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Political capital Veteran startup mentor says fledgling Canadian firms could use a little help from the Hill to enhance VC chances. > PAGE 5

Intelligent strategy Business is booming for artificial intelligence company that predicts how voters and consumers will behave. > PAGES 12-13

Michael Potter, who turned a small consulting company into a global software powerhouse, now finds other pursuits to occupy his time. PHOTO BY MARK HOLLERON

Pilot of a city’s software revolution From Cognos to Vintage Wings, Michael Potter has always been a leader with passion OBJ’s 2016 Lifetime Achievement Award recipient reflects on trailblazing high-tech career and the joys of retirement > PAGES 14-15

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From training, to learning, to building and prototyping, we give our students the foundation they need, wherever their passions may take them.

”

Dr. Hanan Anis discusses with a student in the Richard L’Abbé Makerspace.

Covering the full funnel of innovation uOttawa’s Faculty of Engineering: A hub for entrepreneurial learning

MONDAY, NOVEMBER 7, 2016

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hat does it mean to have an entrepreneurial mindset? It can mean many things. An ability to think outside the box. Challenging the status quo. Taking calculated risks. According to Dr. Hanan Anis, having an entrepreneurial mindset means all these things. She holds an NSERC Chair in Entrepreneurial Engineering Design at the University of Ottawa’s Faculty of Engineering. Maybe it does mean starting your own company. Or it could apply to what you can do to improve your community or help an established organization break the mould and achieve a new level of greatness. Serial entrepreneur Matt Ehrlichman, who launched his first startup from his dorm room at Stanford University, defined it this way last year for Inc. Magazine: “It develops in the individuals who demonstrate a true passion for building something great from nothing and they are willing to push themselves to the limits to achieve big goals.” Developing students’ entrepreneurial mindset has been a priority for the University of Ottawa’s Faculty of Engineering for a number of years. Why? Because engineers build things that create market opportunities and yield substantial societal benefits. A great idea can generate wealth, create jobs and improve quality of life. An engineer may not become an entrepreneur, but the entrepreneurial mindset can be

applied to any career path they choose. uOttawa’s Faculty of Engineering has come a long way since it launched its first business plan competition for students eight years ago to instill an appreciation for entrepreneurship. “We’ve been emphasizing experiential learning inside and outside the classroom,” said Dr. Anis. “We have a variety of programs and resources available now that break down the traditional silos between the campus lab, the workplace and the local community at large.” How uOttawa is sprouting the ‘CEEDs’ of entrepreneurship Under the umbrella of her NSERC-funded research chair, Dr. Anis and her team have levered NSERC funding and other generous donor contributions to dramatically expand the scope of what the Faculty offers. It’s all part of the Faculty’s Centre for Entrepreneurship and Engineering Design (CEED). CEED focuses on improving the level and quality of engineering design, and entrepreneurship education and experience, by fostering and strengthening: • Engineering design depth, by providing students repeated opportunities throughout their studies to design, build and test products that meet customer needs. • Customer awareness, by integrating customer discovery and validation into the design engineering process.

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Business acumen, through introduction to essential business concepts and exposure to industry. • Sales and communication skills. • Experiential learning opportunities with industry through design and prototyping services and technology commercialization. The Faculty of Engineering has hired two new faculty members to work with Dr. Anis at CEED: Dr. David Knox has worked in industry for over 20 years in engineering design and management, in both large and small startup organizations. He has also taught undergraduate and graduate courses at Algonquin College and Carleton University. Dr. Patrick Dumond is a recent graduate from the Faculty with significant experience in teaching engineering design and in mentoring student teams in national and international competitions such as Supermilage and Formula SAE. From the tech bench … At the Faculty of Engineering’s Richard L’Abbé Makerspace, anyone is welcome to invent, play, design and build. And by anyone, they mean anyone from the community at large, for free. This is where the community and the Faculty can truly come together. The Makerspace is equipped with 3D printers, Arduinos, virtual reality, laser cutters and much more. The Makerspace has welcomed over 3,000 users since its launch in September 2014 and provided over 150 workshops for students and the community alike.

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A natural hotbed for the arts and entrepreneurship

Vanier’s natural attributes fuel its gentrification Local leadership with an eye to the future and deep respect for the past. A community mindset that embraces and celebrates “different.” An affordable neighbourhood with a great location adjacent to downtown. Vanier is levering all these strengths to build a bright future for all its residents. “Gentrification” isn’t something that’s being forced upon this unique community. It’s the natural next step in its evolution. Just ask social entrepreneur Janak Alford, founder of prototypeD TEAM Inc.

Grounds for creativity to grow

But don’t just take his word for it

This trend is paying off for Beechwood Avenue business owners Lauren Power and Greg Boone. Like Janak, they have found Vanier fertile soil in which to seed something new. Lauren was no stranger to Vanier when she and Greg launched Red Door Provisions two years ago. She had spent her teens in the area, attending high school in neighbouring Rockcliffe. After 10 years away, she returned to Ottawa to find big changes afoot in her old stomping ground.

MORE AFFORDABLE NEIGBHOURHOODS LIKE VANIER NATURALLY BECOME GROUNDS FOR CREATIVITY TO GROW. “We saw that Beechwood was right on this crest of new development, with proposals for upscale condo projects,” she said. “We knew the potential of the neighbourhood and we wanted to be part of this renewal, part of the boost.” This “boost” is happening across Vanier, from Beechwood, to McArthur Avenue and Montréal Road. “Vanier is an up-and-coming place for sure,” Greg said. “It’s changing every day. We like the neighbourhood aspect – everyone knows everyone. It’s not overrun by big commercial entities. It still feels like most every business is unique to this area. Even the big box stores have this community vibe to them.” As entrepreneurs, location combined with affordable real estate in their choice of Vanier. Manageable startup costs have

Did you know …

Driving the eat local movement

prototypeD TEAM worked

Over on McArthur Avenue, Chef Eric Patenaude found the same key ingredients to build his dream business – Todric’s Restaurant and Catering. When Eric decided to expand his catering business with a restaurant nine years ago, he wanted a location with room for growth that he could afford to purchase outright instead of lease. That search led him to Vanier. He not only became a business owner in the area, he became a resident, too. Todric’s draws its own loyal following of customers from the community and big local employers such as the RCMP. It also serves as a tasty advertisement for the catering side of the business. Don’t expect grocery store-style sandwich catering here. Todric’s is known for the quality, originality and healthy variety of its menus, based around fresh produce sourced from local farmers. The catering business is in demand for everything from cocktail receptions and embassy events, to corporate functions and life events like weddings. “It’s a great location geographically, giving us quick access to client locations downtown,” Eric said. “We’ve certainly seen a lot of change since we moved in. I’ve even had customers who haven’t been to Vanier in a while comment on how different it is from what they remember.”

In the summer of 2015, Janak Alford and the

with the QBIA and the to bring a CloudLab to Vanier – a mobile maker space housed in a modified big-rig trailer. More innovative projects are planned for Vanier that will engage local creative and arts groups and entrepreneurs, supported by the next iteration of prototypeD’s mobile maker spaces – its Innovation Pods. This will all tie back to prototypeD’s work with Ottawa’s new Innovation Centre at Bayview Yards.

Learn more about the opportunities for developers, investors and retailers in this thriving community.

Become part of the community

Vanier is growing in size and affluence. Its diversity, affordability, authenticity, and appeal to artists and entrepreneurs alike makes it one of the most distinct and dynamic communities in the National Capital Region. “People forget how gorgeous the area is – we’re on the water, there’s tons of greenspace and parks, we’re five minutes from the ByWard Market,” said Lauren. “We have so much to offer. We really are stoked to be a business in this neighbourhood and be a champion for Vanier.” To learn more about business and investment opportunities in Vanier, visit www.vanierbia.com or call the Quartier Vanier BIA office at 613-745-0040.

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Cachet, indeed. Just look at the numbers. Running with the last available census data, Vanier’s population grew by 2.8 per cent between 2006 and 2011. Household incomes climbed by almost 13 per cent during this period. One quarter of Vanier’s population has an annual household income over $100,000. Almost half of the working population within the boundary of the Quartier Vanier BIA work in the federal public service.

Riding the crest

allowed them to flourish. Their lunch café and bakery features a unique mix of fresh-made treats, great coffees and house sodas, hearty brunch fare, and Lauren’s own signature jams, marmalades, chutneys and garlic scapes.

MONDAY, NOVEMBER 7, 2016 MONDAY, OCTOBER 10, 2016

Janak came to Vanier several years ago, searching for the right location on which to develop a new housing development that would respect the character of its neighbourhood. Vanier residents impressed him with the pride they took in their community’s eclectic diversity and their desire to maintain its authenticity and integrity as they look to the future. His development – a four-unit apartment building with a renovated 1950s bungalow – completed in January. By that point, he had already become a resident of Vanier. “I really love Vanier,” he said. “We wanted to live in this community because it has been so receptive and supportive of our crazy ideas. It’s a fun community to walk around and bike around. My son and I are always going to new places.” Janak gives full credit to Vanier’s community leaders for their efforts to grow the neighbourhood in a positive way while remaining true to its roots. He considers the most important Vanier narrative to be the one that recognizes it as a hotbed for the arts and entrepreneurship. “Groups of creative people who are following their passions for entrepreneurship or the arts have to make sacrifices,” he said. “More affordable neigbhourhoods like Vanier naturally become grounds for creativity to grow. Vanier definitely has that appeal because it is more affordable for young families and entrepreneurs and it is getting that cachet.”

And why not? Consider how easy of a commute it is from Vanier to the government, professional and high-tech jobs downtown – some 285,000 jobs, just to the east and south. The opportunity to bring more high-end goods and services to the area shouldn’t be overlooked. As of 2013, Vanier businesses were capturing less than half of residents’ collective $820 million in annual retail and service spending.

COMMENTARY Great River Media 250 City Centre Ave., Suite 500 Ottawa, Ontario, K1R 6K7 obj.ca TELEPHONE Phone: 613-238-1818 Sales Fax: 613-248-4564 News Fax: No faxes, email editor@obj.ca PUBLISHER Michael Curran, 238-1818 ext. 228 publisher@obj.ca CHIEF MARKETING OFFICER Terry Tyo, 238-1818 ext. 268 terry@greatriver.ca EDITOR, PRINT CONTENT David Sali, 238-1818 ext. 269 david@greatriver.ca EDITOR, ONLINE CONTENT Peter Kovessy, 238-1818 ext. 251 pkovessy@obj.ca REPORTER Craig Lord, 238-1818 ext. 285 craig@techopia.ca

Going the extra mile to earn rewards? It’s not always worth it Michael Prentice says while it might seem tempting to shop at a specific retailer to rack up loyalty points, it’s a smart idea to do the math beforehand

MONDAY, NOVEMBER 7, 2016

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ho can resist getting something for nothing? I certainly can’t, which is why I collect both Air Miles and Aeroplan reward points. But it’s growing increasingly difficult to know how best to cash in these rewards once you’ve earned them. And – if you are not careful – you may never get the reward you’ve earned under either of Canada’s two leading loyalty programs. Air Miles has announced that as of the end of 2016, reward miles will expire five years after they were earned. Five years might seem a long time to save up enough reward miles towards a round-trip flight anywhere within North America, but it isn’t when you know how little a reward mile is worth. As far as I know, Aeroplan does not intend to place any such time limit on earning or spending rewards under its program. But collectors of Aeroplan reward miles already risk losing them if they do not collect any Aeroplan points in a 12-month period. Aeroplan spells out its policy on this on its website, where it says: “Mileage will expire in accounts that have no qualifying activity in the previous 12 months. This means that you must earn or redeem at least one mile in a 12-month period to keep your account active.” While this is Aeroplan’s policy, some banks offering Aeroplan credit cards say their customers are exempt from the 12-month expiry policy provided their accounts are in good standing.

As an avid collector under both these rewards programs, my golden rule is to never, ever shop somewhere simply because a retailer offers Air Miles or Aeroplan points. An Air Mile may be worth only about 10 cents, while an Aeroplan reward mile may be worth as little as three cents. Why buy a tank of gas to collect a couple of Air Miles, perhaps worth less than a quarter, when you might be able to save a dollar or more by filling up at a cheaper gas station? It’s not true that all gas stations charge the same. In Ottawa, the biggest influence on retail gasoline prices appears to be the Costco shopping club near the intersection of Merivale and Hunt Club roads. Costco, which charges a membership fee of slightly more than $1 a week to shop there, charges gasoline prices that are usually several cents a litre below the city average, causing nearby stations to also charge less than the city average. But back to the Air Miles and Aeroplan rewards programs. While I’ve been collecting Air Miles for years, I only recently learned I have a choice in how to spend them: They can be put towards travel costs or other rewards of uncertain value, or they can be exchanged for vouchers, with a specific cash value, to be spent at a wide range of retailers. However, there is a catch: You must choose between these two options before collecting the Air Miles.

With the cash option, at least you know what you’re getting for your Air Miles. For 950 Air Miles, you receive a cash voucher worth $100 – meaning an Air Mile is worth slightly more than 10 cents. My first thought was it’s better take the cash option. But then I wondered, how much are those Air Miles really worth when used for air travel? The answer, at least in the example I chose, was about 16 cents. I looked at how many Air Miles would be required for a round trip from Ottawa to Vancouver in the spring of 2017. The answer: 4,900 Air Miles plus $136.54 in taxes and fees. Then I checked Air Canada’s fare for that trip. It was $937.71, all taxes and fees included. From that, I was able to calculate that the value of my Air Miles was about 16 cents each. I still can’t decide whether it’s better to take the bird in the hand (the cash voucher worth about 10 cents per Air Mile) or the two birds in the bush (assuming each Air Mile is worth about 16 cents on air travel). Still, it’s a nice dilemma. If you’re careful, it costs nothing to earn these rewards. But be sure you collect your reward!

Michael Prentice is OBJ’s columnist on retail and consumer issues.

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Getting a read on writing reports

I try to get my own reports and briefings down to one page. Often it’s a challenge. With good editing, it can be done

No one has time for long-winded executive summaries, and Klipfolio CEO Allan Wille has a few tips to make them more compelling

ike many CEOs, as our business becomes more complex, I have less and less time to read the reports, long-winded e-mails and other written materials that regularly come across my desk. I try to get my own reports and briefings down to one page. Often it’s a challenge. But with good editing and practice, it can be done. Here are four tips for condensing your next executive summary to one page:

the opposite. Put the key messages and action items up front. For example: “We need to adjust X in product Y.” Having identified the issue, you have to establish the relevance and impact – usually in one or two bullets or sentences. For example: “We are bleeding sales this quarter.” Tell me what action needs to be taken. What are my choices? What decisions have to be made and when? And finally, don’t leave out your recommendation.

1. LEAD WITH THE MAIN MESSAGE A lot of reports and briefings are organized like a mystery novel with the “whodunit” coming at the end. Management reports should be just

2. GROUP INFORMATION In any presentation, it is important to identify what I call the “big beats.” These are the issues and data that continually stand out – the themes.

They will vary from report to report, but they are vital to content and presentation. Organize your information around these “big beats.” Make them into headings that stand out. The headings will help de-clutter your text, which, in turn, should provide necessary detail or direct the reader to other sources if required. 3. THINK GRAPHICALLY The reader’s eye usually goes first to the top left-hand corner of the page. So make sure your most important information appears here. Then the eye usually scans to the right of the page and down from there. You need to provide visual guides to

ensure information is consumed in a logical order. Try using different font sizes, colours, blocking or boxing text, highlighting text or other graphic techniques. One of the most successful techniques is using white space – lots of it! – to give the eye a breather. 4. SHORTER IS BETTER If everything is important, then nothing is important. Getting a report down to one page shows me that you have thought about what’s important to me and our company. If I have a question (and I usually do), I will ask. So lose the fear. When it comes to reports, shorter is better.

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Continued from page 4 “We saw an opportunity for the company to really expand and accelerate the development programs we were working on,” said Mr. Farah, a New York-based biotech industry veteran who joined Turnstone as chief executive late last year. “We are seeing promising results in the first clinical trial, and we are starting to see the type of activity that we had hoped for.” Mr. Farah said he expects it will be at least five to seven years before the company can bring a new drug to market and begin generating substantial revenues. “Much of it depends on what kind of results we see in the clinic,” he said. “These therapies take a very long time to develop. We’re moving along as fast as we can.” The firm’s lead scientists and founders – Dr. John Bell of The Ottawa Hospital, Dr. David Stojdl of the Children’s Hospital of Eastern Ontario and Dr. Brian Lichty of McMaster University – have one clinical trial on the go and plan to launch another at the end of 2016, followed by two more next year. The results of the first trials are expected to be published near the end of 2017. Venture capital is an increasingly important source of capital for biotech

NOTABLE OTTAWA VC DEALS IN 2016 Diablo Technologies: $27.12 million (Celtic House, Business Development Bank of Canada, Battery Ventures, ICV Partners and Hasso Plattner Ventures Management) Assent Compliance: $20 million (Volition Capital, OpenText Enterprise Application Fund, Business Development Bank of Canada, Industrial Research Assistance Program, Royal Bank of Canada) You.i TV: $12 million (Time Warner Investments, Vistara Capital Partners, Kayne Anderson Capital Advisors) Fusebill: $6 million (ScaleUP Ventures, Langdell Investments, OMERS Ventures, BDC Capital) firms, which generally must put products through years of rigorous testing before they are approved for sale to the public. Turnstone’s deal is the second-largest round of venture capital funding in Canada this year for a biotech startup, according to Invest Ottawa.

“What we and others in this field are driving towards are cures for cancer. There’s no question about it – that’s our goal.” – TURNSTONE BIOLOGICS CEO SAMMY FARAH

“Community support has been and will continue to be crucial for our research,” Dr. Bell said in a statement. “However, developing new therapies is extremely costly, so we also need to engage the private sector to take our research to the next level.” Turnstone’s research focuses on a form of immunotherapy called oncolytic viruses – agents that infect human cancer cells, multiply and ultimately destroy tumours. The viruses are also used in a vaccine that can trigger the body’s immune system to identify and attack malignant tumours based on proteins called antigens found in the cancerous cells. Current tests are targeting what are known as “solid tumour” cancers such as melanoma, lung cancer and colorectal cancer, Mr. Farah said. The second

phase of trials will focus on small-cell lung cancer, breast cancer and esophageal cancer, he added. Ultimately, Turnstone’s drugs will most likely be used in combination with other forms of therapy to treat patients. “What we and others in this field are driving towards are cures for cancer,” Mr. Farah said. “There’s no question about it – that’s our goal.” Dr. Stojdl said the latest funding announcement is another step in moving cancer scientists closer to achieving that objective. “This financing is incredible validation that we’re on the right track,” he said in a statement. “We all want to be part of a scientific narrative that changes lives, and I believe that our immunotherapy approach is it.”

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TECHNOLOGY Firm’s vote-forecasting system trumps competition After tracking U.S. election trends using patented artificial intelligence software, Ottawa company is ready to make its call on Donald vs. Hillary BY DAVID SALI david@obj.ca

ith one of the most divisive presidential election campaigns in memory being waged south of the border and retailers around the world seeking every edge they can get in an increasingly fragmented marketplace, business has never been better for an Ottawa firm that predicts how voters and consumers will behave. Advanced Symbolics uses artificial intelligence software designed at its York Street head office to forecast human behaviour, whether it’s which candidate U.S. voters will choose on Nov. 8 or what products residents in a particular Toronto

neighbourhood are likely to buy a month from now. The company’s patented AI technology has been used in more than 100 elections in Britain, Canada and the United States over the past five years, and corporations ranging from Bell and Disney to shopping mall owners Cadillac Fairview and Morguard are turning to Advanced Symbolics to get inside customers’ heads. “There are very few companies that are using artificial intelligence well in order to predict human behaviour,” says CEO Erin Kelly. Ms. Kelly says the company has seen “huge client growth” over the past year. Advanced Symbolics’ revenues have ballooned 400 per cent in the past 12 months despite a major reorganization that

included the venture ditching its old name, ZeroPi, and jettisoning its call centre after one its co-founders left the firm. But the changes also made Advanced Symbolics – which dropped from 21 to 11 employees as a result – a leaner and more efficient enterprise, Ms. Kelly says. SHARPER FOCUS “Because we focus completely on (artificial intelligence) and we’re experts in that, we are able to do market research and predictive work very cost-effectively,” she explains. Using a representative sample of 200,000 Americans of voting age chosen to reflect the country’s ethnicity and a host of socioeconomic factors, the company’s election-forecasting system, dubbed “Polly,”

Advanced Symbolics CEO Erin Kelly. FILE PHOTO

regularly tracked social media and blog posts leading up to the presidential vote in an effort to take the temperature of the typical U.S. voter. Polly has even been programmed to understand sarcasm and other nuances of the English language. “If somebody says, ‘I love Donald Trump’ or ‘I like Donald Trump’ or ‘Donald Trump is OK,’ how does that translate in terms of voting intentions? That’s something that the (system) learns over time,” Ms. Kelly says.

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Erin Binks, Managing Director Canadian Association of Family Enterprise (CAFE) Ottawa ottawa@cafecanada.ca or 613-232-2233

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“Are Americans ready for a Trump presidency? Our (software) is saying no. Now, it’s going to be closer, I think, than people believe.” – ERIN KELLY, CEO OF OTTAWA’S ADVANCED SYMBOLICS, WHICH FORECASTS ELECTION RESULTS USING ARTIFICIAL INTELLIGENCE SOFTWARE

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Polly also scoured thousands of online news sites and relevant blogs to help determine which way the electoral winds were blowing. For the record, Ms. Kelly says, the system is calling for a Hillary Clinton victory – albeit by a slimmer margin than most polls are predicting. “Are Americans ready for a Trump presidency?” she says. “Our AI is saying no. Now, it’s going to be closer, I think, than people believe.” As high-profile as campaign work might be, it accounts for only a sliver of the company’s total revenues. About two-thirds of Advanced Symbolics’ business comes from shopping mall owners, major brands such as Disney or ad agencies working on behalf of clients like Bacardi. The company’s AI system, called “Penny,” tracks product reviews and consumer reactions on social media to predict which of those clients’ offerings are likely to be hits and which ones are doomed to be duds. “She learns very quickly how to correlate what people say about the product and whether or not that translates into sales,” Ms. Kelly says. Penny can even zero in on specific locations it sees as particularly promising. If a bunch of people living near St. Laurent Shopping Centre seem especially excited about a new store, for example, that retailer can target billboard campaigns for that neighbourhood. “It can actually tell you not only what your sales will be, it tells you what your sales could be if you marketed differently,” explains Ms. Kelly. “It’s very forwardlooking.” The professional forecaster of human behaviour is predicting a bright future for her firm. But she cautions that the most accurate predictions in the world don’t mean a thing if retailers aren’t nimble enough to act on them. “There’s no point in telling you you’ve got a $1.5-million opportunity in Toronto next month if you can’t get your marketing materials out the door fast enough,” she says. “A smart company recognizes that it is going to want to be able to capitalize on that.”

STAY BIG OR STAY HOME!

LIFETIME ACHIEVEMENT ‘I didn’t want to define myself as a businessman’ Father, philanthropist and aircraft enthusiast Michael Potter might have built his reputation as a trailblazing tech entrepreneur during his 20-year tenure as CEO of Cognos, but his legacy in the community extends far beyond the boardroom Vintage aircraft remain one of Michael Potter’s biggest passions. PHOTO BY MARK HOLLERON

MONDAY, NOVEMBER 7, 2016

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ne of the true titans of Ottawa’s “golden generation” of high-tech leaders, Michael Potter took a small consulting company named Quasar Systems, renamed it Cognos and built it into the city’s preeminent software firm in the 1980s and ’90s. Mr. Potter and his team were trailblazers, helping to transform the business of making software from custom applications created to serve the needs of individual clients to products designed to be used on a wide range of systems around the world. Under his watch, Cognos became a billion-dollar enterprise. Its signature products – PowerHouse and PowerPlay – became indispensable tools for clients in more than 100 countries, and by the time Mr. Potter stepped down as CEO in 1995 the firm was a world leader in the business intelligence software space. One of Ottawa’s true tech trailblazers, Mr. Potter is this year’s recipient of the OBJ-Ottawa Chamber of Commerce Lifetime Achievement Award. Born in London in 1944, Mr. Potter moved to Canada with his family at the age of seven. Following stints in the navy and the federal government, he joined Quasar Systems in 1972, launching a brilliant 23-year at a company that eventually came to be defined by his leadership. Now 72, Mr. Potter recently sat down with OBJ to talk about his business career and his many other passions. What follows is an edited transcript of that conversation. OBJ: During your three years in the navy, you already knew you wanted a career outside the military. How did you prepare for that? MP: Having in mind that I wanted a civilian career, I actually did a little bit of lobbying to suggest that rather than send me to sea – three years that would be a lot of fun but wouldn’t lead anywhere

for either me or them – I felt I would be more useful working at a desk job using the full education that I had, and they agreed. I joined the Defence Research Board, a half-civilian, half-military research organization that provided analytic services to the military. OBJ: That obviously provided a pretty good foundation for what came later. MP: It did. I was working in a field called operations research, which used applied mathematics, mainly computer-driven, to analyze supply chains or queues or to help design and optimize manufacturing processes. I hadn’t studied that in university, but I had the mathematics skills to figure out the kinds of problems we were dealing with. After three years, I came out of uniform and did the same kind of work for the federal government for an additional year. OBJ: You joined Quasar Systems (the forerunner of Cognos) in 1972. Within three years, you owned the company. How did that come about? MP: Quasar provided services to create custom-built software under contract, initially almost entirely to the federal government. Although there was a good living to be made in that business, expansion geographically beyond Ottawa was difficult, and secondly, being service-based there was no leverage to it. I was young and had no family to worry about, so perhaps I was more of a risk-taker. I told the partners it would be worth their while and mine if I acquired the company and took it beyond custom software services. OBJ: Early on, you brought in a guy you’d worked with previously, Bob Minns, who ended up playing a huge role in the company. Can you talk about your relationship? MP: Bob was an extraordinarily important guy to the whole Cognos story

– he’s not as well-known as he should be. I worked with him on a project in the federal government. When I moved to Quasar, I asked him to join me. Once with Quasar, Bob had the bright idea, which was quite revolutionary at the time, that you could develop a higherlevel language which could allow an end user, not an IT specialist, to be more directly involved in actually writing code that would extract data and write the summary reports that he needed. That higher-level language was independent of any particular application, so it could be standardized and packaged as a product. Bob then developed the idea and we released our first software product in the early ’80s. The margin for selling these products was much higher. The geographic constraints of having our people at each customer site were gone, so we could sell it internationally. It just took off. The product was a roaring success commercially. OBJ: Your next product, PowerHouse, was fittingly named because it turned you into a powerhouse. MP: PowerHouse was an extension of the original Quiz reporting product with much broader functionality. It was aggressively marketed internationally – in the U.S., Europe and farther afield in Australia, New Zealand and Asia – and PowerHouse became a $100-million business. It was a very exportable product and we had a great team behind it. We went public in ’86 on the strength of the growth of that product. OBJ: And then you transitioned into desktop business intelligence software products, which led to PowerPlay. MP: Yes. The platform for the earlier PowerHouse product was the minicomputer, which gave users access to centralized data through terminals. When we developed PowerHouse, there were no personal computers on people’s

desks and no graphical user interfaces. We realized as we got into the latter part of the ’80s that Microsoft’s graphic user interface and decentralized computing were going to change everything for us. There was a lot of discussion in the company how PowerHouse could migrate into that world. It turned out the most effective approach was to invest significant R&D resources to create a new set of products to address desktop computing and graphical interface. That’s where the business intelligence idea – PowerPlay – came in. Initially the development was a joint project with an existing PowerHouse user – Procter & Gamble. They were interested in developing analytical tools to look at marketing and sales of their different brands. They trusted our technical capabilities because they were strong users of PowerHouse. Under our agreement with P&G, they would be the early adopter of a new analytical product we would develop, giving them a competitive advantage. But contractually, the intellectual property rested entirely with us. So it was a terrific way for us to do some innovative new product development alongside end users who could tell us exactly what they wanted in that product and, at the same time, have much of our R&D funding provided. OBJ: After 23 years at the company, you decided to step down as CEO in 1995. Why did you decide to leave at that time? MP: I was over 50 at the time and obviously the company had done very, very well. Being the CEO of a growing company is absolutely a full commitment – long hours and lots of travel. Some people – and I admire them for it – manage to find a balance between family life and business life. For some of us – and I was one – it was harder to find that balance. And like any company, as

Want to find out more about Michael Potter’s thoughts on today’s tech scene? Check out obj.ca to read the Lifetime Achievement Award recipient’s full interview

POTTER AND COGNOS THROUGH THE YEARS 1944: Potter born in London, England. 1951: Family moves to Canada and settles in Vancouver. The Potters relocate to Winnipeg, Victoria and Hamilton before returning to Victoria, where Mike graduates from high school in 1961. 1966: Potter earns bachelor’s degree in physics from Royal Military College. 1967: Potter earns master’s degree in physics from UBC, begins three-year stint in navy.

Potter with partner Diane Cramphin. PHOTOS COURTESY MICHAEL POTTER

A skilled pilot, Potter continues to take to the air regularly.

“Although there was a good living to be made in the (consulting) business, expansion beyond Ottawa was difficult, and secondly, being service-based there was no leverage to it. I was young and had no family to worry about, so perhaps I was more of a risk-taker.” – MICHAEL POTTER, ON ACQUIRING COGNOS FORERUNNER QUASAR SYSTEMS FROM ITS ORIGINAL FOUNDERS IN 1975

it grows, it benefits from a different style of management and from executives who are accustomed to and interested in managing larger organizations.

Colleagues praise tech leader: Page 16

1979: Quasar introduces Quiz, its first mass-distributed software product. 1982: Company introduces PowerHouse, fourth-generation application development software for mid-range computer platforms. 1983: Quasar changes name to Cognos, from the Latin root word “cognosco,” which means “knowledge from personal experience.” 1985: Cognos opens new head office in Ottawa and relocates U.S. headquarters from San Francisco to Boston. 1986: Cognos goes public on the Toronto Stock Exchange and the Nasdaq. 1989: At $100 million in revenues, Cognos is world’s largest company devoted to making software development tools. 1990: Company introduces PowerPlay, a Windows-based business analysis tool that becomes its flagship product. 1995: Potter steps down as CEO and is replaced by Ron Zambonini. 2003: Potter founds Vintage Wings of Canada, a non-profit foundation dedicated to preserving and showcasing Canada’s aviation history. 2009: Potter is named city’s outstanding individual philanthropist at Ottawa Philanthropy Awards.

15 OBJ.CA

OBJ: Speaking of flying, you used to pilot your own aircraft to business meetings. How did that passion for flying emerge? MP: I’ve been flying since I left university. Initially I was flying gliders strictly for fun. Then I started to use light airplanes to travel for business. I had enough flying experience to get from A to B fairly reliably, and over many years acquired more capable airplanes and added to my own flying skills – an instrument rating and then an airline transport rating – and I ultimately flew turboprop aircraft and business jets. When I had the opportunity after Cognos, I went back to my roots of flying for pleasure. I’ve have also had a passion for older aircraft, and I, somewhat impetuously, bought a Second World War Spitfire in 2000. It wasn’t a reproduction – it was the real thing. I learned to fly it, which was sort of a challenge, and I rather enjoyed the interest that many

OBJ: What else occupies your time these days? MP: I now have three daughters aged 18, 19 and 13 and they are the most important part of my life, as you can imagine. I couldn’t possibly have combined my business life and my family life. It wouldn’t have worked, and I think I would’ve disappointed myself in terms of being a parent. But when I finished my business career, I felt I was still young enough to be an active father. I suppose I also felt that I’d learned a few things that I might be able to share as they grew up, and I had a degree of financial independence I could use to give them some opportunities, both to travel and to give them a financial base to begin their adult life. I guess it was all a gut feeling, rather than a plan, but it became central to my transition from a businessperson to someone with more diverse interests.

1975: Potter buys out Quasar founders Peter Glenister and Alan Rushforth, becoming company’s CEO.

MONDAY, NOVEMBER 7, 2016

OBJ: Have you ever had any regrets about leaving when you did? MP: Not at all. I recall that, following the announcement of my resignation, I was asked by a journalist: “Mike, why would you step down now when things are going so well?” I think I replied something like: “What’s the alternative? Is it better to step down when things are not going well?” It was a good time for me to leave. New management would take over an organization in good shape. The challenges were all positive ones – like growth and how to manage it. And looking back on it, I realized that I didn’t want to define myself as a businessman. Business was a means to an end. Yes, I was fascinated with the challenge of managing people and building a business. I learned an awful lot doing it, but I wanted to explore some of my other interests – flying, sailing – to travel without just going in and out of a glass office tower, and to read things that were not about business management and

technology. I also didn’t think I was too old to think about kids and a family. I felt I would rather be known for some of those things than just being a successful businessperson. Stepping down as CEO at age 51 wasn’t a hard decision for me.

Canadians have in those old historic airplanes. I decided to acquire a collection of these classics and also took the steps required to create a charitable foundation called Vintage Wings of Canada with a mission to show the Canadian public, and particularly young people, what the history of aviation represented. We felt that people wanted to see these old warbirds as they were designed to be flown. We’ve displayed the collection at an air show here in the Ottawa region for a number of years as well as at other shows. I still fly the classics, but I have recently got quite addicted to aerobatic flying and spend more of my time in a modern aircraft designed for that. I don’t know what it is – sometimes I think I might get too old for this – but I just love to explore the full range of an airplane’s capability. It’s an immense amount of fun and a challenge that has no limits.

1972: After working in operations research for the federal government, Potter joins small Ottawa consulting firm Quasar Systems.

LIFETIME ACHIEVEMENT Potter’s gambles paid off for Ottawa K

BY DAVID SALI david@obj.ca

Longtime Cognos chief executive ‘dreamed big’ and turned company into global software juggernaut, former colleagues say

What are the alternatives to Private Equity and

Traditional IPOs? Read Perley-Robertson, Hill & McDougall’s top practical tips for investors and business owners looking to access capital markets here: www.techopia.ca/perley

MONDAY, NOVEMBER 7, 2016

Conor Cronin is a lawyer in the Business Law Group at Perley-Robertson, Hill & McDougall LLP/s.r.l. Much of his practice focuses on helping young entrepreneurs and start-ups get organized and navigate the early stages of their development.

OBJ.CA

nowing his former boss’s affinity for sailing, Alan Rottenberg didn’t hesitate to use a nautical analogy when asked what made Michael Potter one of the city’s top tech executives during his two decade at the helm of Cognos. Every business must navigate its way through “all kinds of storms” on the road to success, said Mr. Rottenberg, the company’s former vice-president of business intelligence. “Not all the sailors believe you’re going to make it through the storm.” But Mr. Potter, this year’s recipient of the OBJ-Ottawa Chamber of Commerce Lifetime Achievement Award, stayed the course when less courageous executives would have steered towards calmer waters, he added. That was never more apparent than when Mr. Rottenberg was getting the firm’s new business intelligence software branch off the ground in the late ’80s and early ’90s. When the venture stumbled out of the gate, some within the company were calling for it to be scrapped, he recalled. Mr. Potter, however, had other ideas. “Mike stuck with it and refused to consider, really, anything but, ‘Let’s keep going here, guys, because this is important to the company, and we’ve got to give it more time,’” Mr. Rottenberg said. “Without that focus that he gave it, it could have gone by the wayside and Cognos would have had to find another way to be successful.” Before long, business intelligence software was the company’s lifeblood, driving revenues to new heights and turning the firm into a billion-dollar enterprise. Former Cognos executive Rob Ashe hailed Mr. Potter’s leadership in pursuing the shift to business intelligence software, saying it rejuvenated the company. “A lot of people bet against us,” he said. “These are industry-defining decisions. Mike made those decisions and a lot of

Former Cognos executive Rob Ashe. FILE PHOTO

people benefited from them.” Mr. Potter’s bold quest to transform the venture then known as Quasar Systems from a consulting firm to a software maker beginning in the late ’70s was equally fearless, Mr. Ashe added. “He’s a risk-taker,” he said of Mr. Potter, who took over the firm in 1975 and served as chief executive until his retirement two decades later. “That was a huge bet at the time. It changed the trajectory of the company completely.” Meticulous and hard-working, Mr. Potter had a knack for finding just the right people to help the company achieve his vision, his former colleagues said. “Cognos was filled with an amazing amount of talent,” Mr. Rottenberg said. “My first six, eight months there, I was blown away by the talent of the people up and down the organization. It was spectacular, both in terms of their character and their competence.” Mr. Ashe, who joined Cognos in the mid-1980s and rose up the ranks to become chief executive himself before retiring in 2012, said he couldn’t think of a more deserving recipient of the Lifetime Achievement honour than Mr. Potter. “I think his influence was felt across the whole Canadian technology scene,” he said. “He saw an opportunity for a global leader. He dreamed big. He was all about substance, and at Cognos, we were really proud of that.”

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EDUCATION Algonquin award ‘a badge of honour’ for alumnus Fathi BY DAVID SALI david@obj.ca

CLUB RED TASTING EXPERIENCE Longtime tech CEO Eli Fathi. PHOTO PROVIDED

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17 OBJ.CA

Algonquin president Cheryl Jensen said Mr. Fathi, who has served on a dozen corporate and community boards, embodies many of the best qualities the college aspires to nurture in its students. “We are so proud to call Eli Fathi one of our alumni,” Ms. Jensen said in a statement. “His entrepreneurial spirit and his belief in the importance of giving back to our community really resonate with me because those are two mindsets we try to foster in all of our graduates.” A graduate of Algonquin’s electronics technology program who went on to earn bachelor’s and master’s degrees in engineering at the University of Ottawa, Mr. Fathi addressed a group of new grads at Algonquin’s fall convocation ceremony upon receiving his award. His message was clear. “Focusing on yourself will only get you so far,” the 64-year-old said. “Aside from what you do for yourself, you have to make contributions to the community. This is the message that is really important in today’s age. It’s very simple – if I make a difference in the life of one person and you make a difference in the life of one person, we make the community a lot better. When we have a better community, everyone benefits.” As a college graduate who went on to further his education at university, Mr. Fathi said he appreciates the increasing willingness of the two post-secondary branches to collaborate on programs that provide students with a more diverse set of skills than either colleges or universities can offer on their own. “University gives you the breadth of thinking, being able to research, being able to dig deeply into important aspects,” he said. “It’s a much broader education. The education you get from Algonquin is very practical. You need both. I got the practical side and then I got the more theoretical (side) – communication, the soft skills. The two go hand in hand.”

MONDAY, NOVEMBER 7, 2016

erial entrepreneur Eli Fathi’s name today is synonymous with the technology industry in Ottawa, but he’s never forgotten where his journey began. Last month, the Israeli immigrant who came to Ottawa as a student in the early 1970s earned one of the highest honours an alma mater can bestow on an alumnus when he was named a recipient of Algonquin College’s Alumni of the Year Award. “To me, this is a badge of honour,” said Mr. Fathi, who has served as chief executive of five local tech firms in a career that has spanned more than three decades. “If you look at what I’ve done in the community from a high-tech perspective, it goes hand in hand with giving back to the community.” It’s not the first award the longtime businessman has received for his many accomplishments over the years, but he knows precisely where it ranks. “That for me is absolutely the top,” said Mr. Fathi, who is currently CEO of big-data analytics firm MindBridge Ai. “The other achievements are professional achievements. You could not have better recognition than from an academic institution that you went to. It’s recognition from the community as a whole, not only just the professional side.” As impressive as his professional achievements have been – he and cofounder Aydin Mirzaee built survey software startup Fluidware into a thriving company that employed more than 70 people before it was acquired by California-based SurveyMonkey in 2014, for example – he said he gets even more satisfaction out of helping young entrepreneurs become successful businesspeople in their own right. “To me, you cannot have corporate success without giving back,” said Mr. Fathi, who has been a mentor at organizations such as Kanata’s L-Spark accelerator. “If you’re a smart person, it’s very easy for you to shine and to move on. But in many cases, people are smart but you don’t notice them. You have to give them the opportunity. Throughout my career in high tech … the interest that I have is to look at people that other people overlooked for a variety of reasons. It’s the most fulfilling thing when you see somebody excel.”

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Espial unfazed in face of revenue dip BY CRAIG LORD craig@techopia.ca

spial Group pitched the potential of its ARRIS Whole Home Solution acquisition during its third-quarter investors call earlier this month after it posted a decline in revenue and a $2.4-million loss. Espial’s revenues for the quarter ending Sept. 30 were $6 million, down from $8.7 million in the same period a year earlier. Adjusted net earnings for the third quarter, including acquisition costs, added up to a $1.9-million loss, compared with a $2.3-million profit in the third quarter of 2015. The company’s net loss for the most recent quarter came in at $2.4 million, a reversal from the $2.2-million profit the company recorded a year earlier. Espial’s cash on hand stood at $44 million as of Sept. 30. The latest news represented a come-

down from the previous quarter, when Espial reported record-breaking revenues of $8.7 million and adjusted earnings of $2.3 million. The company, which makes software and interactive platforms for video service providers, announced in August that it had landed three new customers and partnered with ARRIS, a multibillion-dollar manufacturer of set-top boxes, to acquire its Whole Home Solution (WHS), integrating its extensive network of cloud-hosted services to the Espial Elevate product line. As part of the deal, ARRIS also became a reseller of Espial products. “Espial gains a broad base of new North American customer relationships and further scales the world class integration, operation and software development teams,” CEO Jaison Dolvane said. He said the acquisition will gain Espial a significant number of cumulative subscribers.

OTTAWA’S ECONOMIC

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This annual event will examine trends and opportunities in the city’s business sector and provide an insightful forecast about Ottawa’s economic future. Efaudeliquos erendam. Maiorte ceribem uscit, viri public occhum inatum, simerra in tabem iam stiliae faudeestors hae egerrit concerv ivigilnes es, us inessa L. Tilicatfacitastrum octua ad screm. Urnihic ereortese det rem dendessoltum in tato ta dit catus. Catatquos Ad issoludemum mum a re redepotimum pris, consunteri, con denarid consusperum rei cero istam intere, Cas morum porum que

• A Keynote address by Geoff

Smith, President and CEO, EllisDon

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

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‘Orléans for your business’ is a print and digital magazine launching in February 2017. The magazine and marketing campaign will celebrate and promote Orléans as an ideal community to live, work and play.

• An important update from The Mayor of Ottawa

Tuesday, November 29, 2016

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

Ari se corum et peris et L. Udes! me auctatquo tus clarterbi pari, Equo popubliam ficota, Ti. queris, demque tat, ubites An Maribus octo escrum nonequi EtrariBatis; nit? Quodium menusquero te, quit. conesid rem o dera ctantrudam noc, conica; verum, C. Fulicii su sulisEfaudeliquos in duCupionf erentus sil hacte publi constam iam tem in noserendam. novideMaiorte prarisquiu simis cultudetiae ceribem fecturnis audam. Atuspim an- uscit, viri cus Cat grae ad duces, intem te public occhum inatum, simerra ulto no. mente, in uttabem vid confectus nici tum. Quamentis, senterf iam stiliae faudeestors hae egerrit concerv a viti, nonsuliciam nos, ne praeivigilnesectamqua nonteat uratist es, us inessa L. Tilicatfacitaspopon te catiliam tifentemula imoveni hilice dem peris esse trum octua ad screm. Urnihic ereortese diori det remin dendessoltum Si se, te cationdentem etra, norum addum dem, cotis, in tato ta dit catus. Catatquos hoccienatus haciAd prae quenont? An ditam, omnimulinte, issoludemum mum a re redepotimum morbemum vasdam, Catuapris, consunteri, commovid cum intebefacia dit, con denarid consusperum rei ego nenit, ute, crectui publiem cone probussilis noris perdies cero istam intere, Cas morum iam quodi ina, nostimovem tus me prensilne pos pectus ego porum que re num caturbis; iname anum tus hem vil ut que conos ad fur Efaudeliquos hiliquame terimunum nonferei hicon ve, quam dit; ne conc reerendam. Maiorte ceribem uscit, viri iaequem noc vicaurit, sescrem nimum de peri consicitem crei public occhum inatum, simerra teludam hostra?inTem furistr untius cae tem nonos, tabemquo iam stiliae faudeestors haeemoraectus egerrit concerv ivigilnesseniu quistor ectuam Romne audeatil te etientr es, us inessa L. Tilicatfacitasve, Catu inius Ahalius in abenquem, quam nin vid mus ad trum octua ad screm. Urnihic dum iaes? Catu ereortese int gratimo auctus furobus consus perra, det remC. dendessoltum tato ta dit catus. Simius ninatuminopublius nos Catatquos consus issenat.

nici tum. Quamentis, senterf ectamqua nonteat uratist imoveni hilice dem peris esse etra, norum addum dem, cotis, nont? An ditam, omnimulinte, commovid cum intebefacia dit, cone probussilis noris perdies me prensilne pos pectus ego tus hem vil ut que conos ad fur hicon ve, quam dit; ne conc renimum de peri consicitem crei furistr untius cae tem nonos, seniu quistor ectuam Romne quem, quam nin vid mus ad

Orléans For Your Business

• Presentation by Douglas

INDIVIDUAL TICKETS

Ra nica caellab efaudeliquos erendam. Maiorte ceribem uscit, viri public occhum inatum, simerra in tabem iam stiliae faudeestors hae egerrit concerv Efaudeliquos erendam. Maiorte ceribem uscit, ivigilnes es, us inessa L. Tilicat. viri public occhum Ed in se tem et facitastrum inatum, simerra in tabem iam stiliae faudeestors hae egerrit octua ad screm. Urnihic ereconcerv ivigilnes es, us inessa ortese det rem dendessoltum L. Tilicatfacitastrum octua ad screm. Urnihic ereortese in tato ta dit catus. Catatquos det rem dendessoltum in tato Ad issoludemum mum a re ta dit catus. Catatquos Ad redepotimum pris, consunteri, issoludemum mum a re redepotimum pris, consunteri, con denarid consusperum rei con denarid consusperum rei cero istam intere, Cas morum cero istam intere, Cas morum porum que constis estiamei porum que publibus crio, moeri sedi tam Efaudeliquos erendam. Maiorte moludet; nostem orunum o tes ceribem uscit, senicon sularem pris; haeteris viri public occhum inatum, simerra in tabem iam stiliae confectod pultortiente diem faudeestors hae egerrit con- es in tuam issena, se nocchic cerv ivigilnes es, us inessa L. averox nortemus re intercerem Tilicatfacitastrum octua ad screm. Urnihic ereortese det quem. Gra L. Satum seni in rem dendessoltum in tato satum nox noctodium.

This event will include:

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

RAISING THE BAR

Fulicii su sulis in duconstam iam tem in nos novide fecturnis

Ra nica caellab efaudeliquos erendam. Maiorte ceribem uscit, viri public occhum inatum, simerra in tabem iam stiliae faudeestors hae egerrit concerv ivigilnes es, us inessa L. Tilicat. Ed in se tem et facitastrum octua ad screm. Urnihic ereortese det rem dendessoltum in tato ta dit catus. Catatquos Ad issoludemum mum a re redepotimum pris, consunteri, con denarid consusperum rei cero istam intere, Cas morum porum que constis estiamei publibus crio, moeri sedi tam moludet; nostem orunum o tes senicon sularem pris; haeteris confectod pultortiente diem es in tuam issena, se nocchic averox nortemus re intercerem quem. Gra L. Satum seni in satum nox noctodium. Ari se corum et peris et L. Udes! Equo popubliam ficota, Ti. Maribus octo escrum nonequi usquero te, quit. conesid rem o verum, C. Fulicii su sulis in duconstam iam tem in nos novide fecturnis audam. Atuspim anulto no. mente, ut vid confectus a viti, nonsuliciam nos, ne prae popon te catiliam tifentemula Si se, te cationdentem diori in hoccienatus haci prae quemorbemum vasdam, Catua ego nenit, ute, crectui publiem iam quodi ina, nostimovem tus re num caturbis; iname anum hiliquame terimunum nonferei iaequem noc vicaurit, sescrem teludam hostra? Tem quo audeatil te etientr emoraectus ve, Catu inius Ahalius in abendum iaes? Catu int gratimo C. Simius ninatum opublius nos me auctatquo tus clarterbi pari, queris, demque tat, ubites An EtrariBatis; nit? Quodium mendera ctantrudam noc, conica; Cupionf erentus sil hacte publi prarisquiu simis cultudetiae cus Cat grae ad duces, intem te

By participating in this campaign your message will be seen by a local audience in print and digital, AND you will be supporting the Orléans Chamber of Commerce in promoting a strong business environment in your community. • Reach an exclusive local audience in print and online • Wrap your message around high-quality editorial content • Help support and promote your business and your community

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

For more information, contact the Orléans Chamber of Commerce at (613) 824-9137 or officemanager@orleanschamber.ca

TECH

Jacie Levinson, 1936-2016

Founder, Levinson-Viner Chairman, InterRent REIT It is with deep sadness and regret that we share that Jacie Levinson, the founder of Levinson-Viner (predecessor of the CLV Group), as well as the Chairman of the Board of InterRent REIT, passed away on October 9, 2016. Jacie was an incredible leader, teacher and mentor to many people. He was not only a very generous philanthropist, but also gave his time to many organizations. Jacie rose to several leadership roles, including Director of the Ottawa Real Estate Board, President of the Ottawa Jewish Community Foundation, Board Director for the Bank Street BIA, and most recently Chairman of the Board of InterRent REIT. Shopify CEO Tobi Lutke says the firm’s focus on mobile commerce is paying off. FILE PHOTO

Shopify revenues soar 89 per cent in third quarter BY CRAIG LORD craig@techopia.ca

His thirst for knowledge was ever-present as well as his positive energy. He respected everyone and brought out the best in all of us. Jacie liked nothing more than to mentor the next generation. He always imparted his wisdom with a subtleness that made you feel like you were part of the solution. Jacie’s sense of humour and his ability to tease will be sorely missed. He had the highest of ethics and believed that all outcomes had to be win-win for all parties. A true Gentleman, in every sense of the word. Jacie had a rare cancer that was discovered nine years ago. To the surprise of many medical experts, he fought back with tenacity and beat it. He was the eternal optimist and used his positive thinking not only to enrich others around him, but to fight this cancer. Jacie was a true family man. He always took interest in the families of his friends and colleagues and beamed when he talked about this. He is survived by his loving bride, business partner and best friend Sandra Levinson; sons Steve (Barbara), Michael (Lorraine) and Daniel (Kirsten); grandchildren Jacob, Mathew, Jamie, Cara, Alexandra (Pete) and Rebecca (Conor), and great grandchildren Tyler and Lucy. He was the dear brother of the late Barbara Greenberg (the late Sydney) and Frances Ballon (Henry). Jacie had many great attributes and has left us with deeply ingrained values and guiding principles. Jacie always had your back and would never leave any of his partners hanging. His word and his handshake was his bond. It meant more than anything that was reduced to writing on paper.

To the many he leaves behind, he will simply be remembered as a Great Friend. Our thoughts and prayers are with you, Jacie. You will be missed and never forgotten.

MONDAY, NOVEMBER 7, 2016

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hopify’s core strategy of focusing on helping its merchants sell more products is paying off, the CEO of the Ottawa-based commerce technology firm said earlier this month after reporting significant growth in several key metrics. Shopify said its third-quarter revenue jumped 89 per cent to US$99.6 million (all figures are in U.S. dollars). Monthly recurring revenue – a key metric for SaaS companies – stood at $16.3 million at the end of the threemonth period ending Sept. 30, an increase of 67 per cent from the $9.8 million Shopify reported a year earlier. The company attributed this increase to a growth in its customer base as the number of merchants using the Shopify platform rose to more than 325,000 in the quarter. Gross merchandise volume, which is the total value of products sold by merchants on its platforms, increased to $3.8 billion, a jump of 100 per cent yearover-year. The company’s net loss widened to $9.1 million compared with $4.7 million during the same period a year ago. Adjusted net loss, an internal number used by the company, was reduced to $1.8 million for the period, compared with $2.4 million a year ago. The Ottawa-based firm was highly positive in its third-quarter conference call to investors on Nov. 2, touting a number of platform successes, including

the launch of Apple Pay for web and the Shopify mobile app, as well as the integration of Canada Post to its Shopify Shipping program. After the close of the quarter, the company also announced the acquisition of Waterloo-based Boltmade to help accelerate its Shopify Plus program and expanded its offerings to allow merchants to sell on Facebook Messenger. CEO Tobi Lutke told analysts on the call that this focus on mobile commerce has already yielded results, with Shopify merchants seeing up to twice as many conversions on mobile as before Apple Pay. “Our accomplishments over the last few months support the strategy we have made clear from the beginning, which is to do the things that help merchants succeed,” Mr. Lutke said in a statement. In August, the company offered 8,625,000 Class A subordinate voting shares which brought in net proceeds of $224 million. The company was also in high spirits heading into the holiday retail season. Shopify chief financial officer Russ Jones told investors that the company is expecting its first-quarter revenues to be above $100 million in the coming period. Mr. Lutke closed the call by discussing the company’s traditions on Black Friday, normally the busiest shopping day of the year in the United States. “It’s fun. We all get together in big rooms and look at a map of screens with all of this telemetry data. It looks like a company getting together for a nerdy version of the Super Bowl,” he said.

He was one of the true icons of the Ottawa Real Estate community for more than 55 years, but you never felt that way when you entered his office. He was truly humble and saw everyone’s contributions as being equal to the organization, many times more meaningful than his. He looked at CLV Group, InterRent, Albert at Bay Suite Hotel and Best Western Plus Ottawa Downtown Suites as one big extended family. We continue to feel this every day.

Continued from page 5 “Having the mindset and not having the capital gets you to the same spot – the bottom of the cliff,” Mr. Lax laments in typical tell-it-like-it-is fashion. “However, if you have that mindset and you know how to access that capital, then I think you’re ready to fly.” The money is here to fund those who dare to build market-leading companies in Canada, he maintains, “but we need the people who own this money, who run these funds … to be able to take that risk of funding Canadian companies.” The federal Liberals appear keen to kickstart that type of growth with their much-touted $1-billion innovation agenda, Mr. Lax notes. Now, he says, it’s time for the government to put its money where its mouth is. “Innovation will require capital,” he says. “The capital exists in Canada, but we need to allow our capital managers to feel comfortable taking the risk in investing in Canadian companies.” How exactly the government should help, Mr. Lax isn’t sure. He’s leaving that to the financial experts on the Hill, but he does have a suggestion for another way the feds can give tech startups a lift without turning to a room full of PhDs: By shopping locally, so to speak, when

handing out lucrative procurement contracts. “(The feds) are still one of the largest customers of innovative products – could be one of the largest customers for innovative products – if they were willing to take the risk of using our homegrown products in their own operations. That would also give us a huge boost.” BULLISH ON L-SPARK Mr. Lax is bullish on the work happening at L-Spark, which recently ditched the “incubator” label it had been using since its debut two years ago. “The label of incubator has been used, misused, abused,” he says. “It’s actually lost all meaning and therefore it is quite confusing. At this point, nobody knows what an incubator does.” While it might seem like just a subtle change in nomenclature, he says the decision to go exclusively with the term “accelerator” to describe the program’s two stages of nurturing enterprise software startups more accurately reflects what L-Spark does – that is, compress the amount of time it takes for its member companies to grow from a good idea into a viable operation that can be scaled. L-Spark’s ultimate goal, he says, remains the same: To help its companies

Are you open to talent? The business case for hiring workers with disabilities. By Kelly Mertl, Director of Community Initiatives, United Way Ottawa

Employees with disabilities offer a large untapped talent pool for employers. In the context of an aging workforce and a shortage of young skilled workers, it’s a wonder that this group continues to be underemployed.

Director Leo Lax with Jane Wang of new L-Spark member Optimity. PHOTO BY MARK HOLLERON

grow their revenues tenfold by the time they graduate. “We want to get the best of the best,” says Mr. Lax, whose facility recently announced six new companies made the grade for its latest six-month scale-up program. “Our objective is still the same – we want to attract the absolute best entrepreneurs … to come to our program so that Canada can in fact start making these companies successful at the same rate, with the same speed, that companies elsewhere are achieving growth.” He’s particularly pleased at the recent

news that a graduate of L-Spark’s first cohort in 2015, The Better Software Company, was one of just 10 companies from across the country to be accepted into the new Canadian Scale-up Program at Waterloo’s Lazaridis Institute. As part of the new six-month program, Better Software executives will get advice on scaling up from world-renowned tech entrepreneurs and rub shoulders with potential investors in Silicon Valley. “I think it’s amazing that we here in Canada now have that program in place,” Mr. Lax says. “It is a fantastic program.”

disabilities cost absolutely nothing. Another common misconception is that individuals with disabilities aren’t skilled - but we know that more than a third have post-secondary education. On December 6, a free event for Ottawa employers will help organizations learn how to strengthen their workforce by hiring people with disabilities. The event is hosted by United Way’s Employment Accessibility Resource Network. Since 2012, the network has made more than 1,500 job matches in Ottawa.

MONDAY, NOVEMBER 7, 2016

Of course, employers provide a huge benefit to workers with disabilities when they provide them with a job. But probably just as important is the measurable benefit these workers provide businesses and their teams.

OBJ.CA

Research shows employers who hire people with disabilities report happier, more productive workplaces overall. Employee retention of workers with disabilities is also 72 per cent higher than workers without disabilities. Despite all of these positives, a lot of myths exist about hiring people with disabilities. Many employers think that it will be expensive, but in one study, 57 per cent of accommodations needed by employees with

Learn how your business can access this untapped talent pool – sign up at earn-paire.ca/event

TOURISM Ottawa hotels lobby for licensing of Airbnb landlords Industry association calls for new rules to create ‘level playing field’ with online accommodation platform BY PETER KOVESSY pkovessy@obj.ca

By Craig O’Brien

craig.obrien@nelligan.ca

Steve Ball, president of the Ottawa Gatineau Hotel Association, says it’s time for Airbnb accommodations to be regulated. FILE PHOTO

or regulate the zoning of Airbnb or its units, said Roger Chapman, the city’s chief of bylaw and regulatory services, in a statement. He added that the city is not contemplating either form of regulation in the near future. A Ministry of Finance spokesperson said the province has established a Sharing Economy Advisory Committee that’s consulting with the public and affected industries. The spokesperson said the province is trying to strike a balance in developing the right regulatory and tax environment, and pointed to a pilot project aimed at educating Ontario residents who engage in home-sharing about their rights and responsibilities. Other jurisdictions are also grappling with the issue.

Arbitrations offer an enviable alternative to litigation, as parties control the process, allowing the businesses to obtain a decision and move on. The vast majority of arbitration clauses are drafted when the parties are happy. However, when a dispute arises and they look at their arbitration clause, changing the terms becomes very difficult. Back in 2005, a creditor of Bell Canada lost its right to proceed because they failed to file a Notice of Arbitration within a year of the dispute arising. The creditor was bound by the arbitration agreement, and so their right to arbitration evaporated. Pay attention to these clauses when you’re negotiating contracts. Remember that the default of court still exists – sometimes no arbitration clause is better than having a bad one. Read more at nelligan.ca

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PERMITS REQUIRED IN QUEBEC In late September, Vancouver’s mayor said he wanted to ban Airbnb rentals for those who aren’t living in the homes they are listing and require everyone else to hold a business licence. Meanwhile, the Quebec government amended its tourist accommodation law in April that requires anyone advertising a rental accommodation for tourists for no more than 31 days on a “regular basis” to obtain a $250 permit, have at least $2 million of insurance and pay a nightly hotel tax. However, fewer than 500 permits have been issued across the province as of mid-September, according to the province’s Tourism Department. That represents a fraction of the more than 10,000 units listed on websites like Airbnb, HomeAway and Kijiji. Mr. Ball suggested that individuals who occasionally rent out extra space in their homes should be able to meet any

future requirements. Instead, he’s hoping new measures crack down on individuals who own multiple properties that are used primarily for short-term rentals. “It’s an underground economy” that’s untaxed and unregulated, Mr. Ball said. While Airbnb’s website shows some 300 Ottawa properties available for rent on any given date, Mr. Ball estimates that there are about 1,500 Airbnb hosts in Ottawa-Gatineau. To put that figure in context, that’s the equivalent of slightly more than 15 per cent of the 9,600 hotel rooms in the National Capital Region. While it’s difficult to quantify the impact of Airbnb on hotels in Ottawa, Mr. Ball said the platform is affecting businesses across the city differently. Large, full-service downtown hotels that attract a large proportion of corporate travellers are not being hit as hard, he said. However, smaller properties outside central Ottawa are more likely to be competing against Airbnb hosts, Mr. Ball added. He said he fears that Airbnb’s growth, left unregulated, could discourage future investment in new hotels. Airbnb was not immediately available to respond to Mr. Ball’s comments. However, a senior company executive said in media reports earlier this year that Airbnb is open to rules that require guests to pay lodging taxes or force property owners who rent units as a fulltime business to register with authorities. “To be regulated is to be accepted,” Chip Conley, the company’s global head of strategy and hospitality, said. “The question I think people have is how is it properly regulated in a way that makes sense for local communities, and that may be different in Vancouver than it may be in Toronto.”

Over the past decade, there has been an increase in the number of commercial disputes before the Ontario courts. Commercial litigants have been looking for a more efficient system, and arbitration clauses have become the go-to mechanism of conflict resolution.

MONDAY, NOVEMBER 7, 2016

ith the number of Airbnb rentals in Ottawa proliferating, the city’s hoteliers association says it’s increasing pressure on government officials to introduce licensing requirements for the short-term rental of private residences. Airbnb, which allows homeowners to rent out a room, condo or house to guests by the night, has long been a cause for concern for Ottawa hotels who fear they can be undercut by private individuals who don’t pay commercial taxes. The Ottawa Gatineau Hotel Association says it’s escalating its push for a “level playing field” with the online platform. The organization’s president, Steve Ball, said he met with provincial Ministry of Finance officials last month and plans to make a formal written submission to the City of Ottawa in the coming weeks. “There should be a registration process (for landlords), who should be required to obtain a licence to run a short-term rental,” he told OBJ. Mr. Ball said licensing requirements – which he suspected would fall on municipalities to enforce – could include complying with city zoning bylaws, minimum health and safety standards and tax rules. He’d also like to see Airbnb only post ads from licensed landlords. The city does not currently license

To Arbitrate or Litigate, that is the Question

THE LIST 1 2 3 4 5 6 7 8 9 9 9 12 13 14 15 MONDAY, NOVEMBER 7, 2016

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16 16 19

Company/Address Phone/Fax/Web Cowan Insurance Group 700-1420 Blair Pl. Ottawa, ON K1J 9L8 613-741-3313 / 613-842-4206 cowangroup.ca Coughlin & Associates 466 Tremblay Rd. Ottawa, ON K1G 3R1 613-231-2266 / 613-231-2345 coughlin.ca Mercer 550-55 Metcalfe St. Ottawa, ON K1P 6L5 613-230-9348 / 613-230-9357 mercer.ca Morneau Shepell 601-350 Sparks St. Ottawa, ON K1R 7S8 613-238-4272 / 613-238-3714 morneaushepell.com Clearstream Benefits and Financial 1505 Laperriere Ave. Ottawa, ON K1Z 7T2 613-722-7626 / 613-722-5382 halpenny.com Palladium Insurance Financial 1823 Richardson Side Rd. Kanata, ON K0A 1L0 613-824-8335 / 613-599-3512 palladiuminsurance.ca Capcorp Financial 1050 Morrison Dr., 3rd floor Ottawa, ON K2H 8K7 613-226-1964 / 613-226-8402 capcorp.ca A.J. Gallagher Benefit Services 510-220 Laurier Ave. Ottawa, ON K1P 5Z9 613-670-8480 / 613-670-8476 ajg.com Capital Benefit Financial Group 18-1010 Polytech St. Ottawa, ON K1J 9L1 613-725-2128 / 613-725-5098 capitalbenefit.ca Hay Group 1200-81 Metcalfe St. Ottawa, ON K1P 6K7 613-288-7987 / 1-888-210-6976 kornferry.com/haygroup Xerox HR Services 1000-333 Preston St. Ottawa, ON K1S 5N4 613-798-2825 / 613-798-1742 xerox.ca/hrservices Beaudry-Deschatelets Financial Group 500-15 Gamelin St. Gatineau, QC J8Y 6N5 819-771-2196 / 819-771-2197 beaudry-deschatelets.com Jardine Lloyd Thompson 201-1525 Carling Ave. Ottawa, ON K1Z 8R9 613-656-1334 / 613-656-1335 jltcanada.com Aon Hewitt 600-333 Preston St., Tower 1 Ottawa, ON K1S 5N4 613-728-5000 / 613-728-5534 aon.ca Lee-Power & Associates 616 Cooper St. Ottawa, ON K1R 5J2 613-236-9007 / 613-236-0329 lee-power.ca Crain & Schooley Financial 7-471 Hazeldean Rd. Ottawa, ON K2L 4B8 613-722-3444 / 613-722-3800 crainschooley.on.ca Desjardins Financial Security Investments G-1679 Carling Ave. Ottawa, ON K2A 1C4 613-729-1455 / 613-722-8992 investdfsi.ca Johnson 7-471 Hazeldean Rd. Ottawa, ON K2L 4B8 613-728-7503 / 613-728-2244 johnson.ca Moore Financial 130-1101 Prince of Wales Dr. Ottawa, ON K2C 3W7 613-725-1515 / 613-725-6154 moorefinancial.ca

LARGEST EMPLOYEE BENEFITS CONSULTANTS

No. of local Year established employees in Ottawa Key local executive

(RANKED BY NUMBER OF LOCAL EMPLOYEES)

Services offered

130

1927

Bob Proulx vice-president of benefits and corporate sales

Helps employers meet group benefit, health and disability management, pension and retirement requirements by providing consulting and administrative services. Also provides insurance for businesses, organizations and individuals.

110

1958

Brian Bockstael president

Full-service third party administrator; benefits and pension consulting; benefits and pension administration; claims administration, adjudication and payment services; wellness solutions; disability and leave management; individual financial planning

1945

Susannah Crabtree principal and head of office

Offers products and solutions in areas including retirement, health and benefits, compensation, communications, performance management, wellness, investments and investment management.

1979

Jean-Paul Raymond managing partner of Ottawa office

Provides consulting and third-party administration services in the areas of employee and family assistance plans, pension plans, group insurance programs, employee health and wellness, workplace learning and disability management.

1912

Nicholas Leadbetter president

Commercial, home and auto insurance; employee benefits consulting; employer GRRSP/pension plans; keyman and buy/sell funding; executive compensation plans; estate and financial planning; business loan and mortgage insurance; life, disability

1971

Tim Snelling partner

Group benefits; flex plans; buying groups for small to medium-sized businesses; life insurance; long-term disability; critical illness; legacy business owner succession and estate requirements

1981

Jim Hamilton president

Employee benefits consulting; group retirement savings plans; financial planning for business owners and their businesses; life, disability and critical illness insurance; individual investment management; private health services plan

2013

Dave Dickinson area president

Employee benefit consulting; rate validation modelling; flex benefits; pension consulting; executive compensation solutions; health management solutions; international benefits

2003

Marc Lajoie president

Employee benefit and retirement consulting services.

1962

Philip Johnson director of eastern Canada operations

Total rewards benchmarking; benefits; rewards design; sales force incentives; rewards strategy; workforce rewards; executive pay; market research

1994

Marc-Andre Vinson principal, office manager and national retirement practice leader

Retirement consulting; pension and benefits administration; health and productivity programs; talent and human resource management; employee communication; investment consulting

2000

Francois Beaudry president

Group benefits; group insurance; group annuity plans; insurance investments; financial planning; mortgage referrals

2012

Scott A. Hunter senior vice-president of employee benefits

Group life; disability; medical insurance; group retirement plans; choice-based benefits; EAP plans; critical illness; corporate and key employee insurance

1985

Geneviève Lemieux associate vice-president and local practice leader

Consulting and actuarial services in health strategies; benefits administration and outsourcing; retirement strategies; investment management; HR outsourcing strategies; communication; compensation; talent strategies; retirement; financial planning

1970

Matt Power vice-president of benefits consulting

Trusteed welfare and pension plans; employee benefits plan consulting; defined contribution pension plans; group RRSPs; individual retirement plans; third-party administrative services

1953

John M. McCavour senior vice-president

Employee benefits and pensions; retirement strategies; RRSP; special risk insurance; risk management consulting; group home and auto insurance

2000

Stephen Boyce vice-president of Ottawa branch

RRSPs; RRIFs; TFSAs; GICs; group benefits; financial planning; retirement planning; estate planning; education planning; life insurance

1990

Shawn McCord Employee benefit consulting; voluntary group benefits senior manager of Ottawa and national groups

1938

Jeremy D. Moore president

Group benefitslife and health; business planning; employee benefit plans; group RRSP and DPSP; pension plans; executive compensation; key person insurance; funding buy-and-sell agreements; investments and retirementplanning

WND = Would not disclose. *Did not respond to 2016 survey – using data from previous years. Should your company be on this list? If so, please send details to research@obj.ca This list is current as of August 11, 2016. © 2016 by Ottawa Business Journal. All rights reserved. This material may not be reproduced by any method in whole or in part without written permission by Ottawa Business Journal. While every attempt is made to ensure the thoroughness and accuracy of the list, omissions and errors sometimes occur. Please send any corrections or additions by e-mail to research@obj.ca. OBJ lists are primarily compiled using information provided voluntarily by the organizations named. Some firms that may qualify for the list are not included because the company either failed to respond to requests for information by press time, because the company declined to take part in the survey or because of space constraints. Categories are drawn up in attempt to gather information of relevance to the Ottawa market. Research by Patti Moran. Please send questions and comments to research@obj.ca.

FOR THE RECORD People on the move

Contracts The following contains information about recent contracts, standing offers and supply arrangements awarded to local firms.

Fusebill announced the appointment of Rob Sutherland as chief revenue officer. In this new position he is responsible for aligning and optimizing Fusebill’s customer experience, with the aim of increasing revenue and ensuring longlasting growth. Mr. Sutherland has more than 20 years of software industry experience and comes to Fusebill from Halogen, where he held multiple executive positions. Sami Kabir has joined Sampford Advisors as an associate. He comes to his new role from Brookfield Renewable, where he was a senior financial analyst and a risk analyst over the past two years. Prior to that he worked as a commercial banker in the commercial lending group at Scotiabank, dealing with small and medium-sized enterprises. Alexander (Sandy) Struthers has been appointed executive vice-president of finance and chief financial officer at NAV Canada. Mr. Struthers is a financial manager with more than 25 years of experience in a wide variety of functions and roles, most recently as chief operating officer at Hydro One. Karen McNaughton has joined Stratford Managers as vice-president of marketing operations and demand generation. Ms. McNaughton is a marketing leader, entrepreneur and strategist with more than 15 years of experience working with enterprise, commercial and small and medium-sized businesses. Wayne Moloughney has been appointed president of Manderley Turf Products. Previously the company’s vice-president of finance, he played a key role in helping Manderley be named one of Canada’s best managed companies.

Shopify announced that Gail Goodman has been appointed to its board of directors. Ms. Goodman will serve on Shopify’s audit and compensation committees. She is the former CEO and chairperson of Constant Contact.

Hats off PCL Ottawa and PCL Toronto were jointly awarded three safety achievement awards from the Ontario General Contractors Association. PCL was recognized as the Category I winner for outstanding safety performance in achieving the most cumulative injuryfree derived hours worked. PCL was also presented with the 2015 OGCA Milestone Award for its 2,367,379 consecutive injury-free derived hours worked in 2015. In addition, PCL was presented with a Distinguished Achievement in Health and Safety award for achieving Zero Injury Frequency. This was in recognition of a three-year period between 2013 and 2015, in which PCL accumulated 7,346,369 hours without a lost time injury. DragonWave has been selected as a finalist in this year’s Fierce Innovation Awards: Telecom Edition, a carrier-reviewed awards program from the publisher of FierceWireless, FierceTelecom and FierceCable. DragonWave was recognized as a finalist in the category of Rural Wireless Networks for its innovative, industryleading product Harmony Enhance Multi-Channel. Janis Grantham, co-founder and CEO of Eagle Professional Resources, was named in Staffing Industry Analysts’ Global Power 100, Women in Staffing List. The list recognizes CEOs and senior managers as well as women in a variety of roles who have helped ensure success in their teams, branches, brands, events or products.

The AIM Group Inc. 130 Albert St. Description: Project management support services, international Buyer: Department of Foreign Affairs, Trade and Development $2,598,231

Atwill-Morin (Ontario) Inc. 9 Antares Dr. Description: Masonry lock wall repointing and restoration, Lock 30, Lovesick Buyer: Parks Canada $1,441,607

Raymond Chabot Grant Thornton Consulting Inc. 116 Albert St. Description: Financial support services Buyer: National Energy Board $677,250

Raymond Chabot Grant Thornton Consulting Inc. 116 Albert St. Description: Recipient/ contribution agreement audit services – innovation, science and economic development Canada Buyer: Industry Canada $1,250,000

Prolity Corp. 3403 Torbolton Ridge Rd. Description: One technology architect, senior Buyer: DND $631,896 Tannis Trading Inc. 2390 Stevenage Dr. Description: Miscellaneous groceries CFB-Kingston Buyer: DND $604,946

PricewaterhouseCoopers LLP 99 Bank St. Description: Recipient/ contribution agreement audit services – innovation, science and economic development

BUSINESS PRIORITIES IN OTTAWA - BY BUSINESS TYPE STARVED FOR TALENT When we look at the business category breakdown, accessing a pool of qualified talent is overall the top issue for Ottawa businesses. It was the same a year ago. In its Passport to Prosperity: Ontario’s Priorities for Immigration Reform report released in April, the Ontario Chamber of Commerce (OCC) reported that 39 percent of employers across the province experienced difficulty filling a job opening over the last 12 to 18 months because they couldn’t find someone with the right qualifications. This represents a nine per cent increase from survey data on the same question, from 2014. The OCC pointed out that part of the problem lies with recent immigrants facing barriers to secure employment equal to their education.

Rank the top three issues for each business category. n NEW BUSINESS ATTRACTION n SKILLED WORKFORCE n CORPORATE TAXES n EXTERNAL GLOBAL FACTORS SMALL BUSINESS 1-10 EMPLOYEES

35%

MEDIUM BUSINESS 11-75 EMPLOYEES

38% 40%

58% 33% 32%

LARGE BUSINESS 76+ EMPLOYEES

51% 42% 30% 30%

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

23 OBJ.CA

The Ottawa Champions have capped off their championship season by being named Can-Am League Organization of the Year. The award is based on a number of factors, including postseason awards balloting done by managers and front offices, in-season surveys filled out by managers and input from umpires.

Graybridge International Consulting Inc. 1309 Carling Ave. Description: Foreign language training, testing and related services Buyer: Department of Foreign Affairs, Trade and Development $4,347,153

Canada Buyer: Industry Canada $1,250,000 The Halifax Computer Consulting Group Inc. 190 O’Connor St. Description: Level 2 technical architect Buyer: DND $718,000

MONDAY, NOVEMBER 7, 2016

Walker Information has named Jennifer Batley as senior vice-president. In this role Ms. Batley will provide strategic advice and leadership to Walker clients. She brings 20 years of consulting and executive experience to her new role. In addition, Ms. Batley was a recipient of a 2007 OBJ Forty Under 40 award.

CLS Lexitech Ltd. 126 York St. Description: Translation and editing services Buyer: Canada Revenue Agency $8,630,000

Raymond Chabot Grant Thornton Consulting Inc. 116 Albert St. Description: Post-secondary institutions strategic investment Buyer: Industry Canada $1,767,875

OBJ.CA

MONDAY, NOVEMBER 7, 2016

HR UPDATE ional camaraderie Your resource for profess and fresh insights.

RCE PROFESSIONALS THE HUMAN RESOU

ATION A CHAPTER PUBLIC ASSOCIATION OTTAW

HR UPDATE

UPDATE HR LESSONS FROM THE KITCHEN: INSIDE FRASER CAFE ALIGNING HR STRATEGIES LEVERAGING DISRUPTIVE TALENT

Never saying farewell

Your resource for professional camaraderie and fresh insights.

Managing the reality of employee turnover

JOURN OTTAWA BUSINESS

VOLUME 20 • ISSUE

2 • NOVEMBER 2016

THE HUMAN RESOURCE PROFESSIONALS ASSOCIATION OTTAWA CHAPTER PUBLICATION

UPDATE HR LESSONS FROM THE KITCHEN: INSIDE FRASER CAFE ALIGNING HR STRATEGIES LEVERAGING DISRUPTIVE TALENT

Never saying farewell

Managing the reality of employee turnover

OTTAWA BUSINESS JOURNAL

VOLUME 20 • ISSUE 2 • NOVEMBER 2016

Contributors wanted! For individuals interested in contributing, articles must be submitted via email to updatemagazine@ hrpaottawa.ca by no later than April 3, 2017.

Specifications: Article Format 3 Articles must be sent in either .doc or. docx format

Headshots Word Count

3 Please ensure your article is no greater in length than 800 words

3 JPEG format & 300 DPI, CMYK 3 Measuring no smaller than 2” x 3” 3 No cropping of the head area

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2 HR UPDATE FALL 2016

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EVENT UPDATE

11 CHEF’S TABLE /23 /16

CHEF’S TABLE IS A FOODIE’S PARADISE RECEPTION AT THE FABULOUS SALT RESTAURANT. FEATURING SOME OF CHEF RYAN EDWARD’S BEST CREATIONS INCLUDING A COOKING DEMONSTRATION, WHERE THE FOCUS IS ON PROVIDING OUR CHAPTER MEMBERS THE OPPORTUNITY TO EAT WELL, NETWORK, AND MINGLE WITH LIKEMINDED PROFESSIONALS. THIS IS AN EVENT NOT TO BE MISSED. 6 P.M., SALT, 345A PRESTON ST., OTTAWA

Welcome 2016-2017 BOARD OF DIRECTORS PRESIDENT KEVIN BARWIN PRESIDENT ELECT & MENTORSHIP MELISSA BELLOCCHI-HULL SECRETARY DAN PALAYEW TREASURER CHERYL BANKS COMMUNICATIONS ANGELA ZIMMER

to the 2016 fall issue of HR Update, a joint publication of the Ottawa Business Journal and the HRPA Ottawa Chapter. This publication reaches a regional business audience of more than 100,000 readers and can also be accessed as a virtual edition at www. obj.ca and www.hrpaottawa.ca. If you have any questions about this publication, please contact us via email at updatemagazine@ hrpaottawa.ca.

For individuals interested in contributing, articles must be submitted via email to updatemagazine@hrpaottawa.ca by no later than April 3, 2017 to be considered for the next edition.

CHAPTER KICKOFF

COMMUNITY RELATIONS & MARKETING SOLEY SOUCIE PROFESSIONAL DEVELOPMENT & NETWORKING MERSIHA MESIC MEMBERSHIP ENGAGEMENT MURIEL EARLE MEMBERSHIP DEVELOPMENT ERIN TAILLEFER CONTACT US HRPA OTTAWA CHAPTER, GENERAL INQUIRIES & ACCOUNTING PHONE: 613-224-6466 E-MAIL: infohr@hrpaottawa.ca WEBSITE: www.hrpa.ca/ HRPAChapterSites/Ottawa MEMBERSHIP CHANGES 150 Bloor Street West, Suite 200, Toronto, ON, M5S 2X9 PHONE: 416-923-2324 TOLL-FREE: 1-800-387-1311 FAX: 416-923-7264 EMAIL: info@hrpa.ca WEBSITE: www.hrpa.ca Join the HRPA Ottawa Chapter Group on LinkedIn @OttawaHRPA CHAIR: ERIC VANDE VELDE EDITORIAL COMMITTEE: ELLA FORBES-CHILIBECK STEFAN SMITH MICHAEL PRICE JILLIAN CHEESEMAN PUBLICATION SUBMISSIONS: updatemagazine@hrpaottawa.ca CREATIVE DIRECTOR TANYA CONNOLLY-HOLMES GRAPHIC DESIGNERS REGAN VAN DUSEN CÉLINE HACHÉ-PAQUETTE SALES WENDY BAILY CARLO LOMBARD @OttawaHRPA • THE HUMAN RESOURCE PROFESSIONALS ASSOCIATION OTTAWA CHAPTER PUBLICATION

FALL 2016 HR UPDATE 3

hrpaottawa on the go @OttawaHRPA

HRPA, Ottawa Chapter

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PRESIDENT’S UPDATE – KEVIN BARWIN

Steps to growing as an HR professional I t’s Friday morning and you’ve just walked into your weekly management meeting feeling like you have everything under control. Then, your CEO announces a new initiative and needs you to be the lead. It’s a large project, with a short timeline, and he needs your HR plan by Monday. Sound familiar? In today’s fast-paced business environment, schedules don’t always allow enough time to ensure success and the scope of many projects are often defined before they reach our desk. Our job as HR professionals is to seize these opportunities and ensure they add true business value to our organizations. We can do this in the following ways: • Understand who your key stakeholders are and what will and will not work in your organization; • Create the link between business strategy and our internal teams of talent; • Understand how this project will impact engagement, retention, and the ability to

attract new talent; • Understand what impact this project will have on structures, systems and organizational culture; • Architect the plan from a people-driven business strategy perspective; and • Know how to translate your HR analytics into this plan to create a positive ROI.

I recently had the opportunity to hear Dan Cathy speak. Since 2013, Dan has served as the Chairman, President, and CEO for Chick-fil-A, one of North America’s largest family owned businesses. He shared with us four key messages he uses as a guide to run his business. I think these apply very well as we think about our HR projects. They are: • Think Different; • Think Cool (be relevant); • Think Forward (where are we trying to get to); and • Share Ownership.

So how do we grow these skills? A great way is to get involved in our HRPA Mentoring Program. The Mentoring Program is always looking for participants and is a wonderful way for HR professionals to give back to their profession and/or learn from other HR professionals. Mentorship program participants are eligible to earn CPD hours towards CHRP recertification. The goal of the program is to support the professional development of human resources professionals. Mentees benefit from receiving one-on-one coaching from experienced professionals. With the newly expanded HRPA Community, through Mentor City, mentees and mentors can connect with members from a number of chapters, providing the opportunity to find a mentor or mentee who has similar industry experience, background, and skills to assist in this professional development. It’s a great way to think different and think cool.

this in mind, you need to get down to work and come up with a plan that is relevant, forward thinking, involves the greater team, and is good for the business! For more information about this program, kindly contact the Mentoring Committee at ottawamentoring@hrpa.ca, or reach out to us through the HRPA Ottawa website.

Now, back to Friday morning. With all

— Kevin

From the Mentoring Corner

ou always hear about the benefits that come from having a mentor from a mentee’s perspective: gaining professional advice on problems from someone who has already been through the same struggles, expanding your professional network, and learning more about professional development and advancement. Rarely do we ever hear about the other side. The reality is that mentors have just as much to gain from the relationship as their mentees do. The feeling of giving back itself is a huge benefit, but there are other benefits of mentorship. Becoming a mentor allows you to gain recognition as a subject matter expert in your field. It helps you to develop your own personal leadership and coaching styles, and provides a fresh perspective with new ideas and approaches. These skills can be transferable to your day-to-day career and personal life, but they also add up to a bigger picture. The reality is that by becoming a mentor, you have the opportunity to change the life

4 HR UPDATE FALL 2016

of an individual. You can use the knowledge and experiences you already have to greatly influence a junior HR professional’s career path. And you can even gain some PD points while doing it!

If you want to learn more about the complimentary mentoring program that is available to you through HRPA, send us an email at ottawamentoring@hrpa.ca.

MacKenzie Smith is a member of the HRPA Ottawa Mentorship Committee

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EVENT UPDATE

01 /17

PUBLIC SKATE INVITATION TO ALL MEMBERS AND THEIR FAMILIES TO JOIN IN A NIGHT OF SKATING AND HOT CHOCOLATE AT RIDEAU HALL.

Bringing artificial intelligence into recruitment “WE’RE NOT LOOKING AT A NAME OR A BACKGROUND OR WHERE THEY GREW UP OR THE TYPE OF SCHOOL THEY WENT TO. WE’RE LOOKING AT, ‘CAN THEY DO THE JOB?’”

ecruitment is a time-consuming process. It typically requires multiple postings and scouring the web for qualified candidates or recent graduates. You sift through hundreds of resumes with hardly the time to read past a paragraph on each. The more hiring, expansion and advancement your company is trying to do, the more painstaking the process becomes. If you’re lucky, in the midst of this random and frustrating process, you find a great candidate. “When we get a really good hire into a company, the impact on productivity, engagement and retention is outstanding. You can remember every good hire you’ve ever made,” says James Baker, the CEO of recruitment and staffing agency Keynote Group. “But how is it that there are so few of those that actually take place?” Mr. Baker saw these gaps in the recruitment process and started searching for a better way. A conversation with Erin Kelly, CEO of Advanced Symbolics Inc. (ASI), sparked an idea. The company has been using artificial intelligence

for years to predict everything from successful marketing strategies for retailers to important votes such as Brexit and the Liberals’ majority win in last year’s federal election. AI can scour online data and aggregate results to advise on the optimal course of action for ASI’s clients. “So, when I met James, and he said, ‘Well, could we do it to get the best hires?,’ we said, ‘We don’t know,’” recalls Ms. Kelly. Turns out, yes. Using artificial intelligence developed by ASI, Keynote can aggregate a list of qualified candidates based on the technology’s reading of resumes, online profiles and more. AI can draw intelligent conclusions about likely fits for a position just as a human would - only in far less time. Now, instead of screening a pool of candidates over a course of weeks, it’s done overnight. Mr. Baker explains recruiters are spending less time compiling potential hires and spending more time in productive conversations. Ms. Kelly says that in a competitive job market, where candidates and graduates are

making quick decisions in high-pressure situations, getting to the conversation stage sooner can mean the difference between being hired in Ottawa or finding an employer back home. She adds that for both recruitment agencies and employers, the ability to spend more time talking to potential hires and less time screening for them means making successful hires the first time and less iterations trying to find the right fit. “That saves money on all sides,” she says. Mr. Baker says that while applicants may get less interviews with this system, they instead receive interviews for roles that are a better fit. In circumstances where an employer’s bias might discount a candidate at the outset, the AI’s objective reading can bring diverse and qualified candidates to the forefront. “We’re not looking at a name or a background or where they grew up or the type of school they went to. We’re looking at, ‘Can they do the job?’” AI has a looming presence over much of the job market, with fears that the technology will

take jobs. But Mr. Baker believes the application of AI in recruitment will only make the role of the recruiter more efficient, able to focus more on coaching and integrating new hires. He is convinced that the human aspect of hiring will never be replaced by a machine. “People work with people at the end of the day,” he says. “This is just a far better way to look at this entire problem and the whole situation of how to make successful recruitment happen. ... It allows us to be better at our job, which allows people to be better at their jobs.” By Craig Lord | craig@obj.ca

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FALL 2016 HR UPDATE 5

02/ 22/ 2017

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OBJ/HR Update Nov. 7 2016.qxp_Layout 1 2016-10-26 4:24 PM Page 1

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6 HR UPDATE FALL 2016

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ottawa

media social @OTTAWAHRPA

chapter

keeping you connected

hrpaottawa.ca Sponsored Content

Where’s your puck? By Paul Juniper, Director, Queen’s University IRC

“I skate to where the puck is going to be, not to where it has been.” -Wayne Gretzky

Wayne Gretzky’s famous quote has inspired many athletes -- but it’s also an apt metaphor for an evolving work culture, one that requires new levels of performance and accountability in a globally competitive environment. Want to win? Make sure your employees understand where the net is, their position on the team, and the best way to score. To stay on top of the game, organizations need to prepare their teams by equipping them with the information and tools that will keep them ahead of the play: EVERYONE IS PART OF THE GAME STRATEGY Canada’s national women’s hockey team has won gold in the past four Olympics – an incredible feat that’s only possible when everyone is using the same playbook.

The business world has mission and vision statements – but employees don’t often connect the dots between those statements and their work, so it’s hard for them to understand how to be accountable. They need a clear understanding of what their role is, how it affects others and how their work is measured. TECHNOLOGY IS A GAME CHANGER Just as high performance sticks and video replays have changed hockey, so has technology changed our companies. Automation is changing the workplace, but it’s also changing leadership skills. Along with the complexities of benefit plans and labour relations, human resource professionals now must also understand and manage systems, often including an automated workforce with very different needs than their human counterparts. STATS MATTER Hockey is full of statistics. They help to tell the story of a team’s success, and are valuable predictors for coaches planning game strategies. In an increasingly data-driven world, human resource professionals need accurate data and metrics to identify improvements and make meaningful decisions and recommendations. Data analysis is a key factor is knowing where the puck is going to be.

WE’RE GOING GLOBAL The National Hockey league has embraced the globalization of hockey, recruiting players beyond North American borders and participating in international tournaments. The same is true in business, where outsourcing and global partnerships have become common. To succeed, managers need to understand how to develop and manage different contracts for different countries, and

@OttawaHRPA • THE HUMAN RESOURCE PROFESSIONALS ASSOCIATION OTTAWA CHAPTER PUBLICATION

develop skills for managing a diverse workforce. They also need to be on the lookout for the best players for their team –here and abroad. The best hockey players are always on the move, looking

for the next best play, the next opportunity. In today’s economy, human resource professionals need to have the same nimble approach to planning for the future. Do you know where your puck is going to be?

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FALL 2016 HR UPDATE 7

03/ 23/ 2017

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LEVERAGING DISRUPTIVE TALENT:

Three key steps to getting results T here is no question that terms such as “digital disruption” and “innovation” have become buzzwords used daily in most boardrooms and C-suite offices. Competing in the new normal requires organizations to find talent who do things in different ways. The challenge, however, is that many of these disruptors often struggle to work in the constraints of a traditional organization. In order to achieve desired results, business leaders need to ensure that they: • Find the right type of disruptors; • Engage disruptive talent in a way that aligns to their organizational commitment and readiness; and • Invest sufficient energy and effort to maximize the engagement and success of disruptive talent.

have a positive impact on business results also need to have skills and competencies like self-confidence, resilience, the ability to build relationships, and the flexibility required to work within the constraints of an organization.

ENGAGING DISRUPTORS To successfully engage this newly sought after type of talent, organizations need a strategy to define how they will engage with talent. Many leaders think that the only option is to hire disruptors, but there are a number of different ways to get started leveraging disruptors. To determine the right engagement method (i.e., whether to involve, borrow or hire), business leaders first need to take a look at two important factors:

Commitment to Innovation and Change In order to maximize the return on the investment in disruptive talent, organizations Not all disruptors are created equally, and first need to ensure that there is senior investing in the wrong type of talent can cause leader commitment for innovation. That significant chaos and negatively impact business commitment must include dedicated funding performance and organizational culture. for innovation. Many organizations are beginning to look for people who can spot opportunities to do things Readiness for Change differently and implement their ideas. While Organizations must also consider their overall generating ideas and getting things done are readiness for this productive type of disruption. both critical, disruptive talent who can truly Many organizations may be committed to

FINDING THE RIGHT DISRUPTORS

EME

RGE

NCY

doing things differently, but simply are not ready as a result of factors such as: • Their culture (e.g. level risk tolerance/risk management capabilities, agility, customer centricity and learning orientation); • Innovation maturity (e.g. existence of formal strategy, process and governance); • Technology readiness (e.g. technology investment and enterprise architecture); and • Strength of ecosystem partners (e.g. relationships with innovation accelerators, technology vendors and academic institutions). Organizations that are lower in commitment and readiness can still benefit from bringing in a full-time disruptor – there is just more risk involved, and they must be prepared to put much more energy and effort into making the investment a success. Organizations that have high commitment and readiness are well-positioned to benefit significantly from disruptive talent, as long as they can source the right people and provide them with the right support.

MAXIMIZING THE ENGAGEMENT AND SUCCESS OF DISRUPTIVE TALENT Once an organization finds the right disruptive talent, there is a lot of work that still

CAL

needs to go into ensuring a good return in the investment. For example, organizations should ensure that disruptor has: • A peer mentor; • Manager support; • Connection to other disruptors; • Frequent feedback; • A professional coach; and • An executive sponsor.

SUMMARY Finding and engaging talent who can productively disrupt current thinking can be extremely effective and deliver significant business value to an organization. As with everything in business, it starts with having a strategy to find the right people, engage them in the right way, and ensure that they have the support required to succeed. Organizations can get started by: • Establishing an innovation strategy with proper governance (if that hasn’t been done); • Assessing their readiness and identifying an appropriate disruptive talent engagement strategy; • Using assessments during the hiring process to confirm that potential disruptors have the right competencies; • Setting up formal mentoring programs; • Engaging professional coaches to better ensure a smooth transition and long-term success. Michelle Moore is a Principal and Vice President, Business Development in the Career Solutions group at LHH Knightsbridge.

Pressing workplace matter? We can help. 613.238.3772 www.LawyersForEmployers.ca

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EVENT UPDATE

03/ 08/ 2017

BREAKFAST

Redesigning Employee Recognition through Employee Involvement LAURA MATTHEWS, VICE-PRESIDENT, HUMAN RESOURCES & COMMUNICATIONS, INNOVAPOST SALA SAN MARCO, 215 PRESTON ST., OTTAWA

“As soon as you start thinking of (establishing) a new (restaurant), you have to start thinking about the people behind it.” — ROSS FRASER. PHOTO BY MARK HOLLERON

Lessons from a collaborative kitchen

trusted,” he says. “He was the obvious choice.” This year, when an opportunity came up to bring Mr. Declan to Rio de Janeiro with him to provide catering for the Olympics, Mr. Fraser saw it as an opportunity to thank his long-time chef for being so reliable in his endeavours. He believes that demonstrating gratitude in that way is a crucial way to build relationships in a business. “You’ll get people who stick with you,” he IN A PEOPLE-FOCUSED AND LABOUR-INTENSIVE says. INDUSTRY, DEMANDS ON WORKERS NEED One of the most natural relationships in Mr. Fraser’s business is his partnership with TO BE BALANCED WITH CONSIDERATION his brother, Simon. The two have worked in FROM MANAGERS kitchens together from their early teens; their first foray into the field saw the brothers flipping ew industries rely on happy workers like demands on workers need to be balanced with burgers together at McDonald’s. restaurants. consideration from managers. To this end, Neither brother went to business school, but For Ross Fraser – who, with his brother Fraser Cafe staff have group meals twice a day they found that their skills evolved naturally to Simon, runs the Fraser Cafe, Table 40, The to come together and decompress. building and managing their kitchens. When Rowan and a new line of frozen foods in Fraser He also tells all new staff that every time-off Simon would head home at night to spend time at Home – keeping a growing staff happy is the request will be honoured. He recognizes that with his young son, Ross was there to handle meat of good business. it’s a luxury as the restaurateur has enough staff the dinner service. Where Simon excels at Growth has been steady and constant for to handle such a rotation. Mr. Fraser makes it a establishing new relationships with customers the Fraser brothers. The Fraser Cafe began as priority, though, seeing it as a way to recognize for the Fraser at Home venture, Ross is relieved a small, 27-seat restaurant with about 15 staff. that workers do have lives outside of the to be able to focus on the restaurant. Now, at its 7 Springfield Rd. location, the cafe kitchen. “Simon’s fantastic at that … and it allows features 66 seats and private dining at Table 40, “When you expect so much from your staff, me to focus on the staff and the menu, the the result of acquiring a next-door convenience you have to realize it’s a trade,” he says. “That’s execution,” Mr. Fraser says. “Being able to work store. Forty staff operate at this location with just one way we can thank our staff.” with my brother … I feel very lucky.” almost 20 running a brother restaurant in the Relying on his people became even more Whether related by blood or part of an Glebe, The Rowan. crucial when The Rowan opened in 2015. ever-growing family in the kitchens, Mr. Fraser With all of this expansion, building and “As soon as you start thinking of a new place, has come a long way in the restaurant industry maintaining a reliable staff became increasingly you have to start thinking about the people because of the people with whom he has important. behind it,” Mr. Fraser says. worked. He says that while it’s a great business “As our team kept building, we realized When the Fraser brothers had to choose to be in, it’s also a tough one. You can’t do it that each one of these staff, they make such an a chef for The Rowan who could manage the alone. impact, such a difference, to the atmosphere,” logistics and staffing decisions at the new “You have to count on people,” he says. Mr. Fraser says. restaurant, Kyle Declan – long-time sous-chef at In a people-focused and labour-intensive Fraser Cafe – immediately came to mind. By Craig Lord industry like dining, Mr. Fraser says the “He is someone who we just absolutely craig@obj.ca

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EVENT UPDATE

04/ 27/ 2017

SENIOR LEADERS BREAKFAST

Strategic HR

“INITIATIVES to Align Leaders and Culture to Corporate Strategy” — DAVID MCINTRYE, DIRECTOR, TALENT AND ORGANIZATIONAL DEVELOPMENT, CANADA POST CORP.

SALA SAN MARCO, 215 PRESTON ST., OTTAWA

When home life invades the workplace P

erhaps the biggest challenge people have that causes them emotional stress is keeping a balance between home and work life. And this balance is not just physical where time constraints can exhaust us – it is emotional as well. Why is it that sometimes workplace comments, suggestions and general remarks can leave you deflated, defeated and defensive? If this is the way you are feeling at work – even if just some of the time – it’s important to examine why these feelings are emerging and how you can deal with them. It is also important to have these conversations with your HR team. Take a step back and re-examine the scenarios where your emotional response to someone’s words has left you upset. It may be that the conversation is not causing your emotional distress, but is triggering sensitivities in you that already exist and have nothing to do with your colleagues or what they may have said or not said to you at work.

Let’s take an example. You’ve left for work this morning after arguing about the mess in the basement with your partner. Annoyed that the shelves are still not up, you finally lost it and let them know you’re not pleased at all, and out the door you went. Not a great way to start the day, but entirely realistic as many of us have had such run-ins and will do so again. At work, you’re still upset and not understanding why they just don’t take care of something that is relatively easy to do and should have been done long ago. At exactly this moment of personal irritation, a voice from the next cubicle calls out, “Have you got that report done yet? It was due at nine this morning.” And in your state of dissatisfaction and vulnerability (when there is a lack of emotional balance and calm, we are much more vulnerable and prone to react impulsively), you holler back, “Keep your pants on … I’ll get it to you, all right?” It’s very easy to be taken the wrong way. And this scenario illustrates beautifully how

two people in the workplace can completely misinterpret each other. You’re irritated by what happened at home, and are allowing those feelings to colour what your colleague has innocently reminded you of. Your colleague is probably taken aback by your impatient response. A one-time occurrence of this nature has no lasting effect. But if you are bringing

your home life upsets into the workplace and they’re spilling out into the dynamic of what’s happening between you, your colleagues and your manager, then you need to address the situation. Kita Szpak is an author, happiness expert, speaker and publicist. She can be reached via her at website at www.kitaszpak.com.

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Turn difficult front line conversations into productive exchanges 10 HR UPDATE FALL 2016

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EVENT UPDATE

02 The Breakfast /08 Event /17

MARIANNE PHILLIPS, DIRECTOR, HUMAN RESOURCES, CITY OF OTTAWA

7:30 A.M. – 9 A.M., SALA SAN MARCO, 215 PRESTON ST., OTTAWA

prompted it? e) What can we do to make your work experience better? Stay interviews demonstrate to the employees that you value them and you are listening.

COVER STORY

Three keys to managing higher turnover in the not-for-profit sector

2. THE EXIT SURVEY You’re probably reading this because too many good people have already left. For them, it’s too late for the stay interview. Having them complete an exit survey is one of the first things you should be thinking about. First of all, notice that I use the term “survey” instead of “interview.” There are several reasons that our experience shows that the seemingly impersonal survey is actually superior to an exit interview. Surveys are done in writing and anonymously, and so will be more objective. There are no biases in the interpretation of the survey findings. Even if the individual is very candid in an exit interview (usually with HR), the interviewer will unconsciously project their own biases in the interpretation of the findings, placing more emphasis on those issues where the interviewer agrees, and downplaying areas of disagreement. Finally, the exit survey helps take some of the highly charged emotion out of the departure. It may not “feel as good” if the employee doesn’t have the opportunity to finally get everything off their chest. However, we have found this is actually beneficial, since the highly emotional exit interview usually gets discounted as “axe grinding,” and the learnings are lost.

HINT: LEAVING DOESN’T HAVE TO MEAN ‘GOODBYE’

t’s not an easy life in the not-forprofit (NFP) world these days. NFPs are reacting through a whole host of measures, including restructuring (read: layoffs), technological change and change management. As a result, many not-for-profit employees are not only hit with job insecurity, but are also seeing their world turned upside down with private-sector approaches and management concepts in an attempt to contain administration costs. Throughout all of this, employees are feeling less and less connected with the reason they work there in the first place: their commitment to “the cause.” The end result: More good people are leaving. By the time an employee announces that they have decided to leave, we often think it’s too late. “Nothing we can do now except move on” is a refrain I often hear. But I’m here to tell you that nothing can be further from the truth. There is much we can still do to learn and improve our organizations and, hopefully, get that

We need to view our relationships with good employees as a life-long affiliation. In today’s world, there is no reason to have to say ‘goodbye.’ attrition under control. Here are three things every not-for-profit (and everyone else, for that matter) should be doing to manage departures: 1. STAY INTERVIEWS BEFORE THEY LEAVE Every organization has individuals you’ve identified as “keepers.” These are the ones whose departures will hurt the most. After all, if we’re restructuring, these employees are the ones we want to stay. AND, they are also the most employable. Other

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organizations would love to have their commitment, dedication and engagement. Stay interviews should be conducted by someone aside from the chain of command (HR, other department or third-party consultant). Here are some key questions you can ask in that stay interview: a) When you travel to work each day, what things do you look forward to? b) What are you learning here? c) Why do you stay here? d) When was the last time you thought about leaving the organization? What

3. AFTER THAT? WELCOME TO THE ORGANIZATION’S ALUMNI NETWORK! Although we use employee retention (or its corollary, attrition or turnover) as an indicator of success, this is increasingly unrealistic. Instead, we need to view our relationships with good employees as a life-long affiliation. In today’s world, there is no reason to have to say “goodbye” to that person, and the experience and expertise lodged forever in their brain. Setting up an organization alumni network is easy, it’s cheap, and it’s beneficial for both the organization and employee. The large majority of departing employees and alumni really like being part of an alumni network. They get to keep tabs and continue friendships. They can count on references and it strengthens their own personal brand and reputation. From your point of view in management or HR, alumni networks provide a corporate memory bank (Think, “Just message her on the LinkedIn page … she knows where the file is”). Furthermore, exit surveys show that as many as 80 per cent of departing employees would consider returning to your organization in the future. What a great recruiting tool! All things considered, turnover is a reality. Life-long affiliation is the goal, not retention. That being said, use stay interviews to pre-empt premature departures, use exit surveys to continually learn and improve, and set up that alumni network so you never have to say farewell! Norm Baillie-David, MBA, CMRP is Senior Vice-President, Engagement at TalentMap. FALL 2016 HR UPDATE 11

EVENT UPDATE

05 Annual Business Meeting /24 /17 EXECUTIVE DINNER

THE DINNER EVENT IS ANOTHER OPPORTUNITY THAT APPEALS TO OTTAWA’S HR LEADERS LOOKING TO NETWORK AND STAY INFORMED. THE EVENT WILL HOST A HIGH PROFILE SPEAKER WHO WILL PROVIDE GUESTS WITH A RELEVANT PRESENTATION IN THEIR AREA OF EXPERTISE. OTTAWA CONFERENCE AND EVENT CENTRE, 200 COVENTRY ROAD, OTTAWA

Connecting to yourself, connecting to others and connecting to what is beyond your goal are the three essential pillars to uncovering what motivates you. Identify the supportive ones and those that might stop you from reaching your goal. As well, list the new beliefs and values you need to consider adopting to go toward reaching your goal. • How will I achieve it? What kind of internal and external resources do I already have and that I need to deploy in order to reach my goal? What internal resources am I called to develop or reinforce? What external resources do I need to obtain? • What are my current behaviours that support me in reaching my desired performance goal? Which ones do I need to replace with new ones? Make a list of the new behaviours you need to adopt. • How is my environment supportive to me? What kind of changes do I need to apply to my physical environment in order to reach my goal?

Motivation, performance and the magical power of connecting

CONNECTING TO OTHERS is another important step in achieving your goals because they can be your support system and can help you in your commitment to what you intend to achieve. Connecting to others means communicating your goal and why it is important for you to reach it. To make your connection to others easier, answer the following questions: • Who are the people I need to communicate my goal to? • How can they support me? What information do they need to know to support me in achieving my goal? • What is in it for them? Why should they help me? What would they gain? Here, you need to think about your relationship with the people you chose in supporting you.

CONNECTING TO WHAT IS BEYOND the goal is the last step in being aware of what motivates you to reach what you wish to attain. Because we are a part of a system that is bigger than ourselves and our relationships to others, it is important that you become aware of your purpose in achieving your goal by answering the following: ACHIEVING GOALS BY FORMING CONNECTIONS TO YOURSELF • Why is it important for me to achieve my goal? AND THOSE AROUND YOU • What is bigger than me that achieving my re you not achieving the results or on being aligned with one’s goal or dream, CONNECTING TO YOURSELF starts by goal will it allow me to be part of? performance goals you aim for? If the support system and the purpose. being aware of what ignites you and makes • What is my personal purpose behind all the knowledge or know-how isn’t the Now the legitimate question is how to you happy and satisfied. When Robert Dilts of that? reason behind it, what could it be then? really connect to the source of motivation? developed the model of logical levels of Now, take a moment to visualize yourself Having worked with countless Well, because each human being is unique, change in Neuro Linguistic Programming with the goal achieved and start observing professionals and individuals from various the source of motivation will be different and (NLP), he covered the various important areas how this makes you feel. Take the time you professions, an important thing became unique for different individuals – even those of one’s alignment with what one wants to need to enjoy this feeling and keep a copy of very evident to me in my coaching practice with similar goals. achieve. it within you. That copy could be an image, a when accompanying humans in reaching Since I believe that each human is the Some of the questions below are feeling, a smell, or a sound that you can refer their goals – the power of connecting to the only expert of their own lives and what drives inspired by the Dilts’ model of logical levels. to whenever you need it. meaning of what we want to achieve. them to performance and achievement, my Answering these questions requires noting Remember that the level of your conscious I found that there is a direct correlation answer is that in order to create motivation, down, in one sentence or a few words, the connection to your goal affects the level of between the level of motivation to achieve one needs to become conscious and aware first things that come to mind without your motivation, performance and your goal the desired performance and the conscious of what is important to them. Connecting analyzing or judging any of them. achievement. So how connected are you? connection to the purpose or why a person to yourself, connecting to others and • What exactly do I want to achieve? And wants to achieve what they want to achieve. connecting to what is beyond your goal are once achieved, who am I going to become? Therefore, internal resources mobilization the three essential pillars to uncovering what • Are my current beliefs and values Kodi Eid is a Certified Professional Coach based that creates motivation is highly dependent motivates you! coherent with what I want to achieve? in Montreal.

12 HR UPDATE FALL 2016

THE HUMAN RESOURCE PROFESSIONALS ASSOCIATION OTTAWA CHAPTER PUBLICATION •

@OttawaHRPA

HRPA Ottawa Photo Gallery Check out additional photos from our recent events. hrpaottawa.ca

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therapy clinics. If even this is too taxing for your schedule, consider hiring a massage therapist to come to your home or workplace. Reducing aches and pains is the best way to ensure that you won’t be sidelined by a body that doesn’t work as well as you would like it to. Join the masses who depend on massage therapy to keep active. Your body will thank you. A hectic schedule is no reason to not enjoy regular massage. The stronger you are, the more you can do!

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A two-year job interview to find the best Hydro Ottawa’s partnership with Algonquin College is paying off

he importance of apprenticeship and trades training to attract the next generation can’t be understated as the baby boomers reach retirement. Industry and post-secondary institutions must partner to promote the trades as a rewarding career path for young people and ensure a seamless transfer of knowledge. Over the past five years, Hydro Ottawa and Algonquin College have taken this to heart. Through Algonquin’s two-year Powerline Technician Diploma program, these partners have demonstrated how the workplace and the classroom can and should work together. As part of the program, students develop essential safety skills and knowledge, practice rigging and pole climbing, learn to design and plan

overhead and underground power installations, apply technical standards, learn about hydraulic systems and practice installation and maintenance on poles. Classroom theory at Algonquin couples with practical, hands-on learning at Hydro Ottawa’s facilities, under the guidance of instructors who are recently retired powerline technicians. “We look at it as a two-year job interview, because we see these students and have them work on our site twice a week,” said Peter Bishop, Hydro Ottawa’s Supervisor, Algonquin and Apprenticeship Programs. “It’s incredibly valuable to have our veteran retirees transferring their knowledge to the next generation.” Algonquin’s program is one of only a handful across Ontario. Each year,

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it attracts over 300 applications for 36 spots. This year, it will grow to 48 spots in response to interest and need for talent. Hydro Ottawa also provides summer co-op work-terms for up to nine students each year. It’s always looking for the top five or six in their class to bring into its apprenticeship program upon graduation. The rest have the solid grounding they need to find work with any other power utility in the province. One of those 2016 top grads now working for Hydro Ottawa is Braydon Hughes. He decided to follow the example of two uncles who work in the utility industry. Algonquin’s diploma program appealed to him because of its proximity and the collaboration with Hydro Ottawa that emphasizes handson learning. “It’s a career right from the get go,” Hughes said. “That was the main aspect that I liked – it’s not just some job, it’s a career. Going to school for just two years and then being able to transition right into a career motivated me to work hard through school.” According to Bishop, the industry is hungry for talent right across the province. At Hydro Ottawa, almost half of its trades and technical workforce is

Apprentices learning one of the basics: pole climbing

forecast to retire in the next 10 years. “If you can prove yourself, there’s a spot for you somewhere,” he said. “And we’ve got plenty of work right here in Ottawa.” To learn more about the Powerline Technician Diploma program, visit www.algonquincollege.com/acce/ program/powerline-technician/ FALL 2016 HR UPDATE 13

ottawa

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chapter

hrpaottawa.ca Enlightened CEOs fundamentally understand that people are the only sustainable differentiator 5. EMPLOYEE AND LEADERSHIP DEVELOPMENT This fifth component includes leadership development program design, mentoring, onthe-job development and career development assignments, competency development and succession planning.

MAKING IT WORK In order to enable all the above components work together, one must leverage HRMS data and analytics, keep abreast of regulatory employment practices, develop an acute understanding of change management and organizational development as well as build strong relations with business partners and all stakeholders internal as well as external. Dave Ulrich puts it simply: To be effective as a CHRO, one must deliver “operational excellence.” One has to deliver the basics flawlessly to gain a seat in the C-suite. However, the reward is huge and your contribution to the business’s success, shaping the firm’s strategy and your impact on the culture is immense.

THE FUTURE OF THE HR PROFESSION What do I see in the future for the HR profession? The more enlightened CEOs are those who fundamentally understand that people are the only sustainable differentiator. Anyone can buy equipment and tools, copy processes and drive success in the shortterm. However, you can’t buy people’s energy, commitment and creativity. That’s where HR comes in, creating engagement, the buy-in to something bigger, the mission and meaning rather than the money that embeds long-term sustainable business success. Businesses can only gain competitive advantage through their people strategies. the process. HR is called upon to make some Talent management and leadership are unique contributions to this process such as critical to address the scarcity of resources and organization design, leadership competencies, demographics. compensation philosophies and performance Today, the pace of change in business is management. seismic, globalization is a reality and societal issues affect all our communities. There are 2. TALENT ACQUISITION (ATTRACTION, many other business drivers too numerous to RECRUITMENT AND ONBOARDING) detail here. I truly believe that HR leaders must This second component is about understanding find ways to develop integrated HR strategies business requirements such as workforce in order to create a sustainable HR and business planning, talent attraction, social media framework. recruiting, employer brand, technical and skill I believe it is truly an exciting time for all projections, assessment tools, onboarding, human resources professionals. HR practitioners regulatory training and deliverables of key who understand all the linkages in terms of competencies. attraction, development motivation and retention will succeed. HR is fast becoming recognized 3. PEOPLE MANAGEMENT as essential in facilitating organizational This third component includes employee and business success. It really is our time as communications, learning plans, business skills professionals! We need to “grab the bull by the and competencies, training and employee horns” and prove once and for all that we belong development, internal promotion, performance in the C-suite. management and improvement coaching, team optimization, management training and Philip C. Wilson, CHRL, CHRE, is currently employee engagement. Director, Corporate Services (formerly the Chief Human Resources Officer) for DST Consulting 4. COMPENSATION, REWARDS AND Engineers Inc. RECOGNITION This fourth component refers to pay-forREFERENCES: Ulrich, D. (1997). Human performance, incentive programs, market resource champions: The next agenda data analytics, rewards, benefits, diversity and for adding value and delivering results. equity programs, board governance and HR Boston: Harvard Business School Press. committee compensation strategies.

Aligning HR strategies to create business success TO BE SUCCESSFUL AS AN HR PRACTITIONER, YOU MUST BOTH MASTER CORE HR SERVICES AND DEVELOP A STRUCTURED HOLISTIC BUSINESS ALIGNMENT STRATEGY.

have personally witnessed HR’s evolution from the backroom to the boardroom, from tactics to strategy, and to assuming ownership of the business and its outcomes. The HR profession has advanced dramatically since the days when I began my career as a recruiter, and we certainly have come a long way from the days of the “Personnel Department,” managing things such as payroll or vacation requests, and reporting into finance and accounting. I am proud of this evolution, which I refer to as the professionalization of the human resources profession. I have been most fortunate to be part of some great Canadian companies such as CAE Electronics, Bell Northern Research, Northern Telecom and CIBC where I gained both global HR and business expertise. Recently, I became the Director of Corporate Services of DST Consulting Engineers Inc. I support the CEO, the senior leadership team and all our employees through the delivery of aligned HR strategies that support the business in achieving success. So how does an HR practitioner start their journey from entrant into the profession to 14 HR UPDATE FALL 2016

becoming a CHRO or CEO? Well, there are no steps to skip. First, you need to develop your HR and business acumen. Whether you decide on an individual specialist or generalist career track, you must roll up your sleeves and learn your craft and the business. To be successful as an HR practitioner, you must both master core HR services and develop a structured holistic business alignment strategy that I refer to as the HR Framework.

THE HR FRAMEWORK In its simplest form it is made up of five components: 1. STRATEGIC BUSINESS PLANNING AND HR ALIGNMENT Encompassed in this component are board strategies, corporate vision, mission and values. HR is a pivotal player in facilitating the creation of a business roadmap. Tools such as strategic plans, employee engagement surveys and corporate SWOT analysis will validate decisions and outputs. Without such strategic business planning process skills, HR cannot be a full participant in

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EVENT UPDATE

06/ 08/ 2017

STRATEGIC HR SPEAKER DINNER

Managing Growth and Culture in a Startup HEATHER TYRIE, VICE-PRESIDENT, HUMAN RESOURCES, YOUI.TV CENTURION CONFERENCE AND EVENT CENTRE, 170 COLONNADE RD., NEPEAN

Branding from the inside out

of companies and organizations will say, “Branding is awesome, we do all these great things.” But inside, internally, they are a mess. Your biggest advocates need to be your employees. What is the No. 1 thing for job satisfaction? It’s always about contribution, it’s always about knowing that they matter and knowing that they are part of something that’s bigger than themselves. Organizations that do that organically are going to be able to reap the benefits and the rewards of that externally from their consumer base.

A COMPANY’S BIGGEST ADVOCATES NEED TO BE ITS EMPLOYEES

echnology may be reshaping how companies and organizations market themselves, but it’s unlikely to erode the importance of human relationships. That was one of themes raised by Strategy Line founder Craig Gauthier in a recent interview with happiness coach Gillian Mandich. During that conversation, Mr. Gauthier also explained the connection between an organization’s brand and an engaged workforce. Here’s an edited transcript of that interview: GILLIAN MANDICH: We’re going to chat about branding and engagement. But before we get into that, tell me a little bit about your background. CRAIG GAUTHIER: I’ve been in the business of building brands and helping brands tell their story through engagement for 15 years. It’s about making sure the frontfacing brand matches the internal organic

side of it. Technology has levelled the playing field. Anybody can do anything. So what would make me want to work with you, do business with you? It’s about that Know-LikeTrust factor. It’s about that story. When we first got together, we told stories. And we told stories of who we are, what we did and we built relationships. We’re coming full circle to that. That’s what we help organizations and people do. GM: Why is brand development so important? CG: We live in a world of social proof. What do you do? You read reviews because you want to see who your friends suggest or what they would buy. We want real opinions. That’s why it’s even more important to be transparent in your brand and make sure the value is there in terms of “This is what we’re offering.” And you can’t be superficial, because you’ll be called out.

“If we look at the workforce, branding starts from the inside out.”

GM: Looking forward, five, 10 or 15 years down the road, where do you see things going? CG: If we look at the future, I’m optimistic that technology will help us live better lives. But it shouldn’t just be about efficiency and effectiveness. That’s not the goal. Because if we make our lives so efficient, what’s our purpose? We need to dig deeper and find out how do we contribute, how do we fit in this world? If it all goes tech, are we just going to sit in pods and look at devices?

GM: What is one final thought to leave us with? CG: Science is doing some great things in — CRAIG GAUTHIER terms of research and trying to figure us out as complex beings, but we can’t forget about GM: Especially in a time when you can the biology and the evolution. As long as we can fit technology in and understand that it’s use Google to find the answer to anything, organizations can really use this to their a tool, a mechanism to help us communicate benefit even when they are, say, hiring people. and be better people, then it’s fine. But CG: Absolutely. If we look at the workforce, if it takes over us, we have a bad Arnold Schwarzenegger movie. branding starts from the inside out. A lot

It’s reassuring

to know

sees

one organization

the

whole

picture.

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FALL 2016 HR UPDATE 15

EVENT UPDATE

05/ 03/ 2017

STRATEGIC HR SPEAKER DINNER

How Talent Management Can Be Used to Better Support the Delivery of Strategy ANDREW PATEMAN, VICE PRESIDENT, TALENT MANAGEMENT AND CORPORATE STRATEGY, CANADIAN BLOOD SERVICES

SALA SAN MARCO, 215 PRESTON ST., OTTAWA

innovation, but also a dynamic transfusion of ideas and leadership back to the mother ship. 2. DISRUPT YOURSELF Big companies often fall into a comfortable cadence of their creation. Steady profits, stable products and happy customers can lull leaders into limiting their ambition. However, no market is now watertight. The competitive storm clouds of digitization and shifting consumer patterns are shattering the barriers between industries and evaporating the money needed to enter them. Customers are looking for immediate service. They are looking for bridges to “vendors” who can meet their bespoke needs. Think Airbnb (hotels), Uber (taxis and deliveries) and retail (Amazon and Taobao). Netflix is the exemplar of a self-disruptive company. It could have kept its content as a niche “snail mail” DVD lending library, serving a distinct but dwindling market segment. Instead, Netflix chose a different path. It punched through its “core competency” first by offering older movies on a videostreaming platform. Then Netflix went further and broke the divide between content makers and “broadcasters” by producing its own TV series and movies. House of Cards and Orange is the New Black are among its most popular blockbusters, all without owning a single boxoffice. Today, it has 25 million subscribers. 3. CHARACTERS, NOT CLONES Who sits around at the table determines what decisions are made. As a result, “group-think” can often paralyze a big organization. Even bright people can find themselves curbing their dissent to maintain a consensus. Breaking group-think requires robust dialogue. It requires a leader willing to tackle overt and subliminal values and behaviours head-on. How does a group filter, select and reject ideas? How does it rate some ideas as acceptable or radical? These visible boundaries can determine if a team stifles or champions ideas. But large organizations need to go beyond words and reinvigorate their leadership teams. Broadening the bandwidth of ideas comes from creating greater intellectual diversity. Human nature leads us to like people who talk our language and share our outlook. We find affinity in agreement. However, creativity demands the caustic rub of differing views. Tension creates BEING OPEN TO DIFFERENCES AND ACTIVELY PROMOTING THEM CAN heat and energy fuses ideas into valuable concepts. Being open to differences and PREVENT YOUR ORGANIZATION FROM BECOMING AN ECHO CHAMBER actively promoting them can assure that your organization does not become an echo nnovation and hierarchy are like oil and supersize the type of leader they attract, Think supply-chain (Walmart), lean production chamber. water: they do not mix. Rigid, vertical promote and retain changes. Gone is the methods (Toyota) or a seamless search engine Pushing the elephant in big organizations cultures often stifle ideas and stunt pesky, risk-hunting entrepreneur who seeks (Google). is tough. Few large companies are Google or creativity. market-leading change. Now managers are However, often what you are good at today Apple – big tech giants with almost limitless Innovation, on the other hand, requires the flavour. The reason is simple: Corporate can become tomorrow’s millstone. Remember resources and boundless aspirations. Most an embrace of new ideas. It means being in managers bring stability and control. They Kodak, the iconic photography company? So businesses are made of humbler clay. sync with your customers. In contrast, big have the ability to deliver regular, short-term wedded had it become to its core capabilities Being able to change them depends on bureaucracies often have an insular mindset results. in film production, it just could not see the a leader’s willingness to embrace change. – a hierarchical “world-view” that might have As an innovator, there are three strategies value of digital photos. Even though it was a Culture plays a big role. Being open enough lost touch with its entrepreneurial roots. that help push the elephant of organizational technology invented by its R&D teams! to realize tomorrow will be different from Part of the problem is size. As big change and innovation: The simple answer to overcoming these yesterday is a start. As the velocity of change companies grow informal, communication “rigidities” is to buy new capabilities. Acquire accelerates, all innovators must challenge gives way to vertical silos that control and 1. BUY NEW CAPABILITIES a zesty startup with fresh perspectives, talents their present thinking to have the foresight for even hoard information. Being bigger also Most large organizations owe their success to and product offering. For a big company, future greatness. requires a shift away from personal decisions a set of core capabilities. These are the values, buying a feisty startup can be the seeds of to entrenched procedures. As the web of rules behaviours and technical skills that have to a culture clash: old/stable versus vibrant/ Simon Trevarthen is Founder and Chief Inspiration grows, the ability to improvise and “think enable them to create profitable products and growing. However, handled well it can be gold Officer of Elevate Your Greatness (EYG). He may different” withers. services. Sometimes these capabilities can dust. By zealously protecting the acquisition’s reached via his website at Leaders matter, as large organizations allow you to stand out from the competition. unique culture, the effect can be not only www.elevateyourgreatness.com.

Pushing the elephant: Three ways to spark innovation in big organizations I

16 HR UPDATE FALL 2016

THE HUMAN RESOURCE PROFESSIONALS ASSOCIATION OTTAWA CHAPTER PUBLICATION •

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The HRPA Ottawa Chapter Website is now offering

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DOUG JORDAN, AFS CONSULTING

Principal, AFS Consulting

Insights into the best practices of the World’s Most Admired Companies and Best Companies for Leadership

Leadership as the Art of Creating Followership

What to expect when you’re expecting ... and employed EMPLOYEES OFTEN FEEL PRESSURED TO TAKE LESS TIME OFF THAN THAT TO WHICH THEY ARE LEGALLY ENTITLED

aving a child is both exhilarating and utterly terrifying – often at the same time. For those in the workforce, being both an expectant parent and an employee brings its own excitements and anxieties. The first anxiety most expectant employees will face is advising their employers that they are pregnant or otherwise expecting. Notwithstanding the protections afforded by both employment standards and human rights legislation, many employees are apprehensive about advising their employers that they are expecting, for fear of losing their continued employment. Although rare in Ottawa, it is not wholly unheard of for employers to terminate employees who announce their pregnancy. The second issue for expectant parents is the lead-up to birth and/or placement of a child. Often there are medical or other appointments, undoubtedly scheduled during working hours, for which the employee will require time off of work. Employment standards legislation is somewhat silent on the rights of workers in such situations, thereby frequently leaving both employers and employees confused as to their respective rights and obligations. While human rights legislation and the duty to accommodate all of sex, family status, and disability can provide certain legal protections to expectant parents, such rights are less well known and understood. When employers fail

A lot can change in a year. Often there are new colleagues and/or managers to meet, manage, work with and/or report to. Then there is the reality of a change in processes, software and/or hardware, to which one to have written policies detailing what time an must quickly and adeptly adapt. Finally, there employee may take off for such appointments, is that awkwardness of stepping back into a employees tend to get anxious. role that has been occupied by someone else Next is how to request “pregnancy” and/ (who may still be employed by the employer) or “parental” leave (noting that the two are for the past year. separate forms of protected leave under Outside of work, the new parent will Ontario’s Employment Standards Act, 2000.) have challenges too. Children get sick and Again, although that law provides very clear must be supervised; most daycares will not limits on how much time an expectant mother accept sick children. Time must be taken may take for “pregnancy leave” and how much off work to do so. Chronic absence from time a new “parent” (which is defined by employment to look after one’s child can section 45 of the ESA to include both a person cause economic pressures if such time is with whom a child is placed for adoption and unpaid and can make an employee fear a person who is in a relationship of some for his or her job. Even if one’s employer permanence with a parent of a child and who understands and accommodates such intends to treat the child as his or her own) absences, not all colleagues are necessarily as may take for “parental leave,” employees often accommodating, which can cause workplace feel pressured to take less time off than that to friction. which they are legally entitled. Those pressures Being a parent is an awesome, may include pressure by one’s employer, rewarding and privileged responsibility. but may also include financial pressures. It is also exhausting, stress-inducing and Notwithstanding the fact that most parents will expensive. When parents work outside the qualify for the receipt of Employment Insurance home, balancing both work and parental benefits, the amount provided by EI is quite expectations can be tricky. Those challenges modest and many parents would find it difficult begin not long after the decision is made to subsist on such an amount. to welcome a child into one’s life – certainly Finally, there is the return to work. well before the child actually arrives – and Employees absent from the workplace for as continue for a lifetime. much as a year often feel apprehensive about returning to work. This anxiety is no doubt Sean P. Bawden is a partner with the law firm heightened by the fact that the new parent must of Kelly Santini LLP, located in Ottawa now leave their child in the care of another. (www.ottawaemploymentlaw.com).

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In his book, The Dynamics of Management: Mastering the Art of Influencing Others, Doug Jordan argues that successful executives must master the dual requirements of leadership: To have an inspiring vision of where she would like her organization (whether company, division, or team) to go; but also the interpersonal effectiveness skills to attract and sustain followership. Leadership without followership will not accomplish much. Even if the leader has an inspiring vision and charismatic style, followers will tire of him if he shows no compassion or engagement with his associates. But equally, positive human relations skills will serve no real purpose if the leader has no purpose. Highly effective interpersonal skills may be useful in social situations but without a vision and purpose and drive to achieve a worthwhile thing, there will be no results that people can attach themselves to, save perhaps another anniversary of the same cafeteria group playing euchre. Leaders check in from time to time to make sure they have a compelling goal they and others are proud of; and they look around to see if anyone is following.

AFSConsulting.ca 613.233.2231 FALL 2016 HR UPDATE 17

EVENT UPDATE

04 Performance Appraisal /05 Alternatives /17 BREAKFAST

MEGAN PATERSON, VP HR, KINAXIS

SALA SAN MARCO, 215 PRESTON ST., OTTAWA

Clearly, your strategy for managing these products must be different. Segmentation ties back to the Mexican factory I mentioned earlier. Production in the Juarez plant was allocated to products with highly volatile demand and rapidly changing designs so the company could respond immediately to changes for the North American market. A sister plant, in the Far East, produced steady volumes of stable products where seven weeks crossing the ocean would not be a problem.

PEOPLE, PROCESSES AND TOOLS

upplying products to customers is clearly important. If you can’t satisfy the needs of a prospective customer, that prospect can easily buy from someone else who can deliver what they want, when they want it. Lost sales and additional expediting costs hit your bottom line. At one level, supply chain success is simple: get the right stuff to the right place at the right time. So, what’s hard about that? The answer is “lots”. Products change. Customers order at the last minute and change their orders. On-line customers expect their product to be shipped, if not delivered, on the day they place the order. Supplies don’t arrive as expected. Supply chains typically use several layers of companies, manufacturing sites, and warehouses between raw materials and customer delivery. The number of products and the number of units of those products produced are enormous: 5 million integrated circuits a day, 35,000 vehicles per day, 3,000 major appliances per day. I recall a visit to an electronics manufacturing facility in Juarez, Mexico. Every week, amongst other products, they made about 200,000 units of a consumer electronics product. They did this despite having to manage an average of 30 production changes to that product every day! How did they do it?

COMMUNICATE Every insight you can gain regarding potential changes and disruptions will help you manage your supply chain to accommodate them: Be sure your staff know what to do and how to do it in order to keep product moving smoothly. Establish relationships with your internal or partner staff responsible for developing product and production methods. Seek advance notice of any changes you might need to handle. Establish relationships with your suppliers and their suppliers through as many layers as possible. Track projected supply availability and limitations. Collaborate with them so they also know what you are likely to need. Establish relationships with your customers and their customers through as many layers as possible. Collaborate with them so you are more prepared for demand changes and other drivers which might change your requirements.

18 HR UPDATE FALL 2016

Keep material flowing. Items sitting on a shelf are not making you any money. Stock only helps you to the extent you need it to cover variations in your supply or demand. Everything else should be progressing towards delivery to your customer. This is one of the basic concepts of a “Lean” process.

These four steps might sound simple. In reality they are anything but simple! Supply chains are difficult to manage because they must operate despite constant change. Your challenge is to establish a team of supply chain professionals who can navigate the changing environment. You then need to equip them with tools and processes so they can execute strategies to deliver products while handling all manner of changes and still keep your costs under control.

INVEST IN DATA QUALITY

APICS

FOCUS ON FLOW

As your operation grows, the volume of data you rely on grows exponentially. That data can be your key to success. It can also lead to disaster unless it is accurate and consistent. For example, if the name for a part in your supply data is ABC but A_BC in your demand or customer’s data, or worse, XYZ, then you will have more and more trouble recognizing which supply you can actually use to satisfy which demand. This might seem to be obvious and unlikely. However, it is common for large, even small, companies to have different part numbers for the same part. As you migrate towards being a digital operation, that system can only operate if you have accurate and consistent data.

“YOUR CHALLENGE IS TO ESTABLISH A TEAM OF SUPPLY CHAIN PROFESSIONALS WHO CAN NAVIGATE THE CHANGING ENVIRONMENT.” SEGMENT YOUR PRODUCTS AND PROCESSES Recognize that different products have different characteristics within their supply chains. Often, even the same product sold into different markets will require different supply chain strategies. Therefore, although management principles are the same, actual execution practice should be quite different. Categorize your products and then align your supply chain management processes to match the characteristics of those products. For example, some of your products might have steady demand over long periods of time. Others might have ready supply on short notice. On the other hand, some of your products, such as seeds, might only be produced over a short time frame yet might have demand over a similarly short time frame – but at different times of the year.

A non-profit organization Advancing Productivity, Innovation and Competitive Success. Businesses turn to APICS as the industry authority to advance the body of knowledge in the supply chain industry. APICS guides organizations in establishing best practices through training and certification programs that elevate the performance of their complex supply chains and deliver measurable results.

KINAXIS Kinaxis is a leading provider of cloudbased subscription software that enables its customers to improve and accelerate analysis and decision-making across their supply chain operations. Kinaxis transforms the way companies run their supply chains and their businesses. Its customers include some of the world’s best-known, largest, and most complex companies.

APICS AND KINAXIS Since its inception, Kinaxis has supported APICS and its programs. APICS certification is seen as a strong indicator of suitable candidates for employment. Kinaxis encourages its employees to participate in APICS programs and to obtain APICS certification. The design, development and configuration of a product to satisfy demanding customers and to solve their challenging problems is not easy! A combination of innovative software design with APICS knowledge and processes results in break-through products.

Duncan Klett is Fellow and Co-founder of Kinaxis Inc. He has been a member of APICS since 1999. www.kinaxis.com and blog.kinaxis.com/

THE HUMAN RESOURCE PROFESSIONALS ASSOCIATION OTTAWA CHAPTER PUBLICATION •

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hrpaottawa on the go @OttawaHRPA

HRPA, Ottawa Chapter

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Business travel is a vital part of today’s global economy, which makes it very important for Canadian HR managers to be closely involved with their company’s policies and protocol for corporate travel. Here are some recommendations on what human resources professionals can do to ensure their companies take the necessary steps to protect their employees on their next business trip:

BE PREPARED Identify risks employees could potentially face at their destination. Is there a health scare, an evolving security situation or adverse weather? Research the destination in advance, review the security reports and arm yourself with advanced knowledge of the ground situation from local contacts. We always recommend booking with a seasoned travel management company that has access to a traveller’s itinerary.

KNOW THE PROTOCOLS Make sure employees are completely briefed and familiar with your company’s duty of care policy and protocols. This is their biggest safety net for travel. It’s easy to dismiss this as another corporate procedure, but in my line of business I have seen this happen time and time again – an executive’s awareness of duty of care protocols can mean the difference between a seamless evacuation and an escalated security problem. When planning a business trip, always book within the corporate travel policy. I cannot stress this enough. When employees book their travel outside of their company’s travel program, it becomes challenging for the company to provide and execute its duty of care provisions – especially if they don’t have instant access to their traveller’s itinerary.

KEEP COMMUNICATION LINES OPEN

The HR department’s integral role in business travel safety CANADIAN COMPANIES IGNORING DUTY OF CARE RISK BREAKING THE LAW

anaging employees is an option. Protecting them when they travel is the law. Canadian law makes it clear employers have a duty of care for their employees’ health and safety in the workplace, which not only includes those in physical spaces such as an office or factory, but employees who are travelling as well. In Canada, there are several sources of potential liability. When it comes to an employer’s duty of care obligation for corporate travel, companies must follow local, provincial, and federal health and safety laws. Business travel is a vital part of today’s global economy, which makes it very important for Canadian HR managers to be closely involved with their company’s policies and

protocol for corporate travel. In many cases, travelling abroad is not without risk. The reality in today’s global economy is that companies have employees working in foreign countries where personal security can be at risk. Reasonable steps must be taken to prevent harm to employees and anyone else involved in the undertaking of the company’s work. This is why most companies establish duty of care protocols based on risk and security assessments and implement them using tools such as Vision Assure, a duty of care mobile app and safety package for travellers. Employees are connected to their employer and their travel team 24/7 through this multiplatform safety app. A click of a button ensures constant traveller contact with features such as real-time travel alerts, flight status updates,

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single-button connectivity and calendar synced itinerary updates. If an employee feels they are in imminent danger, they can reach Vision Travel simply by tapping a button to connect via phone or e-mail. Companies can use Vision Assure if an emergency or natural disaster occurs to track travellers and also send them a proof of life request. The app acts as an invisible guardian and assists companies with meeting their duty of care requirements. The responsibility, however, is far from being one-sided. Duty of care provisions are only as reliable as the employees keeping within the bounds of what has been deemed reasonably safe. This is why it is imperative for human resources departments to be closely involved with corporate travel.

Employees need to know when they reach their destination, they should immediately establish communication lines. It could be as simple as ensuring their cellphone has a roaming signal. A regular communication schedule should be set with your company’s travel manager, supervisor or emergency contact. Companies and employees should keep a list of emergency contacts at home and abroad, including: your home and host company’s emergency contacts, embassy and foreign affairs contacts, and local emergency numbers, among others.

STAY ON TOP OF YOUR TRAVEL ARRANGEMENTS Employees must keep travel documents in a safe place. They need to make note of their reservation and booking details for flights, car rentals and accommodations, among others. They also have to monitor for any changes and updates so they can plan accordingly in case flights get delayed, accommodations get overbooked or travel plans change. These are topline recommendations to ensure companies are doing everything they can to protect their employees when they travel. Brian Robertson is Chief Operating Officer of Vision Travel Solutions.

FALL 2016 HR UPDATE 19

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UPDATE HR LESSONS FROM THE KITCHEN: INSIDE FRASER CAFE ALIGNING HR STRATEGIES LEVERAGING DISRUPTIVE TALENT

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