Local. Business. Intelligence. September 6–12, 2011 • Issue 1141
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PST overhaul pushed in wake of HST defeat 7
$100m software plan failing school system
Incubating innovation 10 Mills brothers’ family business success secrets 15 Diana Stirling and the campaign to up the ante for women business owners in B.C. 17
Frustration reaching boiling point for teachers and school administration staff over province’s problematic B.C. Enterprise Student Information System 4-5
B.C.’s carbon plan in neutral
Business pays penalty for polarized politics 28 Price on Vancouver’s top city election issue: housing 29
>Environment minister reconsidering scheme that forces school boards to subsidize the green initiatives of large B.C. polluters as Victoria taken to task over carbon-neutral policy By Nelson Bennett
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Redesigning sales Interior decorator suze McCart gets creative with advertising
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The Blue Edition: Where and when to invest company money in marketing
Downtown draws bentall’s Tony Astles hopes to attract out-of-town office tenants to Vancouver
Environment Minister Terry Lake said he will review a policy that has forced school boards and health authorities to subsidize industry to shrink its carbon footprint. Last week, Lake admitted his government’s carbon-neutral initiative for the public sector might need some retooling. “We recognize that there’s a public perception problem in terms of money going from schools, hospitals to Pacific Carbon Trust and seeing those monies flow out to companies like Encana,” Lake said. As detailed in Business in Vancouver (“Smoke and Mirrors,” issue 1139; August 23-29), the “perception” problem arises from the fact that school districts last year were forced to pay $4.4 million to the PCT, which then handed the money to companies like Encana, Interfor, Canfor and Lafarge. Health districts were likewise fined $5.4 million last year for not meeting the province’s carbon-neutral targets. At an August 29 conference, Lake said he would be reviewing the policy. That’s the same day the BC School Trustees Association (BCSTA) sent Education Minister George Abbott a letter asking his government to return the offsets being paid by school districts to the education system to help boards make schools more energy-efficient. “The notion that public investment in education is being diverted into the private sector, it’s fair to say that districts around the province are appalled by this,” BCSTA president Michael McEvoy told Business in Vancouver. “Boards want to make these investments in public infrastructure, and yet they’re losing the opportunity to do that by these funds being taken out of the public system. It makes absolutely no sense.” Last year, the Surrey School District was fined $500,000 for missing its carbon-reduction targets and faces being forced to pay a similar amount in this school year. see PCT, 7
Domini Schaefer
BC
MEC boss David Labistour aiming to take outdoor supply company to new heights 31
T.B. Vets’ fight for survival Kandys Merola, chairwoman of the T.B. Vets Charitable Foundation, flashes a sheaf of the charity’s widely recognized key-chain tags. Rising costs and mounting debts have forced the organization to cut staff and refocus a business plan that had drifted far off its original course see T.B. Vets, 3
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News
September 6–12, 2011 Business in Vancouver
T.B. Vets Foundation chops 14 staff Organization sells Burnaby headquarters, focuses on core service to survive as economy hits charities hard By Glen Korstrom
he turbulent economy has made fundraising so challenging at Burnaby’s T.B. Vets Charitable Foundation that the 65-year-old charity has laid off 14 of its 20 staff, cut several divisions and decided to focus on its original mandate of providing key tags to donors. Much like the War Amputations of Canada (War Amps), T.B. Vets provides donors with coded tags to attach to key rings. Lost keys can then be returned to their owners via the charity if the finder drops them in a mailbox. For decades, T.B. Vets has employed people between December and March to run that program. Its management decided in 2001 to branch out to provide more services to generate revenue, keep staff employed year-round and potentially increase the funds the organization can raise to finance respiratory disease research, doctors from University of British Columbia and Vancouver Coastal Health and the Centre for Disease Control.
“Our business has been pretty steady because we provide a service of lost key return. We have customer loyalty for that” – Danita Chisholm, executive director of communications, War Amputations of Canada
That broadened scope included: •selling the Green Zebra coupon book that has discounts at environmentally sustainable businesses; •folding and mailing pamphlets for clients such as the St. Paul’s Hospital Foundation; and •creating recognition awards by hand-stamping ribbons and shoe tags with lettering.
Dominic Schaefer
T
Kandys Merola, chairwoman of the T.B. Vets Charitable Foundation, in front of empty drawers once full of orders: “when we sold our building we had the chance to really look at ourselves and say, ‘What do we really want to do here? Are we going to continue losing money? Or are we going to try to downsize and get our key tags [business] going and save the organization?”
But T.B. Vets chairwoman Kandys Merola said that each of the new initiatives drained the charity’s treasury. Ca nada Revenue Agenc y (CRA) data shows that T.B. Vets lost more than $176,000 in the 2010 calendar year. Most donations to T.B. Vets flow through the Ability Group Society (TAGS), which generated nearly $2 million in 2010. Management expenses were $264,000 while TAGS spent $1.9 million on expenses for “charitable programs,” which includes operating the money-losing divisions. CRA considered the programs to be “charitable” because most of the employees that T.B. Vets hired have hearing loss and other disabilities. “We have to be responsible to our donors first,” Merola said. “We have to ensure people who are
sending money that most of their donation is going to the hospital that they thought they were donating to.” Donors do not want their donations to subsidize a failing coupon book, she added, before revealing that T.B. Vets has been losing money for years. Last September, the organization was forced to sell its 16,000-squarefoot building on Graveley Street in Burnaby for $3 million. Later this month, T.B. Vets will move to a 2,800-square-foot site near Boundary Road in Vancouver that it will lease. “When we sold our building we had the chance to really look at ourselves and say, ‘What do we really want to do here? Are we going to continue losing money? Or are we going to try to downsize and get our key tags [business] going and save the organization?”
Merola said. About 60,000 people have T.B. Vets key tags. That’s a small fraction of the eight million people who have War Amps key tags. Key tag recipients at both charities are not charged a set rate for their tags. Instead, they’re encouraged to donate what they feel is appropriate. “Our business has been pretty steady because we provide a service of lost key return,” said War Vets executive director of communications Danita Chisholm. “We have customer loyalty for that. A lot of people have had their keys returned.” Neither War Amps nor T.B. Vets gets government funding; both rely on donations. As with most charities, much of their revenue is spent on administration and other expenses unrelated to their cause. For example, according to the CRA, War Amps generated $31.8 million in revenue in 2010. It spent $30.4 million on costs before it had anything to give to what the CRA calls “qualified donees.” B.C.-based charities close in size to T.B. Vets are in a similar situation. For example: •AIDS Vancouver generated $2.1 million in revenue in 2010 and spent nearly $2 million on expenses before providing gifts to what CRA considers qualified recipients; •Boys and Girls Clubs of Greater Vancouver generated about $1.2 million in revenue and spent all but $8,840 on expenses; and •the Amyotrophic Lateral Sclerosis Society of B.C. generated $1.7 million in revenue and spent $1.6 million on expenses. B.C.’s largest foundation, the British Columbia Children’s Hospital Foundation, generated $55.6 million in revenue and had slightly less than $20 million in expenditures before allocating gifts to qualified recipients. • gkorstrom@biv.com
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BUSINESS TODAY Absolute named in U.S. invasion-of-privacy lawsuit A lawsuit launched by a 52-yearold Ohio woman alleges that Vancouver’s Absolute Software (TSX:ABT) invaded her privacy after the company recorded sexually explicit images of her as part of its attempts to retrieve a stolen laptop. Susan Clements-Jeffrey, a substitute teacher, bought a stolen laptop that happened to be protected with LoJack, Absolute’s computer-tracing software. An Ohio judge ruled Absolute overstepped its bounds when it handed screen captures of sexually explicit webcasts the woman had with her former boyfriend over to police as part of their investigation. That decision clears the way for a personal-injury lawsuit against Absolute. Thursday, Sept. 1
CNN buys Vancouver’s Zite CNN is embracing the trend of consumers getting news through iPad magazines by buying Zite for a rumoured $20 million to $25 million. Ali Davar founded the company in 2005 at the University of British Columbia. It is now headquartered in San Francisco, but the company will keep a satellite office in Vancouver. Wednesday, August 31
Zymeworks signs US$187 million partnership with Merck Vancouver biotech company Zymeworks Inc. has signed a contract with pharmaceutical giant Merck & Co. Inc. (NYSE:MRK) that is worth up to US$187 million. Zymeworks researchers focus on antibodies to identify and eliminate antigens or foreign molecules that can create diseases or tumours. Tuesday, August 30
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Daily business news at www.biv.com September 6–12, 2011
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Education ministry’s $100 million school software investment scores failing grade from B.C.’s teachers Abbott drags heels on releasing $250,000 report outlining options for overhauling, upgrading or replacing the problem-plagued BCESIS student-information computer system to interact with servers stored in a single location. Allen owns Harts Systems Ltd., a school-administration software development company. He believes that no amount of spending on BCESIS will eliminate its bugs. His 12-employee company bid eight years ago to provide the ministry of education with database software when the government issued a request for proposals (RFP). The government wanted the
By Glen Korstrom
BC
“The reason they wanted to be centralized is so they would have this great big computer system. It’s the Dominic Schaefer
’s M i n ist r y of E ducation and individual school districts have combined to spend more than $100 million for problem-plagued software that tracks personal student information. The system’s provider, Pearson Education Inc., plans to stop servicing what it considers an “antiquated” application and has offered Education Minister George Abbott free licences and discounted services to migrate to what Pearson considers to be a superior system. Abbott, meanwhile, is sitting on a $250,000 report that his ministry commissioned Gartner Inc. to produce to advise the government on how to proceed. “I’ve requested to see the report. Abbott said that he would make it public once he gets it,” New Democratic Party (NDP) education critic Robin Austin told Business in Vancouver. “Genera l ly, when governments receive something like that and they don’t make it public as quickly as one would like, that suggests that there’s probably not good news in it.” Abbott told the legislature in May that his ministry has spent $89.1 million on the British Columbia Enterprise Student Information System (BCESIS) since school boards started rolling out the software in 2005 to track such information as: •student grades; •attendance; •allergies; •native language; •parent contact information; and •other personal data. That expense is in addition to what Austin estimates to be tens of millions of dollars that school boards have spent to train teachers to use the system and train computer administrators to troubleshoot its persistent problems. Abbott also told the legislature that the public would not have to file a freedom-of-information request to see the report.
same reason that a 16-year-old wants a big Ford Mustang” Larry Kuehn, the BCTF’s director of research and technology division: the B.C. government has wasted $100 million on a computer system riddled with glitches
System failures The biggest problem with BCESIS, according to critics, is that data for all school districts is stored on centralized servers in Vancouver. B.C. teachers input data about the province’s 649,366 gradeschool students at the same time of day and at the same time of year. That creates a logjam so severe that BCESIS kicks teachers off the system while they’re inputting data. Teachers or school administrators then must try to log in again. If they’re successful, they have to start from scratch and re-enter all information. A few school districts started using the system in 2005 and since then more school districts have migrated to BCESIS and abandoned the software they previously used to track student data. Teacher frustration reached full boil last September when 130 independent schools and all but four of B.C.’s 60 school districts had adopted BCESIS. The volume exceeded the system’s
capabilities. Teachers fear that the situation will be as bad, if not worse, this year. Abbott was unavailable to speak about BCESIS throughout the month of August, but his government was concerned enough about BCESIS problems to contract Gartner in early 2011 to produce a report advising it on whether to continue using the system and to educate officials on available options. Ontario’s Administrative Assistant Ltd. (AAL), which developed BCESIS more than a decade ago, ran into financial problems during the economic meltdown. Pearson bought AAL last November and was unimpressed enough with AAL’s enterprise student information system (ESIS) that Pearson tried immediately to get all ESIS clients, including the B.C. government, to shift to newer Pearson software. “[We] presented them with an offer for free licences and
discounted services to migrate from the antiquated ESIS to our go-for ward solution, PowerSchool,” said spokesman Adam Gaber. PowerSchool supports 10 million students in the U.S. and is a leading student-information system that Gaber believes is better technology with more robust features. “We are in ongoing discussions with the [B.C. Ministry of Education] about the process of moving to a new student-information system and continue to advocate moving to PowerSchool as quickly as possible to support the ministry in their goals and serve the students, educators and their families with the information they need to power student achievement in the province.” System options North Vancouver software developer Bruce Allen said B.C. needs to move from BCESIS to what he calls a “distributed” system, where users no longer have
– Bruce Allen, owner, Harts Systems Ltd.
same new system for all school districts so it could eliminate duplication of work each time a student changed districts. The 2003 RFP stipulated a “centralized” system so that all information would be stored in one place, which Allen said is a ridiculous requirement. “The reason they wanted to be centralized is so they would have this great big computer system,” Allen said. “It’s the same reason that a 16-year-old wants a big Ford Mustang. There’s nothing intellectual about this. If you’ve got a big, powerful computer system, it’s a sign that you’re big and powerful.” Allen worked for the B.C. government in the 1970s when his task was to put education ministry data onto a single computer. “We were not capable of doing it because it can’t be done,” Allen said. “That’s demonstrated by the failure of BCESIS. It was a completely impractical solution to the problem.”
News
September 6–12, 2011 Business in Vancouver
5
full disclosure
Number of B.C. students in public and independent schools 700,000 690,000 680,000 670,000 660,000 650,000 640,000 630,000 620,000
2000/01
2001/02
2002/03
2003/04
2004/05
2005/06
2006/07
2007/08
2008/09
2009/10
2010/11
Source: Ministry of Education
Larry Kuehn, the British Columbia Teachers’ Federation’s (BCTF) director of research and technology division, agrees. He said the B.C. government’s options are: •keep BCESIS and contract a business to maintain the system and fix bugs; •keep BCESIS and hire workers in-house to maintain the system; •buy a new system such as Pearson’s PowerSchool; or •hire developers to create
custom software for B.C.’s school system. He predicted t hat Gartner consultants will recommend that the government adopt a system such as Pearson’s PowerSchool, which he said can handle only 70,000 students at a time. Gaber could not confirm if Pearson would be able to modify PowerSchool to make it a distributed system capable of handling 650,000 students, as Kuehn wants.
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“Creating a new system in-house is less preferable [than going with PowerSchool],” Kuehn said. “It’s just too expensive if you’re doing it on a one-off basis. When a company like Pearson builds their system, all the clients pay a part of it. When you make your own system, you pay the whole shot.” System supporters Sue Myers, who has been an administrator at various
North Vancouver schools, is one of the few people BIV interviewed who applauded BCESIS and would be disappointed if the province migrates away from it. She said BCESIS is better than previous software that the North Vancouver School District used. “It makes it so much easier to get data about students who are transferred into the district. Parents or people in other school districts used to take weeks
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to send the information we need.” Myers pointed out that BCESIS includes information on which people are authorized to pick students up after school, thereby boosting student safety. She added that student photos are in the system, which makes it easier for substitute teachers and others to identify students. The Ministry of Education is also able, in real time, to find out what trends are developing in areas ranging from allergies to native language. The government can then allot more money to English as a second language (ESL)
training in targeted areas or adopt safety-training sessions to protect students from likely dangers. It can also track exam results across the province and across years to identify poor performance early and take steps to improve learning. “Everything is at your fingertips,” Myers said. “The BCTF is exaggerating about how many teachers get kicked off the system. I advise teachers to log in at 8:30 a.m. when they arrive instead of at 9 a.m. when kids come into the classroom. Then, they should have no problems.” • gkorstrom@biv.com
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News
September 6–12, 2011 Business in Vancouver
B.C. business groups push for PST overhaul
PCT: Scrap carbon trust, MLA says
W
ith the harmonized sales tax (HST) headed for the scrap heap by March 31, 2013, B.C. business groups are lobbying for a revamped provincial sales tax (PST) to lessen the anticipated economic sting of reverting to B.C.’s old tax regime. PST elements that are being scrutinized for possible improvements include: •complex exemptions; •complex paperwork; •a costly collection system; •the tax’s negative impact on companies considering moving to or expanding operations in B.C.; and •how it puts manufacturing, film and other B.C. sectors at a disadvantage compared with their counterparts in Canadian jurisdictions that have the HST. But few concrete “fixes” to the PST have thus far been proposed. “I don’t think we have a vision specifically that could be translated into a document at this stage,” said John Winter, president and CEO of the BC Chamber of Commerce (BCCC). “What we’re really saying is that, in the absence of the benefits that were available to business through harmonization, ways must be found to create the kinds of competitive advantage or to aid the competitive advantage that HST was creating.” Peter Leitch, co-chairman of the Smart Tax Alliance and chairman of the Motion Picture Production Industry Association of B.C., called it “early days” for discussions on improving the PST. “It would be nice if it was closer to a value-added type tax system that the province managed itself.” He added that some voters who opposed the HST were objecting to
Jordan Bateman, B.C. director for the Canadian Taxpayers Federation: PST’s confusing and politically-motivated exemptions need to be revisited after the tax is re-instated “[because] these are the things that drive businesses crazy”
Ottawa managing B.C.’s taxes. Craig Williams, vice-president of national programs for Canadian Manufacturers & Exporters, said he’s like to see the input costs from the PST reduced so that B.C. doesn’t lose its 200,000 direct manufacturing jobs to more favourable tax jurisdictions. “We’ve got to do something or we’ll just move these high-value, mortgage-paying jobs out of the jurisdiction and we can all just be service providers and hospitality industry [employees].” One change being proposed targets the PST collection system. Jordan Bateman, B.C. director for the Canadian Taxpayers Federation (CFA), said the organization wants B.C. to negotiate with Ottawa to outsource PST collection to the Canada Revenue Agency. “We’re talking about hiring 350 tax collectors [in B.C.], we’re talking about a $35 million-a-year office to run,” he said. “Even if Ottawa can do it for $25 million, we’re saving $10
million.” Failing that, he said, the CFA wants PST paperwork streamlined so that it more closely resembles the more user-friendly GST remittance forms. “The big thing that bothers smallbusiness owners is having to fill out two sets of forms and two totally different sets of rules.” Bateman said that after the tax transition, British Columbians need to tackle PST’s confusing exemptions. “If you talk to a printing company or a design house, for example, they’ll tell you that if they provide a CD-ROM of images there’s a certain tax scheme, if they present it with printed-out proofs, there’s a different one, if they go and print the material themselves there’s another set,” he said. “These are the things that drive businesses crazy.” Premier Christy Clark has stated that the PST will be re-instated with the exemptions that existed prior to the HST. But opinions differ on when those reforms need to be implemented. Leitch, for example, is advocating that reforms occur before the tax gets re-implemented. “It’s very difficult to keep adopting changes in tax policy,” he said. “I’d rather get it right than rush back and get it wrong.” But for organizations such as the BCCC, PST reform needs to take a backseat to expediting the tax-transition timeline. During the transition, Winter said, consumers will hold off on large purchases, and that will hurt businesses such as car dealers, sellers of major appliances, travel agents and home builders. He said reducing that transition timeline – “hopefully” to 12 months – is the BCCC’s top priority. • jwagler@biv.com
Richard Lam
Companies want an improved PST to help soften the blow of losing the HST, but the BCCC says a higher priority is accelerating the tax transition timeline By Jenny Wagler
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Caribou North MLA Bob Simpson: company initiatives would have taken place without the PCT incentives
Surrey School Board boss Laurae McNally: “we need a made-in-Surrey [carbon offset] solution”
from B.C.’s, 1
the B.C. government provided $75 million over three years for public organizations under the public sector energy conservation agreement fund to invest in upgrades that would improve energy efficiency. That money has been spent, and Lake suggested some of the PCT offsets now going to the private sector might be returned to the public sector. This year, the B.C. government claimed it had achieved carbon neutrality by reducing greenhouse gases by 730,000 tonnes in 2010 – a claim described as “bogus” by noted sustainable energy expert Mark Jaccard. While some of the projects the PCT has funded might have resulted in a net reduction in GHGs, others haven’t. Switching from burning coal to burning demolition or wood waste, for example, is counted as a reduction of carbon emissions, even though the actual amount of carbon going into the atmosphere remains the same. Simpson said that even if the province can achieve true carbon neutrality, it would account for only 1% of the greenhouse gas emissions produced in B.C. He therefore thinks it’s a sham for the government to be funnelling public money to the private sector, especially when he can find no evidence that the incentives are needed. “I’ve examined every project of the Pacific Carbon trust. I cannot find one project that would not have occurred, or had not already occurred, without the Pacific Carbon Trust money.” •
Surrey School Board chairwoman Laurae McNally said reducing greenhouse gas (GHG) emissions is “a noble goal,” but points out that her district is caught in a dilemma. It’s growing rapidly, but receiving no capital funding to build newer, more energy-efficient schools, and then being fined for not reducing its energy consumption. “We do everything that we can, but we’re hooped here, when we’re growing so rapidly,” McNally said. “We need a made-in-Surrey solution for the carbon offset situation.” To date, public institutions have paid $18 million into the PCT, which has been doling the money out to large emitters for carbon-reduction initiatives that independent MLA Bob Simpson (Caribou North) said would have taken place without the PCT incentives. Simpson calculates the PCT will have retained earnings of $30 million by 2013. He believes the province’s carbon-neutral policy should be scrapped and the public-sector money it has collected be used to fund initiatives that might really help reduce greenhouse gas emissions. “It doesn’t advance the cause of GHG reduction at all,” Simpson said. Lake ruled out scrapping either the PCT or the government’s carbon-neutral policy. “But we do recognize that there’s got to be some way that we can assist these public-sector organizations to achieve energy efficiencies and reduce their carbon footprint.” As part of its climate action plan,
nbennett@biv.com twitter: nbennett_biv
8
Finance
Daily business news at www.biv.com September 6–12, 2011
BY THE NUMBERS
Losses are shown in brackets. Graph information by Stockwatch.
Fireswirl Technologies Inc. (TSX-V:FSW) Fired up: The e-commerce company saw its revenue increase in the second quarter to $5m thanks to an increase in merchandise revenue. Operating expenses, meanwhile, were up 15% to $5.5m in the second quarter compared with the same period last year, mostly related to an increase in the Earnings per share cost of sales-related expenses. Fireswirl finished the quarter 6 months 2011 with no long term debt and $665k in cash and investments.
$0.60
Loonie lumps: The data-collection company said a stronger Canadian dollar negatively impacted revenue in its third quarter. Still, the company increased its gross margin 3% to $534k in the third quarter even though it posted higher expenses and a net loss for the period of $376k, Earnings per share representing a 19% increase. The company finished the 9 months 2011 quarter with $1.8m in cash.
$0.20
▲5% ($598k) ($0.01) Revenue: $5m 6 months 2011
Net income 6 months 2011
$0.50 $0.40 $0.30 $0.20 $0.10 $0.00
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Epic Data International Inc. (TSX-V:EKD)
▼3% ($376k) ($0.02) Revenue: $1m 9 months 2011
Net income 9 months 2011
$0.15 $0.10 $0.05 $0.00
Neovasc Inc. (TSX-V:NVC)
▼8% Revenue: $879k 6 months 2011
Tissue trouble: Novasc, manufacturer of vascular and surgical medical devices, posted a 69% drop in product sales during the second quarter because of a one-time interruption of shipments due to new tissue product specifications. Still, the company saw its revenue for the Earnings per share six month period increase 1% to $2m, and its revenues from 6 months 2011 consulting services were up 50% in the second quarter.
($1m) ($0.02) Net income 6 months 2011
$1.50 $1.20 $0.90 $0.60 $0.30 $0.00
True wealth
Thane Stenner Wealthy investors are trimming exposure to Canadian equities
I
s it time for investors to reduce their exposure to Canadian equities? At the risk of sounding like a disapproving parent, for some investors the answer may be yes. If you’re a regular reader of this newspaper, chances are you’ve read some columnist (either me or someone else) preach the virtues of diversification. The reason is simple: diversification is the easiest, most effective strategy for protecting your portfolio. However, a survey conducted in February by Toronto-based Environics Research demonstrates that many Canadians don’t like to venture beyond this country’s borders when it comes to their investments. Among 1,000 “affluent individuals” (those with more than $250,000 in investable assets), the average respondent replied that 64% of their family’s equity portfolio was
allocated to Canada. The typical respondent planned to lower the number by a measly 2% over the next year. No only do these actions conflict with the usual advice about diversification, they also run contrary to what high-net-worth individuals (those with $1 million or more in investable assets) have been doing over the past several months. Based on discussions with high-net-worth individuals and with adviser colleagues, I would say “home country bias” is disappearing rapidly. I estimate the portfolio of the average high-networth individual I know is now allocated perhaps 40% to 50% to Canadian equities, with plans to reduce the number even further in the months to come. Is there a lesson here? I believe there is. There’s a big difference
ech
Infrastructure Technology Summit
between affluent and high-networth individuals, and it has a lot more to do with attitude than net worth. The high-net-worth crowd has already hit its financial home runs; while growth is still important to it, preservation of wealth is its primary concern. Wealthy investors have a deeper understanding of
“Home country bias” is disappearing rapidly the cyclical nature of business and stock markets. As a rule, they know good times don’t last forever; they realize there are times in the cycle to lock in profits. All this leads to a keener awareness of the importance of diversification. Before anybody accuses me of Canada-bashing, let me say I
understand the rationale for overweighting Canadian equities. Our stock market has had an extraordinary run over the past several years. Our economy is in better shape than that of many other countries. Our financial sector came through the recession relatively unscathed, and other sectors (energy and agriculture) have long-term tailwinds behind them. But allocating 64% of an equity portfolio to a single market is an astonishing level of concentration. This is particularly true when one considers how highly concentrated Canada’s equity market already is: energy, materials and financials make up the bulk of the market cap. These people are piling concentration upon concentration, and accepting a tremendous amount of risk. Is there more upside in Canada?
Yes, absolutely. But the wealthy are learning where there are opportunities to diversify, find value and reduce risk. If you’ve had 64% of your portfolio in Canadian equities over the past two to three years, you’ve probably done very well. But it’s time for an asset-allocation decision. The wealthy are beginning to take some “Canada” off the table. Perhaps it’s time for you to consider doing the same. • Thane Stenner (thane.stenner@ richardsongmp.com) is the founder of Stenner Investment Partners within Richardson GMP Ltd. He is also managing director for Tiger 21 Canada (www.tiger21.com/canada) and the author of True Wealth: An Expert Guide for High-Net-Worth Individuals. His column appears every two weeks.
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finance
September 6–12, 2011 Business in Vancouver
Corporate Earnings drop
9
Insider Trading
2011 profits down across the board in Q2
▼4.9% ▼24.1% ▼8.3% ▼7.9% Q2 profits (overall)
Q2 profits (coal and petroleum products )
Q2 profits (manufacturing)
Q2 profits (financial sector)
Corporations in Canada posted operating profits of $64 billion (seasonally adjusted) in the second quarter of 2011, a decrease of 4.9% over the first quarter. A 24.1% drop in profits for manufacturers of petroleum and coal products contributed most substantially to a decline in the manufacturing industry (-8.3%). Meanwhile, both retail and wholesale trade lost ground. Higher actuarial liabilities for life insurers pushed overall profits in the financial sector down 7.9%.
More traffic jams in Toronto than in Vancouver In 2010, 25% of Vancouver workers were caught in traffic jams every day of the week, compared to 26% of their counterparts in Montreal and 29% in Toronto.
-BC Stats Infoline, Issue 11-34, August 26
Canada’s international travel deficit rises Fuelled by increased spending by Canadians travelling in other countries, Canada’s international travel deficit reached $3.9 billion in the second quarter of 2011 (up 3.1%, seasonally adjusted, from the first quarter).
-BC Stats Infoline, Issue 11-01, January 7
Canadian retail to improve for second half of 2011 We’re still a little optimistic for the balance of 2011: the underlying economy is still in relatively good shape despite some recent setbacks; the food and drug sector is likely to return to more normal growth in the second half; the housing market is still “okay” which should help sales in home-goods categories; and gasoline prices are stabilizing and this could free up some consumer dollars. But much of the damage to retail sales has already been done in Q1 and Q2.
-KubasPrimedia: Retail Sales Outlook Canada Q3 2011
The following is a list of the largest stock trades made by corporate executives, directors and other company insiders of B.C.’s public companies filed by the week ending August 25. The information comes from a compilation of required reports filed with the BC Securities Commission within five calendar days of a change in an insider’s holdings. Insider: Stanley Olson Company: Goldcorp Inc. (TSX:G) Shares owned: 2,296 Trade date: August 19, 22 Trade total: $2,038,753 Trade: Sale of 131,667 shares at prices ranging from $51 to $53.44 per share following the acquisition of 40,000 shares for $30.55 per share, 45,000 shares for $39.77 per share, 30,000 shares for $35.62 per share and 16,667 shares for $44.50 per share through the exercise of options. Insider: Lindsay Hall, CFO Company: Goldcorp Inc. (TSX:G) Shares owned: 91,554
Trade date: August 22 Trade total: $1,430,400 (net) Trade: Sale of 80,000 shares for $53.50 per share following the acquisition of 80,000 shares for $35.62 per share through the exercise of options. Insider: Jim Pattison, director Company: Canfor Corp. (TSX:CFP) Shares owned: 27,284,850 Trade date: August 18, 19, 23 Trade total: $1,400,360 Trade: Purchase of 102,000 shares over three days at prices ranging from $9.42 and $9.56 per share. Insider: Ramon Davila, COO Company: First Majestic Silver Corp. (TSX:FR) Shares owned: 269,540 Trade date: August 18, 19, 22 Trade total: $1,369,800 (net) Trade: Sale of 70,000 shares at prices ranging from $20.70 to $22 per share following the acquisition of 30,000 shares for $4.32 per share through the exercise of options.
senior vice-president, human resources Company: Goldcorp Inc. (TSX:G) Shares owned: 3,047 Trade date: August 18, 19, 22 Trade total: $1,337,144 (net) Trade: Sale of 92,111 shares at prices ranging from $50.75 to $52.02 per share following the purchase of 30,000 shares for $39.77 per share, 30,000 shares for $35.62 per share and 26,667 shares for $44.50 per share through the exercise of options. Insider: Luis Dario Ganoza Durant, CFO Company: Fortuna Silver Mines Inc. (TSX: Shares owned: 0 Trade date: August 15, 16, 17 Trade total: $717,200 (net) Trade: Sale of 200,000 shares at prices ranging from $5.50 to $5.57 per share following the acquisition of 100,000 shares for $1.66 per share and 100,000 shares for $2.22 per share through the exercise of options. Insider: Robert Leclerc, chairman
Insider: Gerard Atkinson,
Company: Minefinders Corporation Ltd. (TSX:MFL) Shares owned: 180,000 Trade date: August 23 Trade total: $481,175 Trade: Sale of 29,074 shares at US$16.55 per share. Insider: Rohan Hazelton, vicepresident, finance Company: Goldcorp Inc. (TSX:G) Shares owned: 2,168 Trade date: August 19, 22 Trade total: $414,000 (net) Trade: Sale of 25,000 shares at prices ranging from $51 to $52.95 per share following the acquisition of 5,000 shares for $35,62 per share, 20,000 shares for $35.62 per share through the exercise of options. Insider: Carl Icahn, investor Company: Lions Gate Entertainment Corp. (NYSE:LGF) Shares owned: 24,706,258 Trade date: August 16, 18 Trade total: $377,201 Trade: Purchase of 53,963 shares over two days at prices ranging from US$6.9864 to US$7.003 per share. rchu@biv.com
15th Anniversary Celebration
15 Brilliant Years and Counting . . . The honour of your presence is requested for the the 15th Anniversary of the founding of the Professional Women’s netWork. Come celebrate our organization’s 15 years of growth and expansion, applaud the successes of our members, and pay special tribute to those gems in our business community who have contributed significantly to the advancement of women in business. Date Thursday, September 29, 2011 time 5:00 pm - 8:00 pm loCation Fairmont Waterfront Hotel tiCket PriCe $75.00 rsVP To register, please email hrenfrew@fasken.com wth your full name and email address, by Friday, September 16 to secure your spot. PaYment metHoD Please make cheques payable to the Professional Women’s Network and send to: attention: Hayley renfrew c/o fasken martineau 2900-550 Burrard st. Vancouver, BC, V6C 0a3 note This is a ticketed event. Tickets will be emailed once payment is received. special thanks to our Generous supporters:
10
Technology
Daily business news at www.biv.com September 6–12, 2011
Billion dollar babies Vancouver is fertile ground for high-tech startups, and two new accelerator programs are building nurseries to help them grow By Nelson Bennett
W
hen a new technology fizzles on the launch pad, it might be because that the idea, though sound, was ahead of its time. Or maybe it was right on time but had too much competition. More often than not, though, it fails because of a lack of seed money and guidance in the critical early stages of a company. “A lot of good ideas die on the vine,” said Carol Leacy, program director for entrepreneurship@UBC Seed Accelerator Fund, which will provide up to $100,000 in seed money for high-tech startups chosen to participate in the program. It’s just the latest in a number of accelerators and incubators to spring up around – and in support of – Vancouver’s growing Internet and high-tech sector. Three startups will be selected this fall to make a pitch to venture capitalists and will be eligible for between $25,000 and $100,000 in investment from a $10 million BC Innovation Council fund. The deadline for the UBC Seed Accelerator Fund applications is September 9. UBC students, faculty and alumni are eligible to apply. The program – an initiative of the Sauder School of Business – also offers startups office space for six to 12 months. Wavefront is another Vancouver accelerator – dedicated to helping nascent wireless companies get to the commercial stage – and the Vancouver chapter of the Entrepreneur’s Organization has an accelerator program for companies that are already generating $250,000 in annual revenue get past the $1 million hump. The newest accelerator on the block is GrowLab. It got a very public launch at the August 17 to 19 Grow 2011 conference held at the Vancouver Convention Centre. The annual conference is sponsored by DealmakerMedia. Its founder, Debbie Landa, also founded GrowLab. Born in Saskatoon, Landa has lived in San Francisco for two decades. The idea behind GrowLab is to put five startups through a threemonth boot camp for techpreneurs before shipping them off to Silicon Valley for a month to fight for venture capital. While the funding they receive is important, Landa said the networking and mentoring they get from successful high-tech executives is equally vital. “If you haven’t done it three or four times, you haven’t made all the mistakes,” Landa said. “Just because you have a good idea, does
Debbie Landa, a Canadian living in San Francisco: building links between Vancouver and Silicon Valley with an accelerator program called GrowLab
that mean you know how to go out and build it?” The Grow 2011 conference drew 600 people, including startups from across Canada, Silicon Valley venture capitalists and dozens of high-tech executives from companies like Google, LinkedIn and Research In Motion. “It’s absolutely heating up here,” Landa said of Vancouver’s hightech sector. “I can’t believe the level
of enthusiasm and excitement that is happening in this town and the amount of interest we are getting from the Valley.” Modelled on San Francisco’s Y Combinator, which has helped foster numerous high-tech companies, GrowLab is designed to help startups with funding and mentoring. There will be two programs a year, running four months each. The first is just getting underway, with two startups from Vancouver, one from Toronto, one from Philadelphia and one from Bucharest chosen from more than 300 applicants. Participants get between $20,000 and $25,000 each and spend three months in Vancouver and one month in San Francisco. During that time, they get help with issues like product development, marketing, financing and legal advice from established hightech entrepreneurs. At the end of the program, they’ll receive $150,000, which is provided by the Business Development Bank of Canada (BDBC). “We want to make sure that the
Networking: Matygo co-founders Paul Matygo (second from left) and Joe Gaudet (second from right) at the Grow2011 conference
companies have adequate runway and have some bridge financing to get their companies moved to the next stage,” said GrowLab executive director Michael Tippett. The two Vancouver startups accepted into the GrowLab incubator program are Matygo, which develops software used in post-secondary institutions, and Placeling, a website that will allow people to share experiences about their favourite places in the world to visit. Starting an Internet-based company is relatively easy; turning it into the next YouTube is an entirely different story. “Even though, to the outside observer it may look like web startups happen overnight, they really don’t,” said Matygo co-founder Paul Matygo. “The money is essential so we can do the experimentation.” Even those startups that didn’t
make it into the GrowLab accelerator program got some valuable exposure during the recent conference. Several made important connections with venture capitalists, and there was at least one acquisition. Overinteractive Media Inc. (dimeRocker) bought a startup called Mentionmapp at the conference, and Tiipz.com got some important exposure when it was selected to make a pitch to a panel of venture capitalists. “This Grow conference has just catapulted us forward,” said Tiipz founder Jason Cyr. “One of the guys on the panel was from Google Ventures. The first thing out of his mouth was, ‘Wow, I really like this idea.’ I turned to the audience and said, ‘Please, somebody tweet that.’” • nbennett@biv.com
High-Tech Office
Alan Zisman A host of August technology milestones worth celebrating
H
opefully you already know that it’s important to remember anniversaries. If not, don’t worry, your spouse will make sure you realize how important. The High-Tech Office had several important anniversaries in August. Among them: the 30th anniversary of the release of the IBM PC, officially launched on August 12, 1981. The computer otherwise known as the IBM Personal Computer model 5150 wasn’t the first personal computer – microcomputers from companies like Apple, Commodore and Atari had been on the market for several years. It wasn’t even the first PC aimed at business users – personal computers running spreadsheets like VisiCalc and word processors like WordStar had been increasingly finding their way into offices – though typically without support from IT departments. A microcomputer from IBM meant respectability and the blessing of corporate IT. In order to get to market quickly, the 5150’s team broke with IBM tradition and built it, to a large extent, using off-the-shelf components and
standards: a processor from Intel, for instance. And they licensed an operating system from a small company, Microsoft. One result of these decisions: soon, other companies were able to build IBM-clones – computers that ran the same software as IBM’s.
By 2008 the number of personal computers descended from that 1981 IBM model passed one billion By 2008 the number of personal computers descended from that 1981 IBM model passed one billion. And these have become increasingly affordable and generic. As prices dropped, so did profitability. In 2005, IBM got out of the personal computer business, selling its PC Company Division to China’s Lenovo. And just this August, HP – the top seller of personal computers worldwide and creator of a personal computer prior to IBM’s model - announced that it was similarly
planning to spin off its Personal Systems Group. The growing use of devices like smartphones and tablets has resulted in suggestions that we’re moving into a Post-PC era; nevertheless, the billion-plus descendants of 1981’s IBM Personal Computer 5150 aren’t going away. You probably have one of those personal computers on your desk or in your laptop bag right now. You might think that you’re less connected to open source operating system Linux, which celebrated its 20th anniversary with LinuxCon, held August 17-19 in Vancouver. Only an estimated 1% of personal computer users are using one of the many varieties of Linux as their desktop operating system. At his keynote address, Jim Zemlin, Linux Foundation executive director, admitted to having predicted that 2007 would be “the year of the Linux desktop.” And 2008. And 2009. Would you believe 2012? Despite that, he said we all owe more to Linux than many of us may realize. For instance, behind the scenes, it’s used to power the majority of web servers and supercomputers. It also powers projects ranging from anti-missile missiles to the New York Stock Exchange. Got an Android smartphone in your purse or pocket? Then you’re running Linux.
Jim Whitehurst, CEO of Linux distributor Red Hat, noted that like other open source software, Linux is free – both in price and in the freedom to copy and modify the underlying code. And that, he proclaimed, means that companies – both existing enterprises and startups – can use it for innovative projects that might otherwise be too expensive to undertake. The result: a Stanford University experiment, Backrub.Stanford. edu, could grow to become Google. Facebook, Amazon and more all have initially been built at lower cost, using Linux servers and other opensource tools – and have been able to continue to use it as their infrastructure expands. He noted “if you can’t innovate cheaply, the amount of innovation stalls”; Linux and opensource software in general allow a “business model of throwing it out and making it free and scalable.” So when you search on Google, buy something on Amazon or eBay, all from your desktop or laptop computer, you’re using the result of these August anniversaries. (And August is also the month of my own wedding anniversary. I remembered!) • Alan Zisman (www.zisman.ca) is a Vancouver educator and computer specialist. His column appears weekly.
Sports
September 6–12, 2011 Business in Vancouver
Golden Goals
Marketplace
Bob Mackin KPMG gets the Wright stuff; Olympic marketer opens his own shop
T
erry Wright, who had arguably the heaviest workload at VANOC, officially joined KPMG in mid-August after months of speculation. Wright was the executive vice-president who oversaw transportation, accommodation and security and is now the Vancouver-based sport and global events senior adviser within KPMG’s global infrastructure practice. He stayed on in a part-time role with VANOC, post-Games, and was part of the group that attended July’s International Olympic Committee session in Durban, South Africa. Wright’s biggest headache might have been the contentious contract for buses with Gameday Management of Florida. That finally went to a mediator last November. Bus systems that were budgeted at $52.37 million in 2007 ended up costing VANOC $92.6 million, according to the post-Games financial report, which was released December 17. Gameday boss Tony Vitrano became the transport lead for the London 2012 Olympic committee. Wright and CEO John Furlong were notable omissions from the IOC’s August-struck co-ordination commission for the PyeongChang 2018 Winter Olympics. Usually, a top-ranking executive from the most recently completed Games joins the panel. The checkup squad for Vancouver 2010 included Salt Lake 2002 chief operating officer Fraser Bullock. Sochi 2014’s includes Turin 2006 chairman Cesare Vaciago. Last Wednesday’s resignation of Canadian Olympic Committee (COC) CEO Jean Dupre for “personal reasons” came as a shocker. The former head of Speedskating Canada was on the job for just 18 months. The COC is heading into an important four-year cycle that includes this fall’s Pan American Games in Guadalajara, next summer’s London Olympics and the 2015 Pan Ams in Toronto. Chris Overholt succeeded Dupre, handing his chief marketing officer job to Derek Kent. Keeping Score Garnet Nelson is taking a shot with Score Marketing. The managing partner for Fusion Sponsorship and Events and Altius Sport Marketing since 2004 will maintain a senior consultancy role with Cossette in Vancouver. “It’s been on the burner for a while,” Nelson
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said, “and I’m a pretty entrepreneurial guy and strategic marketer so I decided to branch out.” Nelson was the marketing manager for Vancouver’s Olympic bid in 2003 and joined the Cossette companies to assist in sponsor activation before and during the 2010 Winter Olympics. With Score, he’ll be working with brands and properties and on sponsorship valuation. Companies are under more pressure to spend less, spend wisely and gauge the results, he said. Nelson remains the sponsorship agent for BC Place Stadium, where he was involved in the deal that gave Budweiser the pouring rights and shared sponsorship of the BC Lions and Vancouver Whitecaps. Stadium strife Whether BC Place Stadium reopens as scheduled on September 30 could be determined September 10. BC Government and Service Employees’ Union workers are expected to either agree to a new contract or vote on striking. Mediated talks continue Wednesday and Thursday. If the government won’t give teachers a raise, then stadium workers can’t expect any better. They’ll be seeking compensation somewhere else in a new contract, especially with the knowledge that BC Pavilion Corp. (PavCo) CEO Warren Buckley was paid $563,707 (including $100,000 bonus) in 2010-11 and stadium general manager Howard Crosley $254,372 (including $47,730 bonus). Big bike event RBC Gran Fondo Whistler just got bigger. The second annual Vancouver-to-Whistler bike race, organized by Kevin Thomson and Neil McKinnon’s TOIT Events, now includes the September 8-9 VeloSpoke Bike Expo at the Vancouver Convention Centre. It’s produced in part by PavCo. Alex Stieda, the first North American to win a Tour de France stage and wear the famed yellow jersey, will be among the speakers. The race is scheduled to begin at 7 a.m. in downtown Vancouver on September 10 and includes a 54-40 concert at Whistler Olympic Plaza. GranFondo launched a Kelowna event last July and is expanding to Niagara Falls, Ontario, next May. •
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Real estate
Daily business news at www.biv.com September 6–12, 2011
real estate roundup
Peter Mitham Gay men among Vancouver’s least favoured tenants; real estate investment sales stall in 2011’s first half Man-sized problem Trying to find a room to rent is harrowing. With the average age of purpose-built rental units in Vancouver approaching 60 years old, and Canada Mortgage and Housing Corp. reporting regional vacancies running between 2.1% and 3.1% (a slight improvement over the 2010 rate), prospective renters face significant pressure. Guys are in a particularly hard spot. This columnist was told in his own career as a tenant that male tenants are tougher on properties than women. Given a choice between two single candidates, landlords prefer women. A new study by UBC sociolog ist s Nat ha nael Lauster and Adam Easterbrook adds depth to this experience. The duo, noting the bias against men generally, notes that gay men and single fathers are at greater risk of discrimination by landlords. Single mothers
are often better risks than singles. “They’re not partying on Friday and Saturday nights. They’re really happy to pay their rents on time and have a roof over their heads.” And speaking of ability to pay, Advent looks at rental histories and credit scores – “the evidence that says whether they’re going to be a good tenant or not.”
Lawyers first: McCarthy Tétrault LLP is the first tenant to sign on for space in the 400,000-squarefoot office tower Bentall Kennedy is planning to build at 745 Thurlow Street in Vancouver
also face discrimination, while lesbian couples face none. Wr it i ng i n t he c u rrent issue of the journal
Social Problems, Lauster and Easterbrook state that overt discrimination is rare but that gay couples are less likely to receive responses
when inquiring about ads for places outside the West End than renters in other fa mi ly situat ions. (T he study examined responses to inquiries for suites listed on Craigslist and Kijiji at $1,700 and less a month; the study itself is available here: bit.ly/r31n05.) “Same-sex male couples … were about 24% less likely to receive a positive response from inquiries than heterosexual couples in this study,” Lauster and Easterbrook wrote. Same-sex female couples didn’t experience the same phenomenon, which the authors suggest ref lects “landlord perceptions that women make better tenants overall.” The study’s findings surprised Michelle Farina, d irec tor a nd ma nag i ng broker of Advent Property Management Services in Vancouver. “I really didn’t think people were doing that anymore,” she said of her first response to the study. Ad ve nt do e s n’t d i s criminate, she said, and answers all inquiries unless they’re significantly out of line with the company’s listings, which start at $1,400 a month. Farina noted that it’s difficult to learn about a potential tenant if an inquiry isn’t returned. She added that gay men seem to take good care of their suites, while single parents, if they’re employed,
Investment down Avison Young reports that investment sales in B.C. in 2011’s first six months are well below those in 2010, thanks in part to few willing vendors. A total of 36 deals worth $5 million or more occurred in the first six months of this year, down from 45 in 2010’s first half. While financing conditions favour buyers, vendors simply aren’t willing to let go of assets in a market offering few competitive alternatives for reinvesting the proceeds. “There’s just a huge reluctance to sell,” said Michael Gill, principal in Avison Young’s Vancouver
“They’re not partying on Friday and Saturday nights; they’re really happy to pay their rents on time and have a roof over their heads” – Michelle Farina, director and managing broker, Advent Property Management Services
office. “The replacement alternatives are very unattractive, and if you want to get back into real estate generally or acquire a property that’s comparable to what you just sold, you have to ask yourself why you would sell in the first place, because you can’t find anything to replace it.” While deals are still happening, Gill doesn’t expect the tally for 2011 to reach the 99 deals seen in 2010. “There are still going to be properties [sold] in the latter half of the year,” he said. “There will just not be as many trade as typically
do and they will be difficult to find.” Seconda r y ma rkets stand to see greater investment activity as investors seek deals at attractive prices and with greater potential returns. W hite Rock R EIT bought the Lansdowne Village mall in Kamloops for $40 million, for example, the largest retail transaction of the year. Gill expects more transactions of this sort in the second half of the year. CB Richard Ellis has the listings for Penticton Plaza and the Rona property at in Penticton, while Cushman & Wakefield Ltd. is marketing investment properties in Vernon and Williams Lake. Lawyered up McCarthy Tétrault LLP is the first tenant to sign on at the 400,000-square-foot office tower BC Investment Management Corp. and Bentall Kennedy LP plan for 745 Thurlow Street. The law firm will occupy the upper portion of the building, which will have 365,000 square feet of office space and 35,000 square feet of retail when it opens in 2015. Musson Cattell Mackey Partnership’s design for the tower offers progressively larger f loor plates from the third f loor up, starting at 15,000 square feet and running to 21,000 square feet. While smaller tenants are targeted with sleek, 8,000-square-foot f loor plates at Oxford Properties Group’s project at 1021 West Hastings Street, Bentall Kennedy executive vice-president Tony Astles believes there’s room for space catering to larger tenants, too. “This is a constrained market with few options for tenants to grow,” he said. “The floor plate at 745 [Thurlow] accommodates the average-sized tenant and the large tenants we have here.” T he d e s i g n re f le c t s Bentall’s experience at developments such as Broadway Tech Centre adjacent to Renfrew SkyTrain station and will seek LEED Gold certification when complete. • pmitham@telus.net
Advertising Feature 13
September 6–12, 2011 Business in Vancouver
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Creating a new generation of entrepreneurs and business leaders in B.C.
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B
ritish Columbia, quite literally, means business. According to the latest figures from BCStats, approximately 395,000 small businesses were operating in the province in 2009, accounting for over 1 million jobs or 57% of privatesector employment – the highest rate in the country. “Small business is responsible for 98% of all business in B.C; it is obviously a very large and solid economic factor for all of us,” confirms Jan Bell-Irving, president of Junior Achievement BC (JABC), a not-for-profit organization. “That is why it is so important to make sure that young people in this province receive the education they need in the areas that count in order to plant the seeds of transformational success now. ” But according to a new 2011 report prepared independently by the Boston Consulting Group (BCG) entitled Making An Impact, which measures Junior Achievement Canada’s role, impact and reach, “There is an absence of sufficient business and basic financial literacy skills education in Canada’s primary and secondary school systems.” Fortunately, JA has been committed to closing that gap since 1955, offering its highly engaging brand of educational programs in the areas of workreadiness, entrepreneurship and financial literacy to youth in elementary, middle and high schools across the country. “In Canada, Junior Achievement reaches over 230,000 students with over 1.4 million hours of instructional hours annually,” reveals BCG, which also “attributes $425 million per year in Canada to direct entrepreneurial activity by Achievers.” “Those are tangible numbers that show a staggeringly real impact, about which we can be very proud,” says Bell-Irving, adding that approximately 30,000 students are specifically benefiting from JABC on an annual basis. “Beyond this exciting, new data confirming to our donors, volunteers, parents, teachers and students that our efforts and investments are truly yielding terrific results, what we want to do is to reach out further, to an
Junior Achievement of BC (JABC) manager of marketing and communications Christopher Hindle (left) with Paradise Coffee owner Massimo Mandarino. According to Mandarino, a former Junior Achiever, JABC gave him some of the real-world business skills needed to become an entrepreneur. even more diverse group of students,” she says. “Our primary goal is to reach the kids who are experiencing the biggest gap in skill development, whether in urban cores or the rural heartland, from corner-to-corner of the province.” JABC’s current reach is impressive. Of the 1,092 programs delivered to students in B.C. during the 2010-11 school year, Bell-Irving says that over 50% were conducted outside of the Lower Mainland and Fraser Valley hubs. “Currently we are engaged in 49 of the 60 school districts provincewide,” she says. “At this point it is so important to both maintain and extend our reach, so that potentially all B.C. kids could benefit from our programs.” Among JABC’s unique offerings: Our Business World, which lets elementary students experience making big decisions in different areas of a small manufacturing operation and
Dollars with Sense, which gives junior high school students the personal money management skills that they need in order to make better economic decisions. These and other programs, says Bell-Irving, can only be coordinated and conducted with JABC’s roster of over 750 volunteer mentors – B.C. businesspeople dedicated to delivering the organization’s programs in provincial classrooms, and transforming the key concepts of its lessons into a message that empowers and inspires. “Our mentors are integral to the children’s success,” she says. “We put a mentor in front of youth and they can usually get through to them where their parents possibly cannot.” Who better to attest to this than a former Achiever? In 1995, Massimo Mandarino participated in JABC’s signature Company Program, which inspires high school students to understand the role of business
JABC’s current reach is impressive. Of the 1,092 programs delivered to students in B.C. during the 2010-11 school year, Bell-Irving says that over 50% were conducted outside of the Lower Mainland and Fraser Valley hubs. in our society by creating an enterprise of their own in collaboration with a professional business consultant. Back then, says Mandarino, who attended Centennial High School in Coquitlam, the 12-week program was known as Project Business, and his volunteer advisor was a man named Doug Morneau. “My classmates decided to run a coffee cart in the school,
and I remember Mr. Morneau explaining to us all aspects of how to promote the business, how to market it and how to finance it,” Mandarino recalls. “A lot of it was new to me, and it helped to hear it coming from someone who was actually running a real business in the real world.” When asked about his work as a volunteer mentor, Morneau, a seasoned businessman who heads up Rhino Marketing Inc. in Port Coquitlam, remembers, “The tough part was stepping back and letting the kids figure it out as they came across different obstacles.” Mandarino and his classmates, Morneau explains, “came up against some resistance to their idea from the school cafeteria, to which I said, ‘Hey, welcome to your first labour dispute.’ Then, when they discovered there was a problem with getting electricity to their cart, they came up with a plan to use propane instead. They were really thinking on their own and using some real-world business skills to solve problems.” Years later, mentor and student were serendipitously reunited at a charity event in Coquitlam. By then, Mandarino, who learned from Morneau that “business is a rocky road – you need persistence and common sense to get over the rough patches and not give up,” had launched his own micro-roasting company, Paradise Coffee. “I was surprised that he remembered me,” says Mandarino of the chance encounter. “I told him that I am self-employed and that he had really made an impression upon me as a business mentor, in high school. Now, he’s one of my clients.” “Massimo did a great job coming in and presenting his pitch to us, and Paradise is now the coffee supplier for our office,” Morneau confirms. “It is a real bonus for me that I was able to reconnect with one of the students from that classroom after so many years. It was great to work with the kids, to meet them and find out what their perception of business is, and now to see one of them successfully running their own business – it is extremely gratifying. It shows and proves to me that what JABC has done and continues to do in B.C. is really making a positive difference.” •
14
Small business
Daily business news at www.biv.com  September 6–12, 2011
Ladies who learn By Jennifer Harrison
I
t started last summer, when a co-worker of Kate Chambers asked the lifelong soccer enthusiast to take her and a group of seven other women from the office out on the field for a day of soccer instruction. The afternoon was well
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received by all, and Chambers and Miranda Liu, one of the participants, decided to leverage the event’s success into a small business. Broad Skills was created to offer ladies-only classes to teach women practical skills in a welcoming and relaxing environment. “It’s all about having fun
and getting out there,� said Liu. The courses range from the practical to the fun and social. The first incarnation was a sold-out scotch and whisky tasting. Other offerings in the pipeline include car maintenance, a poker night and barbecue basics. “All of our events are
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Kate Chambers, vice-president, operations and Miranda Liu, vice-president, business development, Broad Skills: “there is nothing that is going to be as broad – pardon the pun – as we are or offer such a wide array of classes. We are open to providing whatever the community wants us to do�
focused on one skill or subject,� said Chambers, “and these are things that women don’t always have access to or don’t generally gravitate toward.� For the scotch tasting, Broad Skills partnered with Legacy Liquor and House Wine. Chambers noted, “Our goal is to partner with local businesses and professionals, with the idea that they have the expertise that we don’t have in each field. They can provide the knowledge and we can provide them a class full of women who could potentially be new customers.� M ichaela Mor r is of House Wine said she has seen a greater trend toward women gathering together to learn something new. She and her partner Michelle Bouffard do private and public wine tastings for a variety of clients, including a recent women’s book club event. “There are a lot of women out there with disposable income who have that extra bit of money to spend on something like this, and they make the decision to take part in a workshop rather than get together at a restaurant,� said Morris. Partnering with local businesses can also reduce
overhead costs. Liu and Chambers, who work in marketing at Live Nation, said it can be difficult to balance their day jobs with their new venture. “But we know that we have to be respectful of our time at the office. You have
“Women want to make informed decisions� – Kelly Landry, founder, Financial Divas
to put in the effort outside hours. For example, today we had a meeting before coming to work to really hash some stuff out, and we’ll meet on the weekends and do our own stuff in the evenings whenever we can.� The company was launched in July after many late-night meetings and a lot of research, which found nothing similar being offered in Vancouver. The launch was accompanied by a massive social media blitz that included Twitter and Facebook. Chambers said, “With the social media aspect we want to create a conversation and let people approach us and say, ‘We’d love to learn about this,’ and then we can dig up a venue and an instructor
and make it happen.â€? For Financia l Divas founder Kelly Landry, these relationships are paramount. Her company, which offers money-related workshops for women, started just as organically as did Broad Skills. It grew from a preliminary course for wives of clients into a company providing financial knowledge to 40 communities throughout B.C. and Alberta. In each community, Financial Diva invites one financial adviser, one realtor, one mortgage broker and various businesswomen to sponsor its programs, and they have waitlists of women wanting to sponsor a workshop. She believes these women and their businesses have a strong desire to give back to the community and relies on them offering their time and expertise. “Women want to make informed decisions and the more information they have the better informed decisions they can make,â€? said Landry. “They’re seeking this information and if you can provide it in a way that’s fun and has a lot of positive energy and isn’t selling them something, they feel in control of the decisions that they have to make.â€? • jharrison@biv.com
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Family Business
September 6–12, 2011 Business in Vancouver
Building on sustainability basics Vancouver-based office-supply business emphasizes social and environmental responsibility
W
hen Don Mills started an office-supply company in Gastown in 1949, he delivered carbon copy paper, typewriter ribbon and accounting ledger books by streetcar. It was costs, not his concern his company’s carbon footprint, that drove him to deliver by public transit. Today, Mills Basics Office Productivity delivers its office supplies and office furniture with a fleet of 10 trucks, but the company hopes to retire two of them and replace them with an electric truck and a humanpowered cargo trike. The move is part of the family-owned business’ social and environmental responsibility policy. “To succeed in this business against Staples, we believe we have to be cutting-edge and we have to be doing something different,” explained Brad Mills, who took over as CEO when his father retired 10 years ago. “We call it telling a story. We have to make sure we have a good story to tell.” Another chapter of the Mills Basics story is the H.A.V.E. Café (hope, action, value and ethics) – a nonprofit social enterprise that helps people from Vancouver’s East Side get back on their feet by training them to become line cooks. Four years ago, when the former owners went bankrupt, Brad Mills and his sister, Janice Walsh, a chartered accountant, took it over and breathed new life into it. The Mills family subsidized the café for the first couple of years. It is now
self-sustaining through restaurant sales. In the past four years, close to 400 people have gone through the cafés line cook training program. Even before the Mills family took over the café, it had been providing jobs for people in transition from homelessness to fully employed under the BOB (Building Opportunities with Business) program. Brad Mills estimates 30 to 40 people have gotten jobs at Mills Basics through the program. Several still work for the company. “Some of their kids now work here,” Blair Mills, who is the company’s COO, added. “So there are families within the family.” Mills Basics has grown from a one-man office supply delivery company to the fourth largest office-supply company in Vancouver, with 100 employees. The company sells office furniture and school and office supplies. It also has a printing division. In addition to its headquarters and warehouse at 1111 Clark Drive, and its printing division and warehouse in Vancouver, Mills Basics also has locations in Penticton, Kelowna and Kamloops. Brad Mills went to work for his dad straight out of high school in 1976. He did everything from sweeping floors and driving delivery trucks to sales, and ended up taking over as CEO 10 years ago when his father, now 82, retired. Blair Mills took a more circuitous route. He worked briefly for the family business in the 1980s, and then took a degree in administrative management from BC
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Do you have multiple shareholders in the family? Do you have a succession plan in place? Do you have clarity between personal and business goals?
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15
Brad Mills (left) started working in his father’s office-supply business when he was 18, and his accountant brother, Blair, joined him three years ago
Institute of Technology. He worked for Thomson Newspapers as an accountant and three years ago he returned to the family business as COO.
“We live here, so we have a vested interest in our environment and our city” – Blair Mills, COO, Mills Basics
“I needed him,” Brad Mills said. “We were growing. I know his personality, his strengths and weaknesses. You can go and hire anybody, but it takes you six months or a year to figure out if it works. I knew that Blair was going to work.” The company has grown slowly and steadily over the years, from $6 million in sales annually 10 years ago to $18 million annually today. Blair Mills said working for a company that bears
your own family name is a constant incentive to do your best. “Your name attached to it and being part of a family is a real positive, because you really take more pride in your work and what you do. That’s our reputation.” When he retired 10 years ago, Don Mills did his own succession plan. The business is now owned by a family trust shared among siblings and parents. Since taking over as CEO, Brad Mills made it a point to have an environmental sustainability policy. In 2007, the company became carbon neutral when it started buying carbon offsets through Offsetters. But buying offsets doesn’t actually reduce carbon emissions, so the Mills brothers decided to buy an eStar electric cargo truck – which arrived three weeks ago – and installed an electric recharging station. Recently, the company was approached by a group
of young entrepreneurs who started Shift Urban Cargo, which uses human-powered cargo trikes to deliver up to 600 pounds worth of goods in congested urban centres. The Mills brothers decided it was just the kind of thing the business could get behind. The company’s sustainability policy paid dividends when it won the contract to provide office supplies for VANOC for the 2011 Winter Olympics. (VANOC’s purchasing policy included a sustainability component.) “We won the Olympic bid because of what we were doing for sustainability,” Brad Mills said. “We didn’t win it on price – let’s be honest.” But that’s not the only reason the company believes in doing its part for society and the environment, Blair Mills said. “We live here, so we have a vested interest in our environment and our city.” •
As the owner of a business with family dynamics in the mix, these questions are probably ones you’ve already asked yourself. After all, you want to ensure the success of the company for generations to come. But understanding the needs of all those with a stake in the family business is a huge challenge-making everyone happy even more so. It’s not impossible. Sometimes bringing in an outside resource can help you understand your expectations when it comes to the family, and how they relate to the overall objectives of the business. Grant Thornton advisers clearly understand the challenges you face as an owner of a family business. We are here to help facilitate open family communication and are trained to address your unique situation. Certified with the Canadian Association of Family Enterprise, our team has proven experience and skills to effectively facilitate discussions respecting the business issues that affect your family. Get to know us. www.GrantThornton.ca
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16
Business tool kit
Daily business news at www.biv.com September 6–12, 2011
>“It is impossible for a man to learn what he thinks he already knows”
Sales calls
Rob Malec
Epictetus
>“There is nothing so useless as doing efficiently that which should not be done at all”
How to ensure the success of your CRM implementation
Peter Drucker, writer and management consultant
>“I cannot give you the formula for success, but I can give you the formula for failure, which is: Try to please everybody” Herbert Swope, American journalist
>“The moral of the story is take tea when it’s poured, not when you have to have it.” Michael Jones, co-founder of Platinum Group Metals, on getting on with the job of raising money to avoid being caught in sudden money-market drops From a BIV news story (issue 1138; August 16-22)
>“The customer is a rear-view mirror, not a guide to the future”
How-To
George Colony, founder, Forrester Research
deliver outstanding customer service and build lasting customer relationships
C
ommissionaires BC has developed a new corporate-training course that goes beyond the basics of customer service. According to David Freeman, manager of training and development, the new Service Advantage for Customer Service Excellence course is about improving the experiences of customers so that they remain loyal to your business. “Our customer-service course teaches the basics and beyond,” said Freeman. Cu stomer ser v ice is “about meeting the needs of the customer, taking ownership of the situation, building a relationship and going the extra mile.” This is good for your company’s bottom line. “Customer-service employees are representatives of the company. They can encompass its philosophy, orientation and value proposition and present them to each customer in such a way that will make those customers return each time. The company that grabs service advantage and runs with it can sweep the marketplace in its sector.” Reliability The first component of outstanding customer service is reliability. According to Freeman, “Customers want and need a sense that the service that they receive will be consistently excellent. Reliability is a cornerstone of creating
long-term relationships. By acting in accordance with this want, you provide the customer with a sense of security and confidence in you personally and in the company. This builds loyalty.” Assurance Assurance is the ability of employees to instil confidence in customers and ma ke t hem feel safe in their transactions with the company. “Sta f f members who are consistently courteous and possess the knowledge to answer questions about the company in an honest, straightforward manner give clients the assurance that they are going to be treated well and that all company promises are going to be kept,” Freeman said. “Having that kind of reputation gives you an advantage over your competitors.” Tangibles “Tangibles are all the things t hat customers can see and touch,” Freeman said. “They are very important in providing the kind of experience that will have customers coming back time and again.” Functional equipment, visually appealing facilities and professional-looking employees all play roles. Empathy “Just the act of closing the sale won’t build relationships or rapport with your customers,” Freeman noted.
“Empathy, trust, understanding and effective communication are what make customers want to do business with you.” Empathy entails really u nderst a nd i ng you r customers’ position and feelings. “The ability to step back from your own emotions is essential for building effective and constructive relationships with clients. This means giving customers the kind of individual, personal attention that says you have their best interests at heart and understand their needs.” Responsiveness How quickly do you respond to customers’ needs? How willing are you to help? Would you go out of your way to make them happy? “The number 1 complaint from customers is lack of responsiveness from the person they’ve asked for help: you,” said Freeman. “Keep your clients informed and give them a sense that fulfilling their requests is important, that they are important. “Responsiveness is a valuable human-relations skill that can help improve relationships, promote customer loyalty and lead to business growth.” • Originally published in BIV’s How~2 magazine – expert advice on essential business products and services.
O
nce a luxury, customer relationship management (CRM) technology is commonplace today. Properly implemented, it can clear blocked sales channels and increase sales revenue. One thing that has not changed is that the people side of implementing CRM can be difficult. Adoption rates can be low and the promised productivity increases not realized, leaving the person who lobbied for the CRM investment in the hot seat. You don’t have to be that person. Think of how hard it was for your team to embrace the new expense report. Even with a direct financial benefit, people find doing old things in new ways difficult. Such is human nature. One can rail against this – “if I repeat the new instructions loud and long enough, people will get it” – or anticipate and prepare for it. Anticipation and preparation is the most effective route. A biotech company has a sales team that includes a wonderful mix of ages and technical competence. When launching its CRM, it didn’t focus on the CRM’s potential results. Instead, it focused on getting people to use it. To make its CRM implementation a success it began by appointing a CRM implementation steering group. The group’s mission was 100% adoption of the CRM tool by the sales force within 90 days. The group met weekly to monitor and manage the process. Note the clarity and specificity of its goal. The group
owned the CRM adoption goal – it was its key metric. It kept the group moving forward through the adoption challenges that arose when the status quo seemed easier. The group appointed an in-house technical expert – a technophile who was keen on the task. His role was to handle all tech-related questions posed by the field sales force or pass them along to
Staying tight with their CRM provider was a key plank in the company’s implementation platform the CRM provider’s designated customer-support agent. This single point for tech concerns allowed for trends to be spotted easily and dealt with quickly and effectively. The adoption rate was measured and shared with the entire team weekly. It was derived through informal surveying of sales teams by their managers. The reps were simply asked what percentage of their customer-interaction data was input to the system that week. This honour system was effective in displaying the company’s trust in their people and putting the responsibility for the implementation into their hands. The sales managers acted as CRM coaches. They got granular with each rep and identified roadblocks to using the system. They resolved the issues they could and forwarded the remainder to the steering group. This
was their primary coaching focus for the 90 days of the implementation project. This focus enabled them to clear the way for their reps to use the system. Staying tight with their CRM provider was a key plank in the company’s implementation platform. It decided up front to make the small investment — relative to the cost of the CRM — for adequate customer support. It paid for itself many times over during implementation. Rather than being frustrated by tech issues, the sales team experienced a reasonable resolution time. This kept the adoption progressing steadily. Ultimately, the biotech company reached its 100% adoption in 90 days. Fundamental to its success was the understanding that its team needed help doing old things new ways. It crafted a plan to address this and as a result realized a quicker return on investment with its CRM. Rather than ending up in the hot seat, the sales manager who pushed for the CRM found himself accepting thanks for his great idea. Only once everyone was on board and comfortable using the CRM did the company start to measure the results of implementing the system. That kept the implementation goals clear and made success achievable. • Rob Malec (rob@robmalec.com), president of Businessworks Consulting, is a sales and revenue generation expert.
Book reviews
Always On by Brian X. Chen Da Capo Press, May 2011
I
do not own a smartphone of any description. However, I am well aware of the change going on around
me involving these devices – an app for this, an app for that. Chen, a tech writer for Wired magazine, expands on the social and technological changes the iPhone (and other smartphones) are inspiring in Always On. We are now in an “anything-anytime-anywhere” world. And what might this mean? Are we getting more stupid, as Raj, the social scientist/taxi driver, posits to the author during a taxi ride conversation? Chen suggests it’s an exciting yet terrifying time. Being “always on” might mean cool and useful apps, but it also means
giving up some individuality, creative freedom and, the most frightening to me, some privacy. Chen uses information from interviews with technolog ythinkers, innovators and researchers to present a snapshot of our present and future. Reading Chen’s book did not convince me I should own a smartphone – but if I do end up with such a device, it will be with eyes wide open about its “power for good ” but also its pitfalls. • Donna Kaye is an assistant trade book buyer at UBC Bookstore.
List
September 6–12, 2011 Business in Vancouver
17
Female entrepreneurs remain untapped source of growth for Canada’s economy More data, research and support needed to maximize the economic impact of enterprises owned by women generating more than $1 billion in economic activity and 1,500 jobs in B.C. “We’re definitely helping to contribute to the economic fabric of the province by having this service here. If [similar economic development] organizations that support women don’t provide loans, they’re only addressing part of the problem.”
OnTrack Media co-founder Diana Stirling: “it’s not just about the revenue or staff, but about what you define as success” By Richard Chu
T
he number of women ent repreneu rs continues to grow in Canada, but some argue that more support and research is needed to boost the economic impact of womenowned enterprises. A re c e nt Ta s k forc e for Women’s Busi ness Growth report noted that more than a third (35%) of self-employed workers in Canada are women, and 16% of Canada’s small and medium-sized businesses are now majority-owned by women. Together, women entrepreneurs contribute more than $117 billion in
annual economic activity in Canada. While the statistics are enc ou r a g i ng , Ba rba r a Mowat said women entrepreneurs remain a largely untapped source of economic growth. Mowat, who is president of Impact Communications a nd cha ir woma n of three chapters of the Women Presidents Organization in Vancouver, said many women-owned businesses remain small relative to those owned by men. An October 2010 Industry Canada report found that while the average business that is owned by women had steady revenue growth
Shannon Ward: she and Diana Stirling decided to revamp OnTrack Media’s business model in 2006
between 2000 and 2007, the average revenue was half of that reported by comparable businesses owned by men. “There’s a tremendous loss when we don’t encourage and try to look at growing women-owned businesses,” said Mowat. “A 20% increase in the total revenue of women-owned enterprises can contribute an additional $2 billion per year to the Canadian economy. I think that clearly shows that we have a lot more to contribute.” Laurel Douglas, CEO of B.C.’s Women’s Enterprise Centre (WEC), said key challenges for women entrepreneurs include access to
capital, business-skills development and workload and time-management. More research into the challenges for women entrepreneurs and a national strategy to address these concerns were among the key recommendations from the 22-member taskforce, which included Mowat and Douglas. Because of its ability to address access to capital and other key concerns for women business owners, the WEC has been cited as a model for other provinces and countries to replicate. Since 1995, it has helped provide up to $33 million in direct and indirect financing,
Company growth a lower priority for women entrepreneurs While the number of support programs for women entrepreneurs continues to grow, encouraging female business owners to expand their businesses faster remains a challenge. Douglas said business growth tends
to be a lower priority for women. “The primary driver is independence,” she said. “Some are looking for professional accomplishment. Building strong relationships with clients and serving their market are tied in third place with financial reward as a motivator.” As a result, Douglas estimates that only between 10% and 20% are classic entrepreneurs who are focused on creating and cultivating a big business. Most are “lifestyle business owners” who focus on creating a business that provides a living for the business owner and “a semblance of worklife balance, if you’re the lucky one.” see Success, 19
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Daily business news at www.biv.com September 6–12, 2011
Biggest B.C. organizations managed by women Ranked by total number of staff in B.C. Rank '11 Company
Top executive(s)
Owner(s)
Products or services
Year Revenue founded '10
Lynda Cranston, president and CEO Wynne Powell, chair Cathy Ulrich, president and CEO
Government of B.C.
Providence Health Care
Dianne Doyle, president and CEO
Providence Health Care Society
Health authority providing specialized health care services including BC 2001 Children's Hospital, BC Transplant, BC Cancer Agency, BC Centre for Disease Control, BC Ambulance Services and Health Shared Services BC Delivery of health care across Northern British Columbia, including acute NP care, mental health, public health, addictions, and home and community care services Hospital operator and health-care provider 2000
Vancity
Tamara Vrooman, president and CEO
Member owned
T & T Supermarket3
Cindy Lee, CEO
Coast Capital Savings Credit Union
Tracy Redies, president and CEO
Loblaw Companies Ltd.3 Member owned
First West Credit Union4
Launi Skinner, CEO, First West Credit Union
Macdonald Realty
Lululemon Athletica Inc
Address
1
Provincial Health Services Authority
1380 Burrard St Suite 700, Vancouver V6Z 2H3 P: 604-675-7400 F: 604-708-2700 www.phsa.ca
2
Northern Health Authority
3
8,780 8,780
$709.4 million
6,397 6,302
Full-service financial institution providing B.C. residents with banking and 1946 lending services, investment advice, business banking, micro-finance, growth capital Retail supermarket, ethnic specialty foods and Asian gourmet 1993
$424 million2
2,286 2,118
NP
2,200 NP
Full-service financial institution
2000
$318.5 million2
1,960 1,664
Member owned
Full-service credit union
1946
$292.9 million2
1,343 1,250
Lynn Hsu, CEO
Lynn Hsu
Residential sales, commercial sales and leasing, property management, strata 1944 management, project marketing, relocation
$55.5 million
9915 9605
Christine Day, CEO Chip Wilson, board chair and chief innovation and branding officer Karen Flavelle, president and CEO
Chip Wilson Yoga-inspired clothing retailer (31.5%), FMR LLC (14%)
1998
$711.7 million6
9807 770
Karen Flavelle
Chocolates, nuts, ice cream and seasonal gifts
1907
NP
6638 663
Family Services of Greater Vancouver
Caroline Bonesky, CEO
Non-profit society
$23.2 million
520 508
Sage
Sage Group plc (LSE:SGE)
NP
468 322
Association of Neighbourhood Houses of BC
Nancy Harris, vice-president and general manager, Sage Simply Accounting Mamie Hutt-Temoana, CEO
Counseling to families and individuals, youth services, alcohol and drug 1928 intervention, employment services, adoption, women and children affected by violence, parenting education and employee-assistance programs Business management software, solutions and services 1981
$16.6 million 459 NP
Immigrant Services Society of BC
Patricia Woroch, CEO
Non-profit society
A wide range of social service, recreational and community development 1894 activities through eight neighborhood houses, over 24 satellite centres and camping programs Settlement services, ESL training, language college, employment services and 1972 career services
YWCA Metro Vancouver
Janet Austin, CEO
Non-profit society
Army and Navy Department Store Ltd
Jacqui Cohen, president and CEO
TM Events
1081 Burrard St, Vancouver V6Z 1Y6 P: 604-806-8022 F: 604-806-8303 www.providencehealthcare.org
4
183 Terminal Ave, Vancouver V6A 4G2 P: 604-877-7000 F: 604-877-8292 www.vancity.com
5
21500 Gordon Way, Richmond V6W 1J8 P: 604-276-9889 F: 604-232-8683 www.tnt-supermarket.com
6
15117 101st Ave, Surrey V3R 8P7 P: 604-517-7400 F: 604-517-7405 www.coastcapitalsavings.com
7
15252 32nd Ave Suite 303, Surrey V3S 0R7 P: 604-501-4260 F: NP www.firstwestcu.ca
8
2105 38th Ave W, Vancouver V6M 1R8 P: 604-263-1911 F: 604-266-3514 www.macrealty.com
9
1818 Cornwall Ave Suite 400, Vancouver V6J 1C7 P: 604-732-6124 F: 604-874-6124 www.lululemon.com
10 11 12 13 14 15 16
Purdy's Chocolates
8330 Chester St, Vancouver V5X 3Y7 P: 604-454-2777 F: 604-301-4402 www.purdys.com 1616 7th Ave W, Vancouver V6J 1S5 P: 604-731-4951 F: 604-733-7009 www.fsgv.ca
13888 Wireless Way, Richmond V6V 0A3 P: 604-207-9480 F: NP www.sagenorthamerica.com 3102 Main St Suite 203, Vancouver V5T 3G7 P: 604-875-9111 F: 604-875-1256 www.anhbc.org
333 Terminal Ave Suite 501, Vancouver V6A 2L7 P: 604-684-2561 F: 604-684-2266 www.issbc.org
18 19 20 21 22 23 24 25
NP
$21 million
447 430
Health and fitness centre, housing, hotel, employment programs, leadership development, social programs, thrift shop, single-mother support groups, youth programs, mentorship Jacqui Cohen Discount retailer
1897
$17.3 million9
388 3629
1919
NP
300 3009
Traci Myles, president
Traci Myles
Event planning, promotions and models
2001
$280,000
30010 30010
HUB International TOS
Tina Osen, president and CEO
NP
Insurance
1956
$40.5 million
300 295
Canadian Cancer Society, BC and Yukon Division
Barbara Kaminsky, CEO
NP
1938
$35.6 million
251 NP
Capilano Group of Companies
Nancy Stibbard, owner and CEO
Nancy Stibbard
1983
NP
250 350
Culinary Capers Catering
Debra Lykkemark, CEO11
Debra Lykkemark
Funding for cancer research, housing for cancer patients during treatment, camps for children and families of children with cancer, patient services, advocacy and support Capilano Suspension Bridge, Moraine Lake Lodge, Cathedral Mountain Lodge, gift shops and restaurants in B.C. and Alberta and a hotel development in Tofino Full-service catering and special event planning in Vancouver and Beijing. Restaurant in Beijing
1986
$10.1 million 240 207
Odlum Brown Limited
Debra Hewson, president and CEO
Privately held Disciplined investment advice and objective research
1923
NP
225 220
Dye and Durham Corp
Constance Fenyo, owner and president
Constance Fenyo
Supplier of worldwide legal support and information services
1874
NP
162 157
Arts Umbrella
Lucille Pacey, president and CEO
Non-profit society
Provides arts education for young people
1979
$5.1 million9 153 198
Escents Aromatherapy
Jacqui MacNeill, CEO
Jacqui Natural bath and body-care products MacNeill and husband
1992
NP
535 Hornby St, Vancouver V6C 2E8 P: 604-895-5800 F: 604-684-9171 www.ywcavan.org 74 Cordova St W, Vancouver V6B 1C9 P: 604-683-9660 F: 604-683-5985 www.armyandnavy.ca
16
$1.9 billion1 16,000 15,000 $653.4 million
299 Victoria St Suite 600, Prince George V2L 5B8 P: 250-565-2649 F: 250-565-2640 www.northernhealth.ca
Provincial authority
No. B.C. staff '11/ '10
1208 Homer St Suite 129, Vancouver V6B 2Y5 P: 604-609-9991 F: 604-609-9961 www.tmevents.ca 3875 Henning Dr, Burnaby V5C 6N5 P: 604-293-1481 F: 604-293-1493 www.hubtos.com 565 10th Ave W, Vancouver V5Z 4J4 P: 604-872-4400 F: 604-879-4533 www.bc.cancer.ca
3735 Capilano Rd, North Vancouver V7R 4J1 P: 604-985-7474 F: 604-985-7479 www.capilanogroup.com 1545 3rd Ave W, Vancouver V6J 1J8 P: 604-875-0123 F: NP www.culinarycapers.com 250 Howe St Suite 1100, Vancouver V6C 3S9 P: 604-669-1600 F: 604-681-8310 www.odlumbrown.com 620 Royal Ave Suite 10, New Westminster V3M 1J2 P: 604-257-1800 F: 604-713-7275 www.dyedurhambc.com 1286 Cartwright St, Vancouver V6H 3R8 P: 604-681-5268 F: 604-681-5285 www.artsumbrella.com 3659 Wayburne Dr, Burnaby V5G 3L1 P: 800-964-1150 F: NP www.escentsaromatherapy.com
Source: Interviews with above companies and/or BIV research. NP Not provided NR Not ranked 1 - For year ending March 31, 2011 2 - Net interest income and other income 3 - Sold to Loblaws in July 2009 for $225 million 4 - Created from the merger between Valley First and Envision Financial that closed January 1, 2010 5 Includes independent contractors in sales and staff 6 - Converted from U.S. dollars 7 - BIV estimate 8 - 2010 figure 9 - 2009 figure 10 - Average number of staff working per month 11 - CEO Culinary Capers Catering and Special Events - Vancouver and Beijing - 100% owner of Canada Division, 50% owner of China Division
Changing the way we see Small Business
Correction RAMMP Hospitality Brands Inc. owns the Pantry Restaurant Group and Mr. Mikes Steakhouse and Bar. The top executives of both food franchise operations are Mike Cordoba, Al Cave, Robin Chakrabarti and Peter Dhillon. Incorrect information appeared on the list of biggest food franchises in B.C. (issue 1138; August 16-22).
Shop local during Smallbiz Days — This year it’s on October 15-23!
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130 130
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September 6–12, 2011 Business in Vancouver
Success: More than just making money, company founders say from Female, 17
Jill Earthy, executive director of the Forum for Women Entrepreneurs (FWE), noted that, while flexibility of time is a key reason for going into business, many women end up working more hours than they did as an employee. The steady increase in time and energy required to build a company convinced Diana Stirling and Shannon Ward of OnTrack Media to revamp their business model in 2006. Since founding the company in 2003, they have focused on increasing annual company revenue to $1 million. They had reached their goal in three short years, but not without sacrificing time away from their young families. “When I got pregnant with my son, and Diana with her second child, we got to the point where we knew we couldn’t sacrifice what we had been sacrificing anymore,” said Ward. “It just wasn’t worth it just for the money.” After analyzing their business model and processes, they decided to focus on
the most profitable area of their business: advertising services. They went from a business with 13 full-time
Jill Earthy, executive director of the Forum for Women Entrepreneurs (FWE), noted that, while flexibility of time is a
being able to live your life now and not putting things off.” With extensive use of various cloud computing tools, Stirling and Ward can now travel for four months of the year and still run and expand their businesses. “While we let go of 80% of our [original] clients, it didn’t affect 80% of our revenue or profitability,” said Stirling. “Today, our business is more profitable than it was
before, which I think is absolutely key.” At the same time of the revamp of their first company, they also started a second business called Insider Trading, which now provides affinity programs that offer discounts for members and employees for more than 60 companies and professional organizations in B.C. Together, both companies generate more revenue and profit than the single
business they started nine years ago. “We’re no less successful today than when we had 13 employees,” said Stirling. “What we have been trying to teach women entrepreneurs is that it’s not just about the revenue or staff, but about what you define as success and what’s most important to you. It comes back to demanding more out of your business than money.” •
19
Key strategic growth questions: •How are you addressing changes in demand for your product or service? •What’s the impact of price increases for customers? •Do your customers help build your business through referrals? •Do you have a marketing plan for growth? •Are there new ways to distribute your product or service?
Source: Women’s Enterprise Centre
rchu@biv.com
key reason for going into business, many women end up working more hours than they did as an employee staff in a downtown Vancouver office to one with a single full-time employee working from a home office. “We rebuilt it on what we call a ‘pre-tirement’ framework, where we demanded more from the business than just money,” said Stirling. “We define pre-tirement as
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Daily business news at www.biv.com September 6–12, 2011
Biggest B.C. businesses owned by women Ranked by total number of staff in B.C. Rank '11 Company
Top executive(s)
Owner
Products or services
Year Revenue No. B.C. founded '10 staff '11/'10
Address
1
Macdonald Realty
Lynn Hsu, CEO
Lynn Hsu
Residential sales, commercial sales and leasing, property management, strata management, project marketing, relocation
1944
$55.5 million
9911 9601
2
Purdy's Chocolates
Karen Flavelle, president and CEO
Karen Flavelle
Chocolates, nuts, ice cream and seasonal gifts
1907
NP
6632 663
3
Army and Navy Department Store Ltd
Jacqui Cohen, president and CEO
Jacqui Cohen
Discount retailer
1919
NP
300 3003
3
TM Events
Traci Myles, president
Traci Myles
Event planning, promotions and models
2001
$280,000 3004 3004
5
Capilano Group of Companies
Nancy Stibbard, owner and Nancy Stibbard CEO
6
Culinary Capers Catering
Debra Lykkemark, CEO5
Debra Lykkemark
7
Dye and Durham Corp
Constance Fenyo, owner and president
8
Escents Aromatherapy
9
2105 38th Ave W, Vancouver V6M 1R8 P: 604-263-1911 F: 604-266-3514 www.macrealty.com 8330 Chester St, Vancouver V5X 3Y7 P: 604-454-2777 F: 604-301-4402 www.purdys.com 74 Cordova St W, Vancouver V6B 1C9 P: 604-683-9660 F: 604-683-5985 www.armyandnavy.ca 1208 Homer St Suite 129, Vancouver V6B 2Y5 P: 604-609-9991 F: 604-609-9961 www.tmevents.ca
Capilano Suspension Bridge, Moraine Lake Lodge, Cathedral Mountain 1983 Lodge in the Canadian Rockies, gift shops and restaurants in British Columbia and Alberta and a future hotel development in Tofino Full-service catering and special event planning in Vancouver and 1986 Beijing. Restaurant in Beijing
NP
250 350
$10.1 million
240 207
Constance Fenyo
Supplier of worldwide legal support and information services
1874
NP
162 157
Jacqui MacNeill, CEO
Jacqui MacNeill and husband
Natural bath and body-care products
1992
NP
130 130
Mustel Group
Evi Mustel, principal
Evi Mustel and Jami Koehl
Qualitative (focus groups, in-depth interviews), quantitative (phone, on-site, web, mail) and B.C. and Metro Vancouver omnibus surveys
1980
NP
110 110
10
Pacific Western Brewing Co
Kazuko Komatsu, president Kazuko Komatsu and CEO
Brewery
1957
NP
85 86
11
Robar Industries Ltd
Michelle Charleston, CEO NP Jacqueline Levy, president
Design and manufacture of cast and fabricated fittings for municipal 1958 distribution of water and sewer
NP
78 70
12
Lesley Stowe Fine Foods Ltd
Lesley Stowe, president
Lesley Stowe
Fine-food manufacturer
NP
70 60
13
Boardroom ECO Apparel
Mark Trotzuk, president
Lan Tran (50%)
Manufacturer of environmentally-friendly sportswear, outerwear and 1996 lifestyle wear
$8 million 61 61
14
Cupcakes
Lori Joyce Heather White, co-owners
Lori Joyce and Heather White
Cupcakes and other baked goodies baked daily
2002
NP
606 523
15
Imprint Plus
Marla Kott, CEO
1981
$8.6 million
53 49
16
The Personnel Department
Leslie Meingast, president and CEO
Marla Kott (45%), Reusable, professional name badges and name badge systems Ellen Flanders (45%), Kristin MacMillan (10%) Leslie Meingast Temporary and contract staffing, permanent placements, executive (64.7%) placements, Internet recruitment and human resources consulting
1980
NP
50 NP
17
Kryton International Inc
Leading manufacturer and distributor of premium products for waterproofing, repairing and protecting concrete structures
1973
NP
45 39
18
Trumps Fine Food Merchants & Wholesalers
Kari Yuers Kari Yuers, president and CEO Kevin Yuers, vice-president Heather Angel, managing NP director
Purveyor of 200 innovative wholesale dessert products
1987
$5 million 45 38
19
Nannies on Call
Michelle Kelsey
Michelle Kelsey
Child-care agency serving Calgary, Toronto, Vancouver, Victoria and Whistler
2001
NP
437 408
20
Kicking Horse Coffee Co Ltd
Elana Rosenfeld, CEO Leo Johnson
Organic, fair-trade coffee, local cafe
1996
$18 million
42 46
21
Vancouver Gear Works Ltd
Jim Mantei, vice president Dylan Smith, president
Elana Rosenfeld (50%) and Leo Johnson (50%) NP
Manufacturer of industrial gears, sprockets and other machinery components
1952
NP
40 35
22
AspenClean
40 34
Jubilee Tours and Travel Ltd
2003 Home cleaning, office cleaning, carpet cleaning and range of ECOCERT®-certified cleaning products including all purpose cleaners, kitchen cleaners, bathroom cleaners, glass cleaners, super scrub powder and all-in-one concentrate and dish soap Travel services 1993
$1.7 million
23
Alicia Sokolowski Alicia Sokolowski, and Chris Solodko president and Co-CEO Chris Solodko, COO and coCEO Claire Newell, president and Claire Newell owner
NP
372 37
24
Nana's Kithchen & Hot sauces Ltd
Nasim Dhanji, CEO Shelina Mawani, Shelina Mawani, co-founder Nasim Dhanji
Samosas, wraps, grab-and-go meals
$3.2 million
33 33
25
Canadian Tourism College
Gwen Donaldson, president, Gwen Donaldson, Vancouver campus Kim Russell
1980 Professional training in CITC 5-star-endorsed travel, tourism - IATA authorized training center, hospitality & resort management, adventure tourism, flight attendant and Microsoft Office certification and business
NP
30 30
3735 Capilano Rd, North Vancouver V7R 4J1 P: 604-985-7474 F: 604-985-7479 www.capilanogroup.com 1545 3rd Ave W, Vancouver V6J 1J8 P: 604-875-0123 F: NP www.culinarycapers.com 620 Royal Ave Suite 10, New Westminster V3M 1J2 P: 604-257-1800 F: 604-713-7275 www.dyedurhambc.com 3659 Wayburne Dr, Burnaby V5G 3L1 P: 800-964-1150 F: NP www.escentsaromatherapy.com 1505 2nd Ave W Suite 402, Vancouver V6H 3Y4 P: 604-733-4213 F: 604-733-5221 www.mustelgroup.com 641 North Nechako Rd, Prince George V2K 4M4 P: 604-421-2119 F: 604-421-0090 www.pwbrewing.com 12945 - 78th Ave, Surrey V3W 2X8 P: 604-591-8811 F: 604-591-5288 www.robarindustries.com 13955 Bridgeport Rd, Richmond V6V 1J6 P: 604-238-2180 F: 604-731-3666 www.lesleystowe.com 1201 Franklin St, Vancouver V6A 1L2 P: 604-718-7808 F: 604-717-8028 www.boardroomecoapparel.com 2887 West Broadway, Vancouver V6K 2G6 P: 604-974-1300 F: 604-974-1301 www.originalcupcakes.com 21320 Gordon Way Unit 260, Richmond V6W 1J8 P: 604-278-7147 F: 604-278-7149 www.imprintplus.com 595 Howe St Suite 1205, Vancouver V6C 2T5 P: 604-685-3530 F: 604-689-5981 www.goodstaff.com 1645 East Kent Ave, Vancouver V5P 2S8 P: 604-324-8280 F: 604-324-8899 www.kryton.com 646 Powell St, Vancouver V6A 1H4 P: 604-732-8473 F: 604-732-8433 www.trumpsfood.com
788 Beatty St Suite 302, Vancouver V6B 2M1 P: 604-734-1776 F: 604-648-8362 www.nanniesoncall.com 491 Arrow Rd, Invermere V0A 1K2 P: 250-342-4489 F: 250-342-4450 www.kickinghorsecoffee.com 14551 Burrows Rd, Richmond V6V 1K9 P: 604-278-3111 F: 604-270-1433 www.vangear.com 657 Marine Dr Suite 100, West Vancouver V7T 1A4 P: 604-925-9900 F: 604-925-9958 www.aspenclean.com 3011 Underhill Ave Suite 201, Burnaby V5A 3C2 P: 604-669-6607 F: 604-669-5336 www.travelbestbets.com 8125 130th St Unit 12, Surrey V3W 7X4 P: 604-572-6202 F: 604-572-6275 www.nanasauce.com 1755 Broadway W Suite 501, Vancouver V6J 4S5 P: 604-736-8000 F: 604-731-9819 www.tourismcollege.com
Source: interviews with above companies and/or BIV research. NP Not provided NR Not ranked 1 - Includes independent contractors in sales and staff 2 - 2010 figure 3 2009 figure 4 - Average number of staff working per month 5 - CEO Culinary Capers Catering and Special Events - Vancouver and Beijing - 100% owner of Canada Division, 50% owner of China Division 6 - BIV estimate 7 - FTE figure 8 - FTE figure from more than 350 independent contractor nannies in Whistler and Vancouver
Do not miss the Book of Lists, a compilation of lists featured in BIV, including biggest law firms, construction companies, biotech firms and many more. Free to subscribers ($79.95 plus HST for one year) or $35 plus HST as a separate purchase. Purchase lists as Excel files at www.biv.com/listsforsale.
1989
2000
Business in Vancouver makes every attempt to publish accurate information in The List, but accuracy cannot be guaranteed. Researched by Richard Chu, lists@biv.com.
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September 6–12, 2011 Business in Vancouver
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Favourite Achievements: Getting my PMP certification and being Vice President of Events for the Canadian West Coast Project Management Association for two years Goals: To help Baby Boomers across Canada craft a great life! Passions and Interests: Computers, business, horses, dirt biking and my children! Current Read, Author: Why not?, Shania Twain Someone I Admire/Why: My mother who was the strongest person mentally and physically that I know and also my father who had one of the longest running small businesses in BC. Five people (of all time) I would invite to my dinner gathering: Moses Znaimer, Markus Friedland, Shania Twain, Christy Clark and my Foundation husband Name: Angie Smith Business Tip or Motto: What doesn’t kill you, E-mail: angies@website4boomers.com or will make you stronger angies@dating4boomers.com Favourite TV Show: The Dragon’s Den (of Occupation/Position/Title: President course!) What I do: Manage the day to day operations, information technology and marketing functions Favourite Holiday Destination: Princeton, BC Favourite Community Organization or Credentials: Diploma in Operations Management, Computer System Operations and Charity: CIBC Canadian Breast Cancer Run for the Cure Management and PMP certified Favourite Reason for Subscribing to BIV: The Professional Background: I have twenty years great local business information and the date experience in information technology and book business.
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Leadership
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How to Close Larger Deals More Quickly with Rob Malec
Learn specific actionable things you can do to increase the dollar size of your deals, and how you can close large deals more quickly! The ideas you will learn in this talk are straight forward, and can be implemented immediately toward... - Increasing top line sales revenue - Decreasing the cost of acquisition per sale - Closing more deals per month/quarter/year - Simplifying the sales process - Achieving your sales quotas Rob Malec is a sales and business development consultant with 23 years of experience working in all facets of business, from Account Executive to VP Business Development. He is an active facilitator, presenter and speaker, and columnist for Business In Vancouver.
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SMEI is the worldwide professional association for sales & marketing.
T
here was something about Jack Layton’s leadership that crossed boundaries and is something that leaders within corporations would do well to pay heed to. All too often we judge a leader’s success on his or her decisions, strategies and goals. But while this is important, what Layton showed us is that in many cases it is the manner in which you choose to lead that is far more significant than the decisions you make as a leader. “Soft” is more important that “hard.” Layton said it best himself. His leadership was defined by love, hope and optimism. He was real and human. While he was clearly the leader of the party, arrogance and ego played no role. He was personable, energetic and, yes, the guy we’d like to sit down and have a beer with. His positive energy translated into a positive vision. Whether or not we agreed with it, he was still able to articulate a constructive option as distinct from simply defining what was wrong with
others’ positions. But we see little of this leadership style in today’s organizations. Those at the top concern themselves with the hard part of leadership such as decision-making and strategy formulation. While this is important, leaders need to consider how they show up and articulate these policies. Somewhere along the way many appear to have forgotten that the best way to lead others is to connect with them on a real and human level. Policies are worthless if others will not buy in and follow. If this emotional connection is there, then, as we saw with Layton, the relationship between leader and follower is defined by a deep respect. And it is through this respect that others will follow leaders – regardless of whether they agree with their policies. His leadership became more important than the policies he was articulating. Had Layton been the CEO of a corporation, there’s good reason to believe that
organization would have been successful. His energy and commitment would have inspired others, and his hope and optimism would have likely meant that many were willing to put in the discretionary effort to help the enterprise succeed. Let me be honest here: if I were to tell a CEO that his or her leadership needs to be better defined by love, hope and
Most of those at the top of organizations have forgotten that the most important job is to inspire others optimism, I would probably get a bunch of strange looks or rolled eyes. Either such words would be viewed as having no place in today’s organizations or the out-of-touch and arrogant CEO might genuinely believe he or she appears as loving, hopeful and optimistic. But I beg to differ. Most of those at the top of organizations are so caught up in the demands of shareholders, regulatory bodies, boards and others who are
interested in the hard side of the business that they have forgotten that the most important job is to inspire others. And the only way they can do this is to be real, human and personable. Layton’s legacy will be with us for many years, but my hope is that his passion and courage will cause us to take stock of how we lead organizations. What if we were to promote into leadership positions those who best portrayed a sense of love, hope and optimism? What if we demanded that today’s organizations be led by real people with a passion and a humanness so desperately lacking? What if those at the top recognized that what employees really want is not invulnerability but to be able to sit down with them, have a beer and talk with mutual interest, respect and caring. This, I hope, will be Layton’s lasting legacy – a legacy of loving leadership. • Rosie Steeves (rosie@executiveworks.org) is the founder and president of Executive Works, an organization focused on helping executives create profitable organizations through great leadership and effective executive teamwork.
BIV Salutes BC’s Fastest Growing Companies Business in Vancouver is pleased to be hosting the 2011 Top 100 Fastest Growing Companies Awards Dinner. Coinciding with the publication of the Top 100 Fastest Growing Companies List on September 13, this event brings together the top executives of these businesses to honour them for making it on the list as well as providing a great networking opportunity for those who attend. This event provides a fantastic opportunity to meet and mingle with some of BC’s fastest Growing Companies.
For more information and to purchase tickets visit www.biv.com/events
Date: September 27, 2011 Winner’s reception: 5:30pm – 6:15pm General reception: 6:15pm – 7:00pm Awards Celebration Dinner: 7:00pm – 9:00pm Location: The Fairmont Waterfront Hotel Price: Subscribers $125 Non-subscribers $149 Corporate Tables of 10 including logo recognition $2,250
Sponsored by:
fastest growing
leadership 23
September 6–12, 2011 Business in Vancouver CEO Advantage
Nancy MacKay Executive assistants are critical to CEO success CEO challenge A CEO had been working with his executive assistant for the past year and things just weren’t working out well. Their personalities clashed, and her performance wasn’t meeting his expectations, so they agreed to part ways during a very busy time in the company’s business cycle. This was the CEO’s third assistant in three years, and the hiring process in each case had used up a lot of time that he really didn’t have. He liked to be self-sufficient, so decided to go it alone and manage all his own administration. Three months later, his office was piling up with paperwork, he had missed some important customer meetings and he was being told by his executive team that the whole company was suffering. CEO mistake In hiring his last three assistants, the CEO had informally reached out to his network instead of using a formal recruiting process. B e c au s e he d id n’t
appreciate the potential value of a top executive assistant, the CEO hadn’t paid close attention to the level of skill and experience of the job candidates. He also hadn’t viewed the relationship as a partnership from which he had as much or more to gain. In the case of each of his three former assistants, the CEO had also neglected to set any specific priorities to focus the assistant’s work. As was his style, he worked somewhat independently while his assistants did their best to tread water. CEO solution Top talent is necessary for more than just your executive team. The best assistants can be a significant asset not only to the CEO, but to the organization as a whole. View your assistant is part of your CEO “brand.” As the gatekeeper and frequent first point of contact, your assistant is often the initial impression others have of you and your organization. With that understanding, it’s not hard
to realize that your assistant’s work style and capabilities should enhance, not detract, from you and your brand. First, it’s essential to use an experienced recruiter who specializes in executive support. Focus on finding someone who is a great personality fit and is professionally trained to be an executive assistant. Second, develop and train your assistant. Meet weekly to plan your time and then daily to check in and make sure both of you are on track. An effective assistant will help you set appropriate boundaries to manage your priorities, so be sure he or she understands those priorities. Ask your assistant for feedback regularly and let him or her know whether your expectations are being met. Last, don’t let a great assistant get away. Make sure you say thank you and acknowledge his or her efforts daily. Compensate well and recognize the significant contribution your assistant makes to your success. •
Investment Market Update Location: Hyatt Regency Hotel - Vancouver, BC Time: 7:00 am Registration 7:30 am – 9:00 am Breakfast and Presentation Price: Members: $55 ($65 after September 12) Non-Members: $85.00 Table of 10: $550 (HST included - HST #897619037)
Late fee applies after this date. Guests and employees of Sponsors are eligible for member rates.
Media Sponsors:
NAIOP Breakfast Seminar: Thursday, September 15, 2011
Nancy MacKay is the president of MacKay & Associates (www.mackayandassociates. ca) and the CEO coach and facilitator of 15 CEO and executive forums across Canada.
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24
Law
Daily business news at www.biv.com September 6–12, 2011
Trouble
DISCIPLINE •Investment
Industry Regulatory Organization of Canada
A hearing panel of the Investment Industry Regulatory Organization of Canada (IIROC) will meet to consider the appropriate penalty for Melaney Phillips, the regulator announced August 22. In a decision dated June 8, 2011, the panel found that Phillips violated IIROC rules by making unsuitable recommendations for clients, one of whom was a senior in his 80s. The panel also found that Phillips made discretionary purchases in a client account, performed client services for which she was not qualified and sold some of her own shares to a client without ensuring the client obtained the shares at the best available price. Specifically, the panel found that Phillips: • recommended and purchased securities for two clients even though, in both cases, the investments were unsuitable for the clients’ investment objectives and tolerance for risk, contrary to IIROC Rule 1300.1 (q); • made unauthorized discretionary purchases in a client account, contrary to IIROC Rule 1300.4; • prepared tax returns for two clients and charged a fee for those services, without prior approval from her firm and without any formal training or designation, which constitutes conduct unbecoming and detrimental to the public interest, contrary to IIROC Rule 29.1; and • recommended and purchased shares for a client account from her own personal holdings. In doing so, she failed to advise the client that she had an interest in the transaction, which is conduct unbecoming and detrimental to the public interest, contrary
to IIROC Rule 29.1. She also failed to take reasonable steps to ensure her client received the best available price for the shares, contrary to Part 8.1 of the Universal Market Integrity Rules. The violations occurred in 2007 and 2008, while Phillips was a registered representative with the Kelowna, British Columbia branch of Canaccord Genuity Corp., an IIROC-regulated firm. IIROC began its formal investigation into Phillips’ conduct on February 20, 2009. Phillips is no longer registered with an IIROCregulated firm. The hearing will take place September 16. The panel’s decision on penalty will be made available to the public at www.iiroc.ca.
BUYER’S ALERT Companies listed below,
which are not members of the Better Business Bureau, have failed to respond, as of August 26, 2011, to Better Business Bureau of Mainland B.C.’s efforts to mediate complaints from August 15, 2011, to August 19, 2011. In some instances, the company may have taken care of the complaint and considered the matter closed, or may believe the complaint is unjustified; however, if the BBB has not received a response, records cannot reveal either position. Please note that BBB members must respond to customer complaints that are brought to their attention. Source: BBB. 1010 Tires, Richmond 123 Ink Cartridges, Richmond Action Security, Penticton Alliance Ticketing Services, Abbotsford APK Awnings & Signs, New Westminster ASD Telecommunications, West Vancouver Atlasmoneyonline.com, Vancouver Beyond Beauty, Surrey Big Bark Recycling, Prince George Big Jack Enterprises Ltd., Burnaby Biothera Clinics,
Vancouver Broadway Motors Ltd., Chilliwack Busy Bee 1 Hour Cleaners W 6 Ave, Vancouver Canada Pharmacy Online, Surrey Canadian Neighbor Pharmacy, Vancouver Celtic Studio, North Vancouver Chilliwack Motor Inn, Chilliwack Clydesdale Moving, Vernon Coast Solarium & Patio Inc., Langley Cold Cash Today, Vancouver ConsumersReward Solutions, Vancouver ConverseTech, Kelowna Cost Less Appliances, Surrey Custom Cruzers Inc., Surrey Cwc Immigration Solution Inc., Surrey Empire Vehicle Solutions Inc., Surrey Homelite Canada Ltd., New Westminster J & G’s, Prince George J B Laser Technologies Ltd., Surrey James Haworth & Son Ltd., Kelowna Jannat Sleep Centre, Langley Jay’s New & Used Furniture, Vancouver Kal Tire, Burnaby Kamikaze PR, Surrey Konker Motors, Vancouver Ledingham McAllister Properties Ltd., Vancouver LM Gardening Inc., Langley Lucky Employment Agency, Vancouver Mexi-Can Holidays Ltd., Vancouver Mezzi, Richmond Monkey’s Playhouse Early Learning Childcare Centre, Coquitlam Mother of a Sale Inc., Vancouver MVE Cleaning Service, Richmond Nomorerack Retail Group, Vancouver Omni Warranty Corp., Vancouver Pace Realty Corp Property Management, Prince George Star Rebates, Burnaby Unique Marketing, Summerland Urban Behavior, Coquitlam The following companies have responded to the BBB subsequent to being published: Across Canada Van Lines Inc., Vancouver Klahanie Development Ltd., West Vancouver Shaw Cablesystems Ltd., Kelowna
Vancouver Plaintiff: 49th Parallel Roasters Inc. 1800–1095 West Pender St., Vancouver Claim: $320,460 for debt for roasted coffee beans. Defendants: Shuswap Land Services Ltd. and Calvin Cosh and John Harper 2–120 Harbourfront Dr. N.E., Salmon Arm and Bag 9000, 270–190B Tran Canada Hwy., Salmon Arm Plaintiff: Bagicha Singh Teja 2300–550 Burrard St., Vancouver Claim: $174,032 for losses sustained due to the faulty appraisal of a property that was used as security for a mortgage. Defendants: Solaris Wellness Centre Inc. and Lisa Skerritt and Amy Rein 102–2590 Granville St., Vancouver and 8120 Alder Lane, Whistler Plaintiff: Canticlo Investments Inc. 1300–777 Dunsmuir St., Vancouver Claim: $160,987 for debt under a commercial lease. Defendants: Canadian Circuits Inc. and Parveen Arya and Praveen Arya and The Owners, Strata Plan LMS 933 10–13140 88th Ave., Surrey and 12–13140 88th Ave., Surrey and 11–13140 88th Ave., Surrey Plaintiff: Hazco Environmental Services, a division of CCS Corp. 1600–1095 W. Pender St., Vancouver Claim: $153,871 for debt under a contract for decontamination services and materials. Defendant: MacKenzie Sawmill Ltd. 11732 130th St., Surrey Plaintiff: Leavitt Machinery General Partnership dba Leavitt Machinery 1200–925 W. Georgia St., Vancouver Claim: $123,134 for breach of lease contracts; and damages.
filed with the B.C. Supreme Court registry in Vancouver. Information is derived from notices of civil claim. Civil claims have yet to be proven in court.
Defendants: J. Morash & Company Inc. and James R. Morash aka Jim R. Morash and Jim Richard Morash 301–1665 Ellis St., Kelowna and 1415 Menu Rd., Kelowna Plaintiff: Business Development Bank of Canada Box 6, 200–505 Burrard St., Vancouver Claim: $105,293 for debt against J. Morash & Company Inc; enforcement of the general security agreement; an order; $105,293 against James Morash; and all necessary accounts, directions and inquiries.
Defendant: Caffe Artigiano Inc. 1000–840 Howe St.,
Defendants: Sun Kyung Lee and Dongmin Holdings Inc.
Who’s Getting Sued These corporate writs were
6552 Arbutus St., Vancouver and 4–4555 Greenall Ave., Burnaby Plaintiff: Dellos F&B Co. Ltd. 1200–200 Burrard St., Box 48600, Vancouver Claim: $105,019 for a promissory note. Defendants: Montecristo Jewellers Inc. and Ivanhoe Cambridge I Inc. and 7503059 Canada Inc. 600–1090 W. Georgia St., Vancouver and 300–95 Wellington St., Toronto Plaintiff: Halo Art Inc. 9500 Place Jade, Brossard, QC Claim: $92,380 for labour and materials to build Rolex jewellery counters against Montecristo, or damages; a declaration that the plaintiff is entitled to a claim of lien for $92,380; and orders. Defendants: South Island Print Services (2009) Ltd. and Adam Molnar 1–505 Fisgard St., Victoria and 3934 Mimosa Pl., Victoria Plaintiff: Xerox Canada Ltd. 2900–550 Burrard St., Vancouver Claim: $87,921 for debt arising from leases for equipment and services; and $228,464 for breach of contract, or damages. Defendants: Board of Parks and Recreation of the City of Vancouver and Terra Firma Builders Ltd. 453 W. 12th Ave. Vancouver and 560 Fulford-Ganges Rd., Salt Spring Island Plaintiff: Efco Canada Co. 800–1959 Upper Water St., Halifax, NS Claim: $78,428 for debt under a rental agreement for materials for making rammed earth walls as part of a construction project for a new Visitors’ Center at VanDusen Botanical Gardens, and a builders lien for $78,428. Defendants: B.V. Marketing Corp. and Vanessa Hogan aka Vanessa Ellen Hogan and Brandt Hogan 6345 197th St., Langley and 21189 83A Ave., Langley Plaintiff: Royal Bank of Canada Box 5050, Station A, Mississauga, ON Claim: $69,632 for debt against Vanessa Hogan; $38,929 against B.V. Marketing; a declaration that the security agreement is a security interest charging the collateral specified in priority to any right, title or interest of any of the defendants; and $54,394 against Brandt Hogan. Defendant: Crissy Field Media Inc. Address unavailable Plaintiff: Anita Dalakoti 1309 Tyrol Rd., West Vancouver Claim: $69,000 for debt under a loan agreement
and a penalty. Defendants: Renegade Construction Inc. and Trevor Ian Makadahay 9947 100th Ave., Fort St. John and JP2-Doig Reserve, Box 193, Rose Prairie Plaintiff: Fort St. John Co-operative 10808 91st Ave., Fort St. John Claim: $57,484 for debt for fuel products. Defendants: Top Tech Unlimited Motors Inc. and Top Tech Unlimited Accessories Inc. and Deepak Oberoi coba Top Tech Unlimited Inc. and Deepak Oberoi 206–6411 Buswell St., Richmond and 9071 Oakmond Rd., Richmond Plaintiffs: Minglian Holdings Ltd. and 0800705 B.C. Ltd. 300–1501 W. Broadway, Vancouver Claim: $57,114 for rent and rent arrears; and damages. Defendants: Signarama Canada 2010 Inc. and Worldwide Franchise Group Inc. 4–60 Marycroft Ave., Woodbridge, ON Plaintiff: Gowling Lafleur Henderson LLP 23rd floor, 550 Burrard St., Vancouver Claim: $54,867 for debt for legal services. Defendants: Lee Gahr and Roler-Kraz Holdings Ltd. 301–8 Smithe Mews, Vancouver Plaintiff: Dag Consulting Corp. 22–275 E. 13th St., North Vancouver Claim: $40,000 for debt arising from a promissory note, or an order for possession of assets set out in the agreement; and damages. Defendants: Greci Developments Inc. and 0861695 B.C. Ltd. Box 49314, 2600–595 Burrard St., Vancouver and 100–132 14th St., North Vancouver Plaintiff: Gino Crudo and James Pitcher dba Boltz Installations 1150–625 Howe St., Vancouver Claim: $15,626 for the supply of electrical equipment and services against Greci; and a builders lien for $15,626. Defendants: Greci Developments Inc. and 0861695 B.C. Ltd. 100–132 E. 14th St., North Vancouver and Box 49314, 595 Burrard St., Vancouver Plaintiffs: Gino Crudo and Hames Pitcher dba Boltz Installations 1150–625 Howe St., Vancouver Claim: $15,622 for the construction of three duplexes; and a builder’s lien for $15,622. Defendant: Eva Parker aka Shu Yi Eva Parker
Law 25
September 6–12, 2011 Business in Vancouver
Trouble
Lawsuit of the week
Lawsuit launched after bus hits New Westminster home A bus that allegedly rolled backward and crashed into a New Westminster home is at the heart of a lawsuit launched July 13 in B.C. Supreme Court. Homeowner Nathan Lam is suing Coast Mountain Bus Company Ltd. and unidentified driver John Doe for damages suffered as a result of the alleged July 2009 crash. According to the statement of claim, a Coast Mountain bus was headed northbound on 1st Avenue between Agnes and Cunningham streets in New Westminster when it began rolling backward and crashed into Lam’s home. The claim alleges that Doe then “wrongfully and without lawful excuse” entered Lam’s home. The suit argues negligence on the part of Doe and Coast Mountain, and trespass on the part of Doe. It claims that, as a result, Lam has suffered losses and expenses for: emergency repairs to his home; loss of rental income; and repairs and remediation of the home. Lam is seeking damages and special damages. None of these allegations has been proven in court. At press time, no statement of defence had been filed.
10–1073 Lynn Valley Rd., North Vancouver Plaintiff: Kappa Innovations Ltd. 852 Seymour St., Vancouver Claim: $14,860 for debt related to construction work; and a builders lien for $14,860. Defendants: Us & Them Renovations Inc. and Abbas Kashani 202–1405 Hunter St., North Vancouver and 3302 Henry St., Port Moody Plaintiff: 4361814 Canada Inc. dba Dick’s Lumber 2580 Gilmore Ave., Burnaby Claim: $10,515 for building materials; and a builders lien for $10,515. Defendants: Pacific National Exhibition and John Does #1-2 2901 E. Hastings St., Vancouver and addresses unavailable Plaintiff: Heather Campbell 2020–650 W. Georgia St., Vancouver Claim: Damages for injuries Campbell sustained during an altercation at a beer garden; and an in-trust award for services provided by friends and/ or family. Defendants: The Attorney General of Canada and Her Majesty the Queen in right of the Province of British Columbia and The Attorney General of British Columbia and The Minister of Public Safety and Solicitor General of British Columbia and Pete Monds and Glen Fishhook and Sebastien Pilote 900–840 Howe St., Vancouver and Box 9044 Stn Prov Govt, Victoria and 14453 57th Ave., Surrey Plaintiff: Vladimir Peh 7071–149A St., Surrey Claim: Damages for injuries sustained when, during a candidateselection process for the Emergency Response Team, Peh was told to
climb a 50-foot platform on a communications tower and, attached to a rappel rope, fall backwards into the path of a metal beam. Defendants: Penelope Toni Wright and Ocean Towers Ltd. 801–1835 Morton Ave., Vancouver Plaintiff: Michael Bruce Cook Davies 112 Glen Ave., Banff, AB Claim: A declaration that Wright’s leasehold interest in a property and her shares in Ocean are held in trust for the plaintiff, arising from unjust enrichment following the end of a nonspousal relationship; and a declaration that Ocean holds the property in trust for the plaintiff. Defendants: Stephanie Aaslie and Stig Aaslie 140 Sargent St., Quesnel Plaintiffs: Fernando Casses and Dr. Fernando Casses Inc. 545 Front St., Quesnel and 1700–1075 W. Georgia St., Vancouver Claim: Damages for defamation in a CBC interview; and an injunction. Defendants: David Sean Biddle and John Does #1-5 and 636608 B.C. Ltd. and ABC Cos. #1-2 2881 W. 3rd Ave. and addresses unavailable and 700–686 W. Broadway, Vancouver and addresses unavailable Plaintiff: Michael Douglas John Keating 18th floor, 777 Dunsmuir St., Vancouver Claim: Damages for injuries sustained when the plaintiff was struck in the face in front of the bar at the Biltmore. Defendants: Optima Batteries Inc. and Johnson Controls L.P. and Johnson Controls U.L.C. and Mopac Auto Supply Ltd. and Canadian Tire Corporation, Ltd.
dba Motomaster Canada and ABC Co. Ltd. 5757 N. Green Bay Ave., Milwaukee, WI and 1300– 1969 Upper Water St., Halifax, NS and 2300–550 Burrard t., Vancouver and 210–4603 Kingsway, Burnaby and Box 1117, 1500–1055 W. Georgia St., Vancouver and address unavailable Plaintiffs: Andrew M. Ibbetson and Kathleen A. Ibbetson 22–4660 52nd St., Delta Claim: Damages for losses sustained when a battery charger and/or battery caused or contributed to a fire that started in a vehicle and spread to the Ibbetsons’ residence. Defendant: Grouse Mountain Resorts Ltd. 2700–700 W. Georgia St., Vancouver Plaintiff: Tony-Lynn Frederick 2525–1075 W. Georgia St., Vancouver Claim: Damages for injuries sustained when Frederick, while snowshoeing, fell from an unmarked section of the trail. Defendant: Ab-Tech Plumbing & Heating Ltd. 3–2445 E. Hastings St., Vancouver Plaintiff: The Owners, Strata Plan LMS 4255 1800–401 W. Georgia St., Vancouver Claim: Damages for losses sustained as the result of a flood caused by a faucet that blew off a wall.
the plaintiff’s business income. Defendants: ABC Co. Ltd. and Indian Grove Riding Stables and Shawn Stelkia and Aaron Stelkia and John Does #1-2 and Jane Doe #1 Addresses unavailable Plaintiff: Geraldine Denise McBride 203–960 W. 6th Ave., Vancouver Claim: Damages for breach of contract related to a horse-riding incident during which the plaintiff suffered injuries. Defendants: Begg Cousland and S.A.R.L. and Pierre Schumacher and David Schumacher 4 Rue Brooh, Clervaux, Luxembourg and addresses unavailable Plaintiff: Noram Engineering & Constructors Ltd. 1800–200 Granville St., Vancouver Claim: A declaration the Moroccan business agreement is terminated; a declaration there was no final profit within the meaning of the agreement and that no monies are due or owing; damages for misrepresentation; and damages for breach of contract. Defendants: Hua Yu Tang aka Jack Tang and Jianhua Qu aka Eva Qu
Defendants: Helen Matrie Jansen and John Henry Jansen and Helen Marie Jansen and John Henry Jansen dba Winfield Electric, District of Lake Country and British Columbia Safety Authority and John Does #1-5 and ABC Cos. #1-5 18450 Hereford Rd., Winfield, B.C. and 10150 Bottom Wood Lake Rd., Lake Country, B.C. and 200-505 6th St., New Westminster and addresses unavailable Plaintiff: SD-5 Ventures Ltd. 2400–200 Granville St., Vancouver Claim: Damages for a fire that was a result of improperly installed electrical wiring. Defendant: Paul Fox 4750 203rd St., Langley Plaintiff: A Better Life Dog Rescue Society 1835-136A St., Surrey Claim: An order that Fox surrender Jingles, a male pug cross, following the Society’s rejection of Fox’s application to adopt Jingles. Defendant: William Douglas Coulson Address unavailable Plaintiff: Yes! Management Ltd. 2644 Ware St., Box 424, Abbotsford Claim: Damages for a motor vehicle accident in which a Ferrari was written off, affecting
and Gateway Vision Ltd. 8811 No. 5 Rd., Richmond and 208–8660 Jones Rd., Richmond Plaintiff: Yuanbo International Study Services Ltd. and Hong Yu Zou 204 2/F Malaysia Bldg., Gloucester Rd., Wanchai, Hong Kong and 333 Yishan Rd., 22nd floor, Xuhui District, Shanghai Claim: Judgment against Tang and Qu for all amounts received in relation to the purchase agreement, consulting agreement, employment agreement related to a private school; punitive and aggravated damages; a declaration the agreements are void; a declaration Zou has never been a director or officer of Gateway; a constructive trust over the funds paid to Tang and Qu; an accounting; and a tracing. Defendants: Canadian Circuits Inc. and Parveen Arya and Praveen Arya and The Owners, Strata Plan LMS 933 10–13140 88th Ave., Surrey Plaintiff: Levelton Consultants Ltd. 700–401 W. Georgia St., Vancouver Claim: Recovery for the costs of performing environmental site investigations on lands; and damages under the Environmental
Management Act. Defendants: Air Canada and Jane Stewardess 2700–700 W. Georgia St., Vancouver and address unavailable Plaintiff: Alice Wong 7971 Wintergreen Ave., Richmond Claim: Damages for injuries sustained when a flight attendant dropped luggage, that was in a plane’s overhead compartment, onto the plaintiff’s head. Defendants: Target Land Surveying Ltd. and Target Land Surveying (NW) Ltd. 201–65 Richmond St., New Westminster Plaintiffs: Diana StoccoSerban and Ion Serban 1214 Edinburgh St., New Westminster Claim: Damages for a faulty land survey. Defendant: SGI Canada Insurance Services Ltd. aka SGI Canada 2260 11th Ave., Regina, SK Plaintiff: Gurbax Singh Gill 1100–1333 W. Broadway, Vancouver Claim: All medical rehabilitative and disability benefits owing, following a collision that resulted in injuries; an order, or damages for breach of contract; and damages. •
Jeff Robinson Wins Top Prizes in the Patent Agent Examinations
W
e are proud to announce that Jeffrey W. Robinson has been awarded both prizes for the Canadian Patent Agents’ examinations, namely the J. Edward Maybee Memorial Prize for highest overall standing and the Marie F. Morency Memorial Prize for the highest mark on the patent drafting examination. Jeff will receive the awards at the annual meeting of the Intellectual Property Institute of Canada in
September 2011. He is our firm’s fifth lawyer to receive the Maybee Prize. Jeff completed his Bachelor and Master degrees in Applied Science at Simon Fraser University. Parts of his graduate work in the area of wireless networking were published in peerreviewed IEEE publications. Jeff was called to the Bar of British Columbia in 2009 after clerking at the British Columbia Supreme Court. During his legal studies at the University of British Columbia Jeff received several awards, including the Raymond G. Herbert Award for the best all-round graduating student in his law class, and was selected as a UBC Wesbrook Scholar. Oyen Wiggs Green & Mutala LLP is Western Canada’s largest independent intellectual property law firm. Best Lawyers magazine identified Oyen Wiggs Green & Mutala LLP as the #1 firm in intellectual property law in Vancouver and the Province of British Columbia, and recognized nine of our lawyers as Best Lawyers in the field of intellectual property law in the 2011 edition of The Best Lawyers in Canada. Call us to consult Jeff or another member of our team.
480 – The Station, 601 West Cordova St Vancouver, BC, Canada V6B 1G1
T: 604.669.3432 | F: 604.681.4081 www.patentable.com
26
For the record
Daily business news at www.biv.com September 6–12, 2011
index The following are People on the Move categories. Not all appear each week.
• Accounting • Advertising • Aerospace • Architecture • Associations/Societies • Biotech/Life Sciences • Communications/PR • Community • Design • Development/Construction • Education • Energy • Engineering • Finance • General
People on the Move
Email your For the Record information to: fortherecord@biv.com. Please include a high-resolution, colour headshot where possible.
•
Associations/ Societies
Mar y McGivern a nd Monica Sayers have been appointed campaign director of team in training and campaign director of light the night, respectively, of the Leukemia & Lymphoma Society of Canada. McGivern was previously business developer at PosAbilities, owner at JM Sportswear, senior consultant at McGivern Consulting, project manager, advanced technology, at BC Trade Development Corp. and executive director at Business and Industr y Development BC. Sayers was previously meeting and event planner at Centre City Development Corp., program manager at Family Literacy Foundation and director, communication and development, at the Burnaby Association for the Mentally Handicapped. Lisa Niemetscheck has been appointed manager of the Forum for Women Entrepreneurs Experience. She
Careers
• Health/Medical • Hospitality/Tourism /Convention • Human Resources • Legal • Marine • Manufacturing • Media • Public • Real Estate • Resources • Sales/ Marketing • Technology • Telecommunications
Nathan Worbets, Andre Gravelle, Mandy Hansen and David Graham join the board of the Real Estate Institute of BC as president, president-elect, vice-president and secretary-treasurer, respectively
was previously marketing manager, sponsorship and events, and marketing manager, securities marketing, at HSBC Bank Canada.
•Energy
Vinko Barcot Jr. has been appointed to the board of directors of Bucking Horse Energy. He is currently a director at HSBC’s resources and energy group. He was previously director of the Global Oil and Gas Investment Banking Group of Macquarie Bank. Stella Guo has been appointed as a director and as vice-president of corporate development of Quantum Solar Power Corp. She was previously regional director for BP Solar and on the management team at British Petroleum.
•Finance
Mi ke Brooks has been appoi nted senior v icepresident, COO and member of t he execut ive at FINCAD. He is a consultant at Corpgrowth Management Inc . a nd wa s previously vice-president, corporate development, at Business Objects, vicepresident, product alliances, at Business Objects, and director, alliances and corporate development, at Crystal Decisions.
Lisa Niemetscheck is manager of the Forum for Women Entrepreneurs Experience
Mary McGivern is campaign director of team in training at the Leukemia & Lymphoma Society of Canada
Monica Sayers is campaign director of light the night at the Leukemia & Lymphoma Society of Canada
Mike Brooks is senior vicepresident, COO and member of the executive at FINCAD
•Engineering
Dianne Szigety has been appointed corporate secretary at Great Quest Metals Ltd. She is president at PubliCo Services Ltd.
stepping down as MLA of Port Moody-Coquitlam. He was previously minister of labour, minister of small business, technology and economic development, and minister of labour and citizens’ services.
Resources Inc. He is the owner and principal consultant of GeoResource M a n a g e m e nt . R o b e r t Eadie, CEO of Highland Resources has assumed the position of interim president replacing Roger Blair who has resigned.
Sam Colizza has joined Halsall Associates, Vancouver as project associate. He was previously project consultant for Spratt Emanuel Engineering Ltd., graduate civil engineer for Tobin Consulting Engineers and field engineer for Stem Engineering Group Ltd.
•Manufacturing
Anthony Andrukaitis has been appointed to the board of directors of Kelso Technologies Inc. He was previously COO of TrinityRail, president of Trinity Tank Car Inc., president and CEO of GATX Terminals Corp.
• www.employmentinvancouver.com • E-mail: employpaper@biv.com • Tel: 604-688-8828 • Fax: 604-669-2154
Work With us & groW a career Glacier Media Group is growing. Check our job board regularly for the latest openings: www.glaciermedia.ca/careers
•Media
Nancy St. John has been appointed executive produc er at P r i me Fo c u s Film, Vancouver. She was previously VFX consultant at Relativity Media, senior visual effects producer on Limitless, Season of the Witch and Immortals, and produced VFX for Disney, Dreamworks, Fox, HBO, Paramount, Walden Media, Universal and Warner Bros. Lucie McNeill has been appointed director of the public affairs office at the University of British Columbia’s Vancouver campus replacing Scott Macrae who is retiring. She was previously director of community engagement for the Vancouver Coastal Health Authority, a consultant for the Canadian Internationa l Development Agency, Simon Fraser University, Agriculture and Agri-Food Canada and the World Bank, and a broadcaster for CBC Radio in B.C.
•Public
Iain Black has been appointed president and C E O o f t h e Va n c o u ver Board of Trade after
•Real Estate
Tim Gilmour has joined Jones Lang LaSalle as senior vice-president of project and development services. He was previously director of construction at Joey Restaurant Group. Ja me s C o d e h a s b e e n appointed CFO of CanWel Building Materials Group Ltd., replacing Martin Hope who is retiring. Code has served as corporate controller for CanWel and was previously CFO at Epic Data International Inc. The Real Estate Institute of British Columbia has announced it’s new executive board of governors for 2011-2012: Nathan Worbets (president), RI, Morguard Investments Ltd.; Andre Gravelle (president elect), RI, UBC Sauder School of Business; Mandy Hansen (vice-president), RI, Ernst & Young; and David Graham (secretary and treasurer), RI, East Kootenay Realty.
•Resources
Ross Grunwald has been appointed vice-president, exploration of Highland
Adria n Rober tson has been appointed president and CEO of Silver Pursuit Resources Ltd. replaci ng Terr y Fields who has resigned. Fields will continue as a director and chairman of the company. Robertson is director at Urastar Energy Inc. and Meadow Bay Capital Corp., pilot and consultant at Adrian Roberston and a consultant and corporate pilot at Mosquito Consolidated Gold Mines Ltd. He was previously a junior geotechnical engineer at Golder Associates. Dianmin Chen has been appointed as CEO and member of the board at CaNickel Mining Ltd. replacing Kevin Zhu who has stepped down. Chen was previously president of Foshan Minco Fuwan Mining Co. Ltd., vice-president, operations, at Minco Silver Corp., COO at CITIC Pacific Mining Management Ltd., GM and executive director at Sino Jinfeng Mining Ltd., mine manager at Barrick Gold Corporation and senior geotechnical engineer at
for the record 27
September 6–12, 2011 Business in Vancouver
Lorne Caley, operations manager, Kiewit Flatiron; Martin Wyant, CEO, Share Family and Community Services; Lynn Pelletier, board chair, Share Family and Community Services; and Scott Taylor, general superintendent, Kiewit Flatiron
Marty Zlotnik, president of the board, Kids Up Front; Cindy Graves, executive director, Kids Up Front; Mark Zlotnik, Associate Partner, ZLC Financial Group; and Cindy Woo, Marketing Coordinator, ZLC Financial Group
Northparkes Mines.
community involvement in the Vancouver area. Highresolution images are also welcome. R io Tinto A lcan completed its $500,000 pledge to the Northern Medical Programs Trust, a partnership involving northern communities and UNBC to improve the education and retention of health professionals in northern BC.
Hector Garcia de Quevedo has been appointed as an adviser to the board of directors at Bravura Ventures Corp. He is an independent adviser and was previously managing director and a member of the board at Grupo Mexico, financial co-ordinator and adviser to the chairmen and executive president at Grupo Mexico and treasurer and board member of Southern Peru Copper Corp. and Americas Mining Corp. He has served on the board at Compania Perforadora Mexico, Mexico Compania Constructora, Empresarios Industriales de Mexico, IXE Banco, Transportacion Maritima Mexicana, Beechcraft de Mexico, Protego and Editorial Jilguero. Rare Earth Elements World has appointed new members to the advisory board: Alastair Neill, president of Rare Earth Industries; Dudley Kingsnorth, executive
director of the Industrial Mi nera ls C ompa ny of Australia Pty Ltd.; James Hedrick, president, Hedrick Consultants Inc.; and Russell Starr, head of Institutional Equities and director, Euro Pacific Canada. Roger Walsh, vice-president, corporate development, has resigned from Aurizon Mines Ltd.
•Technology
Michael Moskowitz has been appointed vice-president of the consumer products division at Panasonic Canada Inc. He is a member of the board of Mobilicity and was previously president and CEO of XM Canada and president, Americas International, of Palm, Inc.
Hats Off Business in Vancouver wel-
comes submissions from local small businesses and large corporations alike that demonstrate examples of corporate philanthropy and
The Aldergrove Financial Group pledged $50,000 to the Abbotsford Hospice Society to contribute to the building of Holmberg House, the first adult hospice residence in Abbotsford. The 27th annual ZLC Foundation charity golf tournament raised $50,000 for the Kids Up Front Foundation to provide 10,000 cultural and recreational experiences to local kids and their families. The 2011 Scotiabank Vancouver Half Marathon/5K Charity Challenge helped
Terry Metcalfe, board of directors vice-chair, Aldergrove Credit Union; Gus Hartl, CEO, Aldergrove Credit Union; Angelo Rea, board chair, Abbotsford Hospice Society; Debbie Lehmann, executive director, Abbotsford Hospice Society; Diane Delves, board director, Aldergrove Credit Union; and Marion Keys, capital campaign manager, Abbotsford Hospice Society
raise $25,590.35 for the British Columbia Bereavement Helpline; $22,703.51 for the Vancouver Humane Society; and $21,418 for the Engineers Without Borders Run To End Poverty. The RBC Blue Water Project donated $25,000 through RBC GranFondo Whistler to EcoTrust Canada to assist in building the conservation economy in coastal B.C. Telus donated $10,719.60 to the Burnaby Hospital Foundation to help purchase new equipment.
Got a great idea for a tech company? Have a solid business plan to back it up? Apply to GENERATOR for up to 1,000 sq. ft. of free, premium turn-key workspace at Discovery Parks Vancouver for promising start-ups in 2012.
Kiewit Flatiron donated $1370 to Share Family and Community Services.
See the GENERATOR workspace first hand and have your questions answered at the Discovery Parks Vancouver facility on Monday, September 26, 1:00 - 4:00 p.m.
Foresters, Douglas Branch, donated $660 to the Zajac Ranch for Children.
For more information and full competition rules, visit www.generatorchallenge.com.
The Royal Columbian Hospital Foundation presented a certificate of recognition to Cassady & Co. for its sponsorship of the foundation’s SHINE Gala. •
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28
Comment
Daily business news at www.biv.com September 6–12, 2011
Our View
Paying the economic penalty for living in a land of perpetually polarized politics J
ust when you think B.C. has evolved enough to value common sense for the common good over politics for partisan gains, along comes the referendum on the harmonized sales tax (HST), and, boom, you know the province is still back in the mid-’70s watching opportunities to lead and excel being squandered as polarized propaganda wins the day. A single value-added HST is a better and more equitable taxation option for the economy of the province and the country as a whole than is its doubleheaded, double-dealing GST/PST predecessor. But in this land of left versus right rather than right versus wrong, it was shrewdly seen as an opportunity to score a major political win for the anti-Liberal forces. As all who have been paying attention will already know, Gordon Campbell’s Liberals badly miscalculated and mishandled the introduction of the tax. Political punishment rightly ensued. Campbell stepped down as premier, and the Liberal juggernaut has been trying to get back on course ever since. But the anti-anything-Liberal forces determined there was need for more stick to be applied to government backsides.
Once the fizz has gone out of their celebratory sparkling wine, those who spearheaded the campaign against the HST will have run up a sizable bill for everyone else in B.C. Were there more clear thinkers in B.C. willing and able to set aside their political affiliations and focus on the dollars and sense of the single HST versus the GST/PST, it would have been an easy choice, and the province would have been spared the economic and competitive penalty of reverting to a bygone taxation era of duplication, complication and arbitrary exemption. The impacts of the August 26 referendum decision will be felt for years in B.C. and across the country, which needs a keenly competitive west coast Asia-Pacific Gateway to take full advantage of the trade opportunities being generated by China and the rest of the Far East economic engine. So once the fizz has gone out of their celebratory sparkling wine, those who spearheaded the campaign against the HST will have run up a sizable bill for everyone else in B.C. It includes: •the $1.6 billion in federal government funding provided to the province to switch to the HST payments that now must be returned to Ottawa; •the additional bureaucracy that must be rebuilt in B.C. to administer the PST; and •the 18-month taxation limbo facing B.C. and its businesses as they try to disentangle themselves from HST rules and regulations and reinstitute previous PST/GST accounting procedures. But much more than that, they will owe the province an explanation as to why they really opposed the HST and how we’re now better off backtracking to a flawed system that makes business less competitive in the global marketplace. The smart money would be on their having little of substance to offer on either of those fronts. Theirs is a victory of ideology over economics, of what is best for their political affiliations versus what is best for the business of the province and its citizenry. But for them debts of any sort are abstracts. They never pay them. Someone else always does. •
What’s your opinion? BIV welcomes readers’ opinions. All letters, including those sent by e-mail, must include the author’s name, address and daytime telephone number. Business in Vancouver, 102 East 4th Avenue, Vancouver, B.C. V5T 1G2. Fax: 604-688‑1963. E-mail: news@biv.com. We reserve the right to edit for brevity, clarity and legality.
Cartoon by Rice
Podium
Shachi Kurl Taking an unbiased look at municipal books is a good idea
M
unicipal auditor general. On their own or strung together, they’re words that would send even politically engaged voters to dreamland. But the debate raging over Premier Christy Clark’s commitment to appoint one ought to wake you up – because it’s your wallet at stake. Having an independent professional take a hard look at local books isn’t an idea born out of the blue. For years, the Canadian Federation of Independent Business has been one of several organizations in B.C. begging local governments for more transparency and a better explanation of how your tax dollars are being spent. We believe it’s a fair question, given that the rate of operating spending at the municipal level now outpaces that of growth and inflation by nearly 100%. We think it’s fair, considering municipalities are squeezing business owners for property taxes nearly three times what residential owners pay. The municipal political establishment doesn’t agree. Confronted by our and others’ questions, many mayors and councillors either shrug their shoulders, claim poverty at the hands of stingy provincial and federal governments or lecture us about the difficulties of budgeting. It’s all a little bit rich, because families and small-business owners know how hard it is to set, manage and stick to budgets. It rarely happens without the kind of honest discussions and pain local politicians seeking reelection are keen to avoid.
While the Union of BC Municipalities remains unable or unwilling to grasp the problem, taxpayers understand too well. It’s not enough for cities to assure us the municipal chequebook is being balanced at the end of the month; voters deserve to know what those cheques are being written for and whether those expenses represent good value.
We think it’s fair, considering municipalities are squeezing business owners for property taxes nearly three times what residential owners pay A municipal auditor-general could answer those questions where municipalities themselves can’t or won’t, through performance audits. We know the value these watchdogs can provide. The municipal establishment will tell you appointing and properly funding an auditorgeneral office is an expensive venture that may not be worth the money. We say audits are money well spent, and the auditor’s scope could start small. What’s wrong with having an office that carries out a handful of performance audits each year, picking a couple of small, medium-sized and large communities, perhaps a regional district in some years, and focusing on accountability and value for dollars?
Some municipal leaders might argue that such audits should instead be done by the Ministry of Community, Sport and Cultural Development, which is responsible for local government in B.C. We say a municipal auditor-general must be an independent, arms-length officer, answerable only to the legislature, and therefore to B.C. voters themselves. A watchdog, without claws or fangs, is a lapdog. One housed inside government is subject to government’s changing priorities. Independence also ensures the results of audits will be publicly reported so local media have quick and easy access to findings, and taxpayers can make their own judgments about the state of municipal spending. There are upsides for the municipalities too, through the sharing of best practices identified by an auditor general. Report cards aren’t just about red-circling what’s wrong, but highlighting what’s right. And there’s even a chance municipal auditor-general report cards might bear out the funding argument: if local governments aren’t getting their fair share, the spotlight would shine on those deficiencies. We vote for our mayors and councils on November 19. It’s a good time for you to be asking whether your local candidate supports greater fiscal scrutiny, transparency and accountability; an even better time for you to think about whether they really deserve your vote if they don’t. • Shachi Kurl (msbc@cfib.ca) is the B.C. and Yukon director of provincial affairs for the Canadian Federation of Independent Business. (Peter Ladner is on vacation.)
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comment 29
September 6–12, 2011 Business in Vancouver
City Business
Gordon Price Housing promises to be civic election’s most important issue
W
hat will be the toughest issue in the upcoming civic election? The issue that all candidates will pay lip service to, will criticize their opponents for not effectively addressing, but for which they will have little to contribute – save for bromides, vague promises and calls for senior government action? Hou si ng , of c ou rs e . A f ford able hou si ng i n particular. W i t h i n t h e C it y of Vancouver’s jurisdiction and boundaries, there’s not much hope for those who are too poor to afford the median prices of market housing but too rich to be eligible for socia l housing. Yet to seriously add sufficient supply, politicians would have to do the unspeakable, which is to change the character of stable neighbourhoods to effectively lower the value of t he existing housing stock. Here’s t he problem .
Over the last half century, from Champlain Heights to Coal Harbour, we have bu i lt much of ou r new housing on “empty” land where we didn’t have to impose on existing communities – a minimum of 2,868 units per year, the average number the city has been accommodating for the last 35 years.
To seriously add sufficient [housing] supply, politicians would have to do the unspeakable … lower the value of the existing housing stock Needless to say, they have not been equitably distributed in the 22 neighbourhoods that make up Vancouver. Dow ntow n, not including t he West End, has taken the most:
676 units on average, rising to more than 1,300 a year in the last decade. (The lowest: Shaughnessy. Average number per year? Three.) It was enough to keep the pressure off – and yet still resulted in some of the most expensive housing in Ca nada. But now we’re holding on to the little industrial land we have left – and the pressure is being felt in both the rising cost of the existing housing stock and the resistance in neighbourhoods to accommodating even the traditional increases. Take the West End. A l most ever y bu i lding higher than five storeys was built in just over a decade in the 1960s when the housing stock quintupled. A l l t hose highrises with thousands of one-bedroom apartments absorbed a generation of sing les in t he new service economy of post-war Va ncouver. Rents were
affordable. But now, in the “tradit iona l ” West End , t he number of new units per year has dropped to about 87 – half that if new towers on Burrard are omitted. The old West End has the growth rate of Dunbar – and it’s still considered too much by those opposing new development. R ates-of-cha nge bylaws have slowed growth to practically zero. Demolition and replacement of old low-rise apartments with higher densities, considered politically suicidal, is effectively discouraged. Both left- and right-wings of council are promising more “communit y consultation” – which is code for more process and less product. Yet the affordabi lit y cr u nch rema ins acute in one of the only cities in the western world seemingly immune from the Great Recession. So what are the likely outcomes?
Densit ies w i l l go up a ny w here t he y c a n b e squeezed in – along arterial roads like Cambie and Kingsway, in back lanes and in secondary suites. Helpful, but not likely in the numbers sufficient to ease housing costs. Growth and affordability will go elsewhere – particularly along the transit corridors feeding Vancouver. Fortunately, Burnaby, Su r re y a nd R ic h mond seem prepared to accommodate growth for Vancouver’s sake. Finally: in-crowding. More people in the same f loor space. That’s what happened in Vancouver
from the 1930s to the 1950s, resulting in the decaying housing stock t hat was cleared out in places like the West End for a new generation of highrises. There are already some early signs of this. It’s few people’s preferred solution, but it’s likely to happen by default – without any politician having to articulate the unspeakable. • Gordon Price (pricetags@ shaw.ca) is the director of Simon Fraser University’s city program and a former Vancouver city councillor. His column appears monthly.
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Breakfast, Luncheon, Dinner Meetings Economic Outlook by Scotiabank’s Chief Economist September 13, 2011, 5:45 PM: Scotiabank’s Chief Economist provides an update on his team’s economic forecasts and the current state of the world economy. $30 for first time guests. Coyote Creek Golf Course, 7778 152 Street. Surrey. ldaschuk@telus.net. www. fvepc.com. You and UBC: A Partnership That Can Transform Our World S eptem ber 14 , 2011, 11:45 AM: Professor Stephen Toope, President & Vice-Chancellor University of British Columbia. $69 members and guests/$96 futuremembers(+HST). The Fairmont Waterfront, Waterfront Ballroom, 900 Canada Place Way. Vancouver, BC. reservations@boardoftrade. com. www.boardoftrade.com. BCAIM Luncheon: Mobile Marketing Trends in Canada September 15, 2011, 11:30 AM: Steve Mossop, President Ipsos Reid West, and Mary Beth Barbour, Senior Vice President Ipsos Reid MediaCT, will discuss the latest trends in mobile marketing and data from the newly released “Mobilology” study in Canada. Members $49; Nonmembers $69; Student Members
$35. Four Seasons Hotel, 791 West Georgia Street. Vancouver. 604633-0033. www.bcaim.org. Business in Vancouver’s BLUE Breakfast Panel Investment in Marketing September 21, 2011, 7:00 AM: The upcoming BLUE breakfast panel will be discussing what companies are doing with their marketing budgets in this era of rapidly changing marketing solutions. Subscriber $49, Non-subscriber $59. SFU Segal School of Business, 500 Granville Street (at Pender). Vancouver. Azadeh Hollmann: 604.608.5197 or ahollmann@biv.com. http://www.biv. com/colour/index.asp. Help Your Business Client Navigate the U.S. Tax System September 21, 2011, 11:00 AM: Chartered Accountants in Canada can learn how to help clients looking at U.S. business opportunities in this seminar. $25 (includes lunch). Sheraton Vancouver Guildford Hotel, 15269 104th Avenue. Surrey. Mary Doherty, VSH Marketing Coordinator: 360.305.6177 or doherty@vshcpa.com. http:// vshvancouverseminar.eventbrite. com/.
Conferences, Conventions, Tradeshows Real Estate OUTLOOK 2012 September 10, 2011, 9:00 AM: Since its inception 19 years ago, The REAL ESTATE OUTLOOK Conference has established itself as the quintessential real estate outlook for the serious investor or homeowner. Fine central venue, seasoned presenters & quality exhibitors. 1 pair of 2 day tickets = $147 (reg. $197). Renaissance Vancouver Harbourside Hotel, 1133 West Hastings Street. Vancouver. 1.800.691.1183. http://www2.jurock.
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Tables: $1500 604 266 5437 kidsupfrontvancouver.com Please join us at Vancouver’s most fun fundraiser!
Help change a child’s life Since 2004, Kids Up Front has provided arts, culture, sports and recreation to local kids in need.
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com/outlook2012/index.html. YWCA Health + Fitness Centre Open House September 12, 2011: The YWCA Health + Fitness Centre is one of downtown’s most popular corporate facilities. Join us for the Open House and enjoy some complimentary workouts. Ask about our September promotion. Free!. 535 Hornby Street. Vancouver. 604895-5777. ywcahealthandfitness. com. The World MoneyShow Vancouver September 19, 2011, 8:30 AM: Learn how to best position your portfolio for profit in 2011 and beyond. As this new era of investing unfolds, smart investors know it’s imperative to stay informed and educated. Free admission. Vancouver Convention Centre, 1055 Canada Place. Vancouver. 800-970-4355. http:// www.moneyshow.com/tradeshow/ vancouver/world_moneyShow/ main.asp?scode=023199. 7th Annual Connections to Employment Job Fair September 21, 2011, 10:00 AM: Exhibitors include WorkSafeBC, Sears, Staples, Canada Safeway, Home Depot, London Drugs, Dairy Queen/Orange Julius, Coast Plaza Hotel, Edgewater Casino, T & T Supermarket, Natural Factors, UPS Canada, Spectra Energy, JW Research, TD Canada Trust Admission is free. Vancouver Public Library, Library Square, 350 West Georgia Street. Vancouver. Carol Cordeiro, Marketing Specialist, PICS Vancouver: 604-324-7733, carol.cordeiro@pics.bc.ca. www. pics.bc.ca. Internet Marketing Conference - IMC Vancouver October 3, 2011, 7:30 AM: Expand your knowledge, improve your skills and become a better manager of digital media, marketing & communications. Connect with an international community of digital marketers. 2-day pass $995 until Sept 9th; $1195 after. Renaissance Vancouver Hotel: 1133 West Hastings St. Vancouver. Registration Support: regvancouver@risingmedia. com, 1-877-883-7345. http://www. internetmarketingconference.com/ vancouver/event-home. HR Tech Group: Human Capital Symposium October 26, 2011, 8:00 AM: Tech industry event on best HR practices to grow your business (revenue, talent, leaders). Featuring keynote Don Bell, Co-founder of Westjet Airlines. $275 before Sept 30th; $350 after. Sutton Place Hotel, 845 Burrard St. Vancouver. Allison Rutherford, HR Tech Group: 604-8742653; arutherford@hrtechgroup. com. www.hrtechgroup.com.
Courses, Workshops, Seminars Canadian Securities Course (CSC) September 8, 2011, 8:00 AM: Be qualified to apply for licensing as a mutual funds salesperson. Sign
up for the CSC at Ashton College. Contact an Admissions Adviser now. Ashton College. Vancouver. 604899-0803 / info@ashtoncollege. com. www.ashtoncollege.com. 20/20 SMART Session: Effective Workplace Learning September 13, 2011, 8:00 AM: In this Smart Session, you will benefit from new insight into practical and effective workplace learning practices tailored to fit the needs of small to medium sized employers. $45 CME Members; $65 Nonmembers. Hampton Inn & Suites, 19500 Langley Bypass (Route 10). Surrey. Kimberly Hall: kimberly. hall@cme-mec.ca, 604-713-7809. www.bc.cme-mec.ca. Positive Thinkers Toastmasters Club Speech Contest September 13, 2011, 7:30 PM: Positive Thinkers Toastmasters Club holds its humorous speech contest and table topics impromptu speech contest. Toastmasters is “Where Leaders Are Made” and members learn communications and leadership skills in weekly meeting. Guests welcome. No charge. BC Hydro Building, 2nd Floor Auditorium. Vancouver. m_ miller77@hotmail.com. http://www. positivethinkers.webs.com/. Foundation in Sustainable Community Development September 15, 2011, 9:00 AM: This course addresses the confusion surrounding sustainability and presents the certificate’s vision of sustainable community development and related principles. $900. 515 W. Hastings St. Vancouver. Joshua Randall, 778782-5254. http://www.sfu.ca/city/ course1popup.htm. Achieving Growth and Building Value: Strategies for Business Owners September 15, 2011, 6:30 PM: Learn how to operate more efficiently, make better business decisions, make managers more effective and turn business success into personal wealth. Speakers: Dave Lee and Mark Wardell. No Charge. 100 - 1676 Martin Drive. White Rock. dave_lee@scotiamcleod.com. www. dave-lee.ca.
September 16, 2011). 800 - 885 West Georgia Street. Vancouver. Jessica Mitchell at (604) 687-5700, ext 4229 or jcm@cwilson.com. http:// www.cwilson.com/DonSihota/ SellingYourBusiness/. Social Media Launchpad September 23, 2011, 9:30 AM: No-nonsense Internet Marketing training that will cover the most impor tant things you need to know about Social Media Marketing for business (filtering out all the noise). $110 + HST for THREE hours of hands-on training. Vancouver Public Library, Peter Kaye Room. Vancouver. http:// w w w. c u c u m b e r m a r ke t i n g . com/education. http://www. c u c u m b e rm a rk e ti n g . c o m / education. CAPS Vancouver Presents: Nancy Juetten - Prosper in the Spotlight: Are you Rockstar Ready? September 17, 2018, 8:30 AM: Get ready to prosper in the spotlight as a speaker. For emerging and experienced speakers. Online: $ 20 memb ers and 1s t time guests, $40 returning guests. Vanouver Museum, 1100 Chestnut St. Vancouver. Ron Grender, CAPS President: 778-688-7065. www. capsvancouver.com.
Fundraisers, General Events Women Against MS Gala Breakfast October 13, 2011, 7:00 AM: There is no known cure for multiple sclerosis which affects women three times more often than men. Funds raised support MS research. Special guest speaker Cassie Campbell-Pascall. $125 per ticket $1,000 table for eight. Terminal City Club, 837 West Hastings Street. Vancouver. Kristina Keith: 604-602-3220, Kristina.Keith@mssociety.ca. www. mssociety.ca/bc/wams.htm.
Gala Events
CTT+ Train the Trainer Course September 19, 2011, 8:30 AM: Anybody who needs to train groups of people in an effective and efficient manner can benefit from this course for those looking to show instructional presentation skills for their MCT designation. $995/person. 555 Seymour Street. Vancouver. Bart Simpson: 888480-1629, bart@trab.com. www. trab.com.
Fastest Growing Awards Ceremony September 27, 2011, 5:30 PM: A gala awards dinner honouring the Top 100 Fastest Growing Companies in B.C. This event coincides with the publishing of the Top 100 Fastest Growing Companies list. Subscriber $125, Non-subscriber $149. The Fairmont Waterfront Hotel, 900 Canada Place Way. Vancouver. Azadeh Hollmann: 604.608.51.97 or ahollmann@biv.com. http://www.biv. com/events/top100fastestgrowing/ index.asp.
Selling Your Business Featuring Don Sihota, Business Lawyer, Clark Wilson LLP September 22, 2011, 8:30 AM: If you’re a business owner over 50, a business succession plan is essential. Buyers are now looking for great businesses - don’t be left behind! Learn how to get the best price, negotiate the best terms and avoid critical errors when you sell your business. $225 ($265 after
PWN 15th Anniversary Celebration September 29, 2011, 5:00 PM: Come celebrate PWN’s 15 years of growth and expansion, applaud the successes of our members, and pay special tribute to those gems in our business community who have contributed significantly to the advancement of women in business. $75.00. Please register by August 29. Fairmont Waterfront Hotel. Vancouver. Please make
www.bivdatebook.com cheques payable to Hayley Renfrew c/o Fasken Martineau, 2900-550 Burrard St. Vancouver, BC, V6C 0A3. Big Sisters Gala October 6, 2011, 5:30 PM: Join Big Sisters for an inspiring evening as we raise funds to help match 180 girls on the waitlist with a supportive mentor. Event will feature a champagne reception, auctions, dinner and live entertainment by Paramount. $250. Pan Pacific Hotel (300 - 999 Canada Place). Vancouver. Kelly: 604-8734525 x302 or kmorrison@bigsisters. bc.ca. www.bigsisters.bc.ca. BCIT Distinguished Alumni Awards October 27, 2011, 5:45 PM: The 9th annual BCIT Distinguished Alumni Awards celebrates and honours BCIT alumni and faculty who have notable achievements in their careers and community endeavours. Tickets $125, table of 10 $1,200. Four Seasons Hotel - 791 W. Georgia St. Vancouver. Phone: 604-432-8847, email: alumni@bcit. ca. bcit.ca/alumni. 2011 T. Patrick Boyle Founder’s Award November 17, 2011, 5:30 PM: The Fraser Institute will be honoring Darren Entwistle, CEO & President of Telus, with the T. Patrick Boyle Founder’s Award at a gala reception on November 17th. Sponsorship, single tickets, and premium/ standard tables available. Tickets: $500/$700, Table: $5000/$7000. Vancouver Convention Centre East, 1055 Canada Place. Vancouver. 604-688-0221 ext 537 or paige. mackenzie@fraserinstitute.org. http://www.fraserinstitute.org/ events-multimedia/eventdisplay. aspx?id=17774.
Golf Tournaments The B2Gold Big Brothers Golf Classic September 26, 2011, 10:30 AM: Join us at BC’s premier charity tournament for a day of golf at the home of the 2011 RBC Canadian Open, followed by a lavish cocktail reception, silent auction, banquet dinner and live auction, benefiting Big Brothers of Greater Vancouver. $575. Shaughnessy Golf and Country Club, 4300 SW Marine Drive. Vancouver. golf@bbgvf. com or 604.876.2447 x244. www. bigbrothersvancouver.com.
Networking functions Vancouver AM’s 35th Birthday Celebration September 23, 2011, 5:00 PM: Celebrate Vancouver AM’s 35th Birthday! You are invited to Va n c o u v e r A M To u r i s m Association’s Reunion of the Decade. Entertainment by Dal Richards’ Trio $50 + HST - Cash Bar. Terminal City Club - 837 West Hastings Street. Vancouver. 604738-5506; office@vancouveram. ca. www.vancouveram.ca. •
Profile
September 6–12, 2011 Business in Vancouver
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David Labistour By Glen Korstrom
ountain Equipment Co-op CEO David Labistour sidesteps obstacles as he manoeuvres around the renovated auto parts warehouse that has served as his company’s headquarters since 1999. The 43,000-square-foot site on West Fourth Avenue appears large at first glance. Closer inspection, however, reveals that many of the 228 employees who work in the facility have little space and others have cubicles piled high with papers or MEC products. Hallways are narrow and meeting space is sparse. “We’re really cramped for space,” Labistour tells a visitor as he opens the door to a storage room. “We’re zoned light industrial so the city requires a certain amount of space be used as a warehouse. What we need, though, is more office space.” The outdoor equipment manufacturer and retailer’s space constraint will be solved by 2014 when MEC moves to a larger built-to-suit headquarters at 1077 Great Northern Way on land that the company purchased in 2008. Proscenium Architecture has applied for the City of Vancouver to rezone MEC’s Great Northern Way site to increase the amount of office space allowed and MEC submitted a detailed development proposal in July. Labistour expects to raise company revenue more than 5% to $275 million this year and for his company to continue to increase sales and new hires in the years ahead. “We have about 1,800 employees, and we’re hiring quite a few people now,” he said. The 40-year-old company’s 15th store is set to open in London, Ontario, early this fall, and Labistour envisions more stores opening in the years ahead. “We don’t look to grow. We look to improve our service. That’s a different paradigm. Improving service means that you pursue development and growth in a different way.” The rapid increase in online sales makes it easier for MEC to track where customers live and where successful future locations could be. Offering free shipping has helped its online offerings rise to be 13% of overall sales. Labistour calls his company’s free shipping offer a “trial,” but he readily admits that major competitors – L.L.Bean Inc., Backcountry.com and even Lululemon Athletica Inc. – offer free shipping and that it is something that consumers increasingly expect. Customers also expect outdoor adventure clothing to be more fashionable
than it was 10 years ago. Bottom line: MEC has had to upgrade its fashion designs. “We’ve always had high-quality, functional products, but they’ve always been slightly pedestrian,” Labistour said. “We’re not trying to be Lululemon. We’ve always provided great products for people who live outdoor lifestyles. What Lululemon has done, though, is show us that people who are active want stuff that looks attractive.” Dressed casually yet fashionably in a loose-fitting summer shirt, Labistour is the archtype of the kind of customer his company is targeting. His spacious office contains telltale signs of his personal passion for outdoor living: skis and a snowboard are propped in one corner across from a bicycle resting against a wall. His current favourite past-time is kite-boarding, which is similar to water surfing but employs a large kite instead of a boat to pull board and rider. MEC’s customers, he believes, similarly split themselves between a lot more outdoor activities than their predecessors in the 1970s and 1980s who spent most of their recreational time rock climbing. It was snowboarding, however, that first prompted Labistour to visit Vancouver. The South African made regular trips to California’s Lake Tahoe to ski and visit a friend. In 1997, he decided to explore the rest of the U.S.A.’s Pacific Northwest and wound up in Vancouver, where he immediately felt at home. By 1999, Labistour’s immigration to Canada was approved and he arrived jobless, without contacts and unsure of his future. “Sometimes in life, you’re ready for a change,” the 55-year-old said. “I didn’t leave [to get away from] Capetown. I moved to Vancouver.” In South Africa, Labistour held senior merchandising positions with Woolworths and was the head of apparel, in charge of design, procurement and production for Adidas’ sub-Saharan Africa division. Before joining MEC, he was a consultant for Vancouver-based Aritzia, where he helped devise product development structures and processes. “He’s very creative and has a lot of courage to do the right thing [for the environment],” said MacKay & Associates CEO Nancy MacKay. M EC donate s 1% of g ros s sales to causes such as wilderness conservation. “On the passion scale, he’s way up there,” MacKay said. “He lives
Peak performer Focused on ensuring his company offers better service to its clientele, Mountain Equipment Co-op CEO looks east for expansion opportunities
Dominic Schaefer
M
and breathes the business. He’s very active and is a strong advocate for the environment and of people leading healthy lifestyles.” She has a better sense of CEO strengths than most people do given that her company coaches and facilitates eight CEO networks made up of 100 CEOs across Canada. Since Labistour assumed MEC’s corporate reins at the start of 2008, he has expanded some internal initiatives such as a kayak-loan program under which employees can book kayaks and canoes for the weekend for free. He has also expanded the business by opening new stores in Burlington and Barrie, Ontario, and Longueuil, Quebec. Those initiatives have increased the share of overall MEC revenue that comes from Ontario to 27% while reducing percentage that comes from B.C. to 25. B.C.’s reduced influence on overall MEC sales is one reason why Labistour is not concerned that B.C. voters
rejected the harmonized sales tax (HST) in the recent referendum. He supported the HST because he believes it: •taxes the wealthy more than the poor; •improves business productivity; and •taxes the consumption of wealth instead of the creation of wealth. MEC manufactures about 50% of its products, but, given that only 17% of that manufacturing is done in B.C., the company will not be hit as hard by the rejection of the HST as manufacturers who will lose HST tax credits whenever they buy new equipment. Most MEC products are subject to the future 7% provincial sales tax (PST) so he said there will be little cost saving for shoppers. “Without the HST, it will be a bit more complex,” he said. “But we trade in most provinces across Canada, so we already manage different taxes across jurisdictions.” •
Mission: Improve service and meet consumer demand for more fashionable clothing Assets: Experience working in fashion and retail and an active lifestyle that matches his company’s target customer base Yield: A growing company that plans to open its 15th store in early fall
gkorstrom@biv.com
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Check them out at www.biv.com/profiles
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Daily business news at www.biv.com Business in Vancouver September 6–12, 2011
BC’s oldest law firm is...