VicPD’s new chief talks business
LEADERSHIP Issue Shadow Over Tofino The copper mine controversy
HOW TO LEAD IN THE AGE OF volatility
Fraud Is your business at risk? Tradition and tech meet in an island vineyard
Oh, the places you’ll go Tech champion Jim Hayhurst on leading, learning from failure and what success really means #FailureInstructs PM41295544
Jim Hayhurst, CEO of Pretio Interactive
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+ Contents aug/sep 2017
Sky to Soil
An Island vineyard looks to drones and data to manage its land
32 Shadow Over Tofino
What does Imperial Metals’ proposed open-pit copper mine mean for the tourism town? BY Andrew Findlay
38 Lessons in 21st Century Leadership
How to lead in the age of unpredictability. BY ALEX VAN TOL
44 Fraud: Is Your Business at Risk? When it comes to fraud, ignorance is not bliss — it can put entire businesses and financial futures at risk. BY shannon moneo
departments 6 FROM THE EDITOR 12 IN THE KNOW
A Q+A with VicPD Chief Constable Del Manak, Fort Street’s future and a local firm’s role in the U.S. senate hearing
18 TAKE THREE
Create a work environment focused on well-being
20 In conversation
54 LAST PAGE
Kleekhoot Maple Syrup taps true gold BY Karin Olafson
INTEL (Business Intelligence) 49 Communication
How to speak so your audience will stay awake by Rosemarie Barnes
Do only jerks finish first?
Tech leader Jim Hayhurst unpacks the meaning of success BY Athena Mckenzie
BY Clemens Rettich
24 THE BIG IDEA
Replicating your income during retirement years BY steve bokOr
Sky to soil
BY ryan stuart
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From the Editor
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As we go to press, word from the City of Victoria has it that the first shipment of steel for the new Johnson Street Bridge has left China on a west-coast-bound barge due in Victoria this August. It’s been a long time coming, but this is good news, even though the new bridge is $42-million over estimate and so late I’ve actually become philosophical about it. In fact, I’ve come to see the bridge as a metaphor for Victoria — a place trying to span from its past as a quaint tourism town to its future as a dynamic, economically diverse city. Like bridge building, the process isn’t always smooth or pretty. The problem with cities is that we can’t freeze frame them while we figure things out. Cities change and evolve even as we make plans. And right now Victoria is in the midst of massive change: structurally, esthetically, culturally and sociologically. Highrises are popping up where homes and parking lots used to be; parking spaces are giving way to bike lanes; pot shops are setting up next door to boutiques; low-to-midincome earners are trying to afford housing amidst gentrification, and more people keep moving here in search of the coastal lifestyle. According to the 2016 census, metro Victoria handily outpaced Canada’s national growth rate, growing by 6.7 per cent since the 2011 census. Some people thrive in this climate of change; others fear being displaced or sidelined. In this, Victoria is not alone — it’s an issue being faced by many cities around the world that are trying to figure out the challenges of increased urbanization, technological change, climate change, poverty, social upheaval and economic development.
We need people to attend public brainstorming and consultation sessions instead of simply ranting on social media.
2016-08-04 12:33 PM
Bridging the Gaps in Our City
City at Stake There is a great deal at stake as we plan for the future of Victoria, and we need to find ways to forgo infighting in favour of constructive, creative discussion. We need people to attend public brainstorming and consultation sessions instead of simply ranting on social media. We need to add density without destroying the heritage that attracts tourists and beautifies our city. We need to increase building height while ensuring developers create thoughtful spaces for street-level vibrancy. We need to reduce our reliance on cars without making it hard for customers to access small businesses. And we need to solve homelessness while not excusing or enabling the kinds of behaviour we saw at Tent City. These may seem like contradictions, but we are a smart city, and I believe that if we work together instead of fighting, we will find solutions to create an even better city of the future. I like the wisdom of Brent Toderian, advanced urbanism consultant and Vancouver’s former director of city planning. As he said on Planetizen.com: “I’m reminded of an old way of describing good design — ‘never finished, but always complete.’” What happens if we look at Victoria through that lens? Are we complete? I can’t resist saying that the completion of the new bridge to connect downtown to Vic West will certainly help. — Kerry Slavens firstname.lastname@example.org
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This home was quickly and efficiently sold for over 22% more than the tax assessed value. call Neal today for details. 250.857.2067
A few feet from the ocean’s shore lays this special architecturally designed “Beach Box”. Modern cottage style. 250.686.2375
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Stunning, upscale executive home sited on a majestic view property in a private and exclusive gated community in Bear Mountain. 250.727.5448
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2381 Tanner Rd., Victoria
168 Wild Duck Rd., Bamfield
136 Clarence St., Victoria
BEDS: 4 BATHS: 2 2,714 SQ.FT.
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Captivating lakefront masterpiece on the shores of Lake Cowichan. Perfect summer retreat for those living in Victoria. Tom de Cosson
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Adventure awaits. Residential property, with turn-key fishing lodge potential, located in Bamfield, B.C 250.516.4563
Fantastic, signature designed 3 bedroom / 3 bathroom plus den. Open concept living in the heart of James Bay. 250.380.3933
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304 - 21 Dallas Rd., Victoria
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219 - 400 Sitkum Rd., Victoria
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Cedar 70’s-built home on .45 acre with dock 5 mins from ferry. All the charms of island living & close to all amenities. Andrew Maxwell
Sweeping views in premiere, award winning Shoal Point with a unique terrace. Sophia Briggs 250.418.5569 Nancy Stratton 250.857.5482
Luxury garden condo at Beacon Hill Park. Corner unit with private entry, den, floor to ceiling windows & a huge patio. Steel & concrete. 250.661.7232
Super cool 2-level loft in a fantastic location close to everything. Just like new, bright and airy design. Open loft area could be bedroom. 778.350.4405 «CONDOS
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WHITE ROCK 604.385.1840
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SUN PEAKS 250.578.7773
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Sotheby’s International Realty Canada, Independently Owned and Operated. E.&O.E.: This information is from sources which we deem reliable, but must be verified by prospective Purchasers and may be subject to change or withdrawal.
www.douglasmagazine.com Volume 11 Number 5 Publishers Lise Gyorkos, Georgina Camilleri
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[In the Know ]
Jeffrey Bosdet/Douglas Magazine
Chief Constable Del Manak pauses to chat with Sidney Hamilton, summer student in outreach at Our Place Society.
Tartan Forms New Company with U.K. Communications Leader
Jeffrey Bosdet/Douglas Magazine
Victoria’s New Police Chief Talks Business
One of Victoria’s most successful public relations agencies has increased its international cachet, reach and client offerings. In June, Tartan Group announced it is forming a new company with Beattie Communications Group, a creative communications firm with 130 employees across 12 U.K. and Ireland offices, including London, with U.K. billings of £15 million.
by Pamela Roth
uring the last 28 years, Del Manak has worn a variety of hats in his policing career. He’s patrolled the streets of his home city as an officer on the front lines, spent five years working as a crash analyst in the traffic division and created a regional integrated road safety unit for southern Vancouver Island — an accomplishment that left him bursting with pride and an opportunity to climb the ranks of the VicPD. Now Manak is wearing another new, yet somewhat familiar hat as the city’s top cop, marking only the second time in the last 60 years a police chief has been promoted from within the police department. It’s a role Manak feels comfortable with, having served as the acting chief since December 2015 when chief Frank Elsner was suspended amid allegations of sexual harassment and exchanging inappropriate Twitter messages with the wife of an officer under his command. Chief constable is a role Manak is excited to take on, and he feels he can make a difference to the lives of people in his community. “What I really enjoy about policing is that it’s about service to our communities and it is literally about making a difference, making our communities safer,” says Manak. “It really is a job like no other and I honestly believe that it’s a calling. It’s such an honourable profession.” What issues are you hearing about from business owners? We recently did the community and business survey [in March], so every three years we engage our community — and the business community is an important one. What we’re hearing from the business community is: “Could you be more visible, could you be around in our community? When you’re walking the beat or come in ... and say hi to us when [we’re] running our business, it helps the tourists.” It adds that sense of calmness. The majority of the calls the VicPD attends are related to social order. Are there enough officers patrolling city streets? That’s a discussion we’re having at the board. We just had an efficiency review that was done earlier this year. Several key findings really highlighted for us the shortage in staffing. The efficiency review came out and said you need more officers, “You definitely need to have a staffing plan put
together.” The challenge is: how do we put together a staffing plan when it’s an election year coming up again and councils tend to set budgets arbitrarily? Numerous local businesses have voiced concerns about needles on their properties, people sleeping on their properties or using their properties as bathrooms. How will you deal with these increasing tensions between the business community and street-involved people? In our community business survey, the number one issue the public told us about was that they wanted the police to deal with drug activity. I think police are community leaders, but we cannot fix everything, and a lot of times people look to the police to fix everything. What we can do is bring the right people to the table, and that’s what we’re doing. One of the things I’ll be pushing for further is more emphasis on building stronger partnerships and adding capacity from BC Housing, from Island Health and from downtown service providers on how can we
better work together to try to make sure our streets and our community feel safe. We have to stabilize people, and there are major doubts, in my opinion, when it comes to services for treatment and addictions care. You don’t have to look far to see there are not many services. What effort do you make to hear and address the concerns of the business community? My goal is to actively engage with them at a higher level and to really let the business community know what services the police department can provide to help them run a successful business when it comes to their security systems, helping them with shoplifters, target-harden their business and making sure the surrounding neighbourhood is safe. In September and October, we’ll be coming out with a plan about how we’re going to work with the business community a little better, be more engaged and make sure that their businesses are successful.
He’s street savvy, he’s passionate about what he does, and he’s risen through the ranks of VicPD itself. Douglas talks with Chief Constable Del Manak.
(L to R) Avril Matthews, Sue Bosdet, Drew Cameron, Brian Cant, Michelle Cheimak, Gordon Beattie, Kate Rogers and Deirdre Campbell
The new company, Beattie Tartan, will have offices in Toronto, Calgary, Victoria and Vancouver, with anticipated Canadian billings of $2.5 million and a team of 12 PR, digital, social and creative specialists. “Canada will be the springboard for our growth globally,” says Beattie Group CEO Laurna Woods. “...The businesses and people who are thriving in Canada are the type of clients and talent we want to attract.” Tartan Group, a top west coast boutique agency with a 16-year track record, works with signature clients such as Destination Canada, Jordan Tourism Board, the David Foster Foundation and University of Victoria’s Gustavson School of Business. Beattie Tartan will be chaired by Beattie Group chairman, Kevin Roberts, the former global CEO of Saatchi & Saatchi and former president and CEO of PepsiCo Canada. “Together with Beattie, we have created a formidable digital-led PR, marketing and creative team,” says Deirdre Campbell, Tartan founder and now Beattie Tartan managing director. “We’re looking forward to expanding beyond our expertise in tourism to work with clients across various industry sectors including health, retail, education, real estate and technology.”
BC Ferries By the Numbers (2017)
Increase in vehicle traffic
The sole fare increase in BC Ferries’ 2017 fiscal year was on vehicle fares for the Swartz Bay-Tsawwassen, Duke Point-Tsawwassen and Departure BayHorseshoe Bay routes.
Amount of consolidated earnings reported for BC Ferries 2017 fiscal year
Number of new ships BC Ferries plans to add to its fleet over the next dozen years.
— Source: BC Annual Report, Fiscal Year 2017
Fort Street’s Future From bike lanes to the building boom, there are major changes planned for this busy corridor
Under the current design, 11 of 208 stalls will be removed between Wharf and Cook.
BC Transit bus stops will remain in the same locations, with the exception of the 900 block, where two bus stops will be consolidated into one.
The Fort Street design includes fully protected twoway bike lanes and signalized intersections for cyclists.
Plans include benches, trees and public art to make the Fort Street corridor a more pleasurable street for pedestrians.
The 500 and 600 blocks will be reduced from two traffic lanes down to one; and the 700, 800, 900 and 1000 blocks will be reduced from three traffic lanes down to two.
Divisive is how one Fort Street business owner, who asked to remain anonymous, describes the street’s reaction to the City of Victoria’s approval in June of a $3.27 million project for a new two-way, separated bike-lane along the north side of Fort Street. According to Kerri Milton, executive director of the Downtown Victoria Business Association (DVBA), her organization can’t take an official position because the situation is so polarized between DVBA members. “There are people who are very pro and see the economic impact in a positive way, but on the opposite side, we have the people who have concerns about the construction, loss of parking and who don’t feel that biking helps shopping,” she says. The protected bike lane, part of the City’s Official Community Plan, will run from Wharf to Cook along
Fort Street. Fort was identified as a preferred route in the City’s network concept development, along with Pandora, Cook, Wharf and Humboldt. While initial designs eliminated 18 parking spots, outcry from business owners restored seven parking spots and a taxi-loading zone.
out ways to move people around, Victoria will be so jammed with traffic it will no longer be a lovely place for residents and visitors … Regardless of whether you like them or use them, bike lanes are a common strategy used by many cities to provide a safe alternative to the car.”
GROWING PAINS Catherine Holt, CEO of the Greater Victoria Chamber of Commerce, says the Chamber has heard many views on the City’s plan for the downtown bike lanes, both supportive and voicing concerns. She describes Victoria as a city “in its adolescence. “We are used to being able to hop in our cars, drive for 10 minutes and park right in front of our destination,” she says. “As we grow this is becoming less possible. The transition is awkward, but if we don’t figure
RESIDENTIAL DENSitY The other big change facing Fort Street is the construction of at least four residential towers, including the recently announced 12-storey rental building between Quadra and Vancouver by developers Dan Robbins and Fraser McColl. “Anytime construction comes up, businesses worry about the extra vehicles, the fencing and the loss of parking,” Milton says. “But the other side of that is the huge positivity of the densification and knowing that these new buildings are going to lead to feet on the street.”
Business in Action The Magnolia Hotel & Spa in Victoria has been named the #1 City Hotel in Canada in the Travel + Leisure World’s Best Awards 2017 readers’ survey. Atrium Ventures VCC has announced a $100,000 investment into Agog Labs, creator of SkookumScript, a programming language and development platform for the creation of gameplay and AI within video games. Seaspan Ferries Corp. opened its $44-million Duke Point Terminal in Nanaimo recently in response to steady growth in the amount of freight shipping to and from Vancouver Island. The terminal accommodates 360 trailers as well as an overflow lot.
10 to Watch winners in the news Freshworks Studio, a Victoriabased mobile application development firm, has expanded to Vancouver. Founded by Samarth Mod and Rohit Boolchandani, Freshworks has more than doubled in size to 25 employees since last fall. The move gives the company access to a much larger market. It hopes to set up a Seattle office within two years.
Stocksy United has signed its first content distribution agreement with Adobe. Stocksy is a Victoria-based artist-owned platform co-op providing premium photos and videos to world-leading agencies and M A G A Z I N E’S brands. The collaboration gives Adobe customers access to Stocksy’s exclusive, high-quality photos and videos. In turn, Stocksy artists have a new platform to showcase work to Adobe’s community. TO WATCH
14 Douglas M A G A Z I N E’S
Workshops Help Businesses and Newcomers Bust Through Language Barriers
hen someone is new to Canada and learning English, chances are good they already know about Google Translate, a free downloadable languagetranslation app for Android and iOS. But not everyone, including many businesses and employers, knows how to communicate using Google Translate. Now, thanks to a collaboration between Google Translate and the Inter-Cultural Association of Greater Victoria (ICA), businesses and organizations are learning how the technology can make the Island a more inclusive place and improve communication between businesses and people from different language backgrounds. ICA is delivering 40-minute We Speak Translate workshops, free for groups of eight to 35. All that’s number of needed is WiFi and a immigrants and smartphone or tablet. refugees who move Participants receive to the Victoria door/window decals region annually to show participation — Victoria Foundation, 2013 in the We Speak Translate project and to highlight Students attending English-language willingness to work classes at ICA across language barriers. By the end of June, over 500 members had taken the training, says Kate Longpre of ICA. She lists banks and chambers of commerce among organizations that have signed up.
Real Estate 2017 2016
Slower But Still Steady
Properties sold June 2017
Active listings end of June 2017
Properties sold June 2016
Active listings end of June 2016
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Source: Victoria Real Estate Board, June 2017
AL’S BUSINESS TIP FOR SUCCESS “If you want to do well in business, play to your strengths. Too many people spend too many hours doing work that others are simply better at.” Al Hasham, President of Maximum Express
COURIER, FREIGHT & LOGISTICS
Local Firm’s Technology Plays Role in U.S. Senate Hearing How a small Victoria firm became a world leader in Private Voice Communication When former FBI director James Comey testified before the U.S. Senate intelligence committee in June, a local tech and manufacturing firm played a small but vital role in making sure his testimony was accurately recorded. That’s because the hearing’s verbatim court reporter used Talk Technologies’ Stenomask. Stenomask is a handheld microphone built into a padded, sound-proof enclosure that fits over the speaker’s mouth. It allows a person to speak without being heard by others and without background noise intrusion. The patented technology is also used by police and military to communicate sensitive information, and by those working in noisy environments such as ships’ engine rooms. Talk Technologies owner/CEO Damon Webb says the original Stenomask was invented in the 40s by his grandfather, a court reporter who wanted a more efficient way to record court proceedings. His first prototype was a cigar box. Today, under the guidance of Webb, who took over the family business from his father three years ago, Talk STENOMASK in the Technologies has courtroom Court reporters, instead launched Steno SR, of using a Stenotypist the sixth generation machine and typing of Stenomask. shorthand, simply Steno SR repeat everything has been locally going on in courtroom engineered to verbatim into the soundreplicate the noiseproof Stenomask, then proofing properties plug into speechof the world’s recognition software. leading sound booths, with complete voice privacy, an ultra-clear sound signal and total background-noise cancellation. The company, with its production team of three, located at a John Street facility, produces about 1,000 masks a year, but with the new design of Stenomask SR, which is lighter and less expensive to manufacture, Webb foresees tripling output over the next year.
Multi-use building: possibly with folded-landscape architecture, a patio and green roof
Festival plaza: main gathering space for large events, with an improved greensloped area
A 2014 land swap with the province that gave Ship Point to the City Of Victoria could turn a waterfront parking lot into an attractive public space. In late July, the City revealed the emerging conceptual design for Ship Point, which envisions the area as a high-quality waterfront park and signature events and festival site. “The existing site has challenges with the structural aspects of the land, and some work needs to be done to shore up the sea wall and ensure that the area is stable into the long term,” says Jonathan Tinney, director of sustainable planning and community development for the City of Victoria. “We can rebuild it as a parking lot or we can rebuild it as something more ambitious. Given how valuable that piece of land is on our waterfront, our goal is to do something that really remakes our waterfront.”
Pier park: improved pier structure and surfacing to accommodate green islands and softer areas Draft Concept
Working with landscape architecture and urban design firm PWL Partnership, the City engaged with stakeholders — including the Downtown Business Association, the Greater Victoria Harbour Authority and residents — to create three preliminary designs based on 2014’s Harbour Vitality Principles. Feedback received will be used to shape further refinements to the conceptual design, which will be presented to Council this September. The final master plan will be
presented to Council in January 2018. “That final design will have costing as well as a phasing plan,” Tinney says, adding that the consultant team has also been conscious of enhancing and retaining views. “Council has asked us to look at options that include a bit of development that comes up above the Wharf Street level,” says Tinney, “but there are ways to do that … while enhancing the views in others.
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We are potentially creating more space for people to enjoy the view, not just walking on the sidewalk, but being in a park-like space.” Paul Nursey, president and CEO of Tourism Victoria, believes the redesign “will be a big improvement over the current state and a rare example in the world of marine industry and local amenities intersecting effectively. “The whole design concept allows residents and visitors to get close to and celebrate a working harbour.”
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Modern Meditation Sometimes the key to being more effective, productive, successful and happy isn’t to go faster and do more but to slow down and be present. Recent scientific studies show that meditation can rewire your brain to make you more focused, productive and positive. In Unplug: A Simple Guide to Meditation for Busy Skeptics and Modern Soul Seekers, Suze Yalof Schwartz (founder and CEO of the Unplug Meditation Studio) simplifies the powerful practice of meditating to help everyone from students to CEOs relieve stress, refocus and recharge.
jeffrey bosdet/douglas magazine
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Up your Sleep Game 18 Douglas
Better Bedtime Your erratic sleep routine is making you less productive. The Sleep Genius app — created by the world’s leading authorities in neuroscience, sleep, sound and music — helps you optimize your sleeping and waking times. It also has functions to help relax your mind for better rest. sleepgenius.com
Pet Therapy A dog-friendly policy at your office can reduce stress, boost productivity and help morale. Google and Amazon are just two big companies that allow employees to bring pets into work. If there are concerns, such as allergies or space, consider giving employees a couple of hours each week to donate their time to the SPCA or another charity that reflects their passions.
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In conversation with jim hayhurst ■ BY Athena McKenzie ■ photo by jeffrey bosdet
Oh, the places you’ll go From tackling everest to founding a non-profit for Youth to heading one of Victoria’s most successful Tech firms, Jim Hayhurst takes his leadership lessons from the journey, not the destination.
hen I tell people I went to Everest, the first question is always, ‘Did you get to the top?’” says Jim Hayhurst, president and CEO of Pretio Interactive. “Well, on the way up we saw the frozen bodies of men who made it to the top but who didn’t make it back down. So, then what is the definition of success? It forces you to recalibrate your notion of what a success is.” By any definition, Hayhurst is a success. His stature as a crucial leader and role model in Victoria was cemented in 2016 when VIATEC presented him with the prestigious Colin Lennox Award for Technology Champion — considered the organization’s highest honour. From tech to youth empowerment, he’s been instrumental in fostering the region’s development through his advisory role at organizations such as Pearson College UWC and Power to Be and his mentorship and guidance to startups as a venture adviser with technology investment firm Wesley Clover and its affiliated incubator, the Alacrity Group. “It’s not always about Jim’s company,” says Scott Lake, founder of Shopify. “He’s a very communityoriented entrepreneur and every city needs that — that’s how great tech cities are grown.” When it comes to Hayhurst’s company, the 2015 Douglas 10 to Watch winner Pretio Interactive, there have been significant successes there too. The advertising technology firm, which allows brands to place rewards inside apps and games, achieved
record profitability in the last quarter of 2016. And Pretio’s recent acquisition and integration of GravityLab’s assets and video-advertising team will allow the company to bolster its internal video campaign capabilities. Pretio’s co-founder and COO Tyrone Sinclair believes Hayhurst’s leadership style has helped shape the company culture. “Jim is very open and transparent and wears his emotions on his sleeve,” Sinclair says. “He doesn’t sit at a desk and hide behind a screen. He makes himself available to the team. Many people say they have an open-door policy and that’s one approach, but Jim takes it a step further by walking with people for coffee or sitting at the picnic tables for lunch or hanging out around the office and having those in-the-moment conversations.” Hayhurst made his first foray into technology at the Toronto tech incubator Exclamation, where he worked with Exponential Entertainment, a company focused on online gaming for charities. Exclamation went through the highs and lows of the dotcom boom of the 90s, after which all four projects in the incubator were rolled into Points.com, a loyalty management program that Hayhurst describes as a very successful company still traded on the Nasdaq. At Exclamation, Hayhurst “cut his teeth” on the excitement of technologies he felt could “liberate marketplaces.” It’s an enduring passion and an element he looks for in startups he invests in and mentors through Alacrity.
“My gift, if there is one, is creating a clear vision, getting people excited about it — employees, investors and other stakeholders — then executing on it through management by walking around, through over-communication and EQ [emotional intelligence].”
Jim Hayhurst shot on location at Picnic Too. Wardrobe and styling by d.g. bremner & co.
Do you take a different leadership approach when you’re looking at a company in a traditional sector such as Triton versus a tech company such as Pretio?
I’m not a developer or an engineer or a computer-science major or data scientist. I am a businessperson, an English major and a generalist. I always look at businesses in exactly the same way, no matter what they are. The things I brought to Triton had to do with my network, and my ability to raise money and to grow the story. And also to strategize on how we would grow the business 22 Douglas
It’s even a characteristic he saw in Triton Logging (now Triton Resources), the company that brought him to Victoria 12 years ago as an investor and vice president of marketing and communications (later VP of business development and global services) and whose submersible logging system can be used on the land flooded by hydro damns — “liberating those 300 million trees stuck underwater.” His time with Triton is another area where Hayhurst doesn’t shy away from analyzing the intricacies of success. Before he left Triton permanently in 2012, he was removed as VP due to the company’s lack of growth and profitability. It meant Hayhurst no longer had input into the company’s strategic decisions. “Triton was my real-world MBA — I got all the information, but I’m not sure I passed the class,” Hayhurst says. “I left the company before the company succeeded. It’s still going now but in a very different form than it was. I’d refrain from saying it was a professional failure because I learned more from Triton than any other experience.” It’s the story Hayhurst shared with the audience during his talk last year at FuckUp Nights (F.U.N.), the global event series he brought to Victoria in which entrepreneurs talk about their big mistakes. The theory is that the talks remove the stigma of failure, encouraging people to learn from others’ mistakes. “Jim is not afraid to expose the reality of what it means to be an entrepreneur, and when he puts on something like F.U.N. and stands up and does it himself, it basically says to everyone that it’s OK to admit that we’re not all geniuses,” says Lake, who spoke at F.U.N. about his own experiences with Source Metrics. “Jim is so respected in the community and his story shows that entrepreneurship is a lifelong game.” When Douglas met with Hayhurst, we sat in Pretio’s work library, which features a collection he put together after asking staff to name their favourite titles. His own contribution is a copy of Dr. Seuss’s Oh, The Places You’ll Go! which he had signed by Al Gore when the two met through Triton. “It’s seemed fitting,” he says, “on so many levels.”
“I think Victoria needs FuckUp Nights more than almost any city because it’s very proper here and we don’t talk about stuff. You’ll often hear, ‘Don’t ask him about that’ if someone’s business fails. What are you talking about? Tell your stories so others don’t do it or so you can get through it. That’s what FuckUp Nights are for.”
have — but they’re also pragmatic and they get shit done. And On stage at FuckUp Nights Victoria Vol. 2 they’ve got to be fun (left to right): Scott Lake, and interesting and Jim Hayhurst and interested in the world Tim Cormode. beyond their nose. And that’s sometimes tough, especially for founders because they are so focused. The second factor? Is this a disruptive, interesting market? As a non-developer, can I translate this into a story that’s understandable to the mass market? That mass market could be the 15 people that would invest in it or the end customers or media or even the people we are going to hire.
internationally. Those are the same things that I do here at Pretio. One [company] has a yellow submarine that cuts trees underwater; the other has an algorithm that places ads in front of people at the right time in the right place. I‘m agnostic as to what the company does as long as it’s with good people and a vital marketplace. I’ve heard you describe your management style as “management by walking around.” Is that exactly what it sounds like?
I have a very tough time knowing what’s going on in the company and therefore adding value or solving problems if I’m not in touch. That’s my job as a CEO. Many of those online communication tools are great, but I see more value in literally laughing out loud with people instead of LOLing. And I like eye contact. What is the reaction from your staff?
I don’t want to disrupt people, and I’m aware of that. I was taught early on by Rob O’Dwyer, Pretio’s CTO and one of our founders. He sent me a note that said: “Jim, just so you know, headphones with two ears on is ‘Do not disturb me.’ One ear off is ‘It better be important.’ Two off is ‘Come and talk to me, but I am probably leaving for the day anyways.” So I take those cues. What draws you to the organizations you work with?
It’s cliché, but it’s the people: usually a person, often the founder with that characteristic that they’ll run through a wall for the idea that they
You attempted to climb Everest with your dad as a young man. What lessons did you take from that?
One big lesson my dad put in his book The Right Mountain was how helpful it is to show your human side as a parent or CEO. I was 20 when I climbed Everest with my father. I’m the kid, he’s the dad, and that’s an inequitable power structure, but when we got to Everest, it was the great leveller: he got sick, I was fine; he couldn’t continue, I kept going; he needed help, I helped him. It’s what allowed me to work with my dad and even conceive of starting a business with him in Trails Youth Initiatives [a non-profit focused on youth in atrisk areas in Toronto]. That was only possible because I saw him as a person with all his faults and his failures. What that does for any child or employee is give them permission to lead because the space isn’t completely occupied. Does this define your leadership style?
I don’t have a definition of leadership, but if I did, one of the things would be: leadership is actually getting out of the way and giving the reins over to your team. Creating the conditions for them to succeed, but truly trusting that if you’ve set the right expectations and treat them well and let them have some fun, they’ll always do the right thing. If they don’t, then failure instructs. Hashtag #failureinstructs, and then we get a FuckUp Night. What are your metrics for success in business?
So, that idea of what is success for a company is one that I don’t think businesses unpack as much as they should, and I do really push it with our company. We’re going through something right now where we have to define what success means for us in terms of what we are going to be focusing on and whether that’s the things that are immediately profitable for us
or the things that are going to drive future value. There is a trade-off. So what’s next for Pretio?
We’ve grown in the past year. We’ve almost doubled our head count [to 23 people]. This year we will almost quadruple our revenue and we will be profitable. Those are tangible measures of success. We’re trying to tackle the big problem in performance marketing, which is how do you automate it? Right now, a lot of it is still manual. We have a technology we’re working on called Apollo, because it’s our “moon shot” to a degree. It might require more investment to really see it work. There could be an investment round in the next year. The other big opportunity for us is China. There is a specific need for what we do in China, and because of our relationship with Wesley Clover and their global networks, we have established some good relationships over there.
here — because they’re here for the long term. Conversely, if people do come here thinking that they can just come in and say “Hey, I am a ex-senior vice-president of IBM and who needs me?” Well, nobody needs you. You’re going to have to moderate those expectations and commit to being here not just for a job but to build the community. You foster this community and are so well known — why did you want to share your story at FuckUp Nights?
I was asking people to do something I hadn’t done and I realized I should do it. I did the Triton story. Triton was not a success for me.
I have no problem with people knowing that. I talked about my ego and my depression and other things that I didn’t expect to talk about. Even now it was really helpful for me because I hadn’t worked through it. People said how helpful it was to see me, the “success guy,” up there, talking about things not going right. I think I was comfortable with that because I was the guy who went to Everest and who didn’t get to the top but was still able to tell a good story about it. I’m used to talking about failure in a different context. The destination is important, but I’m curious about the journey. ■
c u l i n a r y
What advice do you have for companies looking for investment?
It is really tough to compete with companies seeking investment in Toronto, Boston, New York, San Francisco and even Vancouver. They are there constantly, and interacting constantly. It really is a numbers game: how many meetings you have in a day, a week, a month, a year. Just the sheer volume and access to those conversations means that if you’re really serious about raising a big round, you’re probably going have to consider going to those places. And through Alacrity and Wesley Clover we’ve set up that mechanism through the San Francisco office. The likelihood of funding without you having greater exposure and spending some time in these other parts of the world needs to be assessed, because until I get everybody coming here, which I am really trying to do, and until we build up a fund here, there’s going to have to be some outwardlooking conversations. Do you see Victoria’s current tech boom as a bubble that can burst?
I don’t. You don’t have this influx of people who can just come and couch surf and land an internship and get a job and create the gases that a bubble requires — like that frothiness that anybody can go to San Francisco with a ComSci degree and land a job at the latest startup that just got $30 million that is about to blow its head off.
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the big idea BY ryan stuart Photos by Tim Ennis
Sky to Soil An innovative island vineyard looks to drones and data to understand its land
hen Layne Craig and his wife Brenda Hetman-Craig cashed in their retirement savings to buy a vineyard in 2013 there was no question of their farming philosophy. Craig was a fourthgeneration farmer; his family had always grown crops in harmony with nature, not fighting it. Immediately after renaming the Comox operation 40 Knots Vineyard & Estate Winery, Craig immediately ditched the Roundup and chemical herbicides the previous owner
had relied upon. By planting clover and flax among the vines, he encouraged bees, which help fertilize the grapes and fight off the wasps. Free ranging geese and chickens gobble up bigger bugs. Two sheep keep the grass short and fertilized. Organic fertilizers and water are the only things he adds. “I know every vine on the farm,” he says. He calls it biodynamic farming. But Craig’s no Luddite. He grew up dreaming of becoming a fighter-jet pilot, but poor eyesight meant that owning his own plane
and flying for fun would have to do. (The name 40 Knots is a flying reference.) So when ASAP Geomatix asked if it could test its new agriculture software on his winery, he jumped at the chance. “It was an opportunity to apply new technology and ideas with old-world farming methods and get the best of two worlds,” Craig says. The synergy ended up saving 40 Knots $7,000 in fertilizer costs, cut water use by 88 per cent and, the end goal, grow more quality grapes.
ASAP Geomatix’s drone photographs the 24 acres of vines at 40 Knots Vineyard & Estate Winery, taking 2,000 images of the property. Special cameras and software help capture and identify the chlorophyll and water content of plants, which can help the vineyard owners determine fertilizer and water needs down to specific vines.
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“They helped me understand what the hell was going on with my land,” Craig says. “I could diagnose the exact area where the vines needed more water or fertilizer.”
Terra Meets Tech “We’re data specialists,” says Mark Sylvester, co-owner of ASAP. “Basically, we take highresolution images and then figure out ways of pulling data out of them.” Geomatix spun out of ASAP Avionics
Services, an aircraft electronics service company based out of the Campbell River airport. After buying the winery, Craig brought his plane to ASAP to get some work done. Around the same time, Sylvester was getting bored of the avionics. He started experimenting with high-resolution aerial photography, attaching a camera pod to helicopters and drones. By taking two photos of the same area but from slightly different
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angles a computer can stitch them together into a three-dimensional image. Plug in GPS data, and software can pick out individual trees, tell their height, interpret the shape of the land. Add different types of cameras — infrared or ultraviolet — and the software can tease out more information. At about 10 times a finer scale than Google Earth, it’s possible to pick out individual blossoms and pebbles. The forestry industry was an early adopter of the technology. What would take a field team weeks to collect on the ground, ASAP could gather in a morning flyover followed by a couple of days in the office running the software. Plus, they could tell the company information about spacing and health of the trees that the people on the ground could never gather. “Every time we do a job, we see another three potential uses of the technology we’re developing,” says Sylvester. The only trick was coding the software to filter out whatever variable the client wanted. That’s the company’s secret sauce, and his name is John Carley, an ex-pat from the U.K. He’s a pilot and coding nut. “It was a dream to be able to combine my two passions,” he says. ASAP is not the only company using drones, photography and software to produce data like this, but most of their competition in Canada
(L to R) Mark Sylvester, president, ASAP Avionics; Layne Craig and Brenda HetmanCraig, co-owners, 40 Knots Vineyard; Chris Harrott, sales manager, ASAP; and John Carley, CTO, ASAP.
offers cookie cutter-data sets, while ASAP focuses on custom products, providing the exact data their customer needs. “The customer tells us what they want to know and then John figures out how to get it,” says Sylvester. Carley’s coding ability generates a new product almost every week. Competition would be tougher outside the country, but the cameras and sensors are so powerful they’re considered military secrets, restricting cross-border operations.
As a part owner and technical-development manager, Carley’s figured out a lot of ways to manipulate photos, including measuring the volume of potholes in a road so repair crews could better estimate their needs, counting returning salmon in a river more accurately than a human, ID-ing old-growth trees in a forest, and telling a farmer a lot about his crop. To test the agricultural potential of their technology, they reached out to the only vineyard owner they knew.
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Getting the Big Picture Because 40 Knots is surrounded by homes and acreages and is on the flight path of planes landing at the Comox airport, ASAP used a drone instead of a helicopter to photograph Craig’s 24 acres of vines in 2016. (Deciding between the two methods comes down to size and location of the survey.) First, the drone flew a pass with a regular camera, then with an special camera designed to capture chlorophyll and water content of C plants. In total, it took 2,000 images to captureM the whole farm. Y When Carley combined the images and CM ran them through the software he’d written, he thought he’d made a mistake. The MY chlorophyll image was all blobby. But for the CY guy who knew every vine, it answered a lot of CMY questions. “There were eight ‘holy shits,’ six ‘huns ‘and K 12 ‘thought sos,’” Craig remembers. “ASAP gave me the impossible: one whole picture of one entire farm at one moment in time. No matter how fast I walk, I can’t do that.” “The data allows you to visually see what’s going on,” says Carley. “It allows the customer to be proactive, not reactive.” The various pictures showed Craig where to fertilize, right down to the individual vine. He could see how the water drained, in a way invisible to the eye, leaving some areas parched and other spots soggy. He could even see an area of disturbed soil he’d never noticed before. Using the data, he focused his watering and fertilization efforts. Compared to 2015, the data helped him cut water use from 9,000 cubic metres to 800 and reduce fertilizer applications by 35 per cent. The $3,000 flights saved $11,000 in costs, Craig believes. Combined with improvements he was already making around the farm, the grape harvest was 41 per cent larger. Craig plans to run drone flights in 2017 and again in 2018 to give him a good baseline and to fact-check the changes he’s made.
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Dimensions of Success ASAP took what they learned from working with Craig to other wineries, both on Vancouver Island and in the Okanagan. “Every project teaches us something new that we can take back to other industries,” says Carley. “The potential is huge.” Craig feels the same way. A year after the drone flight, he is still sifting through all the data ASAP provided and translating it to what he sees as he walks through the vines. “It’s like being able to see in four dimensions,” he says. “There’s nothing like sight from above to really see what’s going on. It’s way too cool.” ■ Douglas 27
Grant Thornton Your Partner For Success
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our business is unique, and its needs change as it evolves. The team at Grant Thornton — one of the world’s leading independent assurance, tax and advisory firms — can work closely with you to develop a customized plan for your business’s future success. “We don’t look at our client’s solutions to come pre-packaged,” says Dan Little, managing partner of Grant Thornton’s Vancouver Island operations. “We understand how crucial it is to listen to our clients. It’s asking insightful questions and taking a collaborative approach to get those sharp insights and meaningful answers.” A trusted advisor When you work with the professionals at Grant Thornton, you’re getting more than accounting services; you are getting an advisor to help you tackle the challenges of running your business. “In us, our clients have a partner they can rely on,” says Tara Benham. “It goes deeper than just adjusting journal entries or preparing their taxes. We’re here to help guide them along and make sure they get the information and services they need to be successful.”
Guidance as you grow What about the inevitable curves in that road to success? Grant Thornton’s advisory services span a range of specialized needs. These include enterprise risk management, succession and estate planning, corporate restructuring, valuations and business transactions, along with a wide variety of additional services and expertise. “We’re building long-term relationships,” says Mike Stubbing. “Special challenges face our clients throughout their business’s life cycle. We’re able to provide the right service at the right time.” And with Grant Thornton’s team-based approach, there is partner involvement in all client engagements — so you know you’re being looked after from the top. 28 Douglas
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The right people in the right place At Grant Thornton, local and global expertise is part of the package. With the integration of the Island firms Hayes Stewart Little & Co. and LL Brougham, Grant Thornton LLP, Vancouver Island now offers a larger team of services and resources. These mergers also extend the firm’s deep roots in the Island’s communities. “We believe in being genuinely engaged and committed to our clients, colleagues and our communities,” Little says. “We focus on all three of those pillars and that’s what’s important. That’s what sets us apart.”
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ore and more we are faced with media images focused on how to live happier and healthier lives, and extolling the benefits of healthy body, healthy mind. We’ve often heard our doctors suggest cutting down on the carbohydrates and introducing some exercise into our week. But how does one actually take control over their health after years spent juggling children, jobs, and the traffic of life? Many individuals are at risk for health problems related to high blood pressure and cholesterol, stroke and heart disease. Some take medications, often multiple prescriptions, to manage these conditions. This constellation of factors has caused many pharmacists to take action and offer medically sound weight loss solutions to their communities. Safe, Rapid Weight Loss Ideal Protein, a scientifically validated method for safe, rapid weight loss is helping to address the obesity epidemic now rampant throughout the Western world. Supported by pharmacists across the country, the Ideal Protein Weight Loss Protocol (IPWLP) is helping patients move towards an ideal weight, by tackling the root cause of weight gain – the overproduction of insulin. This is achieved by limiting consumption of sugars in the form of fats and carbohydrates, while maintaining protein intake to preserve muscle mass. “As trusted and easily accessible healthcare professionals, pharmacists have an opportunity to make a measurable impact on the health of the communities they serve,” said Dr. Thomas Barus, Pharm.D., RPh., Director of Pharmacy Services at Ideal Protein. “The Ideal Protein Weight Loss Protocol is all about helping people regain their health and vitality.” Maintaining Your Success Maintaining a stable weight after dieting often requires changes to your lifestyle habits. This is why Ideal Protein strongly emphasizes education and understanding, learning how to eat “smarter” or risk regaining your lost weight. When you begin the program you will be
“What attracted me to the Ideal Protein is the easy-to-follow structure and focus on creating healthy eating patterns. It’s time to be healthy — I’m ready and I’m doing it!” — Cynthia Hanischuk
Check back with Douglas in the Spring for an update on Cynthia’s progress!
assigned a personal weight loss coach who will assist you through each of the 4 phases of the Ideal Protein Weight Loss Method. In phases 1 and 2, your coach will help you set your weight loss goals and support you on that journey. In phases 3 and 4, your coach will shift focus to weight stabilization and post-diet living, teaching you weight maintenance habits that may assist you in keeping the excess pounds off after dieting. You will learn: how your body fat is burned the relationship between insulin and weight gain which foods are best suited for healthy weight management when, why and in what combination to eat carbohydrates, fats, and proteins Through the weekly meetings clients learn how to achieve their desired weight and
maintain the weight loss. This starts with honest conversations between patients and their healthcare providers about the serious health consequences of obesity.
Pharmasave Broadmead Broadmead Village Shopping Center 310-777 Royal Oak Drive 250-727-3505 www.pharmasavebroadmead.com Douglas 29
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Our menus and award-winning wine list are designed around your business needs and delivered with professional service. Zambri’s private spaces are also Victoria’s number 1 choice for parties and family gatherings of all kinds! Be it a family reunion, wedding reception, holiday party, celebration dinner or lunch, bridal shower or just a group of friends sharing a meal, we can make your next private event a memorable one. • Private space for 10-60 guests • Menus available for every budget • AV equipment for slide shows and speeches Email Yann now to reserve your next turnkey, worry free and memorable private event: email@example.com.
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he biggest issue business owners face with digital marketing is that they don’t know where to turn for advice to stay ahead of the competition. After all, changes occur almost every week in the world of digital marketing, search engine optimization (SEO), Google Adwords (SEM), Social Media and Conversion Rate Optimization (CRO). That’s where Marwick Internet Marketing comes in. As a company at the forefront of search-marketing trends, Marwick has earned a strong and positive reputation as a trusted partner for growing companies in the world of digital marketing. “We love (OK, we’re obsessed!) with digital marketing. We love educating our clients and showing them tangible results that impact their bottom line,” says Christian Thomson of Marwick Marketing, which is a Premier Google Partner Agency, one of only a few agencies in Canada to hold this accreditation. Bringing Expertise and ROI to Victoria Marwick has an extensive client list of national brands such as Great Canadian Oil Change, Polygon Homes and Canadian Tire. However, mid-sized companies — including local law, accounting and real estate firms, along with auto shops, retailers, construction companies and health-care firms — make up Marwick’s largest demographic of clients. As an example of the kind of results these clients achieve with Marwick, Thomson notes a local law firm’s SEM campaign. The firm had previously been running a campaign through Yellow Pages and was getting $9.74 cost per click, 12,084 impressions and 480 clicks. In only three months, with Marwick’s expertise, the firm’s campaign stats looked much healthier, showing a reduced cost per click of $5.87, 53,087 impressions and more than 667 clicks. All for the same monthly budget. The law firm didn’t spend more money to get more clients — it simply had Marwick optimize what they were already spending elsewhere. Thomson openly admits Marwick is not for everyone. “We talk to many business owners every week — and we’re honest. If we don’t think we
can improve your digital marketing in a tangible way, we’ll tell you right on the first phone call,” he says. “We’re not the kind of agency that says yes to everything and anyone. But with the business owners we do work with, we typically end up working with them for many years, growing their business.” Change in the Making Marwick is also the company behind the successful Change In The Making Conference in Squamish. CIMC is Western Canada’s latest PR and marketing conference. Last year, more than 750 business owners and marketing professionals attended the two-day conference to learn about digital marketing
from keynote speakers from Facebook, Google, Instagram, Pixar, Microsoft, Twitter and more. “We love running the CIMC conference,” says Thomson. “Our team loves learning from the best and providing a platform for others to learn about digital marketing.” Marwick Internet Marketing provides free audits of your website to help you discover how to improve your ranking on Google.
604-390-0065 firstname.lastname@example.org MarwickMarketing.com Douglas 31
Imperial Metals, the Vancouver-based company at the helm of one of the worst toxic spills in Canadian history at its Mount Polley copper and gold mine in 2014, is exploring the potential for an open-pit mine on Catface Mountain in Clayoquot Sound. the community of Tofino has been bracing for a fight. BY Andrew Findlay
Dan Lewis, a longtime sea kayak tour company owner and conservationist in Tofino, talks with Mayor Josie Osborne on the town’s public pier. In the background is Catface Mountain.
Jeffrey Bosdet/Douglas magazine
Imperial Metals, which also has another mining claim in Clayoquot Sound, known as Fandora, caused a local stir this spring in a CBC report when company VP of corporate affairs Steve Robertson called its two properties “high-priority projects.” It was like poking a stick in a hornet’s nest and it got attention, including from Tofino Mayor Josie Osborne. “I’m not opposed to mining in general, just not here,” Osborne tells me one afternoon over a pint of Tofino Brewing Company ale at the Wolf in the Fog restaurant in downtown Tofino. Osborne moved to Tofino in 1998 to work as a fisheries biologist, but, like many of her fellow residents, eventually transitioned to tourism; she and her husband own a vacation rental property and Tofino Botanical Gardens. In 2013, she became mayor by acclamation. Both town council and the local chamber of commerce have made public their opposition to mining in Clayoquot Sound. It’s not surprising that Tofino is largely opposed to open-pit mining smack among the dark blue waters and steep emerald-coloured forests that form the postcard-perfect backdrop to this coastal community where surfers, foodies and travellers converge. Serious Questions First Nations are also not planning to roll out the red carpet for Imperial. Of the three nations — the Hesquiaht, Ahousaht and Tla-o-qui-aht — that claim traditional territory in Clayoquot Sound, the last two have Imperial mineral claims to contend with: Catface Mountain and Fandora respectively. The Ahousaht, a large nation of 2,400 mostly living in Maaqutusiis on Flores Island, a 10-minute water-taxi-ride from Tofino, have struggled with poverty, housing issues and a suicide crisis that made national headlines in the late 2000s, and have at different times considered the economic benefits of a mine in their territories. According to current Chief Councillor Greg Louie, his people have in the past been a divided community on Catface Mountain, “split 50-50.” But not anymore. Douglas 33
That’s why Mike White, who owns Browning Pass Charters and was born and raised in Tofino, thinks it’s a far-fetched proposal. “I don’t think it’s economically feasible, and I can’t see it ever happening. I don’t think the community would ever accept it,” White says.
Open-pit mining is a technique used to extract copper ore near the earth’s surface. The mine shown above is the Bingham Canyon Mine in Utah, owned by the BritishAustralian Rio Tinto Group.
“Since I was elected three years ago, we have had no discussions with Imperial, so it’s not really on the table,” Louie says, adding that the Ahousaht political leadership defers to hereditary chiefs to take the lead on mining and all major land-use decisions. “With what happened at Mount Polley we’d have some serious questions.” In January, the Maaqutusiis Hahoulthee Stewardship Society, the Ahousahts’ land-use and economic-development arm led by the hereditary chiefs, released a Land Use Vision that leaves little room for mining or mineral exploration. The document emerged as part of a project being supported heavily by The Nature Conservancy (TNC.) So far, TNC has contributed $1.5-million toward a planning framework that resembles the Great Bear Rainforest agreement on the central coast. That agreement prohibits industrial activity in favour of conservation and building capacity for sustainable economic development such as ecotourism and light-footprint logging. “The chiefs have made a declaration that there will be no mining in the territories, so it’s pretty clear,” says Ahousaht hereditary chief Keith Atleo. Their neighbours, the Tla-o-qui-aht, are also emphatic in their opposition to mining at Imperial’s Fandora property. “It’s a non-permissible activity on our territories,” says Saya Masso, naturalresources manager for the band. “We’ve gone through extensive land-use planning, 34 Douglas
gathering information from our elders and knowledge keepers, and in 2013 we reiterated our opposition to mining at Fandora. We’ve basically told Imperial not to waste their shareholders’ money.” Staking a Claim Mining claims can change hands faster than weather changes on the west coast, and some big names in the mining sector have been poking around Clayoquot Sound for decades. In the early 60s, Toronto-based mining giant Falconbridge Ltd. first staked a claim on Catface Mountain. Falconbridge sold the property to Doublestar Resources in 2001, but with a backin clause for a 50.1 per cent stake. (Falconbridge merged with Noranda in 2005, before a major takeover by Swiss-based Xstrata.) A 2003 report prepared by SRK Consulting for Doublestar detailed the considerable footprint of a potential mine and how the top 350 metres of Catface Mountain would have to be shaved off to access a low-grade copper ore deposit estimated to be 158 million tonnes. Furthermore, according to the consultant, the mining process would produce 103 to 250 million cubic metres of tailings and between 110 and 170 million cubic metres of waste rock. There would also be the docking and processing facilities needed to handle the ore, as well as impoundment ponds to manage tailings and waste. Doublestar tried unsuccessfully for a half dozen years to strike an agreement with the Ahousaht. In 2007, Selkirk Metals Corp. bought Doublestar before merging with Imperial Metals two years later. Since then, other than on-again, off-again exploratory drilling, not an ounce of ore has left Clayoquot Sound since prospectors first staked claims more than 50 years ago.
Tourism Versus Resource Sectors The mine would be directly across from the waterfront tourism businesses of Tofino, where Arvid Hasse, a guide for Tofino Sea Kayaking, sips a coffee and preps for paddling trips in the sound. When asked about the mine, he shakes his head and laughs. “Tofino would have a front-row seat to view the carnage. I don’t think anyone believes it will ever happen,” Hasse says. However, mining companies are accustomed to playing the role of unwanted neighbour and have staying power when it comes to winning support, vanquishing opponents and earning social licence for their projects. And mines often pose extremely complex, long-term environmental challenges in terms of containing acid rock drainage and metal leaching from tailings and waste rock. That’s why Dan Lewis, a longtime seakayak tour company owner in Tofino and conservationist, believes now is the time to register stiff opposition to the mine before Imperial has the opportunity to apply to the province for an environmental certificate and mining permit, which would trigger a long, costly and divisive review process. “We’ve vowed to take Imperial down if they try to open a mine,” Lewis tells me bluntly from the one-room office of Clayoquot Action, the non-profit he and his wife Bonnie Glambeck launched three years ago when they decided to dedicate their lives to protecting Clayoquot Sound. The office is a one-minute stroll away from Tofino Inlet, from where Catface’s 800-metre summit protrudes into the blue sky above a thin layer of cloud. In many ways, environmental activism in B.C. came of age in Clayoquot Sound in the early 1990s when what become known as the “war in the woods” erupted into a massive public protest against plans for clearcut logging of old-growth forest. The protest resulted in 800 arrests at a blockade that lasted months. Lewis and Glambeck were in on the grassroots of this movement that eventually gathered global momentum and had Australian activist rockers Midnight Oil playing a concert in the rainforest and U.S. environmental lawyer Robert Kennedy lending his voice to the protest. The “war in the woods” helped redefine the relationship between the logging industry, public, government and First Nations. It also put Tofino on the international map, launching
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the community’s transition from sleepy logging and fishing community and west coast secret, to a predominantly tourism-based economy that now generates between $250 and $300 million in annual revenues and supports up to 2,400 jobs. In summer, traffic jams in tiny Tofino are common. Nearby Pacific Rim National Park Reserve attracts 800,000 visitors annually, to camp, surf, storm watch, beachcomb, sea kayak and spend money in restaurants and cafés.
National Resources Ltd., the Calgary Flames, Resorts of the Canadian Rockies and numerous other firms, also holds a majority stake in Imperial Metals. He was a well-known supporter of former premier Christy Clark and held a fundraising event at Calgary’s Petroleum Club for the politician during her 2013 campaign. Imperial Metals did not respond to numerous interview requests. On the company’s website, Catface and Fandora are not even listed under the Projects banner. Scott Fraser, the recently re-elected MLA for Mid Island-Pacific Rim, served a single term as Tofino’s mayor between 1996 and 1999 before transitioning to provincial politics where he assumed the role of energy and mines critic for the New Democratic Party. His opposition to mining Clayoquot Sound is no secret. He likens it to the controversial Raven Coal project
Imperial Metals said it has so far spent more than
Jamie Heath/Terrasaurus Aerial Photography
Shadow of a Mining Disaster Imperial Metals comes with considerable baggage. In August 2014, a massive slurry of heavy metal-laced tailings burst through a tailings storage facility dam at the company’s Mount Polley copper and gold mine near Williams Lake in B.C.’s interior. It poured into Hazeltine Creek and the Quesnel Lake watershed, as well as onto the front pages of newspapers across Canada and beyond. In total, 24 million cubic metres of material was unleashed into trout and sockeye salmon habitat. At the time Bill Bennett, B.C.’s then-minister of energy and mines under the Liberal government, admitted the Mount Polley breach had severely damaged B.C.’s reputation as a responsible miner. Environmentally, it was one of Canada’s worst mining disasters, and though Mount Polley has resumed operations, the 2014 spill occupied a considerable amount of time for the Liberal government. Imperial has so far spent more than $70 million on remediation efforts on the spill, which occurred when the company was set to commission its Red Chris gold mine in northern B.C., an operation that has been in the crosshairs of well-known opponents like anthropologist, UBC academic and National Geographic explorer-in-residence Wade Davis. Following the Mount Polley disaster, an independent engineering investigation filed a report to the Ministry of Energy and Mines on January 31, 2015, detailing a host of engineering failures and oversights in the design and construction of the impoundment facility, calling Mount Polley “a ticking time bomb.” Another report by Al Hoffman, B.C.’s chief inspector of mines, concluded that Mount Polley’s “management and operational practices failed in a number of areas such as water management and misplaced confidence in the tailing storage facility design” and made 19 recommendations for changes to the Mines Act. As a result, new provisions in the Mines Act and Mining Code, aimed at strengthening the design, monitoring and oversight of tailings and mine-waste storage facilities, came into
effect last summer. In addition, the province has increased prosecutorial power to impose fines and penalties of up to $1 million and three years’ imprisonment for non-compliance with the Mines Act. However, Hoffman fell short of recommending charges to the Crown, and this has raised the ire of mine watchers and environmentalists. A third investigation into Mount Polley by B.C.’s Conservation Officers Service, in conjunction with Environment Canada and Fisheries and Oceans Canada, is still underway and also has the authority to recommend charges to the Crown. Ugo Lapointe of MiningWatch Canada says time is ticking and that if the Crown decides not to hold Imperial Metals accountable, it will set a “terrible precedent and send a message that mining companies can get away with anything in Canada.”
$70 million on remediation efforts on the Mount Polley spill.
In October 2016, in an effort to force the government’s hand, MiningWatch filed charges against the B.C. government and Mount Polley for Fisheries Act violations. But in January, the federal crown stayed the charges, claiming there was insufficient evidence from MiningWatch to warrant charges and that it would wait for results of the B.C. Conservation Officer’s investigation. Lapointe believes MiningWatch had a rock-solid case given the well-documented damage to sockeye salmon and trout habitat resulting from the spill. Now, the Toronto-based mining watchdog is using the weight of a SumOfUS online petition, which had almost 35,000 signatures at press time, to pressure government to follow through with charges. More Questions Raised The billionaire behind Imperial Metals, N. Murray Edwards, also raises red flags for Lapointe, as well as for Wade Davis, who owns a lodge near the company’s Red Chris mine and spent formative years as a young park ranger in the surrounding Spatsizi Plateau. Edwards, owner of oilsands player Canadian
that was being proposed for the east coast of Vancouver Island but was rejected by the B.C. Environmental Office in 2013. “That project had no social licence at all. Catface would be a massive metals mine within view of Tofino and in the heart of the tourism mecca that is Clayoquot Sound,” Fraser said in July while the NDP was gearing up to form the next government. And without the consent of First Nations, projects like this in traditional territories are unlikely to go through. However, Dan Lewis takes Catface seriously, largely because there’s an enduring public misperception that following the “war in the woods” more than two decades ago, Clayoquot Sound was fully protected as a UNESCO Biosphere Reserve. But it’s a designation that is largely symbolic and without regulatory teeth. Lewis says he’s been spending a lot of time bursting the “biosphere bubble” and dubs the simmering battle against Imperial as “Clayoquot Sound 2.0.” “I used to think a mine in Clayoquot Sound could never happen, but I’m not so sure now,” he says. “I don’t think we can afford to write this off as simply a stock-market play.” ■
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There Is No ‘i’ In And Other Lessons in 21st Century Leadership Douglas asks Island leaders, from expert consultants to startup owners, to answer some key questions about leadership in the age of volatility. by Alex Van Tol
Leading has never been easy, but it’s an ever-greater challenge in a time of rapidly shifting products, services and consumer preferences. Employee needs have also shifted: people want more meaning in their work, more flexibility in their schedules, more reasons behind their actions. Couple that with an ultra-competitive marketplace where company loyalty is as evanescent as brand loyalty, and you’ve got a recipe for a whole lot of sleepless nights. Books like Daniel Goleman’s Primal Leadership: Unleashing the Power of Emotional Intelligence and Simon Sinek’s Start with Why: How Great Leaders Inspire Everyone to Take Action point to current themes underscoring leadership in today’s world. These include the importance of keeping one’s eye on the ball — the game, the big picture, the why — and looking after the people on the ground, the ones doing the day-to-day work.
Team FRANK BOURREE PARTNER, CHEMISTRY CONSULTING What is your philosophy of good leadership? I’d have to say that we care deeply for our people. Our team is like family. We’re a flat organization, not hierarchical. Both Christine [Willow] and I share the same values and I think we provide some calm, caring leadership for our team … We offer “Just Because” days, we have a full benefits and pension program and we pay above-industry salaries. But … our retention rates and climate are really not about that. They’re about trust and mutual respect. What is the biggest lesson in leadership today? Christine and I both share the opinion that you need to trust your gut instincts. When it comes to dealing with selecting new staff or working with certain clients, I don’t know if you’ve read the book The No Asshole Rule [by Robert Sutton]. It’s this: don’t be an asshole boss, don’t allow assholes in your workplace and don’t work for an asshole. There’s way more to the book, but [at Chemistry] we choose good energy over bad and the high road over the low road. It’s served us well for 24 years together … We call ourselves Chemistry Consulting for a reason. It’s about the chemistry of people and business.
you’ve Chosen the road less travelled… Helping you turn your Dreams into Reality! small business owners and individuals Tax, business and financial planning, and tax returns Profit plans / proactive coaching Business strategies and coaching Excellence in Customer service award winner, Vancouver Island (5 years)
Your advice to others? Perseverance. Trust and mutual respect with your team. You need to be human. Somebody asked me, “How do you deal with millennials differently than old-school people?” I don’t. I have the same expectations of everybody. Trust and mutual respect. And trust your gut.
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The Butchart family is pleased to announce the appointment of Mr. Dave Cowen to the position of Chief Executive Officer. Formerly the General Manager, Mr. Cowen’s new appointment is reflective of his involvement and leadership in the tourism and business communities, representing The Gardens at both the local and international levels. Mr. Cowen has a long tenure with The Butchart Gardens. He was appointed General Manager in 2007 with responsibility for leading a team in excess of 500 staff and overseeing daily operations and strategic initiatives. Dave is currently Chair of the Greater Victoria Harbour Authority and Co-chair of the Tourism Committee for the Pacific Northwest Economic Region. He serves as Past President of the BC Garden Tourism Coalition, was formerly Chair of Tourism Victoria, and has been an active member on various boards and organizations throughout the region.
NATASHA RICHARDSON GM, BRENTWOOD BAY RESORT What is your philosophy of good leadership? There’s a difference between being a manager and a leader, and you need that understanding and level of control it takes to manage people [before moving into a leadership role]. A leader has great self-awareness and is passionate about the field they’re working in. Self-awareness is knowing how you take up space … people often miss that. They don’t know how they’re impacting their personal relationships … Where we see people fail as leaders, it’s usually [due to] a lack of self-awareness.
What’s the biggest lesson in leadership today?
We’re not a stepping stone to Wall Street.
Leadership is about being incredibly flexible. As a leader, I’m the one who has to be flexible, not necessarily my staff. If I’m flexible, I can go into all sorts of conversations and situations that might be difficult [and not] get defensive or rigid … I can listen better. Then you can be more intuitive and make better decisions.
We think the world’s bigger than that.
Your advice to others? Ask for honest feedback. You won’t know until you actually ask. Feedback is the best way to [find out] if you’re operating in a way you’re not noticing or paying attention to.
“A leader has great selfawareness and is passionate about the field they’re working in. Self-awareness is knowing how you take up space …”
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MANDY FARMER PRESIDENT & CEO OF ACCENT INNS & HOTEL ZED What is your philosophy of good leadership? It’s not about my leadership per se, it’s about getting other people to step up and be leaders in their own right. My job is to provide the compelling vision. I provide that big picture: Where are we going? What do we want to achieve? I make sure all my team has the tools to make this happen … and then I get out of the way. It’s not just one person at the top — it’s all of us working together, supporting each other. What’s the biggest lesson in leadership today? What’s been fascinating for me is surrounding myself with leaders, because they’re the ones who are amazing and who are going
to take this company to the next level. It’s up to me to support them and provide them with the things they need ... I don’t have to do it all. Your advice to others? Have fun — and don’t take yourself so seriously. It’s really important to be approachable … I know I get so much wisdom when a housekeeper, for instance, grabs me to show me something in a room. That’s where you get so much more. Really, the main thing I do is I thank people for doing an awesome job. [I let them know] I see they’re working hard and that I really appreciate what they do, and ask them, “What can I do to help you?”
EXECUTIVE DIRECTOR, POWER TO BE
What is your philosophy of good leadership? You have to be willing to let go. I have a totally different approach to leadership now. I used to be like, “Do this, do that.” But with my executive coach, I really try now to lead by asking questions of clarity, and put the ownership back in the [staff’s] hands: “Hey, how’s it going? What’s going on here?” Can I offer some feedback or advice versus just jumping in and trying to change things? I found that to be super successful. It also keeps me comfortable that I can trust the team is doing stuff, and I can have effective conversations.
What’s the biggest lesson in leadership today? Looking ahead in the future, social media and technology have a much larger influence on
leadership than they did many years ago. It’s one click to information — and it could be false information that you’re going to be dealing with. Be aware and be careful of how you represent yourself. Technology is having such a massive influence in both positive and negative ways. Your advice to others? Instilling a culture of gratitude is super
important. A place where, consistently over time, staff feel valued, volunteers feel proud of the efforts they make for the organization, the board feels part of something, your funders and stakeholders feel part of something — and they feel like you’re really truly thankful for the work that they do.
OWNER, SPINNAKERS GASTRO Brewpub & GUESTHOUSES What is your philosophy of good leadership? Every organization needs to have a soul. As the leader of an organization, it became apparent it was my job to embody that soul — what Spinnakers was trying to be. What that meant was we needed clarity in terms of who we were and what our place was. And we needed a philosophical base for individuals to say, in effect, “What would we do (given whatever the situation is)?” thereby empowering people to make decisions within a consistent framework that helps us go forward.
What’s the biggest lesson in leadership today? When we live in an interconnected community like we do on southern Vancouver Island (which is the antithesis of the globalized community), we’re more dependent on each other. We need to foster and take care of those relationships. And we treat people in a more respectful manner, knowing we’re all dependent on each other ... [After Spinnakers suffered its fire last year] the insurance claims adjuster and the project manager for the contractor
SHELLY BERLIN ... said that in 25 to 30 years they’d never been involved in [such a fast, responsive project] as helping Spinnakers rebuild. It’s that comment about community — and the fact that we have forever as leaders in the craft-brewing community given forward. We help everybody who walks through our door; we share resources. We do all that, and what we went through was everybody giving back to us at that time… One of the first texts I got [after the fire] was from my banker, saying, “How can I help you?”
PARTNER, BERLINEATON MANAGEMENT CONSULTANTS What is your philosophy of good leadership? I believe that leaders are built not born, that leadership is a personal journey and that we all have it in ourselves to be good leaders. Leadership is about how we choose to behave, and in this way leadership is a practice. Leaders are always learning. The great leaders we have worked with have one thing in common — they pursue a greater good that goes well beyond their own needs.
Your advice to others? It’s very much a matter of listening and developing relationships with everybody, and understanding what their needs are … It’s critical that they feel engaged and that their opinions are understood, listened to and valued.
“Every organization needs to have a soul. As the leader of an organization, it became apparent it was my job to embody that soul — what Spinnakers was trying to be.”
What’s the biggest lesson in leadership today? You can’t compartmentalize leadership. How you behave is how you behave. It isn’t a nine-to-five job. Today’s videostreaming, at-your-fingertips technology has made this glaringly obvious. How one leads will change and adjust as culture and generations evolve, but for me, what it takes to be a good leader remains the same: courage, integrity, empathy, collaboration, selflessness and reflection. Your advice to others? Spend time on developing your leadership practice. The more time you spend practicing, the more permanent it becomes.
2017. What if we were to be the most successful medical-device company in North America, what would have to happen in the next five years? We laughed. We’d have conferences, and we’d have speakers from around North America, iconic figures in medical technology. We wrote it down and said, “We’ll have systems so bombproof that people can navigate through a project and you never have to audit their documentation because it’s automatically handled.” We laughed. “We want to have offices in three cities in North America.” And today, it’s amazing to look back and say, “Wow. We’re pretty much there.”
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What’s the biggest lesson in leadership today? It’s a difficult balance between being bold and confident and also being open at the same time. If you surround yourself with yes people all the time you’ll make terrible blunders. At the same time, you have to be comfortable enough about what you’re saying and inspire others to go down the path with you. That’s a difficult balance to strike.
Your advice to others? Scott Phillips FOUNDER & CEO OF STARFISH MEDICAL What is your philosophy of good leadership? It’s not about me telling people what to do. The company does not require me to manage everything. I can delegate and people feel empowered and responsible to make things happen. Leadership is ... being clear about values and philosophies so people feel competent to make the right decision ... It’s important for there to be something on the horizon people are aiming at. About five years ago, in 2012, [our leadership group] got together and wrote down a list of about 50 aspirational things we could imagine of ourselves in
Not to be too full of yourself. It’s really not about you. [In terms of ] the team who’s going to get you there, ultimately, they’re all special people who need a chance to develop and grow like you — and you’re all working together to achieve something. Build that feeling into your company. I’m just the conductor, as it were, but by no means am I the king of anything.
“It’s a difficult balance between being bold and confident and also being open at the same time. If you surround yourself with yes people all the time, you’ll make terrible blunders.”
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islandtentsandevents.com Douglas 43
is your business 5%
Percentage the typical organization loses in annual revenues to fraud. Median loss is $150,000 a year
Months the average fraud scheme lasts (but can be longer if collusion exists)
Percentage of cases that have no recovery of losses
Perpetrators have an equal chance of being male or female; average age is 40; no criminal history
Percentage of employees who never steal (while 10% will steal at any opportunity)
â€” Information courtesy of Rosanne Walters, forensic auditor and partner, BDO Canada LLP
Most business owners are unaware of just how high the risk is that they will be victims of fraud. In this case, ignorance does not equal bliss; it can put entire businesses and financial futures at risk.
at risk? In May, the WannaCry ransomware cyberattack hit organizations like FedEx and the U.K.’s National Health Service, affecting more than 200,000 computers worldwide, with cyber scammers demanding owners pay $300 or more to retrieve their data. Ransomware like WannaCry grabs hold when someone unwittingly opens an email attachment or uses a compromised website, allowing a virus to enter. The hard-hitting software allows hackers to lock files or entire computers until a ransom is paid. It’s bad news for businesses, whose biggest fraud worries used to centre on employee or supplier deception. But today, with online bad guys, who are often one cyber step ahead of the good guys, businesses are in a complex territory where they need to gain control over both digital and tangible assets. “Fraud is about people telling you lies for money,” says Greg Draper, the Calgarybased forensics expert at accounting firm MNP. “In the past it was employee-focused, or else vendors. Now, with the Internet, it allows criminals around the world to reach you. Their full-time job is to find ways to make businesses part with their money. We know that about 50 per cent of businesses in a year are victims of fraud. Some may not know it, but they’re all vulnerable.” Man in the Middle At casual gatherings, Bruce Hallsor heard about an online fraud, dubbed “man-inthe-middle,” making the rounds in Victoria and beyond. It’s when a fraudster somehow infiltrates an email dialogue and convinces the correspondents that they (the fraudster) are both the service provider (lawyer, accountant, supplier, etc.) and the client.
by Shannon Moneo
“I didn’t think much of it,” recalls Hallsor, managing partner at Crease Harman LLP. “Law firms have good security. We’re dealing with trust money.” But on February 1, Hallsor opened his work emails and saw a message where he had asked his accounts-payable department to deposit $97,600 into a U.K. account. “Supposedly, it was a deal I was working on,” he says. Perplexed because he didn’t recall the deal, he walked over to his accounts-payable employee and discussed the unanticipated request. As it turns out, his employee wasn’t aware of the deal either. Red flags went up, and Hallsor and his employee began scrutinizing the emails. Somehow fraudsters had got into the email chain and used an email address that transposed two letters in Hallsor’s legitimate email address. “It was very hard to notice,” he says. Deciding to play cat and mouse with the fraudster, Hallsor and a sharp-eyed staff member spent the day attempting to snag the crook, trying to make him or her believe the money was on its way. All the while they kept working to find out who was behind the scam. When it was apparent the money wouldn’t arrive, the fraudster broke contact. Hallsor reported the thwarted crime to the Victoria Police Department (VicPD). “But there was no great expectation that they’d find them,” he says. Detective Sgt. Derek Tolmie contacted U.K. police, but they didn’t act on the case, either because the crime was prevented or because of the sheer number of such complaints. “I am incredibly frustrated,” he admits. If a crook is smashing the door to rob a house, police will be there to help.
But if a criminal is breaking into an online system to steal, don’t count on cop control. “You have to take steps to protect yourself,” he says. In Hallsor’s office, where a financial mistake can destroy a valuable reputation, the law firm uses much documentation to support email requests, employs face-toface contact to verify online messages and double-checks all requests for money disbursements. “If you rely entirely on email, you’re vulnerable,” Hallsor stresses. Over many years of practice, he knows that having well-trained staff who know not to open random emails or play around on social media is paramount. Also crucial is that for the last 20 years his firm has used the same IT professional to keep the company’s firewalls and software up to date and secured. Tricky Business As Tolmie knows, not all businesses are as aware. In one file, $1 million was stolen by an online fraudster after a Victoria lawyer and his client both thought they were communicating with one another when, in fact, they were messaging the doubledealer. Legitimate emails about a real-estate transaction between the lawyer and the daughter of an elderly client were accessed. Soon the lawyer got frustrated with the client’s odd requests, which were actually made by the fraudster. The lawyer chalked it up to the client being old and perhaps confused. “Never in his wildest dreams did he believe he was being defrauded,” Tolmie says. But the $1 million vanished after deposits in Asia, then Europe. Douglas 45
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Another local case involved the purchase of a large piece of equipment for a business. The scammers infiltrated email correspondence (via the one-character difference in email addresses) between the purchasing manager and supplier, asking the manager to send $25,000 to Florida instead of the expected address in Canada. What was interesting, Tolmie says, is that the Canadian supplier had earlier been scammed by a woman, apparently in Russia. “What we’re seeing are victims dragged into two different frauds, man-in-the-middle and romance scams,” Tolmie says. The crooks, who can be anywhere in the world, are trolling 24-7, sometimes using spyware that gives them full access to a company’s computers to learn its business dealings, sometimes doing lots of online research. “They knew a lot about Hallsor,” Tolmie says. When they strike, there’s a sense of urgency as the fraudsters tell the victim they have to act fast, often leading to careless activity. “Slow right down. Do your due diligence,” Tolmie advises. Targeting Small Business Also on VicPD’s radar are counterfeit cheques, often intercepted in the mail or else reproduced. Thanks to laser printers, the fake cheques are very convincing, Draper adds. Rosanne Walters became a chartered accountant in 1983, and by 1989 she was a forensic auditor working in Los Angeles, where she later ferreted out fraud in the movie industry. Today she’s a partner at BDO Canada LLP in Vancouver, where forensic investigations are one of her several specialties. “We used to worry about equipment disappearing out the back door, but with so much more electronic data we’re moving from internal theft to cyber crime,” Walters says. She’s learned hackers love to target smaller businesses who can’t afford dedicated IT staff and, instead hobble together a system. Often firewalls and updates are neglected or employees are lax when it comes to passwords, using stupidly simple ones. And when that random attachment or email arrives at the office promising a cruise, and someone clicks on it? Presto, malware or ransomware blazes in. Tipoffs are emails that contain grammatical or spelling errors. At Walters’ office, staff put a code word in each email so other staff know it’s legitimate. “And our company flags every external email in red,” she adds. Her company also doesn’t allow staff to send company emails to their personal addresses. Another tip? Encrypt company data, because when an employee turns on the computer and is greeted by a black screen, it can be too late to retrieve data. “Hackers can install keystroke monitors
and sit and watch and see who is who,” says Walters, who also recommends employers not allow staff to use memory sticks at work, relating the story of a woman who, when she didn’t get a bonus she thought she deserved, downloaded company information and sold it to a competitor. How Vulnerable is your Business? The February 2017 MNP Business Fraud Survey of 1,000 Canadian small business owners and 100 executives at companies with 100-plus employees unearthed a misconception that exists between the belief that fraud is being
managed and what’s actually occurring, Draper says. While 67 per cent of those surveyed say they have policies/procedures to deter, detect and deal with online and physical fraud, one third admit they believe their business was exposed to fraud but they don’t know for certain. Also troubling is that businesses may discover fraud but not make it publicly known, afraid of the damage to their reputations. “There’s a risk for all businesses, but there’s an attitude that it can’t happen to us. The disconnect is quite startling,” Draper says. When it comes to internal fraud, most often
it’s committed by employees dealing with financial pressure, be it from an addiction (gambling, drugs, shopping), a divorce, a sick family member or an expensive lifestyle (big mortgage, luxury vehicle). They then rationalize their fraud by telling themselves they deserve the proceeds or that they’re not being paid enough, Draper says. “I tell business owners all the time: open your bank statements. They’ll check their stock portfolios every day, but they don’t take the time to look at their banking documents. Part of it is, you don’t expect someone you hire to steal from you,” he says.
Protect Your Assets
Rosanne Walters’ forensic-accounting career started in 1989 in Los Angeles. Today, the partner at BDO Canada LLP’s Vancouver office uncovers fraud in areas as varied as commercial disputes, divorce trials and criminal investigations. Here are her fraud-fighting tips: Know your employees and their backgrounds. Resumés often contain false information. Thoroughly screen prospective employees, including criminal checks. Gaps in employment should be investigated. To avoid cybercrime, invest in solid anti-virus programs, firewalls and regularly updated passwords. Information can be easily removed from office computers via memory sticks or email. Be aware of information stored on hard drives of photocopiers and cash registers and purge regularly or save it offsite. Start a confidential reporting system for employees. According to the Association of Certified Fraud Examiners, 42 per cent of fraud is detected by tips from employees, customers and suppliers. Protect against fraudulent third parties including property managers, contractors, suppliers and consultants. Ensure they’re reputable and legitimate. Get bids for services as often as possible.
Be aware of corruption schemes involving bribes or kickbacks and relationships between third parties and insiders, such as where a company pays for the services of a consultant who overcharges and later splits the difference with an inside employee.
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Scrutinize bank statements. Embezzlement schemes happen when insiders have access to bank accounts or cheques. The danger? They could pay personal bills using company funds. Review your statements diligently to confirm that your accounts haven’t been tampered with. Examine expense reports since expenseaccount fraud is very common in all businesses. Original receipts should be supplied. Watch for employees submitting personal expenses or even multiple invoices for the same expense. Know what assets you’re buying and how they’re being used. Install video cameras where possible.
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Walters tells of two realtors, married to one another, who let a bookkeeper handle their finances. The bookkeeper skimmed off substantial funds, and they didn’t notice until much later. Small businesses are susceptible, Walters says, because they often have one person in charge of the books who can easily manipulate accounts, going so far as to set up fake suppliers, writing cheques to them and pocketing the money.
Are your passwords hard to guess, changed regularly, not set to defaults, and securely stored? Do you have a disasterrecovery plan or businesscontinuity plan, including cyber-fraud insurance, to recover all data?
Vigilance Needed Making headlines recently in Victoria was the $120,000 stolen over six years from MLA Rob Fleming’s office by his assistant, Marni Offman. Walters recently completed an investigation where an employee stole $180,000
Is access limited based on user need and are mobile devices fully secured?
Do you know who has access to all computer systems — and is computer access removed immediately when employees/contractors/ volunteers exit the company? Is a regular process followed to identify software failings and apply updates, and are dedicated, trained staff, which could include thirdparty professionals, used to monitor/service the network?
Is your data stored with a cloud service (which can be as secure as storing it locally)? Is your most valuable or sensitive data encrypted, are daily backups done, and is public WiFi not used for financial transactions? Do staff get regular security training to be aware of threats such as phishing or phony callers seeking information?
— Courtesy of the Digital Boundary Group
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over 18 months. Other internal frauds include kickbacks where an employee and supplier make a deal and the supplier gives the employee half of the money paid for a service or product, often at inflated prices. There’s also expense-account abuse, inventory theft and cash skimming. Walters recalls a client who paid $50,000 for a coffee-shop franchise with the promise she’d earn $100,000 a year. After a year, she’d made no money. The problem was, she’d predictably arrive at the shop each day at 11 a.m. But during the pre-11 hours, staff would sell coffee for cash and pocket the money, and give away food to friends. Many of the workers were young women, often with children, working two jobs, who rationalized the theft, saying they needed money and believed the owner could afford it. Once the owner installed video surveillance, her business was soon profitable. “People change their behaviour when being watched,” Walters says. Also useful is having a whistle-blower hotline where someone can confidentially report fraud and not fear reprisals. Proper employee screening, including criminal-record checks, is also vital. One of Walters’ colleagues who screens resumés found that seven out of 10 of them contain falsehoods. Job rotations and mandatory vacations are important because if someone is committing internal fraud, they don’t like someone stepping into their position where the fraud could be discovered, or they hate to be away from their motherlode, Walters says. Employee support programs are valuable because they can assist with personal problems or addictions, both of which can lead to fraud. Fraud-awareness training is also useful. And consider having insurance against dishonesty, known as a fidelity bond. It insures a business for losses caused by dishonest acts done by employees, Walters says. The man who thwarted a fraud has the last bit of advice. “If you’re paying attention, it’s hard to fall victim,” Hallsor says. “Stay vigilant.” ■
[business intelligence ]
How to speak so your audience will stay awake
Do only jerks finish first?
Replicating your income during retirement years
Colonel Chris Hadfield, the first Canadian commander of the International Space Station, is considered an exceptional public speaker. He excels at making human connections through his storytelling, whether he’s in a grade-four classroom or on the stage at TED.
COMMUNICATION by Rosemarie Barnes
How to Speak So Your Audience Will Stay Awake Our public-speaking expert shares advice about how to deliver engaging public presentations that will entice your audiences out of the snooze zone.
was recently at a convention in Las Vegas where a roomful of delegates struggled to stay alert while an “inspirational” speaker read from PowerPoint slides in a monotone devoid of any passion or presence. The eerie glow of active cell phones hidden just below the tabletops filled the room as many audience members bent over their electronic devices. Others slouched in their seats, blank-faced and slack-jawed, lulled into a bored stupor as the speaker quoted statistics, analytics and all manner of other factoids. Motivating? Inspiring? Hardly. The best thing you can say about talks like this is they give you an opportunity to catch up on your emails.
So why can’t the people delivering these droning talks see this? Why do many people mistake the ability to say words with the ability to speak to an audience. In fact, public speaking is a skill that requires training and practice. Speaking in public without professional training is akin to swimming in a shark-filled ocean with an open wound; it can be done, but it’s risky. As Robert Moment, author of How to Succeed in Life, said, “Public speaking skills are an essential key to achieving career advancement and success.” When it comes to representing your business, I agree with vocal coach Roger Love, who said, “All speaking is public speaking, whether it’s to one person or a thousand.” So if you say a single word about your business, you are making a presentation — and it had better be good. Douglas 49
Fortunately, since presentation techniques are learned, not inherited, all business people can acquire the skills to avoid becoming a medical miracle for the hopelessly sleepless. What Makes a Great Speaker? Most public speakers simply recite information and believe the audience will absorb it. Great speakers share the best information and best ideas for the specific audience. They start by answering their audience’s top-of-mind questions, such as “What does this have to do with me?” and “How will this ultimately affect me?” and then present their listeners with a single and clear call to action. A common mistake speakers make is including too much information. It’s an honest mistake made by those who want to provide audiences with as much value as possible, but it always backfires because too much information leads to confusion, and confused minds do nothing well. So how much can an audience handle? As a species, we’re married to the number three. There is a reason those classic stories feature three bears, three little pigs and three Billy Goats Gruff. It’s because we remember what we hear first, we remember the last thing we hear even better, and we can quite easily recall the one thing that came in between. If you add more into the middle, you risk muddying your audience members’ memory. The only difference between a 15-minute presentation and a full-length keynote is the number of details included for each of the three points. In public speaking, some people prefer to work from the human hand (see graphic on this page). Essentially, your thumb and little finger are your introduction and closing. In between, are your three main points. You can count them off onstage. Make Your Movement Strategic Often, in an example of good intentions gone awry, many speakers believe that to “reach” their listeners they must physically cover the presentation space. They wander from one edge of the stage to the other, and turn their attention both physically and mentally to the individuals closest to them. This idea backfires because, instead of creating closer connections with listeners, it segregates the audience. Yes, the people directly in front of the speaker become attentive, but those at the other side of the room are left out of the conversation. The speaker does need to fill the space, but instead of using their feet, they need to do so with their charismatic presence. Creating a charismatic presence means using gestures appropriate to the size of the room and choreographed to enhance the words and the message. There is no need to pace like a tiger in a cage — charisma and the projection of it are powerful skills, and they can be learned. 50 Douglas
Three points in public speaking
Middle Finger Point two
Index Finger Point one
Ring Finger Third and most powerful point Baby Finger Call to action and closing
Voice is vital Sadly, voice is the most commonly ignored aspect of public speaking. Problem voices are those that sound like nails on a chalkboard, are raspy or hoarse like those of heavy smokers or are too quiet, too airy or too highpitched. These voices are not going to inspire an audience to do anything but hope the presentation will be over soon. Similarly, vocal pacing counts. If you talk too quickly, your audience can’t follow; if you talk too slowly, your audience may get bored. Also, pausing for emphasis is strategically wise, but speaking in staccato bursts à la Captain Kirk of Star Trek is not. Pitch and timbre play a part as well, and accessing the full range of vocal variety is vital to stave off an audience-wide snoozefest.
If you are unsure about your voice, ask for feedback from those you trust, who will be honest with you — or work with a publicspeaking professional who can train you in the techniques to turn your voice into an asset. Close Well Once you’ve delivered your riveting presentation, there are far more powerful and elegant ways to conclude a presentation than to mumble “thank you” and leave. Try taking a single step backward, bow your head once, long enough to think, “I was terrific,” then raise your head while wearing a sincere smile. Stand still and accept your applause. Through their applause, your audience is telling you they appreciated your ideas, insights and skill. To ignore them by immediately exiting the space is to say you don’t care whether they liked it or not. Business leaders can no longer afford to ignore the importance of giving impactful and influential presentations. Words have always had great power, but only if they are delivered straight into the ears and hearts of the listeners. A good idea not shared well is unfortunate. A brilliant idea not shared well is a tragedy — and in today’s business world, it can mean the difference between success and failure.
Rosemarie Barnes, owner of Confident Stages, is an inspirational speaker, presentation and vocal coach and Certified Speaking Coach. She is the author of Confident Public Speaking: Being Heard Above the Noise.
Growth by Clemens Rettich
Do Only Jerks Finish First? Can nice people succeed in leadership roles? As our Growth columnist discovers, it’s complicated.
s being a decent human being incompatible with being successful in business? I thought about this a lot lately after reading the article “Why it Pays to Be a Jerk” in The Atlantic. In this article, author Jerry Useem looks into extensive and sometimes contradictory research on this topic and discovers that the answer is “Maybe.” One of the studies Useem looks at is the research by Dutch social psychologist Gerben van Kleef, who led the now-famous coffee-pot study of 2012 to determine whether breaking rules could help people rise to power — or hurt their chances. To do that, he and his colleagues measured how people felt about the leadership potential of someone who stole a pot of coffee from a researcher’s desk in the office. Here are the results:
W hen you steal a pot of coffee and share it with your team members, leadership perception goes through the roof. W hen you steal a pot and hog it to yourself, leadership perception declines but only slightly. W hen you pour a coffee for team members without stealing anything, leadership perception tanks completely. Naturally, leadership, growth and success are more complex than sharing (or stealing) a pot of coffee, but the study does support a point: rule breakers are more likely to be put in charge. And who are the rule breakers? Often, they are the ones willing to sacrifice being “nice” to get results. And when we seek results for our team or “tribe (to use business author Seth Godin’s word), even if the behaviour is shady, people see us as prepared to do what it takes to look after our own, right or wrong.
Naughty or Nice Disagreeable Giver Challenges the status quo.
Disagreeable Giver Asks the difficult questions.
What kind of leader are you?
Disagreeable Giver Willing and able to give critical feedback.
Disagreeable Giver Doesn’t shy away from conflict and is not afraid to say no.
Nurturer Empowers his/her staff. Nurturer Shows gratitude and is quick to praise. Nurturer Known for rolling up sleeves and working together with team. Nurturer Admits mistakes and knows how to say, “I’m sorry.”
Disagreeable Giver Doesn’t always show positive feelings, but has everyone’s best interests at heart.
Nurturer Happy and positive outlook.
What Does it All Mean? So does all of this mean you have to behave badly to succeed? After all, look at all the CEOs who were/are reputed to engage in “jerk” behaviour. Here are two of the most famous: Steve Jobs, founder and CEO of Apple, was notorious for risk taking and bullying employees into perfectionism. He was also known to be incredibly charismatic and visionary and generous with those who were loyal to him. Arianna Huffington, founder of The Huffington Post, is a spokesperson on feminist and human-potential issues, but, according to Buzzfeed, she allegedly gave away TechCrunch journalist Sarah Lacy’s job while Lacy was in labour. But the Steve Jobs and Arianna Huffingtons of the world are outliers. Their successes and their outsized egos (and their undeniable talents) aren’t norms. Using them as models for our success is like using lottery winners as models for good financial management. Along with the problem of using outliers as role models for success is the false causality of assuming people like this are successful because they are jerks. Being a contentious human being has no more to do with Huffington’s and Jobs’ success than Herb Kelleher’s love of Wild Turkey 101 has to do with his success at Southwest Airlines. And let’s not forget the most obvious reason why behaving like Huffington and Jobs won’t make you as successful as them: you aren’t Arianna Huffington or Steve Jobs. It’s a Give-and-Take Game So how do we reconcile all this in pursuit of our own growth and success?
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The answer lies in a term used by Adam Grant, author of Give and Take: Why Helping Others Drives Our Success. Grant refers to “disagreeable givers.” These are people who will cross social lines to get results that further a greater good or the success of others. His term lays bare the false dichotomy that being a good person and being an aggressive, disagreeable person (sometimes even a real jerk) are mutually exclusive. The fact is that in the service of real growth, groundbreaking transformations or disruptions of comfortable stagnation, even “giving” humans have to act like jerks sometimes. So what are the characteristics of being a disagreeable giver that are success and leadership indicators? They stand up. Successful people don’t hide under their desks when a storm hits. Being fine with confrontation, even aggressiveness, when it is required in the defence of their people and what they stand for won’t make them popular with everyone. It will make them popular with who matters. They are critical. Successful people are critical people who will call out mediocre work, lazy questions or badly formed assumptions.
by steve bokor
How to Replicate Your Income During Retirement Years Are you eagerly awaiting retirement — or dreading it because of financial worries? Our Money columnist explores strategies to help you plan a more secure future.
They make up their minds. In situations where split-second decisions matter and long debate can be a recipe for failure, successful people know how to make up their minds. They know that just because you consult doesn’t mean you have to agree. Their mantra? This is my business, my life and my decision. They are challenging. Not all ideas are good ideas. Not everyone is a good fit. An unwillingness to challenge assumptions and groupthink, even if it means upsetting people, is caving in to entropy, and it leads to eventual failure. Successful people know this. They kick things loose. People get stuck. People stop listening. Sometimes in those moments, asking nicely doesn’t work anymore. Successful people know that sometimes being blunt, even to the point of rudeness, is the only thing that will turn things around in time. They reach high enough to scare themselves. There is no growth in the comfort zone. Saying “I can do that” with complete conviction, even when your experience isn’t quite there yet, is sometimes the only way forward. People who don’t accept anything less than growth and results don’t mind hanging out at the edge of
or have recently made the transition. Indeed, boomers have been the focus of much of the investment world — and its cheesy financialplanning commercials — for years. As they begin to hit 65, unexpected changes and market volatility can cause many boomers to reassess their retirement dates. Many retirees simply cannot be exposed to severe — or even modest A male aged 65 can purchase a $100,000 life annuity and receive annual income of
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hether you’re a business owner, an executive or an employee, the topic of retirement doesn’t always bring a sense of well-earned relief and happiness. Instead, worries creep in as we transition from a life of known routines, steady paychecks and paid vacations to a life full of uncertainties. Even those individuals with gold-plated, indexed government pensions have been known to express doubts about retirement. “What happens if I get a debilitating illness? Who will take care of me? Will I outlive my retirement capital?” If you’re a baby boomer, you may be nervously focusing on an imminent retirement
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their abilities and experiences, even at the edge of the truth. What’s the Tipping Point Of course, there is a balance between being a disagreeable giver and a completely unbearable human being. To keep your personality in balance, there are a few things to keep in mind: Keep your value and your values straight. Allow yourself to be challenged as often as you challenge. Accept the consequences of your decisions and positions. B ut in the end, don’t accept false dichotomies. Don’t buy into the myth that you always have to be agreeable. You can be critical and empathetic. You can be disliked while still being an agent of positive change. You can be disagreeable and a giver. You don’t have to be a jerk to finish first — you just have to act like one sometimes. Real life is like that. Clemens Rettich of Great Performances Group has an MBA in Executive Management, with 20 years of experience in education, management and small business.
— market losses. They need to protect their savings in a cost-effective manner. Fortunately, there are investment strategies that can minimize or eliminate most prospective retirees’ financial fears. But you need to know the magic number, which is different for everyone. First, contact Services Canada to determine your CPP and OAS future benefits. The current maximum benefit starting at age 65 is $13,300, or $26,600 for dual income earners. If you add in another $6,800 each from OAS, a working couple will have a combined income of $40,000 in retirement. CPP can start as early as age 60 or be deferred until 70 with benefits reduced for each year starting before age 65 and increased for each year after 65. The decision of when to take CPP depends on your other sources of retirement income (government or corporate pensions,) health and employment satisfaction. I have clients who work into their late 70s and a few who still enjoy working in their 80s. In general, individuals will be further ahead after age 82 if they defer the start of CPP until age 70. Get the Most Out of your Savings The goal is to maximize your after-tax income. If your retirement income from investments and pensions exceeds your current spending requirements, delay converting your RRSP into a RRIF until age 71 to defer the tax bite. Fully fund your TFSA from non-registered assets (you don’t have to fund it with cash), but take care on the attribution rules for gains and
losses. The cumulative limit is now $52,000, and at 5 per cent that could generate another $2,600 per year tax free. Some retirees will want to convert as many financial uncertainties into certainties as they can. Perhaps take advantage of tax-efficient investment vehicles that give you peace of mind. Two strategies are to purchase life annuities or T-series mutual funds. Both are designed to provide a steady tax-advantaged income for life, or 20 years or more. For example, a male aged 65 can purchase a $100,000 life annuity with a 10-year guarantee that will generate monthly income of about $500. More important, the taxable portion is only about $95. Put another way, an investor in a 35 per cent tax bracket will receive annual income of $6,000 but only pay $400 in income tax. That’s guaranteed for life. Many mutual funds offer a T-series distribution. A $100,000 investment will generate $6,000 annually and the taxes will be deferred for about 17 years, with future income considered capital gains. However, in the case of the mutual fund, adverse financial conditions could affect the monthly income in later years so a degree of caution is warranted. Consult with a professional advisor. Protecting Investment portfolios Even financially secure retirees should not be exposed to severe — or even modest — market losses. If you currently have a large investment portfolio, in stocks, mutual funds or Exchange Traded Funds (ETFs), there may be a need to protect your savings in a cost-effective manner. There are a number of alternatives that can provide downside protection. One of them is “protective put options,” which I don’t have enough room to adequately explain here, but you may want to ask your financial advisor about them. When it comes to your investments, do not try to make up for below-average returns by investing more aggressively. Juicing your retirement portfolio dramatically toward more volatile-growth stocks does have the potential to generate bigger gains — but also more risk, and this is where those protective put options may be of use. Similar caution applies to bonds. Moving high-rated, short- and intermediate-term bonds to high-yielding junk bonds or long-term issues may seem like a sure-fire way to boost returns in a low-interest-rate environment. Until interest rates tick up, which seems likely given that the Federal Reserve has signaled continued “gradual increases in the federal funds rate,” bond prices will fall — and bonds with the longest maturities will generally get hit hardest. You know your number … now you know one way to protect it. Steve Bokor, CFA, is a licensed portfolio manager with PI Financial Corp, a member of the Canadian Investor Protection Fund (CIPF).
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The Sweetest Thing
Kleekhoot Gold syrup comes from the sap of the bigleaf maple. This species can only be found on the west coast of North America. Only trees over 30 centimeters in diameter are tapped.
by Karin Olafson
Hupacasath First Nations’s agricultural manager Jason Lion (pictured here) developed the idea for the maple syrup production while he was a UBC student working with the Hupacasath community garden project.
The Hupacasath First Nation was the first B.C. maple-syrup producer to use a modern vacuumtubing system — common in eastern Canada — to collect maple sap.
Jeffrey Bosdet/Douglas Magazine
When the Hupacasath First Nation originally developed their economic development plan, the idea was to add fishing stations at the Kleekhoot reserve in the Alberni Valley. But when a visiting UBC student noticed all the bigleaf maple trees in the area and suggested the First Nation consider launching their own maple syrup farm, an idea was born. From idea to market, Kleekhoot Gold Maple Syrup became a reality in just 18 months. Rick Hewson, its CEO, says Kleekhoot Gold became the first company to commercially produce maple syrup from bigleaf maple trees in January 2017. The business is also a sustainable one that preserves the Alberni Valley ecosystem — Hewson says tapped trees can heal completely in as little as three months. During Kleekhoot Gold’s first season, 600 bigleaf maple trees were tapped to produce roughly 2,000 bottles of maple syrup. The syrup, which has unique undertones of vanilla, caramel, butterscotch and honey, was a hit. “We’ve had a significant demand for the product already,” says Hewson, “so we are expanding to tap between 3,000 and 5,000 trees next season.” He says already more than 40 tourist-oriented stores from Vancouver Island to Alberta are interested in selling Kleekhoot Gold, and the business has been in touch with restaurants and grocery stores interested in carrying the product. “Now come the challenges,” says Hewson. “Now we have to make sure we produce enough product to meet the demand.” It’s going to be a busy tapping season.
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