Consult magazine - Fall 2013 issue by Canadian Association of Management Consultants

c Ted Netten FCMC & George Currie FCMC

CMC-Canada celebrates fifty years

The legacy of passion

The magazine for members of CMC-Canada

consult Fall 2013

Focus

Despite headline grabbing cases and high profile events, the task of â&#x20AC;&#x2DC;Securing Canadaâ&#x20AC;&#x2122; is a work in progress that requires a 24/7 effort.

Securing Canada Mike Appleton FCMC Managing Director, DAMA Consulting Services Walking along the Rideau Canal National Defence Headquarters and Parliament Hill in Ottawa.

Inside

The role of consultants in integrating CSR 08 Public-private partnerships16 Doing business internationally20 Departments:

02 editor’s note; 03 at cmc-canada; 04 it’s a wonderful life; 06 industry insights; 14 coast to coast; 22 passion in the profession; 31 top of mind; 32 how’s your asset?

EDITORâ&#x20AC;&#x2122;S NOTE

It is always financially prudent to stay on top of new trends in corporate ideology. This edition of Consult centres on newer concepts such as sustainability and the economics of policing that are changing the way we think about economics and impacting our future. Business leaders, as well as trade consultants, often focus their energy on the design, development, and management of long-term projects that their companies undertake in order to remain competitive. Shareholders of these companies exert pressure on management to ensure these projects raise profitability, especially in the short term. However, our lead piece by Marilyn Friedmann suggests that these very pressures are the reason companies lag behind in sustainability concerns, which in the long-term negatively affects profitability for everyone. Sustainability is just one example of a trend that will change how businesses operate. Even though losses might be suffered in the short-term, over time these trends are an

investment, much like CSR, that will provide lasting returns. The idea that companies need to start looking past immediate profits in exchange for long-term sustainability is not completely new, but environmental pressures on business from government and public organizations are very likely to rise throughout the next few years. Consultants and investors who understand the coming business climate that views sustainability issues as a lengthy investment (of the cost of doing business) are likely to have an edge on their competitors. The other articles in this edition tackle more traditional issues of cost effectiveness, entrepreneurship, and innovation, and how you can apply those concepts to your own opportunities. However, these issues are viewed through the lens of changing economic times, too. Trends in economic policy and increased public awareness call for greater transparency, more focus on cost-effectiveness, and an increased effort for adaptability to change.

This edition provides first person accounts of how business executives and entrepreneurs are adapting to changing economic winds, everywhere from development in the third world to domestic projects in the financing of physical infrastructure. We hope these ideas will help you gain insight into the changing business climate as you invest, advise, and develop new ideas for your clients. Enjoy!

HAROLD SCHROEDER FCMC PRESIDENT, SCHROEDER & SCHROEDER INC.

AT CMCCANADA

As you know, CMC-Canada was formed 50 years ago, and as we’ve met with many of the founding volunteer members during the past year, we’ve been reminded of how much, not only this association but also (more importantly) the profession of management consulting worldwide, owes to these leaders. We believe that you – as a proud CMC – can play an important role in the next 50 years. As society and technology have changed since 1963, we look at ways to keep you up-to-date with current trends and methodologies, and to advance the CMC designation. We listened to what you had to say in our Member Survey and...

VISIT

cmc-canada.ca REGULARLY TO SEE WHAT’S NEW

New Strategic Plan: 2013-16 Engage with current and prospective members, with consumers of consulting services, and with the wider business and professional community to demonstrate through PD programming, thought leadership and related communications, and other activities and events that individuals holding the CMC designation possess superior leadership, analytical, problem-solving, and solution development skills that they apply with independent judgement in a variety of organisational roles and environments to influence decision outcomes. Promote the CMC brand and designation to prospective members, to consumers of consulting services, and to the wider business, professional, and academic communities as representing superior business, professional, and leadership capabilities that will be valued in almost all organizational settings. Strengthen and Sustain the CMC-Canada organization as an effective developer and provider of high quality, high performance management consulting-focused professional development programming, activities, networking, and community-building activities that will in turn sustain the profession and be attractive to leaders and management professionals in a wide variety of organizations and roles. Attract to our membership by 2016, (through our activities), more than 2,000 new members, of whom at least half will have embarked on pursuit of the CMC designation by June 30, 2016.

Building Awareness (of the CMC Designation) Campaign To create further demand for hiring CMCs, January will see the launch of our campaign to build awareness of the designation among those we know are responsible for procurement of consulting services – starting with the Chartered Accountants. Our research and marketing teams have been hard at work on this campaign. A copy of the ad has been included with this issue – help promote the designation by sharing it with colleagues and friends. Knowledge Our 2013 Management Consulting Industry Report (released November 28) provides insight into those companies and sectors looking to expand, and to hire, and the challenges that face the profession. Our new wiki will be launched in early 2014 – to equip management consultants with the tools you need, plus the combined experience and knowledge of all members – essential for the future of the profession. Continuing Professional Development The Continuing Professional Development (CPD) Committee is in the process of analyzing recent member survey results, as part of their needs analysis. More than 350 CMC-Canada members responded to the survey – watch your email for information from our CPD Committee, as they focus on providing you with the professional development information you’ve said you need and want – in a format that works for you. We extend our sincere thanks for your continued support, as we continue to provide the products and services to best serve our members. Please contact us (consulting@cmccanada.ca) with any questions or comments.

consult Publisher: Glenn Yonemitsu CMC Editorial Board: Harold Schroeder FCMC, Mike Appleton FCMC, Eric Inthof FCMC, Ron Knowles FCMC, Peter Milley FCMC, Greg Richards FCMC, Tony Wanless CMC Editor in Chief: Harold Schroeder FCMC Managing Editor: Andrea Vandenberg Contributing Writers: Mary Blair, Marilyn Friedmann CMC, John Gelder FCMC, Ashley Lambe, Rob Lowry, Richard Lundeen CMC, Carol Panasiuk CMC, Robert White CMC, Glenn Yonemtisu CMC

Creative and Art Direction, Design: Aegis Design Inc. Cover Photo: Nation Wong Photography

Consult is published simultaneously on the Internet at consult-magazine.ca

Consult Magazine is published semi-annually by the Canadian Association of Management Consultants (CMC-Canada).

Consult welcomes unsolicited manuscripts for publication, comments, letters to the editor, or ideas on themes. Please send all feedback and address changes to Canadian Association of Management Consultants (CMC-Canada), PO Box 20, 2004-401 Bay Street, Toronto, Ontario, Canada, M5H 2Y4 or via email to consult@cmc-canada.ca

Advertising Sales and Inquiries: Sylvia Biggs (416) 860-1515 sbiggs@cmc-canada.ca

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PHOTOGRAPHER: GREG LOCKE

Kathy-Jane (KJ) Elton CMC, excels as a designer, artist, and management consultant.

IT’S A WONDERFUL LIFE

If you’re going to do it, do it right

Some people approach life with clear goals and structure their education, business, and family lives in order to achieve those goals. Others wander through life with no clear purpose... BY MARY BLAIR CAE, MANAGING DIRECTOR, CMC-CANADA And yet others have a clear idea of where they’re going, and possess the ability to change course and ‘do a 180’ if they need to. This is Kathy-Jane (KJ) Elton. KJ was born in Newfoundland, where as a teenager she developed a serious interest in Eastern religions. After earning a gold medal for academic excellence, she moved across the country to complete a Masters Degree in Asian Studies at the University of British Columbia. She lived in Vancouver for three years, enjoying its ethnic diversity and paved, flat roads for cycling; so different from the steep hills and wind of St. John’s. KJ studied Japanese and considered a teaching position in Japan, but then asked herself where this field of study was leading. A Masters Degree in Eastern Philosophy would not have opened many doors. Re-examining her life led KJ to change focus completely, move back to The Rock, and enroll in an MBA program. She’d always been good at math in school, but it was still a welcome surprise to learn she had a distinct talent for problem solving and quantitative analysis. Upon earning her MBA, KJ took a job in the Newfoundland government in the field of industrial benefits associated with the emerging oil and gas industry. She quickly advanced to a more senior position as Policy Analyst for the government’s Executive Council, preparing policy and program recommendations for the provincial Cabinet. Working in resource policy and covering oil and gas, tourism, transportation, Agri-foods, forestry, mining, and other resource sectors provided a broad and in-depth knowledge of development priorities for the province – as

well as the sensitivities and challenges. As KJ explains, “it was fast-paced, challenging, highly professional, complex… and I loved it!” She admits that this experience and her understanding of government’s priorities and process continue to impact her work and perspective today. After her time with the provincial government, KJ wanted to see the other side of the business world, and took a job with the St. John’s Board of Trade responsible for Government Affairs and Policy. This position exposed her to the priorities of the business community and how they were impacted by government policies. She then started a family and began accepting individual contracts with the provincial government – including a position as Executive Director of the Institute of Small Business Counselors. This allowed her the best of both worlds: a varied and satisfying career, and the flexibility to spend time with her children while she managed life as a single mom. A typical day entailed seeing the children off to school, working until they came home, spending time as a family, and then working again once they’d gone to bed. Since this was the 1990s, technological advances (Internet and email) now made this a viable option, and KJ took computer courses to ensure her technical skills were up to speed. KJ decided to work towards her CMC designation; an uncommon designation in her province but one that she highly regarded. She wanted to instill in her children the importance of setting new goals for personal and professional development. When the letter arrived with the results of her CMC written exam, KJ waited until her children were home so they could open it together.

KJ feels strongly that as a consultant she must always leave her clients in a better place than when she started, empowering them with new skills and perspective to support them moving forward. She seldom has only one engagement at a time but prefers to manage 3-4 projects simultaneously and loves the variety of the projects themselves – aboriginal, health, forestry, small business, oil & gas, etc. Her unique knowledge of the province’s resource sector and innate problem-solving skills mean she seldom has free time. She also owns her own textile company – Eye of the Needle – and her free motion embroidery of Newfoundland landscapes hang in living rooms, corporate offices, and boardrooms throughout the Province. She sells all that she turns out. Her clothes – she makes all her own, including coats and suits – have won awards, and some have toured art galleries throughout the Maritimes and New England. Even though KJ’s consulting practice is very successful, her commitment to CMC-Canada keeps her volunteering in various capacities. KJ’s daughter Samantha is now 22 and is working in Fort McMurray as she completes her degree in Public Relations. Son Lukas, 21, is working towards a degree in marine history. With an empty nest, KJ looks forward to new challenges and opportunities and recently took a seven-day white-water rafting trip through the Grand Canyon, sleeping under the stars and exploring the mystic of lost worlds. Her vow in life ‘if you’re going to do it, do it right,’ speaks not only to her commitment to her clients, but her family, her volunteer roles, and all elements of her extraordinary life. C

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INDUSTRY INSIGHTS News and information about the management consulting industry and profession.

International recognition for academics cooperating with their national IMCs

Advisory leads growth at the big 4 accounting dirms

Sixteen academics have been nominated as an Academic Fellow of the International Council of Management Consulting Institutes (ICMCI). The award is intended to confer a mark of distinction that recognizes those academics who have contributed to the study and teaching of management consultancy. The FICMCIs are:

Three of the Big 4 Firms released their annual financial statements for 2013 (KPMG’s year end is September 30th, so we have used their 2012 figures) and Advisory/ Consulting divisions lead each of the firms in their revenue growth.

Flemming Pulfelt

Kathy O’Reilly

Yvonne Burger

Professor of Management & Strategy; Vice Dean at Copenhagen Business School

Program Director of the M.Sc. in Management Consultancy Programme at UCD Smurfit Business School

Part time Professor at VU University Amsterdam

In total, the Big 4 generated global revenues of more than $113 billion, of which advisory/ consulting services made up $33 billion or 29%. Most interesting is the fact that the advisory practices are leading the way when it comes to growth. In each of the firms, the advisory revenues grew faster than any other practice area.

Fawwaz Elkarmi CMC Virachai Vannukul CMC Lecturer/Presidential & Key Executive MBA Program at Pepperdine University, California, USA

Gottfried Haber

Tim Clark Professor of Organizational Behaviour; Dean of Postgraduate & Undergraduate Education at Durham Business School

Professor & Director, Centre for Health Care Management/Health Sciences at Danube University Krems

Andrew Sturdy

Alfred Janes CMC

Daniel Muzio

Business Professor at Vienna University of Economics

Peter Heintel Member of the Doctoral Advisory Intervention Research at Intervention Research Institute Klagenfurt & Vienna.

Head of Department of Management; Chair in Management at the University of Bristol

Professor of Organization; Leadership at Manchester Business School

Léon de Caluwé Professor & CMC at VU University Amsterdam; a senior partner at Twynstra Gudde

an Associate Professor at the Faculty of Engineering at Amman University

Greg Richards FCMC Professor at the University of Ottawa

Mike Thompson FCMC Associate Professor at Royal Roads University, Victoria

Ron Babin CMC Assistant Professor at Ryerson University, Toronto

Andreas Werr Professor at Stockholm School of Economics

The recognized Academic Fellows will use the ICMCI as a platform and community for sharing knowledge and ideas for the benefit of both the clients of the practicing consultants and the Academic Fellow’s students. For more information contact: Reema Nasser Executive Director, ICMCI email: reema.nasser@icmci.org

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Deloitte Consulting led the way with global consulting revenues of more than $10 billion, while PWC was close behind with $9.2 billion. KPMG has $7.9 billion and Ernst & Young had $5.8 billion. An interesting metric to compare across firms is the revenue generated per employee. PWC leads the way with $174K, Deloitte with $161K, KPMG with $151K and E&Y with $147K. Ten years after three of the four firms sold their consulting practices due to SarbanesOxley Act, it is growth figures like these that reinforce the importance of the Advisory practices to these professional services firms.

CMC-Canada launches building awareness campaign After two years of study, market research, and two task forces, CMC-Canada is set to launch its ‘We Handle Tough Stuff’ building awareness campaign in January 2014. Targeted at Chartered Accountants (and yes, we know they now go by the CPA title), ‘We Handle Tough Stuff’ is designed to re-establish the awareness of the CMC designation to the professionals who were key players in getting CMC-Canada established back in 1963. The Building Awareness initiative was launched two years ago, as the CMCCanada National Board agreed that an awareness-building program, focusing on private sector purchasers of consulting services, be targeted. CMC-Canada knew that in order to be effective with limited resources, we had to focus on a specific, narrow audience, with the discipline to not waver from that focus.

The Building Awareness Planning Task Force (BATF) was chaired by Mark Brown FCMC, MNP. The BATF researched the various audiences and recommended that the initial target be Chartered Accountants, as they have significant reach into the private sector and are either involved in the decision or influence the purchase of management consulting services. The BATF passed the torch to the Building Awareness Implementation Task Force (BAITF), chaired by Glenn Yonemitsu CMC, and included representatives from most Institutes. Over the past year, this group conducted and led market research to better understand the Chartered Accountant audience, and set metrics to gauge progress. Praxis Analytics from Regina, SK, led by Cam Cooper CMC, conducted an in-depth study on CAs. IdeaStudio, a boutique Toronto-based

Monitor is picked up by Deloitte!

players such as McKinsey, Boston Consulting Group, Bain & Company, AT Kearney, Arthur D. Little, and Booz & Company.

Back in the 1980s, Harvard Business School strategy professor Michael Porter and his books, ‘Competitive Strategy,’ ‘Competitive Advantage,’ and ‘The Competitive Advantage of Nations’ were required reading for every MBA and management consultant. From this popularity spawned Monitor Company, a multinational management consulting firm with offices in 26 major cities around the globe.

The Canadian Federal Government was even a client – in the early 1990s, Brian Mulroney hired Michael Porter and Monitor to conduct a study on Canadian competitiveness. ‘Canada at the Crossroads’ was the report on how to ensure Canada remains economically strong, even when resources were becoming a less important influence. Surprisingly, many of the issues identified in this report, like taxation and freer trade, have been addressed in the last 20 years.

In Canada, integrative thinking guru Roger Martin, in his pre-Rotman School of Management (University of Toronto) days, founded the Canadian office and led its educational arm, Monitor University. Thanks to Porter’s guru status, Monitor was successful in breaking into the strategy firm segment, occupied by legendary and well-established

But even with this kind of reputation, Monitor failed to keep up with its own strategy. An interesting article in Forbes magazine argues that Porter’s Five Forces framework was fine when analyzing a stable industry, but lacked the ability to help when disruptive influences and new players revealed themselves. It is

marketing agency, was selected to serve as the agency of record for this initiative. They developed an engaging, powerful campaign that will start with paid advertisements in CA magazine in January. As the building awareness initiative was conceived to be a broad-based, multi-pronged focus on CAs, all CMC Institutes, Chapters, and individual members are encouraged to do their part to ensure that CAs see the CMC designation – through attending CA events, speaking at CA professional development programs, conferences, and publishing articles in CA publications. The first ad of the campaign, ‘dragon slayer,’ is included with this edition of Consult. We hope you will frame the ad and hang it in your office – show your pride and help build awareness!

ironic but the strategy consulting firm was not able to manage its own strategy. The problems started during the 2008 recession, when a refinancing was required to keep the firm liquid. But, a continued malaise led to the firm’s inability to meet some key repayment milestones in November of 2012 with its financier. In December Monitor filed for bankruptcy protection. A strategic partner was found to buy some of the key assets… and Deloitte has acquired the Monitor name and plans to market itself with the moniker Deloitte Monitor. So, ten years after its Big 4 compatriots sold their management consulting practices (in response to the Sarbanes–Oxley Act) where Deloitte remained in the game, the consulting powerhouse continues to differentiate itself, by moving closer to the strategy firm segment by buying and rebranding using the Monitor trade name.

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The role of consultants in integrating corporate social responsibility BY MARILYN FRIEDMANN CMC PRINCIPAL, FRIEDMANN STRATEGIC CONSULTING

opposite: CONSULTING UNDER THE SPOTLIGHT: Marilyn Friedmann CMC, believes there is a growing need for consultants to take a more integrated approach to sustainability consulting.

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PHOTOGRAPHER: NATION WONG

There seem to be more conferences, training, and luncheons on sustainability than almost any other management topic today. But how important is CSR to the practice of management consulting?

“

It’s important for management consultants to understand what areas of sustainability are most material to the client’s business, not just what we happen to be experts at.”—Marilyn Friedmann CMC

“

In my book Capitalism and Freedom, I have called [CSR] a ‘fundamentally subversive doctrine’ in a free society, and have said that in such a society, ‘there is one and only one social responsibility of business’ – to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud.”

—The Social Responsibility of Business is to Increase its Profits by Milton Friedman, The New York Times Magazine, September 13, 1970

Here to stay Some corporate executives I spoke with recently expressed a view that sustainability peaked in popularity in 2009/2010 and there is no longer the same ‘buzz.’ Others believe that it appears stuck in neutral at the middle management level, and that nearer-term profitability pressures are diverting attention away from sustainability. Yet others are driving the agenda forward, viewing sustainability as crucial to successful business. The most progressive companies are shifting away from standalone philanthropy, community investment, and volunteer projects, and are integrating sustainability into their core business strategies. There is a growing conviction within the sustainability field that economic and reputational benefits are available to companies that effectively implement sustainability strategies across their businesses. Nelson Switzer, Director and Leader Sustainable Business Solutions at PwC Canada identified three megatrends in CSR

 More companies are adopting sustainability reporting practices  Companies are experiencing rapidly shifting requirements in how they operate as a result of emerging factors and regulations such as: • Dodd-Frank (U.S. Financial Regulatory Reform) • Conflict Minerals rules • Climate Change / Severe Weather Adaptation  An increasing number of companies are incorporating environmental, social, and governance data into asset management decision-making

and guidance from consultants during the two year transition period.” The role consultants can play There is a growing need for consultants to take a more integrated approach to sustainability consulting. Katie Dunphy suggests: “rather than focusing solely on the issue of climate change, it would be more relevant to examine the business impacts of climate change in the context of rising energy prices, water scarcity, and food security, and the relevant implications under the company’s existing business model.” This requires that consultants work to build understanding, capacity, and alignment across all departments and levels. Nelson Switzer estimates the ratio for success at “70% business knowledge and 30% CSR.”

Take action: engagement plan is essential Companies and government agencies often struggle to implement consultants’ recommendations as they relate to sustainability. The CMC-Canada Essentials of Management Consulting course provides helpful guidelines for the Implementation Phase, recognizing the challenges that companies face at this stage. Dropping final recommendations on a client then exiting seldom works in the field of sustainability. Sustainability consulting must also include ethical considerations, as consultants act in full awareness of the environmental, social, governance, and economic impacts of their advice.

Current market Katie Dunphy, Senior Manager Climate Change & Sustainability for KPMG, describes the Canadian sustainability consulting market as having slow but consistent growth in the past 5-7 years

“

Businesses are facing increasing demand, for the Canadian sustainability consulting market has been one of slow but consistent growth in the last 5-7 years. Businesses are facing increasing demands for transparency and improved performance from a wide variety of stakeholders… the recent release of the Global Reporting Initiative’s G4 Reporting Guidelines (www.globalreporting.org/reporting) will prompt companies to look for support 10 consult magazine Fall 2013

“

The management consulting practice could play a leadership role in closing the implementation gap, by developing new models consulting/ practitioner/research models—that ensure the actual realization and continuous improvement of sustainable development strategies and plans.”

—Ann Dale CMC (pictured on right), Canada Research Chair, Sustainable Community Development; Professor, Royal Roads University, School of Environment and Sustainability

Moving beyond the wild west phase

Key considerations

There is a growing need for skilled consultants to assist organizations in becoming more open, connected, and able to respond more consistently to sustainability issues and opportunities across the enterprise.

 Recognise that the knowledge base is expanding quickly

 Stay current with standards and frameworks, including: ● ISO 26000: www.iso.org/iso ●

A1000 AccountAbility Principles Standard 2008: www.accountability.org

●

UN Global Compact Ten Principles: www.unglobalcompact.org

●

Stakeholder Engagement: www.accountability.org

PHOTOGRAPHER: LYLE STAFFORD

Efforts are underway by the International Society of Sustainability Professionals to formalize a Common Body of Knowledge for Sustainability Practitioners. Standards and professional certification in sustainability may be needed.

 Know how sustainability fits into the bigger strategic picture for your clients

consult magazine Fall 2013 11

Requirement: Extended Vision of Leadership A joint project by Globescan and SustainAbility entitled ‘The Regeneration Roadmap’ wrapped up in June of this year. This international project identifies six essential attributes of extended leadership that are required for success in sustainable development leadership. Trust, collaboration, and leadership are the enabling elements required: Trust, Collaboration and Leadership

Trust, Collaboration and Leadership

“

The idea that companies have a duty to address social ills is not just flawed… it also makes it more likely that we’ll ignore the real solutions to these problems.”

—Aneel Karnani, “The Case Against Corporate Social Responsibility” The Wall Street Journal, June 14, 2012

Demonstrate value to the business Bob Willard, expert on the business value of corporate sustainability strategies

“

There is a two-part business case for sustainability: capture opportunities and avoid risks. If a typical company were to use best-practice sustainability approaches already being used by real companies, it could improve its profit by 51% to 81% within three to five years. That’s the upside. The downside is that it exposes itself to a potential 16% to 36% erosion of profits if it does nothing. The bigger risk is that capital markets may consider the company a risky investment. That’s why consultants need to help companies with environmental, social and corporate governance (ESG) risk management.” What can management consultants do to advance the CSR agenda? Let your voice be heard. What do you think CMCs can and should do, if anything, to advance the CSR agenda? Participate in CMC-Canada’s Energy & Climate Change Special Interest Group (SIG), which meets on the 4th

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Tuesday of each month with the goals of knowledge sharing, planning, and identifying trends. Contact Neil Fairhead, fairheadn@gmail.com, for details. Consider joining The International Society of Sustainability Professionals (ISSP), a valuable community for resource sharing, professional development, and conferences. The ISSP is currently developing a certification program for sustainability professionals. Research all relevant training opportunities that will be helpful to your practice. A few recommended programs are identified here; many universities also offer CSR/ Sustainability programs. The international society of sustainability professionals:  www.sustainabilityprofessionals.org  The accountability project: www.theaccountabilityproject.ca  The natural step: www.naturalstepcanada.com  The certificate in corporate social responsibility (CSR): www.csr-stmikes.ca C

www.sustainabilityprofessionals.org/ process-developing-certification-sustainability-professionals ii theregenerationroadmap.com/reports.html#/changing-tack.html

COAST TO COAST Events, news, and happenings at CMC-Canada

SASKATCHEWAN

AB ALBERTA

BC BRITISH COLUMBIA At its AGM in May CMC-BC welcomed three new Council members, Paul Burgener CMC, Gordon Gunn CMC, and Don Sherrah CMC, as Chapter Chairs and thanked Joy Playford CMC, Dale Christenson CMC, and Satnam Sekhon CMC for their work over the previous two years in those roles. The AGM also saw outgoing President Russ Grabb CMC present the inaugural President’s Award for Community Service to three highly deserving members, Ray Lazanik CMC, Jim Pigott CMC, and Marty Playford CMC. The Institute also presented its refreshed Mission, Values and Strategy statement for 2013/14 which sets out 5 key initiatives to deliver increased value to members:  Achieve self-regulated professional status in BC.  Achieve preferred status with government and business.  Completely optimize value to members and brand awareness with stakeholders.  Grow its membership to 1500+ members: • 1000+ certified. • 50% under 40 years of age. • 30% student or prospective members.  Improve communications with and among its members CMC-BC-MAINLAND CHAPTER Lean Across the BC Public Service Lynda Tarras Head of the BC Public Service Agency “Doing ‘less’ allows you to do ‘more’ for your clients.”

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6th Annual Consulting Conference: Management Priorities in Government Michael ‘Pinball’ Clemons Vice-Chair Toronto Argonauts As a former all-star running back, Grey Cup winning coach, President and CEO, and now Vice-Chair for the Toronto Argonauts, Michael ‘Pinball’ Clemons is a man of unquestionable character and spirit. Pinball inspired Conference attendees by demonstrating what it means to beat the odds and encouraging listeners to use teamwork to achieve their goals.

SOUTHERN INTERIOR CHAPTER Professional Insurance: An Essential to Practice Risk Management Andrew Spencer Account Executive LMS PROLINK Andrew’s presentation explored the current environment for professional risk management. Questions posed to attendees included:  Are your consulting clients increasingly requiring professional insurance as part of their contracts?  Did you know that lawsuits, alleging professional negligence, are becoming more common?  Have you considered that a significant percentage of lawsuits alleging professional negligence are frivolous in nature and legal defence costs are very expensive? CMC-Canada’s exclusive Group Professional Liability program with LMS Prolink is a low-cost solution for Errors and Omissions Insurance Coverage, providing the safety net you need. While coverage varies, assuming a basic policy costs $2000, joining CMC-Canada can save you the cost of your annual membership fees in insurance coverage.

The Saskatchewan Institute is undertaking a major initiative in 2013/2014 – ‘The Saskatchewan Economic Review.’ This Review will identify and profile the contribution of urban centres in both supporting and sustaining Saskatchewan’s economic growth. The Institute will provide recommendations for policy and business leasers to sustain the current growth of Saskatchewan’s economy. In completing this Review, the Institute will help elevate the business and public awareness of the CMC designation, highlight the role of a CMC, and showcase the abilities of Saskatchewan CMC members.

MANITOBA People’s Choice Award at WinnOvation 2013 In January, the Institute sponsored the Award, whose winner was Epicenter AV (www.epicenterav.com), which develops innovative technology to simply the management of complex audiovisual systems. Congratulations Sandra Altner FCMC CEO of the Women’s Enterprise Centre of Manitoba Sandra was named President of the Canadian Council for Small Business and Entrepreneurship in May. At its AGM in June, the Institute awarded the CMC designation to Murray Grant CMC, principal of MasterKey Business Solutions. Members also approved amendments to the By-laws and welcomed the 2013-2014 Institute Council: Richard Brodeur CMC and Al Moxam CMC join returning Councillors Tim Wildman CMC (President), Inga Sheane CMC (Vice President), Randy Baldwin FCMC (Past President), Alex Yaworski CMC (Secretary), David Thompson CMC (Treasurer), Warren Thompson CMC (Registrar), Sandra Foster CMC, and Tim Kist CMC.

QUEBEC Congrès de l’Ordre – Gérer les risques pour mieux performer Le Congrès de l’ADMA a eu lieu à Québec en Janvier. Les participants ont pu choisir parmi plus de 17 activités de formation – couvrant une variété de besoins en matière de perfectionnement professionnel. Parmi ces activités, un panel d’experts et de praticiens exploré divers aspects de la bonne gouvernance en matière de gestion des risques.

QC ONTARIO

ATLANTIC CANADA Basic Principles of Lean Manufacturing and the Relation to Organizational Structure Bert Driessen Owner/Founder 2XL Consultancy “Lean Manufacturing depends on a sector independent set of tools to enhance operational efficiency (not strictly limited to manufacturing only)… it is recommended to first focus on restructuring and streamlining the organization prior to the introduction of the complete tool kit for Lean Manufacturing.”

GREATER TORONTO AREA CHAPTER Leadership Thought Forum Series: Strategic Discomfort David Tait Director AlixPartners “It is about managing the culture, keeping the firm nimble, on edge, uncomfortable and hungry... and being focused.” SOUTHWESTERN ONTARIO CHAPTER Communication and Leadership Training

Tim O’Regan Vice President Business Development Eagles Flight In conjunction with its new CMC reception, the SWO Chapter welcomed Tim O’Regan from Eagles Flight. Eagle’s Flight harnesses the potential in organizations and sparks transformation through unique team and leadership training experiences.

EASTERN ONTARIO CHAPTER Federal Government Procurement Changes and Initiatives Shereen Benzvy Miller Director General of the Office of Small and Medium Enterprises, PWGSC As a follow-up to her very popular and well received presentation to EOC members in 2011, Ms. Miller spoke about a number of changes and initiatives underway at PWGSC, including:  Smart Procurement, a new initiative within PWGSC, which changes the way government undertakes the procurement process.  The new ProServices system and what to expect in the coming months.  The Supplier Advisory Committee, a new supplier consultative body at PWGSC.  The Canadian Innovation Commercialization Program.  An announcement and demonstration regarding the next generation of the government’s electronic tendering system.

Public-private partnerships can’t succeed without active owner participation

BY ROB LOWRY, VICE PRESIDENT AND RICHARD LUNDEEN CMC PRESIDENT, SEG MANAGEMENT CONSULTANTS INC.

Management gurus have told governments to focus on core functions by concentrating on steering without being distracted by rowing. The most recent step in this evolutionary trail of transferring ‘rowing’ functions outside government is the Public-Private Partnership – known by the acronym P3, [except in Ontario where the local variant is called Alternative Financing and Procurement (AFP)].

The Path to Successful P3s The P3 approach has helped improve the initial definition of the desired long-term results, enforced diligent project management to ensure on-time and on-budget project delivery, and attracted sophisticated sources of private sector expertise and financing. But it is not without challenges and risks.

P3 arrangements often involve the design, development, management, and long-term financing of physical infrastructure to facilitate the delivery of services to the public. The same P3 model has been applied to services including facility management and IT systems.

Some may say that the public service mantra is: “Just follow the process. We’re not certain what the result will be, but it will be acceptable if you just follow the process.” Conversely the private sector says, “What result do you want? We’ll figure out how to do it later.”

In several jurisdictions, a separate project delivery department or agency has been created as the focus for P3 expertise and activity – Infrastructure Ontario, Partnerships BC, and PPP Canada.

The critical factor in successful P3s is acknowledging both that the desired result must be defined accurately and that the process must meet the tests of public scrutiny – open, fair, and transparent.

Northwest Anthony Henday Drive, Alberta (Merit Award 2012) This project involved the design and construction of approximately 21 kilometres of six and four-lane divided roadway. It has eight interchanges, five flyovers and two railroad crossings. The road, which opened to traffic in November 2011, has delivered both cost savings projected over the life of the 30-year agreement of $240 million and reduced average commute times north of Edmonton. Photo by Ryan Jackson, Edmonton Journal

consult magazine Fall 2013 17

To ensure value for money from this new bridge between the sectors, considerable effort must be invested in developing and documenting the desired results. At best, the results will be defined in performance terms, but invariably the requirements are described in prescriptive detail.

The P3 model is based on the proportionate assignment of risk based on the means, and ultimately the responsibility, to assume and manage that risk. As the purchaser, government decides which risks it will transfer to the private partner, and by default which remaining risks it will retain. Beware: none of the risks magically disappear. Typically, risks relating to cost and schedule control receive most attention. The priorities of P3 project delivery organizations are focused mainly on the procurement stage and handing over the completed project (building, road, bridge, or IT system) to their client, the public sector owner. Since P3 contracts often have very long terms (30 years is typical) another risk also deserves priority attention. This relates to the question: has the public sector client – the ‘owner’ – allocated the right resources both to the procurement stage and to carry out its long-term service management responsibilities? Owner Participation is Critical In P3 project delivery, organizations generally take the lead role during the planning and procurement phase and drive the process competently to meet schedule and cost parameters. Their clients – the public owners such as hospitals, government program departments, and institutions (that may undertake only a single P3 project in a career lifetime) – are essential participants. Since P3 contracts often run for decades, this is far beyond our ability to plan with certainty. In large P3 projects with multi-year schedules, the leverage for making cost-effective decisions declines throughout this initial planning phase and diminishes rapidly once the contract is finalized. Conversely, the expenditure curve rises slowly in the initial stages and continues upward once the contract is in place. Committing adequate client resources to improve the quality of early planning and procurement decisions is essential to a successful project completion and to effective ongoing operation. A wide range of representatives from across the owner organizations should be involved to ensure accuracy and to foster buy-in by those who will occupy the completed facility or use the contracted services. Once the P3 contract is in place, cost-effectiveness is determined by three main factors:  The terms of the contract.  The extent of changes to meet unforeseen (or absent) requirements.  The diligence of the owner to ensure that the P3 supplier provides the quality and value of goods and services described in the contract. Unlike traditional contracts for the delivery of goods (within days or months), or services (over months or a few years), P3 contracts anticipate an ongoing business relationship that requires robust participation from both the purchaser and the supplier. Clients cannot just sign the PO and wait for delivery! Effective management of a

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 Kelowna and Vernon Hospitals, BC (Service Delivery Award 2012) This complex project includes a whole-site facility management model with multiple buildings 50 kilometres apart that fall under two regional health organizations. The private partner took over responsibility for maintaining existing facilities in 2009, as well as three new facilities. The integrated plant maintenance, consistent standards, and single help desk ensure the facilities management services are at the leading edge of efficiency.  Centre hospitalier de I’Université de Montréal CHUM, Montréal (Finance Award 2012) The project involves the replacement of three existing hospitals into one new facility of approximately 332,655 square metres in downtown Montréal. It involves the largest P3 senior debt funding in Canada to date with a value of $1.37 billion and is the first Canadian P3 financed at a BBB-category rating level. Management services are at the leading edge of efficiency.

long-term P3 contract requires careful preparation as well as diligent execution. Owners are Responsible for Service Management During the initial planning stages, the owner should determine the ‘stay back’ organization that will represent its interests in the P3 contract and participate in managing the ongoing business relationship with the P3 supplier.

This role is known as service management. The client must retain sufficient technical or subject matter expertise for various critical functions:  To advocate for the owner’s interests (and rights).  To confirm the compliant delivery of goods and services required by the contract.  To discuss adjustments and changes that may require price negotiation.  To maintain effective communication and resolve disputes.  To identify or respond to opportunities to improve quality or value.  To represent the owner at contract closeout, hand-back, and re-procurement. The stay-back organization for the service management function will be much smaller than a traditional service delivery function, but it will retain the same level of public accountability for the services being delivered through the P3 contractor. Inadequate provision for service management puts expenditure controls, value for money, and effective program delivery at risk. The skills required for these new service management functions differ from the direct supervision of operations and the administration of short-term contracts. The longterm success of a P3 arrangement requires the owner’s representatives to build and maintain reciprocal trust, mutual interests, and transparent accountability – a partnership. The service manager needs appropriate qualifications and expertise to gain the respect of the P3 contractor and to carry the owner’s authority for approvals and decisions required by the contract. Ideally, the owner’s service manager is recruited or assigned during the project-planning stage to build familiarity and commitment. The P3 contract is just one component of the complete public-private partnership and the owner’s service manager is a critical facilitator in its success. What is a successful P3 project? The Canadian Council for Public-Private Partnerships (C2P3) makes annual awards to honour outstanding Canadian P3s in the areas of project financing, service delivery, and infrastructure that have demonstrated excellence and innovation. The 2012 awards included two highways and five healthcare facilities and showcase how P3s “are having a positive impact on communities across Canada looking for renewal and investment to deliver infrastructure and services faster, more efficiently and at greater value for taxpayers.” (www.pppcouncil.ca)

 Disraeli Bridges & Freeway, Winnipeg (C.W. Chuck Wills Award 2012) This City of Winnipeg project included the replacement of the two-kilometre stretch of the Disraeli Freeway, with a new road and two bridge structures over the Red River and railway. The private partner was challenged with environmental contamination and keeping lanes open during construction. The result is 17 percent in cost savings compared to the traditional approach and a much-improved artery into Winnipeg’s downtown.  Humber River Regional Hospital, Toronto (Finance Award 2012) This $1.75 billion project is the first fully digital hospital in North America. The $1 billion of private construction-phase financing is sourced from a combination of short-term and long-term bond proceeds, which achieved an “A” rating when they were issued.

Core Message for P3 Success For initial and long-term success the public sector owner must participate actively with the P3 project delivery organization and continue to allocate the right resources to fulfill its responsibilities throughout the service management period. Although the private P3 partners deliver the goods and services, the public sector owner continues to be accountable to the public. That accountability cannot be transferred – even through a P3 approach. Initial P3 success can be declared during the planning and project delivery stages as represented in the C2P3 awards. However, the determination of ultimate operational success from the owners’ perspective will require many years or decades. C

FOR FURTHER REFERENCE:

Canadian Council for Public-Private Partnerships (C2P3) www.pppcouncil.ca

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Doing business internationally BY ROBERT G. WHITE

CMC PRESIDENT, BRI INTERNATIONAL INC.

Dale was one of two management consultants working with a group of businesses in Suriname for two years. Her role was to help them expand their businesses locally and internationally by implementing international best practice management systems. The objective was to ensure they delivered what they committed to on time, all of the time, and made money doing it. International management consulting is not for everyone. Suriname was not an easy assignment. The work was very challenging and there were no five-star hotels or beaches to visit. It was hot, the food was different, and the water a risk. Making a difference requires patience, innovation, adaptation, and a love of the people you are trying to help. In 1985, I (and two other management consultants) started Business Resource International and BRI International Inc. The purpose was to help organizations in Canada and internationally define what they want to do (and how to do it) by implementing the structure and culture necessary to align their vision, mission, and objectives with operations. Within six months we had our first international client: The Singapore Institute of Standards and Industrial Research (SISIR). Since then, we have helped organizations in Brazil, China, Colombia, Suriname, Nigeria, and Guyana, among others, to develop and implement a governance and risk management framework for corporate social responsibility (CSR) and sustainable development. We decided to focus on capacity building by transferring our knowledge and capability to local management consultants while helping local companies implement the governance and risk management systems required to sustain change. This approach required partnering with organizations that could provide local management consultants able to commit the time, sometimes two years, to work with our consultants. The goal was to help the organizations implement the required systems and demonstrate a measured improvement in organizational efficiency, effectiveness, and stakeholder satisfaction. Trinidad and Tobago was the proving ground for our

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approach. The initial project included helping four companies and training two management consultants, and was delayed because of an attempted government coup. Funding was split between the Canadian International Development Agency (CIDA) and the companies involved in the project. After ten years and many challenges, we pioneered the ‘BRI Group Process,’ used in Canada and worldwide to help groups or clusters of small and medium-sized enterprises (SME) share resources and the cost of implementing governance and risk management systems for quality, environment, health and safety, and CSR. Over 300 Canadian SMEs participated in the BRI Group Process. Making a difference requires vision and risk taking In 2000, when we were close to completing a two-year project in Brazil, our client, Servico Social da Industria (SESI), one of the education and training arms of the Brazil Federation of Industry, asked me where Canada, the USA, and Europe were going in terms of sustainable development. Two years later, as a result of our conversation, Brazil had the first companies in the world with integrated governance and risk management systems for CSR and sustainable development. After this success we were asked by the Confederation of Indian Industries (CII) to train their management consultants while helping Indian companies implement integrated governance and risk management systems for sustainability. CII wanted us to build on a comprehensive training program for they had been using throughout India. Once again we were called on to learn and help companies implement integrated governance and risk management systems for CSR and sustainable development. Recently I started a project on socioeconomic development in Nigeria. One of the past presidents of the Canadian Manufacturers and Exporters, Steve Van Houten, remembered what BRI and CME did in the early 90s to help SMEs in Canada implement governance and risk management systems for CSR and Sustainable Development. Thanks to an introduction from Jim Chester CMC, we are now in discussion with the African Development Bank for funding to continue the project and to expand it across the whole of Africa. Successful management consultants know that they get paid for results, not time. In the developing world results are about providing clients with the ability to make sustained changes and create and implement a vision that makes a difference in their lives and the lives of their stakeholders. C

PHOTOGRAPHER: KEITH DANNEMILLER

A management consultant must have a compelling reason to want to work in another country, especially a developing country. One of the best management consultants I have ever worked with, Dale Robinson CMC, captured my passion and commitment to the developing world when she responded to my question about why she wanted to work in Suriname in the late 90s. Dale said, “I want to do it because I can make a difference there.”

Getting international assignments requires active participation in a network. Most of BRI’s international work came as a result of partnering with an organization or individual who already had the assignment, or believed they could get it with a person or organization that had the qualifications that BRIs consultants have.

FIGURES AND TRENDS FROM CMC-CANADA’S 2013 CANADIAN MANAGEMENT CONSULTING INDUSTRY REPORT Previous fiscal year

ACTIONS TAKEN TO BUILD REVENUE Strategic actions taken to build revenue Multiple responses possible. Will add to more >100% N=412 Increased business development efforts

52%

Focused on different services

30%

Focused on different client segments

27%

Increased marketing communications

25%

Targeted hiring

17%

Changed business model

15%

Diversified geographically within Canada

12%

Diversified geographically outside Canada

Other

None

19%

Seven percent of Canadian management consulting firms say they diversified geographically into new foreign markets in the previous fiscal year.

Previous fiscal year

WHERE REVENUE WAS EARNED

<1% Rest of world

Approximately one-in-five firms earned consulting revenue outside Canada in the previous fiscal year. Virtually all ‘exporters’ also earned revenue domestically.

<1% 3% 8%

Canada 79%

<1% USA

Current fiscal year

REVENUE GROWTH EXPECTATIONS Revenue expectations for current fiscal year for own firm Canada only 22%

11%

15%

21%

15%

Exporter 37%

11%

16%

13%

16%

Firms that ‘export’ consulting services tend to have higher % revenue growth expectations for the current fiscal year than ‘Canada only’ firms.

BARRIERS / CHALLENGES IMPEDING ‘EXPORTERS’ Interviews with exporters provided anecdotal evidence of various challenges in foreign markets, beyong the need to establish credentials and build contacts. For example:

 Limited knowledge of foreign

opportunities and search costs

 Extent of local (or global) competition  Protectionism / home market bias  Availability and nature of visas  Exchange rates  Health and security concerns  Willingness of Canadian staff to travel / work abroad  Local partnership model in global firms  Unreliability or delays in payment  Contractual / legal risks Bob White CMC, President, BRI International Inc. in Mexico City.

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PASSION IN THE PROFESSION

50 years of passion in the profession BY GLENN YONEMITSU

CMC CHIEF EXECUTIVE OFFICER, CMC-CANADA

opposite: Ted Netten FCMC (left) and George Currie FCMC (right), both worked at the firm Urwick, Currie Ltd in the 1960s.

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PHOTOGRAPHER: NATION WONG

In 1963, ten leading accounting firms founded The Canadian Association of Management Consultants. It was the foresight and action of these leaders that served as a catalyst to start the development and maturation of the management consulting profession in Canada. On the occasion of our Golden Jubilee milestone, we thank these passionate individuals.

“

We recognized that personal accreditation and personal recognition was at the heart of what we were seeking to do.”—George Currie FCMC

ORIGINAL OBJECTIVES OF THE CANADIAN ASSOCIATION OF MANAGEMENT CONSULTANTS To foster among management consultants the highest standards of quality and competence.

To establish, maintain, and enforce upon all members strict rules of professional conduct and ethical practice.

To represent fairly, and act as authoritative spokesperson for, the management consulting profession.

To disseminate, to the business community and the public, information regarding the services offered by the management consulting profession.

To undertake development, research, and training programs which will advance and disseminate among members the common body of knowledge of professional management.

To provide, in due time, a set of standards to be met by individuals desiring to be recognized as Professional Management Consultants.

Ted Netten FCMC, worked with McDonald, Currie, and then with Price Waterhouse, and remembers; “There was nothing in Canada. If you wanted to know what was going on in management consulting, and you wanted to see what the professional practices were doing, you went [to the U.S.] to an Association of Consulting Management Engineers (ACME) Conference.” “ACME had all the accoutrements of a profession (common body of knowledge, code of ethics, professional development) even though it was an industry association.”

By 1956, the Quebec Institute of Chartered Accountants (ICAQ) established a special committee, conducted by Chartered Accountants, and chaired by James J. Macdonell, Partner of Price Waterhouse, and future Auditor General of Canada, to study “ethical and other considerations relating to management consulting practices.” ICAQ encouraged consultants to organize. In 1960, the heads of management consulting practices of the Quebec-based CA firms broadened their group to include non-CA consulting firms.

respects to the established rules of professional conduct for institute members.” At the same time, consultants themselves determined to organize, taking responsibility for the orderly and disciplined growth of their field. 6 of the 10 original founding firms, including Gerald Fisch of Payne-Ross (now Deloitte), asked themselves: “Are there matters or areas which could be discussed by a group of individuals engaged in management consulting in different firms or organizations which render such a discussion profitable?” Geoff Clarkson of Woods Gordon convinced the firms to put aside their differences, and reconcile their personality clashes to promote the virtues of cooperation. In October 1962, they formally agreed that an association of management consultants in Canada was necessary and should be formed. Like Macdonell, Clarkson appreciated that a profession cannot advance through individuals who guard their expertise as ‘secrets’ of their own.

Macdonell felt the best way to raise the awareness of the competence of the work was “the development and maintenance of the highest possible standards for the application of our skills in this art.”

George Currie FCMC, head of Urwick Currie, a predecessor to PwC, described Clarkson; “Geoff was a quiet-spoken, thoughtful, kind man, who never raised his voice. We realized that we weren’t dealing with someone who was trying to put one over on us. He was genuinely prepared to share the knowledge that he and his firm had of management consulting, which was substantially more than any the rest of us had.”

In 1958, the Quebec Institute adopted rules that allowed CAs to carry on a management consulting practice under a separate name, “providing that they conformed in all

On July 4, 1963, the Canadian Association of Management Consultants was established and Clarkson served as first President.

24 consult magazine Fall 2013

“

There was a meeting at the Windsor Hotel in Montreal, primarily with the people who would be the first ‘management consultants’ to be certified, as to the merits of having the designation, with the large firms, to help promote professional management consultants – to demonstrate that we were as qualified as any other professionals: lawyers, accountants, doctors, and engineers.”—Ralph Boston CMC

consult magazine Fall 2013 25

Show your passion. The Canadian Association of Management Consultants (CMC-Canada) is proud to offer members a growing range of high-quality products highlighting the Certified Management Consultant (CMC) designation. Browse around our online store, we offer a fast and secure checkout. Wear your designation with pride!

cmc-store.ca

Silk Neck Tie

Silk Scarf

Cutter & Buck Tan Leather Notebook Jotter

Cutter & Buck Computer Case - Menâ&#x20AC;&#x2122;s

JAMES J. MACDONELL: A CANADIAN LEGEND

GEOFFREY CLARKSON: A STATESMAN

James Macdonell became Managing Partner of the consulting division of Price Waterhouse and Co. at the tender age of 35. It was his committee (at the Quebec Institute of Chartered Accountants) that laid the groundwork for the Canadian Association of Management Consultants. And, it was his article, published in 1958, that served as a ‘call to arms’ for management consultants to take hold of their rapidly developing profession.

Geoffrey Clarkson was born in 1909. He came from a long line of Chartered Accountants and his surname evokes the golden days of Canadian accounting. Many business people today may not remember the name Clarkson Gordon, but for 125 years, from when Thomas Clarkson founded the original Clarkson firm in 1864, to 1989, when the firm adopted the name of its international partner, Ernst & Young, Clarkson Gordon was arguably the most respected name in Canadian accounting.

But, as much as he helped to shape the consulting profession, perhaps Macdonell’s best work was saved for when he served as Auditor General of Canada from 1973-1980. He dramatically changed the role of the Auditor General (AG), from an audit function, to one that tested for ‘value for money’ (VFM). VFM, or performance auditing, was a new concept in the 1970s, but since then, it has spread around the world as a key method for helping ensure accountability within the public sector.

During the formative meetings of the heads of the various management consultancies, the competitive spirit did not always lead to a collaborative solution. Geoff Clarkson played a key role in the eventual agreement that led to the founding of CMC-Canada.

Following his role with the Federal Government, James served as Canada’s representative on the United Nations Board of Auditors. In 1982, he became the first non-American to serve as a member of the Consultant panel of the Comptroller General of the United States.

Currie emphasized, “We recognized that personal accreditation and personal recognition was at the heart of we were seeking to do.” The industry association that was CAMC continued until 1976, when the Currie Report challenged the leadership on whether to grow substantially or to reduce some of its activities. CAMC (now CMC-Canada) was consolidated with the Institute of Certified Management Consultants of Canada (ICMCC), which ensured the Institutes across Canada were coordinated. In 1982, Joe Martin FCMC, of Touche Ross (now Deloitte), as President of the Institute of Management Consultants of Ontario, called for legislation that recognized the profession: right to title by 1987, and right to practice by 1999. Don King CMC, chaired the Professional Affairs Committee that took up the challenge, and in 1983 the Province of Ontario became the first jurisdiction in the world to recognize the Certified Management Consultant designation. Legislation was subsequently passed in all 10 provinces recognizing the CMC designation. Ralph Boston CMC, a young professional with P.S. Ross and Partners, was one of the first to receive his ‘management consultant’ designation. “There was a meeting at the Windsor Hotel in Montreal, primarily with the people who would be first ‘management consultants’ to be certified,” Boston recalled. The leaders made presentations to the group, “as to the merits of having the designation, with the large firms, to help promote professional management consultants, to demonstrate

Clarkson was a statesman and a gentleman. his son Geoff, now a retired partner at Clarkson, Gordon, remembers his father as, a “tough, but private person, who made friends easily, but was not close to many.” While JJ Macdonell had a vision and did yeoman’s service to get the consultants at the table, it was Clarkson who led everyone to agreement. As such, Clarkson served as the first President of CMC-Canada.

that we were as qualified as any other professionals: lawyers, accountants, doctors, and engineers. A lot of us who were familiar with professional engineering thought this was a great idea.” In 1985-86, a special CAMC task force, led by Geoff McKenzie FCMC, published a white paper advocating for free trade. 20 consulting firms endorsed this paper. When the Canada-U.S. Free Trade Agreement came into effect, management consultants were included as one of the professions allowed access across the border thanks to this lobbying effort. This is now included in NAFTA. In 1986, the Institute in Manitoba, led by Sean Sweeney FCMC, developed the CMC racetrack logo. This logo has become the recognizable icon for the CMC designation worldwide. CAMC’s activities were then consolidated with the coordinating activities of the Institute of Certified Management Consultants of Canada and the new amalgamated organization was called CMC-Canada. The CMC movement continues to advance the consulting profession thanks to the efforts of dedicated and passionate individuals. Please join me in recognizing and thanking all those over the past 50 years who contributed their passion to our profession. Want to read more about the founding of CMC-Canada? Visit the ‘About Us’ section on www.cmc-canada.ca to read ‘From Stopwatch to Strategy,’ published in 1988 on the 25th anniversary of CMC-Canada, and other interesting facts about the Association. C

consult magazine Fall 2013 27

FOCUS

SECURING CANADA ARE WE READY?

Given that heightened concerns surrounding public safety and security are likely to be with us some time to come, what are the implications for management consultants and our clients? BY JOHN GELDER

FCMC SENIOR PARTNER, OTTAWA OFFICE, GELDER, GINGRAS & ASSOCIATES

Reports of recent terrorist events, including bombings at the 2013 Boston Marathon, an alleged plot at the BC legislature, and attacks in Algeria involving Canadians, have brought renewed attention to the issue of public safety and security. Indeed, the challenge of combating such threats is costing government agencies and businesses billions of dollars annually to secure and protect people, infrastructure, and assets. Public Safety Canada, the federal portfolio department responsible for dealing with national security, emergency management, and law enforcement, wields an annual budget of more than $6 billion, and the combined cost of policing in Canada now exceeds $12 billion annually. At around $18 billion, spending on national defence is larger still. Given that heightened concerns surrounding public safety and security are likely to be with us some time to come, what then are the implications for management consultants and our clients? Significant Opportunity While there is no simple answer, the safety and security sector represents a significant opportunity for those

28 consult magazine Fall 2013

consulting firms with the right resources. Indeed, large firms such as Accenture already have well-defined solutions for the defence, security, and public safety sectors. Not surprisingly, these solutions focus largely on cost reduction and operational efficiency as clients respond to growing pressure to rein in spending in the face of persistent demand. Headline-grabbing cases and high-profile events aside, the task of ‘Securing Canada’ is a work in progress that requires a 24/7 effort. In fact, the safety and security sector has been a focus within our own practice for some time and in recent years we have provided support to a number of nationally integrated enforcement programs designed to combat the increasingly complex and sophisticated nature of organized crime. Meanwhile, other consultants have also been busy playing their parts. For example, DAMA Consulting of Ottawa provided support for both the 2010 Vancouver Olympic Games and the 2010 G20 Summit in Toronto. DAMA has also helped clients evaluate transit security – an area of particular concern ever since the 11-M attacks in Madrid and the 7/7 London bombings.

Clive Addy, Retired Canadian Forces General Executive Editor, Frontline Security

While governments have naturally been preoccupied with combating terrorism and organized criminal elements, other areas within the safety and security domain are also receiving considerable attention. Interoperability – the ability of diverse systems to work together – has been an important focus of concern ever since the events of 9/11 highlighted the immense communications and coordination challenges faced by first responders in crisis situations where normal channels are disrupted or damaged. Online Security Similarly, as anxieties mount regarding potential threats to electronic systems, networks, and infrastructure, cybersecurity presents an emerging area where consulting expertise is likely to be needed. Indeed, Canada’s Auditor General, among others, has suggested that Canada’s corporate sector is not doing enough to protect valuable assets from cyber-attack. In the U.S., it is estimated that cyber-attacks may be taking up to $140 billion and half a million jobs out of the economy every year. Retired Canadian Forces General Clive Addy, Executive Editor of Frontline Security, a publication that tracks public safety and security trends, sees cybersecurity as a major strategic issue that encompasses a broad range of ‘globalized’ security concerns. These include safeguarding communications infrastructure, protecting intellectual property, and maintaining the security and integrity of the banking and financial sectors. Reports that computer systems at Nortel Networks were hacked by outside interests for over a decade highlight the seriousness of the risks involved. Exploring New Models Many of these same global forces are also affecting the law enforcement arena where the ‘economics of policing’ are coming under close scrutiny. General Addy notes, for example, that in the face of organized criminal gangs, old models of community policing are no longer effective and must give way to new approaches that recognize the increasingly diverse nature of Canada’s population. As such, public officials responsible for law enforcement are likely to need help to explore new models and to manage the related transformation and transition processes.

“

Cybersecurity is a major strategic issue that encompasses a broad range of ‘globalized’ security concerns including safeguarding communications infrastructure, protecting intellectual property, and maintaining the security and integrity of the banking and financial sectors.” consult magazine Fall 2013 29

Mike Appleton FCMC, Former Canadian Forces Colonel Managing Director, DAMA Consulting Services

Management consultants by nature are trained to see problems as opportunities requiring new and innovative solutions. However, DAMA Consulting Services Managing Director Mike Appleton FCMC, himself a former Canadian Forces Colonel, points to some important prerequisites for consultants seeking work in the safety and security sector. First, partnerships are usually required because the ‘deep expertise’ in fields such as intelligence and counterterrorism is not typically resident within the management consulting community. Second, due to their sensitive nature, most sector-related projects require consultants to obtain stringent security clearances as a condition of engagement. Thirdly, consultants must exercise caution with respect to the handling and sharing of information due to legal statutes and privacy laws, which can vary significantly across jurisdictions. Notwithstanding these considerations, Appleton anticipates plenty of opportunities for management consultants to assist clients in facilitating and managing processes, or to lead or coordinate projects. Global influences mean that these opportunities are both national and international. For their part, clients will need to strike the right balance between managing security risk and expenditures, while at the same time recognizing that others do not always play by the rules we take for granted in Canada.

“

Partnerships are usually required because the ‘deep expertise’ in fields such as intelligence and counterterrorism is not typically resident within the management consulting community.”

30 consult magazine Fall 2013

Recent high profile terrorist incidents serve as reminders that safety and security concerns will continue to be important drivers of demand for consulting services for some time to come. The sector presents significant opportunity for consultants who understand the evolving and complex nature of the risks and are prepared to help clients respond to them in new and effective ways. While not all threats can be avoided, management consultants who are ready to take up the task can play an important role in helping clients reduce vulnerability to them. C

FOR FURTHER REFERENCE:

Public Safety Canada, National Security and Cyber Security www.publicsafety.gc.ca/cnt/ntnl-scrt/index-eng.aspx www.publicsafety.gc.ca/cnt/ntnl-scrt/cbr-scrt/index-eng.aspx Nortel Hacked http://goo.gl/OXoxX1 CSIS and Corporate Espionage www.csis-scrs.gc.ca/prrts/spng/index-eng.asp Frontline Security www.frontline-security.org Economics of Policing www.publicsafety.gc.ca/cnt/rsrcs/pblctns

TOP OF MIND ON TRAVEL Do you have an opinion, idea, or perspective that you want to share? Send in your quotes to consult@cmc-canada.ca with ‘Top of Mind’ in the subject line.

Staying at ‘under the skin’ local hotels and inns make business travel more interesting. Yes, the Marriott can be counted on as always the same. But you will miss the little details that make boutique hotels charming. However, ear plugs are a requirement and check that they have good Internet access. Terry Rachwalski CMC Front Porch Perspectives Ltd. and The Tartan Group

Fly Tuesday, Wednesday, or Thursday—this provides the best chance. Always book an aisle seat, early. When checking in, ask the attendant, “Is the flight full? Am I booked on an aisle seat?” The information she gives to these Qs will be important to your strategy of getting a double seat for a better sleep on those transatlantic night flights. Go to the departure gate and wait until everyone has gone down the chute. As you walk down the aisle, look to see where your seat is but also look for the empty double seats—target your best opportunity and sit down! No one has ever challenged me because they think this is my appointed seat! Jim Chester CMC Project Manager, President, Canadian & International Project Management Ltd

My favorite airport is Schiphol AMS (Amsterdam)… mainly because of the ease of access to ground transportation with the NS Railway under the main terminal area and very easy access to ticketing, shopping, whatever. John Glover CMC Principal, MayneStay Consulting Group Ltd

If you like flying, sit in the back row of the airplane—way more exciting… and the middle seat is often empty, enabling one to work without snoopy neighbors. Back row (often) also allows you to observe, and trust me, if you do 400—500 legs a year (and I have) you will observe a lot... Always befriend flight attendants also sitting in the back row and deadheading home from vacation. The drinks tend to flow—especially on red-eye flights and, if you're a REALLY frequent flier, getting to know the flight attendants may get you bumped to First Class on future flights. Mike Hughes CMC Partner, Advisory Services, KPMG

Use a travel checklist. You can make your own or get a free one online. A checklist will ensure that you bring important items like meeting information or medication. I suggest you create or download an electronic version that you can update and print off when needed, which will save time and effort. Kara Morgan PlanIt! Outsourcing Solutions

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HOW’S YOUR ASSET?

ON YOUR OWN… BUT NOT ALONE

BY CAROL PANASIUK

CMC CO-OWNER, THE COMMUNICATIONS DEPARTMENT

Even during uncertain economic periods, it can be a good time to start your own practice, as long as you have drive and ambition, entrepreneurial acumen, talent and skills, and a clear idea of the services you can provide that are needed by clients you can identify.

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Assess your strengths and weaknesses

Be your own back office

If you haven’t done an aptitude test since high school, now may be just the time. These assessment tools have come a long way since the ones administered by your guidance counselor. One innovative tool for uncovering your natural talents is StrengthsFinder 2.0. In this Wall Street Journal bestseller, Gallup unveils its new and improved version of its popular assessment tool. Loaded with strategies for applying your strengths, the book, plus online assessment and accompanying website, may change the way you look at yourself. It helps you identify your top five strengths, as well as recognize your lesser talents and how to work around them. Armed with these insights, you’ll be better able to determine if the independent consultant path is the one for you.

The downside of going solo is big. All the invoicing, secretarial work, filing, etc. is handled by you. You order supplies, maintain the computer, make the coffee, build the website, and answer the phone. If you detest administrative work, consider how you will deal with these day-to-day necessities or whether you can hire someone to assist you while you focus on bringing in clients and working on projects. Perhaps some support, like working in an execusuite, is a better choice for you than a home office.

Given all the uncertainties, going solo is not for everyone, nor should it be. Knowing yourself and careful planning can mitigate the inherent risks and allow you to reap the rewards. If going solo fits your personality and your goals, you will be happy you took the plunge and wonder what took you so long.

Create your roadmap Developing a business and marketing plan, a revenue and expense projection, even for a one-person consultancy, is well worth the time and effort. You have the opportunity to shape your business in the way you want – including determining what kind of assignments you will take, the fees you will charge, what you will invest in, and how you want to be perceived in the marketplace. Consider short-term goals: how do you see your business in one, five, and ten years; and longer term goals: what are potential exit strategies?

Hire the professionals you need You no doubt already know a capable accountant and lawyer who can help get your new consulting practice up and running. Through your network you will find resources for IT, logo and web design, E&O insurance, and social media. While daunting at first, once you have faced these new challenges and perhaps learned some new skills, you will actually become a more confident consultant, better able to understand and empathize with your clients.

Learn to deal with the ups and downs When you are on your own there is no steady paycheque. Some months everyone pays and other months nobody does. It is very stressful when it seems like there is no work and no cash coming in. Having the internal fortitude to carry on is a necessary component of becoming an independent consultant.

Even seasoned management consultants are often hesitant to go out on their own fearing that they will miss the support of their colleagues and the resources of the large firm. But over the years, through effective networking, you probably have contacts who would be more than happy to assist you even if it is just to bounce ideas around. Your local CMC Institute or Chapter is just the place to find like-minded entrepreneurs. Go to meetings, join a special interest group, tap into the website, on-line resources and opportunities, and get networking! You will meet with an enthusiastic and genuine response from other CMCs.

Find your niche Assuming that consulting on your own is the right path, the next step is to assess your unique skills and expertise and the demand for those in the marketplace. Who are your potential clients and how will you market yourself to them? Will you only work in your own province or will you be national or international in scope? What sets you apart from everyone else? Why should clients hire you? What else might you need to make your offering even more compelling? Clearly defining your niche will go a long way in helping you focus time and resources.

Leverage your network… you are not alone

Market yourself Some months it seems like there is nothing to do, other months are sheer pandemonium. Constantly drumming up new business is the key to smoothing out the ups and downs. But are you good at blowing your own horn? Maybe new clients will come in ‘over the transom’ but more likely you will have to be a self-promoter. Marketing your skills, getting out there and networking, and asking for referrals are a huge part of being a sole consultant. If you are not comfortable with ‘selling,’ consider taking some marketing and public speaking courses and talk to others about how they manage their sales process.

Set your standards Do you chafe at the structure and rules of a large firm? While you might think these go out the window when you are a sole consultant, they actually become more important when you are on your own. Consider the performance standards that you will set for yourself as you work with your clients. How will your clients measure your results? How will you assess your own performance? Self-imposed structure will create good habits, which will in turn drive behavior and outcomes. Discipline and an unwavering focus on your goals are essential, particularly if you are working in a home office. It’s easy to get distracted by family, friends, the fridge, and even Dr. Phil when working at home.

*Tom Rath, StrengthsFinder 2.0 (New York, Gallup Press, 2007)