Edmontonians Jun07

Call Today...

423-2020 PM 40023292

ALBERTA’S LARGEST INDEPENDENT PAGING COMPANY

Vox populi literally means the voice of the people— right or wrong—and always irresistible. Edmontonians version of the Latin phrase is a boulevardier dressed in red shoes: Mr. Muggsy Forbes, who’s held court at most of Edmonton’s see-and-be-seen soirees, over the past 14 years. Yes, you’ve loved how he covers the city like a blanket… but Edmonton no longer is a burg; it’s a metropolis at the epicenter of a much wider region. We need more coverage.

That’s why we created Vox Pop. Marty Forbes—who is not Muggsy’s father—and Mark Scholtz were invited to come along for the ride. And they agreed.

This arena of words will reflect what’s really happening today in the streets. Muggsy, Marty and Mark (M3) will find their words in overcrowded it-bars, comfortable clubhouses, business backrooms and essential charity events. Regular readers will be attracted to a compelling undertow of stories about the pillars of the community—and young blood, too— lounging on outdoor patios perfect for people watching.

Whether you vie for elbowroom on the dance floor of expert networkers or settle in at a spacious booth for calamari and cappelini with heirloom tomato salsa fresca, you’ll be seduced by the sophisticated vibes of Vox Pop. And you will be left wanting more.

Covering Edmonton like a blanket Just received an e-mail from Howard Worrell

A

couple of weeks ago Dr. Ollie and I

hosted a dinner party. We wanted to catch up on the lives of the former Deputy Prime Minister Anne McClelland and her “umer-uh” John Law. Anne’s gainfully employed at various jobs… but John is so busy it’s easier to get a picture of the snow leopard in the Himalayas than to sit him down for a chat. A senior professor in the Faculty of Law, he is currently wrapping up a law society project in Chicago.

Others were Dr. Larry and Kelay Ohlhauser, Dr. Tom and Isobel Feasby, and Marcel and Shauna Dorias.

Marcel’s company handles life insurance group benefits.

We all wanted to celebrate Larry’s new book, The Healthy CEO, and Tom’s appointment as Dean of the Faculty of Medicine at the University of Calgary. Dr. Ollie and Dr. Tom have run together Saturdays mornings for some time.

The off-the-record dinner had lively conversation with no shortage of raised voices. I can say one of Anne’s favourite moments was when she and then Prime Minister Paul Martin were invited to President George W. Bush’s Ranch and she had a picture taken with the President’s dogs, Barney and Miss Beasley.

Good company, good eats. Dr. Ollie’s cooking lessons are really paying off.

who’s retiring at the end of July after an illustrious 22-year career in the Alberta gaming industry. He was one of the founders of the Palace Casino 17 years ago, and oversaw the operation of the Baccarat Casino as well. Since 1998, they have been owned by Gateway Casinos, chaired by Ray McLean. In 2001, Howard received the Display of Excellence Award at the Canadian Gaming Summit and Exhibition.

He says that his time in the industry has been “fulfilling and enjoyable,” but admits, “In recent years, there have been frustrating times…” Strikes can cause that feeling.

One of his bosses at Gateway headquarters in Burnaby, Dave Gadhia, acknowledged that “Howard’s integrity and dedication have been well demonstrated over the past year, when faced with highly personal and unfair attacks on his character.” Hear, hear.

Move over Olympics: That charming redheaded Gold Medal skater, David Pelletier, is taking to the ice June 1st to 3rd to compete in the ProSkate Kids Go Free hockey tournament. Games start Friday evening at River Cree Resort and the Ice Box arena at Winterburn.

Last year’s division one winning team from NAIT, Collin’s Industries, is not expected to defend its crown. One of David’s teammates is Patrice Lauzon, half of the 2006 World’s silver medal ice dance champions.

The tournament draws 24 teams of 13 players with three lines of four plus a goalie; 60 minutes of play… if you can still draw breath. ProSkate’s west-end store manager Kelly Parks tells us that teams paying the $1500 entry fee include chiropractors, massage therapists, the Golden Bears, and a combo from CFCW and CISN. David’s pairs partner, wife and soon-to-be- mother of his child Jamie Sale, and Patrice’s ice dance partner MarieFrance Dubreuil will attend the evening festivities—after

their day at the spa. CISN’s Chris Scheetz will emcee the banquet for 400 people. Live auction items will include jerseys signed by some of hockey’s favourites.

Kids Go Free was started seven years ago by David Hunter and, this year, will support the healthy snack program at Mother Theresa School. Fun crowd.

Kirk Jensen is living the life of the true entrepreneur. He started Jencess 24 years ago and has grown it to an international company—a global leader doing business in over a dozen countries. Jencess creates software for the management of golf courses from tee times to accounting.

He has a lovely wife Lindsay with two beautiful children Michael and Kira, but no one was getting much time with Kirk who was so busy building the business.

Recently, Jencess was acquired by The Active Network, Inc., and it’s been a perfect blend. Active is the number one company for participatory sports and management with over 5.5 million monthly page views for education, bookings and league play. It’s a very aggressive company that had talked to Kirk for over a year before he finally said yes. He related to the management team whose history included making it through the tough times of the dot com days as Kirk had. Active is a strong worldwide organization with head offices in San Diego, CA and Burnaby BC.

Don and Marion Wheaton are an extraordinary couple whose generous contributions to our community are inspiring. They have raised their entire family with the belief: “strong families… strong community.” Don and Marion have also been friends to the State of Israel through their support of the Jewish National Fund of Edmonton.

The Negev Gala Concert on Thursday, June 14th at the Winspear is a tribute to the Wheatons as outstanding

EDMONTONIANS JUNE 2007

2

4

Proof__ _________PROOFED BY:_______________________________________________CHANGES MADE:__________________________DATE:_________________

community leaders and philanthropists. The gala co-chairs are Justice Doug Matheson and Abe Silverman. The proceeds will go to the youth education program, established by Don and Marion, to help children in need in Israel. For tickets, call 481-7881.

You may have seen an item in the papers about Mel-O, a domestic short hair cat from Morinville that was inducted into one of Canada’s longest running pet recognition programs, the Purina Animal Hall of Fame.

Mel-O climbed a five foot ladder to wake nine-year old diabetic Alex Rose, essentially alerting him and his mother to his dangerously low blood sugar levels.

Thanks to Mel-O, Alex was able to take insulin and avoid diabetic shock.

This is a great segue to update readers on our miniature Schnauzer, Sylvie. She almost died about a year ago and was saved by the excellent work of the Veterinary Emergency Clinic staff. She’s almost 17… we don’t go on walks so much as we do “carries” to the little park close by so she can relieve herself. I never thought I would be buying nappies at my somewhat advancing age, but doggy diapers are a night-time godsend. It’s a lot like having an 87 year old aunt living with you. Sylvie eats baby food and mini dog biscuits. In spite of being both blind and deaf, she gets around the condo, hardly ever bumping anything. We worry and wonder about putting her down, but she doesn’t seem to be in pain and appears happy enough.

We don’t know if we’re putting off the inevitable day for our sake or hers. Truth is, we love Sylvie dearly— the extra effort is worth every minute.

I wrote this item for my column on May 21st and have chosen to keep it in the present tense as a tribute to Sylvie.

It is with a heavy heart that I inform you that she passed away at 3:30 am on May 27th. We want to thank the staff of the Edmonton Veterinary Emergency Clinic— particularly Dr. Rupy Khehra and technologist Liz Hoekstra—for their kindness and thoughtfulness toward Sylvie, Dr. Ollie and me. It was a very tearful weekend and we’ll miss the patter of her little feet everyday. We’ll always love you, Sylvie. I sure hope that you’re young and frisky again in Doggy Heaven. √ Call Muggsy Forbes at 780.482.4545 or e-mail mforbes@edmontonians.com

I

’m one of those proud Edmontonians

who is now in the minority. That’s right, I was born and bred right here in River City.

Being a civic-minded person, I note that having a magazine that is Edmonton in its full scope is a rare treat these days. I say that respectfully because consolidation is changing our media landscape at a rapid pace. We’re getting less and less Edmonton on our radio and television stations, and in our newspapers and magazines.

We often joke about Toronto being the “centre of the universe” but that’s exactly where most of our media outlets are now headquartered.

To realize the importance of this paradigm shift, I think it’s wise to chronicle and respect some of the past greats who pioneered local media operations.

The late Dr. G.R.A. “Dick” Rice began building Sunwapta Broadcasting/CFRN radio in 1934 and CFRN TV in 1954. Recently, they became part Bell Globemedia— now called CTVglobemedia—and part Standard Radio.

Standard’s owner, Allan Slaight, who started in the old Sunwapta log cabin on Stony Plain Road, just became a billionaire when he sold to Astral Media, based in Montreal.

That means The Bear, EZ Rock and The TEAM 1260 Sports Radio—where I hang my hats as VP and general manager—are now Astral-owned.

My late father, Jerry Forbes launched CHED in the early 1950s with Slaight as his news director…

Edmontonians founder Dick MacLean was one of his reporters.

The total talk station is now owned by the giant Corus operation, jointly managed from Toronto and Calgary.

CHQT is also part of Corus and everybody in the media knows and Jerry Forbes respects Lou Roskin for his work at QT in the 1960s. Ditto CISN, started by legendary CHED announcer Bob McCord.

In its formative years, K-97 was operated by a number of well-known Albertans, most of whom are no longer with us. Now called K-ROCK, it was acquired by NewCap, based on the East Coast.

Colourful Harold “Hal” Yerxa founded CFCW in Camrose in the mid ’50s—long before it moved into Edmonton, but retained its country roots—and hired Dick MacLean as a news reporter, not long before he moved to Edmonton. Yerxa also put Big Earl/96X/Mix96/Lite 96 on the air. All are now owned by NewCap. I actually launched JOE/Power 92 in 1982—alas now part of the Corus network—while I was with the MacleanHunter group, that large Toronto publisher.

In the beginning, Global was ITV, earning local surgeon and financier Dr. Charles Allard new-found fame in the broadcast industry. These days, Global and the Edmonton Journal are among the outlets that form the CanWest empire, owned by the Asper family from Winnipeg. The Edmonton Sun is managed back east by Sun Media Corp, a Quebecor company. After many years of “local” publishers who embraced the spirit of the city throughout the past several decades, Edmonton’s dailies take a lot of their editorial direction from afar.

A Channel was at least put on the air by Craig Media, with western roots in Calgary and Manitoba. It became Citytv when it was sold to Toronto’s CHUM. Now manager Craig Roskin, son of Lou, awaits the CRTC decision on a take-over by CTVglobemedia, also from Toronto.

So, in a long and round-about way, my compliments go to Sharon MacLean and her team for being a truly locallyowned, locally-run, locally-focused medium that is highly important to the people in the Greater Edmonton area.

The magazine is so much more than entertainment. It’s about people— the people who make our great city click on so many levels.

Without Edmontonians magazine, it’s quite possible that much of what you read, view and hear are opinions, editorial thrusts and news directions determined, written and/or produced far, far beyond our city Sharon MacLean limits.

With the current boom changing the landscape in our city so quickly and so dramatically, I really think it takes an Edmontonian to relate the impact the boom is having on our residents—not somebody sitting in an ivory tower on Bay Street in Toronto. √ Marty Forbes is VP and general manager of The Bear, EZRock and The TEAM 1260 Sports Radio. Contact marty@edmontonians.com

where I recently caught Johnny McCuaig’s CD release party for Vita. The night was dandy. Funkafeelya and the Celtic Ceilidh Dancers were also on the bill. Johnny describes Vita as “true stories and unbelievable happenings about the band in the last five years.” True, indeed—the song Neverland is about one of their promoters who got arrested on major drug-related crimes.

According to Johnny, “he won’t be seeing any bands for a long, long time unless they play in the pen”. I like Vita—somewhat of a departure from his other CDs... and more musically mature. Check out jmccuaig.com

Eddie Shorts—interesting name for a new pub in town. Publican Peter Bell has opened this little gem on 107th Avenue and 124th Street, and promises entertainment soon. Interesting decor, too: mounted moose head and wooden interior. I think Peter got the chairs from Earls Tin Palace—those giant shiny metal numbers that look great but take two grown men to move.

Other activity on 124th Street: The burned out Grinder is being re-built... and Rosie’s Bar & Grill fell victim to the wrecking ball.

My dear old friend Don Marcotte, production supervisor at CKUA Radio and one hell of a bass player, called me not long ago. No hello... no how are you... nothing. Just, “Scholzie, you’re going to see the Derek Trucks Band, right?”

Derek Trucks is a 27-year-old guitar phenomenon. He plays in the Allman Brothers Band, and recently toured with Eric Clapton, although he didn’t play for the Edmonton show. His uncle is Butch Trucks, an Allman Brothers Band founding member and drummer. To me, Derek has the spirit of Duane Allman and the grit of Dickey Betts. But, he’s better than them combined. I caught him a few years back and he is amazing.

The Derek Trucks Band will bring their thick soul to Festival Place in Sherwood Park on June 26th. To see him in such a good venue is rare. A complete sellout—if you have strings to pull, do so. If you want to hear the DTB, call CKUA and request a tune or two.

Finally, golf season is here. Thanks be to God. Looking forward to continuing my quest to break 90— actually it’s 100, but who’s counting? So many golf tournaments... so many worthwhile causes... so many charities to support... so many steaks to enjoy. I am honoured to host a few of them.

Get in the swing at Edmonton Opera’s 12th Annual Golf Classic. Proceeds assist the the ESO in bringing us world class talent, and help the student dress rehearsal initiative.

Shotgun start at 1:30pm on Monday, June 11th. Contact Laura Young at 424-4040 ext. 233 or email at devassociate@edmontonopera.ca. Having hosted this event in the past, I assure you it’s a classy affair... and any chance to golf the Northern Bear is a good thing.

Speaking of the Bear... not to brag but Steve Antle, Dr. Gabriel Cahill, some other duffers and I won the very first charity golf tournament held there. It was in support of the Nelson Mandela Children’s Fund. How did we win? Other than Dr. Cahill’s unbelievable golf adroitness, a fistful of mulligans didn’t hurt.

Whenever Jackie Parker hit the links, he’d say,

H

aving been around television/

radio/stage for the better part of my adult life, I have done some amazing things.

Wrestling with two midgets one morning on The Big Breakfast Show with the former A-Channel comes to mind.

I am honoured to have been asked to write for Edmontonians. In a world of media merger mayhem, it is nice to be involved with an independent voice. So please bear with me as I find my way. I hope to explore life around us with this column, and interactivity is vital.

E-mail lines are now open…

Being a musician—a drummer, at that—I will always dig taking in live music. A tear was shed when the Sidetrack Café was knocked down... and more when the new Sidetrack shut its doors. I know it’s about business and so-called progress but, now that summer is here, don’t you miss sliding on down 112th Street to the ’Track?

There are still great venues to see live music in town. One is On the Rocks on Jasper and 117th Street

“Where is the first tee box and what is the course record?”

A new tradition is in the making that honours his love of life and incredible spirit. The first annual Jackie Parker Memorial Golf Tournment will be held on Thursday, August 23rd. Edmonton Eskimos equipment manager Dwayne Mandrusiak called to see if I could host the golf tournament. No hesitation on my part—the chance to pay tribute to one of the greatest football players ever, a true legend. I’ll let you know which charity has been selected to benefit from the event. Dwayne had no problem attracting Eskimos alumni, including Tom Wilkinson, Gary Lefave, Eric Upton, Todd Storme, Bob Clarke, John Farlinger, Brian Dickinson, Jack Parker Jr. and Herb Dobbins, plus Shona Wards and other sports greats and fans to get involved. The event sold out as fast as Jackie could throw a game-winning pass.

Edmonton’s loss: Long time television producer Kelly Banks has moved to Nashville. She worked at AChannel on the Big Breakfast Show when I was there, and went on to produce Breakfast Television for Citytv after the station was bought by CHUM. She and her husband Jason Samograd have opened a spa in Music City, USA. Kelly helped entertain and inform this city and region for many years. And she did it from her heart with nothing but class.

If you‘re ever in Nashville, check out Bodyworks Emporium. I’m sure Kelly and Jason would welcome visitors from home. √ Mark Scholz, owner of MES Communications Inc. offers a variety of services including production, creative & entertainment. For more information or to suggest a story idea, email mscholz@edmontonians.com

EDMONTONIANS JUNE 2007

5

Proof__ _________PROOFED BY:_______________________________________________CHANGES MADE:__________________________DATE:_________________

3

CELEBRATING

Poll

STATION 18 YEARS

With Linda Banister

O

n April 1, 2007 new legislation came into effect that allows pharmacists in Alberta to expand the scope of services they offer. Perhaps the most significant change is that pharmacists now have the authority to prescribe drugs in partnership with other health professionals, after a diagnosis or decision for treatment has been made. Pharmacists can adapt a prescription (e.g., use a liquid form instead of a tablet), prescribe in an emergency, or manage ongoing drug therapy. In this month’s Poll Station, we asked people about their interactions with pharmacists and their awareness about the roles of pharmacists.

WHY DID YOU VISIT A PHARMACIST IN THE PAST YEAR?

Percentage

97%

56%

Said they visit the pharmacist to obtain a prescription.

Said they visit the pharmacist to seek advice about nonperscribed medications.

55%

Said they visit the pharmacist to seek additional advice about their perscribed medications.

To begin, survey participants were asked to describe the kinds of interactions they have had with a pharmacist over the previous year. Not surprisingly, 97 percent visited a pharmacist to obtain medication prescribed by their doctor or another health professional. Just over half (56 percent) visited a pharmacy to ask questions or seek advice about nonprescription medication. A similar proportion (55 percent) sought additional advice about medication they had been prescribed. One-quarter of respondents visited a pharmacist to safely dispose of old or unused medication.

Percentage

WHAT DO YOU CONSIDER TO BE THE ROLE OF PHARMACISTS?

59% 57% 51%

Suggested pharmacists provide people with sufficient information about the proper way to use their medication

Suggested pharmacists evaluate people’s prescriptions ensuring that the proper drug has been prescribed for the proper reason and in the correct dose

Suggested pharmacists check for interactions between drugs and the impact of medications on allergies

Respondents were then asked to describe what came to their mind as the role of a pharmacist, unaided by the interviewer.

Fifty-nine percent suggested pharmacists provide people with sufficient information about the proper way to use their medication. A similar proportion (57 percent) indicated that pharmacists evaluate people’s prescriptions ensuring that the proper drug has been prescribed for the proper reason and in the correct dose. Over half (51 percent) said pharmacists check for interactions between drugs and the impact of medications on allergies.

Next, interviewers described the various roles of a pharmacist to survey participants and asked if they were aware that these elements were part of a pharmacist’s duties. Almost all—97 percent—knew they were to provide people with sufficient information about the proper way to administer medication.

Ninety percent knew they explain what to expect when taking medication, while 82 percent were aware pharmacists check for interactions that may occur with other drugs, foods, or allergies.

About three-quarters (76 percent) knew they evaluate the prescriptions to ensure the drug is appropriate and in the correct dose, while more than two-thirds (68 percent) were aware their role is to confirm personal information to ensure the accuracy of health records.

ARE PHARMACISTS IMPORTANT TO YOU HEALTH? Finally, respondents were asked to indicate the importance of pharmacists in relation to their overall health care. Over twothirds (68 percent) said pharmacists are highly important while 11 percent rated pharmacists as being of low importance in terms of their overall health care. In keeping with that mindset, 79 percent thought it was important to develop a relationship with a particular pharmacist so that he or she knew them, their history, and their current medications.

The Poll Station surveyed 100 City of Edmonton residents on the topic and, while the results of the research are not statistically reliable, they do provide a qualitative indication of what Edmontonians are thinking. √ Linda Banister is a certified management consultant and the owner of Banister Research and Consulting Inc., a full service provider of market research and program evaluation services. Want a question included in the Edmontonians Poll? Contact Linda at 780.451.4444 or e-mail at lbanister@edmontonians.com.

Visit www.banister.ab.ca.

FOUNDER DICK MacLEAN

Vol. XVIII

JUNE 2007

No. 6

SHARON MacLEAN Publisher and Advertising Director Telephone: 780.482.7000 Fax: 780.488.9317 e-mail: info@edmontonians.com edmontonians.com

INSIDE VOX POP Muggsy Forbes . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 Marty Forbes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3 Mark Scholz . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3 POLL STATION Pharmacists/Banister . . . . . . . . . . . . . . . . . . . . . . . .4 LEADERSHIP Managed leadership/Hill . . . . . . . . . . . . . . . . . . . . .5 INTERNATIONAL BUSINESS REPORT Game on Edmonton/McHugh . . . . . . . . . . . . . . . . .6 Oiling business/McHugh . . . . . . . . . . . . . . . . . . . . .8 New immigration/Deters . . . . . . . . . . . . . . . . . . . . .9 The Dutch are coming/Lauber . . . . . . . . . . . . . . .10 Bavarians on business/Lauber . . . . . . . . . . . . . . . .12 MAKING MONEY Beanstock growth/Hiebert . . . . . . . . . . . . . . . . . . .14 THE TRANSFORMERS Sublime opening/photo feature . . . . . . . . . . . . . .15 BIZINTEL BizIT/Michetti . . . . . . . . . . . . . . . . . . . . . . . . . . . .16 Civic Buzz/Norwood . . . . . . . . . . . . . . . . . . . . . . .16 Media Minute/Hogle . . . . . . . . . . . . . . . . . . . . . . .17 INTERNATIONAL BUSINESS Exploring the linkages/Lockhart . . . . . . . . . . . . . .17 EDMONTONIAN IN EXILE Transfats/Edmondson . . . . . . . . . . . . . . . . . . . . . .17 LIVELY LIFESTYLES MenuMagic/Berry . . . . . . . . . . . . . . . . . . . . . . . . .18 Absolute Bodo/Bodo . . . . . . . . . . . . . . . . . . . . . . .18 BARB DETERS Editor

editor@edmontonians.com COLUMNISTS Linda Banister John Berry Linda Bodo Tom Bradshaw Les Brost Janet Edmondson Marty Forbes Muggsy Forbes Steffany Hanlen Ron Hiebert Bruce Hogle Cheryl Lockhart Greg Michetti David Norwood Erin Rayner Mark Scholz Nizar J. Somji FEATURE WRITERS Barb Deters Don Hill Rick Lauber Peter Drake McHugh Michael O’Toole Marg. Pullishy PHOTOGRAPHERS Terry Bourque GRAPHIC PRODUCTION Rage Studios Inc. INFORMATION TECHNOLOGY Michetti Information Solutions Inc.

THIS MONTH’S COVER

Hear no evil... see no evil... speak no evil?

Marty, Muggsy and Mark kick off Vox Pop— it’s all good! Photo by Terry Bourque Published by 399620 Alberta Ltd. on the first day of each month at 333, 10240 - 124 Street, Edmonton, Alberta, Canada T5N 3W6. ©All rights reserved. No part of this publication may be reprinted or reproduced in any form without written permission from the publisher.

Manuscripts: must be accompanied by a stamped, selfaddressed envelope. Edmontonians is not responsible for unsolicited manuscripts.

All stories Copyright ©Edmontonians Publications Mail Agreement No. 40023292 Return undeliverable Canadian addresses to: Circulation Department 333, 10240 - 124 Street Edmonton, AB T5N 3W6 Email: info@edmontonians.com

EDMONTONIANS JUNE 2007

4

4

Proof__ _________PROOFED BY:_______________________________________________CHANGES MADE:__________________________DATE:_________________

Managed Leadership

By Don Hill

M

uch of what a leader says and does these days is stage-managed for public performance. You have probably heard it described as ‘spin control’. Frankly, in my view, it’s mindless trash. But the conventional wisdom says if you want to be on top, you must square with the public’s perception of what a leader ought to be saying on this or that issue… that the face of leadership must be likeable, media-friendly, charismatic. And perfect in every way.

Suppose for a moment that this strategy actually works.

Does that make for effective leadership?

“I think that charismatic leadership is vastly overrated and fundamentally destructive,” said Michael Percy, Dean of the School of Business at the University of Alberta. A public policy economist by training and veteran of provincial politics, Dr. Percy has been inside the minds of leaders at the federal level—politicians who have left their mark on the country. He takes a dim view of leaders who exploit charm “because what will often happen is very little will survive, in terms of successors and independent action behind the charismatic leader.”

Citing examples such as the political legacy of Pierre Elliot Trudeau and Brian Mulroney, “with charismatic leadership, often what you get is more of a cult of personality,” Dr. Percy complained, “as opposed to an organization that is working together to achieve a common purpose.”

“Leadership for me in the 21st Century is a function,” said Ruben Nelson, one of Canada’s pioneers of serious thinking about emerging trends and the future. “The

Pierre Elliot Trudeau function of leadership is to understand the changing context—political or commercial or whatever... to Brian Mulroney understand that well enough to know if the life of the organization is relative to that context.”

Nelson makes a good point: It doesn’t matter if you think of yourself as ‘the one who must be obeyed’ because shifts in the social, political and business environment will ultimately determine if your style of leadership can survive.

“When you’re working at senior levels, leadership takes

Spin control—mindless trash place at every level,” said Charlie Fischer, president and CEO of Nexen Inc, a Calgary-based petroleum company with operations around the world. Nexen is heavily involved in the Alberta oilsands, and is considered one of the major players. “It is not one guy at the top that’s the leader and everyone else is a follower. You’ve got to have leaders at every level. They are the people who make things happen at the front lines.”

SPOT THE WALDO Let’s do a little experiment: Imagine yourself in a room full of people. People you have never been with before. Look around. Who’s the leader? And who isn’t?

“Leadership is a myth,” said Janice Calnan, an Ottawabased management consultant, gesturing toward Parliament Hill, a stone’s throw away. “I have asked teams to take that question on and they come back with lists that fill flipcharts.”

Leading is doing, Calnan observed in her book Shift: Secrets of Positive Change for Organizations and their Leaders. It is about getting your hands dirty and having the “courage to be straightforward,” she nodded knowingly.

“And that does take courage.”

Henry Mintzberg admittedly has a narrow view of leading, “which is that it is just part of managing, which is not very fashionable these days.” Dr. Mintzberg is in the Cleghorn Chair of Management Studies at McGill University in Montreal. He is recognized worldwide as one of the leading commentators on management, and has written many highly-regarded books on the subject. “You are supposed to separate leaders from managers. But you know managers that don’t lead are pretty uninspiring. But leaders that do not manage don’t know what’s going on.”

Noting that Amazon lists over nine thousand books on leadership “and two on follower-ship,” Dr. Mintzberg is averse to the ideal of a “great one riding on the white horse,” and instead celebrates something he calls justenough-leadership.

“I have a suspicion that great leaders are just ordinary people who don’t have a lot of neuroses,” he quipped sardonically. They “seem heroic,” because “decent leaders are just ordinary people that aren’t screwed up.”

REAL POLITIK The 21st Century is well into its first decade. Yet, it seems that everything bad about the 1990s—the political scandals, the spectacle of corporate leaders trotted off to jail—still lingers. True, there has been a major change in the way business is policed; the rules of the game are more strictly enforced. But in politics, you would not be wrong to think it is business as usual.

“A lot of who gets into power has to do with who can blackmail whom,” said Cleo Paskal, an associate fellow at

Chatham House, the Royal Institute of International Affairs in London, England. She gets paid big money to ‘tell it like it is’ to clients around the world. “When you get to highlevel politics, there is an enormous amount of threats and blackmail and bribery—that’s just the way things work— that’s what I analyze.”

Paskal’s clients include governments, multinational corporations and international investment houses that need to know the back-story, the levels of threat and intimidation and “what that might mean to national security issues.” At the moment, her analysis is focused on the affects climate change will have on world governance. “It’s not going to be pretty,” she said.

TRUTH TO TELL “All of the major political parties are saying elect us and we will give you a better version of the path we’re already on,” Ruben Nelson noted, taking into account the present economic boom in Alberta. “Canada doesn’t get it yet that we are literally living in the last decades of an industrial culture.” While the signs are everywhere and seem patently obvious to anyone who cares to look, recent political history is equally instructive for those in the know.

A generation ago, Kim Campbell, for a short time the prime minister of Canada, spoke with utter candour during an election. She told the nation what she thought it needed to hear. The media pounced. The electorate not only voted Campbell out of office, it literally wiped the federal Progressive Conservative party off the political map. It is a lesson that some point to, myself included, as the genesis of Kim Campbell the ‘spin doctor’ in Canada, the handlers that manage every move and murmur made by political leaders in their charge.

Is managed leadership appropriate for an era of climate change? √ Don Hill is a ‘thought leader’ at the Leadership Lab and Leadership Development at the Banff Centre. He is also an award-winning writer and broadcaster with a large footprint on the Internet. Listen to his radio series Inspiring Leadership, a 20-part documentary on contemporary leadership and the challenge of leading in the 21st Century every Saturday morning at 8 AM on the CKUA Radio Network.

For more details visit: www.ckua.com and www.appropriate-entertainment.com

EDMONTONIANS JUNE 2007

2

Proof__ _________PROOFED BY:_______________________________________________CHANGES MADE:__________________________DATE:_________________

5

INTERNATIONAL REPORT

BUSINESS

Game on,

Edmonton After years of going calling—hat in hand— we’re finally being courted

By Peter Drake McHugh

J

une could be like no other for the Edmonton region. It could be the June of our dreams.

A confluence of political will and a rush in resource economies—such as we are experiencing in Alberta—is bringing foreign investors, ambassadors, politicians, provincial economic development officials, industry leaders, high commissioners and consuls to our door step. Hard work from Edmonton’s consular corps could create the breakthrough the region needs to be less dependent on the single American market and begin to truly play with the international community. It’s the Edmonton International Business Expo and it’s about the business of doing business, making contacts and getting to know the larger worldwide market.

It is not that the region hasn’t enjoyed recognition in the past but it seems that increasingly Alberta has a cornucopia of assets that are now (finally) garnering worldwide interest for what it has to export and what it needs to import. This is the future for Alberta and in June Albertans will get to meet and greet with the world of global business and maybe—just maybe— close a deal or two. But you’ve got to be fast, very fast.

While the event does promise to be a barn burner, it only runs from June 6th to 8th. What it lacks in duration, it makes up for in intensity. Edmonton is fortunate to have a group of dedicated individuals who

are not necessarily citizens of, nor even ethnically connected to, the country each represents as an honorary consul. When Mayor Stephen Mandel took office in October 2004, he immediately recognized the importance of this group and began to fétè them as a way to get the Edmonton region’s story out to a busy world economy.

Under the previous mayor, Project Germany was the

Golden Child but it did not always bring the results expected. One German company’s arrival was announced three separate times and it still hasn’t graced us with its presence nor put a shovel in the ground.

Such is the limited world of eggs in baskets. Germany is back, but so too are a number of other economic and trade partners hoping for that most elusive of economic goals: the perfect match.

In May 2005, Mayor Mandel hosted the honorary consular corps at a successful, two-day business expo

EDMONTON INTERNATIONAL BUSINESS EXPO It promises to be a United Nations of business with corporate and diplomatic representatives from more than 30 countries expected to attend. They include Austria, Belgium, Bolivia, Cote d’Ivoire, Czech Republic, Chile, China, Denmark, Finland, France, Ghana, Germany, Indonesia, India, Ireland, Jamaica, Italy, Korea, Netherlands, Philippines, Poland, Portugal, Singapore, Slovakia, Sweden, Thailand, Tunisia, Trinidad and Tobago, Ukraine, and the United Kingdom.

For further information and to express interest in the Edmonton International Business Expo, contact the Mayor’s Office at 496-8100. and tour of local and regional facilities. This year a second round of meetings grew out of that effort, and have been timed to coincide with those the province hosts every year for ambassadors, heads of mission, and consular corps from throughout Canada.

It gets more Mayor Mandel hosted 55 interesting. By happenstance, the representatives of the Northern Alberta Mayors consular corps during and Reeves’ Caucus is the first international scheduled to meet at the Business Expo in 2005 same time. It consists of 98 municipal leaders who meet to identify issues that affect their cities and towns—issues such as economic development, tourism and rural development. For the first time, en masse they will be joining the internationally-focused event… which could offer some interesting pairings of national representatives with provincial, regional and small town Alberta. Whatever the outcome, the object should be to meet and greet,

and make the contacts that can be used as a lever to increase awareness of the myriad opportunities available in what some argue is a sometimes forgotten part of the province.

According to the Mayor’s office, there will be a detailed economic briefing by the City with presentations from the Edmonton Economic Development Corporation. The Alberta government has arranged for heads of mission to travel to the Fort McMurray region for a tour of the massive oilsands operations. And, to put the point across that Alberta’s regions are interdependent, the group will go to Fort Saskatchewan for a tour of Canada’s largest petrochemical centre… and to Leduc-Nisku to view Canada’s largest oil field supply centre and tour Alberta’s unique food processing innovation centre.

They’ll learn more about the University of Alberta, NAIT and the community college system amongst other things that are commonly accepted as excellent sources of education in the province, but sometimes surprise visitors with their depth of community and business involvement.

Then the guests participate in a trade show at the Shaw Conference Centre. Here they will have the opportunity to display their country’s goods and services, and to showcase tourist destinations and highlights.

INTERNATIONAL PRIORITIES Everyone has a favourite. The Mayor’s office is investing manpower in a China desk at City Hall, while Edmonton Economic Development favours the United Kingdom. Other municipalities all have big plans for new development, new tax dollars and markets.

However, for this occasion, at least everyone has a common goal: build that contact book that is so necessary when chasing the golden ring… and, for heaven’s sake, try to present a united front. Anyway, that’s the plan.

There is much to compete for: Edmonton’s annual economic output—approximately $42 billion—is greater than six of the 10 Canadian provinces, and almost equal to the combined GDP of Nova Scotia and New Brunswick. Boomtown is ripe and everybody wants to go picking. This is a cow worth milking, and a world hungry for secure oil and the offshoot businesses it supports has now coming calling. Edmonton has been one of Canada’s top two growth regions, on average, since 1996. Because this oil boom is being fuelled by new demand in China, India and elsewhere, economists say that for now the oil shocks of the 1970s, which collapsed energy prices worldwide, are less likely. Still, the smart money looks for diversity.

In 2007, Edmonton is host to the World Curling Championship and the FIFA World Youth Soccer… and EDMONTONIANS JUNE 2007

6

3

Proof__ ________PROOFED BY:_______________________________________________CHANGES MADE:__________________________DATE:_________________

Zane Kroll Photo

the Universade Games return in 2011. The city is often seen to be the envy of other cities, given its performing and visual arts festivals literally throughout the long summer days.

According to with EEDC, these events are important to distinguish us from any number of other jurisdictions. Edmonton is Canada’s 2007 Cultural Capital. Though not a favourite of the provincial government (under whose authority cities come), a healthy arts community contributes millions to the city each year and visitors come from distances for the Works, the Folk Fest, and the Fringe Theatre which is second largest after Edinburgh. When you trade in the world, culture is sometimes an important linchpin to closing the deal.

The delicacies of the political minuet are not lost on John Szumlas, the Honorary Consul of the Republic of Poland and a principal of Activation Analysis Group Inc.—no stranger to controversy or promotion. Today, he’s involved in the latter. As chair of Edmonton’s International Business Expo, you might guess that he is thrilled at the expected turnout. You would be right.

He takes his responsibility as honorary consul seriously. “From a personal standpoint, there are 138,000 Albertans of Polish descent here, many of them with dual citizenship… and, for instance, when they need a machine readable passport, we get to meet a lot of them.” But, Szumlas says there is far more involved.

In the case of Poland, Northwest Industries manufactures telephones and Poland is well respected for some of the best electric motors in the world. There are a number of other Polish companies looking at reciprocal training, education and culture. “A consular presence in Edmonton shouldn’t be taken for granted,” he argues, pointing out that Mayor Mandel and his Council “have been very supportive in helping us get the Edmonton region’s message out there. I think the Mayor tossed us a challenge and it appears to be going well.”

Szumlas is a bit wistful. While 28 nations are represented in Edmonton, Calgary has 45 Consuls and, in this the province’s Capital City, only 24 of the current counsel positions are filled. Still, he is relentlessly optimistic.

“We don’t want—and we don’t deserve—a reputation of being hewers of wood and drawers of water. We are leaders in pharmaceutical health and nanotechnology and a number of other fields… We must stay focused to get our message out.”

Honorary Consuls George deRappard and John Szumlas

His business partner, former deputy minister of both economic development and executive council George deRappard, made wise by years of political eddies and storm fronts and now Honorary Consul for Belgium, is preparing for the arrival of Belgium’s Ambassador to Canada from Ottawa. “Belgium is one of Alberta’s top 10 export countries. We send wood products and petroleum by-products and there is technology

interchange. Belgium is important to us… important to trade.” He remembers in the 1980s when business went chasing the Asian Tiger economies of Southeast Asia, and Europe was forgotten. “Economic promotion takes time to build investment… so that the end result has been there is less happening between Europe and Alberta. Sometimes, it’s a better idea to watch where the pack is going and go the other way,” he says wryly.

“This is an invitation of the city and consular corps with backing and commerce opportunities—business should be very interested and involved,” deRappard urges.

STRENGTH IN NUMBERS When you talk with Myron Borys, vice-president of economic development with EEDC, the chain is unbroken. There is not only enough business to go around, he argues but there are also a number of pluses when partnering with regional governments. “There’s no question from the Mayor on down, we understand the entire region is successful or will be less successful depending on cooperation. That’s why, for this Expo, the Mayor’s office liked the idea of Fort Saskatchwan and Leduc, who are big players in our region, having a greater opportunity to participate.”

“It’s the Edmonton region,” stresses Borys, “and we are stronger together.” EEDC is primarily looking at bio and nanotechnology, key opportunities in

Shell upgrader at Scotford manufacturing and processing. He notes that cooperation in the region is not something new with Spruce Grove and Leduc.

But he does point out that two-thirds of the population live in Edmonton but revenue is only up one-third and that must be solved.

He’s encouraged, however, knowing that, when it comes Greg Krischke to self-interest, the region comes together well.

Our neighbour to the south, Leduc Mayor Greg Krischke, is an unabashed supporter of the Edmonton International Business Expo. “It’s a symbiotic relationship,” he says. Leduc County and others in the region are in sync with Edmonton. Nisku is home to the largest oil field service business park in North America, second only to Houston in oil and gas servicing. It’s twinned with Grimma, Germany, near Dresden… and has always looked worldwide for business opportunities.

When Krischke travels on business, he identifies himself as being from Edmonton—but there is pride in his voice when he mentions that Nisku would be recognized by the oil community in Texas.

“We cannot operate completely on our own in a global economy. The Alberta Food Processing Development Centre is here and we have a plan. We’re looking for value added exports. Whether we’re going to China, Japan, Europe or wherever, we want the products to be developed here. We need to be looking at the horizon and we need critical mass of the region in order to compete internationally.”

There is caution in Krischke’s voice, but hope too.

“Sixty-five percent of our companies export. We have learned since the National Energy Program. If work disappears this time, we can go to the North Sea or Saudi Arabia or China.

“China is big: In the next decade, 300 million people will move from rural to urban areas. I was outside Hong Kong in 1999 in a fishing village of 20,000 people. Six years later, the population is five million.

India too is on the radar screen. It’s a wakeup call to be as competitive as you can be. This is an opportunity to look outside North America.”

Final words? “We are part of the Capital Region and we feed off that and how it works in the global economy. It is impossible to be totally independent and to get the best return for your investment… you simply can’t compete.”

I catch up with Mayor Mandel between city social events on an active weekend of flipping hamburgers and pressing flesh in Canada’s most divided regional area. He is pumped on a topic Edmontonians are familiar with. Like a morning trout, he is quick to rise to the fly. If you don’t want to know the answer, you probably shouldn’t put the question to him.

“In the 1980s, I remember the bumper sticker in Edmonton that said something like; ‘Please Dear God gives us another oil boom and this time we’ll try not to piss it all away.’ Well, here we are.

“If we don’t work together, everyone can do well in a boom economy,” Mandel says, referring to the Capital Region’s 27 mayors and reeves who are all looking for a rocket to wealth. “But, if we work together everyone can not only increase wealth in a booming economy… but the important thing is that, when the boom is over, the region can still do extremely well.” He also reminds me that, if no change comes, growth will be hindered and “in 20 years, we’ll look back and wonder why all the development, all the jobs went to Chicago and Houston. We must diversify and work together.”

Mandel thinks the message may finally be getting through to the heavily rural cabinet of the current provincial government and to representatives in the region as well. “At the last meeting we had, 17 mayors stayed at the meeting and five walked out. They didn’t do their constituents a favour. Believe me, there is plenty of competition out there without the region competing with itself… We need a plan and we can’t afford to fritter away yet another opportunity. We can’t go on living in the past—that’s over. I’m not saying Edmonton should alone decide how to share services or revenues… what I am saying is we all have to sit down and figure out the way forward.”

His sights are already set on the Pacific Ocean deep water port of Prince Rupert soon to be competing for world trade with Los Angeles, San Francisco, Seattle and Vancouver. The result means Edmonton is the natural trucking and railway path to eastern Canada and the huge markets of the American mid-west and south.

“Probably, it won’t be as big as oil,” Mandel admits, matter-of-factly, “but it will be here through economic ups and downs and it has the potential to provide prosperity for the region. Seventy percent of the regional population can’t continue to subsidize the other 30 percent.”

As quickly as he rises to the bait, Mandel turns tack. “The consular corps is our way of reaching out to the world and letting them know of the opportunities here. The cooperation we have for this event is remarkable. Everyone is aware that diversity is important and that a number of the decision-makers attending are not familiar with what our region has to offer. It’s why we have Fort McMurray and Fort Saskatchewan, Leduc and many other communities fully involved.

“This is a window on the world and we’re all looking forward to doing business.” √

EDMONTONIANS JUNE 2007

3

Proof__ _________PROOFED BY:_______________________________________________CHANGES MADE:__________________________DATE:_________________

7

Oiling Business opportunities

GLOBALLY

By Peter Drake McHugh

T

College—one of Canada’s premiere he Alberta government sees itself as a key player in helping agriculture schools—in creating links with institutions and businesses in Asia. The Alberta business, people, Consulting Engineers of Alberta went in educators, researchers and another direction: It received help linking cultural promoters reach their counterparts with labour and business markets in the around the world. Inclusion of the United Kingdom.

Edmonton International Business Expo Then there were 157 trade shows activities as part of its annual June meetings to update the foreign diplomatic community focusing on agriculture and food, advanced industries and energy primarily in Asia, on the opportunities for involvement in Europe and, Alberta’s traditional market, the Alberta’s economy is among its new United States. initiatives.

Alberta has 10 international offices in key markets around the world as well as three WHAT DOES IT ALL ADD UP TO? sector-focused trade branches: agriculture According to Alberta Employment, and food, advanced industries, and energy Immigration and Industry, export value has industries and services. The offices are in increased by almost 40 percent compared to Hong Kong, Germany, Mexico, Japan, five years ago, now totalling $89.2 billion Republic of Korean, Taiwan, United last year. The province accounts for 20 Kingdom, China (2) and Washington D.C. percent of Canada’s exports, second only to It has been a busy year: There were 1,256 the much more populated and older introductions aided by the provincial province of Ontario. government. It was a partner in the first World Heavy Oil Conference in China, attended by more than 1,000 delegates, representing 40 countries including Russia, Brazil and Japan. Edmonton will host the 2008 conference in March at the Shaw Conference Centre.

Incoming, there were 181 missions and delegations to Alberta over the past year.

In February a Mexican company met with officials from the Edmonton Waste Management Centre of Mining the oilsands Excellence—an international leader in waste management Top export commodities are crude oil at and recycling. They are looking for $31 billion, natural gas at $23 billion, wheat Edmonton involvement in landfills in at $9.0 billion, and beef at $7.7 billion.

Mexico.

Other commodities account for close to $19 Outgoing, Alberta supported 344 missions billion, and include—but are not limited and delegations including the Canadian to—construction materials, wood pulp and Beef Export Federation, and facilitated Olds minerals.

Minister Guy Boutilier indicates locations of Alberta’s foreign offices, administered by his department of International, Intergovernmental and Aboriginal Relations.

8

EDMONTONIANS JUNE 2007

2

Proof__ _________PROOFED BY:_______________________________________________CHANGES MADE:__________________________DATE:_________________

TAKING STEPS TO ENSURE THE ENGINES OF GROWTH CAN RUN EFFICIENTLY

By Barb Deters

F

or years—perhaps decades— the Alberta government has appealed to the feds for greater involvement and control over immigration to the province. Enter the Harper Conservatives to the seats of power in Ottawa… enter Ed Stelmach to the east wing of the Alberta Legislature Building. Voila! We finally have a new Agreement for Canada-Alberta Cooperation on Immigration.

Essentially, the bottom line for both orders of government was that Alberta, with 10 percent of Canada’s population, deserves the opportunity to receive at least 10 percent of newcomers to Canada… and that this is a prime example of what can be accomplished by working together.

Iris Evans, minister of Employment, Immigration and Industry, is enthusiastic: “The agreement is important because it enables Alberta to act on many of our action plans. We have taken the best of similar federal-provincial immigration agreements across Canada and built a strategy that fits Alberta’s unique needs now and in the future.”

Prior to the signing on May 11th,

difficulties in attracting and retaining newcomers, but this seems an opportune time to look at improving the certification process for foreign trained apprentices, and the evaluation of equivalencies of tradespeople, technicians and professionals.

Evans will also look beyond immigration as a solution to the labour shortage. She acknowledges, “It is only one thing the Alberta government is

New citizens are sworn in at Canada Day celebrations at the Alberta Legislature

Minister Iris Evans with Paul Dubois, Canada’s Ambassador to Germany at the Embassy in Berlin.

Evans was already exploring the potential impact of the changes. “In April, I had an opportunity to meet with key European government, diplomatic and business people on a mission to promote international trade and immigration. While we target our marketing programs throughout the Americas, Europe and Asia, the reason I went to the UK, France and Germany was because of the growing numbers of unemployed skilled workers in those countries who are interested in immigrating to Canada, attracted by our enviable education, health and social programs.

“I now realize how much of a win-win situation we can create. They have more workers than jobs and we’ve got more jobs than workers.”

Not to say that there aren’t other

doing to build our workforce. Besides increasing annual international immigration to Alberta from 20,000 to 25,000 people, we are also working on developing better trained and educated workers (more apprentices for example), more innovative and safe work environments, and the employment for Albertans.” √

Skilled tradespeople are needed

EDMONTONIANS JUNE 2007

3

Proof__ _________PROOFED BY:_______________________________________________CHANGES MADE:__________________________DATE:_________________

9

TheareDutch coming...

Prime Minister Jan Balkenende

By Rick Lauber

G

“

Ambassador Karel de Beer

Honorary Consul Allan Bleiken

and they’re bringing their Prime Minister

od created the world, the Dutch made Holland.”

These people have done some truly remarkable things in the past. They created a bailing system to expand their land mass. Giant dikes were erected around flooded ground and then water was pumped out. Windmills—still prominent on the rural landscape—first provided the power; however, these have since been replaced by more modern and efficient electric pumps.

Creating a country is impressive indeed. Testament to the character and ingenuity of the Dutch people… “highly-educated, focused, professional, stoic, pragmatic and eminently successful,” as defined by Allan G. Bleiken, Honorary Consul and economic advisor of The Consulate of the Netherlands Edmonton.

Imagine the challenges faced by 16.5 million people living in a country just 16,000 square miles in size. Sixteen Hollands would fit into Alberta… and Bleiken is quick to point out that if we had the same population density, our province would be home to 255 million people.

In addition to building their homeland, the Dutch have built a very tight and

10

Consul General Hans Dressier

trusting friendship with Canadians… a bond forged during to World War II, when Canadian soldiers boldly fought to liberate the Netherlands from German occupation… a bond strengthened when Queen Wilhelmina sent her daughter, Princess Juliana, to live in Ottawa in 1940—far from the battles and bloodshed.

In 1943, she gave birth to Princess Margriet—sister of Queen Beatrix, the Netherlands’ current ruler—in an Ottawa Civic Hospital maternity room temporarily ceded by Canada to the Netherlands so the child would be born on Dutch “soil”. Each year, Ottawa receives 20,000 tulip bulbs from the Royal Family and the Dutch Bulb Growers as a thank you for sacrificing our troops and providing safe haven to the Royals during the war.

Our country—and now, specifically our province—holds the interest of the Dutch and their Prime Minister. The blooms will have faded on most of the three million tulips in the Ottawa area by the time Jan Pieter Balkenende stops in the nation’s capital for a courtesy call with Prime Minister Stephen Harper.

Prime Minister Balkenende is actually on his way to Edmonton because he has taken a personal interest in our oilsands—that pocket of land, approximately

EDMONTONIANS JUNE 2007

3

Proof__ _________PROOFED BY:_______________________________________________CHANGES MADE:__________________________DATE:_________________

But from that small crack, great opportunities exist.

It’s taken him two years of diligence and dedication, but Bleiken has certainly opened the door to opportunity. Following the multination get together, 24 Dutch companies will participate in the Dutch Oil Sands Mission from June 9th to 16th, spending four days in Edmonton, one in Fort McMurray, and two in Calgary. They specialize in everything from pipeline design, construction and maintenance, water management and control, to safety services for oil, gas and petrochemical industries plus many more areas. Collectively they did upwards of three billion euros in business last year, and employ more than 11,500 people. One company dates back to 1790, two were established in 1868 and 1881 respectively, two in 2004, and the rest in one of the decades of the last century.

Pulling together a trade mission of this size is no small feat. Bleiken worked closely with Jan Kamminga, chairman of the Association FME-CWM which represents more than a g in mm 2,700 companies in the n Jan Ka a m ir a h technological industrial FME C sector. Bleiken’s report was reviewed by senior business 140,000-square kilometres, rich in bitumen located in the province’s and government officials. In northeastern corner.

December 2006, an Here’s how it all came about: Working through his company, Global Trends oilsands conference Ltd., Bleiken recognized a classic case of oil supply and demand. The world’s convened in The Hague. “demand for energy is going to increase dramatically… we are going to have to Among the speakers was find 50.5 percent more oil by 2025 than what we had produced in 2002.” In a Clive Mather, president of substantial report prepared for the Netherlands government, Bleiken writes, Shell Canada, who gave a “oil will remain as the world’s predominate source of energy… in the next 20 three-hour presentation years, the world will need to find an enormous amount of new energy.” There on the challenges facing the Alberta are only so many cookies in the cookie jar and Alberta’s oilsands are oilsands industry. It caught the attention of Prime practically untapped.

Minister Balkenende. When Bleiken was in the Netherlands in early But while we have the goods, we fall short in the development process.

May, the Prime Minister confirmed his participation in the mission to Bleiken cites two major challenges. “Alberta seriously lacks the necessary Alberta—raising the bar on an already significant investment and trade event. industrial resources to develop the oilsands in a timely and efficient manner…

One can only hope that the business community is ready to take advantage of because of this, we are seeing massive cost overruns.” Thus, a proposed this opportunity… because in the words of, the head of the mission Kamminga, partnership. He is convinced the Dutch could collaborate with us to increase “Alberta, here we come!” production from the oil sands.

Although our city is not yet living up to its full potential Bleiken thinks But why should we partner with the Dutch? Our two countries’ friendship Mandel is right: We are the capital city and we must act accordingly. Bleiken is aside, there are many other reasons. “The Dutch have been involved in the oiladamant, “Edmonton has been provincial in its economic outlook… Edmonton gas industry since its inception 160 years ago,” explains Bleiken. “They have has to think globally.” expertise in water—a key component in oil production—which is unparalleled Alberta is sitting on a “black” gold mine. We have the oilsands while the in the world. One-third of the Netherlands is taken from the sea. The Dutch Netherlands has the technology and expertise to partner with us to further know how to desalinate soil. They are experts in soil reclamation.” develop, process and ship this oil around the world. And partnering can be very In addition, the Dutch are masters when it comes to shipping. “They are the productive. second-largest food exporter in the world and can deliver products to 240 Let’s capitalize on the benefits of “going Dutch.” √ million Europeans within 24 hours. It’s astonishing what they’ve done there,” smiles Bleiken. Once the oil is pumped from the ground, it needs to be shipped to market. Pipelines and tanker trucks are options; however, there may be other viable ideas as well. Furthermore, the Dutch are environmentally conscious— key with today’s concerns relating to greenhouse gas emissions. With being from such a small country, the Dutch have learned to make the most of and maintain what they have. And the Dutch are not concerned with just making a quick buck. “The Dutch aren’t only interested in providing product. They want to become integrated solution providers.”

Potential international business opportunities will be explored during this month’s Alberta-Edmonton joint International Business Expo. Scheduled for the first week of June, the meetings, briefings and tours are designed to broaden understanding among the international diplomatic corps of the potential in the Edmonton region. According to Bleiken, “It’s basically to strengthen and increase the economic linkages between Edmonton and the international community.”

Edmontonians’ readers may recall a similar expo featured two years ago. “Mayor [Stephen] Mandel said back then that he wanted to reassert Edmonton as the capital city and to become internationally active.” To that end, Mandel approached Bleiken to assist in the organization of the first business expo for members of the local consular corps. While this past event did raise some awareness to international business opportunities, the door opened just a small crack.

We have the oilsands—the Dutch think they can help increase production

EDMONTONIANS JUNE 2007

2

Proof__ _________PROOFED BY:_______________________________________________CHANGES MADE:__________________________DATE:_________________

11

BAVARIANS on business

These three gentlemen had never met, but they share connections: Edmonton businessman and Honorary Consul for Germany Bernd Reuscher is a former managing director with Siemens Indoneasia... Rob Aiello is general manager of Siemens Northern Alberta which does between $130 and $140 million in business annually... Ben Kolbuc is owner of Norden Auto haus which imports 800 Porsches and Volkswagen annually, and utilizes Siemens testing equipment in its service department.

Photos by Terry Bourque

By Rick Lauber

T

he pile of unread resumés is stacked high on a side table in his office; however, Bernd Reuscher, Honorary Consul for the Federal Republic of Germany-Edmonton, can do little with them. It’s not because he doesn’t want to.

He regularly gets resumés from German residents seeking opportunities—opportunities they know exist in Canada. Opportunities for better careers… for education… for business… for their families. Opportunities they have heard about at job and trade fairs.

Such possibilities were repeatedly presented by former city mayor, “Booster” Bill Smith on previous international business missions. Smith, a true advocate and promoter of Edmonton, often accompanied Reuscher on trips to Germany to not only evaluate its efficient waste management systems (as a model for us) but also to market the City of Champions as a place to live in, do business with or visit.

And the Germans liked what they heard. What’s not to like? We have every right to blow our own horn. After all, we have the University of Alberta, the Walter Mackenzie Health Sciences Centre, a booming local economy fueled by immense oil reserves capable of generating enough

12

energy to help serve our world’s growing needs for many years.

Smith, the consummate salesman, laid the groundwork.

He established Project Germany which was absorbed within the Europe division of the Edmonton Economic Development Corporation a couple of years ago. Last fall, the Canadian German Chamber of Industry and Commerce opened an office in Edmonton, headed by managing director Julius Nemeth, to promote market opportunities for German companies in this province.

The Germans—most notably the Bavarians—are now visiting us to learn more of our once-mysterious province.

Despite the presence of 165,000 Germans in Edmonton, there has not been the focus on trade and investment that one would expect from such a large community. From a business standpoint, “Alberta was not on the map in Germany until 1990,” notes Reuscher. But, times have changed and dramatically so. “Bavaria is especially active sending delegations to Alberta… they sent delegations from the Cultural Ministry of Bavaria last year to study the results of the PISA (Program for International Student’s Evaluation Assessment) which evaluates students on a worldwide basis on similar terms… and the Canadian

students are always on top.” Those coming here wanted to learn what made our educational system tick like a welloiled clock.

And, a major Bavarian business mission—led by Hans Spitzner, vice-minister of Economic Affairs, Infrastructure, Transport and Technology—will occur this month. This expedition is designed “to establish contacts and see how German technology can enhance Canadian technology and see where it fits it… in order to help Alberta minimize the energy consumption for the exploration of the oil sands,” explains Reuscher. “We look at this like this: German companies are already involved in the exploration… like Siemens, for example… we believe that Germany is quite advanced in environmental technologies.”

Unlike last year’s fact-finding tour, Reuscher hopes to see things progress “one step further” with partnerships being formed and solidified. Such hope is echoed in promotional material detailing the trip: “The oilsands plants create good market opportunities for Bavarian suppliers. Due to the important profits generated by the abundance of natural resources, Alberta is investing massively in its infrastructure. The growing demand for supplies extends to almost every sector of the industry… discussions with

EDMONTONIANS JUNE 2007

2

Proof__ _________PROOFED BY:_______________________________________________CHANGES MADE:__________________________DATE:_________________

decision-makers from both the government and the business community should help reinforce economic cooperation, identify concrete business opportunities for Bavarian enterprises and provide contacts with potential Canadian business partners.”

Good partnerships benefit all involved. The Germans call a relatively small area of land home and work hard to preserve this. While the oilsands lie rich with undiscovered treasure, mining and developing can be damaging, and the Germans believe they can teach us a thing or two about environmental protection. Reuscher shudders when thinking of the potential harm, “Back during the reunification of Eastern and Western Germany, brown coal, a different type of coal than the darker type of coal, was mined through strip mining… those companies that did open pit strip mining were not environmentally concerned.”

An understatement, easily. Strip mining raped the German land; “… they left behind a landscape like the moon,” remembers Reuscher. However, through a massive rebuilding process, the land was rejuvenated with “artificial lakes for recreational purposes, beautiful arrangements

Bernd Reuscher has located his consulate office in the heart of “Little Germany” which is concentrated north and south of Whyte Avenue, and west from 99th Street to Gateway Boulevard.

Edmonton’s LRT uses Siemens’ systems and rail cars

where people have their boats… recreational facilities like artificial beaches.” He suggests the same type of redevelopment process here. “We believe that there is a potential to do the same thing in those areas in Fort McMurray.”

It’s important to note that the visiting delegates are not only interested in oilsands developments. The mission will focus on numerous infrastructure sectors: construction, energy and environment, machinery, oil-gas-chemicals and robotics. During their whirlwind provincial tour, scheduled from June 12th to 17th, respective members will attend the “Go Expo: Gas & Oil Exposition 2007” trade show in Calgary; tour the oilsands plus meet with Iris Evans, minister of Employment, Immigration and Industry, as well as Dr. Indira Samarasekera, president of The University of Alberta—a sizeable undertaking for the sizeable group.

Clearly, the mission is not designed for casual sightseeing; the Bavarians will be all business. Reuscher is expecting 33 representatives in total—“a huge delegation of government officials, experts other than the government, business people and scientific specialists.”

Over and above this tour, one doesn’t have to look far for proof of interest in our city: Volkswagen, BMW, Siemens and the Universe Machine Corporation are among the many German businesses that have successfully set up shop locally. The owners have situated here because they like Edmonton and Canada. Reuscher himself is a prime example. He left his position as managing director of Siemens Indonesia to move here and has built at a number of companies in various sectors such as fast food franchising (Edo Japan), food processing and commissary operations, non-banking financial services (automatic teller and credit card imprint machines), and construction of highend upscale commercial and residential properties. He served as president of the German Canadian Business Association prior to his appointment as Honorary Consul.

“In Germany, there are so many people in a small space: They have 1,000 people on one square kilometre and here

we have only four people on one square kilometre,” notes Reuscher. “They like the openness… they like the nature… they like the people. And they like how we’re making an environment which is socially secure now.”

And, about those resumés piled high in his office, will the new Agreement for Canada-Alberta Cooperation on Immigration make a difference? Reuscher is cautiously optimistic, recognizing that this is a “government-togovernment” arrangement. His real concern is with the limitations imposed on newly immigrated workers who must reach the requirements of their work permits within 180 days. He has written to the Alberta Apprenticeship Board and Doug Horner, minister of Advanced Education and Technology, regarding the plight of foreign workers in the compulsory trades who are not proficient enough in English to pass their certification tests. Oddly, he says, “workers who want to learn the English language at a continuing education institution are not permitted to study because of their [work] visa restrictions… workers fail their theoretical tests almost solely because of language difficulties, not because of their practical abilities.”

Reuscher is asking for more time, one year actually. He estimates that about 70 percent leave Alberta for other provinces where there is more flexibility, or return home.

At the same time, he cites the efforts of Alberta Employment, Immigration and Industry to attract skilled workers at recent job fairs in Essen and Berlin as paradoxical. Reuscher points out, “While we are trying to maintain the economical momentum of this province with the help of foreign workers, our efforts in foreign countries to attract enough skilled workers to join Alberta’s workforce will not be successful if we are not flexible enough to compromise, and this will eventually affect our economy.”

“We are working on a number of fronts to increase immigration,” says the minister responsible, Iris Evans, who recently traveled to Europe and the UK, “such as strengthening our international marketing programs, enhancing settlement services and foreign credential recognition programs. We are working with the federal government to streamline the process to hire temporary foreign workers and expanding the capacity of the Provincial Nominee Program that fast-tracks the permanent residency for selected foreign workers.”

Reuscher has also requested that Alberta officials work cooperatively with institutions, like Schweiss-technische Lehr – und Versuchsanstalt (SLV) Duisburg, to evaluate apprenticeship training conducted in Germany to determine the level of equivalency. For example, he suggests that “the training for welders in Germany has high standards and is comparable to that conducted in Alberta.”

For more information on this upcoming Bavarian business mission, check out www.albertacanada.com/germany/44.htm. √

EDMONTONIANS JUNE 2007

4

Proof__ _________PROOFED BY:_______________________________________________CHANGES MADE:__________________________DATE:_________________

13

money MAKING

What can Jack and the Beanstalk teach us about investing?

By Ron Hiebert

W

hen investors think of growth stocks, Jack and the Beanstalk must play out in their minds. Just like the little seed in the fairy tale that grew until it disappeared into the sky, they dream about buying shares in a small company with enormous potential, and then sitting on them for the long ride upwards to great wealth. However, growth and long-term should never be used in the same sentence together.

CHANGE IS PART OF THE EQUATION Back in 1896, when Charles Dow established his first list of industrial stocks, it looked like this: American Cotton Oil American Tobacco Chicago Gas Distilling and Cattle Feeding General Electric Laclede Gas North American Tennessee Coal and Iron U.S. Leather U.S. Rubber These were the hot growth stories. Rubber, steel, iron and coal were as revolutionary back then as the Internet and iPod are today. But in 110 years, the world has changed. Unfortunately, most of the companies in the original Dow Jones Industrial Average didn’t. The only one to survive and make it into today’s expanded Dow 30 is General Electric.

GROWTH IS FLEETING In a study between 1979 and 1996 of 450 tech companies, Credit Suisse found that those in the top quartile had a better than 15 percent cash flow return on investment. After five years, the cash flow return generated by them dropped to only six percent.

Over the past 50 years, a great deal of research has been done on the sustainability of growth. The results are remarkably consistent but not very encouraging.

Most high-growth companies give shareholders their biggest share price increases versus their comparable industry in the first five years. In the next 15, these companies delivered returns to shareholders more in line with the industry. After 20 years, these companies permanently underperformed their peers.

THE PRUNING PROCESS IS ACCELERATING The auto industry was a huge growth area in the early part of the 20th Century. Between the 1890s and the 1920s, the number of manufacturers went from zero to almost 80.

Over the next 30 years, that total would drop by 75 percent.

Television manufacturing experienced the same type of growth and decline. In a 15-year period between the early 1940s and mid ’50s, the number of manufacturers in the sector climbed to 90 but, by the 80s, had declined to under 10.

As technology has advanced, the time between the peaks and valleys in a product’s lifecycle shrank proportionately.

The number of producers of disk drives went from approximately 10 in 1980 to about 80 in 1985. This figure collapsed down to 20 by 2000. The personal computer (PC) industry followed the same trajectory. It went from 10 manufacturers in 1980 to 100 in 1987 and then back down to 10 by 1992.

The pruning that took 30 years to achieve in autos and televisions was reduced to 15 years for disk drives and five for PCs. The round trip for Internet companies has occurred even faster. Coming out of nowhere in 1995, the industry peaked at the turn of the millennium. The pruning process that followed was as swift as it was brutal. In the year 2000, 223 Internet companies failed. The following year, 544 companies closed their doors. By the first half of 2002, the worst was over and the number of companies shutting down in the sector fell by 75 percent.

As the growth/regression cycle compresses, investors have less and less time to capitalize on it. Profiting from these trends requires that investors become increasingly fast on their feet.

LOOK OUT BELOW! Growth stocks generally experience high returns for short periods of time. The Corporate Strategy Board published a report in 1998 that offered some important insights to shareholders of growth companies. They found that when a business’s growth stalls out, 83 percent of the companies experiencing this see their sales growth permanently dropping into the seven percent-to-eight percent per-year range. Investors that stick around usually get hurt badly.

This same study shows that 70 percent of companies that hit the “stall point” lose at least half of their market value, and that 95 percent under-perform the Dow Jones Industrial Average by 25 percent or more. Investors expect big things

from their growth stock holdings. When these enterprises can’t—or don’t—deliver, the outcome is quick and bloody.

ONCE THEY FALL DOWN, THEY DON’T GET UP CSFB Holt did an interesting study looking into the effects that downturns have on the technology and retail sectors of the U.S economy. These two areas have traditionally been incubators for some of the hottest growth stocks. In a sample of almost 1,200 companies, they found that only 29 percent of these fallen angels where able to pull off a sustained economic turnaround. Twenty-six percent of the tech and 23 percent of the retailers in this sample managed to engineer a recovery that wasn’t sustainable, while 45 percent of tech and 48 percent of retailers saw no turnaround at all.

When these downturns came, they didn’t end quickly.

For 27 percent, the downturns lasted two years or less, and 60 percent lasted for five years or less.

THE LAW OF LARGE NUMBERS Mice are more agile than elephants for the same reason that small companies can grow faster than large ones: size matters. A one-percent market share doubling to two percent is much easier than taking a 40-percent market share to 80 percent.

A company’s probability of building up to $10 million in sales is 1 in 10. The probability of the same company building its sales to $100 billion annually is 1 in 100,000.

Historically, growth stalls out at the 20 to 30 billion-dollar annual sales area. If you want to find growth, big is not where it’s at.

THE GROWTH INVESTOR PLAY BOOK If you are a growth investor, stick to a couple simple rules: Think small. Think fast. Don’t hesitate to sell. When you are chasing growth, remember the old adage about being there for a good time and not a long time. √

Ron Hiebert, a Director, Investment Executive with ScotiaMcLeod, teaches investment classes at Grant MacEwan College. The author of Wealth Building can be heard on CFCW radio (790 AM) Sundays from 8 to 9 a.m. on his show, Making Money. Contact him at rhiebert@edmontonians.com

Our Luxurious MINI BUS with 21-passenger capacity

Plus...

• AM/FM Stereo Cassette • TV/VCR, • Reclining Seats • PA System • Air-Conditioning •Tinted Privacy Windows • Large Luggage Compartment

Taking a skiing trip to the mountains? Or a business meeting in Calgary with a group of colleagues. No matter where you are traveling, Crystal Limousines will get you to your destination promptly and safely.

Please contact us at anytime if you have any questions or concerns.

We also have available Luxury Sedans, 14 Passenger Vans, 6-8-10 Passenger Limousines and a 6 Passenger Austin Princess Limousine.

Telephone: 780.450.2244 Fax: 780.463.0604 Toll Free: 1.800.666.1362 Add GST To All Prices. Gratuity Not Included. Advanced Bookings Required.

14

EDMONTONIANS JUNE 2007

1

Proof__ _________PROOFED BY:_______________________________________________CHANGES MADE:__________________________DATE:_________________

Photos by Terry Bourque

Jennifer or Lynn and Jen Carolei of Sublime Swim and Sunwear R the Juicy oss models transformation meant taking their business from a small label. mom ‘n’ daughter shop to a thriving corporation.

“Timing is everything,” as the saying goes: They met publisher Sharon Maclean who introduced them to Edmontonians Transformers Steffany Hanlen, Tom Bradshaw, Les Brost and Colin Williamsen. Jen and Lynn were given extensive coaching in winning attitudes, relationship building, conflict management, effective communications, and health and wellness. Their progress was aired weekly on City TV’s Breakfast Television. Verdict? Now settled in their new store, Lynn and Jen agree the transformation was “remarkable” on every level.

F

Chad Williams, Jen Carolei’s paramour, will open his new CrossFit Edmonton facility in October. Don’t look for machines at his place in St. Albert: Williams believes “that was the easy way out” for big gyms to pack in clients using a minimum number of staff. He’s returning to the basics with push-ups and sit-ups.

June rd, Nancy is Pritcha for all: Lo Holan s it su Bathing and Charmaine Grantham

Nord-Alta’s Robert Breault took over the construction contact for Sublime after an earlier contractor submitted plans contrary to the building code. Next he presided over a reality check on the budget but all were delighted with Peggy Millard’s final interior design for the much larger retail space.

Citytv’s producer extraordinaire Marina Michaelides made television magic. She worked closely with Edmontonians Transformers to transform their words of advice into 10 segments for a mini-reality series.

Citytv’s Breakfast Television showed up for the early morning grand opening… and the evening party with a lively steel band.

Ryan Jesperson chatted with Edmontonians Transformers Steffany Hanlen and Tom Bradshaw.

President of the St. Albert Chamber of Commerce Rob LeLacheur assumed new duties as director of sales at the Gold Dust Casino a few months ago. He and the Chamber’s Executive Director Lynda Moffat cheered on the new bikini store.

It’s beach-baby-bingo for the Dallmer family: Jacob with parents Crystal and James of OutRight Communications

Lynn and Jen Carolei had a “very good business plan with good projections,” said TD Canada Trust branch manager Erwin Lehnert who attended the opening with small business advisor Sandra Peters. Banks want to know how small businesses “can make it work” which means knowing entrepreneurs can service a debt without going belly up.

EDMONTONIANS JUNE 2007

2

Proof__ _________PROOFED BY:_______________________________________________CHANGES MADE:__________________________DATE:_________________

15

Real savvy PC users and seasoned

BizINTEL B iz IT 101 with Greg Michetti

Last November, Microsoft released Vista, its latest operating system, to the business sector while the general public was allowed access to it a few months later. Today, the majority of personal computers for sale have Vista pre-installed, although most hardware vendors still offer PCs with Windows XP. So far, there hasn’t been a huge rush to implement Vista and most end users, system administrators and CIOs are cautious about the new operating system.

The same foot-dragging is also seen with Microsoft Office 2007, the popular productivity suite that is often bundled with a new computer. There are several reasons for this.

First, we have been used to paying relatively low prices for hardware in the past year and when end users—corporate or home—see the cost of a new Vista equipped box with MS Office software, they’re surprised at the sticker price: it easily tops $1,800… and nearly double that price with laptop and notebook units.

Second, many users of Microsoft Office are a bit spooked by the four-letter file name extensions in Office 2007 and feel that will cause confusion with the files they create and send to others. To illustrate, a Microsoft Word document called “michetti.doc” in Office/Word 2003 or

earlier is now called “michetti.docx” in Office/Word 2007. Likewise, Excel files now carry an “xlsx” ending. You can’t read MS-Office files with four-letter extensions in Office 2003 and earlier.

Third, some resist the move to Vista because the new ‘cartoony” interface is a bit scary—first impressions are critical.

Nevertheless, I give full credit to Microsoft for making a much more intuitive user experience. It’s easier than you think.

Meanwhile, others won’t make the move until the proper Vista drivers are written to

It should have at least 2 GB of RAM or memory. This might sound like a lot but I consider it an absolute minimum.

Hard disk drive size should be at least 120 GB for a portable, and twice that for a desktop. A SATA hard drive for your desktop unit is highly recommended.

For the business executive or power using, portable users, get Windows Vista Ultimate and Office 2007 Professional, even though this will increase the cost of the notebook by a significant amount. I have not had a chance to try out Windows

Vista: Is it time to upgrade? allow for their favorite printer, scanner or digital camera.

However, most people resist Vista because they are perfectly happy with their existing XP environment and find absolutely no compelling reason to change. I call this “good-enough computing.” Really, who can argue with it?

Chances are, you won’t upgrade to Vista until you get a new PC. If you think an upgrade is in order, make sure you run the Windows Vista Upgrade Advisor 1.0 tool (free download from www.microsoft.com) If you are considering a new box, here are the specs I recommend.

It should be at least an Intel Core 2 Duo microprocessor running at 1.8 GHz or higher. A 2.00 GHz or higher is highly recommended.

Live One Care for security, except to know that it uses a truckload of resources.

Meanwhile, applications like Norton 360 should be purchased at the same time you buy the PC as firewall, antispyware and antivirus security software are considered a necessary element of a new computer.

Strongly consider a second monitor.

Now I didn’t say you should buy one, I just said consider it. This means if you get a desktop unit, you must ensure you have a second video card. If you are a portable user, this might mean you want a notebook PC with a docking station rather than a larger laptop with a wide screen. A good 17” flat panel display is less than $200.

Once you use two or more monitors, you’ll wonder how you ever operated with a single one.

build it, as the technology to build something of that magnitude doesn’t exist in Canada, which hopefully will change now that the demand is increasing. It really is the shape of things to come.”

Congratulations to Manasc Isaac Manasc Isaac Architects Ltd., one of Architects, which last month received a Edmonton’s largest architectural firms with national Innovation Award in the Science a staff of 40, is no stranger to sustainable category from the Royal Architect Institute design. Principal partners and architects of Canada (RAIC) at its annual awards Vivian Manasc and Richard Isaac began ceremony in Toronto. The award is for the designing high-performance buildings in Greenstone Building, the new Government Canada’s Arctic 20 years ago, and later of Canada office building in Yellowknife. incorporated the technology they developed into their Alberta projects. They designed Alberta’s first C-2000 compliant green building, Alberta’s first LEED-certified building and Edmonton’s first LEED-certified building. LEED stands for leadership in energy and environmental design, an internationally recognized green building rating system. Notable local projects include Intuit Canada’s headquarters, the St. John Ambulance provincial/regional headquarters, the Alberta Urban Municipalities The edifice is a showcase of Association office, and the environmental design, Alberta Boilers’ Safety including the largest Association headquarters. photovoltaic (solar energy The firm is currently on the panels) curtainwall in Canada. verge of having the most The energy savings LEED-certified projects of incorporated into this building Vivian Manasc any architectural practice in are expected to save the country.

Canadians over $70,000 per year and “Manasc Isaac has been doing this so reduce greenhouse gasses by more than 370 long,” says MacDonald, “they’ve found tonnes per year. ways to keep costs down for these Lesley MacDonald, director of innovative, energy-saving, energycommunications for Manasc Isaac, says that producing ideas, and as demand for the the photovoltaic panels are “the feature that, materials used increases, so costs from probably more than anything, earned manufacturers will go down further as well.

Manasc Isaac the innovation award. We So really, what up to now has been ‘green’ designed it and used a German company to or ‘new’ is now going mainstream.”

Vivian Manasc is president of the RAIC. She is also vice-chair of the Canada Green Building Council and chair of the continuing education committee, a founding member of the Sustainable Buildings Symposium (now celebrating 10 years in Alberta), adjunct professor of architecture at the University of Calgary, and co-author of Agora Borealis—Engaging in Sustainable Architecture. Richard Isaac was the design architect of the Greenstone building, and partner Derek Heslop was the systems integration architect.

C

ivic Buzz with David Norwood

16

Amid the somewhat negative publicity Edmonton has been receiving of late, it’s good to see a solid, positive independent evaluation of our city, and it’s something we should be shouting from the rooftops. Foreign Direct Investment (fDi) magazine, published by the respected and reputable Financial Times of London, listed its rankings of “North American Cities of the Future” for 2007-08 in its April/May issue. The magazine divided cities into four categories: major cities, with populations of more than two million; large cities, with populations between 500,000 and two million; small cities, with 100,000 to 500,000; and micro cities, with less than 100,000.

Edmonton ranked fourth of 10 in the large cities category—Juarez, Mexico was first, followed by El Paso Texas and Columbus, Ohio. Edmonton was the only Canadian city to make the overall top 10 large cities. Moreover, Edmonton ranked first in the best economic potential category and first in average earnings growth. A third award named Edmonton as one of the topfive large North American cities for best business development and investment.

The best economic potential category makes fDi’s selection methodology even more relevant. In the latter part of 2006, key cities across North America were invited

gamers can certainly piece together their clone PC from the local hardware store… but, if that does not describe you, go with a brand name unit from Hewlett-Packard or Lenovo. Recent Vista models from Acer are surprisingly solid and offer great value for their price. Until Dell gets some of its quality control, delivery and support issues resolved, I personally don’t recommend them; even though their low price tags are attractive.

Specifically, I would advise buying a unit on-line, as that represents the best deal; the best warranty information and the best delivery time. While it is fine to look at retail establishments such as Best Buy or London Drugs, keep in mind they usually do not have the necessary options for “business” buyers and instead focus on home buyers.

In both Lenovo and HP’s case, you should talk to a representative before you get Vista Ultimate as they generally sell Vista Business. (HP Canada: 1-877-2314351 or on-line buying website at http://shopping.hp.ca, Lenovo is at http://www.pc.ibm.com/ca or 1-866-96THINK (84465).

Bottom line with Vista?

Do your homework to make sure you get the right version of Vista and Office 2007. Ask yourself what you really want do with it. Simply put, “What’s important?” Next, approach the new interface as a positive, learning experience that will be easier than it seems and, oh yes, be prepared to spend more than you think.

Finally, remember there is no going back. Once you get used to the new interface and features, Windows XP will seem just so ’06. √ Gregory B. Michetti of the Alberta-based systems integration firm Michetti Information Solutions, Inc. can be reached via www.michetti.com “to answer more than 60 questions in seven broad categories. A total of 108 cities were considered by fDi’s panel of judges, which scored each city according to a variety of criteria....” The short-listed cities are selected through their responses, comprising both data and qualitative information, “in much the same way as investors approach locations during the screening process used to decide which are suitable for capital investment projects.”

Kudos to Edmonton Economic Development Corp. (EEDC), for promoting our significant business benefits to the fDi panel of independent judges. To view all the results, go to http://www.fdimagazine.com/, click on “more...” under Inside fDi.

Good to see that Connect2Edmonton continues to increase its subscriber base. A growing number of people—more than 1,300—with a keen and, in many cases, downright passionate interest in the wellbeing of Edmonton are providing more information and opinions on a very wide variety of subjects. Among the hotter topics right now are regional cooperation (or the distinct lack thereof), a matter highlighted emphatically in Mayor Stephen Mandel’s recent State of the City address; LRT extension north, west and south; the proposed new arena (and where it should go), air services; new condos, offices; and many variations on these subjects. C2E is a great way to gain or share information and voice your thoughts and ideas about Edmonton. If you haven’t already done so, give it a try: www.connect2edmonton.ca √ David Norwood is a freelance writer/editor. Contact dnorwood@edmontonians.com EDMONTONIANS JUNE 2007

2

Proof__ _________PROOFED BY:_______________________________________________CHANGES MADE:__________________________DATE:_________________

M edia Minute with Bruce Hogle

When print and electronic media

T

EDMONTO R N E

IN

TE

RN

US

INE

SS

GRE

A

personalities make asses of themselves—think fired U.S. shock jock Don Imus calling black female athletes hookers—the public attributes that to sheer ignorance.

Ditto for despicable punk Edmonton criminals like 29-year-old Ronald Crane. With 50 convictions already under his belt, he got life in prison for murdering city cab driver Hassan Yussuf. Crane’s views after the sentencing: “This is bullshit.”

Many Canadians feel the same way about federal opposition political leaders demanding Hockey Canada appear before the Commons Official Languages Committee. Why? Because this year’s Team Canada Captain Shane Doan allegedly made

derogatory remarks against a French Canadian referee some 16 months ago.

Where were these same political geniuses when Guy Carbonneau was forced to leave the Montreal Canadiens for the Dallas Stars, because the Quebec government wouldn’t allow Carbonneau’s then 18 year-old daughter, to be educated at any English-speaking Montreal high school. Why? Because she was a francophone.

And how come not one political leader protested then Parti Quebecois Leader Andre Boisclair declaring the PQ welcomes all ethnic types “even those with slanted eyes”?

Nor was there any noticeable protest about Ontario Premier Dalton McGuinty’s new edgy campaign against global warning. The campaign urges youth to FLICK Off—with the font clearly designed to make it look like that well known four-letter “Fword.”

B L AT I O N A

Exploring the linkages outside of Alberta

By Cheryl Lockhart

T

he World Trade

Centre (WTC), the international division of the Edmonton Chamber of Commerce, has been operational since 2004 from its premises on the sixth floor of its Jasper Avenue location. The impressive facility has been host to a number of events since then. With changes afoot at the organization, it could soon become a larger force in promoting and facilitating trade for businesses in Edmonton and what Martin Salloum calls the World Trade Centre Northern Economic Region.

I chatted with the Chamber president about the WTC and its evolution.

Salloum explained that, “The Chamber is a locally focused organization providing networks for our members.

90 percent of our members join for the networking. But, what we realized, is that for a certain contingent of our membership, networking needed to expand beyond metro-Edmonton. For that reason, two full-time staff

members are now being dedicated exclusively to the World Trade Centre.”

Keith Persaud and Chris O’Brien have been reassigned from other positions to expand the presence and activities of the WTC.

Edmonton World Trade Centre

It’s all about acting as a facilitator to attract and encourage foreign trade. The WTC intends to work closely with existing export service providers such as the Business Link’s Export Link but has some of its own initiatives planned.

Mind you, how can anyone be surprised about despicable language anywhere after a recent B.C. Supreme Court trial in Vancouver? I was in that city in March when Justice Peter Leask acquitted Hells Angels member Glen Jonathon Hehn of trafficking cocaine worth $1.5 million.

Crown Prosecutor Ernie Froess maintained the cocaine had been stored in a locker rented by Hehn who said he sometimes rented it to friends.

Official transcripts reveal Justice Leask stated after the crown’s summary that: “He (the accused) would have had to be out of his f---ing mind to store it (cocaine) in his own locker, all right?”

Much to the disgust and amazement of children and adults in court at the time, Justice Leask then used “f—-ing” a second time, as well as “shit” and “goddamned”.

While Justice Leask later First up is a virtual trade mission with South Carolina, followed by a real trade mission to the state. “South Carolina businesses have extensive experience working with Canadians in Eastern Canada and are anxious to develop linkages in the West.”

In addition to their responsibilities developing linkages with other countries, Persaud and O’Brien will reach out to northern communities in Alberta, British Columbia and all three territories. The WTC facility is being touted as a “home away from home” for northern companies to use as a base while in Edmonton on business. The WTC views other Canadian provinces and territories to be untapped, “foreign” frontiers and is doing its part to help connect its members with northern enterprises. The recent signing of the Trade, Investment and Mobility Agreement between British Columbia and Alberta serves as a reminder of how barriers to trade between provinces are much like those between countries—despite the best efforts of bilateral and multilateral trade deals.

Even within the same country, there are cultural, language and regulatory obstacles that sometimes must be overcome and the WTC is hoping its efforts will remove some of them.

Fond farewell I’m sorry to report that this is my last column with Edmontonians. Like so many of my fellow entrepreneurs, priorities shift and change—mine took a giant leap when I became a mom seven months ago. Given the demands of a newborn and the continuing growth of my consulting business, I made the tough decision to discontinue my column. I will miss the opportunity it has afforded me to meet some fantastic Edmontonians in the field of international business; I hope that their stories have inspired you to look beyond our borders and consider the opportunities that await. I am a big believer that Canadian companies need to be bigger players on the international stage—a cause I will continue to champion. √ Cheryl Lockhart owns International Strategies Ltd., specializing in export-related planning and marketing. E-mail: clockhart@edmontonians.com

apologized, one citizen deemed it insincere as it was read from a prepared statement. He felt the judge should have faced the same penalty as any member of the public who showed contempt for the court.

The Canadian Judicial Council, however, is the only body which can discipline federally appointed judges—but only if it receives a complaint.

I doubt anything will happen in this incident. I do know, however, such behaviour should never be tolerated in our courts or our legislatures— either by citizens at large or those who sit on the bench or in our houses of government. √ Bruce Hogle is the former news director at CFRN TV and recently retired head of the Alberta Press Council.

Contact bhogle@edmontonians.com

Edmontonian IN EXILE

By Janet Edmondson in Calgary

L

ast month, I wrote about the

Mazankowski Alberta Heart Institute, scheduled to open in Edmonton in October.

The Calgary Regional Health Authority is also campaigning to improve arterial well-being of its citizens. The CHRA is lobbying to ban transfats from local restaurants.

Transfats have a longer shelf life than other oils, can be used in deep fryers, and make pastries and baked goods taste better. Unfortunately, for those of us who enjoy a tasty pastry or two, transfats raise the level of “bad” cholesterol in our bodies, and can lead to blocked arteries, stroke, Type 2 diabetes and heart disease. While the packaged food you buy at the grocery store must list the amount of contained transfats, restaurants and bakeries do not have to provide that information.

Last year, a joint task force of Health Canada and the Heart and Stroke Foundation reported that 22 percent of transfats are consumed away from home, usually in fast-food restaurants.

I recognize the concerns, but what about my right to choose? I resent enforced dietary restrictions when I dine out. How long before they are substituting grilled tofu for the 8 oz. steak?... insisting I order four vegetables with my meal?... burning the wine menu and offering only Vitamin D enhanced skim milk, or water? And who’s going to monitor my menu at home? No one has told me what to eat since I left home in the 1970s. Does the CRHA really want to take on the role my mother abdicated over 30 years ago?

I’ve been looking for an exciting job in Calgary; something that pays well, and benefits the less fortunate.

Perhaps I should consider importing Edmonton-made Big Macs to sell to transfats-addicted Calgarians. √

jedmondson@edmontonians.com

EDMONTONIANS JUNE 2007

2

Proof__ _________PROOFED BY:_______________________________________________CHANGES MADE:__________________________DATE:_________________

17

[yellow tail] Exec Chef Jason Roberts

MENU

Magic with Linda Bodo

with Chef John Berry

Next gen wine trends

A

After spending the past 10 years writing about wine and food, I find it interesting that there’s actually still a big push on to de-mystify wine to the public.

I guess I’ve become such a bloodhound searching out new and exciting wines that I’ve forgotten there’s a whole new generation of wine drinkers who are just discovering the joys of the grape.

That’s one of the major reasons 29 year-old Phillip Casella of Australia made Edmonton one of his stops on the “[yellow tail] Walkabout Tour 2007.”

Fillipo and Maria Casella left their home il in Italy in the 1950s for Australia. After Yellow ta years of growing grapes for wineries Down wallaby Under, Filippo decided in 1969 that a new generation should put its winemaking skills to use, so his three sons—John (marketing director and winemaker), Joe (Australian sales director), and Marcello (director and vineyard manager)—uncorked their talents.

Together with grandson Phillip, who holds an Applied Science degree in winemaking, the trio has been turning out excellent wines under the [yellow tail]® label.

Philip says that not only has the family tradition flourished, but everyone they deal with—some 560 growers—is part of their “family”. This, he says, is very important not only to the business, but to him and the rest of the Casella family.

It seems to be paying off in terms of success. Canada is [yellow tail]’s second largest market per capita. From Halifax to Vancouver, Phillip says his family’s wines are taking off.

“We’re seeing not only 30 year-old women enjoying it, but 20 year-olds who are being turned on to wine. It’s opened the doors to a very wide spectrum of people who enjoy wine.”

He admits the Casellas watch what the competition is doing but, more importantly, they are concentrating on consumer education. Wine used to be something you didn’t think about until you had to go to a party. But now things are changing with our up and coming 20 year-olds. “yellowtail is becoming an intregal part of their lifestyle. It’s a wine that’s affordable… has great taste… is unpretentious. It’s easily identifiable with fantastic flavours.”

In Edmonton, the cost for a bottle of [yellow tail] is about $12 to $14. Check out their new “Bubbles” sparkling wine. It’s got patios written all over it—a great wine as an aperitif or a social drink. It has the flavour of tropical fruits and a delightful crisp finish. Best of all, it’s not overly sweet.

Their Reisling also caught my fancy at a recent winemaker’s dinner at Earls Tin Palace. It was married with warm Italian Ciabata with Australian olive oil and a Celeriac Remoulade with oven-roasted prawns. [yellow tail] Executive Chef Jason Roberts, host of Jason Roberts Taste on the American PAX Network, and Earls Culinary Team turned out one of the best meals I’ve ever tasted: Daube of Beef Cheeks Provencale-style, served with steamed green beans and butter roasted almonds, was paired with Shiraz-Cabernet and their Reserve Cabernet Sauvignon. Beyond yummy.

The sixth generation winemaker and corporate public relation front man says his goal is “to lead as a fresh, new generation winemaker, unhampered by prejudice and the elitism that can abound in the industry.” Phillip truly wants to create “wines that are approachable, modern and, most importantly, enjoyable for the consumer.”

I think he has already achieved his goal. √ Contact Chef John Berry at jberry@edmontonians.com

rape G

Expectations

W

ine tours are becoming increasingly popular destination holidays. Last fall I wrote about our annual trip into the South Okanagan to restock our wine cellar with some of Canada’s finest wines. We’ve actually been chasing the grape for a long time.

Twenty years ago, during our whirlwind courtship H and I took our first trip together, to Napa’s romantic wine country…with about 30 or so of his associates from the Earls Restaurant Group. It was my first foray into the life of restaurateurs, viniculture and the art of quick recovery from nasty hangovers. As we made new friendships with each trip, we also learned that wine is a serious business.

Acidity, bouquet, and complexity became regular vocabulary during tastings. As Earls expanded over the next 10 years, so did our knowledge of the liquid poetry.

Every other year, we would pack our bags to embark on a fact-finding mission with colleagues from across the country to select new house wines. To some of the smaller family operated vineyards, that could mean an entire year’s production of a particular grape variety. Eagerly, they would wait our arrival and welcome us

Slimming Secret!

Lose 4 to 20 inches in an hour!

A hot new detoxifying body wrap!

Why it works?

The wrap detoxifies the body.

The body can get overloaded with toxins because it cannot keep up with the filtration process. The more toxins in the body, the more lymphatic fluid increases to protect cells.

You force out toxins. Once the toxins are gone, the lymphatic fluid decreases and you lose inches. It is not water loss—rather, an exchange of minerals for toxins.

That’s a Wrap!

Call Linda Perras at Suddenly Slimmer Day Spa

780.459.3444 pedicures. manicures. facials. aroma therapy message

www.suddenlyslimmerdayspa.com 18

EDMONTONIANS JUNE 2007

1

Proof__ _________PROOFED BY:_______________________________________________CHANGES MADE:__________________________DATE:_________________

lifestyles LIVELY with open arms in the hopes of becoming Earls new signature wine. This gave us an insider’s view of daily operations, harvesting, bottling and marketing. Walking tours became jaunts through history as we wandered through row upon row of gnarled vines laden with the fruit of the vine.

And then there are the memories…

In Santiago, Chile, the Cousiño Macul winery hosted a luncheon for 40 of us under soaring oak trees laced with bougainvillea. The enigmatic owner, Carlos Cousiño was the spitting image of Anthony Quinn—with the same captivating charisma. He spent the afternoon delighting us with stories of his sixth generation vineyard while attendants served course after course on crisp linen tablecloths…

We learned the fine art of riddling first hand from a master at Domain Chandon in Napa Valley who whirled and twirled champagne bottles for a living. With a practiced twist of the wrist, he rotated the bottles and spun them from a 45degree angle to a 60degree slant. The process took several weeks, depositing sediment in the bottle’s neck—the catalyst for bubbles and popping corks. And I thought the Riddler was a Batman adversary…

After an afternoon of tasting, we joined the staff at the Deinhard Estate for a glorious autumn afternoon on the banks of the Rhein, harvesting Riesling grapes. The vine covered slopes rolled toward the river in a tawny palette of vermillion and tangerine with tendrils clinging onto supports for dear life as the weight of ripened fruit became harder and harder to bear. A light mist descended from the heavens and the smoky scent of damp loam rose from the earth, permeating the air around us…

And, if you’re in Germany during the fall, OctoberFest is a must. We wandered into a beer pavilion, overwhelmed by the crowd and worried that we wouldn’t find seats. A

gentleman invited to join his table. It turned out he was the head of Siemens and this was the corporate venue. A good time was definitely had…

At a vineyard in northern Italy, we descended into the family’s personal cellars. Behind wrought iron railings, collections of wine slept under a web of mold that enveloped each bottle. For each male born into the family, 1000 bottles of wine from that year were cellared for his wedding day. By contrast, 300 bottles were stored for each girl. How’s that for inequality?…

Stretching as far as the eye can see, the vines of La Rioja, Spain thrive in the Ebro Valley, where we visited a small Bodega early one morning. The owner had forgotten we were coming and didn’t have a translator on hand for the tour. Undaunted, he lit a roaring fire in a cozy room, opened several bottles of velvety wine and plated generous chucks of local cheese on a long wooden bar.

As we made ourselves comfortable—and started sampling wine at 8 am!—our beret-clad host hopped on a bicycle and peddled off to the next village. He returned shortly with his grandson saddled on the handlebars—the only English speaking inhabitant in the village. The 12-year old went on to fastidiously explain the family operation…

These slices of time permanently reside in my heart and soul. They have become divine memories of places and people that summon a smile, a giggle, or a picture perfect image. Two decades later, H and I are still married… still drinking wine… still touring vineyards… still discovering the magic of the grape.

Cool Grapes Frozen grapes can be as scrumptious and addicting as ice cream. You can use the red or green variety, although seedless is preferred. Wash thoroughly and toss in the

freezer on a paper towel-lined tray and forget about it for a day or so. The lush little insides develop a sorbet-like consistency and the sweetness becomes magnified. They say this treat is better than sex—you decide.

Grape-scape Yes, you can grow grapes in our northern climate. Plant them in full sun, preferably in a location that traps and generates heat: the south side of a brick house, for example. Shelter the vines from wind and winterize under a healthy cover of mulch and snow. Grape cultivars that a suited to prairie conditions include Alpha, Beta, Valaint, Dakota, Svelter and Hungarian.

Valiant and Beta—similar in taste to concorde grapes— are the most hardy… Hungarian the least. But visit your favourite greenhouse for hardy varieties that will withstand Zone 3 winters and get detailed planting instructions. Enjoy jams, jellies and juice from your own garden.

Leaf Brief Grape leaves aren’t just for photosynthesis; they also make great vessels for steaming fish. Blanch large leaves in boiling water until soft, then rinse in cold. Lay three leaves in a fan pattern with stem ends intersecting to form a triangle and place four to six ounces of fish (any firm, white-fleshed fish) in centre. Add lemon wedges, dill, sea salt and fresh ground pepper. Fold leaves over fish into tight parcels and steam for five to six minutes. Mmm, mmm good.

Raisin the Alarm Did you know that all grapes and raisins are toxic to dogs? In 1989 a disturbing trend emerged from the Animal Poison Control Center: nearly all dogs reported to have eaten grapes or raisins developed acute renal (kidney) failure. Be sure to keep the clusters out of Buster’s reach.

Medi-seed Grape seed extract is a powerful antioxidant, 20 times more potent than Vitamin C and 50 times stronger than Vitamin E. Benefits include improved cardiovascular health, prevention of artery plaque and heightened mental alertness. Good bye heart disease, high blood pressure and high cholesterol. √ Contact Linda Bodo at lbodo@edmontonians.com or visit absolutebodo.com.

EDMONTONIANS JUNE 2007

1

Proof__ _________PROOFED BY:_______________________________________________CHANGES MADE:__________________________DATE:_________________

19

ACQUISITIONS, DIVESTITURES & CORPORATE FINANCE

with Stephen W. Kent, CA (780) 441-6793

Value for the money: analyzing the deal The market value of most companies is arrived at by examining three of its main elements: capital assets, working capital and goodwill.

Capital assets should be the easiest to determine. The real estate value should be corroborated by a third party appraisal by an accredited appraiser. In Alberta’s current hot real estate market most vendors are enjoying serious growth in the value of their real estate.

In some cases, these values are disproportionately high in relation to the value of the company’s operations which is problematic in closing any transaction; but with some ingenuity it can be overcome. A clean environmental report is also essential.

The capital equipment used in the business should also be appraised and the valuation supported.

The working capital should be relatively straight forward to value; it is what it is at closing. Where negotiations enter the situation is determining the appropriateness of the working capital. The buyer wants it as high as possible, the vendor usually has not given it much thought. We were assisting on a transaction recently where the offer was $2 million more than the vendor expected. The vendor was initially very pleased with the offer. Upon closer scrutiny we observed that the buyer had pegged the value of working capital significantly higher than was historically normal. The current value supported this high level of working capital only because the operating company had a large order that was about to be shipped. This artificially raised the level of inventory which consequently raised the magnitude of the current assets. The inventory would have been shipped prior to closing but it was likely that this spike would now be in receivables at closing. By raising the working capital amount at closing the purchasers was effectively taking the current year’s profits from the vendor.

Goodwill is the most nebulous component of any deal. Like beauty, goodwill is in the eye of the beholder. The great thing about having multiple buyers at the table is that it helps determine exactly how much goodwill the marketplace puts on your company. A motivated buyer is more likely to pay extra for goodwill than a less motivated buyer.

Buyers will try and get the vendor to share part of the risk on the goodwill by linking the amount to future performance criteria.

The amount of goodwill is important but the terms of payment are equally significant.

If you are interested in selling your company and need some assistance in determining what it is worth in today’s marketplace, please e-mail stephen.w.kent@ca.pwc.com or call 780.441.6793.

20

EDMONTONIANS JUNE 2007

1

Proof__ _________PROOFED BY:_______________________________________________CHANGES MADE:__________________________DATE:_________________