziel discuss the NHL franchise’s efforts to attract a broader audience to the Canadian Tire Centre

BY DAVID SALI

david@obj.ca

OBJ: What do you see as your

New Senators chief operating officer Nicolas Ruszkowski and chief marketing officer Aimee Deziel.

think our sweet spot is, and if we can get to the point where we rely more on our small-town values and culture to relate to people ... we’ll be better off.

AD: We understand that we need to do a better job of appealing to a much wider audience. I think our organization needs to modernize in a whole bunch of ways.

It needs to modernize in terms of the way that we market to people. It needs to modernize in terms of the way that we are putting on our in-game experience.

You will see investments into equipment and lighting and creative thought behind our in-game experience. We also need to modernize in terms of how we view our fan base. I think we viewed the fan base as being very male and being older.

We know that females consume hockey;

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fantastic experience in Kanata until we get into a downtown (arena).

I think in order to move towards a downtown stadium, we’re going to need much stronger business ties with our partners. We have to create connections.

We have some disconnection currently with our brand, but more importantly with our players. We have a brand-new roster of players, and some of them are getting known faster than others, like Brady Tkachuk. As an organization, we owe it to our fans to create connections between them as players and our fans, so that they know more about who these guys are.

NR: We’re a 1.5-million person version of Green Bay, of the Saskatchewan Roughriders in Regina, etc. That’s what I

NOVEMBER 2018

NR: The first big thing was that from a marketing and sales perspective, we had made the mistake for the first 25 years of the franchise of treating a hockey game and a ticket to a hockey game like a commodity. We lost sight of the fact that it was an experience, it was a reason to believe in the community.

The business operation had also been very reactive to events. There was very little resembling a coherent plan to move us in one direction. The third big need that sort of emerged in my analysis was for the Ottawa Senators to take back some of their own mojo, pride, confidence, pride of place.

We’re open for business. We are going to be very unapologetically aggressive about an ambitious B-to-B strategy that’s designed not to get us sponsors, because that’s too passive and doesn’t demand anything from us, but how to we build partnerships with businesses.

AD: We want to create a world-class, downtown experience in the building we have now so that when we’re moving (to LeBreton Flats), we’re worthy of that station in our city. It’s going to take us some time to get there, and I think we’ll all feel a lot more confident knowing that we’re already providing a really

PHOTO BY MARK HOLLERON

key priorities for marketing the Senators?

I’m a female and I love hockey. We know females play a huge role in terms of fandom, in terms of purchase decisions for families and businesses. And kind of broadening that fan base in terms of age as well. Younger people have a greater affinity to us because they were here at our inception. We need to provide better experiences for them. So we’re looking at how do address the transportation issue while we’re out in Kanata. Many millennials don’t own cars –​ they rely on ride-sharing primarily. How do we put programs together to make ride-sharing easier a​t getting to and from our games?

The Molson Fan Deck is an amazing social experience ​– it’s basically like a club, a bar. We have a DJ, there’s a big bar in the centre, everybody’s standing, they’re socializing, there’s a bar rail. We currently have some of those experiences; we need to add more of them.

Music, we’re looking at new partner.

It’s a huge part of a our in-game experience even though it may not seem that way. Parking and music are incredibly resonant with our fan base.

This year we’ve reduced our prices of parking. I don’t want to make too many promises, but I know there are efforts in place looking at how we can get people out of the parking lots faster. All of those things are on the table for us right now, and I think you’ll see some interesting, fun things happen over the next year in terms of making those pain points a little less painful.

We need to have some fun. There’s almost a very apologetic vibe in the building right now. We’re so quiet and it’s so serious. Hockey is a serious business, don’t get me wrong, but everyone wants to leave the arena and say, ‘Wow, no matter (whether the Sens won or lost), I had fun.’ I think we’ve just lost sight of that a little bit in terms of energy and the opportunity to kind of do things a little bit differently. I think we’ve fallen into a little bit of a rut.

We might come up with some crazy ideas. On the first night, we dropped illuminated beach balls from the roof and people were playing with them.

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We’ve never done it in Ottawa before. We got a lot of great feedback from it; we got some feedback that wasn’t so great. But I think ultimately what I’m hoping fans are going to start to realize is we’re going to try some things that we’ve never tried before.

investment, we benefit from it and they benefit from it. We already know that over the first four games of the year, they’ve almost doubled the revenue in that space and they’re tracking to exceed the revenue of the Molson Fan Deck on a piece of square footage that’s roughly a third (the size).

OBJ: What do you see your

OBJ: The Ottawa Redblacks have

partnerships with businesses looking like?

a huge hit with fans since the CFL’s return to Ottawa. What can you learn from their marketing approach?

Continued from previous page

NR: I’ll give you a tangible example of how certain partnerships have worked really well. We just signed the Hard Rock casino as a partner. The partnership comes alive where in exchange for Hard Rock’s investment, the team makes an investment –​ a capital investment in radically transforming square footage in the arena into a much more premium, social gathering place that doesn’t have the constraints of hockey seating, that feels a lot more like a bar and a lounge and becomes a place where you have a good time. The reason that kind of partnership works is because at the end of the day, they’ve made their investment, we’ve made our

AD: What I like about what they’ve done with their merchandise mix is they’ve looked at trends from a fashion perspective; plaid was very trendy and they’ve picked up on it. We haven’t been as proactive in terms of looking at fashion trends. And then lifestyle. I think we’ve done a great job of creating a jersey culture, but in terms of wearing Sens merchandise and wearing your Senators pride in other areas of your life, we haven’t made that very easy with our current merchandise mix. I feel they’ve done a great job and we will be learning from their efforts.

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OBJ.CA

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ow did NetFore Systems fuel their organization’s growth and become one of Canada’s fastest growing companies? By turning a successful service into a new product.

Ottawa’s NetFore Systems partnered with a local doorto-door marketing organization and developed a mobile technology to track volunteer progress and collect real-time data. With this core technology and a strong development team, NetFore secured a significant contract to create an electoral database management system that tracked door-to-door engagement and collected voter issues. The program was further expanded to help elected officials and small municipalities handle daily constituent interactions.

Current customers include the federal New Democratic Party (NDP), multiple provincial parties, elected officials, and municipalities.

“We started the company with a strategic goal to be self-funding through services work, but wanted to invest the proceeds of that in technology,” says Ken Workun, CEO of NetFore Systems. “Once we had a beachhead market niche, we looked around to see how else we could apply that technology. We have progressed from door-to-door campaigning, to election management, to post-election engagement, to municipal issues and job management.”

The strategy paid off. NetFore Systems once again ranks as one of the National Capital Region’s fastest-growing companies. It recently appeared on Canadian Business’ Growth 500 list, with a five-year revenue jump of 195 per cent.

While high growth brings new opportunities, it also creates challenges. One such challenge is attracting top talent.

SCALE

From left to right: Tim Skelly, VP Strategy and Business Operations Stratford Managers Corporation.

Allen Carpenter, President NetFore Systems. Ken Workun, CEO NetFore Systems. Photo: Mark Holleron

“They must have great technical skills, but we also require staff who enjoy venturing out,” says NetFore Systems’ president Allen Carpenter. “As a services company we differentiate ourselves by offering a team that understands our clients needs and are a pleasure to work with – that’s challenging.”

Skelly says one of the best ways to push past the plateau is to focus on a strategic plan.

“Optimizing your business process or embracing a scalable new business model may be necessary to maintain organizational effectiveness or achieve stronger financial results,” says Skelly. “A strategic plan that focuses on execution and communicates the plan’s vision down to the employee level is something that can take the organization to the next level.”

It can be difficult for executives to carve out time for strategic initiatives, but Skelly says it is essential for the organization’s sustainability.

“We want to let them know they are not alone in their business challenges, that there are processes and organizations that can assist them and that there are examples and case studies for those that have broken through the plateau.”

Break Through the Barriers to Growth

PUSHING PAST THE PLATEAU

Tim Skelly, vice-president of strategy and business operations at management and consulting firm Stratford Managers, says NetFore’s challenges are common in highgrowth organizations. He suggests focusing on cultural fit over traditional skills.

“I noticed a huge shift in thinking over the years from pure skills to the right cultural fit,” says Skelly. “We find people who can code, but how do you know that they’re going to fit into this organization with these teammates around you? The cultural fit will probably have a bigger Learn more about how Stratford Managers helps impact on their success and failure than the resume.” organizations and their leaders grow,and improve and What other challenges lie ahead?

This is one of many Stratford Managers specializes in helping businesses accelerate performance achieve questions explored in a new research project from Stratford transform at https://stratfordmanagers.com. scale. We’re trusted advisors and expert bench strength for many of Ottawa’s leading Managers and Invest Ottawa. They hope to create a white companies. Take the first step to the next level. www.stratfordmanagers.com/scale To learn more about NetFore Systems, paper, presentation, and other publications to help guide visit www.netfore.com organizations.

Sales | Marketing | Finance | Human Resources | Operations | Intellectual Property | IT “If you go to the gym three days a week and do the same exercises, at a certain point you will reach a plateau. You can’t get past that plateau unless something changes,” says Skelly. “We want to develop some tools, tactics and capabilities for companies so they can get past the plateau.”

Consulting. Coaching. Virtual/Interim Management.

EYES ON Corporate Governance

A special publication of the Institute of Corporate Directors Ottawa Chapter | NOVEMBER 2018

Looking to the future Daina Mazutis brings expertise in strategy and sustainability to new role at the Directors Education Program of the Institute of Corporate Directors

ICD Ottawa in the community Page 4

Photo by Mark Holleron

David Emerson talks trade Page 8 Recruiting for Crown boards Page 10

NOVEMBER 2018 | eyes on corporate governance A special publication of the Institute of Corporate Directors Ottawa Chapter

2

Optimize your performance

IN THE BOARDROOM. ICD-ROTMAN DIRECTORS EDUCATION PROGRAM

Canada’s leading program for DIRECTORS. “The ICD-Rotman DEP provides directors with an overview of the role they should play in ensuring good governance through a variety of real-life boardroom topics, as well as practical guidance tools and resources. Just as importantly, the interaction with other directors and the open discussions in the classroom provided all of us with the confidence to ask the difficult questions. I also enjoyed the opportunity to meet a great set of peers and to step back from my day-to-day to think more broadly about what I wanted to accomplish as a board member going forward.”

The Directors Education Program (DEP), jointly developed by the Institute of Corporate Directors and the University of Toronto’s Rotman School of Management is offered nationally at Canada’s top business schools. Since the launch of the DEP, over 5,500 directors have completed the program, taking the first step towards acquiring their ICD.D designation.

APPLICATION DEADLINE: March 21, 2019 MODULE I: June 16 -18, 2019 MODULE II: Sept. 29 - Oct. 1, 2019

CITY: Ottawa

MODULE III: November 3 - 5, 2019 MODULE IV: January 26-28, 2020

STEPHANIE COYLES, ICD.D

TO APPLY OR TO VIEW ALL AVAILABLE OFFERINGS ACROSS THE COUNTRY, VISIT ICD.CA/DEP

DIRECTOR, METRO INC., SUN LIFE FINANCIAL

Jointly developed by:

ICD-ROTMAN NFP GOVERNANCE ESSENTIALS PROGRAM

Better serve your not-for-profit organization. AND ITS MISSION. “The ICD-Rotman NFP Program is an excellent preparatory course for those new to governance—not-for-profit or otherwise. The instructors were engaging and expertly illustrated theory through real-life experiences. The course material covers broad areas that are critical to today’s boards; covering essentials for those new to board work, while rounding out and enhancing the effectiveness of experienced directors.”

MARGIE PARIKH, MBA, CFP BOARD MEMBER, BC OIL & GAS COMMISSION, CISV INTERNATIONAL FORMER CHAIR, MOUNTAIN EQUIPMENT CO-OP

The NFP program is the only national program of its kind and provides learning that can be immediately applied. Participating directors in this premier course will focus on key accountabilities and responsibilities for NFP directors and leaders through the extensive use of teambased, board-simulated learning to ensure participants benefit from the experiences of both faculty and their peers.

PROGRAM DATES: March 25 - 26, 2019 APPLICATION DEADLINE: January 28, 2019 CITY: Ottawa TO APPLY OR TO VIEW ALL AVAILABLE OFFERINGS ACROSS THE COUNTRY, VISIT ICD.CA/NFP Supported by:

A LIMITED NUMBER OF RBC FOUNDATION SCHOLARSHIPS VALUED AT THE FULL FEE OF $2,500 ARE AVAILABLE FOR EACH OFFERING.

icd.ca

Jointly developed by:

In-depth learning.

BY DIRECTORS. FOR DIRECTORS.

™

BOARD OVERSIGHT OF STRATEGY (STRATEGY)

CITY: Ottawa COURSE DATE: February 20, 2019 APPLICATION DEADLINE: January 23, 2019 FOR MORE INFORMATION OR TO APPLY, VISIT ICD.CA/STRATEGY

LEAD INSTRUCTOR

DIRECTOR-IN-RESIDENCE

KEN SMITH

SUSAN ST. AMAND

Ph.D, MBA, ICD.D

FEA, ICD.D

CHAIR, ACCERTA CHAIR, THE ARTHRITIS SOCIETY DIRECTOR, ONTARIO MD

PRESIDENT, THE SIRIUS GROUP INC.

Developed in partnership

by ICD and CPA Canada

CROWN DIRECTOR EFFECTIVENESS (CROWN) This course introduces directors to the unique circumstances and challenges that often exist when serving on government controlled entities. It examines strategies, best practices and approaches that directors can take when dealing with government shareholders, multiple stakeholders, ministers and the bureaucracy and political reactions.

CITY: Ottawa COURSE DATE: April 30, 2019 APPLICATION DEADLINE: April 2, 2019 FOR MORE INFORMATION OR TO APPLY, VISIT ICD.CA/CROWN

LEAD INSTRUCTOR & NATIONAL ACADEMIC DIRECTOR

RICHARD DICERNI, CM, ICD.D DIRECTOR, ALBERTA HEALTH SERVICES FORMER DEPUTY MINISTER, INDUSTRY CANADA FORMER DEPUTY MINISTER, ALBERTA EXECUTIVE COUNCIL

HUMAN RESOURCES & COMPENSATION COMMITTEE EFFECTIVENESS (HRCCE) This course was created to help directors develop deeper insights into issues such as CEO succession planning, executive compensation and incentive plans, human capital development beyond the CEO, and dealing with increased scrutiny of executive compensation plans by activist shareholders and proxy advisors.

CITY: Ottawa COURSE DATE: May 15, 2019 APPLICATION DEADLINE: April 17, 2019 FOR MORE INFORMATION OR TO APPLY, VISIT ICD.CA/HRCCE

CONTACT THE ICD AND APPLY TODAY. 1.877.593.7741 x228 I education@icd.ca I icd.ca

LEAD INSTRUCTOR

LEAD INSTRUCTOR

CAROL STEPHENSON

GEORGES A. SOARÉ

O.C.

ICD.D

DIRECTOR, GENERAL MOTORS COMPANY, INTACT FINANCIAL SERVICES INC., MAPLE LEAF FOODS INC.

EXECUTIVE VICE PRESIDENT & PARTNER, HUGESSEN CONSULTING

A special publication of the Institute of Corporate Directors Ottawa Chapter | NOVEMBER 2018

This course will help directors successfully engage in the strategic oversight process. Developed in partnership with CPA Canada and based on CPA Canada’s Overseeing Strategy: A Framework for Boards of Directors, participants will learn how to apply the four-phase framework, when to get involved and how to effectively participate in board oversight activities in different situations and business environments.

eyes on corporate governance

ICD NATIONAL SHORT COURSES

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NOVEMBER 2018 | eyes on corporate governance A special publication of the Institute of Corporate Directors Ottawa Chapter

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Good governance for changing times

T

his fall in Ottawa will mark a new era for Canadian business, raising the level of uncertainty in more ways than one.

On Oct. 17, Canada officially brought an end to almost a century of cannabis prohibition, with implications not just for directors and the business community, but all of society.

In addition to this cultural shift, a breakthrough was recently reached in updating the North American Free Trade Agreement (NAFTA). Even a successful finalization to the negotiations this fall will not quiet the questions in boardrooms across Canada: How can Canadian business continue to thrive in the face of lingering uncertainty over cross-border trade relations? How do Canadian firms position themselves to remain competitive in a time of rising protectionism?

To explore the current issues facing boards and directors, the Ottawa Chapter of the Institute of Corporate Directors (ICD) has partnered with the Ottawa Business Journal to bring readers this special supplement. ICD is a national not-for-profit, member-based association with more than 13,000 members across Canada.

As Canada’s go-to resource for the director community, ICD welcomes directors both seasoned and emerging, as well as C-suite and senior executives who aspire to serve on boards in the for-profit, notfor-profit and Crown sectors. ICD’s aim is simple: To build better boards that make better decisions for a better Canada.

Cannabis legalization and NAFTA are textbook cases of the need for that good governance.

While some in the press have written tirelessly about the coming “green rush” as investors flock to the cannabis sector, the reality is far more nuanced.

The federal government has been clear on its plans for strict regulation of new cannabis products. While regulation is not new to the pharmaceutical sector, most cannabis businesses are in their first year of operation and will need to successfully navigate the many new rules of the game. Boards will need expertise on everything from financing to regulatory compliance. For industries where substance use is a top-of-mind safety

Sharing diverse opinions and perspectives provides the opportunity for better decisions, better boards and a better Canada

Susan St. Amand is the co-chair of the Ottawa ICD chapter.

and operational issue, cannabis legalization also brings new questions for the board and challenges to senior management.

Because the legalization of cannabis is only starting to be considered by most other countries, the impact of shifting U.S. attitudes on trade will be limited for this sector. For other Canadian firms, however, rising U.S. protectionism is likely to have a bigger impact. Old truisms about inexorable global integration and the efficiency of far-flung supply chains will need to be re-thought. Boards of directors for tradeexposed Canadian firms will need to revisit assumptions about how – or even whether – they serve the continental market from Canada.

The Ottawa ICD Chapter works to create a safe space for dialogue and reflection on these and many other issues, bringing together directors from all sectors to learn and share knowledge and experience.

Sharing diverse opinions and perspectives provides the opportunity for better decisions, better boards and a better Canada.

In addition to hosting regular events in

Ottawa, ICD also collaborates with the Telfer Centre for Executive Leadership at the University of Ottawa, and the Rotman School of Management at the University of Toronto, to deliver locally the flagship Directors Education Program (DEP). The next DEP in Ottawa begins in the first six months of 2019.

ICD also offers short courses on issues of interest to directors. For 2018-19, courses on offer include board oversight of strategy, the governance of not-for-profit corporations, director effectiveness for Crown corporations, and human resources committee effectiveness. ICD also provides online resources to support boards and directors in their work.

“If you are a director of a not-for-profit, a Crown corporation, a family enterprise, a public company, or anywhere in-between, our forums provide a great opportunity to dialogue with leaders and to collaborate on strategic solutions for the common challenges that affect our organizations today,” says Susan St. Amand, ICD.D, the co-chair of the Ottawa ICD chapter.

ICD Ottawa chapter executives Simon Kennedy, ICD.D (Co-chair) Susan St. Amand, TEP, FEA, ICD.D (Co-chair) Roxanne Anderson, MBA, FCPA, FCA, ICD.D Jim Brockbank, MBA, ICD.D Kim Butler, CPA, CMA, ICD.D Peter Charbonneau, MBA, FCPA, FCA, ICD.D Patrick Coady, CPA, CA, CBV Jacqueline Gauthier, CPA, CA, ICD.D Andrea Johnson, LLB Peter Nadeau, LLB, ICD.D Glen Orsak, MBA Ian Sherman, FCPA, FCA, ICD.D Louise Tardif, ICD.D

highlights

T

he Institute of Corporate Directors and Canada 2020 partnered earlier this year to assemble a group of leading experts and businesspeople from both sides of the border to discuss the questions raised by U.S. President Donald Trump’s tax cut – hailed as one of the largest in history.

The discussion, held at the Rideau Club,

was moderated by Bluesky Strategy Group principal Susan Smith and featured: • Mark Wiseman, the global head of active equities and chairman of BlackRock Alternative Investors; • Ambassador David Jacobson, vice-chair of BMO; and • Annette Verschuren, OC; chair and CEO, NRStor

Save the date

Upcoming ICD Ottawa events

11/13/2018

Global economic forecast and networking reception

Location: EDC Format: Evening reception

How the unique governance structure of private and closely held companies contributes to their success Location: Rideau Club Format: Breakfast

Diversity, gender equity and technology

Location: Rideau Club Format: Dinner

June 2019

Member appreciation networking event

Location: KPMG Format: Evening reception Learn more about these and other events by visiting ICD Ottawa’s event calendar at https://www.icd.ca/ Events/Upcoming-Events/OttawaChapter.aspx

01/15/2019 Blockchain: Not just for digital currencies Location: KPMG Format: Evening

03/20/2019

Growth by acquisition from a board perspective Location: KPMG Format: Breakfast

04/16/2019

Business strategy in the age of uncertainty: The role of the board of directors Location: Rideau Club Format: Dinner

Director Journal Director Journal is the official publication of the Institute of Corporate Directors. The latest edition is available online to members as well as in Air Canada lounges

A special publication of the Institute of Corporate Directors Ottawa Chapter | NOVEMBER 2018

12/11/2018

05/21/2019

eyes on corporate governance

A taxing question: ICD Ottawa explores the impact of the Trump tax cut on Canada

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Telfer’s Daina Mazutis brings background in strategy, sustainability to new role at Directors Education Program Photo by Mark Holleron

NOVEMBER 2018 | eyes on corporate governance A special publication of the Institute of Corporate Directors Ottawa Chapter

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‘There are no other programs like this’

By Rosa Saba

C

orporate boards are facing an increased responsibility – not to mention public scrutiny – over issues such as sustainability and social impact. Educating the director is part of that shift, and the training program for CEOs and board members by the Institute of Corporate Directors has been helping directors to ready themselves for this responsibility.

With this in mind, the Directors Education Program (DEP) at the University of Ottawa is bringing in a director with an eye to the issues of the future.

Daina Mazutis, a professor with the Telfer School of Management, holds a PhD in Business Administration focused on strategy and spent three and a half years teaching at the International Institute for Management Development in Switzerland. She’s been involved with the program since it first began in Ottawa because of her executive education experience, as well as her passion for improving board leadership.

Mazutis says directing Ottawa’s DEP is a great opportunity for her to further her research and learn from some of the city’s top executives,

adding that one of the most important skills developed in the program is the ability to ask strategic questions.

“From a governance perspective, the board’s job is to question management,” she says.

“There are no other programs like this for boards … It’s very unique for Ottawa.”

At the forefront Mazutis says the program provides a broad overview of strategy capabilities with a focus on certain forthcoming issues including diversity and sustainability. Using a case-based method of learning, it encourages directors to take a big-picture view, and to ask the right questions at the right moment with skills that go beyond specific industries.

The DEP began 15 years ago at the University of Toronto’s Rotman School of Management, and is now in 11 institutions across Canada.

Richard Powers, the national academic director of the DEP, says the program began at a convenient time. He says the issue of governance drew a higher profile around that time due to a few governance scandals, leaving the responsibility of boards under public scrutiny.

“I believe in education for making organizations a force for good.”

– Daina Mazutis, co-director, DEP “Director’s education really took off and we were at the forefront,” he says. “There is an increased focus on board accountability. And as a result of that, the need for director education has increased significantly.”

Michael Parent, a visiting director from the Vancouver program, led the first two rounds in Ottawa. Mazutis took the program as well as taught the sustainability section, and now the third iteration will be co-directed by Mazutis and Powers. For the fourth program, Mazutis will take on directorship alone, and hopes to teach strategy in addition to sustainability.

Powers says it’s rare to find someone with both a strong academic background and the

professional skills to teach a room full of CEOs. “With Daina, we found both,” he says.

“We’re really looking forward to working with her … she’s the future of that program.”

A force for positive change For Mazutis, the opportunity to direct the program is one that fits right in with her research interests and experience. She studies governance and corporate responsibility, with a focus on some of the key issues facing today’s boards and how addressing those issues can help inform the board’s strategic future.

“I was always struck by how the leadership of an organization can directly influence the strategy,” she says, adding that she sees business as a force for positive change in the world. The world’s largest companies have GDPs larger than that of many countries, and Mazutis says that means their responsibility lies beyond their shareholders – today’s boards need to think about the ethical, environmental and social impacts of their decisions.

“If you want to solve the world's biggest problems, you have to get business on board,” she says. “I believe in education for making organizations a force for good.”

Continues on page 12

SPONSORED CONTENT

THESE SHERPAS WALK THE TALK

The first step is to have strong advisors Margo Crawford and Claude Haw frequently have to explain to a business owner that an external advisory board is about accelerating performance, not ceding control.

Assuming, of course, that you have assembled a good team of advisors.

Crawford is the Founder and CEO of Business Sherpa Group (BSG) and Haw is an Executive Leader. For the past decade, this business management solutions firm has specialized in providing embedded business teams and strategic services to small and mid-sized enterprises (SMEs).

Their sweet spot is for-profit and not-for-profit organizations with fewer than 100 staff. Owners and managers in this weight class often find themselves caught up in the daily minutiae of managing cashflow, employees and deliverables. They find it hard to step back, look up and think strategically.

“Once an organization reaches a certain size, it just makes sense to have some kind of external board, whether a formal governance Board or an advisory board, to bring the discipline and arm’s-length perspective that increases efficiency and provides better risk oversight and management,” said Haw. “Investors, including banks, are a lot more comfortable knowing there is a board providing that outside governance,” Crawford added. “It provides assurance that there is external oversight to help the organization reach a higher level of performance and help mitigate risk in their investment.”

FINDING THE SHOE THAT FITS The Organization for Economic Cooperation and Development has concluded that “better corporate governance of SMEs is positively linked to their growth and long-term sustainability.”

However, governance practices that work for an established multinational corporation don’t necessarily fit for an SME. Haw and Crawford advocate the idea of “light governance” for smaller organizations, beginning with an advisory board without the fiduciary responsibility of a fullblown governance board.

It’s about giving an owner/executive the support to tackle the organization’s challenges in bite-sized pieces.

Identify three to five burning issues, then establish a game plan for what can be done this week, this month or this quarter.

“Investors, including banks, are a lot more comfortable knowing there is a board providing that outside governance” Margo Crawford

BUT HOW DO YOU ASSEMBLE A GREAT BOARD? Crawford and Haw run into some common challenges with SMEs that are trying to assemble an external board.

Go beyond friends and family: Owners and management teams often don’t reach beyond their immediate networks to create a board. The result can be a lack of the experience and diversity that is needed to effectively help the organization.

Understand your top issues: By identifying the organization’s top three to five issues, you have the criteria to screen for the knowledge and skills that are required on the board.

Money talks: Paid advisors have skin in the game. Even if it is a small amount, it puts a greater onus on both sides to make the most effective use of everyone’s time and capabilities.

Terms of reference: Formalizing the relationship with concrete terms of reference ensures everyone is on the same page about expected outcomes, time commitments and the grounds on which the relationship can be terminated.

A special publication of the Institute of Corporate Directors Ottawa Chapter | NOVEMBER 2018

Effective governance accelerates SME performance

eyes on corporate governance

Business Sherpa Group’s Margo Crawford and Claude Haw

Crawford and Haw have both earned their ICD.D designations from the Institute of Corporate Directors (ICD).

ICD is a not-for-profit with some 12,000 members across Canada that serves as a go-to resource for directors and boards. Earning an ICD.D designation demonstrates “a lifelong commitment to excellence in the boardroom, a desire to stay current, and to be a more effective director.”

“For me, ICD provided confirmation of what best practices look like and gave me access to a network of amazing people, both the educators and the other program participants,” Haw said.

“The education is top-notch,” Crawford said.

“I’ve since had to deal with situations that match the case studies they take you through and the ethical issues they challenge you with. ICD is really upping the quality of the board members available to organizations in Canada.”

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NOVEMBER 2018 | eyes on corporate governance A special publication of the Institute of Corporate Directors Ottawa Chapter

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Trade in the era of Trump: An interview with David Emerson

A

fter a nearly three-decade absence from the headlines, trade negotiations are again front-page news, thanks to President Trump's focus on the creation of USMCA and his withdrawal of the United States from the Trans-Pacific Partnership trade pact.

How should Canadian boards be responding to these developments? To help answer that question, we caught up with the Hon. David Emerson, Canada’s former Minister of Industry and International Trade, on a recent visit to Ottawa.

A past member of the board of the Institute of Corporate Directors (ICD), David is one of Canada’s most seasoned corporate directors.

He currently chairs the board of Maple Leaf Foods and recently joined the board of Deloitte Canada.

How are Canadian management and boards re-thinking trade in this new era of protectionism?

The global supply chains developed over the past 30 years are suddenly at risk. For decades, we sold Canada as the country to invest in and transport product through to gain access to the U.S. and Mexican markets. In the era of “Make America Great Again,” that concept

has become particularly shaky. The issue is uncertainty: A known tariff is problematic, but it is at least clear and quantifiable.

Border risks, however, are increasingly nebulous, uncertain and not easily measured.

To be on the safe side, business executives overcompensate, the result being that border risk is now becoming a deadly source of competitive disadvantage in the deployment of capital. Increasingly, companies are faced with moving people and assets to the U.S. side of the border as a risk mitigation matter.

Are Canadian boards well equipped to be having those conversations about mitigating border risk?

Canadian boards are starting to appreciate the kinds of skills they need to understand the implications of possible strategic scenarios.

Those aren’t the skills you would traditionally have in the boardroom. In the old days, being good at running a company and interpreting financial statements were the core skills for many boards.

Today, that’s not enough. Companies are increasingly bringing people into the boardroom who are more broadly knowledgeable about global trends, history, national governance, cultural contexts, technology and other diverse

perspectives. Former diplomats, public servants and politicians are increasingly in the board mix, as are various other forms of diversity that broaden the perspectives around the table.

Say that I am the board chair. I know we need to wrap our head around these issues, but trade policy is not something the board has spent much time thinking about. How do we start?

Internationalization strategies are usually specific to the nature of the company and its business. For example, engineering companies trying to win contracts in foreign jurisdictions have to consider the business culture of the host country, where the risks around corrupt business practices can give rise to legal exposure back home and make competitive success more difficult. If you are a manufacturer for the export market, you need to understand the risks to intellectual property, regulatory risks that can often be a form of behind-the-border protectionism, and of course you need to understand the more traditional trade risks at the border. So you need people with in-depth knowledge of the country you are dealing with: what it’s like to invest in the country, do business there, strike partnerships, resolve

David Emerson commercial disputes, and to understand cultural practices and legal frameworks.

Can the board just buy the advice it needs off the shelf? Or do you need people on the ground?

You can buy in-depth information on political, legislative and regulatory matters from consultants and lawyers. But you can’t really outsource the business judgement that converts that information into hard decisions on deployment of capital. For that you must have internal decision capacity in management and on your board of directors.

Sponsored Content

eyes on corporate governance

Ensuring sound stewardship of Canada’s airspace

By the 1990s, Canada’s air navigation system (ANS) was in need of change.

Despite the excellence of ANS personnel and its safety record, the grind of government bureaucracy was no longer up to the challenge of maintaining infrastructure, investing in new technology and keeping costs under control.

Key stakeholders – government, airlines, employees and representatives from general aviation – agreed that change was needed.

After years of collective stakeholder effort, NAV CANADA in 1996 purchased the ANS from the Government of Canada for $1.5 billion. The ANS would now be operated by a nonshare capital corporation. This ensured a focus on providing great service to aviation, rather than generating a return for shareholders.

Strong and collaborative governance A board of directors would ensure sound governance and operate independently of management. While directors might be elected by specific stakeholder interests, they could not represent those interests, and had to agree to abide by the common-law fiduciary duty to act honestly, in good faith and in the best interests of the corporation.

Twenty-two years later, this model has proven itself as the way to ensure an ANS that is safe, efficient, costeffective and innovative. It has become the envy of other nations. Why then, does NAV CANADA’s model remain unique?

“It has worked in Canada because the stakeholders collectively decided it was a better way to do things,” said Neil Wilson, President and CEO of NAV CANADA. “You need that consensus among all stakeholders and the political will to make it happen.”

Why does it work for Canada?

Case in point – U.S. lawmakers have attempted to privatize America’s Federal Aviation Authority (FAA), based on the Canadian model, only for that legislation to fail due to lack of support.

“A collective decision was made in Canada to design a governance structure where the concerns of all stakeholders could be brought to the table, on the understanding that they would all receive better value than they had in the past,” Wilson said. “The strongest attribute of this model is that all the stakeholders, while they may have different interests and concerns, can have all those interests and concerns addressed through what it is essentially a cooperative.”

spearheaded by NAV CANADA. This network will create a digital net so air-traffic controllers can always know the precise locations of aircraft flying over the 70 per cent of the world that is not covered by ground-based systems.

“This will provide aircraft with better route options, altitudes and speed adjustments in real time, to make flight operations more efficient, cut fuel costs and reduce greenhouse-gas emissions,” Wilson said.

A world leader for innovation

Lessons learned

The decision was made at the outset to handle new technology development internally, with teams of engineers, air traffic controllers and other service specialists working together. The world-class systems and solutions that resulted soon attracted interest from abroad.

“The systems we now use in about 120 facilities across Canada are the same ones being used in every tower of every airport around London, in Copenhagen and Mumbai, and in a host of other places,” Wilson said.

A year ago, the first of 66 new satellites were launched as part of Aireon LLC, an international joint venture

What has NAV CANADA learned about making such an innovative “stakeholder cooperative” work?

• There has to be the will for everyone to come together.

• There must be recognition that not every particular stakeholder can have a say in things, but collectively there can be a structure that ensures they will receive better value.

• A system of checks and balances must be incorporated to prevent conflicts of interest.

• No one stakeholder can dominate, and all must be willing to engage with an organization that approaches issues from a collaborative standpoint.

A special publication of the Institute of Corporate Directors Ottawa Chapter | NOVEMBER 2018

Why NAV CANADA’s unique ‘stakeholder cooperative’ works

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NOVEMBER 2018 | eyes on corporate governance A special publication of the Institute of Corporate Directors Ottawa Chapter

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“The Crown requires candidates that are adept at balancing both a public policy and a commercial objective.”

The National Arts Centre is one of more than a dozen federal Crown corporations headquartered in Ottawa-Gatineau.

– Janine Sherman, deputy secretary to cabinet of senior personnel and public service renewal, Privy Council Office

The art of recruiting for Crown boards Forget pure patronage. Today's recruiters are seeking experienced professionals who can work with all levels of government and who have a strong sense of community

By Jeff Buckstein

R

ecruiting the right candidate to serve on a Crown corporation’s board of directors is no simple task. It requires finding a highly skilled professional who, among other attributes, can thrive while operating under the intense glare of public scrutiny, is able to answer to multiple stakeholders who often have different agendas, and is motivated to do so for relatively little pay.

“Anybody coming in thinking ‘This is a government agency and this is an easy thing to do’ should really consider that working in the government has its own dynamics.

Crown corporations are, for the most part, sophisticated, complex organizations,” says Elaine Roper, a Toronto-based partner in the national board practice with Odgers Berndtson, an international executive search firm.

Sophisticated methods An evolution in Crown board recruitment over the past 20 years has resulted in a more professional process, relying to a greater extent on a skills matrix, and that process has also

become more transparent, says Richard Dicerni, Academic Director of the ICD's Crown Director Effectiveness course.

There are also many distinct features that need to be taken into consideration when searching for the right candidate for a Crown board.

“A key difference between recruiting for a director in a Crown corporation compared to a private company is that the Crown requires candidates that are adept at balancing both a public policy and a commercial objective,” says Janine Sherman, deputy secretary to cabinet of senior personnel and public service renewal in the federal government’s Privy Council Office.

Crown directors also need to have a broader measure of results than, say, directors of a publicly traded company in the private sector who can rely on traditional measurement metrics such as stock price, market share or earnings.

For example, the board and management of various provincial lotteries across Canada are expected to generate revenue for health and other community services. But that goal must also “be balanced against the societal need to

not foster or encourage a total gambling culture within the province,” Dicerni explains.

Balanced and independent The diversity of a Crown corporation board is also important. Gender, age, language, ethnicity, disability and sexual orientation are among the key categories that reflect the makeup of Canada.

Geography is also often important. Federal Crown corporations, in particular, need representation from across the country.

“What you’re trying to get at is not tokenism, but rather to get as many different perspectives … into the discussion about how the business is run,” says Roper. Independence, both in fact and appearance, is another important factor for recruiters to put near the top of their list.

“There’s much more media and political scrutiny in terms of directors who are recruited and appointed compared to in the past. (For example), there’s less and less tolerance for pure patronage – people who belong to very specific political stripes,” says Sheldon Mahabir, director of board opportunities for the Institute

of Corporate Directors (ICD) in Toronto.

The federal government’s ethical guidelines as outlined in its “Open and Accountable Government” guide require that appointees to a federal board need to ensure that any partisan political activity in which they engage does not affect their duties as a director, nor must there be any public perception of a conflict, explains Sherman of the Privy Council Office in Ottawa.

Recruiters have found that gauging a prospective board member’s activities outside of work can provide valuable insight into whether they might be a good fit as a director of a Crown corporation.

“We spend a lot of time looking at what kind of work they do in the community,” says Jackson. “Do they volunteer? Do they have any kind of sense of community for themselves? Is it just about their professional career, or can you see from their résumé and then talking to them that they actually think about the world outside them?” she says.

This article originally appeared in Director Journal from the Institute of Corporate Directors.

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A special publication of the Institute of Corporate Directors Ottawa Chapter | NOVEMBER 2018

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11

Meet Daina Mazutis

NOVEMBER 2018 | eyes on corporate governance A special publication of the Institute of Corporate Directors Ottawa Chapter

EDUCATION ICD.D Designation, Board of Directors Certification

12

PhD, Business Administration (Strategy), Western University MBA, University of Ottawa EXPERIENCE Endowed Professor of Ethics, Responsibility and Sustainability, University of Ottawa Telfer School of Management

A focus on family enterprises Family businesses are an important contributor to the Canadian economy, and yet research into the governance of family businesses – the processes, structures and decisions that enable them to succeed – is relatively scarce.

In an effort to begin to understand the approaches that family businesses take to

governance, and to launch a broader ongoing conversation, the Institute of Corporate Directors and the Clarkson Centre for Board Effectiveness (CCBE) at the University of Toronto’s Rotman School of Management launched the Private Family Enterprise Governance Survey.

Professor of Strategy, Leadership and Ethics, IMD Business School

Both fiduciary

Media/marketing strategist, 10 years

and advisory board

On the right path

The Directors Education Program consists of four three-day modules, two months apart. Each day is a full nine-to-five session with a broad array of speakers from various sectors and companies. The director teaches some of the sessions, as well as facilitates board-style “director dilemmas,” where participants discuss real-world scenarios in small groups.

Participants must take the first and last module in the same city, but can travel to other cities for the second and third. The program is approximately 80 per cent the same across Canada, with about a 20 per cent variance for local issues.

After an examination, participants receive the ICD.D designation.

One-third of our survey participants indicated they have no board structure.

Lack of structure doesn’t necessarily equate poor governance, but governance structures often grow as family businesses mature.

Continues from page 6 Mazutis says the program provides perspective and increased board readiness, as well as an incredible network of diverse CEOs, directors and experts. Everyone who takes the course is already an expert in their field, she says, and participants learn from one another just as much as they learn from the lecturers.

“You’ve got a really interesting group of people getting together that care about governance in Canada,” she says. The opportunity to test real-world problems and find solutions with other directors is one that broadens the perspective of participants.

“The biggest benefit of this course is the network that you make,” she says. “It’s a safe space to practice being on a board.”

Though Mazutis’ research focuses primarily on sustainability, she says that’s just one of the issues at the forefront of board responsibility today. Cybersecurity, sustainability, diversity, #MeToo – “All of these things have implications for boards,” she says. “Boards are being held accountable.”

29%

33

%

The course

No fiduciary

or advisory board

17

Their report focuses on the evolution in formal and practical governance policies from generation to generation and brings researchers one step closer to understanding the diversity of governance needs among family businesses.

Here are some of the key findings:

%

21%

Fiduciary board

Advisory board

With age comes maturity Generational shift is a reliable predictor of the adoption of family enterprise governance structures and processes. Advisory boards are excellent at transitioning family businesses toward formal governance, and many companies retain their advisory boards even after they implement fiduciary boards.

Advisory board only 31 years

1

st

Advisory boards are usually adopted in the first generation, within the company’s first 30 years.

no boards 36 years

Advisory boards... by the numbers

fiduciary board only 54 years

both fiduciary & advisory boards 61 years

% 34 44 63 %

of all advisory boards are paid, at an average of $27,000 in cash per year.

%

of advisory board members are women, compared to 24 per cent for fiduciary boards.

of advisory boards are chaired by family members

The survey was produced in partnership with the ICD and the Clarkson Centre for Board Effectiveness at the Rotman School of Management.

This data is based on online surveys from 118 individuals, each representing unique family businesses.

Read the full report at http://bit.ly/ICD-CCBE.

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NOVEMBER 2018

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ttawa’s defence and military communities are no strangers to collaboration and physical work. But building a house from the ground-up is a unique team-building challenge like no other.

Lockheed Martin, a global defence giant with a significant presence in the National Capital Region, has teamed up with Habitat for Humanity Greater Ottawa (Habitat GO) to sponsor military themed “build days” that brings its employees together while helping local families achieve affordable home ownership.

Janice Menezes, the chief financial officer of Lockheed Martin Canada, describes her firm’s build days as amazing opportunities for colleagues to foster closer connections.

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SUPPORTING MEMBERS OF THE MILITARY

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As it looks towards its next project, Habitat for Humanity Greater Ottawa is looking to help local military or veteran families achieve affordable home ownership.

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“It builds a camaraderie and you really become more of a team,” she says. “Now I see people in the hallway that I only met through a build day, and you get this new special bond.”

MEANINGFUL MOMENTS With its business focusing on security and defence, Lockheed Martin was the perfect partner and sponsor for Habitat GO’s military build days, where veterans and military members are invited to help in the home construction process.

“It’s been a beautiful partnership,” says Alexis Ashworth, the CEO of Habitat GO. She adds that Lockheed Martin’s involvement of the military community brings a new dimension to Habitat GO’s homebuilding efforts by involving a diverse range of individuals with unique skills.

“Military build days are now part of our program, which greatly benefits everyone involved,” she says.

One of the most exciting parts of military build days is the friendly competition that usually happens to see who can get the job done fastest, says Menezes.

“It’s great to see even the military guys forget their ranks and their titles for the day, and work together on the same level,” she says. “It’s an amazing team-building opportunity, but also a chance to give back.”

More military build days are planned this fall, Menezes says everyone is gearing up and getting really excited.

“Doing good can be really good for business,” says Ashworth.

“Participating in Habitat’s build days is not just giving to charity; it’s doing

The 2nd Regiment Royal Canadian Horse Artillery at Habitat GO’s build site.

CFS Leitrim on the Habitat GO build site

Lockheed Martin on the Habitat GO Leacross Landing build site.

something that is going to increase the engagement of your employees and get people really excited about working for your company. Teams leave our build site excited and with a renewed energy that comes from knowing they’re helping to build a stronger community.

To learn more about how your business can support Habitat GO, contact Shawna Blanchard at 613-749-9950 x233 or sblanchard@habitatgo.com.

OBJ.social STORIES AND PHOTOS

BY CAROLINE PHILLIPS

MOTORS

FUNDRAISING EVENT

Fight for the Cure scores win for cancer research

Each competitor was expected to raise money through online donations.

Westeinde, 52, went above and beyond by bringing in more than $60,000 and earning himself a special plaque from the cancer foundation. Westeinde is the president of Zibi, which is co-developing a sustainable downtown waterfront community on the Chaudière and Albert islands on the Ottawa River.

Last year, organizers had asked Westeinde whether he was interested in fighting after one boxer had to pull out.

“Not really,” he responded. So, they asked him whether he was interested in fighting in 2018. “Not really,” he once again replied.

That was before one of his closest friends, Jeff La Morre, an investment adviser with CIBC Wood Gundy, was diagnosed with Stage 4 melanoma, meaning the cancer had spread. Upon learning the news, Westeinde decided to toss his hat in the ring.

Spotted in the crowd were Larry Bradley and Pat Kelly, co-owners of the Heart & Crown Irish Pubs, as well as other such sponsors as Maureen Graham from the Tony Graham Automotive Group, Extension Marketing founder Pat Whalen, Keynote Group founders James and Donna Baker, Sanjay Shah from ExecHealth, and a gang of lawyers from Kelly Santini LLP.

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Cancer Foundation and its efforts to improve cancer care in the region through cancer coaching, local research and clinical trials.

Returning as presenting sponsor was the Heart & Crown Irish Pubs. Also back was former five-time white-collar boxer Walter Robinson as emcee.

Michael Bradley (Heart & Crown Irish Pubs) defeated Derek Newberry (Humanscale) in their three-round bout, while Matt Jacques (Cresa Ottawa) beat Jason Tilley (Cushman & Wakefield Ottawa). Scott McRae (Ottawa Police Services) bested Mitri Nesrallah (Sysco Canada) and, similarly, Daphne Ballard (Christopher A. Moore Professional Corp.) won against her good friend and Irish gaelic football teammate Lisa Langevin (Kelly Santini LLP). Their fight was the first female white-collar match-up in the event’s history. The pair got a standing ovation from the crowd after they were done boxing.

Jeff Westeinde (Zibi) came out ahead against Wayne Liko (Horizant.ca), while heavy hitter Rick Hiladie (Assent Compliance) successfully took on Donnie Ruiz (CFL/Elite Performance Academy).

NOVEMBER 2018

By unanimous decision, the 2018 Fight for the Cure clinched this year’s title of most thrilling charity event.

Twelve men and women swapped business suits for boxing gloves and – following eight months of intense training – squared off Oct. 20 in a boxing ring that was on conspicuous display inside the ballroom of the Hilton Lac Leamy.

Surrounding the first-time fighters were bright lights, big screens and the screaming voices of 1,000 excited spectators. Their motivation for participating had less to do with improving their fitness or learning a new sport than it had to do with raising money to fight a devastating disease – cancer – that has touched them all.

The exhilarating evening was chiefly organized by Scott Whitteker, director of FFTC. He’s also a co-founder of the event with his older brother, Matt Whitteker.

The siblings have watched their boxing event grow from a small benefit that raised just $500 in its first year to a must-attend evening that sells out months in advance. This year’s FFTC raised $238,500 for the Ottawa Regional

Top photo from left, Westeinde family members Jacquie, Shirley, Jeff and John with Jeff La Morre, and his son Jack and wife Rebeccah, along with Colleen Westeinde, Kristen and Nicole at the 2018 Fight for the Cure event for the Ottawa Regional Cancer Foundation on Oct. 13; second row at left, Lisa Langevin and Daphne Ballard prior to their fight; above from left, Ben George, Alexis George, Maureen Graham and her husband, Scott Elson, put up their dukes; at left, Larry Bradley from presenting sponsor Heart and Crown Irish Pubs with his son, white-collar boxer Michael Bradley, after his boxing match at the charity event.

OBJ.social STORIES AND PHOTOS

BY CAROLINE PHILLIPS

GALA

MOTORS

Motown icon Diana Ross dazzles at NAC Gala Legendary Motown singer Diana Ross showed off her penchant for glamour and gowns as she took a concert hall packed with people on a nostalgic trip down memory lane at this year’s National Arts Centre Gala.

The annual arts benefit gathered together top business leaders, politicians and philanthropists from around the country on Oct. 3 for a memorable evening that raised $781,000 for the National Youth and Education Trust, which supports the NAC’s arts and education programs across Canada.

At age 74, the lead Supreme was in top form. She charged through her beloved hits, including Where Did Our Love Go, Baby Love, Can’t Hurry Love, Stop In the Name of Love, More Today Than Yesterday, Endless Love, Do You Know Where You’re Going To and Ain’t No

Mountain High Enough. The Detroit-born star hasn’t lost her megawatt smile or her big hair. And she went through more costume changes than one could casually keep track of.

The sold-out, 2,000-person audience adored her.

“It’s the arts centre at its best,” Adrian Burns told OBJ.social after the concert. Not only is Burns the chair of the NAC’s board of trustees, but she also chaired the gala’s organizing committee and is a director of Shaw Communications ​– one of the major gala sponsors. “When you see people happy like that, how can it be any better?”

It was the first NAC Gala for U.S. ambassador Kelly Craft. Last year’s big night took place about a month before she arrived to town to begin her new posting. She was seen on the red carpet

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with her husband, Joe Craft, and Ontario Premier Doug Ford, who attended as her guest.

“It was like going down memory lane,” Craft told OBJ.social of Ross’s performance. “You could take yourself back to every song, from where you were when you first heard it, no matter what age you were.”

Ford could relate. “It just brought back so many memories,” he told OBJ.social, before adding with a chuckle: “I’m aging myself.”

On stage with Ross was the NAC Orchestra, under the baton of music director Alexander Shelley. She also had her band and a choir of two dozen-plus singers. Heads were seen bouncing and bobbing along to her music throughout her show. Audience members waved their arms back and forth, like at a stadium concert, as Ross and her choir lifted the crowd with their gospel-sounding Reach Out and Touch (Somebody’s Hand).

Clapping and swaying with the rest of them was Ford, as well as federal Finance Minister Bill Morneau. He admittedly

stopped short of singing along. “My voice is bad,” he quipped.

“Her energy was absolutely spectacular,” Morneau told OBJ.social.

“You could not for a moment know that she was in the seventh decade of her life because she commanded the room.”

The annual gala saw Sophie Grégoire Trudeau, wife of Prime Minister Justin Trudeau, back in her role as honorary chair.

Among the sponsors and supporters seen arriving were Jacques Emond, co-founding partner of labour and employment law firm Emond Harnden; Rogers Communications vice-president Heidi Bonnell; Mark Motors of Ottawa coowner Liza Mrak; Quebecor Media senior vice-president Serge Sasseville; and Asper Foundation president Gail Asper.

It was the first NAC Gala for Christopher Deacon, former orchestra manager, in his new and elevated role as president and CEO of the National Arts Centre.

Ontario Lieut.-Gov. Elizabeth Dowdeswell and Heritage Minister Pablo Rodriguez also attended.

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OBJ.social STORIES AND PHOTOS

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PHILANTHROPY ALWAYS ON THE MENU AT THE SHAW CENTRE

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Shaw-Centre.com 613-563-1984 Executive Chef Patrick Turcot

KLOTZ FAMILY, CHEFS COOK UP FUNDRAISER TO AID LOCAL FARMERS Nothing beats heading to the countryside on the weekend to revel in the open spaces, fresh air and slower pace of life, especially when the half-hour-orso drive from downtown Ottawa takes you past the changing fall colours of the Gatineau Hills to a picturesque hobby farm belonging to Ottawa writer Hattie Klotz and her entrepreneurial husband, Chris.

The Klotz Farm, located just north of Wakefield, Que., in Farrellton, played host in late September to Tunes and Spoons, an inaugural $150-a-ticket fundraiser that was expected to yield a bumper crop of money totalling more than $25,000. The proceeds will help support local farmers grow and supply fresh produce to the Rideau-Rockcliffe Community Resource Centre in Vanier. It will then distribute the food ​– through its grocery store on wheels MarketMobile initiative – to low-income individuals and families.

Klotz organized the benefit over the past three months with Erin Clatney, owner of Dish Catering; Taryn Manias, director of sales and business development at Rebel.com, as well as principal of SMASH public relations firm; and Janet Wilson, senior account director at Hill+Knowlton Strategies.

“The vision was to shine a spotlight on people who don’t have good, healthy and nutritious food, as well as to support small-scale local organic farmers by getting their good food on the tables of those people who might not otherwise have access to it,” Klotz told OBJ.social.

The proverbial seeds were planted last November during the Ottawa International Writers Festival. Klotz had been on stage interviewing author Brent Preston, co-owner of The New Farm near Creemore, when she learned how he and his wife created an annual back-tonature music model (the Tragically Hip played in their barn one year) to provide local, healthy organic food to a Toronto

community food hub.

“That’s what got me thinking,” said Klotz, who was already using their family farm to entertain friends. “I wanted to share the magic of this place, to try and leverage it to do some good. I don’t have big fat cheques to write, but we – my husband and I – own this beautiful place, and we can use it to do some good.”

Some 250 guests were invited to walk around the expansive property, which featured a beautifully renovated farmhouse with a cozy burning fireplace; a decorated, century-old barn, where Colin Linden of Blackie and the Rodeo Kings and his band later played; a swimming pool and grass tennis court; and friendly horses. It was a very relaxed and intimate event, full of laughter, conversation, good food and music.

There was an interesting mix of folks in the crowd, from author Charlotte Gray and journalist Paul Wells to RideauRockcliffe Coun. Tobi Nussbaum to Telesat CEO Dan Goldberg and Jeff York, co-CEO of Farm Boy. Klotz credited Jayne Watson, CEO of the National Arts Centre Foundation, for helping to get her idea off the ground. Early supporters also included Ottawa businesswoman Jamilah Taib Murray and residential developer Sean McAdam. He’s the president of Landlab, which spearheaded the Hendrick Farm conservation community in Old Chelsea.

The featured chefs included: Katie Ardington (Beckta Group), Donna Chevrier (Ola Cocina), Chris Deraiche (Wellington Gastropub), Kris Kshonze (Soif Bar a Vin), David Godsoe and John Leung (Eighteen Hospitality Group), Kevin Mathieson (Art Is In Bakery), Jennifer Warren-Part and Charlie Part (Les Fougères), Jamie Stunt (Dish Catering) and Adam Vettorel (North and Navy). Dominion City Brewing Co. provided the beer while the wine came from D’Ont Poke the Bear.

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GROWING BRAND Between its two locations at Lansdowne Park and on Ogilvie Road, executive general manager Greg McCormick has no shortage of experience in adapting his venues for various events.

Several weeks ago, McCormick and his team transformed the chic industrial space into an elegant cocktail party with a twist. Using one of its smart TVs and a state-of-the-art sound system, they streamed a keynote speaker from San Francisco, bringing together a group of individuals from across North America.

Days later, Crust & Crate’s team of chefs crafted a menu of artisanal fast-fired pizza for an intimate office celebration in the upper private dining area at its Lansdowne location.

“Because we are a growing brand, we are able to be nimble,” says McCormick. “We can make anything work.”

With its new Fall menu, Crust & Crate is engaging local breweries and businesses, and allow its in-house chefs – many of whom graduated from Algonquin College’s culinary program – to have fun.

“So many businesses are passionate about what they do and like to have fun. They walk in and they appreciate working with us to build a sense of community,” he says. “As we move forward we want to really leverage that.”

NOVEMBER 2018

The space needs to be warm and inviting, with an intimate and relaxed vibe that shows it’s serious about having fun. The menu should convey creativity and a passion for high-quality food. And the venue must make an impression the moment your guests walk through the door.

Inside Crust & Crate, the exposed brick walls and steel beams forge a modern industrial feel.

Wooden crates hanging from the ceiling help create an atmosphere that’s both comfortable and upbeat.

But the heart of the restaurant is Crust & Crate’s woodstone-fired pizza oven, where the combination of intense heat and smoke blister the dough and melt fresh topping within the cheeses.

And, reflecting a strong sense of community,

Crust & Crate – created by renowned Gabriel Pizza – also features a rotating selection of craft beers.

In an effort to create memorable experiences for clients, colleagues and staff, a growing number of Ottawa businesses are tapping into Crust & Crate’s versatility and polished expertise for their corporate events.

NOVEMBER 2018

CONNECTING TECH IN OTTAWA

Ottawa Symphony Orchestra fiddles with 3D printing

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32 Five of the eight soloists performing at the 3D String Theory event on Nov. 4. From left to right: Marlena Pellegrino, Hanna Williamson, Natalie Deschesnes, Alisa Klebanov, Geena Salway. Photo by Mark Holleron

BY CRAIG LORD craig@obj.ca

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Quebec entrepreneur’s background in 3D printing is adding a new dimension to an upcoming performance from the Ottawa Symphony Orchestra.

Laurent Lacombe, co-founder of Gatineau-based Creadditive, has developed eight 3D-printed instruments for the 3D String Theory performance at the National Arts Centre on Nov. 4.

For the past few months, he’s worked alongside Ottawa-based violin-maker Charline Dequincey to perfect the design Creadditive co-founder and sound of the 3D-printed stringed Laurent Lacombe. Photo provided instruments.

by Ottawa Symphony Orchestra Lacombe’s firm Creadditive, which he runs from a satellite office in Quebec City, specializes in additive manufacturing – importantly, sound. the more formal name for 3D printing – “Honestly, the first time I heard the in fields such as heritage restoration. The sound, I was really impressed,” says Quebec-born engineer studied at Laval Lacombe, himself an amateur piano University and started his career in the player. province’s medical and dental fields.

He admits to noticing a difference Lacombe tells Techopia that between the traditional no matter the final product, wooden versions and the DIGITAL the process for designing and 3D-printed alternative, says EXCLUSIVE: manufacturing detail-specific the goal of this experiment For more, visit implements is fairly consistent. isn’t about matching the techopia.ca “Whether you’re designing traditional sounds – it’s a part for heritage, or a about seeing what new mechanical part in a car, or implants in manufacturing techniques can bring to an the medical field or a violin, it’s basically old art form. the same techniques,” he says.

While Lacombe is skeptical that 3D To design the instruments that printing would ever replace the care and eight soloists will play at the 3D String effort that goes into handcrafting topTheory event, Lacombe created a twonotch instruments, he says the technique dimensional rendering of Dequincey’s could be an entry point for burgeoning original violin via CT scan. Through a musicians who want to take up the violin process called “segmentation” – common but are costed out from a wooden model. in the design of custom medical implants Whether he’s designing a new – Lacombe converted the 2D file into a wave of instrument or using the 3D model of the instrument. innovative process to restore aging Creating an instrument worthy of a architecture, Lacombe says he sees a professional musician’s hand, however, growing acceptance for 3D printing requires further fine-tuning. Plastic is in the mainstream. As designers and heavier than wood, so the body of the manufacturers begin to embrace the violin had to be modified as to not weigh technique, the applications for 3D down the players’ arms. Dequincey printing will grow exponentially, he says. would give regular feedback on the “People are starting to be aware that process to achieve the best compromise additive manufacturing is not a toy or a between weight, design and, most joke on the internet anymore.”

NEWS FROM CANADA’S LARGEST TECHNOLOGY PARK - KANATA NORTH BREAKING THE DATA CENTRE MONOPOLY (AGAIN)

PageCloud CEO Greg Evans. Photo provided

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Networker T H E K A N ATA

THE OFFICIAL PUBLICATIO N OF

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WHERE WE WORK

GROWING MOBILE MARKET TAKES SSI MICRO’S KANATA TEAM NORTH Page 12

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WHAT WE’RE GEEKING OUT ON

iPocket232 takes high-tech payment systems to gas retailers Page 14

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New platforms for improving mental health in the workplace Page 16

READ THE NETWORKER: http://bit.ly/Networker-Fall-2018

PageCloud goes from Craig to Greg

BY CRAIG LORD

the value of visual editing solutions during his time at the top, and performances such as the TechCrunch echopia Live recently sat down pitch caught the attention of both with one of Ottawa’s newest customers and competitors. chief executives, Greg Evans, to “Fast forward four years, I think hear about his vision for the future of (visual editors are) becoming the PageCloud. standard,” he said.

Craig Fitzpatrick, founder and original While PageCloud prides itself on CEO of the web-building software firm, its intuitive interface – the company’s announced last month that he would step mission has always been to “allow down from his role at the top of the wellanybody to publish on the web,” Evans known Ottawa startup to pursue other said – earlier this year the firm launched projects. Fitzpatrick has been the face a channel to court web-building of PageCloud ever since professionals. It’s a the firm took the stage at bid to win customers TechCrunch Disrupt in that don’t have time TECHOPIA 2015 to pitch the intuitive to maintain their own LIVE drag-and-drop web editor. websites and want delivers weekly Evans, PageCloud’s to outsource the job interviews with Ottawa’s first employee and to freelancers or hottest startups and previously vice-president agencies. coolest tech execs. Visit of strategic partnerships, Evans said he bit.ly/TechopiaLive told Techopia Live that expects PageCloud for the latest episodes. he’s a natural fit for the to continue to push CEO role as he’s been the strength of its “part of the DNA of the company” from visual editor while branching out into the beginning. He was also involved in other aspects of web design. That could PageCloud’s early fundraising efforts mean building out landing page creation which saw the firm raise more than $11 or customer reporting modules, or million through angel, seed and series-A partnering with other solutions in the rounds. industry that would benefit from the Evans said Fitzpatrick “evangelized” firm’s solution. craig@obj.ca

T

Making AI live up to its hype uOttawa engineers lay the groundwork for society’s digital transformation

F

or many people, artificial intelligence (AI) is a magical black box. Data goes in, algorithms do their thing and out comes a result.

But is that result reliable? Can it be trusted to support a critical business or public policy decision that could make or break a company, or impact millions of lives?

These are the kinds of questions being tackled at the University of Ottawa Faculty of Engineering’s School of Electrical Engineering and Computer Science.

“With AI beginning to play such a large role in decision-making, there is a need to make the results of learning interpretable and to explain to domain experts exactly how we arrived at a decision,” Prof. Viktor said.

“We cannot just blindly run algorithms and take the output at face value” -Prof. Herna L. Viktor Those domain experts could be in healthcare, in emergency preparedness, or in an IT vertical such as cloud services.

Prof. Viktor and her team have already been working with public and private sector partners on projects such as trending shifts in patterns of illness and disease for more proactive healthcare planning, predicting extreme weather events and detecting cybersecurity threats.

5G AND BEYOND Prof. Melike Erol-Kantarci, Director and Founder of uOttawa’s Networked Systems and Communications Research (NETCORE) Lab, is researching deep learning and machine learning as it applies to the efficient operation of 5G wireless networks.

5G is heady stuff. Data rates on a 5G device could be up to 1,000 times faster than current 4G (LTE) devices. Ultra-HD movies that may be too frustrating for most people to even attempt to download could be ready to watch in mere seconds.

With that kind of connectivity and speed comes a dramatic increase in network complexity.

“Where there are hundreds of cellular base stations today, there will be thousands,” Prof. Erol-Kantarci said.

“These will have to compensate for interference from other stations and users. Current AI models are not capable of ensuring efficient resource allocation and managing initial and fair access for wireless devices.”

The first 5G products will hit the market

in 2019 with full network deployments to follow. AI enablement is crucial. Prof.

Erol-Kantarci points out that this isn’t just about that smartphone in your pocket.

5G is a crucial standard to support the increasing connectivity of society as a whole – the Internet of Things.

“Canada is investing a lot in autonomous driving and that needs the connectivity that will come with 5G,” she said. “This also applies to any ‘Smart’ initiative – SmartHealth, SmartGrid or SmartCity. Wherever there is a demand for higher speed wireless connectivity and ultra-low latency, it falls under what we do at uOttawa to enable future networks with AI.”

35 OBJ.CA

Learn more about uOttawa’s Faculty of Engineering at engineering.uOttawa.ca.

Prof. Melike Erol-Kantarci

NOVEMBER 2018

IT BEGINS AND ENDS WITH DATA Prof. Herna L. Viktor examines the issue where databases and AI intersect.

“A machine-learning algorithm is only as good as your data,” she said. “We cannot just blindly run algorithms and take the output at face value. It is very important to look at the characteristics of the data and to consider issues such as noise, underrepresentation and bias. All of these will influence the final results.”

For example, a recent tech talent recruitment engine used by Amazon had to be abandoned, since the underrepresentation of women in the field led to the machine learning algorithm only targeting male candidates. As another example, the use of machine learning techniques to detect rare or orphan diseases are hindered by the small pool of patients, which may lead to their symptoms being overlooked.

Data is constantly evolving and growing.

It’s been estimated that, by 2020, 1.7MB of data will be created every second for every person on earth. The challenge is to create algorithms with the sophistication to not only ingest such staggering amounts of data, but to recognize and sort good data from bad, and be able to explain how a conclusion or output was reached.

Providing that kind of transparency and accountability has always been a key challenge in machine learning.

Prof. Herna L. Viktor

VENTURE CAPITAL

Ottawa’s Assent Compliance lands $130M series-C round

BY CRAIG LORD craig@obj.ca

A

nine-figure series-C round is the next big step in Assent Compliance’s quest to dominate its industry, the Ottawabased firm says.

Assent, which develops software to help companies maintain compliance across their supply chains, will receive $130 million from U.S. private equity firm Warburg Pincus. It’s the third round of venture capital for the east-end firm in the past three years, bringing its total funding to more than $190 million.

BDC Capital, Greenspring Associates, OpenText Enterprise Apps Fund and Volition Capital all remain investors in the firm and the company’s management will retain an ownership stake.

The company wasn’t actively courting investors, said CEO Andrew Waitman, but was fielding a number of inbound offers from private equity firms such as Warburg.

While the company might have started looking into more funding this fall, he said he didn’t even have an investor deck prepared for a series-C round.

“With all humility, I was inundated. It was ridiculous, the amount of interest in

Andrew Waitman, CEO of Assent Compliance

our company,” Waitman said.

Warburg Pincus managing director Justin Sadrian told OBJ that Assent Compliance has been on the firm’s radar for three years. The private equity firm invests from a fund of $13 billion and manages a portfolio of 28 tech firms; in terms of deal value, Sadrian said the $130-million Assent financing is roughly

mid-range.

Waitman declined to disclose how much of an equity stake Warburg will receive for the investment, but said he still feels fully in control of the company’s future, noting that the pre-existing investors all chose to remain and accepted a diluted share in order to bring Warburg onboard.

Waitman said equity firms were all looking to get a slice of the firm because of Assent’s technology, a software that “automates the arduous” – simplifying regulatory requirements and reducing risk across enterprise firms’ supply chains.

While the company doesn’t disclose its customers, Waitman said it’s working with some of the largest companies in the world in markets such as aerospace and defence, electronics and medical.

Assent’s software can handle the historically manual job of centralizing compliance data, giving the company a first-mover advantage in a field full of potential.

“It’s not whether they’re leading the category, but in our view they essentially created the category,” Sadrian said.

Warburg’spresents: investment is not only about

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Guest Speaker: The Honourable Pablo Rodriguez Minister of Canadian Heritage and Multiculturalism

NOVEMBER 2018

Tuesday, November 27, 2018 Location: Ottawa City Hall Registration: 7:00am Buffet Breakfast: 7:30am Presentation: 8:00am INDIVIDUAL TICKETS: $35.00 + HST (Ottawa Board of Trade Members) $50.00 + HST (Non-Memebers) CORPORATE TABLES OF 8 WITH SIGNAGE: $245.00 + HST (Ottawa Board of Trade Members) $350.00 + HST (Non-Memebers) Register online www.ottawachamber.ca

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36 OBJ.CA

David MatthewSegal Rinfret

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scaling the firm’s sales reach and entering new markets, but also maintaining the quality of Assent’s technology. As tempting as it can be to take a viable product to as many markets as possible, Waitman said it’s a common mistake that can make companies complacent.

“You have to assemble the right amount of investment with the right amount of customer traction. And if you don’t regulate those two things, if you put too much investment that does not pay off, then obviously that’s a vicious cycle,” he said.

“A lot of folks don’t get that productmarket fit before they over-invest in other areas, and hence, they never really get the flywheel working.”

One of the ways Assent maintains its position in the market is through its human resources. The firm actively courts top professionals in the compliance space to inform its product development.

To that end, while Waitman said the company isn’t focusing on acquisition opportunities, Assent is targeting a few “mom-and-pops” that have relevant expertise in the space. What’s best for developing the product, he said, is

organic growth and top-tier hires with the occasional M&A play to scoop up the best talent at firms across the world.

“We’re trying to get so far ahead with the product that nobody ever could catch us,” Waitman said.

Assent’s deal is the first nine-figure private investment for an Ottawa-based firm since Shopify raised a $100-million series-C round in 2013. While Waitman agreed the e-commerce giant has helped to put Ottawa on the map, he plainly stated that it’s not enough.

“Shopify is a wonderful company, but we need diversity as well as we need Shopify,” he said.

Waitman said the enormous funding round will lead to more hires in Ottawa, where the 400-person firm has a headcount of just below 300, as well as around the world.

He said he’s committed to growing Assent Compliance globally, but that’s good news for the home base.

“Even though this money – and this investor – doesn’t come from Canada, it allows us to hire more Canadians; it allows us to establish a global company but headquartered in Ottawa.”

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SHOW & SALE

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OBJ.CA

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NOVEMBER 2018

On December 6, Ottawa Business Journal and Ottawa Board of Trade will unveil the results of the Employees’ Choice Awards for 2018-19. More than 20 companies launched surveys in October to determine which organization had the highest level of engagement.

Sat. Dec. 8

SPOTLIGHT ON RECRUITMENT

Four important steps to completing an effective reference check How to get an accurate picture of your short-listed candidates

J

ust how important is it to complete job references? For the majority of employers, it’s a crucial final step in the hiring process that confirms – or calls into question – your impressions of the potential employee. In some cases, it can even be the deciding factor between two evenly ranked candidates.

Stevenson & White, an Ottawa recruitment firm that specializes in finance, accounting and payroll positions, shared some of their top tips for conducting effective references.

an answer is given can be very telling!” says Anne Stevenson. An experienced professional knows when to clarify answers or probe deeper and which questions to ask.

THE BOTTOM LINE “A good reference is a vital final piece to securing a role,” says Matt Stevenson, a partner and recruiter at Stevenson & White. References validate what you know about the candidate from their resume and interviews and provide a more comprehensive view of their past work history and experience.

The reference is extremely important as it is the final check for your candidate.

Having an experienced partner such as Stevenson & White on your side can help to ensure you have all the information you need to make the best decision.

To learn more about how Stevenson & White can help with your next job search, visit stevensonandwhite.com.

WHO TO SPEAK TO? It is best to ask candidates for three references – at least two of which should be previous managers who can speak to not only the candidate’s technical skills, but also other qualities such as their initiative, interpersonal and communication skills. This enables you to gain a more well-rounded picture of the candidate, which is key to ensuring the right fit.

NOVEMBER 2018

DON’T ASK LEADING QUESTIONS

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38

Try to ask the reference open-ended questions instead of leading questions that may influence their response. For example, instead of asking “Are you the candidate’s manager?” ask, “What is your working relationship with the candidate?”

“You will get different answers based on how you ask the question,” says Kim Gibbons, a recruiter at Stevenson &

White. For example, “Did the candidate work well with other members of the team?” may lead to a different response than “Can you describe how the candidates worked with other members of the team?”

Another effective strategy is to open it up to the reference at the end by asking, “Is there anything else that we haven’t asked that you think is important for us to know about this candidate?” This often prompts them to add key additional information that provides valuable insight into the candidate.

candidates may be looking to make a transition while they are still employed.

To avoid jeopardizing their current position it is crucial that you maintain confidentiality by only contacting the list of references that has been put forward by the candidate. “Confidentiality is of the utmost importance to Stevenson & White. We receive written permission from our candidates before contacting their references,” says Anne Stevenson, managing partner.

ONLY CONTACT THE REFERENCES PROVIDED BY THE CANDIDATE

It takes a lot of experience to conduct a thorough and effective reference check.

You need to be able to read between the lines and pick up on what the reference is not saying. “A pregnant pause before

This is extremely important in protecting the candidate’s confidentiality. Often,

LISTEN TO WHAT THEY ARE NOT SAYING

Finance. Accounting. Payroll.

ARE YOU A JOB-SEEKER? Here’s what to keep in mind when providing your references: • Don’t put references on your resume. Wait until you know a prospective employer is serious (and you would like to work for them!) before sharing contact information • Make sure you provide up-todate contact information for your references • Out of professional courtesy, give your references a heads up so they know that they may be contacted and by which company

Stevenson & White can help. Head to stevensonandwhite.com for more information or call 613-225-5417.

SPONSORED CONTENT

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I ND

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R

THE LIST

Company / Address Phone / Fax / Web

1

General Dynamics Mission Systems–Canada 1941 Robertson Rd. Ottawa, ON K2H 5B7 613-596-7000 / 613-820-5081 gd-ms.ca

2 3

Calian Group 101-340 Legget Dr. Ottawa, ON K2K 1Y6 613-599-8600 / 613-599-8650 calian.com

4

Curtiss-Wright Defense Solutions 333 Palladium Dr. Kanata, ON K2V 1A6 613-599-9199 / 613-599-7777 cwcdefense.com

5

Entrust Datacard 1000 Innovation Dr.Ottawa, ON K2K 3E7 613-270-3411 entrustdatacard.com

Major markets

Major clients

Description of specialty areas

David Ibbetson 1948

vice-president and general

manager, General Dynamics Mission Systems–International

WND

Department of National Defence; U.K. Ministry of Defence; U.S. Department of Defense; more than 20 allied militaries around the world

C4ISR and defence electronics company producing technology-based integrated solutions for land, airborne, maritime and public safety applications.

Françoise Gagnon, CEO

1967

Public sector

Government of Canada - DND (DGLEPM, DG Space, DGIMPD, DGAEPM, DGIMTSP, et al)

Virtual and constructive modelling/simulation; project management in support of major defence procurement; space solutions; command, control, communications, surveillance systems integtration.

380

Kevin Ford president and CEO

1982

Defence and security; federal government; corrections.

Department of National Defence; Government of Canada; telecommunications companies.

Services and solutions that cover health services, training, IT and cyber security, emergency management, satellite communications.

375

Cathy Pomeroy vice-president of COTS solutions

1981

Aerospace and defence

Northrop Grumman;

Boeing; Lockheed Martin; Raytheon; BAE Systems; General Dynamics.

Develops rugged electronic modules

and embedded systems for defence applications including C4ISR systems, unmanned subsystems, mission computing and recording and storage solutions.

350

Greg Wetmore vice-president of product at Entrust Datacard

1969

Financial; citizen/government; enterprises State, provincial and

national governments; financial institutions; enterprises.

Identity and secure transaction

technologies; financial cards; passports and ID cards; authentication; certificates; PKI; secure communications.

300

Martin Munro vice-president and general manager

1990

Defence electronics; systems integration

DND; U.S. Navy; international military forces.

Designs, manufactures and supports naval communications, IRST and deployable flight data recorders; military C4ISR applications, as well as provides turn-key electronics manufacturing.

300

Charles Bouchard chief executive, Lockheed Martin Canada

1995

Global defence and security; aerospace

Department of National Defence; defence and commercial industries

Corporate office for Lockheed Martin Corp.

212

Jerry McLean vice-president and managing director

1984

Canada; government DND; Coast Guard; NAV Canada

Systems engineering/project management; concept definition. systems analysis; computer engineering;

software development and computer simulation and modelling; weapon/sensor systems control and integration; logistics engineering; in-service support.

800

600

DRS Technologies Canada 1100-500 Palladium Dr. Kanata, ON K2V 1C2 613-591-5800 / 613-591-5801 drs.com

Lockheed Martin Canada 870-45 O’Connor St. Ottawa, ON K1P 1A4 613-599-3270 / 613-599-3282 lockheedmartin.ca

CORRECTION: The original printed version of this list erroneously omitted ADGA Group. The corrected version of the list, which lists the firm as No. 2, appears below.

(RANKED BY NUMBER OF LOCAL EMPLOYEES)

Number of Key local executive local employees

ADGA Group Consultants Inc. 110 Argyle Ave., Ottawa, Ontario K2P 1B4 (613) 237-3022 www.adga.ca

6 7

LARGEST DEFENCE AND SECURITY COMPANIES Year est. in Ottawa

151

Ian Marsh president

1978

Defence, police services and aerospace in North America

Department of National Defence, General Dynamics Land Systems – Canada, Ford Motor Co.

Largest manufacturer of ceramic composite armour protection systems in North America for military and police vehicles, military fleet life extension and re-purpose.

9

CAE Canada - Defence & Security 200-350 Legget Dr. Ottawa, ON K2K 2W7 613-247-0342 / 613-271-0963 cae.com

150

Joe Armstrong vice-president and general manager

1947

Federal government; defence and security; critical infrastructure

Federal government; Department of National Defence; Defence Research and Development Canada

Modelling/simulation and training; system and software engineering; human factors; capability engineering; life-cycle support to clients in defence, public safety and security.

March Networks 303 Terry Fox Dr. Ottawa, ON K2K 3J1 613-591-8181 / 613-591-7337 marchnetworks.com

150

Peter Strom president and CEO

2000

Global security and video-based business intelligence.

Four of Canada’s top five banks; Fifth Third Bank; Bank of New Zealand; Danske Bank; Banco de Chile

Provides video surveillance and video-based business intelligence solutions used by organizations worldwide to improve security and business performance objectives.

12

W.R. Davis Engineering 1260 Old Innes Rd. Ottawa, ON K1B 3V3 613-748-5500 / 613-748-3972 davis-eng.com

135

Tom Davis vice-president

1975

WND

U.S. Army; U.S. Marine Corps; U.S. Navy; BAE Systems; Boeing; Leonardo Helicopters; Airbus Helicopters

Aerospace and defense; IR signature management; IR signature suppressors for aircraft and ships; specialized exhaust systems for offshore energy platforms.

13

Boeing 1220-45 O’Connor St. Ottawa, ON K1P 1A4 613-745-8111 / 613-745-9779 boeing.ca

130

Jim Barnes director of global marketing – Canada for Boeing Defense, Space & Security

1999

Global commercial and defence

DND; PWGSC; Canadian Space Agency

Commercial and military aircraft; satellites; weapons; electronic and defence systems; launch systems; advanced information and communication systems; performance-based logistics and training.

14

Raytheon Canada 730-360 Albert St. Ottawa, ON K1R 7X7 613-233-4121 / 613-233-1099 raytheon.ca

120

Garry Venman, president

1956

Defence; air traffic control; highway management

Government, DND

Air traffic management; service and support of avionics and airborne radar.

15

Gastops 1011 Polytek St. Ottawa, ON K1J 9J3 613-744-3530 / 613-744-8846 gastops.com

110

David E. Muir president and CEO

1979

Defence; aviation; energy; marine

Canadian Air Force; Canadian Navy; USAF; U.S. Army; Vector; IMP; PAL; Cougar Helicopters;

Condition-based maintenance sensors systems and services; oil wear debris sensors; filter debris analyzers.

16

Med-Eng 2400 St. Laurent Blvd. Ottawa, ON K1G 6C4 613-482-8835 med-eng.com

80

Rob Reynolds vice-president and general manager

1981

North, Central and South America; Europe; Middle East;

Military forces and public safety agencies

Bomb suits, protective equipment and sensors against explosive threats; bomb disposal and EOD robots, specialized tools and search equipment; applications.

11

WND = Would not disclose.

39 OBJ.CA

9

DEW Engineering and Development ULC 3429 Hawthorne Rd. Ottawa, ON K1G 4G2 613-736-5100 / 613-736-1348 dewengineering.com

NOVEMBER 2018

8

Thales Canada 1 Chrysalis Way Ottawa, ON K2G 6P9 613-723-7000 / 613-723-5600 thalesgroup.com/canada

FOR THE RECORD

GOLDY HYDER / BUSINESS COUNCIL OF CANADA

NOVEMBER 2018

PEOPLE ON THE MOVE

OBJ.CA

40

One of Canada’s most prominent business lobby groups has turned to a veteran public relations executive to replace John Manley as its leader.

Goldy Hyder, the former chief executive of Hill+Knowlton Strategies (Canada), took over as president and CEO of the Business Council of Canada on Oct. 15. Hyder succeeds Manley, a former deputy prime minister and senior federal cabinet

minister who announced in January he was stepping down after nine years as head of the organization.

Business council chair Linda Hasenfratz said Hyder brings “strong business experience, a passion for public policy and a deep commitment to expanding economic opportunities for all Canadians.”

A graduate of the University of Calgary, Hyder spent 17 years at Hill+Knowlton, serving as president

and CEO since 2014. Before joining the global public relations consulting firm, he was director of policy and chief of staff for former prime minister and foreign affairs minister Joe Clark. He is also an active community volunteer and currently serves as chair of the Ottawa Senators Foundation.

“I am honoured to have this opportunity to work with such an accomplished group of employers and entrepreneurs ​ – men and women from across

the country who work hard to build their companies and are equally committed to helping build Canada,” Hyder said in a statement, adding he was “humbled” to be following “someone of John Manley’s calibre and character.”

Founded in 1976, the Business Council of Canada is composed of CEOs and entrepreneurs from 150 leading private-sector enterprises representing every major industry and all regions of the country.

PEOPLE ON THE MOVE Shaun Horning has been named president and CEO of Gastops. An aerospace engineering graduate of Carleton University, Horning has spent nearly 25 years in various roles at Gastops, most recently as vicepresident of technical and engineering services.

Kinaxis has named Andrew McDonald as chief product officer. McDonald comes to Kinaxis after serving for almost four years as CPO at CENX. His resume also includes a 13-year stint at Alcatel-Lucent and a few years in R&D at Newbridge Networks.

Chris Avery has been appointed president and CEO of First Air. He joined the airline in 2017 and was previously vice-president of customer and commercial operations. In his 25-year career in the aviation and travel industry, Avery has held senior management positions at WestJet, Alaska Airlines, Canadian Airlines

International and Transat Holidays.

Johnny Adams has become First Air’s executive chairman, expanding his role as the chairman of the board.

Pierre Paul Samson has joined McMillan to lead the agency’s expanding customer experience practice. A former partner and global head of digital and R&D with Sid Lee, Samson comes with more than 20 years of experience with digital marketing platforms and technologies, working on accounts for organizations such as IBM, Cirque du Soleil, Samsung, Stella Artois, Intel, TD Bank, Videotron and Air Canada.

RBC has appointed Marjolaine Hudon as regional president, Ontario North and East. Hudon previously served as vice-president, commercial banking and risk management for RBC in • Calgary. Hudon, who joined RBC in 1991, will be the bank’s senior executive in Ottawa.

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LAST WORD

The case for basic income

NOVEMBER 2018

In a letter to Premier Doug Ford and Social Services Minister Lisa MacLeod, Pythian CEO Paul Vallée argues the Ontario government’s decision to kill the basic income pilot project will do more harm than good

OBJ.CA

42

Statistics show that more than half of Canadians do not have access to $200 in case of an emergency. Most Canadians Paul Vallée vallee@ who are in poverty are already working. pythian.com This is why two-thirds of the recipients in the Ontario basic income pilot were working, including self-employed people To: Premier Doug Ford and Social and small business owners. These are Services Minister Lisa MacLeod, hard-working people, and critically, these As Canadian business leaders, we are your voters. urge the Ontario government to continue What kind of economy and society will the Ontario basic income pilot. We see a we have if the share of low-income jobs guaranteed basic income as a businessdoubles again from 30 per cent to 60 per friendly approach to address the increasing cent, with the share of national income financial precarity of our citizens and of the bottom half of earners continuing revitalize the economy. to decline to subsistence levels while the It is urgent that we let this pilot run share of income of the top one per cent because we see basic income as part of a continues to accelerate? solution that could help Canadians stay As business leaders, we see basic competitive in the face of accelerating income as good economics and technological job displacement due to enlightened self-interest: It is a proadvances in automation, software, and AI; growth, pro-business, pro-free-market globalization of jobs; the ongoing transition economic stimulus that will grow the of work to part-time, contract and gig economy and create jobs. work; and winner-takes-all markets where Businesses create jobs in anticipation companies such as Amazon are absorbing of growing consumer demand and greater shares of economic activity. purchasing power. There are over 36 These global trends are causing million Canadians. If we want to optimize structural changes to the economy that are our economic growth, we could ensure depressing wages, reducing the number of all 36 million are included in that growth middle-class jobs available to Canadians and can participate in the economy and effecting a decline in entrepreneurship. without precarity.

We can already see how decades Those who have the least spend the of automation and globalization most by share of income. Cash from a have affected the economy. Despite basic income will go right back into local unemployment in Canada being at its businesses. This approach is proven. Bank lowest rate since 1976, the share of lowof Canada governor Stephen Poloz in income jobs has nearly doubled to 30 per 2017 credited the Canada Child Benefit ​ cent of Ontarians since 2001, with the – a cash-transfer program giving up to percentage of Canadians in minimum$541.33 per child per month to families wage jobs increasing fivefold since 1997. with children – as having been the reason

for a 0.5 per cent increase in GDP, which appears correlated to dislodging a multiyear flat line in the unemployment rate.

As for objections around cost, several funding models are available. For instance, a three per cent increase in GST federally has been projected as the net cost to pay for a basic income, and that sounds like a good deal to us.

We believe in the potential for basic income to replace inefficient welfare programs, encourage work and eliminate the welfare trap. We believe it is better that recipients themselves decide how to spend their assistance rather than government bureaucrats.

We feel a basic income would also be more effective than minimum wage increases or worker subsidy programs.

Unlike those programs, a basic income would compensate for unpaid forms of work such as caregiving, community service and entrepreneurship. It would also reduce personal risks associated with taking time to retrain or relocating to find jobs. Basic income reduces stress, improves health and reduces crime, all which are good for society.

Mr. Ford, if you truly believe that basic income will discourage work, then you should allow the pilot program to continue so you can have data on your side. If, however, the program proves to encourage work, then this idea is one that all parties can build off of.

While other governments all over the world are beginning to design their own programs, ours is already running. The results of this experiment, once complete, will inform policy decisions all over the world. We urge you to reverse this decision to cancel the basic income pilot program.

Co-Authored: Floyd Marinescu, CEO of C4Media Inc., and Paul Vallée, CEO of Pythian Inc. Signed: 100 Canadian CEOs, business owners, presidents and co-founders of companies with more than C$1.5 billion in combined annual revenues.

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