Business Chief | Canada - May 2018

May 2018 • CANADA EDITION

The Japanese sportswear brand on its Canada ambitions

A GOLDEN AGE FOR TECHNOLOGY HOW BLOCKCHAIN IS POWERING THE E THIC AL S O U R C I N G O F G O L D AT O N E O F C A N A D A’ S B I G GE S T M ININ G CO M PA NIE S

TOP 10 Largest Buildings in Canada

VA NC O U V E R C IT Y FO C U S

The source of value

Procurement executives across the globe continue to see the potential they can unlock throughout the supply chain. They understand that business today is about engaging, collaborating, adapting instantly to evolving needs, and finding new sources of value. Getting that value, however, can prove a challenge.

FOREWORD WELCOME TO THE latest Canada edition of Business Chief!

This month we feature an interview with international health and wellness footwear brand ASICS, which is opening its first ever Canadian flagship store in Toronto.

Our global technology transformation section looks at electric vehicles – is the correct infrastructure in place to provide for the masses of energy they will consume at any given time? Skeleton Technologies CEO Taavi Madiberk discusses what needs to be done to prepare for a new era of transport.

We also found out about the US skills gap from Jack Coker at Ducatus Partners, and looked into whether it is a global phenomenon. How might it be resolved? Moving on to sustainability, branding expert Allen Adamson advises us how to maintain a strong brand identity while diversifying a company’s product range.

Our City Focus article for May zones in on Vancouver, as we examine its burgeoning eSports scene. We’ve also brought you a breakdown of the top 10 commercial buildings the country has to offer. Did your favourite skyscraper make the cut?

Don’t forget to check out our company features for the latest exciting news from Yamana Gold and BLT Construction.

We hope you enjoy the latest issue of Business Chief as much as we have enjoyed putting it together, and as always welcome any feedback or opinions on Twitter @Business_Chief

Enjoy the issue! canada.businesschief.com www.bizclikmedia.com

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Wider electric vehicle adoption requires global energy solutions

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IS THE US SKILLS SHORTAGE PART OF A GLOBAL EPIDEMIC?

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YAMANAGOLD

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DIGITISATION of ETHICAL

GOLD SOURCING

Through the advent of the G-Coin, backed by a blockchain supported Responsible Gold solution, Yamana Gold is transforming the sourcing of gold Written by Dale Benton Produced by Glen White

YA M A N A G O L D

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he world of mining is changing. Historically known as an industry lagging behind when it comes to the implementation and deployment of technology, over the course of the last five years the mining conversation has turned towards innovation.

One of the biggest conversations in mining, throughout history, surrounds the sourcing and supply of raw material, and now a number of companies are investing into technology solutions in order to track, trace and ethically manage its mineral supply chain.

One such company that looks for innovative solutions to mining challenges is Canadian gold producer Yamana Gold. The company’s vision states its intentions clearly – to mine precious metals profitably and responsibly.

It is this focus on responsible mining that has driven the company to partner with Emergent Technology Holdings to implement an innovative blockchain solution for the responsible sourcing of gold, making it the first in the industry to

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partner with the American firm.

“We are not the only ones working on supply chain solutions in the gold sector, but in our view, this solution, in particular, is unique; it adds significant value to both us, as industry participants, and more so to people in communities where we mine and buyers, consumers and investors of precious metals. On the one hand, it leverages blockchain technology to execute supply chain contracts between miners, refiners, logistics providers and buyers in what has historically been a very manual and inefficient process with data recorded across disparate systems and several industry participants. This solution is certainly an improvement. And, perhaps more importantly, it leverages this technology to track and trace the provenance of gold from mine to vault, providing virtually absolute assurance that the gold produced through this supply chain solution is responsible gold, complying with the strictest due diligence standards including the World Gold Counsel’s Conflict-Free Gold Standard. There’s a market for that. We are starting to see pent

MINING

up demand for responsibly-sourced gold from jewellers, electronics manufacturers and even fund managers who have long been driving and promoting socially conscious and responsible agendas. With Emergent, and other supply-chain participants, we have developed an ecosystem to essentially guarantee that production flowing through it is 100% responsible

gold. Now, we and Emergent, hope to populate this ecosystem with as many supply chain participants as possible” says Tony Cina, Senior Vice President, Business Administration, Yamana Gold. “This is an industrywide solution. It is not exclusive to Yamana. If a participant contributes to responsibly-produced gold, then we encourage their participation.”

“Through this ecosystem, we will continue to

mine gold ethically and responsibly with the benefit of more efficiently ensuring that all of our gold is conflict-free” – Tony Cina, Senior Vice President, Business Administration, CPA, CA, ICD.D

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“Tracing gold from the mine site right into a vault, and then ultimately to a currency that you can spend across the world or to transfer money. That, for me, solves a real problem” – Tony Cina, Senior Vice President, Business Administration

“So ideally that means every miner, every refiner, every logistics partner and everyone in the entire precious metals supply chain joins the ecosystem; and Emergent is talking to all the major market players aiming to secure their participation. It is in everyone’s best interest to have one ecosystem that buyers, consumers and investors can depend and rely on. This is a unique opportunity for the gold sector to band together to further contribute to the improvement of social and humanitarian conditions in remote areas” Yamana Gold will utilise Emergent’s Responsible Gold Platform, the

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only permissioned blockchain that tracks responsibly sourced gold from its origin through to the end buyer.

Along with supply chain partners, Yamana Gold will use a secure mobile network that scans smart chips in tamper-proof seals to record transfers of custody and other data on the Responsible Gold blockchain.

“We had a unique interest in the supply chain element of gold production,” Cina says. “We saw the potential to employ an innovative solution to an industry challenge and we recognized the benefit in developing that solution through collaboration.”

MINING

Yamana Gold first worked with Emergent Technology back in 2016, and this partnership is part of a larger strategy whereby the company has sought out new ways of implementing technology and innovation to refine its operations.

As technology continues to shape the world of tomorrow, Joe AbiDaoud, Vice President, IT at Yamana Gold, understands that the very nature in which a mining company must operate is changing.

“It’s no secret that every company in the world is becoming a technology company,” he says. “We work in a very cyclical industry that will forever

go through ups and downs, and what we’ve begun to see in recent years is companies understanding that in order to stay competitive, they need to start doing things differently.”

And doing things differently is exactly what Yamana Gold has been doing as it undergoes a significant technology transformation.

But, as AbiDaoud notes, innovation and technology not only change the practical, physical element of mining, such as the automation of equipment, but innovation is almost driving the strategic thinking and direction of organisations.

“The industry as a whole has

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been undergoing a significant transformation for quite some time,” says AbiDaoud, “albeit at its own pace and perhaps a little slower than others.

This comes down to the cyclical nature. Gold prices plummeted in 2013, and it forced everyone to rethink our operating model.

“Technology is one component of that, it’s not the only component but over time it has become more and more integral to the way in which Yamana Gold achieves success and will continue to deliver value.”

AbiDaoud entered Yamana Gold in 2017 with a core mission to drive innovation and seek out opportunities to leverage technologies to provide value and to support the overall vision of the company, which is to mine precious metals profitably and responsibly.

For AbiDaoud, three core pillars define innovation: people, process, and technology. When organisations think of innovation, they often focus largely on the technology aspect, while AbiDaoud believes the people and the processes are more important.

“For some they seem to fail to

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recognise the important impact and role that people and process have to play in helping your organisation innovate,” he says.

“Technology can’t move forward if the people and processes don’t move forward with it, so it becomes fundamentally about changing the way we work and the way we operate. Technology in the end is just a tool to do that.”

The people element to innovation should not be understated, especially in an industry that has largely operated in the same manner for decades. Technological innovation breeds a cultural change, but as any transformation has shown, cultural change is no walk in the park.

Part of that challenge is communication. Yamana Gold approaches this a little differently.

“We actually don’t have a technology conversation,” says AbiDaoud. “When you’re speaking about innovation, or doing things differently, we don’t even talk about technology. It’s about talking about business outcomes in a language that’s understandable and relevant

MINING

to the end user’s business. That’s how you get a much more engaged partner at the end of the day.”

As VP of IT, AbiDaoud has lived and breathed technology throughout his entire career and so it may be easier for him to say that due to his extensive experience. But it is a feeling shared

by Cina, as he sees Yamana Gold’s approach to technology centred much

more around efficiency and effectivity, rather than seeking out problems.

“We work with our operations and exploration teams to better understand what challenges they face and together consider whether there are operational or other technologies that could be deployed to resolve those challenges. Our approach is targeted. We do not introduce

“The industry as a whole has been undergoing a significant transformation for quite some time, albeit at its own pace and perhaps a little slower than others” – Joe AbiDaoud, Vice President, IT

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RESPONSIBLE GOLD BLOCKCHAIN SUPPLY CHAIN TECHNOLOGY BY EMERGENT TECHNOLOGY

solutions and then look for problems for which to solve. The solutions are very specific. They either solve a problem or create an opportunity” says Cina. “That’s why we try not to have discussions focused entirely on technology. It’s about how we can become more efficient; how can we produce more ounces both profitably and ethically. It’s about working with our strategic partners and seeking out areas of opportunity, to which we then work collaboratively to find a solution.”

The partnership with Emergent Technology and the implementation

of the company’s Responsible Gold blockchain platform is but one shining example of Yamana Gold’s approach to technology, but it is not the only one.

Yamana Gold has invested in Emergent’s “G-Coin”, a digital token backed by physical gold sourced from the Responsible Gold supply chain platform.

“The conversation started a few years ago from a group consisting of technology experts, fintechs legal experts and gold market participants to look at the possibility of digitising gold,” says Cina.

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“We were invited as the only gold supply-chain representative.”

“While initially we were not clear on where the discussion would lead, we quickly caught on to the concept of a digital gold currency that was backed, and had its value supported by, conflict-free gold.”

This was a novel concept a couple of years ago. Today it’s a lot more real. And tomorrow even more so.

G-Coin, first and foremost, is not a cryptocurrency, it is digital gold. It provides a digital certificate of ownership to physical gold stored in a secure vault, opening access to responsible gold as an investment, wealth transfer vehicle and payment mechanism.

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As AbiDaoud admits, it’s not an answer to a business problem, it’s an opportunity to open up efficiency and profitability, all the while remaining committed to responsible, ethical gold sourcing.

Cina adds: “It is not the only digital token of gold in the world, but what makes it different is that it is more than just a digital store of value. It

MINING

can actually be used as a medium of exchange to settle transactions or transfer value. That’s where it’s unique. I don’t know of anyone else that’s using responsible gold to back a viable digital currency.

“Tracing gold from the mine site right into a vault, and then ultimately to a currency that you can spend or transfer to individuals and businesses

across global markets - that, for us is innovative.” Cina went on to say that “since the beginning of time, gold has been a store of value. With blockchain technology, gold can now be digitized; you can own it in your digital wallet and no longer have to hold physical gold. But what does the digitization of gold really solve if all you have done is alter the form in which wealth is stored?” Cina argues, “not much. But when you introduce the ability to spend and transfer gold as if it were cash, instantly,

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MINING

with zero transaction fees and in the smallest of denominations - that is a real solution. That’s innovative” Cina believes that the case for G-Coin is especially feasible in emerging markets, where currencies are more sensitive to inflation and currency devaluation and in some cases subject to currency controls. “The introduction of a gold-backed digital currency becomes extremely appealing to individuals and businesses in those markets”. Users will now have the ability to convert their local currency into the G-coin and protect their wealth and purchasing power.

Through the Responsible Gold platform, and the advent of G-Coin, the mining landscape is well and truly on the cusp of great change. The demand for conflictfree gold has already begun to surge over recent years, with more and more participants looking to change the way in which they purchase and acquire gold.

But what does the future truly hold for the ethical sourcing of gold?

Cina feels that, in actual

fact, we could see a whole new gold asset class.

“In 5-10 years, or perhaps less, as demand for responsible gold continues to increase, responsiblegold emanating from this ecosystem may become a new and distinct asset class, demanding a premium to gold otherwise produced. This bodes well for the sector, its participants and for the people in areas where we mine precious metals.” This is why we got involved: good for gold and good for society – profitably and responsibly.”

Yamana Gold started this journey of digital transformation in 2016, but with technological innovation there is never truly an end to that journey. The official launch of G-coin is targeted for the third quarter of 2018, with the back-end technology already in place, but where does Yamana Gold go from here?

“With everything in place with regards to that launch date, the goal for Emergent is to introduce and integrate G-Coin into payment walls and wallets in those emerging markets,” says Cina. “Emergent expects to process approximately $2

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“There is great opportunity for us as an industry to become much more collaborative and unified in our approach to innovation” – Joe AbiDaoud, Vice President, IT

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MINING

billion in transactions and payments in these markets over the next year and are looking to have G-Coin become a widespread alternative to traditional payment methods, ultimately pushing gold to become the most liquid asset in the world.”

For AbiDaoud, the future is one of possibility and collaboration.

“There is great opportunity for us as an industry to become much more collaborative and unified in our approach to innovation,” says AbiDaoud. “What I’d like to see is an ecosystem that all industry participants are a part of, with real benefits to everyone. That would be a tremendous accomplishment for the mining industry.”

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L E A D E R S H I P & S T R AT E G Y

ASICS IN CANADA

An interview with country president Richard Sullivan FOR A COMPANY FOUNDED IN POST-WW2 JAPAN, ASICS IS FOCUSED ON THE FUTURE. WITH THE RIBBON ON THE BRAND’S FIRST CANADIAN FLAGSHIP BRANCH FRESHLY CUT, RICHARD SULLIVAN, PRESIDENT OF ASICS CANADA, TELLS BUSINESS CHIEF WHAT’S IN STORE Writ ten by SAM ROWE 31

L E A D E R S H I P & S T R AT E G Y RICHARD SULLIVAN REALISES what he’s about to say sounds counter-intuitive, but he is confident the logic behind it is sound. “The first part of our modernisation, and one of the platforms that we use to tell our story to the consumer, will be bricks-and-mortar retail.” The President of ASICS Canada – who, prior to joining at the footwear giant, spent the better part of two decades overseeing brands at the Adidas Group – is holding forth about the company’s new retail branch in Toronto, a sprawling 4,400 sq ft space on Queen Street West. If it all sounds a little ‘back to the future’, it really isn’t. This is a prime example of omnichannel retail, and ASICS’ maiden flagship store in Canada.

“I’ve been with the company for about 16 months now,” says Sullivan, “and we’ve gone through a bit of a transition – physical as well as mindset – within the company. Our commercial business was located in Sherbrooke, Quebec, based on the longstanding and successful history of the distributorship that we had there, and a corporate decision was made to transition that office to Toronto.

“We also grew by roughly 7% in 2017. We’re very happy and positive on both the prospects of our brand in Canada and, back to the modernisation, we really feel that it’s a new mindset – renewed focus and new investment in the brand in Canada – to share our message with consumers.”

Humble beginnings ASICS (an acronym of the Latin phrase ‘anima sana in corpore sono’: a sound mind in a sound body) was founded in 1949, by Kihachiro Onitsuka. This tale of humble 32

May 2018

“We’re a Japanese based company, we’ve got a long heritage since 1949 and we’re held in really high regard in Japan” RICHARD SULLIVAN President, ASICS Canada

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“Whether it’s running or tennis, training or apparel, our performance-based products truly are engineered to help that athlete” RICHARD SULLIVAN President, ASICS Canada 34

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beginnings is well-known – Onitsuka manufacturing basketball shoes out of his living room in Kobe, Japan – yet there are lesser-known details that make it even more inspiring.

“He didn’t do it for commercial or financial gain,” Sullivan assures me.

“He did it literally to put the Japanese youth back to work after the war.”

Fast-forward to present day, and ASICS is a publicly-traded multinational, boasting $3.66bn in 36

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sales, upwards of 7,800 employees, and offices across six continents.

For Richard Sullivan, his professional mandate is Canada-centric, although no less broad. “I oversee the entire operation,” he explains, “whether it’s sales, merchandising, marketing, direct to consumer, finance distribution.” There is also the small matter of 75 ASICS Canada employees, divided across the company’s main headquarters,

distribution centre and five retail stores.

As a leader, he abides by three key tenets: to be honest, forward thinking and inspirational. Sullivan says: “I think that if you can put those three leadership characteristics in a pot, and mix them up, it leads to a really good culture for your company and you’ll have some long-term happy employees.” It seems to work. Although he naturally cannot shoulder full credit, Sullivan states there are “some 30-year employees, some 40-year employees, some 27-year employees,” at ASICS. “I think that’s a good testament that this is a great place to work.”

Global rebrand Circling back to ASICS’ continuing quest to modernise, Sullivan notes its recent global rebrand: I Move Me. Comprising digital videos and influencer partnerships, as well as in-store and offline activations, I Move Me launched in North America in Q4 2017, in partnership with Grammynominated DJ and noted fitness fanatic, Steve Aoki.

I Move Me will continue to roll out this year, with a Canada-specific campaign focused around the brand’s freshly-signed ambassador, Olympic gold medal-winning swimmer Penny Oleksiak. Having captured the nation’s hearts at Rio 2016, aged just 16, the Toronto native was hot property – a fact not lost on Sullivan. “It was a big deal. She had opportunities to go to larger brands, if you will, but she felt at home with us,” he explains.

And yet, given that ASICS’ cap and trade ambassador had always previously been track and field-based, one might argue Oleksiak’s signing represented something of a risk. Of course, a quick consultation with a sporting calendar will reveal the masterstroke, as we head towards 37

“Globally, consumers are choosing to purchase on e-commerce, whether it’s Amazon or own-retail sites or Alibaba” RICHARD SULLIVAN President, ASICS Canada

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L E A D E R S H I P & S T R AT E G Y the 2020 Olympics in (where else) Tokyo. ASICS will be a gold sponsor for the Games. “We’re a Japanese based company, we’ve got a long heritage since 1949 and we’re held in really high regard in Japan. It’s on our home turf,” says Sullivan. “I think it’s a very proud moment for the company, and all of the employees globally.”

Playing catch-up Still looking forward, Sullivan is keenly aware of developing consumer trends.

“Globally, consumers are choosing to purchase on e-commerce, whether it’s Amazon or own-retail sites or Alibaba,” says Sullivan. He concedes ASICS is “playing catch-up” in terms of e-commerce, but notes it will bridge the gap quickly. “We are very, very bullish on what that can provide in the years to come. But I think overall, just the fact that e-commerce is a greater option for consumers today will probably be the largest trend that we see happening.”

The story of ASICS is a unique cocktail of old and new: past, present and indeed future. Are there any examples in which ASICS is outpacing its rivals, or driving industry modernisation? Sullivan laughs – “I can’t tell you all our secrets,” before

adding: “I think the true answer to that is that all of our products are grounded in performance and innovation. We’ve got an institute for sports science, just outside of our head office in Kobe, that works feverishly daily to come up with new technologies to bring to market, and to have some type of an advantage for the athletes that use our products.

“I think that would probably be our advantage in the marketplace – whether it’s running or tennis, training or apparel, our performance-based products truly are engineered to help that athlete.” Kihachiro Onitsuka – the living room shoemaker, who simply wanted to provide jobs for warsurviving teens – would be proud.

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TECHNOLOGY

Wider electric vehicle adoption requires global energy solutions WITH COUNTRIES THE WORLD OVER INCREASINGLY TURNING TO ELECTRIC VEHICLES, TAAVI MADIBERK, CEO AND CO-FOUNDER OF SKELETON TECHNOLOGIES, INVESTIGATES HOW WE CAN ENSURE THIS ADOPTION IS SUSTAINABLE Written by TAAVI MADIBERK

TECHNOLOGY

T

HE AUTOMOTIVE SECTOR is evolving at an unprecedented rate. According to the International Energy Agency (IEA), an estimated 50mn electric vehicles will be in operation by 2025, and 300mn by 2040.

With BMW, Volvo, and Jaguar Land Rover promising electrified versions of their current models, most of the major car manufacturers have now announced significant investment, re-affirming this shift.

Furthermore, with Dyson announcing that it is starting to manufacture electric cars and the European Commission forming a consortium that will drive the development of battery technology, there is no doubt that we are moving towards a world with electric vehicles at its centre.

While we are certainly on the road to wider adoption, there is still one main drawback that could thwart public interest: charging infrastructure. Fundamentally, in order to support the innovation and commercialisation of electric

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vehicles, the right energy technology and infrastructure must be in place.

This is critical to ensure the experience matches the hype.

THE RISE OF THE ELECTRIC HYPE Fuelled by the rise in air pollution and political momentum to reduce global warming, electric vehicles have grown in popularity and the technology has improved at a record pace to become a benchmark for innovation in the automotive sector.

Competition in the marketplace is also increasing. From the first Prius hybrid model launched by Toyota in 1997, to the more recent full electric

‘THE CASE FOR MORE ENERGY EFFICIENT VEHICLES IS GAINING MOMENTUM’

The Range Rover Sport plug-in hybrid electric SUV signals an electified future

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TECHNOLOGY vehicle launches of the Tesla Model S, BMW i3 and Nissan Leaf, car manufacturers are investing in hybrid and electric vehicles and demand from consumers is gradually growing.

Couple this with increasing environmental and sustainability regulations and the case for more energy efficient vehicles is gaining momentum. The adoption of this technology, however, is hampered by a need to optimise infrastructure to ensure it can support the surge in charging capabilities. Crucially, if the infrastructure cannot cope with peak power points, the adoption of electrical vehicles will reach a standstill.

GLOBAL ADOPTION REQUIRES A UNIVERSAL SOLUTION We already see Britain, France, Norway and China committing to ban diesel and petrol cars in favour of cleaner vehicles. This shift was most recently followed by one of the leaders in the automotive industry: Germany.

At this point, it is becoming critical to adopt technology that allows us to smooth over the energy consumption needs that advanced countries are yet to experience. We need to take 46

May 2018

Click to watch Skeleton Technologies – Global Tech Leader in Ultracapacitor Energy Storage

‘IF THE INFRASTRUCTURE CANNOT COPE WITH PEAK POWER POINTS, THE ADOPTION OF ELECTRICAL VEHICLES WILL REACH A STANDSTILL’

a holistic view to managing energy provision, as we will not be able to rely on drivers of electric vehicles to scatter the time when they charge their vehicles to reduce peak demand.

With implementation commitment growing at a rapid pace, there is a pressing need for collaboration that will support solutions for energy technology challenges globally. This can only be done if governments, industry bodies and innovators join forces to support energy storage technologies that complement future developments in the sector. There is a need for a serious discussion on how to implement a stable grid that will be capable of withstanding the increased energy consumption inevitable with electric vehicles. Critical to this will be coping with especially high demand peaks and proving that the grid has the resilience needed for electric vehicles to become a success.

REVOLUTIONISING THE SECTOR It is possible to manage the growing demands on our energy infrastructure and ensure that there is a stable and reliable energy support that will drive the growth of electric vehicles, but 47

TECHNOLOGY it requires a fresh look at our energy storage mix.

By investing in energy storage technologies that complement battery power, such as ultracapacitor technology, we can manage peak power needs. Ultracapacitors are one of the lowest cost solutions to helping with grid stability, and can play an integral role in supporting the national grid and managing power demands.

Wide-scale electric vehicle charging creates serious issues with demand management, which can potentially cause power blackouts. These blackouts are caused mostly by short

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demand peaks, which usually last under a minute. This is precisely where ultracapacitors excel. As part of the grid solution, ultracapacitors can provide a means to ensure there are no blackouts during sudden changes in demand.

On board vehicles, the technology should be evaluated and used in tandem with lithium-ion batteries in order to downsize the pack and increase the battery lifetime. By introducing capacitive technology to the power unit, it is possible to reach longer lifetimes and support the peak power needs of electric vehicles. However,

in order to do so, we must secure a reliable infrastructure to support this trend going forward.

By prioritising investment in infrastructure and encouraging discussion and collaboration between governments, car manufacturers and technology companies, we will be able to create an environment where infrastructure, technology and the consumer act as one. Only then will be able to embrace electric vehicle revolution globally and support a future that is dominated by electrification.

‘WE NEED TO TAKE A HOLISTIC VIEW TO MANAGING ENERGY PROVISION’

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Business process outsourcing and the digital revolution

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IS THE US SKILLS SHORTAGE PART OF A GLOBAL EPIDEMIC?

Jack Coker, Principal, Ducatus Partners, discusses how America can make its infrastructure “great again” as Business Chief finds out whether the current skills gap is a global phenomenon Written by JACK COKER Edited by OLIVIA MINNOCK

PEOPLE

“ Although it will take several generations to rebuild the infrastructure workforce to full capacity, companies can kickstart the process” – Jack Coker, Principal Consultant, Ducatus Partners

THE PEOPLE PROBLEM Modern infrastructure in the US was born from President Franklin D Roosevelt’s New Deal for the American people. Between 1935 and 1943, the Works Progress Administration (WPA) built over 500,000 miles of rural roads, 100,000 bridges and 1000 airfields. The WPA built sewers, tunnels and power lines. Hospitals, schools and fire stations sprang up across the nation.

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However, in recent years this spirit of investment has waned. In every report card since 1998, the American Society of Civil Engineers has awarded a ‘D’ to America’s infrastructure, reflecting chronic underinvestment in the sector.

The society also estimates that, unaddressed, this could damage the economy to the tune of almost $4trn lost in GDP by 2025, slashing the disposable income of each household

across the United States by $3,400 each year. Fortunately, change is in the air and major infrastructure investment is back on the political agenda. The problem? There are not enough skilled people to meet demand. Whilst the WPA was created in part to soak up excess labour in the workforce, modern programs are hampered by the lack of it.

All over the world, the skillsets required

in the labour market are having to adapt to technology transformation. As the US struggles to keep up with this demand, developments are more positive around the world with governments and educational organisations focussing on better preparing the workforce.

Across the Middle East, Europe, Asia Pacific and parts of the Americas, employers are beginning to find it easier to find the right talent, but additionally it has been shown that particularly in Europe, contract, freelance and temporary work are all on the rise. This could point to a workforce adapting to fit their existing skillsets around changing demand.

Globally, economic migration is on the up, with migrant workers increasingly of a more educated caliber. While migration can help to plug skills gaps across the world, as there is a bigger pool of talent to choose from for a country’s particularly profitable industries, in many cases restrictions on migration are set to increase, particularly in the UK and US. In addition, wage growth across the EME market has been slow and as such it can be easier to hire new employees than in other regions, like Asia and the US. 55

PEOPLE

“ There are essential A VICIOUS CYCLE individuals who Coming back to the US, underinmake the difference vestment in infrastructure has been a topic of discussion for decades. between on-time, However, the paucity of large on-budget projects infrastructure projects has led civil engineers and specialist managers and multimillionto depart from the industry. This is dollar overruns; and compounded by fewer people seeking a career in the space, and fewer students there aren’t enough enrolling in courses. A vicious cycle. of them” Several states have recognised the need for infrastructure investments.

– Jack Coker, Principal Consultant, For example, Connecticut and Ducatus Partners Washington are in the early stages of multi-year transportation improvement initiatives. What’s more, some states overruns; and there aren’t enough have resorted to raising extra funds of them. to try and deal with the situation, A number of issues stem from the including raising gas taxes, a key workforce shortage. Lack of source of funding for road construction. experienced workers means companies In California, 20 of the state’s 58 must relocate employees across the counties already have transportation country on a project-by-project basis. sales taxes in place which has led to Relocation can be expensive, especially an exponential increase in infrastructure in states like California. projects. Unfortunately, even as the Another issue is that human resource money is starting to flow, the workforce and leadership teams focus almost has atrophied. In short, there are exclusively on project start-up to the essential individuals who make the detriment of ongoing roles throughout difference between on-time, on-budget the project lifecycle, resulting in projects and multimillion-dollar a backlog of hires which has a direct 56

May 2018

impact on the bottom line. Project and construction managers with five to 15 years of experience are in particular demand, and positions can remain open for months at a time; especially in the aviation, rail, transit and water sectors. This stretches workloads which in turn increases staff attrition.

Another vicious cycle, further compounding the talent crisis. This is a particular problem for US infrastructure, but that’s not to say that other regions aren’t struggling to find staff with the specific skills needed as their economies shift and change.

TAKING ACTION Running into this problem with varying degrees, countries are taking different steps to upgrade the skillsets of their workforce in line with new requirements – but exactly where this responsibility lies is a contentious issue. Udemy recently commissioned a ‘skills gap’ report pertaining to the global work environment. This showed that the majority of workers around the world agree there is a growing skills gap, but largely feel “optimistic about their own skills and the competitiveness of their respective countries”.

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PEOPLE On a worldwide scale, Udemy CEO Kevin Johnson stated: “the nature of jobs is quickly changing with automation, globalisation, government policies and other factors, making it impossible for anyone to predict which skills a job will require in the future. This only serves to widen the perceived skills gap.” In the US, 79% of full-time employees according to Udemy believe there is a skills shortage and 35% “feel personally affected by it”, but 80% of these believe that workforce reskilling will be successful. In terms of reskilling efforts, 41% think the government, through tax benefits or otherwise, should contribute.

Udemy’s report analysed five global markets and found that in France, staff largely don’t feel the need to upskill, with 75% stating that they were confident with their current skill set – however in Brazil, 98% of those surveyed acknowledged the existence of a skills gap in their country. In terms of responsibility, 50% of Mexicans felt that it was up to the individual to upskill, with 17% placing responsibility on the government and 13% on employers. It was also found that some people have taken on a second 58

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job in order to utilise their skills in a more appropriate way, with 39% of Americans describing themselves as having a “side hustle” in comparison with just 18% in both Spain and Germany.

In the US, there are doubtless deepseated issues that will not be solved overnight. However, with mega-projects in construction and infrastructure in the offing such as those tied to the 2028 Olympics, California’s high-speed rail and LAX’s $5mn upgrade program, there is no time to wait. With that in mind, the question is: how can companies

“ Human resource and leadership teams focus almost exclusively on project start-up to the detriment of ongoing roles throughout the project lifecycle, resulting in a backlog of hires which has a direct impact on the bottom line” – Jack Coker, Principal Consultant, Ducatus Partners

best manage and mitigate workforce issues to ensure projects are on schedule and on budget?

PROACTIVE TALENT MAPPING AND EDUCATION By partnering with a specialist executive search provider, companies can build a map of where talent is and where it needs to be. Talent mapping is about proactively building a virtual ‘bench’ of talent, anticipating need, and successfully mitigating unnecessary cost. Mapping allows companies to

proactively engage candidates which significantly reduces time to hire. Upon the award of a large infrastructure project, a high-potential candidate pool is identified, engaged, and ready to be mobilised. In locations that are difficult to recruit to, either due to high costs or low desirability, talent mapping is especially useful.

Although it will take several generations to rebuild the infrastructure workforce to full capacity, companies can kickstart the process. By working in partnership with colleges, companies can start to mould the next generation by putting the right skills in place, imparting knowledge, and developing talent pipelines through internships.

When the time comes for graduates to seek full-time positions, companies may benefit from having built respect and loyalty with interns.

According to World Atlas, one of the countries suffering an even greater skill shortage than the US – indeed the ‘worst’ in the world – is Japan, and education is a leading cause. “Japanese companies are faced with potential employees lacking knowledge of the global markets,” the report argues, putting this down 59

PEOPLE to a “rigid” educational system which does not equip Japanese students for the modern world.

In China, as it strives to overtake the US as an AI superpower, finding the correctly skilled individuals is paramount and has become a common issue for companies according to the Global Skills Index. Therefore, issues in transforming the economy aren’t

isolated to the US alone, but in China they are increasingly in the form of new technology skills and the ability to manage a tech-based enterprise, which often has to come from employees educated in the US or Europe. High costs of hiring mid-to-high management have resulted in MNCs being reluctant to set up core research centres in China, according to China Daily, which adds

“ In locations that are difficult to recruit to, either due to high costs or low desirability, talent mapping is especially useful” – Jack Coker, Principal Consultant, Ducatus Partners

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that China is making more efforts to work with universities, “especially top engineering institutions”.

It is widely agreed in China that the likes of AI and Big Data should be exploited, but employers are now forced to look at the skills and talent pool on a global scale. The government has launched guidelines on focussing talent development in manufacturing, including integrating industry and education, promoting key adaptable abilities and qualities, and “establishing a high-level management skills pool”.

While China leans more toward a planned economy than most, government involvement may be a direction for other economies to consider when dealing with the global skills gap.

Although young talent is slowly entering the industry in the US, experienced talent is quickly flowing out. Senior talent is retiring and leaving an institutional knowledge gap.

Companies have a responsibility to eliminate this from happening.

Developing concrete succession plans to transfer knowledge and skills to the next generation minimises the risks to the retirement process. This applies across the organisation, from the

Jack Coker is a principal consultant at Ducatus Partners, an executive search and leadership consultancy focused in the global energy, infrastructure and process industries.

He has significant search experience in both Europe and the Americas, serving a broad range of clients spanning architecture, engineering and construction across the energy, power and civil infrastructure sectors. Jack holds a Master of Science degree in Environmental and Earth Resources Management from Kingston University, London and a Bachelor’s degree, with honours, in Geography from the University of Portsmouth.

C-Suite, project leadership to the experienced niche engineers.

Will the rediscovered appetite for infrastructure investment be enough for the US? Or is it a case of a day late and a dollar short? Only time will tell, but companies the world over can be sure of one thing: smart workforce planning and talent management is essential to successful project delivery.

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tay true to what you are

Marketing expert Allen Adamson tells us why businesses must be careful not to dilute their brand when introducing new products Written by STUART HODGE

S U S TA I N A B I L I T Y

W

E LIVE IN a changing marketplace. Although all of the traditional staples of customer service are still welcome, they are becoming less important to a new generation that had grown up with the ubiquity of online shopping platforms and a plethora of choices like never before. More and more highstreet retailers are suffering at the hands of the growth of at-home pointand-click shopping, and it seems that the power of a strong brand identity is greater than ever before.

With this in mind, Business Chief spoke to branding expert Allen Adamson, author of various books esteemed at universities globally on the topic, including his latest title ‘Shift Ahead: The Best Companies Stay Relevant in a Fast Changing World’.

He spoke to us about how the power of brands is changing in the modern world, and the challenges of diversifying in a changing landscape.

“In my world a brand is what your story is,” he says. “One of the challenges that many marketers face is ‘what is their story? What do they stand for?’

Once you figure out your story, your 66

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brand, what has become increasingly difficult is ‘how do you get that story out there?’ Like many things, a theory in marketing and branding is pretty easy, but execution is really hard.

What I mean by that is people only recommend extraordinarily good things or talk about extraordinarily bad things. They don’t recommend or talk about things that are just ‘okay’.”

Consumer habits are no doubt changing too. In fact, a recent study

by EFG Companies looking at digital

“ People only recommend extraordinarily good things or talk about extraordinarily bad things. They don’t recommend or talk about things that are just ‘okay’” – Allen Adamson, Co-Founder at Metaforce

purchasing in the car market revealed that half of customers will now check reviews online before even contacting a dealership. Not just that, but the study would also indicate that we are becoming more picky and impatient: 43% of the pool of almost 1,500 respondents said that they were more likely to visit a dealership if it had plenty of information on its website, and 83% expected a response from the dealership within 24 hours of sending an online vehicle inquiry, with 16% 67

S U S TA I N A B I L I T Y

“ If you don’t look good, most consumers are not going to read the product specs to find out what’s inside” – Allen Adamson, Co-Founder at Metaforce

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wanting information immediately or within the hour.

However, the nature of the response people are expecting has changed, with only 9% wanting a phone call from the dealership after they’ve submitted an online request. Not just that, but Adamson believes the way we are interpreting the world around us now is changing the way that consumers are recommending products. He says it’s now more often about how they appear visually than whether they’ve been recommended by one person to another.

“Younger consumers are spending more and more of their time sharing stories, sharing ideas, sharing pictures,” says Adamson, who is also the founder of marketing and branding consultancy Metaforce. “With that in mind, I think ‘word of eye’ is becoming more important than word of mouth. I think the quality or the visual appeal of things is growing in importance because people are visual to begin with, and now that they can share pictures as fast as they can share words and ideas, you have to look good no matter what you’re doing.

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“A couple of years ago I went to the Consumer Electronics Shows in Vegas and no matter which manufacturer I looked at, from 20 companies from China and from India that I’ve never heard of to Apple, Sony and Samsung, everyone’s products looked spectacular. All of a sudden, even the cheapest products looked incredibly stylish. Now, if you don’t look good, most consumers are not going to read the product specs to find out what’s inside. They’ll make a snap decision and if you don’t look good, you can’t fix it.”

Another trap that manufacturers have to avoid falling into is having too myopic a viewpoint. If you are Coca-Cola, don’t just look at Pepsi as your major competitor or you could fall off the pace. With so much choice out there now, every soft drink manufacturer is a competitor.

Blackberry is a prime example of a company which has suffered from being too tunnel-visioned in its approach. The Canadian smartphone provider did help to drive the boom in smartphone pervasion, but staunchly believed that consumers would never 70

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“ You have to make sure that whatever product you go into, the benefit of your brand is still delivered” – A llen Adamson, Co-Founder at Metaforce

move away from using a keyboard.

The entire management team was convinced that the iPhone and touchscreens were a toy that kids would be playing with, but that any serious person typing out messages for business would never give up their keyboard. This undiversified view was why Apple and other competitors were able to steal a march and ratchet up their market share.

It’s a danger for every company, but do these changes in consumer behaviour and the requirement for increased brand awareness mean it’s now harder to diversify your line of products within an overarching brand identity?

Adamson doesn’t believe so, but he does feel companies need to be a little cleverer about how they do it, ensuring that the integrity of what their company

stands for is not compromised. “You have to make sure that whatever product you go into, the benefit of your brand is still delivered in that new category or that new segment and it reinforces what the core idea is,” he asserts.

“I think BMW has been pretty successful switching from sports sedans to SUVs. Yes, their SUVs perform differently than their other models but when they talk about why their SUV is better than other SUVs, it’s still tied to that core idea of ‘the ultimate driving machine’. If you’re in an SUV, ‘the ultimate driving machine’ lets you go through a riverbed and up an incline without tipping the car over, and through mud and muck. If you’re driving a sports sedan, that means you can go around the corner on the highway at 60mph and not feel that you’re going 60mph around the corner.

They have a clear definition of what BMW-ness is.

“Now they’re experimenting with electric cars, the definition of what ultimate driving means has some latitude but no matter what it is, the worst thing you can do to a brand is to line-extend it or diversify into 71

S U S TA I N A B I L I T Y a product that’s unsuccessful and is rejected by the market. Because not only will you miss the opportunity to sell SUVs if you’re BMW, but you’ll do more damage to your core product line.”

An example of a company losing vision of what made its brand truly special, as Adamson illustrates in his latest work, is Sony. “Sony used to stand for magical things when they first were around,” he says. “Their television sets, their screens had matchably better colour than anyone

else’s. When you put on their Walkman 20 years ago, the sound was phenomenal. Then they started to stick the Sony name on products that didn’t give you goosebumps like clock radios, shower radios… not quite toasters, but they put their name on everything and all of a sudden on phones that were not that good.

“I think the key part of success today is being able to deliver your brand benefit in whatever form your customer wants it. The trick is not to go so far

“ If you can’t deliver a great experience at these new diversification points then you’re basically diluting your brand, you’re stretching it too thin” – Allen Adamson, Co-Founder at Metaforce

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where you’re just extending and, like the Sony story, you have nothing special.

When we look at brand extension we look at both fits. Yes, the Sony brand can fit in shower radios but does this have any leverage?

“If you can’t deliver a great experience at these new diversification points then you’re basically diluting your brand, you’re stretching it too thin. You are looking at short-term sales versus longterm success. More and more brands have stretched so far that they don’t

stand for anything because they become diluted. Famous theory is ‘the stronger the focus, the stronger the brand’. If a brand stands for everything and is in every category it’s going to lose its success.

“All of sudden people looked at Sony and said ‘oh, it’s not that special. Their phones aren’t that good. The shower radio is not that great’. They lost their sizzle because they diversified well beyond their ability to deliver a core Sony experience.”

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VANCO CITY FOCUS

OUVER A detailed look at the burgeoning eSports scene in one of Canada’s most economically important cities Writ ten by HARRY MENE AR

CITY FOCUS SITUATED ON THE western coast of Canada, Vancouver is the eighthlargest municipality in the country, with a population of over 2.5mn people.

A bustling sea port in the south of British Columbia, Vancouver is the most Asian city outside of Asia, and actively works to foster continued economic relations with the East.

The city’s economy also maintains its deep ties to industry linked to natural resources. Over 800 mineral exploration companies are headquartered in Vancouver, including two of the world’s largest mining companies: Teck Resources Limited and Goldcorp Inc, according to the Vancouver Economic Commission.

The (VEC) also pledges to pursue its goal of making Vancouver the most environmentally friendly city in the world by 2020, and the city was recently ranked third on a list of the world’s greenest municipalities by the Economist. The city also has a strong economic focus on the entertainment industry, with 26 TV shows being shot on location in Vancouver in October 2017 alone.

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2.5MN THE ESTIMATED POPULATION OF VANCOUVER

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eSPORTS As of summer, 2018, however, Vancouver will cement its place among the world’s primary hubs for another industry: competitive gaming, or ‘eSports’.

The eSports industry is the fastest growing media/sporting market in the world. With the market’s net revenue worth an estimated $130mn in 2012, the sector has since exploded, reaching $650mn last year.

The trend is predicted to continue, with projected eSports earnings 78

May 2018

expected to reach $1.65bn by 2012, according to Statista. This equates to an average of 40% year-on-year growth, the rapidity of which is further fuelling investment in the market.

Over 80% of eSports revenue is generated through advertising sales, both in the form of sponsorship deals with professional teams and events, and through streaming sites like Twitch that broadcast the games.

Currently, some of the largest eSports events and organisations are regularly

‘AS OF SUMMER, 2018, VANCOUVER WILL CEMENT ITS PLACE AMONG THE WORLD’S PRIMARY HUBS FOR ANOTHER INDUSTRY: COMPETITIVE GAMING OR ‘ESPORTS’

sponsored by brands like CocaCola, Comcast, Red Bull, T-Mobile, and Audi, who are paying larger and larger sums to be seen alongside pro gamers competing at League of Legends, Counter Strike, and Dota 2. eSports viewership is steadily rising, along with the popularity of streamers. esportsmarketing.com reported this year that younger gamers worldwide spend an average of three and a half hours per week watching eSports and gaming streams, nearly an hour

more than the same demographic reported spending watching traditional sports. With millennials representing the largest generation since baby boomers, the market for eSports is only predicted to grow further. As of now, the total time spent watching eSports and gaming streams on Twitch.tv totals almost 20,000 years.

Vancouver’s strategy to become a leading beneficiary of this growing industry is seen in its hosting of its biggest event: The Dota 2 International.

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$650MN ESTIMATED NET REVENUE WORTH OF THE eSPORTS INDUSTRY

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WHAT IS DOTA Dota 2 is a five-a-side, multiplayer online battle arena (MOBA) game, where teams of players compete in a contest of intense strategy, speed, and skill. The goal is to destroy the opposing team’s base (known as an Ancient – Dota stands for Defence of the Ancients) while preventing their own from falling. Games typically take between 20 and 40 minutes (although the record for a pro game is three-and-a-half hours), and most pro matchups are typically best-of-threes.

Dota is an incredibly complex game that can take thousands of hours to even be played proficiently.

As such, the level of skill, and depth of understanding exhibited by professional players is a huge draw for fans. Add in a tight-knit community of casters and pundits, and prize pools in excess of $20mn for single events, and Dota 2 is easily the most impressive area of the eSports market.

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INTERNATIONAL Once a year, Seattle-based game developer, Valve (Portal, Portal 2, Half Life 2) hosts the largest Dota 2 tournament of the year, which has also been the world’s largest eSports tournament every year since 2011, in terms of prize pool. TI One was the first eSports tournament with a prize pool in excess of one million dollars. Last year, the total prize pool amounted to a total of over $24mn, the highest of any eSports event in history.

With the exception of the first International, which was held in Cologne, Germany, all subsequent events have been held in Valve’s hometown of Seattle. The gaming 82

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giant announced in March their plans to move the event north, to Seattle’s Canadian neighbour. The International 2018 will be held 20-25 August at the 18,600-capacity Rogers Arena in downtown Vancouver.

Attendees can expect to pay between $125 and $250 for entry.

The British Columbia eSports Association is working closely with Valve in order to ensure the tournament’s success, both as a physical and a broadcasting event.

“The International is and has been since its inception, one of the biggest events in eSports every year,” said association member, Mani Davoudi.

‘THE INTERNATIONAL 2018 WILL BE HELD 20-25 AUGUST AT THE 18,600-CAPACITY ROGERS ARENA IN DOWNTOWN VANCOUVER’

Last year, over 10mn individuals tuned in to watch the broadcast of the grand finals from Seattle’s Key Arena on Twitch. This year, numbers are only predicted to rise, along with the tournament’s prize pool. “That makes it bigger than the Masters Tournament of golf or the Tour de France in terms of the prize packages,” Richard Smith, Director of Digital Media at Simon Fraser University, told CBC news.

Davoudi told Business Vancouver that another large eSports tournament, this time for popular MOBA, League of Legends, was “a big part of The International coming here”. He added that a

successful hosting of the International could finally cement Vancouver’s identity as an eSports hub.

TI is expected to be a generator of revenue and exposure for local tech and media firms. Brenda Bailey, DigiBC Director, revealed her company’s plan to use local studios to host the event, in an effort to highlight Vancouver’s talent pool. “It’s going to be an exciting time in Vancouver to learn about the incredible work being done in this sector.”

If the event is a success, other organisers may well flock to British Columbia, bringing a new source of revenue to the area through a market that is only getting bigger.

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TOP 10

T O P 10

While several cities across Canada have legislation limiting building height, it is still home to some of the tallest buildings in North America. Business Chief takes a look World Atlas’ list and found the 10 tallest commercial buildings in Canada Writ ten by S HANNON LEWIS

T O P 10

BAY ADELAIDE CENTRE WEST

Website: www.brookfieldproperties.com/portfolio/toronto/bay-adelaide-west Established in 2010 in Toronto, Ontario, the Bay Adelaide Centre West is an office complex situated in the city’s financial district. Standing at 214.7m, it was designed by the Webb Zerafa Menkes Housden Partnership (WZMH), with the Michel Partnership brought in as mechanical engineers and Ellis Don working as the general contractor. Skyscraper Center reports that it is the 156th tallest building in North America, the 16th tallest in Canada, and the 12th tallest in Toronto. It has 52 floors above ground and five below. Although initially proposed in 1979, construction didn’t begin until 2006 and was completed in 2010.

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H: 214.7m

09

H: 215.2m

SUNCOR ENERGY CENTRE WEST

Website: www.brookfieldproperties.com/portfolio/calgary/suncor-energy-centre/ Suncor Energy Centre West, previously known as the Petro-Canada Centre, is a 215.2m tall office tower located in downtown Calgary, Alberta.

Opened to the public in 1984, its construction only took two years, having been carried out between 1981 and 1983 by architect firm WZMH. It encompasses over 2mn sq ft, according to the company website, and its West Tower is the second tallest structure in Western Canada. With 53 floors above ground and four below, the building’s 30 elevators get good use. Skyscraper Center reports that it is the 153rd tallest building in North America, the 15th tallest in Canada, and the third tallest in Calgary.

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TORONTO-DOMINION CENTRE

Website: www.tdcentre.com/en/Pages/default.aspx The Toronto-Dominion Centre is lauded as a Toronto landmark. Designed by Mies van der Rohe in 1967, it is series of buildings in downtown Toronto that define the city’s skyline, measuring 222.8m tall, according to Now Toronto.

It is the 129th tallest building in North America, the 14th tallest in Canada, and the 11th tallest in Toronto, according to Skyscraper Centre. As the global headquarters of the Toronto-Dominion Bank, as well as housing office and retail space for other business it has 21,000 people in total working in the complex, according to Architectuul, which makes it the largest complex in all of Canada. With 56 floors above ground and four below ground, the tower has a gross floor area of 1.33mn sq ft, according to Skyscraper Centre.

08

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H: 222.8m

07

H: 226.5m

1250 RENÉ-LÉVESQUE

Website: http://officespacemontreal.net/listings/1250-rene-levesque-west Opened to the public in 1992, 1250 René-Lévesque looms over Montreal, Quebec at an impressive 226.5m, according to World Atlas. Alternatively named La Tour IMB-Marathon, it is a commercial office space located in downtown Montreal. Construction began in 1988 with Kohn Pedersen Fox Associates as the lead architects and LeMessurier Consultants as the structural engineers, according to Emporis, making it a four-year building project. Standing at 47 storeys, Skyscraper Center reports that it is the 115th tallest building in North America, the 12th tallest in Canada, and the tallest building in Montreal.

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THE BOW

Website: www.fosterandpartners.com/projects/the-bow Often called the most beautiful building in Calgary, The Bow was the tallest building in Canada outside of Toronto at the time of its inauguration. Established in 2012, it stands at 237.5m, according to World Atlas. Proposed by gas and oil producer Encana in 2006, construction began in 2007 and finished in 2012 when the building was opened. The Bow is the headquarters for Encana Corporation, as well as Cenovus Energy, and only the first phase of a project designed to regenerate two whole city blocks in downtown Calgary, according to Foster and Partners. With 58 storeys, it ranks as the 79th tallest in North America, ninth tallest in Canada, and second in Calgary, having recently lost its number one slot in 2017 when construction on Brookfield Place Tower One was completed, according to Skyscraper Center.

06

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H: 237.5m

05

H: 239m

COMMERCE COURT WEST

Website: www.commerce-court.com Commerce Court West is the tallest building in Commerce Court, a complex made up of four office buildings located in Toronto’s financial district. Though Commerce Court West was built in 1973, the history of the whole complex dates back to 1931, according to the Commerce Court website. Standing at 239m, Commerce Court West has 57 floors above ground and three below, according to Skyscraper Centre. Skyscraper Centre reports that it is the 491st tallest building in the world, the 76th tallest in North America, eighth tallest in Canada, and seventh tallest in Toronto. While North Tower was originally designed by Firm and Darling, the other three buildings, including Commerce Court West, were designed by I.M. Pei and won the Pritzker Architecture Prize in 1983.

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T O P 10

TD CANADA TRUST TOWER

Website: www.brookfieldplacenewsandevents.com While a majority of Canada’s tallest buildings are in Toronto, this is no mean feat economically speaking. Toronto, reports the Telegraph, is the 20th most expensive city to purchase property in, at $5,492 per sqm. Regardless, the TD Canada Trust Tower, situated alongside the Bay Wellington Tower, makes up Brookfield Place, which is an office complex located in downtown Toronto. Built in 1990, TD Canada Trust Tower stands at 260.9m, according to World Atlas. Taking up 1.14mn sq ft of Brookfield Place’s 2.6mn sq ft, it connects to the Bay Wellington Tower via the Allen Lambert Galleria.

04

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H: 260.9m

03

H: 275m

SCOTIA PLAZA

Website: Standing at 275m, Scotia Plaza is the third tallest commercial building in Canada, according to World Atlas. It was completed in Toronto in 1988 for Campeau Corporation and the Bank of Nova Scotia, according to WZMH. Standing at 68 storeys, with 2mn sq ft across 1.5 acres of downtown Toronto, it employs 7,500 people, according to the building website. It consists of the 68 storeys above ground as well as six floors below, according to Skyscraper Centre, has had 44 elevators at its disposal. Although originally owned by Scotiabank, Scotia Plaza was sold in 2012 for $1.27bn. Skyscraper Center reports that it is the 204th tallest building in the world and the 34th tallest in North America.

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02

H: 276.9m THE ADELAIDE HOTEL TORONTO

Website: www.adelaidehoteltoronto.com At a height of 276.9m, the Adelaide Hotel Toronto is the second tallest building in Canada, according to World Atlas. Built in 2012, its 57 storeys and 802,000 sq ft provide 109 condominiums and 260 luxury hotel rooms. It has five floors underground and its construction, between October 2007 and December 2011, cost a total of $2.75bn. According to Emporis, the building was designed by architect firm Zeidler Partnership Architects. Currently, the building is managed by Marriott International, although it was originally Trump International Hotel and Tower Toronto.

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01

H: 355m

FIRST CANADIAN PLACE

Website: https://myfirstcanadianplace.ca/building-info Standing almost 100m taller than the nation’s second-tallest building, First Canadian Place is an impressive height of 355m, according to World Atlas. First built into Toronto’s financial district in 1975, the building’s 72 storeys provide a comprehensive mix of shopping facilities. World Atlas reports that the building’s total floor area is 2.7mn sq ft and, though unrivaled in building height, it is only the third tallest structure in Canada – both the CN Tower and the Inco Superstack Chimney beat it out, height-wise. When it was built, though, it was the 6th tallest building in the world, according to World Atlas. Currently, its global height rank falls significantly lower as the 130th tallest globally, according to Skyscraper Center. However, it does rank as the 20th tallest building in all of North America.

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RISING ABOVE THE PACK in Canada’s competitive CONSTRUCTION INDUSTRY

BLT Construction is making huge strides in a fiercely competitive market as construction leaders in the hospitality Construction, working with high profile clients across Canada like Chef Susur Lee, Canucks Sports & Entertainment and Hilton Hotels Written by Leila Hawkins Produced by Tom Venturo

B LT C O N S T R U C T I O N

M

ore than 20 years of building highly detailed spaces for “Triple A” clients, BLT’s success is based in a fundamental core value; delivering the finest level of customer service with passion. This is Mark Watts’, the Owner of BLT, cornerstone to success in building the company from working out of a single van with one employee into the nationwide company that directly employs over 100 staff members today.

Mark, having grown up in the restaurant industry, understood that one’s “moment of truth” with a client is immediate, determined by the quality of every dish of every single meal served. Translate this approach into any business, and in BLT’s case into construction, and the company is bound to set up for success. Mark notes that “in our industry, many contractors do not properly understand that it’s not good enough to just gain a new contract; you have to want to build the next 10 projects with the same client. Customer retention is critical, and it can only be achieved through

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CONSTRUCTION

Mark Watts President

As founder of BLT Construction, Mark is proud to celebrate 21 years of work in the construction industry. Mark has been the guiding hand behind many of Toronto’s most significant hotels, restaurants and entertainment spaces across Canada. Under his leadership BLT opened its second office 5 years ago in western Canada developing a solid business model based largely on repeat client business which speaks volumes to his business philosophy of customer first client service. His project list includes the successful completion of projects such as Real Sports Bar and ACC West Arena Revitalization with MLSE and 2014-2016 Rogers Arena Capital Revitalization for the Canucks Sports and Entertainment, just to name a few.

w w w. c a n a d a . b u s i n e s s c h i e f . c o m

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B LT C O N S T R U C T I O N

Dave Barrow

Executive Vice President As Executive Vice President of BLT for the past 20 years, Dave has overseen the construction and staffing for all BLT construction sites. Dave has proudly delivered challenging schedules for hundreds of restaurants, office buildings, hotels, and Sprung Structures across Ontario and the Caribbean. Dave has been instrumental in the rapid growth of the Sprung Structures division of BLT who are the Eastern Canada construction partner. Thus far Dave has overseen well over 75 Sprung related projects in the past 15 years. Key clients that continue to reach out to Dave include, Firkin Pub, Trump Hotel and Department of National Defence.

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excellence in customer service.”

Scrolling through the extensive list of BLT’s projects, it becomes apparent that many of the company’s first clients like Maple Leaf Sports and Entertainment and The Pickle Barrel have been key factors in the company’s growth since BLT’s earlier days. Through clients like these, BLT worked with some talented consultants, creating professional relationships that blossomed into long lasting partnerships with then young, interior design firms like Mackay Wong and IIbyIV Design.

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“A BUSINESS IS SIMPLY A SUM OF ITS PARTS, AND A GREAT TEAM EQUALS SUCCESS FOR THE CLIENT, THE COMPANY, AND EVERYONE ELSE INVOLVED” – Mark Watts, Owner and President

From this point forward, BLT could proudly say that they earned credibility as a quality driven general contractor within the industry.

Fast forward almost two decades since the company’s creation, and BLT not only has the thriving Toronto office but is now firmly planted in the west coast, with an office in Vancouver.

The passion and energy that drives Toronto’s success continues to permeate to the west coast. BLT had to quickly study the environment, determining tangible differences in the two markets while aligning with

regional resources that allowed the team to build some incredible projects in Whistler, Vancouver, Nanaimo, New Westminster, Kelowna, Penticton and now extending further in to Victoria.

At the heart of it all, the customer service first based corporate philosophy is not possible without likeminded people. The company’s goal is to successfully recruit, strategically mentor, and retain staff. Many of the team members have been with the company for the last 10-20 years and the longevity in careers with a single employer can only be possible if

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“IN OUR INDUSTRY, MANY CONTRACTORS DO NOT PROPERLY UNDERSTAND THAT IT’S NOT GOOD ENOUGH TO JUST GAIN A NEW CONTRACT; YOU HAVE TO WANT TO BUILD THE NEXT 10 PROJECTS WITH THE SAME CLIENT” – Mark Watts, Owner and President

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visions to attain success are aligned.

BLT is evolving to find new ways to attract talented staff in an active industry, where labour shortages in the Toronto and Vancouver markets seem to be common. By quickly adapting to the changing needs and motivational factors of younger generations looking for employment, BLT is aiming to provide an environment where the importance of an employee’s skills development and career path are fostered. “A business is simply a sum of its parts,” Watts adds, “and a great team equals success for the client, the company, and everyone else involved.”

Luckily, the economy has generally been strong for the construction industry for the last while, allowing for healthy competition which Mark ultimately understands to be a positive aspect. However, in past economic dips over the last two decades, BLT has weathered through the challenges. Mark states that “if you are true to your customers and are always a value proposition, you just need to dance harder and grow market share in a down turn,” which he and the company has done.

Paul Waddell

Vice-President Design Build Paul has been a key player in developing over $2.5B worth of prominent projects in the hospitality and sports and entertainment industry over the past 30 years. He has planned, designed, managed and constructed over 200 projects ranging in value from $500,000 to $120,000,000 across North America. Client lists include Hilton Garden Inn, SOHO Metropolitan Hotel, Adomo Winery. Paul leads our design build initiatives and most recently executed the Central Park Arena and Centennial Aquatic Center in Collingwood under this program.

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CONSTRUCTION

John Jung

Vice President Operations

With over twenty years of experience and exposure to various sectors of management, purchasing and design, John is able to provide unique insights into the construction management process. Applying these skills and experiences to bring close attention to fine details and the efficient, systematic approach to construction are the priority, ensuring the “on time and on budget� mantra BLT shares with their Clients. Some recent projects include Drake 150, Drake Commissary, and Drake Minibar.

Today, BLT is expanding into Atlantic Canada, where it is building a 110room hotel, the Hilton Garden Inn in Fredericton. With this and other sizeable upcoming projects, BLT has broken through the plateau of being a midsize company and is on an exciting path to becoming a large general contractor. In fact, BLT currently has its sight set on developing the company on the east coast and is in the midst of setting up another office in Halifax.

The growth, however, cannot be successfully achieved without increased efficiencies in process and in tandem, technological advancements the team is able to harness. ProCore, a shared, online portal BLT uses for construction management is accessible by all including the consultants and client.

It has been a crucial tool for fluid communication as well as up-todate document control. It brings order and organisation to what could become a whirlwind of uncoordinated information that may lead to potential delays and/or errors. BLT is also forging partnerships with Consultants who provide Revit and 3D modelling

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B LT C O N S T R U C T I O N

Arvin Srivastava Vice President – Development and Project Delivery

Arvin has over 20 year experience from the client’s perspective in various sectors such as retail, office and hospitality executing projects in both the Canadian and International markets. He has held leadership positions within many prominent brands such as FedEx, Bank of Montreal, Yum! Brands, Boston Pizza and most recently for CARA Operations Ltd. where he executed “1909 Taverne Moderne” – a joint venture with the Montreal Canadiens delivering a 25,714 sq. ft. multilevel sports and entertainment venue restaurant. Our clients will be able to leverage his knowledge and relationships he has built throughout his career to provide creative solutions to meet challenging economic models and any other project requirement.

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to create and overlay interference drawings. BLT utilities SketchUp providing in-house renderings for design build proposals; an effective tool for clients to visualise the end product. In essence, if technology contributes to meaningful change, BLT will welcome its use.

Being meaningful is the common thread throughout the company. BLT’s service brings meaningful value to the

clients. The projects are meaningful to BLT because each team member is passionate about what they do building incredible spaces. At the end of day, what is most meaningful for the company is delivering a project that the end user is thoroughly impressed with, which ultimately reinforces that BLT’s clients and the team have successfully accomplished what they all initially set out to do.

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SAP Ariba and the transforming landscape of procurement As the supply chain industry continues to evolve, SAP Ariba plays a key role in defining the future of procurement Written by Dale Benton Produced by Glen White

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he very nature of procurement and the supply chain is changing. Advancements in technology and innovation have significantly shortened the lifecycle of products, forcing suppliers and procurement functions to transform their approaches.

As procurement and supply chain has changed, so too has SAP Ariba. Speaking at SAP Ariba Live in Las Vegas earlier this year, Marcell Vollmer, the company’s Chief Digital Officer, looked to the future of procurement and more importantly, how it will continue to move beyond delivering cost savings and process efficiencies.

“For the last two decades, procurement has been on a journey that has led to dramatic transformation. But the journey is just beginning,” Vollmer said. “Over the next 10 years, companies will face more opportunity and disruption than ever. And procurement will play a critical role in maximizing these opportunities to create business value. In embracing digital technologies and strategies, procurement can reimagine the function and beyond delivering cost savings and process efficiencies, fuel innovation and market advantage.”

Mark Schenecker, VP Supply Chain, Procurement & Networks with SAP Ariba, has seen this transformation happen first hand in large scale organizations, both in culture and in practice.

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SAP Ariba Business With Purpose

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The direct approach to procurement transformation As the pace of digital business accelerates and as customer expectations rise, supply chain transformation has become a priority for many organizations.

Reimagining procurement—especially direct materials activities—offers an opportunity to help your organization gain efficiencies, mitigate risks, serve customers better, and identify new areas for growth.

Proactive value For any business, direct materials can represent a huge slice of the actual costs of doing business. But transforming direct materials in a holistic, strategic manner can prove challenging.

Deloitte’s Direct Materials Value Transformation approach can help by supporting a more proactive, more strategic approach to procurement. By bringing together a host of capabilities in a unified portfolio, Direct Materials Value Transformation provides a single source of leading-edge solutions for addressing needs all along the source-to-pay continuum.

The potential payoff? A tighter, more value-focused supply chain that can support greater supplier collaboration and help you maintain a competitive edge.

Elements of Direct Materials Value Transformation

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Cognitive spend capabilities leveraging machine intelligence and advanced analytics to identify patterns and generate insights

Global Sourcing Insights to help companies analyze, visualize, and act on complex direct materials sourcing issues

Tax tools to help automate processes such as tax determination

Should-cost analysis and parametric cost modeling

Third-party risk management

Supplier enablement

Supply chain optimization

www.deloitte.com/SAPAriba @DeloitteSAP Copyright © 2018 Deloitte Development LLC. All rights reserved. Member of Deloitte Touche Tohmatsu Limited.

Reimagine procurement.

Implementing for success In the ever-changing landscape of the supply chain and procurement space, as a partner to one of the world’s biggest procurement network providers, it has never been more important for Deloitte to go above and beyond what is expected from the relationship. Partner to SAP Ariba for close to 20 years, “Deloitte has well and truly earned the right to be called a “critical partner.”, says Hernan De la Torre, Senior Manager at Deloitte.

“It is a very tight relationship. We are not only going to market together or serve the industry together. Our relationship is also about helping shape and redefine what is occurring in the industry. We work together to help our clients understand what the future of digital procurement will look like.”

SAP Ariba continues to define the direct and indirect procurement space, working with companies and partners all over the world through a complex procurement network system. As it embraces the future of procurement, it calls upon critical partners that can not only navigate complex procurement functions and “implement for success.”

“Our methodologies are well aligned, and I think that together we approach problems and opportunities in a very comprehensive way,” says De la Torre.

For Deloitte, this isn’t just talking the talk.

Earlier this year the company launched its Direct Materials Value Transformation offering, to “provide a wealth of existing

“ Ultimately, it is all about solving our client’s issues with the most affordable, costeffective and fastest to implement solution” Hernan De la Torre Senior Manager at Deloitte and new Deloitte and SAP Ariba capabilities to help companies reimagine their Direct spend.” Deloitte was officially recognized by SAP Ariba, receiving the 2018 SAP Pinnacle Award for SAP Ariba Partner of the Year – Large Enterprises.

De la Torre believes the award is a true testament to the success in the way in which Deloitte has finely tuned its relationship with SAP Ariba that has allowed the company to truly exceed all expectations as to what a partner can and should be.

“Ultimately, it is all about solving our client’s issues with the most affordable, cost-effective and fastest to implement solution. We have done this repeatedly, so many times, that we have fine-tuned it to extreme precision,” he says.

“Obviously there are many things that go into these programs, there’s complexity, but we certainly have mastered program delivery at Deloitte with SAP Ariba and have new approaches and innovations that allow us to reimagine the world of Procurement.”

www.deloitte.com/SAPAriba @DeloitteSAP

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“People are understanding this more and more. It’s about responding quicker, and more cost effectively and how we can create this near real-time instantaneous communication with our suppliers and treat them as an integral part of our supply chain and network” – Mark Schenecker, Vice President, Strategic Customers Business Networks, Supply Chain

With SAP, Schenecker plays a key role in working on the implementation of industry-leading cloud-based applications to some of the world’s largest companies in order to better collaborate with a global network of partners.

Vollmer’s sentiment is echoed by Schenecker, who feels that as the procurement transformation journey will only continue to develop further, now more than ever companies must embrace a far more collaborative approach in order to keep up.

“Typically, in the supply chain space, the conversation will start around demand planning,” says Schenecker. “From that, you make up a supply plan based on your customer requirements and then you

share that with the suppliers. This is often referred to as forecasting.

“Forecasting, though, is very hard to get right because there’s some level of variability that you just can’t control.”

Schenecker points to large companies that tackle this challenge of forecasting demand through collaboration. Rather than spending resources through inventory buffers to mitigate risk in supply, or create more precise forecasting, companies will work collaboratively with their suppliers in order to respond to a change in demand instantaneously.

In the ever-changing pace of product cycles, this is crucial to being able to deliver true value to the supply chain.

“It’s about making your supplier

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These are just some of the real-world successes that Intrigo and SAP have delivered together.

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range of industries such as High-tech, Fashion, Consumer Products, Manufacturing and Chemicals. Leveraging our knowledge and experience of specific implementation scenarios, we translate our insights into outcomes, ensuring that technology ou and processes are optimized to flourish in today's complex and competitive environment.

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Th These include S&OP, ERP, Supply Chain and Analytics for a wide

Intrigo is a co-innovation partner of SAP in a number of areas including SAP IBP in Supply Chain Planning and SAP Ariba Supply Chain Collaboration for Procurement. We are a recipient of the SAP Ariba award for the innovator of the year, and our entire senior leadership team is recognized in the industry

for their thought leadership, expertise and innovative mindset.

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SAP ARIBA

network tick through collaboration,” Schenecker says. “People are understanding this more and more. It’s about responding quicker, and more cost effectively and how we can create this near real-time instantaneous communication with our suppliers and treat them as an integral part of our supply chain and network.”

SAP Ariba works with companies in creating solutions in order to establish and build this “tight knit” collaborative network. Millions of companies all over the world use SAP’s cloudbased network to manage their business relationships and allow their customers to shop, share and save.

This network is what enables that true collaborative approach. It allows buyers and suppliers to collaborate on transactions, manage their entire procurement process from source to settle, all the while controlling costs, finding new sources of savings and building an ethical supply chain.

One of the key advantages in this collaboration is reducing lead times.

A typical plant, when processing an order, could have a month of supply of parts. These parts are either

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stored by a supplier, sometimes via a 3PL, or stored on the factory floor or warehouse. This is often inconsistent and will vary from product to product, part to part.

“If we run this through our tight knit collaboration you are looking at significantly reducing inventory,” says Schenecker. “Taking days or weeks of supply of inventory out of the supply chain will reduce costs. These inventory cost savings are critical to reducing the cost of the finished goods. It’s a real big move on the profit line.”

Supply chain and procurement processes are often complex, taking into account direct spend (the materials that go into the makeup of a product), as well as indirect spend (services such as facilities management) which, when multiplied across numerous manufacturing lines, represents a significant investment.

Schenecker points to the need for change management and how one of the biggest moves in product design is the intimate integration of procurement. Engineers or designers are sometimes in a position where they

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SAP Ariba works with compnaies to establish and build collaborative networks

will purchase parts based primarily on their familiarity with the part or vendor rather than aggressively looking for the lowest cost at the highest quality.

“We are witnessing a change in the integration of procurement with design,” he says. “Whereas before it would be a case of sourcing parts to an individual engineer’s familiarity, or just looking at supply chain optimization, the challenge was that

the supplier relationship was owned by the company or by the procurement team not necessarily engineering.

“Now, it is much more individual and much more owned and dictated by the joint efforts of engineering and procurement.

“The lifecycle of products is much shorter today and so change management revolves primarily

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around speed, which is incredibly difficult to manage. It can be overwhelming, but it’s about training, coaching and understanding how to leverage the entire process in order to better understand the way that you will work with suppliers.”

Through the cultural change and the way in which work is managed, Schenecker notes that the role of the designers, buyers, planners, suppliers, right through the entire supply chain is beginning to converge.

Historically, the different suppliers throughout the supply chain process would operate as entirely separate entities. But in this time of shorter product lifecycles, which will only continue to get shorter in the near future, the whole supply network is moving from a serial to a parallel model.

“What happens now is design, sourcing, ramp to production are all working simultaneously,” Schenecker says. “You, your network, your suppliers, and your buyers and planners are all working in parallel.

“Teams don’t work in a serial fashion anymore, they work in parallel and it

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all overlaps, with each other area.”

This echoes back to the importance that Schenecker places on the planning process, as companies are now looking to reuse parts and streamline the introduction of new parts much more than ever before.

“Today, companies are constantly cannibalizing their products in order to continue to win in the marketplace,” he says. “With the speed at which the market is changing, you have to, otherwise someone else will.”

In the procurement and supply chain space there is a firm understanding that you can only be as good as your supply chain. The SAP Ariba Network, which has millions of customers and suppliers from all over the world, sees beyond the realms of being just a supplier and what it means to really be a partner.

USA

Mark Schenecker Vice President, Strategic Customers Business Networks, Supply Chain

Mark Schenecker works in the Ariba Center of Excellence for strategic customers at SAP Ariba, drawing on over 20 years of experience in SAP Business Suite, supply chain management, business networks, the Internet of Things and SAP Ariba Cloud Solutions. Schenecker transitioned out of the SAP development organisation and now specialises in guiding customers on the Ariba Business Network and supply chain solutions to achieve incremental value with speed and simplicity. Schenecker is a frequent speaker on future technologies and is the author of numerous articles, one book and four patents.

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“Sure, you look for a supplier and ensure that they make the right product, the right parts, to the right timescale and right cost,” he says.

“But now you have to look at what it actually means in terms of the actual cost to do business with that supplier.”

If a supplier has process inefficiencies or does not have the required integration capabilities in this ever-demanding environment of speed, then the buyer has to look at what effect that will have from a cost perspective.

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“Inefficiency for example, will bring inventory buffers into place to cover up a lack of proficiency in communications in the supply chain, which of course means added cost,” says Schenecker.

This approach has changed the way in which buyers evaluate suppliers, with the quality and pricing of parts being equally as important as the ability to perform. Performance and performance measurement of suppliers has become as crucial than the supply itself.

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SAP Ariba has worked with supply chain integration specialists Deloitte and Intrigo

Working with suppliers has become centred much more around supplier management than ever before and through close collaboration, SAP Ariba helps buyers to navigate this changing landscape to truly implement new processes with little disruption.

SAP Ariba has worked with Intrigo and Deloitte, integration specialists with deep supply chain expertise, as Schenecker describes. These two companies understand the SAP Ariba network, the procurement business processes, complex supply chains

and SAP Ariba solutions, and have successfully helped the integration of new process and new ways of working through close collaboration.

Other key partners include Liason, an integration specialist for the buyers that don’t use SAP systems, but through the work of the company can seamlessly integrate to the SAP Ariba Network.

SAP also calls upon the work of EY and Deloitte in order to look closely at integration from the change management level,

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approaching the transformation of supply chain with the view of asking the question ‘how do you implement for success?’

“Our partners have been key to us,” says Schenecker. “And the best thing is, they don’t work on just the one area. Sure, you’ll see Intrigo working on integration of SAP Integrated Business Planning, ERP and Ariba with Deloitte running change management, but all of our partners operate under the wider scope of a larger transformational journey.”

As SAP continues to redefine its supply chain network in order to continue to provide true value to its supply chain and procurement partners, the question then becomes one of how to keep up the pace with the rapidly changing procurement landscape.

After all, today’s best practice will not always be tomorrow’s.

“Customers, and not just ours but our competitors, drive us to higher levels of innovation,” says Schenecker.

“But we intend to lead, not to follow. Sure, we look to broader market to see what’s happening, but in terms of procurement and supply chain, SAP Ariba is setting the tenor, the direction and the trend for the current market.

And we will continue to do just that.”

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“We intend to lead, not to follow” – Mark Schenecker, Vice President, Strategic Customers Business Networks, Supply Chain

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