November 2012 - Business in Calgary

Hal Kvisle

Eric Harvie (posthumous)

David O’Brien

Calgary Business Hall of Fame Junior Achievement celebrates the 2012 Calgary Business Hall of Fame laureates

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• Calgary’s Top Industries

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Contents PUBLISHERS

Tim Ottmann & Pat Ottmann

EDITOR

Derek Sankey

Volume 22 • Number 11

On our cover…

2012 Calgary Business Hall of Fame Laureates

COPY EDITORS

Lisa Johnston & Nikki Mullett

NOVEMBER 2012 $3.50

Jessi Evetts jessi@businessincalgary.com

CONTRIBUTING DESIGNER Kenji Doshida

ADMINISTRATION

www.businessincalgary.com

Art Director

Nancy Bielecki nancy@businessincalgary.com Sarah Schenx Info@businessincalgary.com

REGULAR CONTRIBUTORS Richard Bronstein Frank Atkins David Parker Lonnie Tate Mary Savage

THIS ISSUE’S CONTRIBUTORS John Hardy Meghan Chevrette-McIvor Andrea Mendizabal Heather Ramsay Benjamin Freeland Stewart McDonough

Stan Grad

David O’Brien

Calgary Business Hall of Fame

PHOTOGRAPHY

Cover photo courtesy of Junior Achievement®

ADVERTISING SALES

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Junior Achievement celebrates the 2012 Calgary Business Hall of Fame laureates

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DIRECTORS OF CUSTOM PUBLISHING

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Bernie Cooke bernie@businessincalgary.com Kim Hogan kim@businessincalgary.com

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• Refining

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Evelyn Nykyforuk evelyn@businessincalgary.com Rachel Katerynych rachel@businessincalgary.com Carla Wright carla@businessincalgary.com Bobbi Joan O’Neil bobbi@businessincalgary.com Brent Trimming brent@businessincalgary.com Renee Neil renee@businessincalgary.com

Eric Harvie (posthumous)

Hal Kvisle

93

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Cover 43 • Calgary Business Hall of Fame

Junior Achievement celebrates the 2012 Calgary Business Hall of Fame laureates

By Derek Sankey

This Month’s Features 25 • Canada’s Refining Dilemma

Should we be refining more? Duelling experts and passionately biased insiders of Canada’s oil and gas industry drastically disagree.

By John Hardy

Business in Calgary Magazine

32 • Housing Boom or Housing Bust Is Calgary an exception to Canadian trends?

By John Hardy

View our electronic issue of this month’s magazine online at www.businessincalgary.com

8 • November 2012 BUSINESS IN CALGARY | www.businessincalgary.com

ur n

Strategically Plan Your Company's Succession

Sheri Mac and Presid

Ask an Expert Sheri MacMillan, Senior Trust & Estate Practitioner and President of MacMillan Estate Planning Corp.

Q A

I am considering succeeding my business to my son, what things should I consider prior to doing this?

Remarkably, seventy percent of family-owned businesses in Canada fail to succeed to the next generation. In order to avoid a company’s demise, it is vital to prepare an effective business exit plan. Proactively taking the right steps now will help to ensure a smooth transition, leading to greater financial security for retirement.

Ask

Q A

Q A

I am considering succeeding my business to my son, what things should I consider prior to doing this?

I am wha

Rem

Remarkably, seventy percent of familyowned businesses in Canada fail to succeed bus to the next generation. In order to avoid a generation. company’s demise, it is vital to prepare an effective to prepare a business exit plan. Proactively taking the right steps the right ste now will help to ensure a smooth transition, leading Business owners often avoid planning due to the number of to greater financial security for retirement. Business emotionally charged issues that are associated with passing leading to g on the torch; however, retiring from a business does not have owners often avoid planning due to the number to be a difficult experience. By consulting with an expert, a of emotionally charged issues that are associated Business ow business owner can determine the best approach within the with passing on the torch; however, retiring from a scope of his or her unique circumstances. emotionally business does not have to be a difficult experience.

Lacking the correct knowledge, many owners will By consulting with an expert, a business owner oncan the torch unintentionally make choices that are to their companies’ determine the best approach within the scope of his to be a diffic detriment. When a business owner gives shares of a or her unique circumstances.

Lacking the correct company directly to a successor, that owner is putting ow knowledge, many owners will unintentionally business make their financial security in harm’s way, especially if he or she choices that are to their companies’ detriment. When is relying on the revenue generated by the company for scope of his retirement. However, by giving a successor shares, by way a business owner gives shares of a company directly of a trust, a business can be effectively protected against to a successor, that owner is putting their financial Sheri MacMillan Lacking th bankruptcy, divorce or a lawsuit. I recommend that a trust security in harm’s way, especially if he or she is Senior Trust & Estate Practitioner, be used in conjunction with an estate freeze, when both unintention President of Planning relying on the revenue generated by the company for mechanisms are MacMillan utilized within Estate a succession plan, notCorp. only and Host of The Strongroom on QR77 retirement. However, by giving a successor shares, detriment. are assets protected, but unnecessary taxes may also be deferred or avoided completely. by way of a Trust, a business can be effectively company d protected against bankruptcy, divorce or a lawsuit. I Succeeding your business requires very strategic planning, their financ that a Trust be usedbefore in conjunction with an estate freeze, when both mechanisms are utilized Irecommend recommend consulting a professional making any decisions. within a succession plan, not only are assets protected, but unnecessary taxes may also be deferred or is relying o avoided completely. Succeeding your business requires very strategic planning, I recommend consulting retirement. a professional before making any decisions.

hosting a complimentary uesday, April 28th.

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Corp. will MacMillan willbe behosting hostinga complimentary a complimentary visit Wine and Cheese Seminar on Wednesday, November 28th, at 7:00 pm. st , 2012 Wine and Cheese Seminar on Wednesday, February 12012 l (403) 266-6464.

of a trust, a bankruptcy be used in mechanism are assets p deferred or

Contents

Volume 22 • Number 11

(This Month’s Features cont’d)

34

34 • Investing in the United States

Investing State side - determine your motivation and do your homework

By Heather Ramsay

37 • Best Laid Plans

The global financial crisis still looms large over the financial planning industry. But has the public learned its lesson?

By Benjamin Freeland

49 • ‘Smart’ Manufacturing is the Way of the Future Sector is ‘surging’ on oilsands activity, diversification

By Derek Sankey

53 • Calgary’s Top Industries

By Business in Calgary Staff

HRAC Newsletter 74 • Fall 2012

Company Profiles

37

85 • Inland Audio Visual celebrates 75 Years 90 • Chamco: 50 Years in the Making Credibility, expertise, knowledge and experience

49 Regular Columns 12 • Trudeaumania – Redux?

By Richard Bronstein

14 • Accountability

By Frank Atkins

16 • Alberta Saving is a Fallacy

By Lonnie Tate

93 • Leading Business 97 • The Calgary Report

Current developments for Calgary Telus Convention Centre, Tourism Calgary, Calgary Economic Development, and Innovate Calgary

102 • Marketing Matters

By David Parker

10 • November 2012 BUSINESS IN CALGARY | www.businessincalgary.com

53

AN INVESTMENT IN SMART

global economy. This public and private sector collaboration will act as a catalyst to help Canada address its innovation and productivity deficit thereby accelerating the commercialization of Canadianled research and development so

Over the last twenty years or

within all that noise are patterns

to determine the number of

Canadian businesses can excel in global and domestic markets.

so a slowing of investment

and potential opportunities that

chickens needed to meet the

in research and innovation,

only analytics can reveal. A 2011

demands of the province.

machinery and equipment, and

MIT Sloan Management Review

This effort has reduced farm

specifically, information and communications technology has held back Canada’s usual

The IBM Canada Research and Development Centre is a result of a collaboration with Federal and Ontario governments and seven universities.

progress in the world. The Conference Board of Canada recently awarded our performance for productivity a C rating and a D rating

Analytics can help drive efficiency

for innovation. And while

and productivity, and foster

Canadian businesses held back, the rest of the world surged.

business innovation to create new

Rapidly emerging economies

marketplaces, smarter business

like Brazil, Russia, India, and

services and profitable new revenue

of course China embraced

streams. Providing these services

the great potential that

to innovators can profoundly

technological investment can

change the way a company is

bring. As a result there is a

experienced by customers,

pronounced shift in global

partners and by society.

economic power away from so-called developed, mature economies like ours. But when

and IBM study concluded that

you strip away all the ratings, all

organizations that choose to

the numbers and all the rhetoric,

embrace analytics are 2.2 times

a tantalizing opportunity to

more likely to substantially

think smartly about Canada’s

outperform their peers. We

future emerges. We are looking

also discovered in the 2012

to our leaders in business and

IBM Global CEO Study that

IS A SMART INVESTMENT.

in government to join us in

Canadian companies are falling

motivating the progress and

inspection workload by 66 per

behind their global peers in data

innovation of this country.

cent and created an annual cost

in progress is the best way

access, insight and translation

savings of roughly $200,000.

to make Canadian businesses

THE DATA OF DATA.

into action. Not surprisingly,

It has also helped ensure the

more competitive, our economy

we believe that big data is a big

safety and availability of more

more robust and Canadians an

opportunity for Canada.

than 816 million eggs produced

important part of a Smarter Planet.

The world is increasingly being

by the province each year.

defined by big data. Data is an organization’s most valuable

Join the conversation and learn

asset after, of course, its people.

WHAT COMES FIRST, THE CHICKEN OR THE DATA?

Over 2.5 quintillion bytes of data

The British Columbia Egg

are created every day. Hidden

Marketing Board recently

Similarly, in our commitment

started to apply IBM analytics

to driving progress in Canada,

to the production of eggs in the

IBM recently announced an

Over 90% of data was created in the last two years.

At IBM, we believe that investing

more at: linkedin.com/company/

IF YOU BUILD IT, THE DATA WILL COME.

province. The Board is now

investment of over $210 million

able to integrate and analyze

into the IBM Canada Research and

production and inspection data

Development Centre. IBM has

from hundreds of BC farms and

declared its goal to help advance

perform complex calculations

Canada’s competitiveness in the

conversations

LET’S BUILD A SMARTER PLANET.

IBM, the IBM logo, ibm.com Smarter Planet, and the planet icon are trademarks of International Business Machines Corp., registered in many jurisdictions worldwide. A current list of IBM trademarks is available on the Web at ibm.com/legal/copytradeshtml. © International Business Machines Corporation 2012.

Trudeaumania – Redux? • Richard Bronstein

By Richard Bronstein

Trudeaumania – Redux?

C

onventional wisdom has it that Justin Trudeau doesn’t stand a chance.

That if he becomes leader of the Liberal Party of Canada, he’ll be the third disaster in a row for that once proud but now down-and-out organization.

Leading opinion makers say he doesn’t have the same smarts as his famous father, that he has never held a position of significant responsibility, and that his hair is vastly superior to his political intelligence. Those are just some of the small criticisms.

The major knock against the 40-year-old Justin is one word: T-r-u-d-e-a-u. The name of the father. The once loved prime minister, who was a rock star in Canadian politics, left behind much bitterness. In the West, Pierre Trudeau’s national energy program was a horseman of political apocalypse. Among francophones, he was a traitor for bringing home the constitution without Quebec’s assent.

It is said there is such inbred loathing to the name that if a Trudeau ever becomes a national public figure again, women and children will not be safe on the streets, the 10 biblical plagues will descend on Canada, hell will freeze over and the Toronto Maple Leafs might even win the Stanley Cup – surely an ill omen.

I’m not saying that Quebec and the West did not have real issues with Prime Minister Trudeau at the time. But that was a generation ago. All the people today who supposedly carry Trudeau hatred in their DNA, don’t have any idea what the NEP or the constitutional debates were about.

There are nearly 10 million more people in Canada today than in the early 1980s. Many of them are relatively new immigrants who are working hard to make a success in Canada.

Others, like my kids, grew up in a relatively prosperous Calgary and are trying to establish careers for themselves. They don’t care what happened 40 years ago. And neither do I. So to suggest that Justin Trudeau carries some kind stigma from the past that disqualifies him from serious contention is simply nonsense. It reflects a lack of imagination by a core of veteran columnists and pundits who, like stubborn dogs, just won’t give up on a bone that is old, dried and chewed well past its time.

12 • November 2012 BUSINESS IN CALGARY | www.businessincalgary.com

If Justin Trudeau does not succeed in the tall order of revitalizing the Liberal party, it will be because of his own doing, and not because of The Curse.

Some of it will depend on luck, circumstances and cards that have yet to be dealt from the deck of unknown future events.

On the other hand, there are serious new tides and currents enveloping Canadian society and among the nations of the world today. If a new leader can tap into that growing angst, if he or she can articulate a coherent set of values and ideas for the Canada of 2020, and if that new leader has the right personality and style to rally people, there are people ready to listen.

You might have heard the Arctic ice cap is melting as never before. Someone has to take a stand and say that it’s not because of sunspots and lead the nation on a sensible plan to reduce greenhouse gases and develop strategies to cope with weather-caused catastrophes.

The middle class in most western countries is being beggared. Owning a home is out of reach of most university graduates today. For many families it takes two incomes today to have what their parents did with one income.

Meaningful, reliable jobs are scarcer than hen’s teeth. While the richest one per cent already receives 15 per cent of total earned income, neoconservative ideology believes they deserve even more tax breaks.

Then there is the massive, ongoing rape of the public purse by those in positions of trust. Whether it’s Mafioso in the Quebec construction industry to politicians and senior public servants and their grandiose salaries, pensions, benefits and expense accounts, there is significant ethical rot in public administration.

I don’t know if Justin Trudeau is the right person to challenge the tired old ways. But I have a feeling that there are many people today who have an intuitive sense of our looming social disorder and whose ears are pricked in the hope of hearing a new voice that speaks to them about a positive agenda based on rational innovation.

You can only darn a pair of old socks so many times. We need new socks. There is an opportunity for a quantum leap in leadership. BiC

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Accountability • Frank Atkins

By Frank Atkins

G

regory Mankiw of Harvard University has written one of the bestselling Principles of Economics textbooks on the market today. Prominent in the book is what economists refer to as “Mankiw’s Ten Principles of Economics.” Principle No. 4 is the seemingly innocuous statement that people respond to incentives.

Some aspects of this statement are quite obvious. If you want to sell your house, you wait until the price is high.

Other aspects of this statement appear to be less obvious, and quite important. For instance, suppose that you made a bad investment on the stock market and you lost money. The fact that you lost money is the incentive to correct your behaviour. Ask yourself what would happen if you made a bad economic choice, but the government compensated you, rather than let you face the consequences. In this case, the incentive to behave properly, that is to not repeat the same mistake in the future, would be removed. In this situation, you would no longer be accountable for your actions. This would perpetuate this bad behaviour and result in an economy that does not perform as well as it could.

Two recent new items are actually linked together, under the broad topic of incentives and accountability, although I doubt if you will ever see them linked in the media. First, in Edmonton, a teacher was fired for refusing to implement the non-zero policy. Second, some Progressive Conservative (PC) MLAs were (sort of)

Accountability The current government has simply applied a political solution. Political solutions seldom get at the root of a problem, and this is no exception. forced to pay back money from the infamous no-meet committee.

First, in Edmonton, Lynden Dorval, a physics teacher, was fired for refusing to abide by the non-zero rule. This rule states that, if a student does not hand in a piece of work, the student cannot be given a zero for this lack of work. This is what I would call incentive incompatible. What has the student learned from this rule? It is OK to not hand in work, as there will be no academic punishment? This is not good behaviour to be teaching to our students. Ultimately, these students will have to fend for themselves in the real world. How long would a student last at a job if they ignored deadlines for work that must be done? Some students are responding to the incentives that have been put in place by the non-zero rule. But these incentives are contrary to the kind of work ethic that we should be instilling in students.

That is, some students are learning that you do not have to be accountable for your own actions.

The second news item involves Alberta MLAs who were paid to sit on a committee that never met. This became an election issue and Premier Redford announced during the cam-

14 • November 2012 BUSINESS IN CALGARY | www.businessincalgary.com

paign that the MLAs would have to pay back the money. It was recently announced that the money was paid back, but not by the individuals MLAs who received compensation for not working on the committee. In what can only be described as a tremendous show of socialist thinking, all current PC MLAs were forced to pay into a fund, and the proceeds were used to pay back the money “owing” to the taxpayers of Alberta. This misses the whole point of the issue. Yes, Alberta taxpayers have been compensated for this transgression. However, there is nothing here that will prevent this mismanagement of taxpayer money from happening again. The PC members who were on the committee actually made a monetary gain in this transaction. Once again, no one is being held accountable for their behaviour. The current government has simply applied a political solution.

Political solutions seldom get at the root of a problem, and this is no exception. BiC Frank Atkins is an associate professor of economics at the University of Calgary and a member of the advisory board of the Institute for Public Sector Accountability.

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Alberta Saving is a Fallacy • Lonnie Tate

By Lonnie Tate

Alberta Saving is a Fallacy

A

few weeks ago, the baby in our family (he is 42 and an economics guy) and I shared a golf cart for two days in succession. I learned a little … and have some new insight into the Alberta economic structure.

In so many words, my kid said: “Give your head a shake, Dad … your eyes are stuck.” And so are the eyes of most Albertans. A pretty much direct quote from the number one son is: “Oil is at $100 a barrel; we have full employment; every economic indicator is positive; and the province has just announced that it is likely to have a $3,000,000,000 deficit in the current year. What is wrong with this picture?”

He answered his rhetorical question. With everything in the economy going north, the business of the province is going south. And the infrastructure things that government is supposed to do are also going south … think roads, schools and health care. Now if the government were looking after those, the annual deficit would be even more egregious without seriously adjusting revenues and the current way we spend money.

As our discussion deepened, we both wondered how the Alberta government could say that it was likely there would be a surplus next year. We know it is conducting public forums called Dollars and $ense (I didn’t make that up) to ask Albertans how much they want to save for the future. Talk about Rome burning while the emperor is fiddling.

Actually, there is a whole orchestra of fiddlers. Just read Measuring Up – Progress Report on the Government of Alberta Strategic Plan – it is a whole symphony of utter nonsense on how our province is meeting its strategic objectives. It is 64 pages of really bad music that includes whole cadenzas of praise for meeting virtually every target. While running up a $3-billion deficit?

It is time to go back to basics. Throw the people who dream up this stuff and then write about it overboard.

My guess is half our government is management running the half who actually may do some good. So for

16 • November 2012 BUSINESS IN CALGARY | www.businessincalgary.com

starters … I would reduce management positions by half.

And throw out the nonsense that we need to save because non-renewable resources are running out. Let me count the ways that make that a dumb statement: • First – non-renewable resources are not running out … higher prices create reserves … the oil and gas is there … they are just not there at lower prices; • Talk to anyone in the natural gas side of our energy world and they will tell you there will be a glut of gas for the foreseeable future; • Getting any of our huge reserves to market is going to be another major concern … we will not run out if we cannot ship it; and • Market prices will manage supply, alternate energy development methods will continue to improve and efficient, alternate sources of energy will come into the market over the next 30 years.

The bottom line is that everyone reading this article will have passed from this earth before we get close to being out of oil and natural gas.

Then there is the unstated assumption that if we save, the nitwits running the province can invest at a profit.

That assumption is a big stretch. Our current operating budget runs to $43 billion. Ten years from now it will be $60 billion.

Let’s say the government wants to make a significant dent in that number – say 10 per cent. We would need $6 billion in annual earnings from the savings. At a five per cent rate of return, the fund will need to be $120 billion. Fat chance! Neither that rate of return nor saving that amount of money will materialize. So even if we could save, it would not make much of a difference. The “How to Save” survey is a fool’s game.

A long time ago, one of my terrific partners coined the term “fuzzy thinking”. It is one of my favourites and seems so appropriate here. We are victims of muddled thought as bureaucrats struggle to justify their existence. I suppose they think we will succumb to the thought of being warm and fuzzy. I hope we don’t. BiC

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© 2012 Ernst & Young LLP. All Rights Reserved.

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Off the Top • News

CMLC celebrates opening of RiverWalk – Phase lll Public promenade connects around Fort Calgary Calgarians who have come to enjoy their recreational bike rides and strolls along RiverWalk have more to celebrate as Calgary Municipal Land Corporation (CMLC) announced the completion and opening of Phase lll of the infrastructure program. RiverWalk now stretches two kilometres along the Bow River from the Centre Street Bridge, through East Village, around Fort Calgary to 9th Avenue SE. Phase lll of RiverWalk, which represents 423 linear metres of pathway, includes a small gateway plaza that opens near 9th Avenue SE and showcases Fort Calgary’s traditional buffalo statue; a small interpretive area at the rivers’ confluence with signage curated by Fort Calgary, and two small step-down decks so users can move off the path to relax and reflect.

“We’re halfway there,” notes Michael Brown, president and CEO, Calgary Municipal Land Corporation (CMLC).

“RiverWalk is a four-kilometre-long pathway that links neighbourhoods from Centre Street all the way to Lindsay Park. This phase marks the midpoint in its delivery.”

As per the previous two phases of RiverWalk, Phase lll has separate, delineated paths for cyclists and pedestrians.

The divided commuter bikeway and the pedestrian pathway reflect the same surfaces and materials as previous phases; however, the pedestrian route is much more relaxed in terms of its meandering curves and absence of crossings and impediments. Plantings and vegetation include native and ornamental grasses that are reflective of the Prairies and Bow River landscape. In tribute to the North West Mounted Police, who founded Fort Calgary, red cube-styled seating is featured along the path.

“As safety is a primary design principle of the RiverWalk master plan, we have continued with our theme of lighting in this phase,” adds Brown. “Simple and elegant silver poles illuminate the path and the red cubed seating is internally lit adding a special nighttime effect along the riverbanks.”

Calgarians have played a major role in shaping RiverWalk’s design and delivery. In 2008, CMLC sought public

input on the project’s design through a robust public engagement program. The result has been the creation of a key public amenity for Calgary, which delivers safety through design elements such as dedicated cycle and pedestrian lanes, emergency services call boxes and enhanced pathway lighting. RiverWalk Plaza has become an active programmed outdoor space attracting Calgarians and prospective buyers to the riverbanks for special festivals, concerts and open-air craft markets.

In 2013, CMLC begins an extensive planning period for the final phases of RiverWalk that will see the path continued south along the Elbow River toward Lindsay Park. The schedule for that work has yet to be determined.

The vision for East Village is that of a thriving, mixed-use, inner-city community where 11,000 new residents will live, work and play. The area boasts key cultural and recreational amenities, like RiverWalk as well as the National Music Centre, St. Patrick’s Island and the proposed New Central Library.

Calgary Municipal Land Corporation (CMLC) is the developer responsible for managing the rejuvenation and redevelopment of East Village into a vibrant, mixed-use, master-planned community in Calgary’s downtown east end. CMLC operates as an independent developer and over the next 10 to 15 years will bring new energy to Calgary’s oldest neighbourhood and redefine the city’s core. For more information on CMLC, visit www.calgarymlc.ca. BiC

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Off the Top • News

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New Technology to Improve Treatment Decisions for Colorectal Cancer Patients A greater survival rate for cancer starts with the correct diagnosis at its earliest stage. With work being done at the University of Calgary, colorectal cancer has the potential to be staged and diagnosed, not only accurately but immediately. A team of researchers, led by Dr. Oliver Bathe, a surgeon and professor, has developed a serum-based blood test to determine the stage of colorectal cancer. Determining the correct stage of cancer is critical for treatment.

The Canadian Cancer Society estimates that 23,000 Canadians will be diagnosed with colorectal cancer in 2012.

The Canadian Cancer Society estimates that 23,000 Canadians will be diagnosed with colorectal cancer in 2012.

While there are existing methods to determine the stage of this cancer, they can be invasive and potentially inaccurate.

“Traditionally, the most definitive way to stage colorectal cancer is by looking at the colon, the lymph nodes and neighbouring structures microscopically, after the tumour has been surgically removed,” says Bathe. “But, it’s not a perfect way of staging colorectal cancer. There are a lot of people with stage II cancer by those criteria, yet many have a poor outcome. We think this may suggest that these individuals have a more advanced stage of cancer, but microscopic deposits of the tumour in distant sites remain invisible to the usual diagnostic testing.”

The metabolomics-based test developed by Bathe and his team looks at the serum metabolite profiles in patients with colorectal cancer. It can identify minute metabolite differences and distinguish between colorectal cancers of 22 • November 2012 BUSINESS IN CALGARY | www.businessincalgary.com

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stage of disease for colorectal cancer, something current testing does not. different stages – those with colorectal cancer that has not spread, or metastasized, those whose cancer has spread only to the liver, and those whose cancer has metastasized beyond the liver.

Metabolomics is the study of small molecule metabolites in cells, tissues and organs.

The research team is comprised of metabolomics experts, Hans Vogel, PhD, and Aalim Weljie, PhD, a biostatistician, Karen Kopciuk, PhD, and PhD student Farshad Farshidfar. While the process is complicated, the results are not. This diagnostic test paints a clear picture of the stage of disease for colorectal cancer, something current testing does not. ”Research like this, can only be done successfully when there is very close co-operation between technology experts, statisticians and clinicians,” says Vogel, the director of the University of Calgary’s Metabolomics Research Centre. “We are fortunate that beyond the work with Dr. Bathe, we have been able to establish a number of collaborative teams at the UCalgary, all focused on developing better tests for different forms of cancer or infec-

24 • November 2012 BUSINESS IN CALGARY | www.businessincalgary.com

tious or inflammatory diseases. Even the influence of diet and lifestyle on the development of disease can be studied using this approach.”

There are many benefits to this type of simple testing. “As it is a bloodbased test,” explains Bathe, “it has the potential to be less expensive, more convenient, more rapid and more powerful than other similar tests available and I think there is a lot of promise in terms of diagnostics.”

Innovate Calgary is very excited to be working with Bathe and Vogel to bring their research closer to the market. “This is the kind of research everyone gets excited about,” says David Reese, vice president, licensing, Innovate Calgary. “The team at Innovate Calgary has filed a patent application and is working towards commercializing this technology; the next step is to identify industry partners to help further develop this research.”

Bathe’s research on serum metabolomics-based determination of stage and site of disease for colorectal cancer was published online in Genomics Medicine in May 2012. BiC

Canada’s Refining Dilemma • Refining

Canada’s

Refining

Dilemma

By John Hardy

S

hould we be refining more? Duelling experts and passionately biased insiders of Canada’s oil and gas industry drastically disagree.

To patriotically paraphrase the ballad of Jed Clampett: “And up through the ground came a bubblin’ crude.

Oil that is. Black gold. Alberta tea.” What the popular song never told us was that although Jed and all his kin instantly enjoyed the swimming pools and movie stars in the hills of Beverly, the bubblin’ crude straight out of the ground is just a useless fossil fuel soup of hundreds of different hydrocarbons, all mixed together.

To be useful, valuable and saleable, Alberta’s black gold must be processed.

At first gush, it’s a terrifically win-win idea. The more Alberta crude from the ground, the more refining and upgrading and the more Alberta can maximize lucrative supply for the world’s insatiable demand for everything from diesel and gasoline to keep cars and trucks on the road; petroleum gas for heating, cooking and plastics; kerosene to keep jets flying; and the many residuals for in-demand products like asphalt to pave roads and paraffin wax.

Should we be refining more?

Duelling experts and passionately biased insiders of Canada’s oil and gas industry drastically disagree.

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Canada’s Refining Dilemma • Refining

While facts and figures still show a continuing Canadian oil and gas boom and Canada is producing more oil than ever, the country’s remaining few refineries – with the exception of some new Alberta-based upgrading facilities – are Some indicators suggest that Canada’s conventional crude refining system has reached a sort of an oil industry Peter Principle because, for various reasons, most of Canada’s conventional refining options may have achieved their level of incompetence and inefficiency.

What Canadian and some recently closed or closing American refineries are proving is that the refining end of the business – hopelessly stuck between high oil prices, astronomical labour costs, shrinking demand and a slumping economy – is just too much risk and not nearly enough ROI. While facts and figures still show a continuing Canadian oil and gas boom and Canada is producing more oil than ever, the country’s remaining few refineries – with the exception of some new Alberta-based upgrading facilities – are mostly old, dated and shutting down.

So why isn’t Canada building more refineries?

Not so easy, according to the disagreeing energy experts, engineers, federal and provincial politicians, economists, industry leaders and their boards of directors.

“It’s crazy! It’s too expensive. And it’s way too late,” says Michal Moore, a dynamic and outspoken professor at the University of Calgary’s Institute for Sustainable Energy, Environment and Economy (ISEEE). “Refining oil is a complicated process that requires huge capital and an intensive, long-term commitment.

“A lot of the refineries were built in the mid-’60s. Markets were booming and there was lots of growth. Ever since, Canada didn’t build any more refineries. Fifty years later is simply too late to start. A lot of the arguments for refining here will soon be silenced by economics.”

“There’s no money in refining,” according to Brian Lee Crowley, managing director of the Macdonald-Laurier Institute in Ottawa. “The margins are small and it’s being done in the Third World at very low costs. India just completed a 26 • November 2012 BUSINESS IN CALGARY | www.businessincalgary.com

mostly old, dated and shutting down.

new refinery. It is tremendously efficient and much closer to the world’s expanding markets.”

Whenever formal or informal refining discussions happen, it’s a matter of time until the conversation touches on the slightly notorious Keystone pipeline to take Canadian crude to the huge refining capacities on the American Gulf Coast.

“The American side of the pipeline is already under construction. Unfortunately their presidential election got tangled up with a Nebraska land dispute which became politically necessary for Obama to resolve. But I just came back from Washington,” Crowley says, “and as soon as the American election is over the pipeline will be approved. It’s a done deal.”

While Canadian industry analysts and governments differ about the need and viability to build new refineries, they do tend to agree about financing factors being the real dealbreakers for the unlikely possibility of expanding Canada’s refining capacity.

“It costs $10-12 billion to build a modern refinery and about 10 years or so to get it up and running,” Crowley explains. “The realistic bottom line? It’s a very pricey and losing proposition and Canada simply could not compete.”

“That’s nonsense,” says Ian MacGregor, a passionate Calgary-booster and chairman of Calgary-based North West Upgrading (NWU). “Yes, some old refineries are being shut down. But our tarsands bitumen production will grow from a million barrels a day to three million barrels a day by 2020. The new bitumen production has to go somewhere.

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Canada’s Refining Dilemma • Refining

It’s no coincidence that some Canadian refineries as well as American giants like Sunoco and Chevron are also scaling back or quietly shutting down altogether.

Why ship it out of our own country?”

MacGregor has reason to be revved about processing bitumen “here at home.” His days are hectic because – in partnership with Canadian Natural Resources and the Alberta government – MacGregor oversees construction of the $5-billion oilsands upgrader outside Edmonton that, by 2015, will process 55,000 barrels of bitumen per day. (The NWU project is not technically classed as a refinery because it is upgrading bitumen directly to diesel as opposed to processing light crude.)

“Alberta is not short resources. We’re just short of doing something with it.”

MacGregor is upbeat and openly admits his ambitious goal. “Bitumen upgrading is the cutting-edge science and we want Alberta to be the bitumen refining centre of the world. I’m confident we can make a ton of money, even if it is amortized over the next 50 years.

“Albertans own this resource,” the gung-ho NWU chairman says with the infectious enthusiasm of a roaring football coach in the halftime locker-room. “The margins, the revenue, the taxes and the jobs should stay here in Alberta.”

With the documented and discouraging cost of modernizing or building new refineries, Crowley and other experts suggest that maybe Canada should specialize in what it does best.

“The people who run the oil extraction in Alberta are handsdown the best in the world,” Moore says. “Nobody knows how to get it out of the ground better or faster than Alberta.

No doubt about it. So why don’t we just do what we do best?

Get it out and sell it to the Asia-Pacific Rim: China, Taiwan and Japan. They are investing in super-refineries and their labour and infrastructure costs are much lower than North America. That’s why they are the viable, new refining hub.”

Although references to oil and gas “refining” are often generalized, Crowley explains that “Upgrading bitumen is

28 • November 2012 BUSINESS IN CALGARY | www.businessincalgary.com

a different story than conventional refining. We’re bloody good at extracting and upgrading seems to be a legitimate, contemporary boom industry. Besides, Alberta’s government requires that at least 40 per cent of the province’s bitumen be upgraded in Alberta. So it makes sense.”

Another process sometimes clumped into the generalized refining reference is converting natural gas into diesel and other fuels. So it was positive news this summer when Sasol Ltd. (the well known South African company) grabbed up a massive industrial property near Edmonton and moved a big step closer to building Canada’s first multibillion-dollar plant for the gas-to-liquids processing that could ultimately have a natural gas conversion capacity of 96,000 barrels a day.

It’s no coincidence that some Canadian refineries as well as American giants like Sunoco and Chevron are also scaling back or quietly shutting down altogether.

More and more of the world’s new, modern and efficient refining capacity is being built abroad, usually by state-run oil companies that have lots of crude but no downstream industry. Rather than ship their oil halfway around the world to be processed far away by someone else, they are building their own refineries and exporting finished products to higher-growth markets like Asia.

Aside from the NWU’s upgrading process for bitumen and Sasol’s gas-to-liquids, Canada’s refining industry may be a fading ghost of what it once was. Forty years ago there were about 40 refineries in Canada. Today, maybe 19 survive – but barely.

Will Canadian oil refineries become nostalgia like phone booths, office memos, ashtrays, the $1 bill, Rolodex files, photo albums and scruffy prospectors and their overloaded mules panning for gold?

Only time (and investor money) will tell. BiC

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It started with a vision...

It started with Prairies

ROBERT PETERS Black Diamond Land & Cattle Company Ltd.

ROBERT PETERS

Then and now

W

hen Rob Peters started out his career as a Calgary stockbroker in 1967, the population of the city was just 335,806. Needless to say, it was a very different time in Calgary.

Alberta was just around the corner from the oil boom of the 1970s and Peters set up shop with his business partner, Ray Hugo, when they launched Peters Hugo and Co. – the predecessor to what is known today as Peters & Co. Ltd. The firm thrived amid the skyrocketing oil prices of the 1970s, but when the national energy program was implemented in 1980, the industry stalled and his partner choked, promptly bailing out of the business. Peters, on the other hand, persevered through the dust-bowl days of the early ’80s with the backing of a few believers and a strong will to succeed.

As Peters masterfully plotted his course through the storm, he emerged with a solid reputation and a steady business, built on a client base that stretched to all corners of the city and beyond – not just downtown.

He was becoming known in those days for his characteristic approach to business and relationships. He was a born salesman, and one with powerful friends and allies. Peters was rapidly establishing himself as “the” investment guru in the oilpatch.

The oil and gas sector slowly recovered and began to rev up when Peter Lougheed came to power and effectively dismantled the NEP. Having managed to fend off the wolves, Peters was positioning his company for growth – and succeeded wildly.

Peters & Co. Ltd. was basically the only game in town when it came to providing

a vision... dent of Black Diamond Land & Cattle Co., an investment company focused largely on income and real estate. At the age of 70, there’s no sign Peters is slowing down. That’s just not his style.

His company backs privately-owned teams of oil and gas pros and targets strategic real estate investments.

He is also involved in the real estate industry and is founder and partner in several upscale residential developments as well as a founder and partner in Peters-Dewald Land Company Ltd., a land development management company focused on creating value on ranching, oil and gas and real estate investments.

As a lifelong philanthropist, the Millarville area rancher is never out of touch with any community in southern Alberta. In 2007, he and his wife, Ruth, donated $750,000 to the Kids Help Phone Futures Campaign – one in a line of charitable contributions too long to list in full. This past summer, he could be found at the president’s event alongside Calgary’s business elite, celebrities, sponsors, supporters, directors and politicians where they gathered on June 23 in the Agriculture Building at Stampede Park to mark the kickoff of the Stampede centennial celebrations.

Peters offers a few simple words for those aspiring to reach their own entrepreneurial success: “Be honest.

Just because some guy is a hotshot doesn’t mean you throw money at them,” he says. “You’ve got to have a personal connection.”

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institutional coverage of the Canadian oil and gas industry. His investment company couldn’t be stopped.

Along with the obvious clout, status and reputation he had built up for himself not only in the energy industry, but the wider business community and Calgary in general, by the early 1990s, he had earned many accolades and solidified both himself and his company as a major force in the oil and gas investment sector. Among the recognition he received, Peters was named a category recipient in the Ernst & Young Entrepreneur of the Year 1994.

“My philosophy was – and is – to basically stick to what you know,” says Peters. “By 1994, I had figured out that I like to invest in oil and gas, specifically, but the people are the most important thing. They know where the rocks and stones are. People have to be honest, have a good reputation around town and have a significant amount of their own net worth invested in the company.”

Smilin’ Rob, as he is often known, remained humble and focused. He continued to grow the company he started in 1971 into what has become today an icon of the industry as an independent, fully-integrated investment dealer with more than 41 years of experience investing in Canada’s energy sector.

By 2002, Peters had already started stepping back from his day-to-day involvement with the company and sold it that year. Today, he is the presi-

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Housing Boom or Housing Bust • Real Estate

Housing Boom or Housing Bust Is Calgary an exception to Canadian trends?

By John Hardy

D

Chairman’s Club

32 • November 2012 BUSINESS IN CALGARY | www.businessincalgary.com

espite all the well-intentioned and hard-core tracking, forecasting and number crunching about Canadian housing, it is not a science. At best it’s a tricky and volatile professional guess.

Economists, Canada Mortgage and Housing Corporation (CMHC), banks, builders and other industry-types invariably look to Toronto, Vancouver and Calgary as the key Canadian indicators for the reams of changeable housing figures.

There is begrudging consensus that (despite actual details) the three major markets are so individual, so market-specific, so quirky and so erratic that all the columns of stats combined don’t necessarily translate well to housing situations in Montreal, Moncton or Moose Jaw. But the crunched numbers do project some interesting trends and specifics: the current average price of a detached home in Canada is about $330,000; the national average price pales by comparison with Vancouver’s out-of-whack $679,000 average; Toronto’s average is $427,000; and $414,000 in Calgary.

Although the “housing bubble” term is commonly used and abused, industry insiders caution that an actual “bubble” is as hard to define as it is to verify.

It usually starts with sudden price increases that trigger euphoric homeowners who cash in, until something fluky or unexpected happens – like a sudden shift in the economy, changes in government policy or increased interest rates.

Sales begin to slump, the bubble bursts and house prices drop, sometimes drastically.

The ongoing American experience is a tragic and extreme example.

Although stats show that the overinflated Vancouver and Toronto bubbles have burst, their slumps are nowhere near

Housing Boom or Housing Bust • Real Estate

American levels. In August the Toronto Real Estate Board reported a 12.5 per cent drop in home sales, while Vancouver sales plunged by more than 31 per cent.

Canadian analysts share a consensus that Toronto and Vancouver house prices could soon fall by as much as 20 to 30 per cent.

Derek Burleton For various reasons the Calgary situation is different and outright encouraging. “Calgary is a Canadian exception, not the rule,” according to Derek Burleton, the TD Bank’s deputy chief economist. “Calgary already had its slump and it survived. House prices nearly doubled between 2002 and 2006 and then the 2008-2009 oil crisis recession hit.

“The Calgary economy is recovering, slowly, and there seems to be a gradual acceleration in Calgary prices.

Certainly not the boom market of six years ago but an improvement,” he says.

The Calgary Real Estate Board (CREB) tracks the uniqueness of the Calgary market. “About three years ago, after Calgary’s bubble burst, house prices dropped,” says CREB

chief economist, Ann-Marie Lurie. “Ever since, Calgary has been slow to recover. With our employment growth and migration, and with the exception of condos, we are recovering and moving toward more typical Calgary resale market levels.”

Lurie adds, “Single-family resale homes are four per cent below peak but definitely moving in the right direction.

Unfortunately, maybe due to an oversupply, Calgary resale condos are 16 per cent below peak and far from recovery.

Calgary’s condo market is not likely to recover for about two to three years.”

Whether the comparison is with Vancouver, Toronto or other similar Canadian housing markets, Calgary’s situation is also unique because demand heavily outweighs supply.

Real estate brokers shy away from calling it a “listing crisis” and CREB’s tracking confirms that although Calgary listings are down by more than four per cent from this time last year, demand is high.

“It may be confusing but that kind of market imbalance is actually a positive,” explains Felicia Mutheardy, CMHC’s Calgary market analyst. “When listings are low, demand is strong, there’s an increase in full-time jobs, a stable economy and historically low mortgage rates; it all combines to boost prices.”

Some call it the Calgary-fluke. BiC

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Investing in the United States • Real Estate

Investing in the United States Investing State side - determine your motivation and do your homework

By Heather Ramsay

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s temperatures continue to drop and winter months are clearly upon us, many Calgarians are considering or have already

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Springs, Las Vegas, Phoenix and the Florida Keys continue to be hot spots for Canadian travellers and investors.

In fact, Canadians are the largest non-American buyers of United States real estate. Product, pricing, access, amenities and weather are key factors as to why so many are buying residential real estate for investment purposes or seasonal personal use. While these destinations may be most attractive, and significant shifts in the American market over the past two years resulted in once-in-a-lifetime deals, experts continue to support Canadians in their search for the perfect property, yet advise potential buyers to learn the facts and conduct due diligence before making a purchase.

Although Canada and the U.S. have much in common, brokers, agents and accounting advisers on both sides of the border say they frequently hear about misunderstandings regarding property, tax and estate planning laws in the U.S. There are numerous variables in cross-border investment, some of which can create unpleasant and costly surprises down the road. Knowing the facts and working with appropriate resources and talents stateside can help mitigate those risks and ensure buyers get what they want and are not hit with

Investing in the United States • Real Estate

According to McKernan, areas such as the ‘sunshine belt’ are starting to see markets stabilize, and other smaller centres such as Jacksonville, Florida are starting to drawing attention.

Philip McKernan

adverse tax, capital gains or other potential issues.

According to Philip McKernan, author of South of 49: The Canadian Guide to Buying Residential Real Estate in the United States, and Fire Sale: How to Buy US Foreclosures Now, those considering a purchase in the U.S. need to start with one specific yet hard question. Why? As human beings, McKernan says we can justify anything and all too often buyers get into the U.S. market for the wrong reasons and in an ad hoc and risky way. “Buyers need to be brutally honest with themselves and ask why they are truly looking to invest south of 49. Is it to serve ego (so you can tell others about your home), out of greed (whereby you will be renting your property) or reward (worked your behind off and truly want to enjoy)?

McKernan explains that the sincere and honest answer to that question is the starting point for the where, when and how to go about buying in another market. “Some people are lifestyle purchasers while others are investors.

Knowing your primary motivation and which type of buyer you are, will better aid you in making appropriate decisions. There are a number of important considerations in any new market, be it the U.S., Europe or other. I discourage anyone from being a lazy investor.

Don’t simply hand over your power,

money and responsibility. You must engage in the process, do your research and utilize professional resources so that you readily protect yourself.”

According to McKernan, areas such as the “sunshine belt” are starting to see markets stabilize, and other smaller centres such as Jacksonville, Florida are starting to draw attention. Those not caught up in all the hype of a specific location or select community, are finding gems in the rough and getting even more value for their dollar. “No matter the location, if you choose to invest in the U.S., access/direct flights, markets, economic forecasts and taxation are critical, but so too are the intended length of ownership, estate

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planning and having a solid exit strategy. It can be easy to unknowingly get ‘stuck’ or be hit with costly consequences of not getting all the answers up front. For example, anyone wanting to purchase a ‘fixer-upper’ must know that it is deemed illegal to do the work yourself. You are required by law to hire local talent.”

As a result of the myriad of details and technicalities of buying property in the States, many are now considering purchasing properties through shared projects with property management support, or purely for investment and income sake. David Udy is the managing partner of Capstone Real Estate Corporation, a Calgary-based

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www.businessincalgary.com | BUSINESS IN CALGARY November 2012 • 35

Investing in the United States • Real Estate

SPEND LESS TIME YELLING AT INANIMATE OBJECTS. Gary Peruzzini

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Troon Ridge, Phoenix

firm that has been investing in the U.S. for some time. “We saw significant opportunity in 2008, to create a project whereby we could purchase distressed single-family homes, and leverage them as rental properties.

Families who lost their homes were able to rent them back and the project now includes 200 homes in Phoenix.

We’re now seeing another market shift in that many are using the buy/renovate/rent or buy/renovate/sell model.

It’s a matter of the real estate investor versus the real estate speculator.”

Phoenix is one example of a centre and real estate market that will likely continue to stabilize. Now in early recovery, the city boasts a population of over 4.5 million people, an unemployment rate below eight per cent, an influx of major industry and is a main distribution hub. It is estimated that within the next 15 years, Phoenix Metro will be one of the fastest-growing cities in the U.S. Gary Peruzzini, a broker with Realty Sense in Phoenix, Arizona, says the market is showing signs of stage two recovery and although pricing is still only 55 per cent of what it was in 2005, confidence and motivation are growing. “We are seeing encouraging signs of early recovery and it is anticipated that it will continue to stabilize.

Rates have increased by 16 per cent this past year. Although the real deals were two years ago when the crash hit, we are still in a distressed housing market; a buyer’s market. It will be some time before we fully recover, as

36 • November 2012 BUSINESS IN CALGARY | www.businessincalgary.com

we are still nowhere even close to the cost construction,” he explains.

According to Peruzzini, if developers and builders can find the ground and human capital, rates could possibly double again in a year’s time. “There continues to be the challenge of finding the ground and the people needed to build homes. Until that is rectified, the quantity of new homes built will remain low. Banks are holding some product off of the market until it levels out, which is also directly impacting already decreasing levels of inventory.

That being said, you can certainly find a quality home (two bedroom, two bathroom, double-attached garage) for less than $200,000US.” Trends indicate that Canadians have and will continue to send money south.

More and younger people are buying property and investing in projects such as with Capstone Real Estate Corporation. “While many chance buying a property sight unseen, we are adamant that buyers and investors of any sort know what they are getting into and mitigate risk. It is imperative to have the financial, advisory and management team, as well as infrastructure here and in the U.S. to aid in the transaction. We know first-hand how important those resources are, to ensuring our clients glean the greatest return on their investment and their experience. The strength of the Canadian dollar, inventory and professional services in metro centres such as Phoenix are enabling more people to own and enjoy a part of the U.S. market.” BiC

Best Laid Plans • Financial Planning

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The global financial crisis still looms large over the financial planning industry.

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By Benjamin Freeland

C

autious optimism – these two words more or less sum up the overall view of Canadians regarding their country’s economic prospects. In Alberta, this characterization of public sentiment is particularly apt, as the province has over the past two years reassumed its role as the country’s economic engine – bolstered by a thriving energy sector – while economic uncertainties in Europe, China and other major export markets coupled with worries about a forthcoming labour crunch continue to keep optimism in check. Nevertheless, low unemployment and rising

wages are leading many Albertans to start making concrete financial plans for the future.

While a resurgent optimism is leading a growing number of Albertans to feel safe planning for the future, the ghosts of the financial crisis are still lingering in the background. Financial planners contend that clients remain wary of risky investments and are on the whole more realistic about retirement age and other goals than they were pre-crisis.

“A lot of people lost money during the crisis and aren’t going back into the market,” says Ron Graham,

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www.businessincalgary.com | BUSINESS IN CALGARY November 2012 • 37

Best Laid Plans • Financial Planning

The current direction of financial planning in Canada can be best characterized as a move towards a more conservative, risk-averse approach coupled with a growing emphasis on customization and individual investor control facilitated by new technological innovations. an independent financial planner and president of Ron Graham and Associates Ltd., a fee-only, nonproduct-oriented agency that focuses on helping clients develop workable financial plans. “Before the financial crisis it was common for people to be planning to retire at 50 or 55. Now people are saying they’re going to be working until age 65 or 70.”

The current direction of financial planning in Canada can be best characterized as a move towards a more conservative, risk-averse approach coupled with a growing emphasis on customization and individual investor control facilitated by new technological

innovations. “We’re seeing two overarching themes,” explains Matt Evans, director of business development with Adroit Investment Management, a subsidiary of the Canadian Western Union Bank Group. “One is an echo of the financial crisis. The other is demographic change, namely the aging society and people getting close to retirement age. These have combined to drive a lot of people towards safer, lower-yield investments.”

With the current state of demographics, it’s hardly surprising that financial planning in Canada nowadays is largely geared towards retirement planning, a factor that is driving the

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38 • November 2012 BUSINESS IN CALGARY | www.businessincalgary.com

move towards less risky financial products. This looming mass exodus of the boomer generation from the workforce is likely to have an enormous impact on the markets, although how exactly that plays out remains an unknown to financial experts. Some strategists believe that stock market returns will be challenged over the next decade with retiring boomers pulling their money out of the stock market and putting it into less risky investments – particularly if Canadian financial markets see a return to higher interest rates and higher inflation, as is widely predicted.

“We try to do as little prediction as possible,” says Evans. “But this is definitely a possible scenario.”

With many investors still apprehensive about returning to the stock market, popular alternatives at the moment include real estate bonds, mortgage bonds and exempt market securities. But while the idea of avoiding traditional stocks and bonds appeals to many, investment specialists warn that such products are often just as risky as regular stocks – a fact that many investors fail to recognize.

“People are often surprised that they took on risk when they try to access their money and are unable to,” asserts Graham. “If you invest in mortgage bonds and you’re being promised eight to 10 per cent returns, you can bet there’s a lot of risk. The only way you’re getting returns like that is if they’re leveraging their payments with loans, and any hiccup in the mortgage market is going to cause it all to come crashing down.”

The other major trend in financial planning is a much higher level of customization, made possible by new software platforms. This has resulted in a greater commodification of planning services, allowing clients to better co-ordinate their financial planning

Best Laid Plans • Financial Planning

The other major trend in financial planning is a much higher level of customization, made possible by new software platforms.

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www.businessincalgary.com | BUSINESS IN CALGARY November 2012 • 39

Best Laid Plans • Financial Planning

While financial planners have a wider than ever range of products and digital tools at their disposal, the crux of their business remains the unglamorous process of determining goals, figuring out how best to achieve them, and matching this with the most appropriate mechanisms.

process with their tax, insurance and real estate plans. RBC Royal Bank makes extensive use of a trademarked platform called Your Future By Design within its financial planning process, which aims to help clients explore and establish financial goals, risk tolerance and other factors that influence financial planning. Launched in 2003, this service has more recently been made available online.

“We call this service an ‘advice experience,’” says Rosanna De Jong, manager of financial planning at RBC. “It’s an opportunity for planners and clients to work together to explore opportunities.”

While products like Your Future By Design are becoming more commonplace, most financial planning experts contend that overall public education and financial literacy are just as lacking now as they were at the onset of the financial 40 • November 2012 BUSINESS IN CALGARY | www.businessincalgary.com

crisis and that many financial planners are still dropping the ball on this front.

“There are six stages to the financial planning process,” Evans explains. “There’s establishing goals, assessing a person’s current financial position, determining problems and opportunities, listing possible tactics and then implementing the plan, followed by reviews and updates. A great many professionals are only interested in step five, selling you their product and implementing it. There’s generally not enough ‘planning’ in financial planning.” Evans adds that step six often gets overlooked by clients and advisers.

“People often don’t revisit their plan. You need to make it a living document that you revisit every year.”

The problem of inadequate planning on the part of financial planners stems in part from the fact that the financial planning industry remains surprisingly unregulated. “In most parts of Canada, you can call yourself a financial planner without any formal credentials,” explains Evans, who is a certified chartered financial analyst (CFA). “Investors do themselves a colossal disservice by hiring unqualified people. When you pay someone, look for somebody with CFA or CFP certification, because this process involves an intensive curriculum on financial planning.”

RBC’s De Jong concurs, while adding that the industry is slowly shedding its ‘Wild West’ character. “It’s been an interesting industry over the years, and indeed for a long time planners were mostly interested in asset allocation,” she says.

“At RBC we manage all sides of the balance sheet. To my knowledge we’re the only financial institution that does this.”

While financial planners have a wider than ever range of products and digital tools at their disposal, the crux of their business remains the unglamorous process of determining goals, figuring out how best to achieve them, and matching this with the most appropriate mechanisms.

“Ultimately it comes down to saving,” says Graham.

“There are lots of products out there, like high-interest savings accounts and money markets for short-term goals and GICs, mutual funds and TFSAs for the medium term, but my job is primarily about determining what people need to be saving to meet their goals. The product has to come after the planning process.” Evans adds that clients need to be realistic and concentrate on the fundamentals, namely earning and saving. “It’s never too late to reach financial goals by taking it one step at a time and being disciplined. Our job is to help people understand what’s realistic and how to get there.”

The solution? Most experts advise a well thought out plan built around realistic returns, with an investment plan that establishes exposure to various asset classes to the extent that the individual investor can handle it. But above all, experts stress the importance of critical thinking, investor education and meeting boring, humdrum monthly savings goals. “Planning and goal-setting are so very, very important,” says De Jong. “It’s a complex world and people need help navigating it and reaching their goals.” BiC

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Business Hall of Fame • Cover

Stan Grad

Hal Kvisle

Eric Harvie (posthumous)

David O’Brien

Calgary Business Hall of Fame Junior Achievement celebrates the 2012 Calgary Business Hall of Fame laureates

By Derek Sankey - With files from Junior Achievement of Southern Alberta

E

ach year, Calgary’s business elite gathers to honour its peers, not only for their outstanding business success, but also for their philanthropic efforts that have changed the face of Calgary and built community spirit over the years. It was a who’s who of the business community when Junior Achievement of Southern Alberta recognized the 2012 Calgary Business Hall of Fame inductees at its awards gala Oct. 22 at the Hyatt Regency in downtown Calgary.

This year’s inductees are Stan Grad, who currently serves as a director for several energy companies; Hal Kvisle, the former head of TransCanada Corp. who is currently a corporate board member for a variety of companies; David O’Brien, chairman of the Royal Bank of Canada and Encana Corp.; and (posthumously) Eric Harvie, an oilpatch pioneer and philanthropist.

“It looks beyond their obvious business excellence,” says Scott Hillier, president and chief executive of JA of Southern Alberta. “Their success has been leveraged to benefit our communities across Calgary, southern Alberta and in some cases across the country. Really, the inspiration comes from

what they’ve done with their success.”

The Calgary Business Hall of Fame was started in 2004 to honour the laureates during the gala dinner, which celebrates both business success and the lasting community contributions these individuals have made to Calgary and southern Alberta. It is also an opportunity to inspire the next generation of business leaders.

Good governance, corporate citizenship and an unyielding desire to improve the communities that made them successful are traits embodied in all of the hall of famers. JA partners with Korn/Ferry International to organize a selection committee comprised of high-profile peers, including past laureates.

Hillier says the 2012 inductees reflect the spirit of the award. “They have not just invested in Calgary, they chose to stay in this great city of Calgary,” he says. “We all benefit.

The return on that investment is for everybody to enjoy. We are honoured and proud to host the event every year.”

Business in Calgary also takes this opportunity to give a nod to these highly-respected business people and philanthropists. www.businessincalgary.com | BUSINESS IN CALGARY November 2012 • 43

Business Hall of Fame • Cover

Stan Grad, co-founder of Grad & Walker Energy Corp., owner of Soderglen Ranches Ltd. “A focused drive, ambition and passion trumps education and hope.

Be a leader rather than a follower.” ~ Stan Grad

Stan Grad has some simple advice for aspiring students and entrepreneurs to find their own path to success: “A focused drive, ambition and passion trumps education and hope,” says Grad. “Be a leader rather than a follower.”

After graduating from the Southern Alberta Institute of Technology (SAIT) with a diploma in petroleum technology, Grad went on to obtain a petroleum engineering degree from the University of Wyoming before co-founding Grad & Walker Energy Corp. with his business partner, Willard Walker – a key mentor in his career, along with Harvey Trimble.

Grad & Walker was sold to Crestar Energy in 1997, when Grad subsequently co-founded several other oil and gas ventures. He currently serves as a director on the boards of numerous energy companies and remains actively involved in the business and wider Calgary communities. He is a founding member of the Calgary Stampede Foundation, served as a member of the board of governors of Mount 44 • November 2012 BUSINESS IN CALGARY | www.businessincalgary.com

Royal University, as a director and chairman of the Alberta Shock Trauma Air Rescue Society (STARS) for 14 years and as co-chairman of STARS Canada Society.

Grad became highly involved in the seed stock cattle industry for more than 35 years as the owner of Soderglen Ranches Ltd. – the largest seed stock cattle operation in Canada. He has grown the company’s land base to include ranches northwest of Airdrie, southwest of Fort Macleod and southeast of Cardston. Soderglen raises grain and a variety of beef breeds, including two they have developed themselves, concentrating that business on the genetics of the beef business.

He recently returned to his alma mater, SAIT, with his wife, Jane, to announce a $7-million donation towards the Promising Futures Campaign for SAIT’s Trades and Technology Complex, which opened this year. As a result, the institution’s old Heart Building was renamed the Stan Grad Centre.

HigHest year-end ever.

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Business Hall of Fame • Cover

It is just one in a long line of examples of Grad’s philanthropy. He has become an integral part of southern Alberta communities, recognized not only for his business acumen

and success, but also for his genuine efforts to build a sense of pride, accomplishment and entrepreneurialism in southern Alberta.

Hal Kvisle, former president and CEO of TransCanada Corp. (currently serves on several corporate boards) “Concentrate on understanding every aspect of the job you have and the business you are in and perform every aspect of your work to the highest possible standard. Work hard and work smart and success will find you.” ~ Hal Kvisle You would be hard-pressed to find someone in Calgary’s business community who doesn’t recognize this Innisfailborn Calgarian’s name. He served as president and chief executive of TransCanada Corp, and its predecessor TCPL, from 2001 to 2010 (first joining the company in 1999). That follows 24 years in the upstream oil and gas industry working for companies such as Dome Petroleum and Fletcher Challenge Energy.

Currently, he serves as a corporate board member for BMO Bank of Montreal, ARC Resources Ltd., Talisman Energy Inc. and Northern Blizzard Resources Inc. When asked about who influenced him most, there is a long list. “I define mentors as people I’ve learned from, rather than wise men who provide sage advice,” says Kvisle. His mentors include some very high-profile Calgarians: Dick Haskayne; Ron Southern; Doug Baldwin; David O’Brien; John Beddome; Jack Gallagher; Hugh Fletcher; Jim Patek; Mac van Wielingen; John 46 • November 2012 BUSINESS IN CALGARY | www.businessincalgary.com

Dielwart; Barry Jackson; and Bill Downe.

Kvisle has received numerous awards and accolades over the years, including the 2010 Distinguished Business Leader of the Year Award from the University of Calgary and the Calgary Chamber of Commerce.

He got his start after earning his bachelor of science degree in engineering from the University of Alberta and subsequently a master of business administration from the University of Calgary.

His advice to young professionals reflects his “get-itdone” approach to business and to life: “Don’t spend a lot of time worrying about your career path and the milestones you need to reach at an early age,” says Kvisle. “Concentrate on understanding every aspect of the job you have and the business you are in and perform every aspect of your work to the highest possible standard. Work hard and work smart and success will find you.”

Business Hall of Fame • Cover

Giving back to the community has also been a hallmark of Kvisle’s career, whether it was through the various companies he’s led, such as TransCanada, or personally. He currently chairs the national board of the Nature Conservancy of Canada and has donated to all kinds of causes over the years.

His business success speaks for itself. Among his career milestones, when Kvisle became president and CEO of TransCanada in May 2001, the company embarked on a long-term transformation that took it from a western Canadian, pureplay natural gas transmission company to a North American energy giant operating oil and gas pipelines, power generation and gas storage facilities across the continent.

When it comes to defining success, Kvisle believes each person has to find his or her own path. “To each their own,” he says succinctly.

Eric Harvie,

(posthumously, 1892-1975) Eric Harvie was a true pioneer, oilman and philanthropist.

Eric Harvie was a true pioneer, oilman and philanthropist.

After serving in the First World War with a long military career, he was called to the Alberta bar in 1915 practicing in Calgary as a lawyer. He became involved in the oil business in 1944 when he purchased mineral rights to form Western Leaseholds Ltd. and Western Minerals Ltd. In 1947-48, when oil was first discovered on several of his leases in the Leduc and Redwater fields of Alberta, be became a very wealthy man indeed. He owned an operated drilling rigs, constructed pipelines and handled the entire infrastructure to find and produce oil and gas.

In 1955, he turned his efforts to philanthropy, forming the Glenbow Foundation, which led to the establishment of the Glenbow Museum in Calgary and went on to lay the foundation for Heritage Park. He continued his efforts to set up the Devonian Foundation, providing funding for numerous public infrastructure projects. Described as a modest man, his involvement with the community spanned many causes, www.businessincalgary.com | BUSINESS IN CALGARY November 2012 • 47

Business Hall of Fame • Cover

including the Calgary Zoological Society, the Banff School of Fine Arts and the Luxton Museum of Banff.

His grandson, Tim Harvie, saw him as a strong family man, “frugal in his own life, but so generous with others, both on a grand provincial and national scale,” he says, “but also with the common man on the street.” He was a meticulous, hardworking man who was a devoted husband, adds Tim. Eric’s daughter, Robin, says he was a true outdoorsmen and was often found riding horseback, fishing, hunting game birds or enjoying his ranching venture – activities he shared routinely with others around him. Eric’s uncle, James Lafferty, who was a noted physician, was among his mentors.

Lafferty was an active member of Calgary’s first city council as well as its first board of trade, going on to become the mayor of Calgary in 1890. “(Eric) definitely looked up to and admired his uncle who was noted as a dynamo and an achiever,” says Robin.

When asked about how Eric would have defined success, Tim believes it would have been through integrity, honesty and hard work. “He was a very honourable man, shrewd and sharp with attention to detail, but always fair,” says Tim. “Success would have been defined by upholding that reputation in all respects with business partners, friends and family.”

David O’Brien, chairman of the Royal Bank of Canada and Encana Corp.

“I view success as realizing your full potential and making a positive contribution in all aspects of your life, from career to family to community.” ~ David O’Brien

Growing up in Montreal, David O’Brien found a great role model in his father, J.L. O’Brien, who he describes as a “selfmade man” who built his own successful law firm. O’Brien went on to obtain his bachelor of arts degree with honours in economics from Loyola College (now part of Concordia University) and a law degree from McGill University. He practiced law for several years as a trial lawyer at Ogilvy Renault in Montreal before, at the age of 36, moving across the country to land in Calgary in 1977 with his wife, Gail, and three young children.

He currently serves as chairman of the Royal Bank of Canada and Encana Corp., but was previously the chief executive of Canadian Pacific Ltd., PanCanadian Energy Corp., and successfully negotiated the merger of PanCanadian with Alberta Energy Company Ltd. to create Encana in 2002. He has also held various management positions at Petro-Canada in years past and chaired the Canadian Association of Petroleum Producers (CAPP) in 1994-95, as well as serving as chairman of the Canadian Council of Chief Executives (CCCE).

He also has long connections to the education community, such as the University of Calgary, serving as a board member 48 • November 2012 BUSINESS IN CALGARY | www.businessincalgary.com

for six years, and was chancellor of Concordia University for five years. He also received three honorary degrees and has many awards under his belt. He was inducted into the Canadian Business Hall of Fame in 2004 and named a fellow of the Institute of Corporate Directors in 2005. It all culminated with O’Brien being appointed an officer of the Order of Canada in 2008.

“I view success as realizing your full potential and making a positive contribution in all aspects of your life, from career to family to community,” says O’Brien. He encourages young people to take charge of their own destinies. “They are responsible for their career developments,” he adds.

“Continue to learn so that you improve your judgment and ability to make decisions in an uncertain world.”

Two former heads of Canadian Pacific, in particular, inspired O’Brien: William Cornelius Van Horne, who was responsible for building the Canadian Pacific Railway in the 1880s; and Ian Sinclair, who as CEO of CP in the 1970s oversaw the rapid expansion of the organization. “All of these men inspired me to always reach beyond my grasp and seek to achieve big plans,” he says. BiC

‘Smart’ Manufacturing is the Way of the Future • Manufacturing

Equipment assemble: StreamFlo. Photo courtesy of Canadian Manufacturers & Exporters

‘Smart’

Manufacturing is the Way of the Future Sector is ‘surging’ on oilsands activity, diversification

By Derek Sankey

I

t wasn’t long ago that all the talk in the manufacturing sector was the trend toward “lean” manufacturing – essentially investing in the equipment and technologies to make a plant as efficient as possible. Well, that term has become passé (although the concept itself remains entrenched in the industry), but now there’s a new term on the block: “smart” manufacturing.

“The biggest thing we’re seeing from a manufacturing perspective is the ‘smart’ supply chain, or integrated supply chain,” says Neil Kaarsemaker, operations director for Alberta for the Canadian Manufacturers and Exporters (CME). “Where (manufacturers) are doing the best job for their customers is where they get actively involved in the design process and the whole scheduling of the project.”

It involves a manufacturer being involved in all compo-

nents of a client’s project “so that it can run more smoothly, more cost effectively and it can stay on schedule,” he adds.

It was the main focus of the National Buyer/Seller Forum held Oct. 23-25 in Edmonton.

“A lot of the manufacturing and the projects are very complex, so the more involvement you get with the company …

Neil Kaarsemaker they can help you integrate it with everything else that goes into the project,” Kaarsemaker says. “In the past, when you didn’t have that integration or anticipate problems, when www.businessincalgary.com | BUSINESS IN CALGARY November 2012 • 49

‘Smart’ Manufacturing is the Way of the Future • Manufacturing

Facts about Calgary’s manufacturing sector:

3.2

%

Manufacturing employs about 50,000 people in Calgary, at 1769 businesses, or 3.2 per cent of total businesses in Calgary Calgary’s manufacturing GDP has grown 17.5 In 2010, the total GDP from the sector was per cent from 2002-11 $5.9 billion, representing about 8.2 per and is forecast to grow cent of Calgary’s total GDP by 26 per cent over the next five years

5.9B 17.5

$

Calgary’s manufacturing subsector includes: food processing, wood products, printing materials, chemicals, metals and fabricated metal products, machinery, computer and electronics, furniture, energy-related products

6100

The sector created 6100 new jobs from 1997-2007

Real GDP growth of 3.7 per cent is expected in the sector in 2012

3.7

%

Over the past decade, Calgary’s manufacturing sector represents about 7.2 per cent of the city’s total employment

7.2

%

Sources: Statistics Canada, Calgary Economic Development, City of Calgary, Conference Board of Canada

they did occur they were just more costly and took longer to fix.”

By having a manufacturing team involved at every level, it reduces the chances something will go wrong and ensures the client gets exactly what they want – the “smart” approach.

Another current trend related to smart manufacturing is the seemingly basic concept of “total installed cost” – the entire cost from start to finish to produce, deliver, install and test. “Part of a smart supply chain is looking at total installed cost,” he says. “When you’re dealing with a supplier or manufacturer, make sure you’re dealing with somebody who can help you get that total installed cost as low as possible. You may have to spend more to procure it, but you’ll save more with the actual installation and operation. Any delay or retrofit … can really escalate your costs.”

Competition from offshore or from the U.S., meanwhile, serves to make “everybody sharper,” but Alberta-based companies have the edge, he insists.

“A real bonus for Alberta-based manufacturers is that they’re closer to the projects, closer to the sites and closer to 50 • November 2012 BUSINESS IN CALGARY | www.businessincalgary.com

the project managers,” Kaarsemaker says. “It’s one thing to have built a pressure vessel (abroad), but to have built one in Fort McMurray is another thing.”

The real good news for Calgary’s manufacturing sector is forecasted real growth of 3.7 per cent, according to some estimates. “Manufacturing is surging again,” says Kaarsemaker. “There’s good growth. Most companies are reporting their order books are full, but I would say that it’s manageable growth whereas in previous cycles it has been unmanageable – that’s good news.”

There’s always caution, however, in a shaky global market. “There is certainly a risk of global economic uncertainty,” he says. “If there’s any more downward pressure on oil prices, that could delay oilsands projects and that would slow everybody down.” It makes sense to invest now so that companies are well positioned to weather any storm on the horizon and come through it without having to invest if times get tough, he adds.

Jeanette Sutherland, manager of workforce and productivity for Calgary Economic Development, says there are

10 years

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‘Smart’ Manufacturing is the Way of the Future • Manufacturing

Evans Consoles (www.evansonline.com): Hydraulic-power-tong : McCoy Corp

Founded in 1980 and privately owned, Evans Consoles designs and manufactures custom control room solutions for mission critical and other technology-intensive environments.

It specializes in custom console, millwork and audio-visual enclosure solutions. Evans has over 30 years of experience in the technical furniture industry. Evans’ worldwide headquarters and state-of-the-art 170,000-sq-ft manufacturing plant is located in Calgary. Its U.S. operations centre is located just outside Washington, D.C. Evans operates facilities in Kunshan (China), Rotterdam (Netherlands) and Dubai (UAE). Its products are divided into three groups: • Control Room Consoles • Vertical Solutions • Peripherals Source: Evans Consoles

NovAtel (www.novatel.com): Headquartered in Calgary, Novatel is a leading provider of precise GPS systems (global positioning systems), augmentation components, GPS tracking devices, and GPS navigation equipment, among other products and services.

It serves the agricultural, aerospace, construction, mining, industrial, defence and marine industries, also offering mobile mapping, GNSS signal monitoring, survey and timing applications, and unmanned systems.

Source: Novatel Inc.

challenges ahead. “Calgary’s manufacturing success will depend on the ability of the industry to increase productivity levels and restructure in response to the challenges and opportunities that lie ahead,” says Sutherland. Those include increased global competition, increased pressure on labour and business costs, a strong Canadian dollar, the labour and skills shortage, rising energy prices and interest rates, she adds.

Another risk is the perpetual fight for labour. “The ongoing challenge is making sure we attract and train the right skilled labour force. We’re not raising any alarm bells to say there’s a crisis, but there’s an issue for sure – a challenge,” says Kaarsemaker. “We can’t take our eye off that ball.”

Sutherland adds: “Attracting talent and retaining skilled and experienced personnel, particularly in light of looming retirement shortages in the sector is a concern.”

So far, industry has been strong in showcasing career opportunities to youth to ensure the labour pipeline has a good supply in the long term, although short-term needs are still very much relevant to manufacturers at the moment.

Business in Calgary shines the spotlight on a few of the diverse range of Calgary manufacturers in different segments of the industry: 52 • November 2012 BUSINESS IN CALGARY | www.businessincalgary.com

KUDU Industries (www.kudupump.com): KUDU Industries provides progressing cavity pump (PCP) solutions to the oil and gas industry. It offers PCP systems engineered to handle the demands of heavy, medium or light oil; coal bed methane; and dewatering applications. KUDU has offices located in Canada, USA, Russia, Romania, Oman, Kazakhstan and Australia with more than 200 employees and provides a global distribution network to its clients.

Source: KUDU Industries Inc.

NGC Product Solutions (www.ngc-ps.com): NGC Product Solutions makes, distributes, innovates and creates next-generation products and solutions for challenging environments in construction, process and fluid handling applications. NGC’s capabilities (with the support from its vendors) include engineering and design, as well as product solution supply, fabrication and on-site installation.

Source: NGC Product Solutions Ltd. BiC

Calgary’s Top Industries

by Business in Calgary Staff

B

usiness optimism in Calgary has been waxing and waning in recent months, with signs of renewed interest in investment, only to be followed by some hesitancy when the city’s top executives look at the state of global markets. It’s not surprising, then, that no matter what sector you look at in Calgary, executives and business leaders are taking a measured approach to their investments.

The finance, real estate and insurance industries have been growing steadily over the last two years, according to Michael Fotheringham, research manager at Calgary Economic Development’s research, workforce and strategy department. “Mining and oil and gas extraction peaked in 2007 and is slowly recovering,” he says. “One must remember that the way industries are classified does not fully encompass the importance of oil and gas to the Calgary economy.”

One industry where that plays out is in professional, scientific and industrial services, which has been steady despite the downturn in oil and gas prices, he adds. The cultural sector has also shown surprising resilience – despite comprising only a small portion of the city’s GDP – but makes sense as Calgary becomes more cosmopolitan as it grows and grows.

Energy impacts so many industries in Calgary it’s hard to differentiate one from another. Manufacturing, for example, caters largely to the oilpatch, just as transportation and warehousing and construction similarly mirror that trend. “Energy will be the dominant sector for the foresee-

able future,” Fotheringham says. “Finance is increasing in importance as noted in Calgary’s recent five-spot jump in the Global Financial Centres Index.” It notes Calgary landed number 23 out of 77 of the world’s major financial centres in terms of competitiveness.

The bread and butter of Calgary’s economy isn’t changing – much. Oil and gas has gone down slightly in the overall mix, leading economists to believe it is diversifying somewhat, but only marginally. “There’s been little to no change in the diversity of Calgary’s economy,” says Fotheringham.

Health care is one area, however, that has grown in leaps and bounds, due largely to an aging population, mirroring other centres across North America simply due to demographics.

Real estate has remained strong in this city, in part because it hasn’t experienced the same kind of overheated conditions seen in Vancouver and Toronto, where talk of a housing bubble seems to be gathering consensus. Here, there has been something of an “island effect” where prices haven’t escalated beyond reach as far as they have in those two cities, leading speculators and industry insiders to believe that we won’t see the same type of housing corrections forecasted in those markets.

A breakdown of each industry shows the current trends for that particular sector, but the overall message is that Calgary’s economy is showing strength, resilience and is on track to remain competitive and healthy well into the future. www.businessincalgary.com | BUSINESS IN CALGARY November 2012 • 53

Calgary’s Top Industries

Oil & Gas

The oil industry is seen as ‘the heart’ of Calgary’s economy. The price of oil dictates a lot in this city. Here you will find the head office of every major oil and gas company in the country and the industry’s major trade associations. Oil prices have been strong and sustained at relatively high levels, making the industry ripe for investment. Hovering around the $100 per barrel mark, oil prices have stayed healthy and profitable for companies that now see oil as the way of the future – at least for now. The industry likes some level of certainty and stability, but as any Calgarian working in the oil patch knows, that’s rare. The cyclical and sometimes volatile nature of the industry can make it difficult for business leaders in the oilpatch to plan too far ahead. The overall picture remains strong as companies invest in oilsands projects and non-conventional resource plays throughout Alberta. Global investors now see this province as a bigger player in terms of its international significance.

The industry has remained vibrant and highly attractive to investors, due to new methods of extraction and innovations in existing technologies. Capital budgets are reflecting this reality and billions of dollars continue to flow to this sector – a cornerstone of Calgary economy.

While natural gas prices have remained fairly low, new technologies have unlocked new types of resource plays, particularly with shale gas and horizontal fracturing. Prices have remained stubbornly flat, but that hasn’t stopped many projects from moving forward. Companies that are focused purely on natural gas are breaking new ground by pioneering new plays in new ways.

Alberta and the Western Canada Sedimentary Basin have traditionally been viewed primarily as a natural gas region.

About three quarters of activity in the oil and gas industry in Alberta used to be focused on natural gas, but in light of softer prices, that composition is now closer to about a 50-50 split between oil and gas.

IMPERIAL OIL LTD

OIL & GAS

As an integrated energy company, Imperial Oil explores, produces, refines and markets products essential to society. Whether it’s finding oil and gas, making and selling high-quality petroleum products, or investing in innovative research, IOL business contributes to Canada’s quality of life and energy future. The goal is to meet increasing consumer demand for energy in an environmentally, socially and economically responsible manner.

SUNCOR ENERGY INC

OIL & GAS

Suncor Energy pioneered commercial development of Canada’s oilsands in 1967 - one of the largest petroleum resource basins in the world. Since then, Suncor has grown to become a globally-competitive integrated energy company with a balanced portfolio of high-quality assets, a strong balance sheet and significant growth prospects. To Suncor, operational excellence means operating in a way that is safe, reliable, cost-efficient and environmentally responsible.

Website: www.imperialoil.ca

Website: www.suncor.com

Moving the Energy Sector Forward www.mammoet.com 54 • November 2012 BUSINESS IN CALGARY | www.businessincalgary.com

Mammoet’s services to the Energy industry include: construction of new plants, relocation of existing plants, extension and upgrading of existing plants, construction or relocation of tanks, equipment installation and maintenance and revamp projects.

Worldwide Specialists in Heavy Lifting & Transport

Safety is the first priority at Mammoet, we consider risks to be unacceptable. You apply the same principles when selecting your service providers. Choosing Mammoet is choosing for certainty and professionalism. As the

AB

BC

world’s leading specialists in heavy lifting and transport, Mammoet has established an impressive track record in the Energy sector, covering special projects and routine operations.

Head Office for Western Canada Edmonton, AB Calgary, AB 780.449.0552 403.252.0551

Pincher Creek, AB Bonnyville, AB 403.627.4554 780. 826.2253

Vancouver, BC 778.828.6516

Regina, SK 306.523.4511

SK

www.mammoet.com

Fort McMurray, AB 780.791.5049

Calgary’s Top Industries SHELL CANADA

OIL & GAS

MEG ENERGY CORP

OIL & GAS

Shell has been active in Canada since 1911 and is now one of the country’s largest integrated oil and gas companies. Headquartered in Calgary, Shell Canada employs more than 8,000 people across Canada. Shell Canada’s upstream businesses explore for and extract natural gas, and market and trade natural gas and power.

Downstream business refines, supplies, trades and ships crude oil worldwide and manufactures and markets a range of products, including fuels, lubricants, bitumen and liquified petroleum gas (LPG) for home, transport and industrial use.

Shell Canada is also the country’s largest producer of sulphur.

MEG Energy Corp. (MEG) is a Canadian oilsands company focused on sustainable in situ development and production in the southern Athabasca oilsands region of Alberta. MEG has acquired a large, high-quality resource base in Alberta. With these resources and a well-formulated strategic growth plan, MEG is positioned to be a strong oilsands player for many years to come.

Website: www.shell.ca

Website: www.megenergy.com

CANADIAN NATURAL RESOURCES LTD

OIL & GAS

Canadian Natural is one of the largest independent crude oil and natural gas producers in the world. The company continually targets cost-effective alternatives to develop its portfolio of projects and to deliver its defined growth plan, thereby creating value for shareholders. Canadian Natural provides an effective and efficient, diversified combination of assets in North America, the North Sea and Offshore Africa, which enables them to generate significant value, even in challenging economic environments.

HUSKY ENERGY INC

Website: www.huskyenergy.com

Website: www.cnrl.com

PRECISION DRILLING CORP

OIL & GAS

OIL & GAS

Husky Energy is one of Canada’s largest integrated energy companies. It is headquartered in Calgary, and is publicly traded on the Toronto Stock Exchange under the symbols HSE and HSE.PR.A. The company operates worldwide with upstream, midstream and downstream business segments. A combination of technological innovation, prudent investment, sound project management and responsible resource development allows Husky to deliver strong returns to shareholders.

PENN WEST PETROLEUM LTD

OIL & GAS

Precision Drilling Corporation is Canada’s largest oilfield services company and one of the largest in the United States. Precision also has a growing presence internationally. Precision provides contract drilling, well servicing and strategic support services to customers. Precision supplies on-the-ground expertise - people, equipment and knowledge - to provide value to customers on a daily basis.

Penn West is one of the largest conventional oil and natural gas producers in Canada. Penn West operates a significant portfolio of opportunities with a dominant position in light oil in Canada. Based in Calgary, Penn West operates throughout Western Canada on a land base encompassing over six million acres.

Penn West is an actively-managed company with a large and diversified asset portfolio, experienced and specialized technical teams, and an extensive inventory of internal opportunities.

Website: www.precisiondrilling.com

Website: www.pennwest.com

NEXEN INC

OIL & GAS

Vibrant and dynamic, Nexen Inc. is a global energy leader with an exciting future. Nexen’s unique, growth strategies - value-focused, commitment to ethics, integrity and sustainable business practices - is unwavering. With a team of approximately 3000 employees, strong board and management, and decades of profitability, Nexen is building momentum and delivering solid long-term value for shareholders.

Website: www.nexeninc.com

56 • November 2012 BUSINESS IN CALGARY | www.businessincalgary.com

TALISMAN ENERGY INC

OIL & GAS

Talisman Energy Inc. is a global, diversified, upstream oil and gas company, headquartered in Canada. Talisman’s three main operating areas are North America, the North Sea and Southeast Asia. The company also has a portfolio of international exploration opportunities. Talisman is committed to conducting business safely, in a socially and environmentally responsible manner, and is included in the Dow Jones Sustainability (North America) Index.

Website: www.talisman-energy.com

A WORLD-CLASS COMPANY NEEDS WORLD-CLASS TALENT TECHNICAL AND COMMERCIAL PROFESSIONALS WANTED At Shell we are working together to help meet the world’s rising demand for energy. Our innovations are helping to successfully unlock new energy resources. We are using advanced technologies to develop oil and gas in more remote environments, to extend the lives of existing fields, and to increase production from unconventional sources, which includes oil sands and tight gas fields. To deliver these and other complex and challenging projects, we want to hear from talented technical and commercial professionals.

Whatever your role at Shell, as part of a diverse and global network comprised of some of the finest minds in the business, you could be helping to power people’s lives around the world, now and into the future. Come and discover how you can propel your career and help solve some of the world’s biggest energy challenges. View all of our current opportunities and apply online at www.shell.ca/careers.

Let’s deliver better energy solutions together.

Shell is an Equal Opportunity Employer.

Calgary’s Top Industries HYATT REGENCY-CALGARY

HOTELS & ACCOMODATION

The Hyatt Regency Calgary will give you a sense of grand arrival. This historic 1866 property features custom woven carpeting in rich royal blue and burnt orange. This elegant hotel offers an ideal setting in the heart of downtown Calgary next to the Calgary Telus Convention Centre. Step through the doors to experience theatres, shopping and entertainment.

Website: calgary.hyatt.com

SHERATON-SUITES CALGARY EAU

HOTELS & ACCOMODATION

Sheraton Suites Calgary Eau Claire is an all-suite, four-diamond hotel offering the very best luxury hotel lodging in downtown Calgary. Situated in the heart of the city, the Sheraton Suites Calgary Eau Claire Hotel occupies a prime location offering easy access to the city’s best attractions, such as the Eau Claire Market, the Bow River and Prince’s Island Park.

HOTELS & ACCOMODATION

Referred to as one of the world most competitive sectors, Calgary offers a wide range of accommodations from hotels, motels, inns, hostels or bed and breakfasts.

Calgary’s growing corporate sector attracts many business travelers to the core and recreational visitors are drawn downtown for the wealth of events and attractions. The annual Calgary Stampede, known as the greatest outdoor show on Earth, attracts many travelers from numerous countries; which take advantage of these accommodations well in advance to ensure attendance to the event.

The many attractions located in the city’s core, including the Pengrowth Saddledome, home to the National Hockey League’s Calgary Flames, the Glenbow Museum, Science Centre and Calgary Tower, make downtown a convenient place to stay. Many of these prestigious and luxurious hotels have played host to visiting VIPs for years.

Website: www.sheratonsuites.com

CARRIAGE HOUSE INN

HOTELS & ACCOMODATION

At the Carriage House Inn in Calgary, all guests enjoy contemporary accommodations, memorable on-site dining and exceptional amenities. Centrally located on Macleod Trail South, the Carriage House Inn is in the midst of the city’s vibrant shopping, dining and entertainment districts and is also within walking distance of the nearby C-train station and minutes from downtown Calgary.

WESTIN-CALGARY

Website: www.westincalgary.com

Website: www.carriagehouse.net

RADISSON-CALGARY AIRPORT

HOTELS & ACCOMODATION

Offering breathtaking views of the magnificent Canadian Rockies and vibrant downtown, the full-service Radisson Hotel Calgary Airport is perfect for both business and leisure guests. Located less than 10 minutes from the Calgary International Airport (YYC) and the city centre, the Radisson Calgary Airport offers easy access to shopping, entertainment and business districts, as well as local attractions including Fort Calgary and the Calgary Zoo.

MARRIOTT-CALGARY

HOTELS & ACCOMODATION

Located in the heart of downtown, Hotel Arts is a 185-room, full-service boutique hotel. For business or pleasure, all guests will have the opportunity to indulge in a travel experience of luxury, art, service and cuisine.

Website: www.hotelarts.ca

58 • November 2012 BUSINESS IN CALGARY | www.businessincalgary.com

HOTELS & ACCOMODATION

Conveniently located downtown near supreme shopping, fine dining and worldclass corporations, the Calgary Marriott hotel is ideal for all travellers. Offering the largest guest rooms downtown and the utmost hospitality, the Marriott’s accommodations are well thought out with showcase floor-to-ceiling windows, plush bedding, LCD HDTVs and unobstructed views of the vibrant metropolis.

Website: www.radisson.com

HOTEL ARTS

HOTELS & ACCOMODATION

The Westin Calgary is conveniently located downtown where the major business centre meets the city’s extraordinary outdoor activities and first-class dining and arts. Relax in the rooftop pool and sauna or take advantage of a WestinWORKOUT®, with its state-of-the-art equipment. This hotel is conveniently connected to the business, dining and shopping districts of the city.

Website: www.marriott.com

HOTEL BLACKFOOT

HOTELS & ACCOMODATION

Hotel Blackfoot offers 200 rooms conveniently located in south Calgary. After a full day of business or sightseeing, you’ll want to relax at Blackfoot as the fullservice hotel provides everything you need. Enjoy the 24-hour exercise room, indoor whirlpool, seasonal outdoor pool and in-room spa services. Choose from four restaurants, lounges and the Laugh Shop comedy club.

Website: www.hotelblackfoot.com

Calgary’s Top Industries COMMERICAL CONSTRUCTION Various Projects have been completed this year with many more upcoming on the horizon. As developers look to meet a growing demand for office and commercial space, this has improved the pace of commercial construction. New building permit numbers reflect the appetite for new space. The value of building permits in the Calgary census metropolitan area increased by 5.8 per cent in July compared with a year ago, according to Statistics Canada. The industry is seeing continued upward trends.

Major infrastructure investments, such as the West LRT and others throughout the city, are also contributing to increased demand and activity among construction firms. GDP is forecast to grow by 15 per cent between 2012-14 in the entire construction industry as a whole, and much of that is anticipated to come from commercial, industrial and office construction, according to CED figures.

ZYTECH BUILDING SYSTEMS INC

COMMERCIAL CONSTRUCTION

ZyTech building provides top-quality roof trusses, floor systems and lumber packages for your residential, commercial and farm projects. ZyTech has top performers in design, customer service and production to provide you with total-quality assurance. On each project, designers use engineered-approved software to thoroughly examine and design your engineered wood products.

KEYSTONE EXCAVATING LTD

COMMERCIAL CONSTRUCTION

Creating value is very important to Keystone. Our team is instrumental from concept to implementation. Quality and satisfaction of a job well done begins internally and filters through to the client. Through listening and working with the client there is an understanding the of the challenges before, during and after our scope of work.

Website: www.ourlifeisdirt.com

Website: www.zytechtruss.com

CANNEX CONTRACTING INC

COMMERCIAL CONSTRUCTION

WHISSELL CONTRACTING CALGARY

COMMERCIAL CONSTRUCTION

Cannex Contracting 2000 Inc. has been conducting business in Calgary and surrounding areas for over the past eight years, with experience as general contractors specializing in deep utilities varying from commercial to residential. Cannex is dedicated to all aspects of this industry and pride themselves on creating new relationships and enhancing existing friendships.

Whissell Contracting traces its roots back to 1970 with the completion of their first contract in Calgary, Huntington Hills, and Phase 6. Since the onset, president and CEO, Brian Whissell, has always surrounded himself with like-minded individuals, creating a team who shares his values for safety, people, integrity, respect, innovation and teamwork. Today, over 40 years later, Whissell celebrates the successful operation of three divisions: sewer and water construction; heavy haul transportation; and equipment contracting.

Website: www.cannexcontracting.com/home.html

Website: www.whissell.ca

PCL CONSTRUCTION

COMMERCIAL CONSTRUCTION

The PCL family of companies has a century-long tradition of excellence, hard work and a can-do attitude as construction leaders in the commercial, civil infrastructure and heavy industrial markets. This family of independent construction companies forms the sixth largest general contracting organization in the United States and the largest in Canada.

KON CONSTRUCTION LTD

Founded in 1967 by Andy Surkon, Kon Construction Ltd. is still 100 per cent owned and managed by the Surkon family. The company’s core business is excavating, stripping, grading and site development. Projects generally involve extensive excavating requiring large equipment moving huge amounts of material on site. Project sites include: commercial and residential subdivisions, landfill construction and rehabilitation, gravel pit construction and OB removal, storm retention ponds and canal construction, contaminated site remediation and road construction.

Website: www.konconstruction.com

Website: www.pcl.com

LEDCOR

COMMERCIAL CONSTRUCTION

COMMERCIAL CONSTRUCTION

TRIBUILD CONTRACTING LTD

COMMERCIAL CONSTRUCTION

Employee-owned, with a broad portfolio throughout North America, the Ledcor Group of Companies was founded in 1947 with roots firmly planted in the oilpatch. Through thoughtful and strategic decision-making throughout the decades, Ledcor has become one of the most diversified conglomerates in North America, offering expertise with a professional attitude. Their straightforward approach has been the foundation of the business and the reason why clients come back over and over.

TriBuild, a full-service general contracting firm, is a Calgary-based company with 30 years of experience in construction management and lump sum contracts. Over the past 30 years, TriBuild has steadily built an enviable reputation.

Trustworthy and highly competent, TriBuild is dedicated to turning clients’ ideas into reality.

Website: www.ledcor.com

Website: www.tribuild.com

60 • November 2012 BUSINESS IN CALGARY | www.businessincalgary.com

THE LEDCOR GROUP OF COMPANIES From a world-class mining operation to high-tech infrastructure, or a stunning work of architecture.

We’re an industry-leading, innovative construction company both inside and out.

VISIT LEDCOR.COM

DIRT MANAGEMENT IS BIG BUSINESS

T

he company trademark ourlifeisdirt.comTM, captures life at Keystone Excavating. It’s not glamorous work, nor is it clean, but it is highly rewarding. From excavations to site grading to deep-service work, Keystone has built a solid reputation as a company that cares. They are completely committed to customer satisfaction and pride themselves on building solid relations, delivering superior service and working with the very best people in the industry.

Dirt management is big business in Alberta and for over 30 years, Keystone has been a significant contributor to the overall growth and development in Calgary. What started as a one-man operation has grown to become one of the largest excavating contractors in Calgary and the surrounding area.

Keystone is recognized as an industry leader for their innovative thinking, their field applications of technology, their high safety standards and an unwavering commitment to quality. Over the years, they have won numerous SAM awards for trade partner of the year and recently they were awarded the Safety Leadership Award for the second year in a row. It appears their growth remains unabated as they forayed into the Edmonton market in the spring of 2011.

Keystone was established in Calgary in 1981 as a family business and today the second and third generations are actively involved, the business has evolved and given rise to a new president; a highly skilled management team and larger-than-life goals.

TECHNOLOGY AND DIRT… A PERFECT PAIRING

When you have over 120 pieces of equipment, 135 staff, numerous projects and several subcontractors all working in every sector of the city, it can be difficult to keep track of things. When Holly Goulard, president and CEO, joined the company 17 years ago, she was determined to help Keystone run more efficiently and her mission was accomplished with ‘Groundbreaker.’

For the last six years, ‘Groundbreaker’ has helped Keystone streamline their operations: connecting the field crews to the office with real-time data. They also installed GPS software, further enhancing the system with greater accuracy and efficiency.

“Supervisors can manage their jobs on-site, check plans and quotes, locate vehicles, manage dirt and approve time sheets – all from the field,” explains Jim Elias, vice president operations.

“From a safety perspective, an efficiency perspective and a cost perspective we have already seen the benefits of ‘Groundbreaker’

and we know, long term, it will have a significant impact on Keystone and our clients.”

Not only do they move dirt, but they also manage it – meaning they are always looking for ways to help a client reduce costs.

“Given the size of our fleet and that we’re working in every area of the city, we have the advantage of managing dirt to reduce additional costs of trucking for the individual client and sharing the requirements of balancing sites among all clients,” says Holly.

“If our clients have a plan in place, then we help them with design and dirt balance; we look for ways to save them money and help them manage their dirt,” adds Jim. “We provide solutions and service; there are so many variables in our scope – our job is also to educate and support our clients. Everyone has a limited knowledge of the conditions underground, so we work with our client to get the best information available.”

BUSINESS EXPERTISE

Residential earthworks was a primary focus until the midnineties when commercial projects became part of the service offering. Today Keystone has become an industry leader in commercial & infrastructure earthworks, ranging from multi story underground parkade structures, large scale warehousing sites, and some of the city’s most prominent infrastructures projects including the South Health Campus, University of Calgary’s Energy, Environment, Experiential Learning Building, West LRT, Telus Science Centre, South East Stoney Trail Ring Road.

In addition to ’digging holes’, Keystone provides consultation at conceptual stages, preliminary project budgeting, dirt management, and project management. Through employees and trade partners Keystone has been providing clients complete earthwork services from excavations, grading, retaining walls, site servicing, & surface improvements to give our clients a complete civil works package.

4860 - 35th Street SE Calgary 403.274.5452 • 11474 Winterburn Rd NW Edmonton 780.477.5452 ourlifeisdirt.com™

4860 - 35th Street SE Calgary 403.274.5452 • 11474 Winterburn Rd NW Edmonton 780.477.5452 ourlifeisdirt.com™

Calgary’s Top Industries CONVENTION FACILITIES The Calgary Telus Convention Centre is at the heart of the city’s convention services and a good gauge of how healthy this industry is based on the number of new events lining up. The continuous activity of new conferences planned throughout the year illustrated how vigorous our city’s economy is in a number of sectors. From technology conferences to travel expos to engineering career fairs, a host of activities is keeping this industry busy. Whether it’s a small, memorable gathering or an event hosting 4000 international delegates, the Telus Convention Centre is a hotbed of activity these days.

Of course, event planners and caterers are busy all over the city, from the Stampede grounds to smaller conferences held at hotels across Calgary. Corporate Christmas parties are right around the corner and planners expect it’s going to be a good year. This year has been a pivotal time for planners and convention facility managers as they prepare for another busy year in 2013.

DEERFOOT INN & CASINO

CONVENTION FACILITIES

The Deerfoot Inn & Casino is located in south Calgary offering the newest and finest hotel convention centre and entertainment complex in the southeast part of the city. Located on a hilltop at the intersection of Deerfoot and Barlow Trails the hotel tower is visible from over a kilometre away. Upon arrival, guests will be greeted with luxurious reception areas, warm hospitality and elegant rooms, as well as fun activities for the entire family and exciting entertainment. The Deerfoot Inn & Casino also provides spacious meeting facilities to accommodate any size group, event or conference.

Website: www.deerfootinn.com

CALGARY TELUS CONVENTION CTR

CONVENTION FACILITIES

Since 1974, Calgary Telus Convention Centre has been contributing to Calgary’s vibrant economy and serving as an ambassador to the world. CTCC fulfils its mandate by exploring new commercial frontiers while serving as an ambassador from southern Alberta to the rest of North America and beyond. Conveniently located in the heart of Calgary’s downtown, this best-of-both-worlds offering can be found throughout both the city of Calgary and CTCC.

Website: www.calgary-convention.com

EPCOR CENTRE-PERFORMING ARTS

CONVENTION FACILITIES

Located in the heart of the cultural district in downtown Calgary, Epcor Centre for the Performing Arts is where passion and creativity meet, mix, mingle and occasionally, collide. Proving that this truly is the place to be, more than 600,000 people experience the excitement of Epcor Centre yearly at 1800-plus performances and events, both free and ticketed.

GLENMORE INN & CONVENTION CTR

The Glenmore Inn offers guests a wide range of convenient services and amenities. The facilities and staff will ensure your stay is comfortable and memorable.

Centrally located for access to Calgary’s downtown, business sectors, tourist attractions and shopping, the Glenmore Inn will accommodate your business meetings and annual conventions with the same personal attention and professional service as your family dinner or wedding day celebration.

Website: www.glenmoreinn.com

Website: www.epcorcentre.org

THE METROPOLITAN CENTRE

CONVENTION FACILITIES

The Metropolitan Conference Centre has been engineered and designed to provide a dedicated meeting environment for all guests. The conference service staff are meeting professionals, trained to assist in all phases of planning and hosting your event. From annual general meetings and board meetings to trade shows and galas, the Metropolitan Conference Centre can accommodate virtually any business or social function from 10 to 800 guests.

F&D SCENE CHANGES LTD

INLAND AUDIO VISUAL

CONVENTION FACILITIES

Website: www.inlandav.ca

64 • November 2012 BUSINESS IN CALGARY | www.businessincalgary.com

CONVENTION FACILITIES

In a world where imagination and creativity drive the overall direction of a project, F&D Scene Changes Ltd. is internationally reputed as master builders of prefabricated design components. Since 1982, F&D has masterfully transformed the creative visions of an international clientele into the tangible components of material interpretation.

Website: www.fdscenechanges.com

Website: www.metcentre.com

Inland AV is a full-service audiovisual provider to Canadian and international clients since 1937. Their specialists deliver a comprehensive range of products and expertise through the sales, service and rentals divisions. From boardrooms to stadiums, winning presentations start here.

CONVENTION FACILITIES

winsport

Convention facilities

Working together with partners in sport, WinSport’s vision is to be the acknowledged leader in developing and sustaining the facilities required for Canada to be the number one winter sport nation. WinSport Canada has evolved into one of the premiere sport institutions in the world. Unique in its vision and purpose, WinSport Canada, a not-for-profit organization, has become the yardstick by which the world measures Olympic legacies and winter sport development programs.

Website: www.winsportcanada.ca

Host your next function at

WinSport’s

Canada Olympic Park NOW OPE N

• Cal gary sq ft ’s Newes Banq t 8,00 u 0 • Sea et Facility ts 50 0

Don’t Book a Meeting in the Same Boring Space...

Come to COP! • Brand new banquet facilities that seat up to 500 people • Unique team building add-ons like zipline, bobsleigh, skiing and ropes challenge courses • Free parking and friendly staff • Money spent at WinSport goes back to supporting our Canadian high performance winter athletes

winsport.ca Sales Inquiries: 403.247.5607 | salesinfo@winsportcanada.ca

Calgary’s Top Industries CMP CHEV CAD BUICK GMC

AUTOMOTIVE DEALERSHIPS

For more than 50 years, CMP Automotive Ltd. has been proud to call itself your GM superstore. As Alberta’s largest GM dealership, this family-owned business caters to families, businesses and professionals with five different GM vehicle lines, including Chevrolet, Cadillac and Buick. Choose from more than 1000 new vehicles and more than 400 used - no matter what your needs are, CMP has your car.

CROWFOOT VILLAGE HONDA

Website: www.cmpauto.com

UNIVERSAL FORD LINCOLN

AUTOMOTIVE DEALERSHIPS

Universal Ford Lincoln offers new Ford and Lincoln cars in Calgary, along with used cars, trucks and SUVs by top manufacturers. Universal Ford Lincoln offers expert advice for those seeking a great car loan in Calgary. The finance team will assist you in getting the auto loan in Calgary that suits your budget. Their sales staff will help you find that new Ford, Lincoln or used car you have been searching for in Calgary.

Website: www.villagehonda.com

CALGARY BMW

AUTOMOTIVE DEALERSHIPS

AUTOMOTIVE DEALERSHIPS

You want more from your BMW dealership than just exceptional vehicles, great advice and perfect customer service. You expect personal advice and the feeling that you are being listened to and understood. This is exactly the philosophy the BMW Calgary dealerships take very seriously.

Website: www.myuniversal.ca

COUNTRY HILLS TOYOTA

AUTOMOTIVE DEALERSHIPS

Village Honda opened for business 24 years ago offering the full range of new Honda vehicles to motorists in Calgary and the surrounding area. Village Honda offers a new car sales department, pre-owned sales department and detailing department. Village Honda takes pride in applying a strong commitment to ensuring the full satisfaction of all of their customers.

Website: www.calgarybmw.ca

RENFREW CHRYSLER JEEP

AUTOMOTIVE DEALERSHIPS

Whether you are looking for a brand new Toyota or used vehicle, or need the services of professionals, Country Hills Toyota is your one-stop shop for Toyota expertise. Located in Calgary, Country Hills Toyota offers drive-thru service and has been Calgary’s and Western Canada’s largest volume Toyota dealership.

Renfrew Chrysler offers brand new Chrysler, Dodge, Ram, Jeep and FIAT cars in Calgary, along with used cars, used trucks and used SUVs by top manufacturers.

This professional sales staff will help you find that new or used car you have been searching for in Calgary, or nearby Airdrie, Cochrane and High River.

Website: www.chtoyota.ca

Website: www.renfrewchrysler.com

SHAGANAPPI CHEVROLET LTD

AUTOMOTIVE DEALERSHIPS

At Shaganappi you will find new or used Chevrolet, GMC or Buick vehicles; a reliable and stylish new car at a price you can afford. Shaganappi GM has the used cars in Calgary that you have been searching for, with an experienced sales team who will show you a variety of pre-owned cars, trucks and SUVs to choose from.

EASTSIDE DODGE CHRYSLER JEEP

AUTOMOTIVE DEALERSHIPS

Eastside Dodge Chrysler Jeep is located in Calgary, and are neighbours to Airdrie, Cochrane and High River. Eastside provides a strong and committed sales team who is down to earth and has years of experience in helping customers with their needs. All customers are encouraged to come in and take advantage of the knowledgeable auto repair technicians and a fully-stocked inventory of auto parts.

Website: www.shaganappi.com

Website: www.eastsidedodge.ca

AUTOMOTIVE DEALERSHIPS Due to the extensive appetite for mobility among people in developing economies, the automotive industry will continue to grow over the next 10 years. In this highly competitive market, dealers are always trying to find innovative new ways to enhance their service offering and to boost sales of new vehicles. The rapid evolvement of cars and the technologies that generate functionality, has made it a lucrative and exciting time to be involved in this industry. It is now the duty of automobile makers to be at the forefront of these innovations, whether it’s the latest electric vehicle, improvements in mileage, hybrid cars and any number of other new vehicles.

A good gauge of the economy are also car and truck sales, since consumer spending on large purchases such as a vehicle is a sign of how confident people are in the broader economy – and how much disposable income they have. Regardless of the economic environment, it is essential for automotive dealerships to be creative and competitive as they evolve to meet the needs of consumers.

66 • November 2012 BUSINESS IN CALGARY | www.businessincalgary.com

Calgary’s Top Industries DYNAMIC SOURCE MANUFACTURING

MANUFACTURING

DSM partners with customers to provide flexible, customized manufacturing solutions. DSM utilizes cutting-edge technology to provide a full suite of services including quickturn - prototyping, volume manufacturing, testing, component sourcing and box build assembly. Customers enjoy the highest-quality products with a reduced time-to-market, resulting in a competitive edge and increased profitability.

Website: dynamicsourcemfg.com

STREAMLINE AUTOMATION LTD

MANUFACTURING

Calgary’s manufacturing sector is dynamic compromising a variety of consumer and industrial products, reaping the benefits of continuing strong economic growth in Calgary. The city’s exceptional business climate offers manufacturers well-developed infrastructure, good access to capital as well as a head office concentration of buyers.

MANUFACTURING

Streamline Automation has become an industry leader in the automation of foam cutting and foam carving. Streamline Automation is not your traditional equipment company. Streamline offers the most complete line of foam cutting equipment on the market, but also works with clients to help take their production processes, and their businesses to new levels.

Website: www.3dcutting.com

HEATLINK

MANUFACTURING

In 1992 HeatLink was trademarked, and soon afterwards entered the U.S. market. By the late 1990s international interest in their systems led to the establishment of additional sales offices in Ireland, China and Mexico. HeatLink has been in the radiant hydronic business for three decades. The first floor heating installation was in Calgary’s exclusive Pump Hill district. From there HeatLink continued to develop systems and expanded sales across Canada.

SMITH & NEPHEW

Website: global.smith-nephew.com

Website: www.heatlink.ca

MRO ELECTRONIC SUPPLY LTD

MANUFACTURING

MRO Electronic Supply Ltd. is a broad line electronics and industrial product distributor. MRO Electronics Supply Ltd. was founded in 1991 and has three major stocking locations in Calgary, Edmonton and Vancouver.

WARRIOR MANUFACTURING SVC LTD

MANUFACTURING

Tresco Consoles is internationally recognized as a creator of functionally effective and visually inspiring control room consoles. With over 4000 control room installations worldwide, Tresco stands out as a leader in the design and development of console solutions by virtue of its willingness and ability to develop custom console solutions responsive to end user requirements.

Website: www.trescoconsoles.com

MANUFACTURING

Warrior started business in September 2005 with a contract to custom design and build trailer-mounted drilling rigs. This included the design and manufacture of masts substructures and support components. Warrior’s present and long-term focus is on the design and manufacture of technically-advanced rig components including top drives, automated tubular tongs (iron roughnecks), drawworks (AC & hydraulic), and to expand its repair and service capabilities.

Website: www.mroelectronics.com

TRESCO INDUSTRIES LTD

MANUFACTURING

Smith & Nephew is a global medical technology business dedicated to helping improve people’s lives. Smith & Nephew has almost 11,000 employees and a presence in more than 90 countries. Smith & Nephew strives in leadership positions in orthopedic reconstruction, advanced wound management, sports medicine and trauma.

Website: www.warriorrig.com

INTEGRATED DATA CORP

MANUFACTURING

The IDC management team has extensive experience in software development, software integration services, operations, government contracting, local and federal legislative affairs, sales, marketing, public relations, business development, and finance. The IDC management team is comprised of talented and successful individuals with significant cumulative experience in the management of successful companies.

Website: www.idc-global.com

www.businessincalgary.com | BUSINESS IN CALGARY November 2012 • 67

E L E C T R O - M E C H A N I C A L A S S E M B LY S O L U T I O N S

DSM positioned for next wave of growth

D

ynamic Source Manufacturing Inc. (DSM) is an electronics manufacturing services provider headquartered in Calgary. In business since 2000, their success is a direct result of providing customers with responsive and flexible, customized manufacturing solutions. Their long-term relationships with customers in the communications, industrial, medical, energy and military sectors are testament to this partnership. DSM maintains certification to ISO9001 and ISO13485, as well as controlled goods certification by the Canadian government for military applications.

DSM is well positioned and ready for the next wave of economic growth within the electronics manufacturing services (EMS) industry.

Continually adapting to customer demands, the company infrastructure is strong looking ahead. Amid industry talk of noticeable returns to onshore electronics manufacturing, DSM has taken a strategic growth route to ensure they continue to service existing customers, match their ambitions and partner with new clients, growing into the future.

“Admitting when and how to re-invent our business model has made DSM more flexible to change, embracing new and

innovative ideas to add value for our customers,” says Duane Macauley, president at DSM. “By listening and understanding a customer’s needs, challenges and goals, strengthens our partnerships and encourages joint growth and prosperity. DSM has established the right culture and internal support team, providing character and care, ensuring consistent delivery of quality and reliable electronic assembly solutions are ultimately achieved.”

Anticipating the next chapter in electronic manufacturing services, DSM has recently opened a global procurement centre in Phoenix, Arizona. Not only does this facility offer a focused specific, designated procurement team, it also opens new avenues across North America and shows DSM’s commitment to embrace their growth strategy with a presence in the United States.

Continuing all duties at the head office in Calgary, the main assignment of the Phoenix facility is to tackle global procurement solutions head on, and contribute improvement of services from DSM. Since 2000, and the incorporation of Dynamic Source Manufacturing, the ethics have always remained strong, supplying quality, reliable electronic assembly solutions, with customized and flexible services to all clients – the path for mutual benefit.

Dynamic Source Manufacturing

Understanding what DSM do exactly, knowing how we assemble our boards and mechanical builds is important… but seeing how we deliver our services… that’s assuring!

DMS KEY FACTS • In operation since 2000 • 30,000 sq ft purpose built facility • 5 SMT lines and 2 Electro-Mechanical Assembly lines • Class 10K Cleanroom • Global supply chain management solutions • Functional test system design and development • JTAG Technologies Inc. boundary scan test development partner • RMA and Warranty Repair Centre for OEM’s • Designated Global Procurement Centre • Registered supplier of Government of Canada’s Controlled Goods Program (CGP) • Successfully serving, Communications, Industrial, Medical, Military and Oil & Gas markets • ISO9001: 2000 and ISO13485: 2003 (Medical) Certified

ELECTRONIC MANUFACTURING SERVICES

Unit 117, 2765 – 48th Avenue N.E. Calgary, Alberta, T3J 5M9 Canada Tel: + 403 516 1888 • Fax: + 403 532 0412 • www.dynamicsourcemfg.com

Calgary’s Top Industries HOME BUILDERS Calgary Developers have been getting creative in their offerings to consumers, which is essential to the development of any city. The construction industry has benefited within the past year as a whole in Calgary. While some areas saw more modest growth, others experienced a heightened demand. Like manufacturing, the residential construction industry is closely linked to the oil and gas industry, which obviously fuels the majority of Calgary’s overall economy – and therefore new homebuyers.

According to figures released in October by the Calgary Real Estate Board (CRED), residential sales continued to gain momentum in Calgary this year, totaling 17,119 after the first three quarters, a fifteen per cent rise over last year. “The real growth was in surrounding towns which consumers where drawn by improving choice, affordable prices and lifestyle factors,” says Bob Jablonski, president-elect of CREB. Single-family home sales totaled 1130 for the month of September, 2012, a nine per cent decrease over last September. Year-to-date sales totaled 12,267 units, a 16 per cent increase over last year.

INNOVATIONS BY JAYMAN

HOME BUILDERS

For 30 years, Jayman MasterBUILT has helped customers find their dream homes. Innovations by Jayman defines choice. A home should be a reflection of your personality and your lifestyle. It comes down to getting what you want and not compromising. Jayman includes you in their plans and provides you with options that will stand out as uniquely yours.

LANDMARK HOMES INC

Website: www.jayman.com

TRICO HOMES INC

HOME BUILDERS

From humble beginnings, and less than 20 houses per year in the early ‘90s, Trico Homes has established an enviable reputation and is recognized as one of Western Canada’s top residential builders - with a history of integrity, community support and a legacy of building over 4500 single- and multi-family homes.

Website: www.landmarkgroup.ca

DISCOVERY HOMES

HOME BUILDERS

HOME BUILDERS

Discovery Homes was started in 1996 by Al Morrison as part of Morrison Homes. As a result of land becoming available to Morrison Homes in a laned community, the opportunity arose to introduce higher-quality finishing and specifications to the first time market and buyer. From the beginning Morrison relied on integrity, quality craftsmanship and personalized service.

Website: www.discoveryhomes.net

Website: www.tricohomes.com

MORRISON HOMES

HOME BUILDERS

The Landmark Group of Builders rose from humble beginnings as Nasseri Construction in 1977. Landmark Homes (Edmonton) Inc. received the most prestigious J.D. Power award for “highest customer satisfaction in the Edmonton Region.” Landmark Homes recognizes corporate and personal responsibilities, constantly improving environmental performance in their methods of construction and the products used. In the past 30 years of serving Alberta’s housing market, the Landmark Group of Builders has built over 8300 homes.

CARDEL HOMES

HOME BUILDERS

Back in 1961, Frank Morrison gave life to Morrison Homes. Things were different back then. Not only did kids walk 10 miles to school in the snow (uphill both ways), but Frank’s new company, based out of the Morrison family home, built only a handful of homes in its earliest years. Since then, a lot has changed. With Frank’s son, Al, leading the charge, they now build hundreds of homes each year out of three divisions.

Since Cardel first broke ground in 1973, this family business has grown into a major builder, constructing over 1000 units per year in residential markets across North America. A wide range of products including a single-family portfolio, multi-family projects and resort properties is offered by Cardel Homes. Despite the booming growth and widespread expansion, Cardel retains the best qualities of a privately-owned family business.

Website: www.morrisonhomes.ca

Website: www.cardelhomes.com

BAYWEST HOMES LTD

HOME BUILDERS

Under the leadership of Baywest’s president Glenn Fedoroshyn and the management team, Baywest has emerged as one of Calgary’s specialty builders, focusing on customized and full custom homes in the city’s most dynamic new communities. Founded on a 26-year legacy of quality-custom craftsmanship and one-onone relationships, Baywest is an award-winning builder who truly understands how to cater to clients.

Website: www.baywesthomes.com

70 • November 2012 BUSINESS IN CALGARY | www.businessincalgary.com

HOMES BY AVI

HOME BUILDERS

As an innovator in the home-building industry since 1978, Homes by Avi continually positions itself in the most desirable communities while introducing new product lines that work for today’s families. Today, with operations in three markets throughout North America, they still approach every home like it is the only one they are building.

Website: www.homesbyavi.com

Calgary’s Top Industries RESTAURANTS & NIGHTLIFE

Calgary’s nightlife continues to boom, as new ventures become available and trends change. The city features an abundance of restaurants that offer a great selection of finger foods, as well as sumptuous entrées and desserts to satisfy any appetite. Calgary’s entertainment scene is geographically spread far and wide across the city; accordingly, the city’s nightlife usually ranges with utter versatility. Calgary’s nightlife accommodates one and all, from the weekday workers to and weekend folks, whatever their tastes demand: Whether fond of electronica, metal, dub and reggae, or whether just needing an evening away from home, Calgary’s nightlife has something to offer.

JOEY RESTAURANTS

RESTAURANTS & NIGHTLIFE

Joey was first established in 1992. Today Joey is how the words “casual” and “upscale” fit perfectly in the same sentence as “dining.” Joey is about exceptional food inspired by little out-of-the-way places from all over this big planet. All guests are taken care of with service that seems to say, “We thought of that just for you.”

Website: www.joeyrestaurants.com

COWBOYS DANCE HALL

RESTAURANTS & NIGHTLIFE

Cowboys Dance Hall Ltd is a privately-owned nightclub located in Calgary.

Established in 1996, Cowboys offers a variety of events as well as the nightclub atmosphere. Cowboys Dance Hall has become one of Calgary’s most internationally-renowned party venues featuring a variety of music to cater to just about everyone.

Website: www.cowboysnightclub.com/

CEILI’S IRISH PUB & RESTAURANT

RESTAURANTS & NIGHTLIFE

Ceili’s Irish Pub and Restaurant started “pouring the pints” back in 1999 and the taps have not turned off since. Currently Ceili’s operates six high-profile pubs in Western Canada - three in Calgary and three in the greater Vancouver area.

Whichever of the pubs you may be visiting, expect that you will be greeted with a warm smile, a cold beer and local hospitality.

Website: www.ceilis.com

RANCHMAN’S

RESTAURANTS & NIGHTLIFE

Ranchman’s Cookhouse and Dance Saloon is famously known as Stampede party headquarters. This hot spot presents some of the biggest names in country music and is the official hospitality location of the Canadian Professional Rodeo Association. Calgary’s premier country dance hall and 14-time county club of the year, Ranchman’s has served authentic Calgary-style western hospitality since 1972.

MAVERICKS DINING ROOM & LOUNGE

Website: corporate.calgarystampede.com/faq/diningfood-options.html

BACK ALLEY NIGHTCLUB

RESTAURANTS & NIGHTLIFE

The Calgary Elks has had over 80 years to mature into one of the finest golf courses in the Calgary area. Opening in 1923 as the Regal, the Elks Lodge #4 took over proprietorship in 1967 and the course has seen many changes since, including a major redesign in 1992 by golf architect Les Furber.

Website: www.calgaryelks.com

RESTAURANTS & NIGHTLIFE

The Back Alley Nightclub is Calgary’s favourite nightclub and has been since, well since probably before most of you were born! At the Back Alley nightclub everyone love to party. The host to the biggest bashes in Calgary with the hottest dance floor, they play all the hits Wednesday, Friday and Saturday nights, and every long weekend Sunday.

Website: www.ranchmans.com

CALGARY ELKS LODGE & GOLF CLUB

RESTAURANTS & NIGHTLIFE

Mavericks Dining Room and Lounge presents a hearty menu for weekday lunches and also opens during major events. Groups from 25 to 350 can be accommodated. Mavericks is a western-themed restaurant located in the Big Four Building on Stampede Park. Mavericks is also available for private functions and corporate receptions.

Website: www.mybackalley.com

Earls

restaurants & nightlife

Since Earls’ humble beginnings as that laid-back beer and burger joint, both the atmosphere and menus have evolved. Earls has created a comfortable yet upscale atmosphere where guests are equally welcome to dress up or wind down. Earls Restaurant takes its inspiration from the world’s most popular cuisines and gives them a spin that’s authentically Earls.

Website: www.earls.ca

www.businessincalgary.com | BUSINESS IN CALGARY November 2012 • 71

Calgary’s Top Industries ARC FINANCIAL CORP

FINANCE The city’s financial sector includes a number of institutions ranging from multinational and retail banks to investment firms, stockbrokers, trust companies and credit unions. Most of the major banks in Canada maintain their western Canadian head office in Calgary.

FINANCE

The evolution of the production acquisition business led to the founding of ARC Resources Ltd. in 1996. It began to invest as principals and with partners in the equity of early-stage energy companies, and to acquire oil and gas production assets. ARC Financial Corp. is committed to supporting organizations that make meaningful contributions to the community.

Website: www.arcfinancial.com

MAWER INVESTMENT MANAGEMENT

FINANCE

Founded in 1974, Mawer is a privately-owned, independent investment counsellor. Mawer manages in excess of $11.6 billion in assets for a broad range of individual and institutional investors across all major asset classes. The firm is one of Canada’s most experienced investment counsellors. Throughout, Mawer has provided consistent, steady portfolio management for all clients based on a solid, proven investment philosophy and disciplined processes.

Website: www.mawer.com

MNP LLP

FINANCE

FIDUCIARY TRUST CO OF CANADA

FINANCE

MNP LLP began in 1945, when their founders sat down and discussed their ideas and vision, setting an example for the firm they would establish. Today, this philosophy remains the cornerstone of MNP’s success. For more than 65 years, relationships have connected them and defined their actions, keeping MNP focused on what matters most - helping people achieve their goals.

For over 25 years, Fiduciary Trust Canada has been helping individuals, families and foundations across Canada to meet their investment management and estate objectives. At Fiduciary Trust Canada, the meaning and importance of work stems from knowing implicitly that what Fiduciay does affects the financial wellbeing and lives of the families they serve.

Website: www.mnp.ca

Website: www.fiduciarytrust.ca

FIRST CALGARY SAVINGS

FINANCE

First Calgary Financial has been giving everyone a real banking alternative since their doors first opened in 1938. Over the past 75 years, First Calgary Financial has grown to become Canada’s ninth largest credit union with over 500 employees serving 80,000 members at 16 locations across the greater Calgary area.

MCLEAN & PARTNERS

At McLean & Partners the clients are the core and focus of this business. These clients are high net-worth individuals who have worked hard and done well. All clients see the benefit of a dynamic investment strategy designed to deliver a reasonable rate of return while being sensitive to the risks associated with investing.

Website: www.firstcalgary.com

MACQUARIE

FINANCE

FINANCE

Website: guest.mcleanpartners.com

CANADA LOYAL FINANCIAL

FINANCE

Macquarie Group is a global provider of banking, financial, advisory, investment and funds management services. Macquarie’s main business focus is making returns by providing a diversified range of services to clients. Macquarie acts on behalf of institutional, corporate and retail clients and counterparts around the world. They have expertise in specific industries, including resources and commodities, energy, financial institutions, infrastructure and real estate.

Canada Loyal Financial is a managing general agency and a leading distributor for 18 of the top insurance and financial service providers in Canada. As a result, Canada Loyal Financial is able to provide their clients and business partners with a full range of the best financial solutions and product innovations available in the country.

Website: www.macquarie.ca

Website: www.canadaloyal.com

72 • November 2012 BUSINESS IN CALGARY | www.businessincalgary.com

CANADA’S LEADING ENERGY-FOCUSED PRIVATE EQUITY INVESTOR

With $3.7 billion of capital across the seven ARC Energy Funds, ARC Financial Corp. is Canada’s leading energy-focused private equity manager. We are focused on Canada and invest in growth strategies to explore, acquire and develop crude oil, oil sands and natural gas reserves and production, and in companies that provide supporting services and equipment.

Canada’s leading energy-focused private equity investor

Canada’s leading energy-focused private equity ARC FINANCIAL CORP. 4300, 400 - 3rd Avenue S.W., Calgary, Alberta T2P 4H2

ARC FINANCIAL Tel: 403.292.0680CORP. www.arcfinancial.com 4300, 400 - 3rd Avenue S.W., Calgary, Alberta T2P 4H2 Tel: 403.292.0680

THE OFFICIAL MAGAZINE OF THE HUMAN RESOURCES INSTITUTE OF ALBERTA

NOVEMBER 2012

DRIVING BUSINESS FORWARD

CALGARY EDITION

▼ ▼ ▼

HUMANCapital Embracing Change – A New Brand for HR in Alberta by: Cori Imbery and Bailey Lomas

The Human Resources Institute of Alberta (HRIA) is pleased to announce the launch of Human Capital, the new official publication for the HRIA. With the launch of Human Capital readers will see a shift from an association, member-centric newsletter to an industry, business-focused magazine. This new publication will reflect the growth and evolution of the human resources profession and its increasing influence and impact on business success.

The decision to change HRIA’s Network and HRAC’s Perspective to Human Capital was made for two reasons; firstly, in tandem with a new HRIA logo (see page 3), it reflects the merging of the various HR associations within Alberta and secondly, the name must reflect the publication’s shifting focus to HR issues delivered in an overarching business context. Traditionally capital is referred to as the money, property and other valuables that collectively represent the assets of a business. Human capital is described as the stock of competencies like knowledge, social skills and personality attributes that are personified in the ability to provide economic value.

When one thinks about human capi-

tal they should consider the following workforce challenges: organizational effectiveness, succession planning, strategic workforce planning, compensation/total rewards, and occupational health, safety and wellness.

While Canada fared comparatively well during the recent economic crisis, its effects were still felt. With Alberta’s economy tied so heavily to the energy industry many organizations and their employees felt the pinch. Business leaders looked to their executives for creative ways to weather the storm. In situations like this many look to what seems to be the most viable and easiest solution – reducing human capital.

More often than not, minimal – if any – consideration is given to the residual implications and long-term impacts of these actions. Cutting back on the workforce by encouraging early retirement and implementing mass layoffs typically means that companies are cutting back on prime industry expertise that is very difficult to regain. Jumping quickly to solutions like these can often leave companies at a disadvantage when things start to pick up. Now that the storm has passed innovative and forward-thinking business leaders rec-

IN THIS ISSUE: • The Power of One • Smart HR • HR Consulting to Small Businesses • Engage, Connect, Develop

HUMAN CAPITAL - CALGARY EDITION

ognize that there is a strong need for strategic planning that tie all areas of human resource management to the organization’s overall objectives.

With the lessons learned from the crisis, and the impending workforce challenges, there has never been a brighter light on human resources and the importance of the HR departments. It is no longer just about the financial capital, but clearly dependent on accurate, strategic management of human capital.

While many business and HR leaders recognize there is a need for improved HR delivery models to enable business decisions, growth, flexibility and scalability, many organizations are not prepared for these types of challenges.

Business leaders who understand the interconnection between these challenges will be in the best position to meet the growing needs of business – now and into the future.

The Human Resources Institute of Alberta’s Official Publication – Human Capital – will speak to forward-thinking leaders who recognize that there is a shift in how

successful businesses are run. Content will provide senior level business professionals with best practices, current industry trends and business advice. Readers will find the content to be relevant and useful with a strategic, business focus defined by its ability to add value to the business.

Each issue will communicate the strategies used to achieve corporate goals by highlighting challenging industry situations and providing real-world solutions to confounding issues from peers and industry experts.

Along with the new content direction, we are pleased to introduce three new recurring features that will run in each issue: 1)Economic Pulse – will provide a quick and easy to view dashboard of key economic metrics, offering an historical snapshot of statistics for today versus previous years.

2)HR LegalEase – will feature legal advice from leading HR law experts, speaking on today’s issues in the human resources profession.

3)Tech Talk – an exciting read on the updates in technology offering readers tips and tricks on utilizing some of the most influential technology pieces to date.

We hope you enjoy this sneak peak of Human Capital – the magazine will officially be launched in December with the 2012 winter issue. Look for a copy from your HR professional and read how to effectively handle employee recruitment and retention, a hot topic for today’s workplace, specifically in Alberta. Subsequent to the launch in December, the publication distribution schedule will be quarterly with circulations in the spring (March), summer (June), fall (September) and winter (December). Watch for the 2013 editorial schedule announcement at www. hria.ca in November.

If you are not a member of HRIA and would like to receive a copy, please contact Bailey Lomas at blomas@hria.ca to be added to our distribution list.

The Power of One - Merging of Alberta’s HR Associations by: Nora Molina

1. Embracing Volatility 2. Growing Globally 3. Risk Resilience 4. Talent Challenge 5. Innovation How do these themes translate to relatively small non-profit HR associations in Alberta? Same issues, smaller scale, slightly different landscape. Until recently, HR practitioners within the Alberta business community have been serviced by several independent HR associations across the province. Each association had common needs and provided

DRIVING BUSINESS FORWARD

▼ ▼ ▼

What’s the number one concern on the minds of business leaders today?

Check any of CEO surveys and you’ll see the common theme – labour shortage, talent management and succession planning. As a result, organizations are looking to HR leaders to help them stay competitive and meet the challenges of a cautious, uncertain, or growing economy – which is it? Of course, your reality or prediction varies depending on your industry. PwC’s 15th Annual Global CEO Survey 2012 reported that the top issues on the minds of CEOs are:

varying services often with overlapping memberships. This clearly was an opportunity for innovation.

Launching off the success of the 2009 collaborative partnership between seven HR associations, the association leaders came to an agreement this summer with the commitment to merge as one.

This decision to merge came after lengthy consultations with internal and external stakeholders, including business leaders and non-HR practitioners. The message we received was clear – both the HR profession,

www.hria.ca

HUMAN CAPITAL - CALGARY EDITION

and the business community in Alberta, would be served best by one association as a single point of contact delivering coordinated services.

There is a growing demand for qualified professionals to lead and manage HR matters. How we continue to grow in both members and services, directly impacts the potential productivity of Alberta business and it’s important for the association’s to keep pace with the demand. In the ongoing talent challenge HR practitioners are seeking to differentiate themselves and stay competitive, as well as bring strategic value to their organizations. Today, the collective membership of our combined associations represents nearly 5,500 HR practitioners, of which 52% are Certified Human Resources Professionals (CHRP) and a further 34% are pursuing certification.

sional, are seeking the services of an HR consultant, or looking for HR related resources.

Merging as one will allow us to present a consistent brand identity, and raise our level of efficiency and effectiveness in serving all our stakeholder groups. As organizations are embracing volatility and managing risk, we’re on the same path looking internally and applying the same principles to take our business to the

next level. The new model for one association focuses on advancing the profession of human resources in order to help Alberta business meet the demands of challenging times, whatever they may be. ___________________________ _____________ Nora Molina, MBA, Executive Director, Human Resources Institute of Alberta. She can be reached at 403.541.8701 or nmolina@hria.ca .

What does merging as one association mean for Alberta business? A single point of contact whether you’re looking to hire an HR profes-

President’s Message - Calgary Chapter by: Laura Hansen Somers

In preparation for this President’s Message, I looked back on an editorial I wrote in 2006 for the predecessor association magazine to this one, and I was struck by how close we are again statistically to the 2006 labour situation in Alberta. With the lowest unemployment rate in Canada, and the highest participation rate in the workforce nationwide (according to the HRDC Labour Market bulletin for Alberta, Summer 2012), human resources departments across Alberta are experiencing déjà vu in developing workforce planning strategies, managing labour costs and delivering on company objectives without 3

| human capital |

compromising on health, safety and the environment.

Statistics don’t always tell the whole story. This time, there is a different feel to the labour situation.

There is an air of caution, which I hope is cautious optimism, as the worldwide economic turmoil continues to revolve around us. Like any catastrophic event in history, the economic collapse of 2008 exposed the weaknesses of the dominant species of the business world, giving way to those who could adapt and thrive in the new reality. Industry has learned lessons from the past five

years; business has evolved. Human resources, both the profession and the practice, have also evolved.

The evolution within our profession has resulted in the Human Resources Association of Calgary joining forces with the other regional provincial HR associations and the Human Resources Institute of Alberta, to operate as one association. Like any evolution, the fine-tuning of systems and processes happens over time, and I, along with my regional board, am looking forward to what this new evolution in our profession will mean to our stakeholders. In the coming year, we will

HUMAN CAPITAL - CALGARY EDITION

C E N E R A I S P L E A S E D TO A N N O U N C E …

Joan Dunlop and Chelsea Kourline have joined our team.

As part of our continued growth, we would like

It is with great excitement we announce that Joan

to welcome Chelsea Kourline to our Search

Dunlop has joined our Privacy and Information Management practice. Her work as an analyst

and Recruitment practice. With a background

and resource administering the Alberta

in the education industry, with previous roles in post-secondary recruitment and career

Freedom of Information and Protection of

development, she uses strong analytical, research

Privacy (FOIPP) Act inspired her interest

and communication skills to ensure our

in the world of privacy and information

clients find the best candidates for their

management. Read more about Joan at

organization. Read more about Chelsea at

www.cenera.ca.

www.cenera.ca.

Joan can be reached at 403.294.7243

Chelsea can be reached at 403.294.3785

or joan.dunlop@cenera.ca

or chelsea.kourline@cenera.ca Cenera is a Calgary based Human Resource and Business Consulting firm

SERVICES INCLUDE

providing integrated strategies, practical solutions and measurable results

• SEARCH AND RECRUITMENT • CAREER TRANSITION

to clients in a variety of areas. We integrate a broad range of talents to implement solutions that address our clients most pressing business needs.

• CONSULTING • HUMAN RESOURCE ADVISORY SERVICES • PRIVACY AND INFORMATION MANAGEMENT • COACHING

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RESULTS | RELATIONSHIPS | COMMITMENT

www.silverberggroup.com Calgary 403.234.7878 | Edmonton 780.448.0676 | Red Deer 403.342.4822

| November | 2012 | 4

HUMAN CAPITAL - CALGARY EDITION

be leading the next phase of our evolution by focusing our resources on demographically-targeted professional development and networking events, developing a social media strategy and leveraging technology to expand our reach to our various stakeholders, and of course, finalizing the details of one association.

and see for themselves how HR professionals and practitioners are leading in the new economy, by attending one of our events this year.

The Calgary area calendar of events can be viewed at www.hrac.org under Events/Development or by following the link under Regional Connections at www.hria.ca.

To those ends, this preview edition of Human Capital launches our next generation of communicating HR industry matters in Alberta under the one provincewide banner.

I invite all readers of this Business In Calgary preview edition to come

I would like to sign off with a word, and the significance of that word, borrowed from Starbucks’ CEO Howard Schultz. Schultz would conclude his corporate memos with “{a} word that alluded to the power of our past as well as the potential of our

future. A word that implied passion as well as planning and spoke to the confidence which we had to forge ahead, despite daunting hurdles.” (Schultz, 2011). That word is: onward.

Howard Schultz with Joanne Gordon (2011). Onward: How Starbucks Fought for Its Life without Losing Its Soul. USA: Rodale. 101. ___________________________ _____________ Laura Hansen, CHRP, HRAC President and President at LHS Associates Inc. She can be reached at (403) 618-8206 or laura.hansen@ shaw.ca.

SMART HR: Back to the Basics by: Glenda Rouleau

Successful Businesses and Smart HR I remember when I proudly declared my career goal to my father, the accountant. I was going to become an HR professional. To my chagrin, he looked at me rather dumbfounded and asked: “What the heck is HR?” That was over 25 years ago, and I am still being asked the same question.

My career in HR has spanned several industries with varied types of organizations ranging in size from less than 10 to greater than 4000 employees. I have had the privilege of working with several companies that have been recognized across Canada as being top employers. I have also worked with companies that I would describe as among the worst employers in Canada. The key differentiator for the successful organizations is their approach to HR management which drives the treatment of their people. They practice what I call “Smart HR.” Smart HR is easy to do. There are four basic steps: 5

| human capital |

1. UNDERSTAND what HR is.

We have all heard that if you cannot measure it, you cannot manage it. What if you don’t even know what the “it” is? Although appearing complex, HR can be simplified into five basic foundations. These foundations are interconnected and overlap, thus adding complexities and challenges, however, all people issues can be brought back to the basics. Remember the other timeless acronym about keeping it simple, the good old KISS approach.

2. ACCEPT the fundamental business need for HR management. It cannot be avoided. You have to do it to succeed. People issues will not go away. Managing and leading your employees is the single most important function you do as a business leader.

3. EMBRACE the practice of HR management. Truly embed HR as a core value of your company. Make your human resources your most important asset. This step moves you from basic to smart HR.

4. DELIVER proactive and effective HR strategies, plans, programs and practices. Again, the timeless management rule – walk the talk.

Successful companies are smart HR companies. I have witnessed this over and over in my career. The smart HR organizations are the ones we read about, study, envy and strive to emulate. For small businesses, smart HR is the core foundation for profitability and longevity.

The focus of this article is on the first element of smart HR – establishing an understanding of human resources. Companies need to have a basic working knowledge of the foundations of HR in order to effectively manage HR. This brings us full circle. We are back to my never-ending career question – what is HR? What is HR? How do you define human resources?

According to the Encarta Dictionary, the definition of human resources (HR) is: “all the people

HUMAN CAPITAL - CALGARY EDITION

who work in a business or organization, considered as a whole.” The Webster’s Dictionary defines HR as “personnel,” further explained as manpower, staff, labour, workforce, employees, human capital and human assets.

I prefer an even simpler definition: Human Resources = People Human Resources Management = People Management This appears simple. In practice, managing people can be a challenge.

Human beings are complex. At work or play, we are unique. We think, feel, act and react in ways that are not entirely predictable. That is what makes HR management complicated, and sometimes even frightening.

There are never really any clear black or white answers when it comes to dealing with people.

All companies, other than sole proprietorships, have HR (people) and manage HR (people), so we all face the same challenge. Once you have more than one person in your company, you become an HR manager.

The success or failure of your company is ultimately based on how well you fill your role as the HR manager.

For small to medium-size businesses, HR management can be difficult.

Typically, companies of less than 100 employees do not have HR professionals on staff. So it is left to the small business manager to handle all things related to human resources.

For the manager, the people issues can become their single largest consumer of time and energy. And the people issues do not go away! As long as you have employees, you have the HR management challenges that naturally accompany people and their behaviour.

To conclude, HR is simply people, and HR management is the man-

agement of people. As small business leaders, it is essential to understand the core foundations of HR in order to effectively manage HR. Let us explore those foundations in detail.

The Five Foundations of HR After a long career in HR, I have developed a simplified overview of this interwoven discipline by describing human resources in five basic foundations. These are all connected, and many HR activities fall within more than one of the foundations, however they capture the essence of the employee life cycle. The five HR foundations are: 1. Find the People: Attract and hire the talent you require to run your business.

discipline. The majority of HR activities in the first four foundations can be included in this final category, as hiring, setting operational guidelines, compensating and developing your employees are all methods of engagement and retention.

Businesses that practice smart HR have strategies, plans, programs, processes and tasks that drive results within each of the human resources foundations, leading to success in engagement and retention. Again, better understanding each foundation of HR enables businesses to better manage HR. Let us explore each component a bit further.

4. Train and Develop: Provide people with training, education and professional development in support of talent growth and productivity.

FIND THE PEOPLE – Talent Acquisition Talent acquisition is the process of attracting and hiring people. There are numerous HR activities and processes involved in acquiring talent.

First steps involve identifying the need for a job, describing it (the job description) and determining the skills, education and knowledge required for a person to be able to fill the role (competencies). Next, a job posting is developed and venues for sourcing candidates are determined.

Screening of applications is the next step, then on to interviewing, selection, reference checking and finally, the job offer.

5. Engage and Retain: Actively connect with and engage your top talent, with the goal of retaining them on your team. This is the ultimate achievement for companies – finding and keeping the best employees, inspiring them to be productive and contributing members of our company, growing successfully with us for a mutually beneficial period of time.

This last foundation, engagement and retention, captures all components of the human resources

SET THE RULES – Employee Policies, Procedures and Organizational Structure All organizations require basic rules of operation. No matter the size of the company, core policies need to be established to ensure you are working within external regulations and legislation, as well as internally to ensure you are operating within the values and ethics important to your business. Like kids in the sandbox, we need to define the playing area, the expectations and rules of

2. Set the Rules: Establish the policies, procedures, practices and expectations for people working in your organization.

3. Pay and Compensate: Provide the monetary and non-monetary compensation to people in return for their work (such as base pay and benefits).

| November | 2012 | 6

HUMAN CAPITAL - CALGARY EDITION

behaviour in order to play.

Some examples of rules include policies for hours of work, termination, confidentiality, use of company property and code of conduct. The number of employee policies can vary significantly between businesses. Some companies prefer to have rules for everything, while others prefer minimal policies accompanied by operating guidelines.

PAY AND COMPENSATE – Monetary and Non-Monetary Benefits Compensation and benefits includes all monetary and non-monetary compensation you provide to your employees in exchange for their services. Typical monetary compensation includes base pay, overtime, commissions, bonuses, RRSP and vacation pay. Other indirect or nonmonetary compensation includes benefits coverage, professional fees, company vehicles or mileage, cell-

phones or flex time. Reward and incentive programs also form a part of this foundation.

Benefit programs are a large subset of compensation, and are often provided by third-party insurers.

Typical coverage includes medical, dental, disability and life insurance.

TRAIN AND DEVELOP – Grow your Talent The training and development foundation includes both individual and team learning initiatives. Your employees need the basic skills and knowledge they require to do their jobs, as well as have opportunity for continued professional development and growth.

Whether technical, operational, soft skills or managerial based, training and development programs should be linked to your business strategies,

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7

| human capital |

and provide a return on investment from your employees. With foresight and planning, your business will benefit from increased productivity, improved customer service, energized creativity and employee retention when you provide training and development to your people.

ENGAGE AND RETAIN – Smart HR! This foundation is a “catch-all” for HR services and activities in support of engaging your employees and keeping them on your team.

Engaged employees “stay, say and serve,” meaning they want to stay with your company, say great things about your business and provide great service to your stakeholders.

All the things you do to set your company culture and climate are part of employee engagement and retention. All HR management activities should support this foundation. Companies that do this well are practicing smart HR. HOW to do SMART HR Going back to the beginning – smart HR starts with a solid understanding of human resources.

This article has provided a basic framework to explain the components of HR management.

Your next step is to accept your responsibility of HR management, and then kick it up a notch! Embrace HR and deliver on your commitment to your people. This finishes your journey from basic to providing smart HR. It can be fun! Stay tuned. ___________________________ _____________ Glenda Rouleau, Director, HR Services at Riata Partners Inc. She can be reached at (780) 761-2424 or Glenda@riataparners.com.

HUMAN CAPITAL - CALGARY EDITION

HR Consulting to Small Businesses by: Jane Grant

Often in small businesses, the presence of internal HR resources is non-existent and may be managed by a designated individual (e.g. business owner) or individuals who may not have the expertise to truly embrace the many facets of human resources.

Given this, small businesses rely on the objectivity and expertise of an external HR consultant especially someone with the CHRP (certified human resources professional) designation who has the knowledge, skills and experience in the various areas of human resources. Services can range from the design and implementation of systems and processes regarding recruitment, selection and orientation, performance and career development, compensation and benefits, training and development, health and wellness, and employee relations to legislation affecting HR. Align yourself with other external multidisciplinary consultants. Partnering with other consultants can

Recognize that you cannot be “all things to all people” so know what your area of expertise is and use other external HR consultants if/when required.

Get to know the business and the products/services the small business provides. Learn what the business is about, their history and the products they make and/or the services they provide. Do this upfront even before you have your first meeting with the owners/executive group. For example, while working with a small business in fabrication and manufacturing, I conducted a lot of research regarding welding and the welding profession.

Doing that research paid off especially when the business owner and senior team members were impressed with the contributions that were made during initial meetings. Rapport was quickly established. This leads to another key aspect of HR consulting to small businesses: establish and maintain effective working relationships with small business owners/leaders and other key contacts in the business. Commit to a high level of professionalism and high-quality client service. Providing HR expertise is only one part of the equation … what else do you have to offer? For me, those attributes include trust, effective communications (both written and verbal),

How much is turnover costing you?

u ro

ou nd Y rself

the onnel pers rtment depa a St

ff

First of all, find out who’s handling the HR function. According to BDC (the Business Development Bank of Canada), small business is big in Canada with 98 per cent of small businesses having fewer than 100 employees. In Alberta, small businesses account for 96 per cent of all business in the province according to its 2011 provincial small business profile.

provide an introduction to the small business especially when aligning with engineering, IT or even a marketing consultant. Often when issues are present in one area of the business, it signals a presence of issues or needs in another area and most likely that area is in human resources.

Su r

Whether you’re providing external HR consulting services to large, complex organizations or small owner-managed businesses, there will be many satisfying moments and some challenges too. However, with regards to HR consulting to small businesses, there are ways to overcome challenges and create positive outcomes and value to businesses.

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HUMAN CAPITAL - CALGARY EDITION

integrity, confidentiality, flexibility, rapport with everyone in the business (from executives to shop floor employees) and ongoing responsiveness/follow-up with clients.

Small businesses will be looking to the external HR consultant for advice and recommendations and sometimes they may call outside of regular business hours to seek answers or information. It may require having difficult conversations, perhaps having a business rethink their HR priorities and having the HR consultant create a sense of urgency on issues that need attention sooner rather than later. Yet there must be a strong commitment to actively listen to all parties, be open and receptive to new ideas or thoughts of the client, appreciate what is currently working well in the business, and building on the strengths of the business and its people.

Other ways to add value as an external HR consultant to small businesses is to get creative and find out about various funding initiatives

that are available to small businesses.

Some examples include Alberta Agriculture and Rural Development, the Industrial Research Assistance Program (IRAP) – National Research Council Canada, and the Business Development Bank of Canada (BDC). Small businesses may rely heavily on such funding to support the development and implementation of HR initiatives in their organizations.

Along this same theme, learn to write effective proposals since this will prove to be valuable not only for funding submissions but also for documenting the HR consulting services that will be provided to the business.

Finally, as an external HR consultant to small businesses, develop practical, down-to-earth solutions. Where appropriate, design and implement training throughout the business to support the implementation of HR initiatives. This is extremely important since small businesses don’t have the extra resources (time, manpower, money) for implementing what

you’ve designed.

Consulting to small businesses can be very rewarding and can create a win-win for both the HR consultant and the small business client.

According to one of Grant and Associates HR’s clients, Christine Lundahl, COO of Dahlson Industries, the benefits of outsourcing HR are many. “The company receives a repertoire of HR services that has cost savings rather than hiring a fulltime, in-house HR professional. We have been extremely pleased with the rapport established throughout the company with all employees, the great relationship we’ve built, and the flexibility/accommodation of our HR consultant in meeting Dahlson’s HR needs.” ___________________________ _____________ Jane Grant, CHRP, CMC and Certified Coach Practitioner, President and Senior Human Resources Consultant at Grant and Associates HR Inc. She can be reached at (403) 809-1539 or grant-jane@shaw.ca.

How Businesses Can Utilize Untapped Labour Pools for Quality Individuals by: Lisa Moon

Finding the right person for the right job in your organization can be a challenge. Compounding this situation is that Alberta is already experiencing strong economic growth and low unemployment levels, both of which create the possibility of a serious labour shortage in the near future. In this environment, it is not uncommon for an organization to try to think “outside the box” in their recruiting strategy to access untapped pools of talent.

Just how far are you willing to go to find new talent? Often we take 9 | human capital |

this challenge quite literally, which leads to us hiring from foreign countries and recruiting at universities all over the world to find the people we need. Other times we take the challenge more figuratively and we look for candidates who may not have the requisite experience or certification we generally expect, but who have transferable skills that can make them successful with the right guidance.

But what if there was an untapped pool of candidates that didn’t require you to look on the

other side of the world or seek candidates who don’t have the qualifications you expect? What if the only thing preventing you from accessing this talent is your own perceptions or preconceived notions of what fits?

The talent pool I am talking about is skilled and qualified persons with disabilities.

The word disability can conjure up an endless amount of images. This is because the range of disabilities people experience is almost endless.

HUMAN CAPITAL - CALGARY EDITION

You may know someone who is blind and requires a cane to get around, but many people who are blind still have vision. You may know a person with cerebral palsy who cannot walk, but each person with cerebral palsy can have vastly different symptoms.

Similarly, the range of abilities of people with disabilities is diverse. One of the biggest misconceptions we see is employers matching positions to disabilities. For example, thinking a person who uses a wheelchair is ideal for a desk job. Yet we know people with spinal cord injuries who work as travelling salesmen. We know people with anxiety disorders who thrive in high-pressure environments.

To truly think outside the box in your recruiting you have to first remove the limitations you may assign to a person because of their disability.

Sage BusinessVision Real time, Canadian accounting and management software for small to medium size business since 1989.

PJ BUSINESS SERVICES LTD. Ph: 403-296-2675 • Fax: 403-296-2677 7131A - 6th Street SE, Calgary, AB T2H 2M8 www.pjbusinessservices.com

As Master Yoda says, “Try not. Do or do not.”

Trying implies giving something a chance and if it doesn’t work you can move on. This doesn’t work for ethnicity, race or gender, nor does it work for people with disabilities in the workplace. Doing implies permanent and consistent action. Doing implies actively seeking ways to remove barriers that may exist in the recruiting and hiring process. Most importantly, doing can position your organization for continued success with diversity and inclusion, both now and into the future.

Champions Career Centre is a team of inclusion specialists devoted to achieving employment success. Focusing on abilities within disabilities, they provide innovative and realistic career and employer services to Calgarians. ________________________________________ Lisa Moon, Executive Director at Champions Career Centre. She can be reached at (403) 232-0751 or lmoon@ championscareercentre.org

Certified training & support for Sage BusinessVision since 1989.

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YODA: So certain are you. Always with you what cannot be done. Do you nothing that I say.

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YODA: NO! No different, only different in your mind! You must unlearn what you have learned.

LUKE: Alright, I’ll give it a try.

YODA: NO! Try Not. Do or do not.

Drake Communications Inc. (403) 862-8121 • support@drakecom.ca www.drakecom.ca | November | 2012 | 10

HUMAN CAPITAL - CALGARY EDITION

Engage, Connect and Develop with Calgary’s Professional Development and Education Initiatives for 2012/13 by: Fran Parolin

The common question that we as HR professionals are often asked is how do we balance keeping up with current trends, best practices in our profession and yet at the same time deliver the best knowledge and skills in our workplace to our clients while in a timely manner furthering our own growth and education?

As Director of the Professional Development portfolio for the 2012/13 calendar year, myself along with my committee are very excited to provide our members and HR community at large with learning events that continue to build on the strong foundation of professional development initiatives representative of the core values: elevating the profession, support career enhancement and continue to engage membership. We wanted to continue on this strong foundation that ensures our members’ interests and needs are adhered to as well all-encompassing of various networking opportunities for personal and professional growth.

Here’s a quick overview of the year’s highlights that we will incorporate in the framework of our portfolio deliverables:

1. Provide specific targeted audience learning events with delivery strategies that support the topic for that particular group. We are communicating our learning events to our members as novice, mid-career and experienced.

2. Work with guidelines set by the HRIA’s certification standards and communicate to our members certification points that each learning event will be warranted upon their participation.

3. To actively continue in collaborative discussions with regional PD & E portfolio leads as a means of continuing the momentum on alignment of best PD & E strategies across the province such as: minimum standards for each region, sharing of speaker selections and the application of metrics through our member feedback surveys.

4. Adhere to the messages that we have heard from members through various feedback environments and provide a cohesive development portfolio that offer our members depth and breadth to specific HR interest and key industry topics

across roundtable and dinner engagements. We are eager as well to explore webinars as an extension to our offerings.

Our PD & E committee is currently at work researching and planning to provide a plethora of events across the focus areas of retention/ attraction, recruitment, training/ development, compensation and engagement.

We look forward to meeting you at our various HR events this calendar year and through our committee initiatives believe this quote provides a great context to our PD &E events for the 2012/13 year. “The highest reward for a person’s toil is not what they get for it, but what they become by it.” John Ruskin ___________________________ _____________ Fran Parolin, HRAC Director of Professional Development and Learning and OD Specialist at Devon Canada Corporation. She can be reached at (403) 213-7954 or fran.parolin@dvn.com.

2012 Calendar of Events November 20: Dinner Meeting (TBA)

December 4: Member Mingle – Hotel Arts

For further information and registration, please visit www.hrac.org

The Association would also like to thank Norman Poon, Human Resources Analyst at the Bethany Care Society, for his contribution as Editor to the November Human Capital – Calgary Edition.

11 | human capital |

Inland Audio Visual Celebrates 75 Years

By Mary Savage

Interfacing Society

F

rom your morning elevator ride to ordering your favourite coffee at the drive-thru, we rely on electronic “message boards” to keep us informed – with everything. They keep score of the game, they illuminate roadways and they keep businesses connected via meetings and presentations.

And when it comes to effective communication, it has to be seamless in today’s global marketplace. Whether you’re hosting a seminar or an AGM, a ‘do-over’ is not an option – you only have one opportunity to convey your message with efficiency.

“The AV industry is all around us, but people don’t usually recognize it,” says James Werbowski, co-owner, Inland Audio Visual. “We are surrounded by some form of media and electronic signage all the time. The signage communicates with the public to inform, educate, guide, train and advertise, and we put together the products that help people and businesses communicate.”

Throughout Western Canada and for 75 years, Inland AV has played an integral role working behind the scenes to help companies deliver their message – effectively and professionally.

They have evolved as the go-to company for electronic interfacing of seminars, webcasts, videoconferencing and staged events. From small to large businesses and industries that span all sectors, Inland AV delivers the electronic expertise to help your company communicate more effectively.

The company was originally founded in 1937 in Winnipeg, Manitoba as Inland Broadcasting. Some 30 years later, they hired Ed Werbowski to reorganize the structure. Given his entrepreneurial spirit, Ed purchased the business in 1973 and it has remained a family-run operation for almost 40 years.

Ed’s two sons, Kim and James, started working for Inland AV when they were teenagers – while most of their peers had paper routes. “We had our first taste of commerce via quality control when a shipment of record players and cassette recorders arrived at the warehouse,” recalls Kim, co-owner. “We would unpack

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them and test them. We did this for a couple of years – making about 25 cents a box!”

In 1973, Saskatoon was their first expansion, followed by Regina in 1979. “The Regina expansion was the result of a phone call from a customer in the hospitality industry,” remembers Kim. “We provided their AV services and three decades later, that customer still calls us when they have AV requirements.”

During the late 1970s, Kim joined the business full time and he looked after the rental division, largely to help customers in the hospitality industry, which gradually opened up other rental markets in Saskatchewan and Alberta.

In 1981, James joined the company and became responsible for the sales department. “We eventually expanded on the heels of the rental business to offer sales and service throughout our offices in Saskatchewan and Alberta,” adds James.

Ten years later, they opened an office in Calgary, followed by Edmonton. Many of the early expansions started as a one-man shop, but within a few years each branch grew to become a fullservice AV provider.

Inland AV | 75 years

Congratulations Inland Audio Visual on your 75th Anniversary!

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Today, Inland AV has over 100 professionals who help companies communicate effectively, along with 43 hospitality venue partners and an impressive corporate following throughout the Prairie provinces.

Tim Wiest is the branch manager in Regina, Ralph Niekamp manages the Saskatoon operation, Jonathan Duquette heads up the Calgary branch and Ben Mejia manages the Edmonton office.

“We added a division to work in conjunction with videoconferencing and it’s our Managed Services department,” explains James. “We house elaborate video switching equipment so we can manage the end users videoconferencing equipment.

It includes everything from scheduling meetings and checking equipment to servicing equipment remotely.”

Likewise, Inland AV can help customers maximize remote communications. “We can bridge many sites through our Managed Services department. For example, a company will have a videoconferencing site, but they are only able to talk to one or two sites,” says James. “We have the equipment and expertise to transmit to multiple sites. It’s a big pipeline of bandwidth and it provides a lot of opportunities to expand into video and webcam services.”

As Kim notes, the relationship with their suppliers is key to staying ahead of current technology. “Our suppliers are an important aspect when making decisions: they impact the equipment we purchase and following trends in the marketplace,” he says.

“The electronic industry changes quarterly and that’s an exciting part of our business, but you’ve also got to be careful. All of our rental equipment is state-of-the-art and right now, 3D video mapping is new – it’s an area we are excited about,” adds Kim. “Since

Inland AV | 75 years | Page 2

Congratulations to Inland AV celebrating 75 years of success.

we’ve been in the business a long time, we have a sense of what the market is looking for and the right products to invest in.”

When it comes to communications, Inland AV has been observing industry trends for decades. “We are seeing larger displays and more live events in Alberta,” notes Kim. In Saskatchewan, Gesture Technology is starting to emerge and may factor into the evolution of technology and events in the future.

“Most people don’t understand audiovisual, it’s unassuming, but it’s a very vibrant industry. People don’t realize what goes on behind the scenes in order to deliver a flawless presentation.

The client provides the content and we bring it life,” adds James.

“You only have one chance to deliver a great presentation, so if the lights or teleprompter don’t work or the scripts are not on cue, there are going to be problems. We can’t stress enough the importance of doing a rehearsal – it makes a huge difference,” asserts Kim. Looking back, both Kim and James agree their father was an exceptional businessman. “Given Ed’s entrepreneurial spirit and moving forward, our plan is to continually provide the marketplace with leading-edge products and services into the next decade,” adds Kim. “Ed looked at the overall business opportunities, he surrounded himself with good people and built a very successful business that we have continued to grow.”

As Inland Audio Visual celebrates their 75th anniversary, they would like to take a moment to thank all of their customers, suppliers, business partners and employees who have contributed to their success.

Inland AV Calgary 700-58th Ave SE Bay 1 Calgary, AB T2H 2E2 403.252.7726 or 800.495.6006 Email: calgary@inlandAV.ca

Inland AV Saskatoon 21-1738 Quebec Ave Saskatoon, SK S7K 1V9 306.664.8622 or 800.925.6006 Email: saskatoon@inlandAV.ca

Inland AV Edmonton 100, 17893-106A Ave Edmonton, AB T5S 1V8 780.423.4833 or 800.587.4004 Email: edmonton@inlandAV.ca

Inland AV Winnipeg 422 Lucas Ave Box 102, Group 200, RR2 Winnipeg, MB R3C 2E6 204.786.6521 or 800.933.6006 Email: winnipeg@inlandAV.ca

Inland AV Regina 2501 7th Ave Regina, SK S4R 1C7 306.525.8726 or 800.743.8008 Email: regina@inlandAV.ca

www.inlandAV.ca

A Bright Idea From Hitachi.

Take advantage our new Portable Projector Bundle Promotion and receive an additional lamp with purchase!

Portable Series Projectors Feature: Full connectivity including HDMI • Network Control, Maintenance and Security • Optional Wireless • 5.1 lbs Bundle promotion is good through March 31, 2013.

No quantity limit.

Contact Inland AV for more details and purchasing.

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Inland AV | 75 years | Page 3

*Specificatons vary by model. Please visit www.epson.com/ProZ for more information. Epson is a registered trademark and Epson Exceed Your Vision is a registeredlogomark of Seiko Epson Corporation. Copyright 2011 Epson America, Inc.

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Congratulations to Inland AV on your 75th year in business

Without Epson’s Edge Blending technology, projection walls are just prehistoric.

Introducing the new Pro Z Series from Epson, with built-in Edge Blending technology, a generous brightness offering up to 10,000 lumens*, and up to WUXGA resolution*. The new Pro Z also supports HD-SDI connectivity*, split-screen functionality, and comes in a black case option, to further blend in with darker venues.

To learn more, go to www.epson.com/ProZ or call 1-888-475-8050.

Inland Audio Visual and Sharp Electronics of Canada have developed a great relationship that spans over 35 years. We have worked together as technology evolved from cassette recorders, CRT’s to today’s interactive Aquos Board.

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Inland AV | 75 years | Page 4

MODERN STYLING • SOLID WOOD • TIMELESS APPEAL

403-259-1000 7300 - 11 Street S.E.

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50 Years in the Making

Credibility, expertise, knowledge and experience

O

n the eastern edge of Calgary in the Shepard Industrial Park, Chamco Industries Ltd. quietly goes about their business. They are one of a handful of companies that has survived – for decades – throughout the economic peaks and valleys synonymous with Alberta’s business climate. And like most successful companies they have learned to adapt, evolve and grow to meet the needs of an ever-changing landscape.

Chamco is a service, equipment and modular engineered system supplier of compressed air and pump products. They provide superior expertise in the design, engineering and fabrication of packaged systems across a broad range of sectors that include mining, oil and gas, manufacturing, energy, forestry and the oilsands.

Their philosophy is simple and speaks to their success: to provide the highest quality products through standards of excellence in workmanship and service. They hire the best people available and they are committed to delivering exceptional value.

The year 2012 marks their 50th anniversary and for the 130 people who call Chamco home, their history translates to one common goal: it’s five decades of garnering expertise to better service their customers’ needs.

When the company was founded in 1962, they were based out of Vancouver and sold pumps to the mining business. During the 1980s, the mining industry was struggling and in a strategic move to diversify, Chamco opened offices in Alberta to service the oil and gas sector. They forged relations with additional manufacturers and by 2000, they diversified again to offer engineered products and services.

“In addition to selling other companies’ products

PAGE 1 | CHAMCO INDUSTRIES - ENGINEERED PACKAGES

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we started to do a significant amount of engineering and fabrication ourselves,” explains Malcolm Cox, president and CEO. “We work hard to understand our customers’ requirements, solve their problems and strive to deliver exceptional value.”

Since 2005, Chamco has operated with two divisions: a services business and packaging business.

The services division manages the day-to-day transactions of selling parts, maintenance and repairs, and they have five branch offices throughout Alberta and B.C.

Interactive Approach Chamco provides “lunch and learn” short technical education sessions that are a useful guide for those involved in designing and selecting engineered systems.

Step inside Chamco’s engineered systems – built right in front of your eyes – at their Calgary manufacturing facility. Minimum of eight people per tour.

The packaging division provides the engineering, design and fabrication work for large-scale projects such as fire pump packages and pump barges used in mining and oilsands operations.

When you look at the people behind the Chamco name, it’s not surprising to find that many of them have been with the company for a long time. “We have an interesting mix of people within the company: many have been with us from the early years and since we’ve grown quite a bit, we have had the privilege of adding new people to our team,” says Cox.

SERVICE | 50 YEARS

IN THE

MAKING

Services Division Chamco services and distributes topof-the-line, high-quality air compressors, centrifugal and diaphragm pumps to the western Canadian industrial, energy, commercial, manufacturing and utility markets. They are the exclusive distributor for the Sullair, Peerless and Domnick Hunter brands. They also distribute Cornell, Grundfos and Versa Matic products.

Their highly-knowledgeable team of service technicians can service and repair all types of air compressors and pumps 24 hours a day, seven days a week.

Packaging Division Chamco provides complete engineering systems offering comprehensive design, fabrication, installation and commissioning capabilities. Their modular packages are assembled, tested and shipped as complete as possible while meeting all jurisdictional regulations and transportation restrictions. Backed by a responsive and mobile service division, Chamco is the right partner to manufacture any engineered modular system.

“We have a good balance of people with product knowledge, history and experience while the newer employees bring fresh ideas and experiences. By blending the newer and older cultures, it benefits the entire company and our customers,” he adds.

“We believe our people are the key to our success.

We encourage our employees to use their talents to foster success with each other, our business partners and customers.”

The employee loyalty speaks to how Chamco runs their business. “The longevity of our operation is unique because the employee loyalty flows through every layer of the organization,” adds Juanita Allan, vice president, operations. “Several of our key production lead hands have been with us for many

Malcolm Cox and Juanita Allan

years and that’s significant given the current labour environment – people cross the street for an extra buck all the time.”

Approximately half of the 130 employees are located out of Chamco’s head office in Calgary, while the other half are found throughout Western Canada at their branch offices in Airdrie, Edmonton, Grande Prairie, Prince George and Surrey, B.C. “Our culture is somewhat unique and we try to see ourselves as being technically stronger than other companies at what we do, so we are always pursuing innovative methods and solutions to provide alternatives that no one else can offer,” explains Cox. “I’ve sat in a number of meetings where we’ve gone through technical presentations and you can sense when things start to turn in our favour. The customer wants to deal with people who have the best knowledge and experience to solve their problems. They can be somewhat skeptical at first,” asserts Cox. “At some point, the customer turns to the Chamco team and acknowledges our expertise because it doesn’t exist anywhere else.”

Looking forward, Cox believes Chamco’s future is limited only by the company’s imagination. “Chamco has the ability to grow significantly; to develop new products, expand our expertise and services, but it needs to be done on the same basis that we’ve grown our success to date,” he remarks.

“We need to continually figure out solutions that are helpful to our customers and do it better than anyone else. If we can do that, then the company will continue to grow and be successful. As we create more opportunities, we will need more people.

As we move through the growth, more ideas emerge and the company continues to evolve. We are a wellfunded company, we have a strong balance sheet and we are limited only by our imaginations,” he adds with a smile.

HEAD OFFICE:

Chamco Industries Ltd. 8900 Venture Avenue SE • Calgary, AB www.chamco.com 403.777.1200

CHAMCO INDUSTRIES - ENGINEERED PACKAGES

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SERVICE | 50 YEARS

IN THE

MAKING | PAGE 2

NOVEMBER 2012

The happiness advantage: Using positivity to improve workplace performance Speaking at the Calgary Chamber gala former Harvard lecturer and bestselling author Shawn Achor shared insights on how to reach your full potential

M

Shawn Achor, Author of The Happiness Advantage

ost people think if you work harder, you’ll get more done at work and be more successful at your job. That, in turn, will lead to a better paying job and a happier life.

But that train of thought is not only wrong – it prevents people from achieving their full potential.

Speaking at the Chamber Gala on September 14, former Harvard lecturer Shawn Achor dispelled some of the myths associated with achieving career success and happiness.

This is a topic that Achor knows all too well. Achor has spent years studying Fortune 500 companies to undercover the linkages between a positive mindset and business performance. These ideas are the subject of his bestselling book The Happiness Advantage, which he has lectured on to companies and schools in 45 countries worldwide. They are also the focus of his popular TED Talks. So far, 2.8 million people and counting have tuned in to watch Achor’s talk and hear his insights.

“People think if they work harder, they will be more successful,” Achor told the 320 people who attended the Chamber gala. “But that formula is scientifically backwards.”

According to Achor, the problem with that approach is that people are always working towards meeting goals that they’ve set for themselves such as increasing profits or hitting certain sale benchmarks. However, once those benchmarks are met the only way forward is to set higher goals. This creates a never-ending cycle where people are constantly stressed because they’re stuck in a holding pattern where they’re chasing a constantly moving target.

“When you look at things the same way for too long you become stuck,” Achor said.

According to Achor, the trick to improving workplace performance comes down to stepping away from this patwww.businessincalgary.com | BUSINESS IN CALGARY November 2012 • 93

2012 Board of

Directors Executive Dave Sprague – Chair

Glenn McNamara – Immediate Past Chair Leah Lawrence – 2nd Vice Chair Joe Lougheed – Vice Chair (Chair Elect) Rob Hawley – Vice Chair, Finance Adam Legge – President & CEO Directors Kelly Blackshaw Don Chynoweth Melodie Creegan William Flaig Doug Firby Arlene Flock Eva Friesen Guy Huntingford Rob Lennard Denis Painchaud Dilan Perera Linda Shea Chuck Szmurlo Paul Waddell Management Adam Legge, President & CEO Ben Brunnen, Chief Economist Craig Watt, Director of Programing & Connectivity & Chief Strategy Officer

Happy people are three times more creative, 31 per cent more productive and 39 per cent more likely to live to the age of 94. tern. From his research, Achor has determined that career success isn’t determined by how hard you work so much as your level of optimism, having a strong social network and more importantly your ability to view stress as a positive force that can help you achieve your goals.

“Seventy-five per cent of job success is determined not by a person’s intelligence, but by their ability to maintain an optimistic outlook and manage stress in a positive way,” Achor said. “Some people view stress as a challenge that helps them reach their highest potential.”

The steps you can take to make these changes aren’t groundbreaking or difficult.

Achor suggests simple things such as meditating for two minutes each day or adding 15 minutes of exercise to your daily routine.

This he notes is the equivalent of taking an antidepressant every day.

Achor also suggests activating other people around you to create a positive environment that will help to make you more productive. To do this, he recommends starting every day by committing a conscious act of kindness. This can be done by spending two minutes to write and send a positive email in your social circle telling them that you appreciate them.

Michael Andriescu, Director of Finance & Administration

Kim Koss, Vice President, Business Development

The Calgary Chamber 100 6th Avenue S.W, Calgary, Alberta T2P 0P5 Phone: (403) 750-0400 Fax: (403) 266-3413 calgarychamber.com

Achor believes our brains are wirelessly connected. That means if you are happy and express that happiness, the people around you, including staff and co-workers, are more likely to be happy. So activating others around you in a positive way is a simple way to make both your work and personal life a whole lot easier.

Doing simple stuff like this can yield big results. In fact, from his research, Achor has discovered that happy people are three times more creative, 31 per cent more productive and 39 per cent more likely to live to the age of 94.

But this research also suggests that being happy largely comes down to perception. Only 10 per cent of happiness is determined by outside variables such as what car we drive or where we live and work. The other 90 per cent of happiness is how we process the world around us.

So, controlling the lens through which we view the world can play a big part in our happiness.

Is stress a bad thing that’s destroying your life or can it be used as a tool that – in proper proportions – can help you to be more successful? It’s up to you to decide.

Aboriginal-Business Connections II

Jackie McAtee, Director of Marketing & Communications.

Leading Business magazine is a co-publication of the Calgary Chamber and Business in Calgary

So, what exactly will this do?

The second installment of the Chamber’s popular Aboriginal-Business Connections series will begin this fall with more insights on how industry can build prosperous partnerships with Aboriginal communities

A

boriginal communities present unique economic and business opportunities through their significant potential for economic growth, ready workforce and market demand for the Alberta and Canadian economy. There is more than $315 billion in major resource development

94 • November 2012 BUSINESS IN CALGARY | www.businessincalgary.com

projects identified on or near Aboriginal communities in Canada. Consequently, partnering with Aboriginal communities in Alberta is not only to be expected – it’s a smart business decision.

While some businesses have successfully developed Aboriginal community and busi-

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The Aboriginal-Business Connection series was one of the most successful series undertaken by the Chamber, engaging more than 1200 event attendees. ness partnerships, many are unable to accomplish this task.

Lack of experience and knowledge in partnering with Aboriginal communities often prevents many businesses from moving forward. Legislative, regulatory and governance barriers are also a challenge. By engaging a variety of stakeholder groups in understanding the issues, applying best practices and facilitating policy change, economic prosperity for both businesses and Aboriginal communities will be enhanced.

To provide businesses with the tools needed to work with Aboriginal communities, the Chamber started the Aboriginal-Business Connection series (ABC), which ran from October 2011 to June 2012. ABC was one of the most successful series undertaken by the Chamber, engaging more than 1200 event attendees and seven corporate sponsors.

The series concluded with a final report and toolkit that were distributed to more than 500 stakeholders in the business, government and Aboriginal communities.

To continue building on the success of ABC, the Chamber is undertaking a sequel to the series: Aboriginal-Business Connections II. This second series will add more depth and robust discussions on this subject strengthening the content through more targeted workshops and topics that appeal directly to stakeholder engagement practitioners and experts in the field. In both content and format, the intent is to push the boundaries, have open discussion, influence policy and build Aboriginal-business connections in a way that helps the business community to strengthen their ability to work with Aboriginal communities.

For more information, visit CalgaryChamber.com.

Upcoming Events From celebrating the city’s movers and shakers to providing businesses with the knowledge to grow their business, the Chamber has an event for every need

November 20, 2012 Dean Prevost, president, Allstream Join us as the head of Allstream, Canada’s only telecommunications provider that exclusively serves business customers, shares insights on how networking innovation can

help your business stand apart by delivering on the promise of superior customer service.

For more information, or to register, call our events department at 403.750.0400 or visit CalgaryChamber.com.

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96 • November 2012 BUSINESS IN CALGARY | www.businessincalgary.com

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HOLIDAY EVENTS DONE TO PERFECTION

By Gord Hawker

Executive Chef Eric Larcom incorporates foodie trends for unique results.

N

ovember marks the kick-off to holiday event season at the Calgary TELUS Convention Centre (CTCC), and Executive Chef Eric Larcom and his team are ready to impress. Chef Larcom joined the Calgary Marriott Hotel (the CTCC’s exclusive food service partner) earlier this year and has been earning a reputation for his fresh approach to banquet services.

Chef Larcom says the preferred format for most large holiday functions at the CTCC is a stand-up reception that allows guests to move about the room. And wherever they roam, Larcom and the CTCC food service team will have amazing taste experiences waiting for them to enjoy.

For this season’s receptions, Larcom says guests should expect the unexpected. “Instead of typical carving stations and the like,” Larcom explains, “we’re drawing on a lot of the current foodie trends.”

In some cases, guests will receive a welcoming box as they arrive. Inside the box will be an assortment of tasty treats like flavoured kelp chips and assorted flavoured dips.

“Just something to get them started,” Larcom adds, “and an interesting way to present it.”

Some of the food trends that CTCC guests can expect to experience include Peruvian-influenced dishes such as arepas (round corn pockets stuffed with vegetable, meat or cheese fi llings) and ceviche (citrus-cured seafood dishes seasoned to perfection). Another trend that is sure to be a conversation starter is the use of large-scale sushi stations – complete with moving conveyors from which guests can select from an array of sushi items prepared by authentic sushi chefs.

“Food truck fare and New York-style street food are also very popular right now and something we’re incorporating,” says Larcom. “It’s all recognizable comfort food, but we try to add a twist to make it unique. That’s what people come to an event or holiday party for – to indulge a little, to socialize, move around and try things they wouldn’t necessarily try

in their everyday lives. Everyone’s had a tenderloin dinner – it’s delicious, but they want something new and memorable.

We want our guests to remember the entire experience – the service, the interaction with the chefs on the floor, the socializing, the entertainment, the décor, and the food. It all has to come together to make a unique experience.”

Since coming to Calgary from the J.W. Marriott Grande Lakes Resort in Orlando, Florida, Chef Larcom’s passion for pushing the envelope has infused the CTCC and Marriott Calgary menus with international influences and an emphasis on using fresh, local ingredients wherever possible.

“The holiday season is an exciting time for us,” he declares.

“The biggest challenge is getting as creative as possible while staying within budget. But you know what? I’m surrounded by great people who’ve been here for years. They know the season and they’re eager to do it differently. So it’s a collaborative effort. Everyone is engaged and committed to producing an unforgettable result.”

Executive Chef Eric Larcom and his staff are injecting creativity and new flavour trends into 2012 holiday events.

The Unbeaten PhD Path

BY MEGHAN CHEVRETTE-MCIVOR AND ANDREA MENDIZABAL

F

or University of Calgary graduate Dr. Chris Nicholls, it was the journey off the beaten path that brought him to a career he enjoys today as a Technology Analyst at Innovate Calgary. Innovate Calgary is a fullservice organization offering technology transfer and business incubator services to researchers, entrepreneurs and businesses within the advanced technology sector.

For Nicholls, the anticipated reward for his extensive education was either a career in research or academia.

“I explored both options,” says Nicholls. “Before starting my thesis, I was offered a position at a local biotechnology company. I had the rare opportunity of working on the bench as a research scientist, without having to leave Calgary.”

But Nicholls’ aspirations towards academia remained.

“It was a great and worthwhile experience, but I was still interested in exploring a career in academia, so I went back to the university and took a postdoc position working in cancer biology,” says Nicholls.

Nicholls then focused his attention on a small business he started with two partners. “My interest in entrepreneurship really came from that and it eventually brought me to Innovate Calgary,” says Nicholls.

Through his experiences, Nicholls has recognized that the transition from university to the job market is not always a clear path and he now works with students to help them explore options beyond their post-secondary careers through Innovate Calgary’s Bridge to Business Volunteer Program.

Introduced in summer 2012, the Bridge to Business Volunteer Program is a volunteer internship for graduate students in science, engineering and medicine. It allows those who have an interest in technology transfer to gain valuable hands-on business experience.

“Innovate Calgary is great at making data-driven decisions for new technologies. This program allows interns to learn what data goes into business decision-making and gives them training that they would not get in a university setting,” says Dr. Jim Wilson, a Technology Analyst at Innovate Calgary who also leads the Bridge to Business program.

The program can provide candidates with business skills to complement their academic training when entering the job market.

“In return, our team gets the support and up-to-date technical expertise of some of the best graduate students,” says Wilson.

Bridge to Business volunteer interns are mentored by a member of Innovate Calgary’s licensing team. Interns work for a half day a week for three months, assisting the team with

98 • November 2012 BUSINESS IN CALGARY | www.businessincalgary.com

Innovate Calgary’s Chris Nicholls assists Bridge to Business volunteer intern Lauren Killip.

Introduced in summer 2012, the Bridge to Business Volunteer Program is a volunteer internship for graduate students in science, engineering and medicine. various aspects of the commercialization process including technology evaluation, analysis of competing patents and market data analysis. Volunteer interns get to experience different aspects of project development while having the opportunity to work with exciting new technologies.

“I think technology transfer work is a great option for people with a research background who aren’t going into academia,” says Nicholls. “It still keeps you close to academia, but also gives you the business, legal and entrepreneurial side of science.”

Nicholls is mentoring University of Calgary PhD candidate and Bridge to Business volunteer intern Lauren Killip, helping her explore options beyond research and academia.

“You can’t come out with a PhD and expect you’re going to get a job,” says Killip. “You need something else, and the Bridge to Business Volunteer Program with Innovate Calgary is as hands-on as you can get. I hope this will set me apart from the other graduates when I enter the job market.”

For more information about Innovate Calgary’s Bridge to Business Volunteer Program contact Jim Wilson at jwilson@innovatecalgary.com.

The Visitor Economy

BY STEWART MCDONOUGH

P

eople have been travelling for thousands of years. And what was once called migration, conquest or exploration when the world was growing into itself is now called tourism. While moving around and visiting new places has been common throughout the ages, measuring its contribution to the economy is young in comparison.

Canada has been a pioneer and leader along with Austria, France and Spain in measuring the economic impact of tourism. At the 1991 International Conference on Travel and Tourism Statistics, which would become known as the “Ottawa Conference,” Statistics Canada presented a discussion paper that would lead to the establishment of a “credible and comparable means for assessing tourism economic activities in relation to other industries in a domestic economy.”

This new, broader and more balanced look at the tourism industry enabled the Canadian Tourism Commission (CTC) and other national organizations to measure the size of the visitor economy. Based on an understanding of and ability to measure tourism’s contribution in key industries, the CTC was able to commission a study on the vibrancy and competitiveness of the Canadian tourism industry.

According to the CTC study conducted by the Conference Board of Canada, “The performance of Canada’s tourism sector compares favourably with other broad sectors of the economy … the tourism sector provides the fourth best overall balance of strong and consistent performance over a broad range of both economic and financial performance measures.”

Tourism Satellite Accounts

The comprehensive understanding of what comprises the Canadian visitor economy and the strength of the sector suggest the tourism industry is worthy of further public and private sector investment as well as government attention and collaboration.

The visitor economy is composed of a variety of Tourism Satellite Accounts as defined by Statistics Canada and the CTC. The Conference Board of Canada defines the tourism sector as the group of individual industries (or Satellite Accounts) that provide services and commodities to visitors and would be significantly affected if tourism activity was removed from the Canadian economy.

In descending order of proportion, the industries that contribute to Canada’s $78-billion visitor economy include transportation, retail goods, food and beverage services, accommodations, recreation and entertainment, travel services, and pre-trip commodities/ convention fees. For every $100 spent by visitors a total of $28 fills federal, provincial and municipal tax coffers.

Of note, after air travel, shopping is the single largest contributor to the visitor economy followed by hotel and restaurant expenditures.

The visitor economy represents an infusion of export dollars into an economy, meaning that the $1.3 billion Calgary enjoys in visitor spending each year are dollars spent by people from outside the city. Further, the visitor economy measurements in Canada only measure direct contribution and not the spillover benefits for other sectors including but not limited to spending and investment in technology, consultants, fuel, banking, building and printing.

Understanding the visitor economy provides the tourism industry with the ability to quantify its impact and demonstrate its value at a national, provincial and local level. And understanding the scope of where visitors spend their money serves to show the value of tourism investment to those included in the various Tourism Satellite Accounts.

www.businessincalgary.com | BUSINESS IN CALGARY November 2012 • 99

Events at home and abroad demonstrate the need for successful placemaking

A

s Calgary Economic Development has recently completed a number of labour attraction missions and events, we have seen that whether it’s at home (as evidenced at our sold-out Soul of the City kickoff event) or globally (at the World Heavy Oil Congress), the key to Calgary’s success as a city goes far beyond the availability of jobs. Indeed, in economic development and urban planning circles it is becoming more commonplace to attribute economic prosperity with a community’s appeal and the quality of life found there.

In 2010, the Knight Foundation teamed up with Gallup to survey 43,000 people in 26 U.S. communities about what attracts people to a place and keeps them there as part of the Soul of the Community survey.

The study found that the most important factors that create bonds between people and their community were not jobs and the economy, but rather, “physical beauty, opportunities for socializing and a city’s openness to all people.” The study also found that the cities with the highest levels of attachment also had the highest rates of GDP growth and the strongest economies.

The terms “revolving door” or “bank machine” have been used to describe the relationship between Calgary’s unique energy-based economy and the labour force. Anecdotally many have felt that people come to Calgary to make money with the intentions of cashing out and heading back to where they came from. This presents the opportunity to focus on highlighting the aspects that give Calgary its soul in order to increase the levels of attachment for the people who are currently residing here. As Calgary transitions from a big ‘small’ city to a small ‘big’ city, it is now competing against the likes of Toronto, London and San Francisco instead of Saskatoon, Winnipeg and Halifax. This means it needs more than jobs to be successful in the future, particularly at attracting talented young graduates who have options. With the real possibility of a skilled labour shortage, now is the time to portray a more sophisticated image of Calgary.

At the World Heavy Oil Congress in Aberdeen, Scotland in September, Calgary Economic Development had many great conversations with people making their short list of places to consider for work. What resonates with the younger demographic particularly is that they want to pick the place first, job second. They know Calgary has jobs and a strong economy but wonder what the housing and condo market is like. How far are the mountains? What kind of social assistance programs does Calgary have to make it a great city for everyone? What is the music scene like? What are the tax 100 • November 2012 BUSINESS IN CALGARY | www.businessincalgary.com

rates? All critical dialogue around what makes up Calgary’s “soul” and differentiates us from our global competitors – because it is a global war for talent.

As part of our ongoing community economic development efforts, Calgary Economic Development launched the Soul of the City speaker series. The sold-out kickoff event welcomed Dr. Katherine Loflin, who is an expert in the science of placemaking and was the lead researcher on the 2010 Knight Foundation Soul of the Community survey. Dr. Loflin brought her knowledge and experience in place-making to the historic Simmons Building in the East Village, where she shared research results, tips and case studies of how place-making can improve a city’s sense of community while attracting new residents based on more than the availability of work.

The Soul of the City speaker series will continue into 2013 and will include talks on sustainability, design and city planning, public art and architecture, local food, creativity, openness and diversity, good business, and culture.

Calgary has a story to tell, about the people, energy and experiences that make it unique and create its soul. Calgary Economic Development is honoured to have the opportunity to tell Calgary’s story across the country and around the world, and we’re proud to be part of the energy.

Calgary has a story to tell, about the people, energy and experiences that make it unique and create its soul. Calgary Economic Development is honoured to have the opportunity to tell Calgary’s story across the country and around the world, and we’re proud to be part of the energy.

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We are committed to bringing a world of energy and ideas together.

Meet with energy! calgary-convention.com T 403.261.8500 | sales@calgary-convention.com

David Parker • MarketingMatters

MarketingMatters

By David Parker

T

he Calgary office of Karo Group has hired Kilpatrick “KP” Anderson as its new vice president creative director.

Mark Szabo, vice president/managing director, says Anderson is an internationally-recognized creative director who has worked for some of the leading agencies in the world. His work on brands like Nike, Fox Sports, Coca-Cola, Ikea, PlayStation, Black and Decker, and Yahoo has resulted in many awards including Cannes Gold Lions for Nike and Fox Sports.

Anderson has studied and worked in New York, Portland, San Francisco, London, Hong Kong, Singapore and Stockholm. It’s great to see people of his calibre being drawn to this dynamic city.

Karo has also been successful in arranging a partnership with BrandAlliance, one of the best-known leading-brand valuation firms, headquartered in London. And Szabo has been invited to speak at the International Petroleum Conference in Dongying, China, where he will give participants counsel on how to effectively communicate their brands when entering the North American market.

•••••••••••••• Having a coffee with Lorie Pulliam, I had to wonder after learning of her degree in kinesiology, a master’s in sports science with research in the area of neuroscience, and 30 years as one of the best sports mental coaches in the province why she is on the staff of an advertising agency.

Pulliam was asked by SAW Com-

munications president Spencer Fonger to counsel his staff on how they could best rise to their potential in helping clients use their marketing dollars wisely and creatively.

Her success and quick understanding of the industry has led to her staying on in the position of director of business development – and she and SAW are doing just fine.

Celebrating its 10th year in business, SAW is led by Fonger, and vice presidents Geoff Summach and Dave Imbach with a team who has built long-term relationships with a fine roster of clients. They have produced impressive materials for the likes of Devon, Suncor Energy, Calgary Stampede, Calgary Herald, Alberta Health Services, CANA, PricewaterhouseCoopers, BW Technologies, and helped CV Technologies launch Cold-FX. Besides its 17th Avenue SW Calgary head office, it has another in Edmonton and last year opened in Wailuku, Maui. This year’s big event was the hiring of Steve Pearson – illustrator and designer of some great Theatre Calgary posters – as SAW’s new creative director.

•••••••••••••• Woodruff Sweitzer has expanded its services to clients with the hiring of Juliane Farinazzo as events manager.

Jeff Groenweld, president of the Calgary advertising agency, says, “Offering in-house event management is a specialty few agencies offer, but we believe a key component in keeping our clients at the forefront of their industries.”

Farinazzo has lots of experience in event strategy, logistics and project management, armed with an MBA from FAAP University in Sao Paulo, Brazil, and a BA in tourism. She has worked as training event coordinator for SMART Technologies responsible

102 • November 2012 BUSINESS IN CALGARY | www.businessincalgary.com

for North America Central Region, Caribbean and Latin America, event manager for Avanti Consulting in Sao Paulo, and as a customer service representative in Walt Disney World in Orlando, Florida.

Woodruff Sweitzer has offices in Calgary, Kansas City and Columbia, Missouri.

•••••••••••••• Staff at Mosaic Studios had to suffer through an amount of sawing and hammering in their red brick home above 10th Avenue SW while redesigning the space into a more open area in order to welcome Indigo Ice. The two companies have merged and Indigo Ice founder and partner Mike Brown is now digital director at Mosaic and partner Margo McKee is Mosaic’s new creative director.

•••••••••••••• I hope a lot of people stand and stare at the hard-hitting billboards and study the newspaper advertisement campaign that ZGM Collaborative Marketing launched on behalf of the Calgary Drop-In Centre.

It was created by art director Leah Zukowski and copywriter Luke Devlin to help people better understand just who homeless people are and how they end up at the centre.

The last line of text says, “We hear hundreds of reasons why people end up on the street, and ‘I chose to’ has never been one of them.”

Parker’s Pick: A very bright and shiny promotional piece by Flagworks Group – the people shots by Kristian Bogner Photography are excellent.

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