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Dr. Ollie and I are off to another cooking school: this time in North Africa.
E
dmontonian Rowan Dorin is an
impressive young man. He’s referred to as a “history concentrator. The Radcliffe Institute for Advanced Study at Harvard University has named Rowan, a senior, one of two winners of its 2007 Captain Jonathan Fay Prize. He was “selected for the originality of his research into and findings about the development of trade and trading networks in the medieval Adriatic Sea. Candidates for the Fay Prize are chosen from among the nominees for Harvard College’s Thomas T. Hoopes Prize, awarded annually for outstanding scholarly work or research.” I spoke with Rowan just as he was returning to Boston for another term. We chatted about his thesis and why. It turns out that the medieval Rowan Dorin trading routes are not much different than now, still having some relevance. That’s cool… but a little too complicated for my mind. Rowan’s mother is the politically active Karen Lynch; his father is Murray Dorin, a former Member of Parliament.
The grandest of the grand balls will be held at the Fairmont Hotel Macdonald on October 20th. The Grande Masque Ball & Auction is a major fundraiser for Concordia University College of Alberta. The honorary cochairs for the 7th annual gala are Drs. Marilyn and Robert Westbury. These VIPs are both VPs: she at Concordia and he at Telus. It’s a must-attend, classy affair. Call 780.479.9232—your grande masque is included in the price of the ticket. This is the first year Dr. Ollie and I will miss the ball since it started. Read on…
It’s a great way of seeing the country side… The brass was in town to present Bavaria BMW with its QMA guided tours every day and only about three days of Certification Award: Left to right: Klaus Maier, president and school. Dr. Ollie wants to learn about spices. Gee, I dealer principal of Bavaria BMW; Lindsay Duffield, president thought we had enough spice in our lives. Morocco will and CEO of BMW Canada; Bonnie Eastman, QMA team leader be marvelous. We’ll eat our little hearts out in and David Minty, general manager, both of Bavaria BMW; Marrakech… repack… then off to the Canary Islands for and Rick Abernathy, regional manager of BMW Canada. a week in the sun. I’m expecting great adventures to unfold: exotic places like Casablanca conjure up Meals on Wheels annual Box Social fundraiser intriguing images. Mystery reigns supreme. Wow, I can was a terrific evening. The crowd dug deep to help hardly wait. supply meals to those who can’t get their own. The tally hasn’t been finalized but I’ll fill you in next month. Dean Brumwell and Rhonda Lalonde were married at sunset on August 21 on a gorgeous beach in The Edmonton Eskimo’s Ed Hervey is the Anavyssos Greece. honorary chair for the Northern Alberta Brain Injury Eighteen family Society Dinner and Auction to be held at the Derrick members and friends Club on Saturday, November 3rd. accompanied them to I’d like to put in a plea for your support because this this enchanting country: isn’t a group that gets a lot of front page coverage… and including their I lost my friend Joe McGoldrick after years of suffering hairdresser Tobi from a brain injury. I would love to hear they sold out Sawula, and their and someone over-paid for Wayne Gretzky’s signed photographer Janis jersey or putter. Call for tickets 780.479.1757 Dow of Terry Bourque Photography. Why Here’s a couple of mea culpas to keep me Greece? Rhonda says, humble: First I want to clarify my mention of those “When Dean asked me wonderful flower displays at the LPG tournament. where my dream Dean Brumwell Kimberley Wagil of Best Buds in Oliver Square did wedding would be, I and Rhonda Lalonde supply the Royal Mayfair with a few vases and pails of replied, ‘On a beach.’ flowers. But the bulk of the credit goes to Maureen He asked, ‘Any beach in particular?’ I said, ‘It would Olesky who has been the club’s gardener for over 15 have to be in Greece.’ It just so happens that this was years. She grows most of the plants in the greenhouse Dean’s choice too. So we decided to make it happen.” and does all the arrangements around the clubhouse and I’ve known Al Williams forever… since before out on the course. Debbie Amirault, course superintendent, wanted to ensure Maureen’s talents were he started punctuating his name with periods. He got his recognized. flying license about five years before me, but we hung out Next up: In August, I did the item on my old friend together at the Edmonton Flying Club, planning our Zandra Bell and I went back to what she used to do. But futures. He wanted to make flying a career—until he now, she doesn’t make fun of anyone—bosses and applied to a major airline and learned that they paid $400 a employees are off limits. These are her words: “What I month. His second idea was to combine his flying and do is research in advance to discover the challenges, the engineering. Al started with Brooker Engineering and I frustrations the individuals in my audience face in their went into insurance. Eventually, he opened A. D. Williams workplace. The presentation then helps them look at ‘the Engineering Inc. (notice the periods?) which celebrated its 30th anniversary last month. Its head office is in the former negative’ in an uplifting and humourous way. When you can get people to laugh that’s fantastic, but getting them Edmonton Club, and there are 166 employees in various to laugh at what drives them crazy at work is sublime, branches. The airplane has been one of the major thrusts cause it removes the bitterness that can fester and helps behind its success—getting them to potential work sites raise morale.” Glad we got that settled, Zandra—now just before the competition. Al’s son Regan, now president of don’t sit on me. √ the company, does much of the flying, but Al has logged 12,000 hours over the years. Both are involved in aviation Call Muggsy Forbes at 780.482.4545 and sit on many boards. Actually, Regan and I serve on the or e-mail mforbes@edmontonians.com Edmonton Flying Club board.
EDMONTONIANS OCTOBER 2007
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ow you see/hear them; now you don’t.
One of the bad things about media is that you fall in love with certain personalities and when they move on, you usually don’t find out where they went. I’ll try to catch you up. In television, CTV News Director Steve Hogle (Bruce‘s son) has just stepped down, and will be joining the Alberta Research Council about the Steve Hogle time you read this. News anchor Carrie Doll has been on maternity leave, only doing the odd public service appearance, and will return sometime this fall. Long time CTV People Helper Valerie Oczkowski has been on an extended medical leave. Courtney Mosentine, who was handling morning news, moves on to a newly created communications position at the Stollery Children’s Hospital. Carmen Liebel, who covered medical news while Marnie Kuhlman was on maternity leave, has a new job at the University of Alberta. Shawna Randolph, former CTV anchor, now works for the City of Edmonton and long time newsroom lady Janice Johnson now calls CBC Edmonton home. Two great guys in the sports business that you will see from time to time reporting on TSN are former CTV Edmonton-trained personnel Ryan Ryshaug and Brian Mudryk. Ryan has the plumb job of travelling all over the world to cover sports while Brian anchors the sports desk. At Global Television, things have been pretty consistent with my biker buddy Gord Steinke and co-host Lynda Steele holding down their anchor positions for the past
T
ravel ups and downs…I had quite the
trip to Grande Prairie last month. The good news was that I saw plenty of copies of Edmontonians in the Edmonton International Airport—the Sizzling September issue was everywhere. But, after 15 years of being available at the EIA, the brass wanted the racks removed. My publisher Sharon MacLean is putting out the word that it will be stocked at Jazz City News and River City News only. I also saw piles of Edmontonians in the Grande Prairie Regional Airport as well. Now Sharon has cut a deal with the other Northern regional airports in Peace River, High Level and Fort McMurray. Good news for damn sure because I need lots to read. Back to my travels: My Air Canada Dash 8 didn’t make it to the runway. It had an engine malfunction. This happened while Lisa and Rob Huett, who were in GP playing at the Casino, and I waited in the security area as CNN ran nonstop footage of the burning One-Two-Go jet that crashed in Phuket killing 89 people. The malfunction kept me in GP for most of the day… causing me to miss my gig hosting the Joey Moss Cup. Classic case of adding insult to injury: The capper happened before I left Edmonton the previous day. While standing at the Air Canada counter around 5am half asleep, the woman at the counter tells me that there is a problem with my on-line check-in. Thought I would try to save a loonie by booking via the WWW. You have options: ‘I won’t change my travel plans’ saves like three bucks… ‘Don’t collect Aeroplan points’ saves a few more shekels, and so on. My mistake? I selected ‘No checked baggage’ expecting to save $5, I think.
decade. Of course. we still see the pride of Porcupine Plains, Saskatchewan Darren “Dutchie” Dutishyn on TSN daily. Former news anchor Lesley MacDonald continues to produce and host the monthly Woman of Vision series, and has also started her own communications/PR company. At Citytv—whose ownership changes almost as often as I change my socks—a good number of people made their mark at the operation and moved on to some pretty prime jobs in the business, including former anchor Jennifer Martin who now works for Energynews.com, operated by high profile curler Dave Nedowin. A lot of the old A Channel folks are alive and doing well: Steve Antle is on the east coast; Mark Scholz is now on the same page as me in Edmontonians (literally) and busy, busy with MES Communications Inc., his production company. Janice Mackie Fryer is a foreign correspondent in the Middle East; and sports guys Gene Principe and Jamie Thomas now call Sportsnet home while Darren Draeger is at TSN. Allan Carter, former anchor, now handles Global Toronto news. If you have satellite or digital cable you’ll also see lots of Edmonton’s former TV people on Vancouver and Toronto television. The Left Coast boasts, among others, Perry Solkowski, Robin Stickley, Kristi Gordon, Kerry Adams and Claire Martin… TO has Michael Kuss, Graham Richardson and Katherine McDonald. In radio, several long time Edmonton broadcasters either moved or stepped into new challenges. Former Bear and K-Rock announcer Terry Evans who wanted to spend more time with his family—those 4 am mornings in minus-30 weather can kill you—has a trucking business. Long time pal and former CHED and Mix 96 (now Big Earl) announcer Gord Robson is back on the airwaves at Cool 880 replacing Tim Shootz, who headed south to Cowtown. Another gent I worked with many years ago at CKXL in Calgary, Rob Christie, is holding down mornings at Rawlco’s Magic 99 after stints in Vancouver and Toronto.
At the time I booked, I was good to go but, come 4am the morning of my flight, I couldn’t get everything in a carry-on and my pants pockets. So I put it all in a garment bag and hit the road south. I had to pay something like $150 to get my bag checked for my flight from Edmonton to Calgary to Grande Prairie back to Edmonton—$50 for each leg. (Yeah, I know… why go to Calgary to get to GP? Cheapest ticket, that’s why!) I could take paying, say $10, for my poorly chosen mouse click but $150? Please. I guess AC still owes Celine Dion for that cheesy ad campaign. The woman at the counter was excellent—none of this foolishness is her fault. She unfortunately has to be the bearer of the beast’s money grabbing policies. Oh yeah, my hair gel and mouthwash were taken away… Did mention they had the Edmontonians at the airport?
Rob’s wife Diane and I go back to the 1960s when she worked for 630 CHED. Speaking of “mornings can kill you,” my very good friend Gord Whitehead is taking some much needed time off. Not only do these guys have crazy morning hours but the successful ones also do a ton of evening and weekend public service work. Former NewCap—it owns CFCW, Big Earl and all those 96 stations—morning guy B J Wilson now works for the same company in Calgary, where he is joined by another long time Edmonton broadcaster Kelly Frazier. Rob Mise made a brief stop in Edmonton, also at NewCap, and is in Calgary at the new CHUM station down there. Working in the same building is former Citytv News Director Chris Duncan. If I’ve missed one of your favourites over the past decade, please don’t hesitate to give me an e-mail and I’ll follow up for you. It’s hard keeping up-to-date on this fast moving industry but it is a ‘small business’ now and through Facebook and industry websites most of the long time media personnel are easily found. √ Marty Forbes is VP and general manager of The Bear, EZRock and The TEAM 1260 Sports Radio. Contact marty@edmontonians.com
regional VP Peace Country. All those years in the high stressed world of banking, and nary a grey hair on his head. He took some ribbing on that, let me tell you: “Two minutes for looking so good … “ It was nice to see Harry Bensler, retired RBC executive and 2004 United Way campaign chair for this region, and his wife. Another retired RBC executive was there in spirit. Many readers will remember Bill Banister, a pillar in our community for years. In his e-mail to Henry, he joked about selling his RBC shares because, if Henry leaves, the place will go to hell. Everyone laughed at that. Lots of jokes and lots of love were in the room for Henry Kroeker. If I could have that many people at my funeral, I would be lucky. Congrats, Henry.
Are they selling eggnog yet?… My old friend Amber Affair… I was at the Saturday night Keith Urban concert, just hours before fall officially arrived. Great show. Very slick. I’m not one for country pop music but Urban’s show was great. I had a chance to chat with musician Dee Ouellette who will be performing at the The Amber Affair. It’s billed as a celebration of Edmonton women in music and art. The local, all-female roster Cindy Keating will include singers/songwriters, painters, artists and designers. Cindy Keating put the event together as a unique way to get independent local female artists’ works seen and heard. Keating, Ouellette and Dani Jean will be some of the musicians; Erin Mooney and Cheryl Bozarth, along with others, will be displaying their art. Sunday, October 7th at 7:30pm at the New City, 10081 Jasper Avenue. Hurry… check out www.amberaffair.com for tickets and info.
Four decades plus… The reason I was in Grande Prairie was to host the roast for Henry Kroeker. He spent 44 years with RBC. He started as a junior clerk in 1963 in a suburb of Winnipeg and finished his run as
Kimberly Shulha, Alberta manager of public affairs for GlaxoSmithKline, called to remind me of the 2nd Annual Edmonton Homes for the Holidays Tour 2007. It supports the Junior League of Edmonton and Kids Help Phone. I remembered Home for the Holidays from my years hosting Breakfast Television in Halifax, where the event has been running for a long time. It really gets you in the holiday spirit. The tour is on from Friday, November 22nd (1-9pm) through Sunday the 25th (11am-4pm Sat/Sun) in the Glenora neighbourhood. The homes will be decked to the nines by interior designers, decorators, volunteers and local retailers. For more information and tickets, contact Chair Aggie Mikulski at 780.405.7614, or aggieandron@shaw.ca
Feedback… I wanted to thank Karen and Dennis Gobeil for their letter about my trip home to the East Coast. Here’s an excerpt: “Hi Mark…We just wanted to let you know we think every Canadian should make an effort to go to these provinces at least once in their lives and just see what this beautiful country of ours is made up of. The people there are the friendliest on earth and the seafood is to die for!! Take care and happy travels…” Nice. √ Mark Scholz, owner of MES Communications Inc. offers a variety of services including production, creative and entertainment. For more information or to suggest a story idea, email mscholz@edmontonians.com
EDMONTONIANS OCTOBER 2007
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CELEBRATING
Poll
18 STATION YEARS
With Linda Banister
I
t’s municipal election time again. On October 15th Edmontonians will elect their mayor and councilors. In 2004, Stephen Mandel was elected to the Mayor’s chair in an intense and exciting campaign. In this month’s Poll Station, we asked residents about the performance of the mayor and council, and had them identify issues that candidates should address in their election platforms.
Percentage
ARE YOU SATISFIED WITH CITY COUNCIL?
41% 32% 25%
Said they were satisfied with city council’s performance.
Said they were dissatisfied with city council’s performance.
Said they were neither satisfied or dissatisfied with city council’s performance.
To begin, respondents were asked how satisfied they were with the performance of city council since the last municipal election. Approximately one third (32 percent) of respondents were satisfied with its performance, 41 percent were dissatisfied and 25 percent were neither satisfied nor dissatisfied. Of those who were dissatisfied with council, 27 percent were concerned about the city’s infrastructure, specifically potholes; 20 percent believed council was wasting public money on useless things; 15 percent believed council had not accomplished anything; and 15 percent were dissatisfied with snow removal or street cleaning.
HOW DO YOU RATE MAYOR MANDEL’S PERFORMANCE? When specifically asked to rate the performance of Mayor Mandel, the majority (80 percent) of respondents provided a positive rating, with 19 percent rating his performance as very good or excellent. Seventeen percent believed his performance has been poor. When asked to identify the best thing that Mayor Mandel has accomplished this term, a wide variety of responses were provided. The most commonly cited accomplishment centred on his ability to develop relationships (13 percent), while less frequent mentions included the positive steps he has taken in strengthening relationships with the citizens of Edmonton, with council, and with other governments. One fifth (21 percent) of respondents felt the mayor has accomplished very little this term.
WHAT ISSUES SHOULD BE THE FOCUS OF THE NEXT TERM? Respondents were then asked to identify the issues that
Edmonton’s mayor should focus on in the next three-year term. One-quarter believed the focus should be on infrastructure or road conditions. Twenty-one percent mentioned affordable housing, and 10 percent mentioned lower taxes. Other areas of concern were public transportation, including LRT expansion, and the general upkeep of the city (five percent). Next, respondents were presented with a number of specific issues and asked to rate the importance of each to the new council. Infrastructure repair and maintenance (89 percent) and affordable housing (84 percent) were identified as being the most important issues for council to address. LRT expansion (66 percent), inner city revitalization (63 percent), and regional cooperation with surrounding municipalities (61 percent) were rated as the next level of importance. Less than half (47 percent) thought it was important for council to address urban sprawl.
SHOULD THERE BE A LIMIT ON LENGTH OF SERVICE? Finally, respondents were asked whether there should be a limit that restricts the number of terms an individual can sit on Council. More than half (52 percent) felt there should be a limit, with 42 percent of this group saying it would ensure new ideas and opinions make it on council. Twenty-nine percent felt that councilors can become complacent and limiting the number of terms would remedy this. Twenty-seven percent favoured term limits as a way of providing opportunities for other residents to serve on Council. However, more than one-third (38 percent) of respondents did not support setting limits on the number of terms someone could sit on council. Forty-two percent of this group argued that councilors doing a good job should be allowed to stay on. Others (21 percent) commented that it should be left entirely up to the electorate to decide who sits on council and for how long.
FOUNDER DICK MacLEAN
Vol. XVIII
OCTOBER 2007 No. 10
SHARON MacLEAN Publisher and Advertising Director LEANNE YOUNG Business Development
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 October election/Banister . . . . . . . . . . . . . . . . . . . .4 THE TRANSFORMERS Oops/Brost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5 Awareness/Hanlen . . . . . . . . . . . . . . . . . . . . . . . . . .5 Talking/Bradshaw . . . . . . . . . . . . . . . . . . . . . . . . . .5 Role models/Ohlhauser . . . . . . . . . . . . . . . . . . . . . .5 EDMONTONIAN IN EXILE The Southerns/Edmondson . . . . . . . . . . . . . . . . . . .6 MY E-SPACE Personal advisory groups/Rayner . . . . . . . . . . . . . . .6 FAMILY BUSINESS REPORT Cottage Wars/Wusyk . . . . . . . . . . . . . . . . . . . . . . . .7 Sara Consulting/Lauber . . . . . . . . . . . . . . . . . . . . . .8 CAFE/Lauber . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9 Machine O Matic/Lauber . . . . . . . . . . . . . . . . . . .10 Nordic Mechanical Services/Lauber . . . . . . . . . . . .10 Vet’s Sheet Metal/Lauber . . . . . . . . . . . . . . . . . . . .11 ABFI/Lauber . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12 LEADERSHIP Stormy weather/Hill . . . . . . . . . . . . . . . . . . . . . . .13 LIVELY LIFESTYLES Menu Magic/Berry . . . . . . . . . . . . . . . . . . . . . . . .14 Absolute Bodo/Bodo . . . . . . . . . . . . . . . . . . . . . . .15 BIZINTEL Civic Buzz/Norwood . . . . . . . . . . . . . . . . . . . . . . .16 BizIT 101/ Michetti . . . . . . . . . . . . . . . . . . . . . . . .16 Media Minute/Hogle . . . . . . . . . . . . . . . . . . . . . . .17 MAKING MONEY Risky Business/Hiebert . . . . . . . . . . . . . . . . . . . . . .17 COVER FEATURE Sizzling Party Photos . . . . . . . . . . . . . . . . . . . .18-19
BARB DETERS Editor
editor@edmontonians.com
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.
COLUMNISTS Linda Banister John Berry Linda Bodo Tom Bradshaw Les Brost Janet Edmondson Marty Forbes Muggsy Forbes Steffany Hanlen Ron Hiebert Bruce Hogle Greg Michetti David Norwood Larry Ohlhauser Erin Rayner Mark Scholz Nizar J. Somji FEATURE WRITERS Barb Deters Don Hill Rick Lauber Gordon Wusyk PHOTOGRAPHERS Barry Boroditsky Terry Bourque Janis Dow Yura Sklyar David Strong GRAPHIC PRODUCTION Rage Studios Inc. INFORMATION TECHNOLOGY Michetti Information Solutions Inc.
THIS MONTH’S COVER
Bruce Kirkland, Lexus Gm, Sizzlers Kendal Harazny and Alyssa Haunholter with Patrick Laforge, Edmonton Oilers president Photo by Barry Boroditsky 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 OCTOBER 2007
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Proof__ _________PROOFED BY:_______________________________________________CHANGES MADE:__________________________DATE:_________________
p Sheryl As
FirstImpressionOops
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have re-learned an important life lesson, thanks to Sheryl Asp and Irfan Qureshi. What is that lesson? Never—ever—bet the whole damn ranch on an impression. My first impression when we met in July was off the mark. Where did I go wrong? Well, it happened when I observed their communication patterns and failed to check out an assumption in the August edition of Edmontonians. I assumed that “…Sheryl’s lack of confidence and lack of appreciation for her own gifts have caused her to choose to defer to Irfan.” That’s close, but close doesn’t buy whiskey. I missed the individual internal wiring of these two. Irfan is a reactor. He is quick and super-smart and regards dead air like most folks regard quackgrass. His first thought is usually his best thought. Sheryl is a processor. She takes in information and situations for further processing and prefers to comment when her processing is complete. When she comments, she speaks with certainty.
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with Les Brost
Yes, Sheryl invites Irfan to comment, but that has little to do with a lack of confidence or self-esteem. She defers because his quick comments “buy her time” for processing. It’s not easy for reactors and processors to learn to coexist—let alone to learn this kind of subtle but effective technique. These two have done a great job of melding their personal styles, and it’s a key to their success. Unchecked assumptions block business progress and are the vinegar in the wine of personal relationships. Life becomes a heck of a lot simpler when we take the time to check out assumptions. We do that by asking questions. There is an art to asking good ones. A lot of folks know a lot about a lot of things, but a whole lot fewer know how to ask good, open-ended questions. Sheryl and Irf should be also aware of clients or associates to whom clarity is a stranger, and chaos a best friend. Those can be the “Typhoid Marys” of ambiguity
and conflict, infecting others with their own lack of clarity and addiction to chaos. Letting them set the agenda leads to conflict. We should never—ever—allow others to give us permission to stop doing what we know is the right thing to do. My assessment of Sheryl and Irf has certainly evolved from the first meeting. Yes, Sheryl has a gift. Yes, Irf is a smart and articulate man. Yes, Swish Flowers is succeeding beyond their expectations. And there is still much more to this couple. They work hard. They are coachable. They are survivors. Above all, they have the smarts and courage to define success on their terms. They will succeed. √ Les Brost is head of Southern Star Communications. Contact: lbrost@edmontonians.com
AwarenessWillingnessAction
hat does it take for any successful transformation? First, there is a nudge—an awareness—that something is not right… next, a willingness to enter the chaos of change, and third, action to anchor the changes in day-to-day routine. For the owners of Swish Flowers, what they do and how they do it, works for them. Sheryl transforms flowers into beautiful arrangements; Irf transforms minds and futures with his teaching and creative ways of doing business. It must work, because I was unable to connect with them to complete the second part of our visioning exercise. According to the experts who conduct the seminars and write the books, growth and change require those three simple elements: awareness, willingness and action. The toughest, of course, is taking action. I live and coach the benefits of knowing what you want, planning to win, and executing the plan to achieve desired results. It is really that easy. The lesson is that life always happens and things always get in the way. We make life
busy and complicated by not sticking to the plan… or believing that the distractions and dramas along the way actually matter. The exercise that I was working on with Sheryl and Irf was to first identify their own personal values, then see where they are aligned with each other’s—or not. Then, we would have advanced to the fun part… I call it ‘Personal Podium.’ You get to describe your vision in a way that means something deeply to you. I support them in uncovering what they really want in an ‘I am’ statement. As an example, here is mine: I am a financially abundant, physically fit, spiritually connected wife, stepmom, world-class speaker and performance coach. I write, travel and hold inspiring seminars that support people to identify and live their true purpose. This statement identifies me, first to myself so I can manage all the drama and distractions that show up. It then allows me to contribute to the world, in the order of my choosing. This is the order of my values in the seven main areas of life: 1-building wealth; 2-health and fitness; 3-
TalkingChoice
I
n working with this dynamic couple, I taped Sheryl as I interviewed her, and Irf as he did a presentation. After reviewing the tape, I pictured Sheryl as the regular flower person on a breakfast television show. I pictured her hosting classes in the art of creating the perfect arrangement. These activities would highlight her skills as a true artist. The classes would be a great way to find additional staff as well as revenue. Just one thing I forgot to check: Was Sheryl interested? No. There are many artists like Sheryl. Actors, as an example, while extroverts on stage or in front of the camera are, by and large, introverts. So why do they do it? Passion… celebrity is merely a by-product of the job. Most would prefer to show up, do their job, and return to real life. The ability to communicate is a standard of the job and allows them to play the role of
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with Steffany Hanlen
spirituality; 4-family; 5-vocation; 6-social; and 7-mental. This order of values changes constantly. Financial was not always on top for me. In university, my highest value was social. At this stage of my life, I see that by having a high degree of respect for money and building wealth, I can serve my higher purpose of helping people. It is part of what I have referred to as the Champions Paradox. When we start to see how our values define us, we can enter a way of living that is of our choosing. In business and life, there is always a measure of read and react—management by fire. Knowing your current order of values makes navigating change easier and transformation exciting. A compelling vision allows you create life on your own terms, instead of reacting to it. √ Steffany Hanlen is a personal performance coach who conducts The Champion Seminars. Contact shanlen@edmontonians.com
with Tom Bradshaw
extrovert when needed. Many successful CEOs can make the same claim. Sheryl enjoys the mystery of the unexplained. How does she bring her artistic vision to life? It just happens and, for Sheryl, there is no need for explanation. Irf and I could talk communication and the ability to influence using the power of the voice for hours. And we did. Joining us was Irf’s sister, a senior trade commissioner with Foreign Affairs. Her experiences added some great insight into the power of effective communication at an international level. Irf is a classic example of many gifted speakers. Their advanced level of communication and their experience over time allow them the confidence to “wing it”. Irf is experienced enough to know that, when success is on the line, you not only prepare but rehearse. Getting up and actually speaking the words, using your imagination to create an audience can be
RoleModels
was beginning to feel some stress about completing this column. I had tried several times to reconnect with Irf and Sheryl for a follow-up, but got no response from them. I thought, perhaps they chose not to make any changes in their work-life balance that we discussed… perhaps they didn’t have time to develop and implement their wellness goals. Then Sheryl called, and I was reminded that, as young entrepreneurs, they are very busy. I am encouraged to hear they both have taken the challenge and commitment to improve their health and wellness very seriously. Irf and Sheryl decided to tackle their well-being as a couple. Of the nine health factors we assessed using my process, three areas of concern required their attention and change: their weight and waist size, levels of exercise, and quality of nutrition. They developed and implemented an action plan to bring about the necessary improvements.
Irf Qures hi
incredibly informative. Tape yourself and, as you listen, start to ask questions and listen as the audience would. There is a difference between telling them what you want to say and answering those questions. Irf has the speaking ability and technical expertise to establish himself as a professional speaker in his field. Imagine your next IT convention featuring Bill Gates, Paul Allen and Irf Qureshi. Imagine having this gifted IT instructor leading your staff in the latest innovations to help increase productivity. For both Sheryl and Irf the only limit to communication success is the desire that drives them and the choices they make. √ Tom Bradshaw is the head of the Academy of Voice & Speech. Contact: tbradshaw@edmontonians.com
with Dr. Larry Ohlhauser
Sheryl not only continues with her personal trainer twice a week but, realizing this was not enough, joined a gym club and attends regularly. Irf has taken up tennis and plays three times a week with a friend. His competitive spirit is renewed and he has a buddy to offer encouragement. It had been a long time since they left the house in the morning having eaten nothing—now they have a nutritious breakfast of good carbs and protein. They take lunch to work and keep almonds close at hand so they don’t go for long hours—as they did before this process—without getting nutritious food into their systems. “You know,” Sheryl admits, “I just feel better now.” She is using visualization to reach her goal. “I see what I want to look like and I will reach my goal.” As an engaged couple, they started to think of how their work-life balance would look when children came along,
and what kind of role models they would be to them… especially regarding exercise and nutrition. Sheryl says, “I learned that I am responsible for my health. I will be able to set an example for my kids.” Irf follows with, “This is a work in progress… your model is business-like, has an accountability process, and it is fun.” In the two months since we first met, this couple has made amazing progress toward improving their health and wellness. They have taken responsibility for their health and their motive now aligns with their purpose in life. √ Dr. Larry Ohlhauser, MD, is the author of The Healthy CEO and president of Ohlhauser & Associates. Contact lohlhauuser@edmontonians.com
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Edmontonian my space IN EXILE
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By Janet Edmondson in Calgary
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ne of Calgary’s finest examples of a business family has to be the Southerns—Ron and Marg, and daughters Nancy and Linda—the brains and leadership for the ATCO group of companies and Spruce Meadows. How Ron Southern and his father started Alberta Trailer Hire in the 1940s… expanded into oilfield drilling in the ’70s… focused on utilities, power generation and logistics in the 1980s… and continue the evolution of this multinational conglomerate of companies is legendary. Mine is a more personal story. If you’ve read this column over the past 14 months, you may have sensed that this has not been an easy move to Calgary. As with any corporate transfer, we left behind family, friends, neighbours, a home and a city we love. What you might not know, is that ATCO was the company behind the move. In the spring of 2006, my husband Owen, a 28year ATCO employee, accepted a challenging new position in the Calgary head office. At a company event in Edmonton, shortly before we moved, Ron took me aside for a private chat. He obviously understood how difficult this move was going to be for me personally, and was sincerely grateful for the “sacrifices” I was making. This is the guy that runs the show—me, I’m just the wife of one of over 7000 employees. I was touched by his concern. Some time after we had moved to Calgary, he made a point of seeking me out at a dinner to make sure that things were going well and to thank me, again, for my support of the company. This, I think, is where a family based business should and, in this case, definitely does excel: in making employees feel like they are part of the larger family… celebrating success together… and supporting each other through tough times. Ron Southern’s empathetic approach to business leadership clearly has contributed to the success of this “family-based” business. √ jedmondson@edmontonians.com
For Young Entreprenuers
By Erin Rayner
Business Myth #1: Know all the answers and do everything by yourself without help ever.
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hen I started my business, I felt I needed to know all the answers to every question… that it showed inexperience to ask others how to do things. My entrepreneurial beginnings were plagued with feelings of isolation and insecurity. Thankfully, those thoughts were put to rest when I joined a personal advisory group—PAG—through the Canadian Association of Family Enterprise. PAGs, as they are fondly known, bring together people who are somehow involved with family business (as owners, spouses, siblings) for monthly discussions to support and encourage each other. One type of the group is strictly founders, some of whom are handing the business over to the next generation… another is successors only… and a third is a combination. Each group is comprised of non-competing businesses and only one member from a family. My first PAG meeting was overwhelming even though I Founder Fred T. Rayner had been told what to expect. We met over lunch Vet’s first shop and the meeting took four hours. When we first started, I realized I was one of the only founders and the one with the newest business. Everyone else had an established, thriving business… mine was still so new the ink was barely dry on my business cards. I wondered what issues these successful, confident entrepreneurs could face? Luckily, it wasn’t long before they dispelled my idea that every entrepreneur but me has a direct connection to an all-knowing, all-seeing power. We started delving into difficult professional issues ranging from the Alberta labour disadvantage to the threat of off shore production to office politics that could cost a family its relationship. It may be called a “personal” advisory group but, as any entrepreneur knows, business is personal. So we also talked through very emotional and
personal issues ranging from life threatening illness to pre-nuptial agreements to divorce. I never know what each meeting will hold—often laughter, sometimes tears, and usually immeasurable growth and relief as we share the joys, trials and challenges that we face as business owners and families in business. As the third generation of our family’s business, Vet’s Sheet Metal Ltd., my dad David reluctantly joined a PAG about 10 years ago. I think he found it very hard to “show his hand” because he usually holds his proverbial cards quite close. He grew to admire each person in the group… I think it helped him learn to share the issues he’d been trying to conquer alone. When my brother Sean and I started our succession training in earnest, we realized the importance of having a board as the intermediary between our father’s 25 to 30 years experience and our youthful exuberance. Thankfully, Dad’s involvement with the group had enabled him to be open with the succession and growth issues the business faced. So, I see my dad’s experience with a PAG as his training ground for establishing a company board of advisors—though Dad might disagree. Now PAGs are a mainstay in our family: my mother Bernadette joined a PAG last year. A number of years ago, she worked only briefly in the business and realized that, if she valued her marriage, she’d manage the home and not the company… but the business still affects her life on a daily basis. My brother Sean, who is managing Vet’s, has his own group. Dad has retired from his PAG, but I’m sure he has more insight into the retiring founder’s position to offer to successors now than before. I hope that someday my soon-tobe sister-in-law will also get to experience the support and understanding a PAG offers families in business because those who marry into the family also marry the business. √ Erin Rayner is president of ED Marketing and Communications Inc. You can submit marketing materials for review; suggest young entrepreneurs to be profiled; nominate a Top Three; or ask a business developement question. Contact erayner@edmontonians.com To read Ask Erin’s letter about company succession and her Top Three, visit edmontonians.com.
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Th eC ott ag eC on un dr um
AL SS NU SINE N h A BU 4t ILY M FA
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By Gordon Wusyk
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he Oxford definition of cottage is “a small simple house in the country”. I recently met a client who bought a “small simple house” in the Muskokas for $50K in 1976. Thirty years later, it is neither small nor simple… and the village at the lake looks more like a small city. The cottage/cabin is now valued at $550K. It is not the principle residence of the owners so, if they sell it or pass it on to their four children, they will be forced to pay tax on a capital gain of $500,000 amounting to $100,000—twice its original purchase price. Here in Alberta, this issue is exploding and becoming one of the most divisive family estate issues that comes up after parents pass away. The issue is taxing in other ways as well: Relationships and siblings break up over who takes ownership… the opposite of what the parents wanted to see happens. The matter can be even more complex if the property is a vacation home or a second residence outside the country. Many Canadians now own in places such as Palm Springs and Phoenix where the U.S. government has its set of tax rules… or in Mexico and other countries where rules differ yet again. A recreational property can be a more emotional affair than the dispositions of the family home or even the family business. The home usually triggers no tax and the business has often provided employment and careers for those members who are actively involved. But the “weekend” retreat is often where children have developed some of their most cherished memories—that’s why most parents want to keep it in the family. However tax laws, sibling personalities, and their moves far away can make keeping the cottage difficult and expensive. In one family, a son lives in Nova Scotia and will never use the property… the second thinks the cabin is a periodic beer commercial… the eldest finds it a therapeutic retreat… the only daughter— the current caregiver to their mother whose health is deteriorating—feels she has earned the rights of ownership and wants to eventually build her private, domestic residence on this pristine site. Sounds like the ingredients for a robust debate to me. Oh, by the way, the property is now valued at $300K and
was purchased for about $15K four decades ago, creating a potential tax of approximately $60K. This has now become a very real human issue and not just a tax issue, because of the fond memories and family history. The value is rapidly rising and not all members have similar financial means or an interest in the property. This emotional scenario need not have happened, and the consequences of tax on a rapidly appreciating asset could have been foreseen, funded and structured much more effectively. Hindsight is such a wonderful and sometimes useless tool. The parents could have gifted the property to the children early on, passing the growth in value on to them… or sold it to them with a mortgage or a promissory note to ease the burden. The parents could, in some case, designate this recreational site as their principle residence to avoid the tax entirely on a sale or a gift to the children. There are specific rules that must be followed to enjoy the tax-free “principle residence” status.
The ownership also could have been transferred to a living trust or to a family holding company where children could own shares, and be governed by an agreement on the property’s use, covering how they would share expenses, taxes, maintenance, additions, and schedule activities/occupancy. Whether the parents should consider passing the cottage to children during their life time or at death requires reviewing the pluses and minuses of both options. These also are some nontechnical issues which should be addressed: Do all the kids want the cottage? If not, maybe those who do, should bid on it? How will the siblings relate in the future? Maybe they can’t share the asset any more. What if one of the kids has a divorce? Would the cottage form part of a matrimonial settlement? Has the family designed a values or mission statement about this type of “family heirloom” and become stewards for the next generation?
Do we want family members with low incomes to be held captive by those who become successful financially? This is where greed and need can begin to compete. It is possible to minimize the tax issues and maximize the peace of mind of parents and create harmony within the family: A careful and thoughtful communication must take place within what I call a Family Council*—which involves the input of competent technical advisors who know the rules of the cottage tax game and can explain the options in language the family can understand. Some tips to avoid “cottage wars” might include: • Plan for tax bite. A cottage is a subject to capital gains which can be funded very efficiently with joint lastto-die insurance contracts and other tools. • Set up a cottage fund to share expenses if capital is available. • Prepare a written co-ownership document for cottage shares, outlining rights and responsibilities of each user as well as fair exit strategies. • Agree to a sharing schedule. Don’t assume you can just drop by whenever. • Decide if guest vacationers are allowed or if rental is appropriate. • Consider creative alternatives such as life insurance, principle residence status, multiple dwellings or in-law suites to extend the length of ownership or offset taxes. Families who can successfully navigate through the issues surrounding the cottages, cabins or recreational second residences will often have established the ground work for successful subsequent dealings with the biggest asset—the family business itself. Communicate, communicate, communicate and you may avoid the Hatfield-McCoy scenario. Leave a legacy and not a mess. The “cottage” issue is a good place to start. √ *Family Council: A board of directors for the family where relational issues can be discussed that impact the family and the business.
For more information on family business issues and a copy of Beyond Survival, contact Gordon Wusyk at Predictable Futures Inc. at 780.702.2499.
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Tim, Kim, Gail and Paul Murphy Photo by Terry Bourque
A small taste of
pants, white shirt and black apron are immediately identifiable. This provides wardrobe consistency among Sara’s demonstration staff while promoting a positive corporate image. “Demonstrators are qualified food handlers… they have to take a safety certification food handling course. They don’t just slice, dice and here you go,” says Paul. “There are particular sanitary procedures that they must follow, so really now they’re a marketer and presenter to consumers.” In addition, food demonstrators must always remain cognizant of other safety factors… an appliance extension cord could pose a tripping hazard, an unattended hot griddle could burn small hands, and certain foods can cause allergic reactions. And they must make a positive first impression—quickly. “You have to engage the client, you have to educate them and you have to convert them—and you’ve got about 20 seconds to do that,” according to Paul. When it comes to making and keeping positive impressions, the Murphys know all about them. As the story goes, it all began “over a bottle of whiskey at a Red Deer agricultural show. We sat with a couple of people who thought we should invest in cattle. One thing led to another… we had ourselves a prize bull who had some offspring and one of those offspring was quite the little lady and we had to give her a name.” The couple selected “Sara” and the calf grew to win “top prize at a stock show,” remembers Paul. Based on that experiment’s success, the name was deemed lucky for their business. Sara Consulting & Promotions has grown as a family business. The Murphys work together. “Our son, Tim, is involved and he’s one heck of a marketer. He could sell cows. Our daughter, Kim, looks after our distribution and works part-time,” says the proud father. What might be considered close quarters is rarely a problem: “Each family member has a role to play and a definite job description.” The end result is a “neat little business opportunity for all four of us.” And working together is a positive experience, for the most part. “There’s a lot of trust… confidence… arguments.” Despite occasional disagreements, mother and father wouldn’t have it any other way. “As a family unit in business, you can never fall out of love together. You might have a disagreement but, at some point, you get back on the road and focus on what the job’s going to be.” The younger Murphys don’t receive any special treatment from Mom and Dad. “If somebody screws up, there will be a closed-door meeting.” And neither of the younger generation should automatically expect to earn the keys to the corporate office. When the time comes for succession, it will be a choice—not an obligation. Furthermore, Paul believes both adult children should earn this right. “They’re paying their dues in every respect and that’s foremost for us in succession planning.” With 23 years of company involvement—being available around the clock to attend to client concerns—behind them, the time to hang up the demonstration aprons may soon come for Gail and Paul Murphy. Over the years, they’ve been a key part of trade shows, grand openings and commercial anniversaries. They will have earned their retirement. Leaving the business in the hands of their capable children would not be a “cowardly” decision to make. √
Big Business By Rick Lauber
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t’s truly a story of taking the bull by the horns. Gail and Paul Murphy of Sara Consulting & Promotions Inc. now lead the way in the food demonstration business. The company that started humbly out of Gail’s garage now nets $10 million in annual sales. “The gist of our business is the in-store sampling program,” explains Paul. The term may be unfamiliar; however, you have certainly seen and/or been approached by food demonstrators in your local supermarket. Often balancing a tray filled with small sampling cups, they politely offer food samples—a cube of sharp cheddar cheese… a forkful of Spanish rice… a perfectly-sliced Gala apple wedge—to passers-by. They are on-hand to actively promote a specific product or to exhibit a culinary tool, sometimes offering coupon discounts. But, it takes far more than a pleasant smile and social demeanor to succeed as a food demonstrator. Sara representatives are required to dress in a certain uniform: The black
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Guess who’s coming to dinner?
By Rick Lauber
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amilies in business often need an extra place at the dinner table—for the business itself. The uninvited omnipresence can cause rifts between marriage partners and/or other family members who are directly or indirectly involved with the company. But, there are ways to maintain harmony. Bringing business home is just one of many challenges facing today’s entrepreneurial families. “I think that a lot of families in business will tell you that there’s always an additional member of the family and that’s the business itself,” confirms Anita Lehmann, executive director of Edmonton’s chapter of the Canadian Association of Family Enterprises (CAFE). She knows the home and the business should remain, whenever possible, as separate entities for the sake of all parties. The local chapter of CAFE is one of 15 branch offices located across Canada. It has operated since 1992 and is now 65 members strong. CAFE, originally founded in 1983, exists to teach and help business families handle a variety of concerns, specific to their circumstances. According to Lehmann, who has managed the chapter for the past five years, “CAFE is really a unique national organization in that we provide resources, support and mentoring opportunities to the family business community and their advisors. It’s a learning opportunity for all… we bring families in business together at a peer-to-peer level so that they can mentor and talk to one another about the issues pretty unique and specific to families in business. The industries may differ, but the challenges faced by families in business are all very similar.” CAFE members can attend monthly seminars where presenters speak on issues: separating dining room from boardroom plus “…things like succession planning, tax planning, how to create a board of directors, how to run a family council [and] some HR topics. We call them awareness events because you could spend a day on any one of those topics… talking and learning about them,” explains Lehmann. The cost of attending these seminars is covered in the membership fee, set at $715.50 annually.
NEW AWARD In addition to recognizing potential “red flag” issues, CAFE also recognizes and honours its own. To that end, the local chapter will host the upcoming Grant Thornton Achievement Award for the CAFE Edmonton Family Enterprise of the Year. “We’re now able to include this family business award in our programming, partly because of this sponsorship funding.” Lehmann continues, “CAFE Edmonton will have a family business of the year and the award recognizes significant achievement made within a
Canadian family enterprise, acknowledging the importance of the family business in today’s changing economy…” In considering some statistics, “over 70 percent of new jobs are created by family business. Over 50 percent of the Canadian workforce is employed by family business… this award is to recognize the achievements of some of those businesses—just because they do play such an important part keeping us going in Canada.” The award will be presented on Monday, October 22nd at the Sutton Place Hotel during CAFE’s annual gala event*. On that night, one local family business will be recognized by its peers. The nomination process was kept internal; CAFE Edmonton members were invited to suggest their colleagues based on a number of criteria including company development, revenue growth, family involvement within the business, innovation and corporate image. The finalists are Kevin and Belinda Lang of Machine-O-Matic, John Cloutier of Nordic Mechanical Services and Sean Rayner of Vet’s Sheet Metal. Whoever walks home with the crown that evening should feel immensely proud explains Lehmann. “I think it’s really significant to win an award like this because you’re nominated by your peers… other families in business who recognize the contribution that your business is making, the way that you run your business… and that you’re an example to other businesses in the Edmonton community.” This month’s awards night should serve to bring further awareness to both CAFE and its clients. “CAFE is one of the best-kept secrets in the family business community—not only in Edmonton but across the country—and families in business should know that there are often a lot of resources out there for them.” Such entrepreneurs can be helped both personally and professionally and that extra chair at the dinner table could be used by a far more Anita Lehmann, welcome guest. √ executive director of Edmonton’s *The 2007 CAFE Break a Plate Gala Event also chapter of CAFE will feature founder Yianni Psalios and his son Theo of Koutouki Restaurants. The event is open to Photo by Terry Bourque non-members as well. Tickets are $100 each, table of eight is $750. Contact edmonton@cafecanada.ca or phone 780.484.4484.
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out from projects so that he still has a good lifestyle in retirement. He wants to make sure his ‘baby’ is still running well… so we had to set out what we needed to do.” Through taking the Roadmaps program at the Alberta Business Family Institute and attending workshops through the Canadian Association of Family Enterprise (CAFE), the younger Langs learned what they needed to know and what to expect. The process continues. Not only were there corporate policies, goal-setting, industry specifics and much more to learn, the son and daughter also had to learn to function together in the workplace. True, both had grown up with the business and worked there in their younger years; however, cleaning and shipping of parts ranks nowhere close to functioning together as an effective management team. Before striding confidently into their new offices, Kevin and Belinda tread carefully. “We weren’t sure we would work well together because we’re very different people,” admits Belinda. “Yet somehow, the combination of our different personalities I think really works well for the business. I’m more task-oriented, getting structure in place, getting procedures and plans written out and all that, while Kevin’s more visionary-looking.” Another key aspect was learning how to move ahead in much different times. The family has struggled with company growth. In thinking of his father, Kevin laughs, “I think we’ve taken the company beyond his expectations and now he’s worried.” Managing growth has particular challenges, but the short-term future of Machine O Matic holds tremendous promise. That transition process began four years ago when Machine O Matic partnered with The United Way’s Tools for Schools program. Two framed plaques, hung in the front lobby, recognize the contributions of the staff, consistently topping $10,000. An admirable effort from a staff of only 20, with company management matching all donations gathered. The possibility of winning the Grant Thornton Family Enterprise of the Year award excites the younger Langs as it provides recognition for what their family has accomplished. It would be “justification for all the work that we’re doing and it’s kinda neat,” smiles Kevin. √
Kevin and Belinda Lang
d e l i o l l e W A
MACHINE By Rick Lauber
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uch like the custom parts they help to produce, Kevin and Belinda Lang are reinforcing the foundation of a very successful family business. The brother and sister team of Kevin and Belinda Lang is taking over the reins of Machine O Matic described as “a turnkey small parts manufacturing company.” Machine O Matic caters primarily to the oil and natural gas industry. “We specialize in machining large quantities of components out of a variety of metals and plastics that go into larger assemblies.” Clients needing 100 widgets, for example, will provide the design plans to Machine O Matic for manufacturing. Father Albrecht, who founded the company in 1991, is stepping down. This decision was made a number of years ago with son and daughter being named as successors. “We had a five-year plan set out and this is year four and a little bit, so it will be next summer when the succession will be officially finalized,” explains Kevin. The gradual process has allowed time for learning and adjusting… on all parts. Change, as one might expect, hasn’t always been easy, specifically for the company founder. “There are a lot of things we had to set in place to make sure that Dad can step
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Successful Entrepreneu
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ttention all staff … it’s Alison’s birthday and this is a message to get together to have some birthday cake!” To the casual business visitor, such an announcement might be surprising; however, such broadcasts are commonplace throughout the office quarters of Nordic Mechanical Services Ltd. Marking and celebrating significant days and occasions for his staff is top of mind for John Cloutier, company president. Whether it’s a birth or a birthday, a wedding or an anniversary, such times are special and should be duly noted, he believes. In addition, he recognizes the needs of the local community and explains that his company does “a lot of work with nonprofit organizations. We support the YMCA, Alberta Diabetes Association, Youth Emergency Shelters, the Canadian National Institute for the Blind [and] the Humane Society.” Nordic Mechanical Services, from its one location in south Edmonton, provides heating, ventilation, air conditioning and refrigeration services. Such mechanisms do break down and servicing can be costly, specifically to a non-profit agency. There is little warning to mechanical failures and “…when they have unforeseen breakdowns, it causes them financial damage… we are able to flat line their costs and proactively prevent monitor breakdowns.” Giving back, when and where possible, is all part of gaining corporate success for Cloutier. “I think that being part of the community is very important.” By extension, he believes, that includes clients and company personnel. Community service plays a key role in the evaluation process for the CAFE Edmonton Family Enterprise of the Year: other criteria include revenue growth, company development, environmental initiatives and family involvement in the business. When it comes to the family involvement category, the judging committee will consider past, present and future familial participation, specifically in the area of succession planning. Cloutier remains as the first generation family member to own his company and should easily have a good number of more years before stepping down. Still, a plan, involving his son, has been drawn up. “Rene has a degree in business… hopefully, he can grow to take over. He works for us full-time. He is only 23—there are many years to come and many experiences to be had before that final decision is made.” With time on their side, father and
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so tim be wo me he dis sep De he tre en bu typ inv bu of wo go are the tire ve the wh un the say
(left to right) Sean and David Rayner Photo by Terry Bourque
neurship:
ece of cake By Rick Lauber
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son have not yet written that final decision in stone. When the time comes though, it will be a joint decision; succession will be Rene’s choice and not an obligation. It’s interesting to note that Cloutier and his son consciously work at arm’s length from one another; “He doesn’t work for me. He has never reported to me. He has worked here since he was 14. He will probably never report to me…” Keeping a distance keeps the family and the family business entities separate, meaning life at home can run more smoothly. Despite not directly overseeing his son’s work, Cloutier knows he is gaining invaluable experience and company knowledge. With being involved first-hand, Rene is learning the tremendous work and commitment involved with being an entrepreneur. He is also understanding the impact of a family business. “There are typically spouses involved in the business and the rest of the family wonders what’s going on when they aren’t around… and they are stressed and tired, but to me it’s very important that the family realizes what they have undertaken and some of the sacrifices and gains”, says Cloutier. √
o e
John Cloutier d
Rare fourth-generation
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Succession
s taking on management of a company with an 85year history beneficial or detrimental? Ask Sean Rayner that question and he’ll say, “Both.” Rayner, president of Vet’s Sheet Metal Ltd., explains that, with the longevity involved with his corporate history, “There is a reputation… an association with stability and long-term success just because we’ve been around for so long. And, it’s a name that the majority of people in the various industries that we serve are very familiar with.” Along with that reputation, Rayner manages a staff of long-term employees. “We’ve got people here–I can name three people who have 90 years experience [among them] and there’s more 20-year people on top of that. So there’s a lot of people who found their home in Vet’s and just stayed.” History, however, isn’t always good. Conversely, “I’ve also got 85 years worth of baggage. You inherit the culture of the business, whether you like it or not, because that doesn’t change overnight.” The company serves the industrial marketplace… “Industrial ventilation. We service that side of the business… we service companies like general and mechanical contractors,” explains Rayner. There is also some creativity involved with the company’s work. “On the custom sheet metal manufacturing side, we can make just about anything that you can imagine or visualize out of a sheet of metal… electronic enclosures to troughs and drip pans and all kinds of neat stuff.” Shoppers visiting Southgate Mall and Millwoods Town Centre may have seen the futuristic mall directories which were manufactured by Vet’s. The company also serves as an interesting history lesson itself. “Vet’s is actually from the word ‘veterans’… it was
By Rick Lauber
started by my great-grandfather, Fred Rayner, and he was a World War I veteran. So most of the other people who worked here in the first years of the business were also veterans.” Rayner is now the fourth generation family member to sit in the president’s chair, succeeding his father, David. There aren’t that many statistics on fourth-generation successors in Canada, simply because these are quite rare. By the numbers, 70 percent of Canadian family businesses do not survive the transition to a second generation, and 90 percent do not last to a third generation. In part, it is the company’s longevity that earned it a nomination for the local Family Enterprise of the Year award. As a family member, Sean Rayner has been involved with the family business for a lifetime; however, he has only recently stepped into the management role. “It’ll be three years running the business in January so I basically came back and spent eight or 10 months working in the business and figuring out if it was something I could see myself doing on a full-time basis and whether I was up to the challenge,” he says. Rayner is not completely running his own ship yet with Vet’s Sheet Metal Ltd. … “I report to my father, basically as a banker. It’s a friendly banking arrangement and he’s a member of our board of advisors.” Open and continued communication is critical in passing the corporate torch, stresses Rayner. “I think if you’re going to go through the succession process, the most valuable and important piece of information I could pass along would be to talk about it a long time in advance… “Make sure that everyone’s expectations are clear,” says Rayner. √
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Off the
Beaten Path Jim Henderson Photo by Terry Bourque
By Rick Lauber
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here will be fewer echoes within the long— and near—vacant Hudson’s Bay building downtown. Jim Henderson and the staff of the Alberta Business Family Institute are among the first new occupants in the re-purposed property—now called the Enterprise Centre. In 2005, the landmark was purchased by the University of Alberta which designated the space for a variety of campus departments with a focus on business incubation and development. ABFI operates through the university’s School of Business. Amid the current dust and debris of reconstruction, Henderson manages the institute as the new executive director. He holds his BA and his MBA plus has been recognized as a member of the FCA—Fellow of Chartered Accountants. He also is well-travelled. Originally from Stonewall, Manitoba, he has served as president of the Grande Prairie Regional College, vice-president of Grant MacEwan College and vice-president of Fort McMurray’s Keyano College. He’s no stranger to Edmonton—now back for the third time. “I think there’s a message here for us. This must be the place for us,” he jokes. The institute works with business families to help teach them the intangibles, rather than the tangibles, of running a successful operation. “I think the biggest thing that our clients expect to learn is the soft side of being in a family: decision-making, learning how to communicate and make a decision that is in the best interests of the family,” explains Henderson. “Apparently, more than half of the problems encountered are not anything to do with law or tax or any of the hard sciences. Most of it is the emotional. Most of it is decision-making and communication.” He cites the example of succession planning as an area far too often overlooked in the initial planning, opening and operating of a family business. The decision may have been silently made but never openly discussed. “Dad decides that the oldest son is going to take over. Whoever said the oldest son is the one capable of taking over and running the place? Maybe it’s the eldest daughter. Maybe, in fact, it shouldn’t be either. Maybe the siblings can’t get along and there should be some other decision-making structure that would help them… There’s very good examples of families that cannot get along in decision-making so they find a way of setting up an advisory board or bring in external people to help lead some semblance of order.” 12
Jim Henderson and Bob Clark
Creating Pathways for Entrepreneurial Families ABFI’s partners in the project include the Agriculture & Food Council, Alberta Council of Technologies, Alberta Financial Services Corporation, Community Futures Offices, Canadian Association of Family Enterprise and Centre for Entrepreneurship and Family Enterprise. Implementation of Creating Pathways for Entrepreneurial Families is expected to have a number of positive results: • More young people will choose to stay and build their futures in rural Alberta; • More rural family businesses will be able to transfer successfully from one generation to the next; • There will be greater availability of highly skilled and trained people to work in and lead business initiatives in rural communities; • Leadership in business families will be strengthened. There will also be increased retention of that leadership as it is passed on; • There will be increased access to quality and relevant business education in rural Alberta, particularly through the hubs; • There will be increased diversity of employment opportunities in rural Alberta; and • There will be more collaborative networks and regional partnerships supporting rural development.
To prove his point, he recounts a recent instance. “I talked to a family where the father said, ‘Well, we’ve got things worked out just fine. We’re passing the business on to our children; our children are paying us so much a year to buy it out and it’s working out just fine.’” It wasn’t. During the discussion, Henderson glanced over the man’s shoulder and “…one of the siblings behind the father was shaking his head.” ABFI provides insights on the dynamics of business families. “We run programs in support of the youth who look to be leaders in the family business in the future. We also run programs for the current leaders of the families, and we run programs for the advisories of those families,” explains Henderson. The workshops, seminars and courses—including its renowned Roadmaps program— range in price from $25 to $2500—a few hours or a few days. Classes are typically kept small, purposefully, to build trust. “People don’t want to open up if there’s any doubt about whether it stays in the room. You can’t get a large group and do that… a group of 10 is very often the size you want.” This training is supplemented by a referral department that helps match business families with sources within the community or within professions, a resource library, an email hotline and a mentorship team. “Our mentorship team is a group of individuals—no set number, but we have five at the moment—all of whom have had senior business experience in industry. So if someone calls and says, ‘I’ve got a problem and need to talk to someone,’ these individuals have volunteered that they will sit down—for a short time anyways—with the families, talk to them and give them some ideas on how to go about straightening out some of the concerns they have.” Among Henderson’s experts are Bill Grace from PriceWaterhouseCoopers and Gord Tallman from the Royal Bank. With just four months at the helm, Henderson has faced a steep learning curve but has managed this well. He has analyzed course content, considered expanding his client base plus evaluated his mentorship team and instructors. He has questioned the institute’s own future, “How do I make it a self-sustaining program so that people in other communities can carry on without us?”
FROM ROADMAPS TO PATHWAYS On the subject of those “other communities,” Henderson responded to a call for proposals to access the $100-million Rural Alberta’s Development Fund. “They put out a call for expressions of interest and that call set out a number of criteria: Things that they were looking for in any proposals… like the quality of life, healthcare, innovative learning, education, health. Things that would make rural communities grow and thrive and be that much better.” Henderson’s bid was approved and ABFI will receive $1.5 million over the next three years to help rural, family owned small businesses in Alberta successfully transfer expertise and assets from one owner to another. “This is a great project. The Board is confident it will enable many rural entrepreneurs, particularly young people, to get the training and support they need to stay and build a future in rural communities,” says Bob Clark, RADF chair. Family enterprises are the largest and most significant group of business owners in rural Alberta. Of the more than 45,000 small businesses in rural Alberta, most are very small with five or fewer employees. Those that wish to transfer their business to the next generation often lack the knowledge to do it well. RADF selected Henderson’s Creating Pathways for Entrepreneurial Families project to fill that void. ABFI will deliver project components through community hubs and communication vehicles like the SuperNet. Training hubs will be set up in areas that have the heaviest concentration of family operated small businesses. Grande Prairie and Lethbridge are expected to be operational by next summer. “Funding allows us to promote economic development in rural communities, build community capacity, expand learning and skill development and provide opportunities for rural youth,” explains Henderson. The main goal is to create sustainability across rural Alberta by assisting rural family enterprises, including farm families, and their advisors to develop and implement strategies for the future. As always, particular focus will be placed on good succession planning. Another major component is knowledge transfer: RADF Managing Director Terry Keyko notes that training local professionals and service providers to be mentors, teachers and delivering on-going education in local communities was an attractive feature of the funding application. “Over time, this will build a stockpile of expertise and resources right where they are needed.” For Alberta’s family businesses to continue to thrive and maintain their strong community ties, it is vital that family members plan and openly communicate their wishes now, rather than later. Otherwise—like the echoes in the onceempty Hudson’s Bay building—there may be no one to fulfill hear the dreams and aspirations, from one generation to the next. √ EDMONTONIANS OCTOBER 2007
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THE 4th QUARTER:
By Don Hill
I
do not want to be right about this. The turbulence in the financial markets, of late, remains cause for concern. But more troubling is the undermining of confidence, the nagging sense that all is not what it appears to be—that there’s something very wrong with the way business is accounted for on the stock exchanges. You have every right to feel this way. A lesson from recent history bears repeating—a cautionary tale about ‘spin’ and statistics. I want to take you back to 1989. It is a pivotal year. The Berlin Wall came down and, shortly thereafter, the Soviet Union failed. This came as a shock to many powerful people who should have known better. Condoleeza Rice, for one, who at the time was the White House’s counsel on Soviet affairs, failed to see the imminent collapse of the so-called ‘evil empire,’ although, in hindsight it was readily apparent to anyone who lived in the country that things were not quite up to their billing. Here’s what happened: Soviet central planners in Moscow used statistics supplied to them by bureaucrats and their consultants hither and yon. The bureaucrats told their bosses what they wanted to hear. And those numbers were plugged into Moscow’s spreadsheets as facts. So it was not uncommon for Soviet central planners to declare bumper crops in areas of drought. Expert authorities, such as Ms. Rice and others supposedly in the know, were snowed because they failed to question the veracity of the original numbers used to create Soviet financial reports.
WHY NUMBERS MATTER You may have missed the story in the financial pages, but a year ago, last March, the Federal Reserve in the United States stopped reporting a key statistic, a measurement called the M3, one of three key indicators of how much money is in circulation. Before I make my point, you need to know that the M1 reports how much currency is swishing around in pockets, in bank accounts, and in any demand deposit against which cheques can be written. The M2 takes into account all of the M1, savings accounts, balances in mutual funds, and so-called ‘time deposits’ of less than a hundred thousand dollars. “But that is all small potatoes,” explained Tim McMahon in an editorial he wrote for the Financial Trend Indicator, because the “M3 includes all of M2
(which includes M1) plus large-denomination ($100,000 or more) time deposits, balances in institutional money funds, repurchase liabilities issued by depository institutions, and Eurodollars held by U.S. residents at foreign branches of U.S. banks and at all banks in the United Kingdom and Canada. “In other words, M3 tracks what the big boys are doing with the money,” he concluded, with the dire warning that since this key indicator, the M3, is no longer reported by the Federal Reserve it enables a whole whack of dollars to be printed without the encumbrance of ever having to immediately account for it. Noting that “inflation and the money supply are very tightly integrated,” McMahon, among others I pay close attention to, predicts that a substantial run up of inflation is to be expected.
DON’T ASK, DON’T TELL I hear things, sometimes in confidence, so I must mask the identity of one of my sources, a market analyst who recently left one of the premiere ratings agencies in the United States. He no longer trusts the numbers, he said, which are used to grade investments. Not because his colleagues are involved in anything illegal, but “they are not completely forthright,” about what they do not know. If the stock market hiccup in August has a lesson to teach it is you cannot expect investors to believe in the value of any enterprise—over the long term— without credible numbers. And right now, questions are being asked about the companies and the expertise that determine and report those numbers; a particular sore point is how derivatives are rated (more on that in a moment). The credit-ratings agency my source worked for (there are two of major consequence in the investment world) “has a stable of economists” over 60, some highly-regarded in financial circles. “Over the last year,” he said, his face darkening, “a quarter of these guys have either quit the business or gone elsewhere.” Why? I asked. “The next few months will tell,” he said.
destruction,” the great cloud of unknowing which fogs the financial markets. The derivatives business, in particular, the value of options, futures and swaps, depends upon an underlying asset, currency, or interest rate, and in practice, should have been a fine investment had the principle ratings agencies assessed the entire money trail (literally, where the buck stops and who pays back that buck) before declaring their worthiness. But they didn’t. And it is just a matter of time before we get to pay for these sins of omission—that’s right— you and me. Albertans face the prospect of a double financial whammy. While our economy is hot thanks to the insatiable demand for petroleum, we cannot set the interest rates that determine the price of money we must borrow to build our homes, our businesses, our future. If inflation takes off, as some analysts propose, very soon the purchasing power of a dollar will diminish at the very same time the costs of borrowing escalate—thanks to a liquidity credit squeeze, a consequence of the sub-prime fiasco. There is a workaround. Albertans, slammed by the financial maelstrom of the 1930s, realized they needed a system of banking and investment sensitive to their particular needs; the provincial government of the day created the Alberta Treasury Branch; it was smart to do so. Make of this what you will. Our present provincial government is flush with your cash. We have the means to soften a financial storm that may well be heading our way. That said, I want to be utterly wrong about the forecast. The next financial quarter will be the one to watch. √
FOLLOW THE MONEY
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.
It now appears to be a shell game at best, and no lesser luminary than Warren Buffet said as much, when he declared derivatives the “weapons of financial
For more details visit: www.ckua.com and www.appropriate-entertainment.com
Register your 2008 Gala Charity Event Now: Dealine October 31st
EDMONTONIANS OCTOBER 2007
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lifestyles LIVELY
MENU
Magic with Chef John Berry
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or me, some of the best times cooking have been over an open fire in the middle of nowhere. The food just seems to taste better when it comes right off the grill. So it was with great delight that I bundled up my family and fishing gear, and headed to the City Centre Airport to board Air Mikisew’s flight to Fort Chipewyan in the nether reaches of Alberta on Lake Athabasca. It’s our province’s oldest settlement, dating back 210
years plus, and home to the Athabasca Cree and Chipewyan tribes. I must admit that I’ve fallen in love with the place. It’s teeming with history; the fishing is superb, and the lodge quaint. But it’s the remoteness and the people that make this hidden gem a tourist destination, a must see for every Albertan. I’ve had the honour of cooking at the lodge for Air Mikisew Sport Fishing, and for some of the elders. There’s nothing like fresh walleye on the skillet. And that’s what we were after. So we got aboard Air Mikisew Sport Fishing’s Cessna 180 on floats and headed 20 air minutes out of Fort Chip to Barrow Lake. The only way in was by plane—everything you plan to eat, drink and wear, along with all of your tackle and fishing gear has to come with you and go out at the end of the trip. The logistics of planning such a trip can be trying, because once that plane lifts off after leaving you on the dock near your wilderness cabin, you’re on your own. No electricity, no phone, no cell service, no running water— true wilderness camping at its best. Actually, it was like the Hilton experience of the outdoors. Our cabin came with bunk beds to sleep five, and a great screened-in veranda that served as the kitchen. We had an old gas range and oven circa 1949 converted to propane. The propane fridge with a
Roughing it! small freezer compartment kept us in ice cubes for the scotch. After carting our supplies and gear into the cabin, and spying the outhouse, my 16-year old daughter Ashley sighed heavily, “Oh my God, Dad, what have you done to us?” I tried in vain to explain to her that this was a great way to live just like Grandma and Grandpa did after they were married on the farm in Athabasca… what a wonderful life experience this would be… not to mention world class fishing all around us. I headed to the kitchen to get everything set up. She did bring her Harry Potter book so all was not lost. The occasional mouse would pop out just to see what was on the menu that night, and we were warned a small black bear would frequent camp looking for handouts, so I knew we were in for an adventure. The bear never did show up, but my wife Myrna set an extra spot at the table for him just in case. Ashley did not see the humour in this at all. However, the fishing was truly spectacular. Every second cast, we were getting fish. And much to Ashley’s delight, she caught the largest walleye each day. Myrna caught the most fish, and I was relegated to catching the smallest fish: a four inch Northern Pike. The lure it hit was bigger than the fish itself. I did manage to land a 10-pounder during the week. That made my trip. We kept only one legal-sized walleye each day. That fed the three of us for breakfast and supper. The rest got a kiss on the snout and off they went to live another day. Air Mikisew Sport Fishing aggressively promotes catch and release. In this pristine setting, that’s the way it should be so my daughter and her children can travel to Barrow and enjoy the same thrills we had catching fish. If fishing isn’t your thing, the scenery alone is worth the trip. Being on the Canadian Shield with eagles, beavers and moose as your companions is a wonder to behold. Granite
cliffs of 100 feet or more and majestic pines, many of which were 100 years old, towered above us. We didn’t need a radio or CD player. We listened to the songs of the wind in the trees and the rhythm of the waves hitting the shore. There was the constant solo of a loon on the lake. A symphony of Mother Nature. I have never been at more peace or one with the land before. Who needs creature comforts? By the middle of the week, we had discovered an outdoor shower had been set up. Fill the tin water reservoir in the morning and by night the water was as warm as you’d find at home. I had redeemed myself in Ashley’s eyes. And thank God for Harry Potter. If you are looking to give your family a wonderful wilderness experience, check out www.mikisewsportfishing.com. It’s a trip of a lifetime for any outdoor enthusiast.
JOHN’S COATING FOR FRESH WALLEYE 1 C flour 4 Tbs. Montreal Chicken Spice 1 Tbs. garlic granules 1 tsp. onion powder ½ tsp. crushed chili pepper salt and pepper Combine all ingredients in a Ziplock bag. Shake well to mix thoroughly. Drop one fillet in the bag at a time. Shake until coated. Melt 1 Tbs. butter or margarine in the frying pan. Lay fish in pan and pan fry until golden brown. Chef’s Note: This is a very basic coating and works well even with chicken and an egg wash. If you want to experiment, try adding dill or tarragon or whatever strikes your fancy. √ Contact Chef John Berry at jberry@edmontonians.com
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EDMONTONIANS OCTOBER 2007
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with Linda Bodo August 2000 In the distance, a dust storm spirals in deliberate funnels, gradually towering to the sky, silently vanishing into a peppery cloud. The naked heads of three young bald eagles peer down from a massive nest erected on a light tower. Honey hued wheat fields change nap with the gentle persuasion of the wind as the ebony highway scissors the toasted landscape. Shards of sunlight penetrate a forest canopy, waking drowsy wildflowers quivering with bees. A cemetery of tumbled stone lies silently under a mountain’s shadow. Pencil thin cypress trees sweep down to orchards that lead to rivers flowing through cities, then disappear into azure oceans bordered by sable sand and salt cured seashells…
Trailers for Sale or Rent horsepower and squeal to a halt on a dime with its almighty Jacob engine brakes. It became apparent that my vacations had been hijacked by a bus and I would never experience the joys of room service again. Somewhere along the way I joined the throngs of RV enthusiasts who travel in a house on wheels. Owning or renting an RV has become a popular option for those who seek adventure on the road. It is estimated that over eight million motor homes roam North America, with baby boomers occupying the fastest growing segment of the market. One in every 12 vehicle-owning households process a Class A, B, or C motorhome, a conversion van, travel trailer, camper or fifth wheel travel trailer. It is estimated that RVs are a $15.75-billion dollar a year industry.
RVing is the perfect way to reconnect with family. Oh, and don’t forget Fido. He deserves a vacation from the daily grind too. Besides, he’d way rather hang out with you than the good folks at the boarding kennel. Even with rising gas prices, RV travel offers a less expensive holiday alternative by combining air travel, car rental, accommodations and meals all in one. Fully equipped kitchens and baths, air conditioned bedrooms, satellite TV and Internet services offer today’s RVers all the amenities of home. Slide outs expand living spaces at the touch of a button and cargo bays store all the antiques and rocks you have amassed along the way. The greatest aspect of travelling by recreational vehicle comes at the end of the day. Sleeping in your own bed. Nothing beats that.
The typical RVer will travel 7000 miles annually over the course of 28 to 35 days. The journey of discovery is as pleasurable as arriving at the final destination. Unlike any other mode of transportation, RV travel on highways, byways or less-traveled back roads opens up a whole new way of exploring the country at a slower pace in comfy digs. It’s a big country out there and RVing allows you to see and do it all. Visit a national park. See the Northern Lights. Go skiing in the winter and scuba diving in the summer. Fish or golf your way across this great land of ours. Get out there and foster new friendships with people you might otherwise never have the pleasure of meeting. Something happens when families spend time together. Bonds are built, secrets shared, discoveries made. With today’s hectic and demanding lifestyles,
August 2007 Days turn into weeks as we explore mountains, basins and chasms. We browse, barter and buy until every conceivable storage compartment is filled to capacity. Ice cold mojitos relive the scorching heat as we play Scrabble under the shade of an enormous maple tree. A whole salmon is grilled on a bed of fresh rosemary and tarragon, paired with chardonnay from a local vineyard. The dogs mingle with fellow camping canines and share squeaky toys. We walk under star-studded skies in search of shooting stars and satellites. We fall asleep to the chilling scream of frogs in a distant pond and wake to the chorus of yellow warblers. Divine days exhale into balmy nights…
F
or months I agonized over what to get for H’s 40th birthday. Thirteen years of marriage with flexible careers allowed us to celebrate birthdays and anniversaries in myriad countries that spanned four continents. However, a milestone birthday necessitated a departure from customary celebrations. I thought I knew just what to do. H frequently reminisced about adventure-packed camping trips he relished as a child; boasting of panoramic vistas, toasty campfire marshmallows, and the ever fascinating Forest Ranger Interpretive. On the other hand, I had never set foot in a campground. During my youth, holidays were spent in hotels, restaurants, and drive-in movies. Roughing it meant sand in my swimsuit. Regardless, I was prepared to wow my husband with something out of the ordinary, even if it involved the ‘C’ word. Camping. So I set about renting an RV to whisk the love of my life away for the vacation of his life, unaware of the sequence of events about to unfold. The next summer we vacationed in a larger rental. The following year H purchased a motor coach sporting a leopard mural. A year later ‘Leo’ was traded for a colossal stainless steel structure on eight wheels. It housed three TVs and an automated rotation clothes rack, just like the drycleaner down the street. Two years later, it was replaced by a monstrous configuration of metal, rubber and glass that could scream down a highway with 515
Check out www.gorving.ca for advice, tips and resources on the RVing lifestyle. √
EDMONTONIANS OCTOBER 2007
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Proof__ _________PROOFED BY:_______________________________________________CHANGES MADE:__________________________DATE:_________________
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BizINTEL
C
ivic Buzz with David Norwood
In my August column, I dealt with Edmonton’s image problems and recounted comments by the Calgary Herald’s Stephen Hunt—he loved the city. Now we can add another positive blurb about our city, courtesy of UK-based Easier.com’s travel site. In promoting Air Canada’s continuation of the daily non-stops from London Heathrow to Edmonton yearround, it created some hype on the web, aimed specially at United Kingdom residents. Excerpts: “Edmonton Festival City is a hot destination… even throughout the cooler months. Air Canada has announced that it will be increasing its non-stop winter flights between the London Heathrow and Edmonton International airports to seven days a week… “With the VIA Rail Snow Train running between Edmonton and Jasper National Park—the largest and most northerly Canadian Rocky Mountain National Park— skiers and other winter travel enthusiasts will be able to enjoy more flexibility when planning their Alberta getaway. Visitors can travel between Edmonton and Jasper aboard The Canadian three times a week and take advantage of some of the best ski hills and resorts in the Canadian Rockies. “As a global player on the festival scene—and Canada’s leader—Edmonton and its surrounding regions play host to a wide variety of festivals with more than 30 held on an annual basis that celebrate arts, culture and sports. [A list of Edmonton’s
B iz IT 101 with Greg Michetti
The back-to-school and Christmas seasons are the two busiest PC-buying periods of the year; especially for students. Aside from deciding if you should purchase a new laptop and iMac, you are faced with another major decision: Should it be running Microsoft’s Vista for an operating system or should you remain with flavours of Windows XP? And, if you already have a laptop, should you upgrade to Vista… and, if so, what version? Despite its performance problems, Vista does grow on you and it’s pretty cool looking. It will surprise you in some areas—connection to a movie projector for classroom presentations is slick… and really tick you off in others—printer drivers are still spotty. Nonetheless, it is worth considering. Also, with students searching and surfing the web for decent content to use in assignments, the built-in Instant Search features of Vista help big time. If you decide you must have Vista, purchase Vista Ultimate or, at the very least, Vista Business—forget about anything else. And, if you don’t have at least 2 GB of memory and a Core 2 Duo microprocessor, upgrading isn’t really an option. Even if Microsoft’s, with its Windows Vista Upgrade Advisor at www.microsoft.com/windows/ products/windowsvista/buyorupgrade/ upgradeadvisor.mspx tells you it’s OK to upgrade, you will still need to buy more RAM—which is not always readily 16
winter festivals is provided.] “Edmonton and neighbouring communities together comprise a metropolitan region that is home to 1.04 million residents. It is the capital of the province of Alberta, Canada’s sixth-largest city, and has the longest stretch of urban parkland in Canada, which is 22 times larger than New York’s Central Park and eight times larger than Vancouver’s Stanley Park. “From the thriving arts and culture scene in Edmonton—Canada’s Cultural Capital for 2007—to the beautiful surroundings in Jasper National Park, Air Canada guests traveling from London Heathrow have something to get excited about!” The full text can be seen at http://www.easier.com/view/Travel/Flights/ News/article-138580.html This is good news, coming as it does with other media releases promoting good things about Edmonton. A recent edition of Air Canada’s online magazine, onAir, contained a “Featured Destination” article about Edmonton. The first paragraph reads as follows: “Once best known for its sprawling West Edmonton Mall, these days Alberta’s capital is experiencing a cosmopolitan culture boom. With its thriving arts scene, top-notch restaurants, stylish hotels and trendy boutique shopping, suddenly Edmonton is looking downright sophisticated.” The article is upbeat and focuses on the many good things about the City, from its shopping to its restaurants to its hotels, as well as what to see. For the full article, go to http://www.aircanada.com/ en/onair/september2007/eng-can/ index.html, and click on “Feature Destination: Hip Edmonton.”
More condo proposals are making their way through the approval process at City Hall, and the Edmonton Design Committee, set up to ensure that we have no more “crap” architecture, as Mayor Stephen Mandel so aptly put it some time ago. Most striking, to date at least, is a planned tower tentatively named— appropriately for this publication—The Edmontonian, a 41-storey structure to be located at 101st Street and 105th Avenue. Little information is available as yet about timelines (possibly within the next year or two), but it will be a superb addition to the city’s skyline, reflecting a new sensibility about the importance of good design and the influence of the Edmonton Design Committee. BCM Developments is undertaking the project; designed by local architect Terry Hartwig.
Meanwhile, the sales office for the first tower in the Aurora-City of Light community, a joint project of Carma Developers and Urban Landmarks, located west of 101st Street and north of 105th Avenue, should be open by the time you read this. The Aurora comprises five condominium towers
ranging from 17 to 28 stories, complemented by townhomes, live-work studios, and an “eclectic mix” of commercial and retail venues. Construction of the first 23-storey tower is expected to commence this fall.
On the other side of the coin I, for one, am beginning to wonder if the Arlington condominium project on 100th Avenue at 106th Street will ever actually get off the ground. In the spring, City council approved the 20-storey project, which will preserve the façade of the burned-out historic structure now hulking over the avenue, but absolutely nothing has happened since. It’s one of the worst eyesores in downtown Edmonton. One would think that at least some sort of marketing campaign would have commenced by now. I’d love to hear from anyone with information about this project.
It’s good to see Connect2Edmonton (C2E) continue to grow. This informative and well used website has grown from about 1,000 members in January to more than 2,000 in midSeptember. The significant growth reflects C2E’s usefulness as a site for sharing information, expressing good and bad views about virtually any aspect of activity in Edmonton, and bringing many people with a passionate interest in the city together. What is particularly intriguing is the number of knowledgeable individuals who contribute valuable information about what is happening (or about to happen) in the metro region. I must acknowledge its utility to me in researching items for this column; it has become a part of my daily life. As a viable portal for all things Edmonton, C2E has created a special forum for commentary on the October 15th civic election… check it out √
David Norwood is a freelance writer/editor. Contact dnorwood@edmontonians.com
Greg’sFallTech Guide
available… nor is the upgrade copy of Vista. Bottom line: only get Vista with a new computer. On that note, I only recommend two hardware lines for Windows-based portable units for the home environment: HewlettPackard and Lenovo. HP has a leg up, mainly because of the great units they sell and, at the retail level, you can bundle this with a new printer, camera, spare cartridge, extra paper and so on. If you use your notebook while in class— say something like Microsoft’s OneNote— then check out the HP Pavilion tx1200 Entertainment Notebook PC series. At roughly $1,150, this slate-style notebook has the now standard HP glossy exterior, weighs less than four pounds, and has a 12inch touch-screen display. Or consider the HP Pavilion dv9400 Entertainment Notebook PC with a 17” widescreen BrightView display… just in case you want to watch a DVD while you “study”. These units start at $919 and come with AMD Dual Core processors, up to 2GB of memory and160GB hard drive. Now remember, a bigger screen is nice but it is generally meant for use at a permanent location (like a dorm room or bedroom desk). The smaller tx1200 can be carried around in a backpack and used wherever you are on campus. In other words, the cardinal rule when buying a laptop is to initially determine where you’ll be using it most of the time.
To illustrate my point, the HP Pavilion dv6500 Entertainment Notebook PC series, starting at $1300, has a 15.4-inch BrightView widescreen display, Intel Core 2 Duo processors, optional NVIDIA GeForce graphics card and up to 2GB of memory. In other words, it is somewhere between the classroom and the bedroom BUT is priced higher. Now for printers: Again, I’ve got to go with a few HP models. I strongly recommend a “DeskJet” or inkjet model. Forget about mono or colour laser printers for the home user… while nice, they use considerably more power to operate and the supplies are more costly. I suggest the HP Deskjet D4260 Printer: small, inexpensive ($89) and comes with excellent printer software (HP Smart Web Printing) that simplifies printing web pages, a task you can finally do effectively. The HP Photosmart C5280 All-in-One Printer means you can scan and copy. You may want to be cautious about buying a dedicated photo printer—you can print pictures only. Hold off on buying that unit until you can get it in a deal with a new digital camera. As an aside, I’ve found women seem to print a lot more than men… so, if you are a parent, getting the printer for the daughter, as opposed to the son, is a smart buy. Frugal parents who are always looking to save some dough should consider purchasing a used XP Pro laptop from a bored executive at the office. Hint: The
sales guys are the first ones to approach because they get the best units and only “do” email and word processing. They also get bored quickly with old technology. Also, if the laptop does not come with productivity software (like MS Office 2003) and you are still on a budget, note that, last month, Google began providing Sun Microsystems’ StarOffice 8 office productivity suite to users—free of charge, as opposed to the $100 it cost in the past. StarOffice works with most Microsoft Office apps and used to be the “paid-for” version of Open Office with far more options. It does not have an MS-Outlook email client equivalent, but this may be moot as most students use a web-based e-mail scheme like Hotmail, Gmail or Yahoo. Anyway, it is worth checking out at http://pack.google.com. A quick note to employers on “passeddown” portables: Make sure your hard disk drive is, in fact, wiped clean of corporate data. Some great advice comes from the Markham, ON firm, CBL Data Recovery Technologies, Inc. and can be found at http://www.cbltech.com/blog/datarecovery/attention-students-dont-put-yourdata-at-risk. √ Gregory B. Michetti of the Alberta-based systems integration firm Michetti Information Solutions, Inc. can be reached via www.michetti.com EDMONTONIANS OCTOBER 2007
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M edia Minute with Bruce Hogle
I take umbrage at the accusations former Premier Ralph Klein leveled against journalists in his latest venture as the first chairman of the Mount Royal College Centre for Communications Studies. At his very first class, the ex-Calgary TV reporter told 250 journalism, broadcasting and public relations students that most journalists are lazy, adding that he could say this now since he’s out of politics. I agree there are some journalists who are lazy, just as there are under-performers in politics, accounting, medicine, law, policing, education, soldiering, businesses and what have you. But labeling “most journalists” as lazy does a disservice to diligent men and women who are simply trying to do their
jobs—particularly those who have been tortured or murdered. Such as Tara Singh Hayer, publisher of Vancouver’s Indo-Canadian Times , who spent the last 10 years of his life fighting religious and political radicalism that had been tearing apart that city’s Sikh community. He became a paraplegic after being shot in 1988 by a fundamentalist Sikh youth… and was later murdered while in his wheelchair. Or Montreal photographer Zahra Kazemi, who died in Iranian custody last year, after she was arrested for taking photographs of the families of political prisoners. Then there was freelance Christian Science Monitor reporter Jill Carroll who was kidnapped by Sunni Muslim insurgents in Baghdad and released after 82 days. And who will ever forget this year’s graphic motion picture A Mighty Heart. It centred on Daniel Pearl, the Wall Street Journal reporter who was kidnapped,
tortured and later beheaded by crazed individuals in Pakistan for stories he was working on about Islamic terrorists. Last year alone, 53 journalists were murdered—simply because they were doing their jobs reporting on injustices within this global village. Nothing that drastic happens in North America today though several journalists across the U.S. are locked into First Amendment battles with the American government over confidential sources. Some Canadian journalists have also been subjected to police raids when trying to protect their sources. Others have been sued, as I was when editor of the Trail Daily Times. That’s when we exposed Sons of Freedom Doukhobor Leader Stefan Sorokin for the terrorism he created in the BC Kootenays by dynamiting rail lines and power poles, as well as fire bombing and destroying the entire Village of Ootischenia. It’s easy to silence your critics. Throw them in prison, so they can’t write,
investigate or tell the truth. More than 500 journalists and publishers were arrested last year from China to Cuba, Iran to Myanmar (formerly Burma)—because telling the truth is a crime in all too many countries. In conclusion, Mr. Klein, as you know, truth and accuracy are the criteria for every reporter. Therefore, in an up-coming lecture to those students, could you correct yourself? Admit your mistake that some journalists may be lazy, but not most of them. Further: When the time comes that you’re advising them on how to deal with politicians—and the funny hilarious antics of some former Alberta premiers—please give me a call. I’d love to cover that lecture. √ Bruce Hogle is the former news director at CFRN TV and recently retired head of the Alberta Press Council. Contact bhogle@edmontonians.com
money MAKING
By Ron Hiebert
I
am always amazed at how many people will start an enterprise, or invest in someone else’s, without taking the time to analyze the risk. You would think that determining the probability of success or failure would be high on most investors’ to-do lists before jumping in with their life savings. The long-term survival rate for new small businesses is lower than the likelihood of flipping heads in a coin toss. Only 66 percent of newbies make it past the two-year mark, and the survival rate drops to 44 percent after four years. Those odds aren’t very encouraging. To win, you need to know what you are up against.
RESOURCES TO ASSESS RISK Thankfully, the Internet has made it really easy to find out this type of information. A couple of good places to start are www.bizstats.com and www.gdsourcing.ca (look under Statistics Canada bankruptcies by industry). An article at www.forbes.com/entrepreneurs called The Ten Riskiest Businesses to Start by Maureen Farrell, is also a great source of practical advice. According to Stats Canada, there were 6,756 bankruptcies in Canada in 2006. The industries with the highest casualties were construction, retail, accommodation and food services (think restaurants and hotels), transportation, and manufacturing. Construction is the one that stands out. Fully 17 percent of all companies that slid under the waves last year were from this sector. Retailing was second at 14.6 percent, and accommodation and food services third at 11 percent. Out of 20 sectors, these three accounted for 43 percent of the “el-foldos” that took place in Canada last year. Things aren’t much different in the U.S. Fair Isaac Corporation, which compiles data on corporate and consumer credit, ranks the five riskiest endeavours as: communication services (cell phones, PDAs, beepers), restaurants and bars, transportation services (taxis, limos, shuttles), clothing stores, and food stores. In her article, The Ten Riskiest Businesses to Start, Forbes writer Maureen Farrell includes the first five mentioned in the Fair Isaac stats, but goes on to add to that list. Other risky ventures she highlights are travel agencies, tour operators, auto repair, trucking, and money services like cheque cashing, currency conversion and travelers cheques. She also cites
personal service occupations, such as hairstylists and laundry services, as having a high failure rate. BizStats looks at U.S. business data from a profit and loss perspective. It ranks 120 different sectors by the percentage of profitable operators within the sector vs. the percentage that are showing losses. The least profitable industries to set up shop are hunting and trapping (76.4 percent show a loss), scenic and sightseeing transportation (66.2 percent lose money), and animal breeding (65.5 percent are in the hole). Other notable losers are video rentals, health and personal care stores, and agriculture services.
COMMON THEMES Businesses with a high failure rate or low rate of return break down into the following categories: Lifestyle businesses—People don’t typically become farmers, animal breeders or trappers because they want to get rich. They do it because they love the outdoors, or want to be their own boss, or love animals. Like artists and musicians, they often have to subsidize their passion with more lucrative work to keep the doors open. If you want to do something you love, consider learning a skill or trade that will give you the time and the cash flow to indulge yourself. Celebrity Biz—Celebrities are attracted to ownership of bars, restaurants, hotels, resorts and specialty retail outlets like filings to a magnet. These are very sexy endeavours, but require a mixture of marketing savvy, location, quality merchandise, and a unique experience to make any money. Celebrity businesses are deceptive because they look easy to operate. To the contrary, profitable ones take a great deal of expertise and skill on the part of the operator in order to succeed. You have to get a lot of things very right before you become rich. Celebrity biz requires a bit of economic magic. You need people wanting your product bad enough that they are willing to pay a premium for it. If the product or service doesn’t have caché, the only way to attract customers through the door is price. You are then just another commodity. High volume and razor thin margins are the name of the game here. To play in this arena, you have to be big. Companies like McDonalds, Wal-Mart, and Super 8 are champs at the low price/high volume game. Small fry that compete against them are generally ground to pieces.
LOW BARRIER TO ENTRY Many construction, personal service and transportation businesses have very low barriers to entry. They don’t require years of specialized education or large amounts of capital to get started. High levels of competition mean low pricing power. In good times, when the demand is high, new entrants often survive for a while but, when the economy has a downturn, the weak usually close shop, succumbing to better operators.
IMPROVING THE ODDS To improve the odds of success in professions where the failure rate is high, an entrepreneur should consider going into partnership with an individual who is a proven winner, or buy into a franchise where the operating systems are laid out very clearly. The other strategy is to focus on occupations where the success rate and profitability are very high. BizStats is a great source for ideas. It has a long list of potentially profitable areas to look at. A few examples include: Type of Business Surveying and mapping Accountants School and charter bus drivers Special trade contractors Home health care Motor vehicle towing
Percentage Profitable 93.7 percent 91.2 percent 90.8 percent 88.2 percent 83.5 percent 82.0 percent
KNOW WHAT YOU’RE GETTING INTO Small business has a high failure rate because too many entrepreneurs haven’t taken the time to do the homework and preparation necessary to win. To be successful, you have to know what the risks are and how large these obstacles are likely to be. Going into any new venture fully prepared is the best way to put the odds in your favour. √ 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
EDMONTONIANS OCTOBER 2007
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Sizzling Party
They came...they saw...they cheered... 300 attend annual Edmontonians 2007 Twenty under 30 reception at Lexus of Edmonton Photos by Barry Boroditsky and 350 Designs
Lexus GM Bruce Kirkland and co-host Publiser Sharon MacLean with Sizzler Jeanna Herbut 2004 Sizzler Tabitha England
Marina Michaelides of CityTV
Sizzler Jesse Lipscombe also took home the Swedish Jewellers’ diamond Sizzler Vanessa Hettinger
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GMC pres. Paul Byrne
EDMONTONIANS OCTOBER 2007
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Doreen Bateman, Swedish Jewellers
Sizzler Krista Turko and mom Tamara with Mayor Stephen Mandel
Sizzler Rohit Gupta
Sizzling Holly Husel with Dante’s sizzling sous chef Kent Panko Emcee Chris Curtola, CENA Corp.
ogle t Bruce H Columnis stbury, Telus We with Bob Lucky Kathleen Badry of the Kidney Foundation accepts a $1000-GC from Travel Alberta’s Jim Vincent Alana Langois and Nick Croken, 350 Designs
PLATINUM SPONSORS
Sun columnist Graham Hicks, Nabeal Mansour of Media-Masters, and Transformer Steffany Hanlen
EDMONTONIANS OCTOBER 2007
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ACQUISITIONS, DIVESTITURES & CORPORATE FINANCE
with Stephen W. Kent, CA (780) 441-6793
Put your cards on the table It never ceases to amaze me how many buyers and sellers posture during negotiations. The best outcome of any negotiation is one where both sides achieve their goals. In order to get there both parties need to articulate and understand each other’s goals early in the process. The sooner this is done, the greater the likelihood of a positive outcome. On two separate transactions recently, potential buyers suggested to us that although they had little interest in the opportunity we were presenting to them they would make an offer simply because they believed nobody else would even look at the company. Both expressed serious reservations about the state of the industry, the marketplace and the
future profitability of the companies being considered. Both buyers remained inflexible when we opened negotiations and decided to walk away from the process as they felt they had better opportunities to explore elsewhere. They believed that in time the vendors would be disheartened with the lack of interest in their companies and that their price expectations would drop as a result in the near future. In both situations other purchasers stepped up and made offers that were marginally better than the ones we had been working with but the structure and terms worked well for both sides. Fast forward a couple of months and our original buyers came back to us having been unable to close their other opportunities and still needing to make an acquisition. Both our deals were now under offer and likely to close. The buyers were prepared to increase their original offers and acknowledged that they had been posturing. They believed in the industry, could see steady growth for the
business, liked the management of the company and could see significant synergies between their operations and the target company. In another deal negotiations broke down when the vendor refused to move on a position that was based on his own projections. The buyer backed out because he felt if the vendor would not stand by his own numbers he could not trust any other information he had provided. The deal went stone cold until the two parties happened to run in to each other later and chatted honestly. The deal was back on. If you are involved in a negotiation put your cards on the table. Let the buyer or seller know what your goals are and let us help you find a solution that will meet the needs of both parties. Please e-mail stephen.w.kent@ca.pwc.com or call 780.441.6793.
Edmonton International Airport
Grande Prairie Regional Airport
High Prairie Airport
Peace River Airport
Fort MacMurray Regional Airport
Jazz City News River City News
Air Canada WestJet Swanberg Air
Northern Air Noralta Aviation Central Mountain Air
Norhtern Air Northwestern Air
Air Canada Air Mikisew Corporate Express WestJet Integra Air Northwestern Air Transwest Air
Effective Oct. 6, 2007
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EDMONTONIANS OCTOBER 2007
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