The Marketplace Magazine September/October 2018

September October 2018

Where Christian faith gets down to business

Ron Schlegel:

A passion for seniors Allan Sauder reflects Remote training in Libya Saying No is important Business lessons from Leviticus

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The Marketplace September October 2018

Roadside stand

Tenacity pays off for student

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any successful entrepreneurs can tell stories about failures or setbacks that preceded their eventual success. Sometimes the scale of the difference between the two can be breathtaking.

Sam Pasupalak’s journey is a prime example. Born in India, Sam Pasupalak he reluctantly came to figure sum. On meeting Gates, he Canada for university after his father told the tech billionaire: “you didn’t insisted. Early days in the computer accept me for co-op, so you have to science program at University of buy my company at the end.”

Waterloo were challenging, and his marks were mediocre. One day, he Encouraging side projects heard that Microsoft founder Bill Sarah Kessy, founder of Tanzanian Gates would be speaking at the food products manufacturer Halisi university. The event was sold out, Products (see pg. 14) is an amazing but somehow, he managed to talk woman, one of many people you his way in. Gates’ speech introduced him to unfamiliar concepts: entrepre- will benefit from hearing at MEDA’s annual convention in Indianapolis neurship and start-ups. in November. A MEDA tour group Newly energized, he took an that visited her facility in January interest in artificial intelligence, an area where he excelled. He applied to was both impressed and surprised by what they saw. With all of the Microsoft for co-op placements but product lines being processed at was rejected three times. the facility, where does she find Prior to graduation, he built a the time to raise chickens that run prototype artificial intelligence prodaround the property, uct in the Velocity or deal with the fish Garage, a local tech pond, a member of our business incubator. group asked.

The company he coBoth of those founded from those initiatives, unrelated efforts, Maluuba, to Halisi, are there to developed a voiceshow her workers that activated product it can be done and that was used in encourage them to start millions of smart their own home busiphones and TVs nesses, she replied. worldwide, including partnerships New fundraisers with Samsung, LG MEDA recently hired and Blackberry. two people for its In 2017, Microfundraising team, one soft purchased the an existing staffer who company for a nineChris Brnjas The Marketplace September October 2018

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will be familiar to some supporters, the other new to the organization.

Vanessa Hofer, who has worked in MEDA’s Lancaster office since August 2017, assumes the new position of associate development officer, working with mid-level US donors.

Hofer, a Goshen College grad, is an actor who has also worked as a theater instructor, writer and editor.

Vanessa Hofer

In Canada, Chris Brnjas joins the Waterloo, ON office in a similar associate development role. Brnjas, a Conrad Grebel University College alumnus, previously co-founded the Pastors in Exile non-profit, which works mostly with Mennonite young adults.

He has also worked at the Centre for Community Based Research as a research assistant and at Grebel as the interim student services program Assistant. -MS

Follow The Marketplace on Twitter @MarketplaceMEDA

In this issue

Features

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Making a difference

MEDA president looks back over 31 years of creating business solutions to poverty.

Caption Allan Sauder

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Departments 22 24 20 22 23

Roadside stand Soul enterprise Review News Soundbites

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Volume 48, Issue 5 September October 2018 The Marketplace (ISSN 321-330) is published bi-monthly by Mennonite Economic Development Associates at 532 North Oliver Road, Newton, KS 67114. Periodicals postage paid at Newton, KS 67114. Lithographed in U.S.A. Copyright 2018 by MEDA. Editor: Mike Strathdee Design: Ray Dirks

Change of address should be sent to Mennonite Economic Development Associates, 1891 Santa Barbara Dr., Ste. 201, Lancaster, PA 17601-4106.

Making room for yes

Realizing what we don’t have time for is important, says turnaround expert Greg Brenneman, who will be a keynote speaker at MEDA’s annual convention, Nov. 8 in Indianapolis.

Computer-aided training MEDA uses distance education to reach Libyan entrepreneurs.

Counting cash flow

Excel-based calculator helps Ukrainian farmers measure their progress.

To e-mail an address change, subscription request or anything else relating to delivery of the magazine, please contact subscription@meda.org For editorial matters contact the editor at mstrathdee@meda.org or call (800) 665-7026, ext. 705 Subscriptions: $30/year; $55/two years.

Postmaster: Send address changes to The Marketplace 1891 Santa Barbara Dr., Ste. 201 Lancaster, PA 17601-4106

Published by Mennonite Economic Development Associates (MEDA), whose dual thrust is to encourage a Christian witness in business and to operate business-oriented programs of assistance to the poor. For more information about MEDA call 1-800-665-7026.

Web site www.meda.org

Visit our online home at www.marketplacemagazine.org, where you can download past issues, read articles and discuss topics with others, all from your desktop or mobile device.

Cover photo of Ron Schlegel by Charlotte Baker

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The Marketplace September October 2018

Soul Enterprise

Four Things to Do When You Make a Mistake at Work

By David Rupert

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ach summer, as a teenager headed for college, I was determined to make as much money as possible. My dad, a roofer, needed the help. There were perks: free transportation in Dad’s ‘52 Chevy, a lunch packed by mom, and a paycheck that didn’t bounce.

Reality is, I wasn’t a good roofer. My lines were often crooked and, if left uncorrected, would ruin the run of shingles going all the way up the house. My patient dad would help me rip up the offending row, and we’d start over.

On one hot August day, I committed a cardinal roofing mistake.

I didn’t properly secure the ladder. Through a negligent sideswipe of my body, I bumped into the ladder and helplessly watched it fall to the ground.

There we were, stuck on the roof. I saw my dad’s face, sullen and slack-jawed, and he was very quiet.

This was bad. Eventually, a passerby saw our dilemma and thought he should call the fire department.

“Honest buddy,” we said, “just push the ladder up here.”

That wasn’t the last mistake I’ve made on the job. I’ve messed up at work plenty of times and have had to pay a price to make things right. I’ve had to make amends with coworkers, call customers, or stay late at night to fix my errors.

No one, however, has had to pay the price quite like Washington, DC meteorologist Tucker Barnes. The The Marketplace September October 2018

iStock photo

WTTG-TV weather man predicted a monster spring storm would hit the capital. Instead, the area got just a dusting of snow and rain.

Barnes’ punishment was played out on live TV the next day, as he was forced to take a “timeout” in the corner of the studio. “Finally, someone takes responsibility for their actions,” boomed the voiceover. The hilarious stunt was further enhanced

by Barnes’ calls from the corner. “I don’t know why you guys have to do this to me,” he said. And, “How long do I have to stay here?”

You might not have to sit in a corner, but the results of your mistakes are often no less publicly humiliating. Loss of position, pay, or prominence are all common results of getting it wrong. Paying a price for mistakes is a long-standing principle in the workplace.

Part of our high calling is facing the music when things go south.

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We are told in Galatians 6:5 “...every person should bear their own load.” In other words — we should learn to take our lumps.

Here are four things you must do when you make a mistake at work: Own it. Don’t point fingers. Don’t blame. Just admit it. Because of the complicated work structures of the modern workforce, mistakes are often multi-layered and shared. If the mistake isn’t solely yours, step up to your responsible portion without implicating others.

Fix it. Don’t let someone else clean up behind you. If you broke it, you should be the one who has to face the music in front of suppliers, customers, or other employees and to do all you can to put it back together it.

Embrace it. There is something about owning up to mistakes that helps close the door. You can even laugh about it later. To my dad’s dying day, we laughed about that ladder.

Don’t repeat it. When you learn from your past, you earn respect. You are able to teach others and mature.

Learning from the past is a valuable trait in any field.

When was the last time you messed up at work? Can you laugh about it now? ◆ Four Things to Do When You Make a Mistake at Work. By David Rupert. Published by The High Calling, May 15, 2013. Theology of Work Project Online Materials by The High Calling are licensed under a Creative Commons Attribution 4.0 International License.

Advice from Leviticus Old Testament book a good guide for business decisions

By Nick Ramsing

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eviticus is a great business book. In fact, I’d go so far as to say that systemic poverty in the US wouldn’t exist if we used Leviticus as a business model.

It’s helpful to reflect on our perspectives of Leviticus: its context, central purpose and potential to help us today. Then, I can better explain my perspective as a business and market analyst.

Leviticus is perhaps baffling to many of us.

We may perceive Leviticus as a set of rigid rules and confusing religious practices that are Nick Ramsing not relevant today.

We may consider that grace has supplanted its practices. It is true that some of the rituals practiced in Leviticus are confusing. The Ancient Near East symbolism is different. Leviticus embodies different perspectives from how we approach life today.

Leviticus and the other “books of the Law” provide great insight into God‘s kingdom values and desire for God’s people. The Law provides insight into God’s desires for right relationships (misphat), how we live in community and transact life with each other (shalom). It addresses how a holy being might “dwell with” and “walk with” a people bent towards themselves. It speaks to the role of men and women as stewards of God’s creation and presents an opportunity for God’s people to

model another way to live to the nations, enabling the whole world to know God (Deut 4:5-8). How does that make Leviticus a good business book? What principles might impact us this side of Biblical history? Here are some thoughts drawn out from Leviticus’ civil law that have practical business impact.

Leviticus 5 describes the sacrifice people bring for a ‘sin offering’.

The phrase “… if anyone cannot afford …” repeats, addressing successively less valuable commodities: lamb to turtledoves to flour.

The point is that everyone can participate. Everyone has access. Your economic status doesn’t hinder you. MEDA’s vision statement implies this: “That all people may experience God’s love and unleash their potential to earn a livelihood, provide for families and enrich their communities.”

Leviticus 19: 9-10 describes gleaning practices. Rather than striving for excessive productivity, extracting maximum value, God’s people were to leave food on the

Overheard:

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field so the poor and sojourner can glean for food. This provides dignity.

What implications exist for productivity and efficiency in view of the call to benefit less well-off members of our community? How do we redefine economic productivity? What business models enhance community welfare (shalom)?

Leviticus 19: 13-16, 35-36: remind us that we shall not defraud or rob, pervert justice, “or use dishonest weights, among other things. These instructions to conduct fair, honest, and respectful transactions with suppliers, customers and employees (misphat) seem straightforward.

What does it mean to genuinely “love your neighbor?”

In Leviticus 25, we read about Jubilee, the command to forgive debts and return land to previous owners.

Had Jubilee ever been practiced, it might have prevented systemic poverty and class division. The modernday application might be for us to realize that our assets are not our own. It might cause us to reconsider how we deal with succession.

At MEDA, I have daily opportunities to apply these principles to stimulate markets and nudge market actors to conduct business differently. How about you? What opportunities lie before you? ◆ Nick Ramsing is MEDA’s associate director, global programs. He is based in MEDA’s Washington, DC office.

Feeling gratitude and not expressing it is like wrapping a present and not giving it.

— William Arthur Ward The Marketplace September October 2018

Making a lasting impact Outgoing MEDA president pleased by continued success of early clients

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hen Allan Sauder looks back on 31 years at MEDA, the last 16 as president, he often thinks back to his early international work.

“There’s no substitute for living in a country to experience both the highs and the lows,” he says. “To experience the depth of the culture, the language, and after a couple of years, realizing that there are limitations to what you can understand.”

MEDA has seen massive growth and transformation during his tenure. Goals he articulated during his first week as president in 2002 were met and surpassed, many times over in some cases.

Sauder, who retires at the end of December, will leave behind a stronger and more diverse organization than the one he joined over three decades ago. Initially he served as a project manager in Tanzania, then as director of international operations before becoming president.

When Sauder started with MEDA in 1987, the organization’s North American staff was 10 or 12 people.

It is now about 80.

MEDA’s revenues have grown more than five-fold since he became president. Donations have grown at an even faster rate. The organization now has a budget of $35 million, with projected donations of $8 million in the current fiscal year.

Those numbers, satisfying as they are for supporters and board members, aren’t Sauder’s fondest memory. He thinks instead of reconnecting with previous clients and seeing that MEDA’s mission of creating business solutions to poverty has The Marketplace September October 2018

resulted in lasting change.

“Being able to go back and visit people and businesses that I worked with 10 years ago, 15 years ago, 30 years ago and seeing that they are still doing what we hoped that they would be doing” is a major source of satisfaction.

For all the benefits that MEDA has brought to individuals, families and companies in scores of countries around the world, Sauder is a firm believer in letting them strike out on their own at the appropriate time.

“Perhaps our best gift was leaving.”

In most projects, three to five years is the minimum to get things started. “Fortunately, at MEDA, we’ve had the luxury of other types of involvement, through an investment, or other types of partnerships that go beyond the life of that initial project.”

Not every venture had a happy outcome. Fraud at a Tanzania project in the mid-1990s was the most challenging experience of Sauder’s career.

“The reality is that if you’re working in financial services, fraud is a fact of life, and you’re going to have to either prevent it or catch it early or deal with it. When we had to deal with a major fraud, I think we were able to recover, first, because we acknowledged our responsibility in it and repaid money to the Canadian government that they had put in, which was challenging for us.

“We went to Washington and were part of a panel of the first three organizations that I’m aware of that ever talked about fraud in microfinance. As a result, we developed a course on preventing and managing fraud. We still teach versions of that course today.”

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That period was difficult for Sauder and his family. He travelled to Tanzania eight times in 13 months, for three to four weeks at a time.

Dealing with risk has been a tightrope the organization has continuously worked to navigate.

Sauder recalls being asked by the board about failures and being told that if he couldn’t report any failures, MEDA wasn’t trying hard enough. At the same time, major funders such as governments and private foundations are risk-averse. “We probably haven’t had as much opportunity for risktaking as we might like.”

He hopes a new in-house innovation fund will allow more opportunities to take measured risks.

MEDA’s programs have evolved over the years, with a major focus on scaling up to maximize impact. Early projects were aimed at one community or region, “measuring clients in the hundreds of thousands at the most.”

That’s no longer good enough for institutional or private donors. “We see opportunities to take something that works and put it out there to hundreds of thousands, if not millions of people.”

Scale requires a more complex management model, with greater emphasis on monitoring and evaluation. Attention to gender issues and environmental analysis are also important parts of the work.

MEDA’s emphasis on the western hemisphere has declined over time.

Early work in Paraguay and Uruguay was followed by a focus on Latin America and the Caribbean in the 1980s, then a shift to Africa.

“Our interests have gone where some of the needs were the greatest.

Allan Sauder drives Mike Miller and supporter Barry Stauffer in rural Nebraska.

Certainly, that would parallel some of the institutional donors who are interested in funding the tougher situations rather than countries that are now considered possibly middle income.”

Asked about challenges ahead for MEDA, Sauder replies: “Challenges and opportunities usually go hand in hand.”

MEDA started 65 years ago as an investor in businesses that create opportunities for the poor. Many other organizations have caught onto that now, he said.

Blended finance, partnerships that add public and private money to development assistance to leverage investments from other partners, is an opportunity for MEDA. “But it’s also a place where we need to work hard to maintain our leadership, because a lot of others are entering that space.”

MEDA will address that challenge by focusing on things that it knows work to benefit the poorest members of society.

Among the United Nations Sustainable Development Goals is eradicating the worst cases of poverty by 2030. That problem is most intrac-

table in rural sub-Saharan Africa and fragile states where MEDA has experience. “Not all investments will benefit the poorest members of society, and we really want to keep our focus.”

Improved education results in a growing wave of entrepreneurial young people in many countries where MEDA works. When he travels, Sauder is amazed by the skills young people have. That presents both challenges and opportunities.

“We see opportunities to take something that works and put it out there to hundreds of thousands, if not millions of people.”

“We don’t have to send in a bunch of expatriates to show them how to do things. We just have to find ways to facilitate and support and build on skills and ideas that these next generations have.”

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In an increasingly secular world, Sauder believes there is still a place for MEDA’s faith language. He is less concerned about how MEDA describes itself than a continued focus on walking the talk.

Having a deeper level of integrity, owning up when things don’t work and accountability for use of human, financial and environmental resources are important measuring sticks that he hopes will endure.

“The values we ask people to sign on to, we are looking for people that have a genuine concern for creating opportunities for the poor.

I think it is the Christian values of our association, of our membership, which really set the stage for us to do some things that maybe more secular organizations wouldn’t even try. We go to some of the tougher places, we take financial risks through investment, and we share the joys and challenges of our partners by serving on their boards.”

The many friendships Sauder found through MEDA “sustain me now, and hopefully into retirement as well.” ◆ The Marketplace September October 2018

The importance of saying No “Without this discipline, most of us just keep saying yes to things until we discover we lack the time to do anything well.”

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reg Brenneman, one of the world’s leading business turnaround executives, is chairman, president, and CEO of the private equity firm CCMP. Brenneman is one of the keynote speakers at MEDA’s upcoming convention: Intersections – Business as a Calling 2018, to be held Nov. 8-11 in Indianapolis, Indiana.

The excerpt below is from his book: Right Away & All at Once: Five Steps to Transform Your Business and Enrich Your Life.

Learn to Say No If you want to save time for your close friends, family members, and business partners who give you energy, then you must learn to say no. If you don’t learn how to say no, you’ll never have time to do what you most need to do.

In fact, saying no when people ask you to do things — even good things, valuable things, important things — is often far more important than saying yes.

Before you say yes to anything, make sure you have your personal Go Forward plan in front of you and then run through the Five Fs (Faith, Family, Friends, Fitness and Finance) to make sure you made a good decision. Get used to doing this, because it’s a crucial mental exercise. Why? Because without this discipline, most of us just keep saying yes to things until we discover we lack the time to do anything well. We spread The Marketplace September October 2018

Greg Brenneman

ourselves too thin… and too late we discover we’ve picked up a whole bunch of white chips from our to-do list and no blue chips at all.

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I’ve struggled with this problem over the years, and I’ve had to practice to get good at saying no. Consider, for example, our family giving strategy.

We used to keep expanding our number of charities without allowing any of them to drop off.

That eventually became a problem, because every charity took not only the effort required to write the check, but also our time and our talent: individuals wanting to meet, wanting input, asking to come solicit us for more or bigger donations. We discovered that we were supporting 32 charities, with each of them taking a fair amount of our time.

To address the problem, we met as a family and decided together to focus our giving on the platform we have been given, which we loosely called Faith At Work. We pruned the number of charities down to 20 — the number we could realistically manage with our time, talent, and treasure.

Now, whenever a request for donations to a new charity comes in, we look at how that charity fits with our Faith At Work generosity statement. In about 75 per cent of the cases we say no, even though the charities look perfectly good. We can say to them, “That isn’t what our family is focused on now, so we’re not going to waste your time by having you come to us just so we can send you a note later to say, ‘We’re not focused on it.’ We can tell you that right now.” Saying no saves an enormous amount of time for us and time and money for the charity.

It frees up our time to spend with the charities and people in whom we’re really invested.

Pruning Has Its Benefits It takes time to align your interest with the interests of those in your various circles. It takes effort to weed and prune your relationships to make sure you’re spending your life in ways that make a significant difference. It takes real work to create a well-oiled team that can win championships rather than continually hover at the bottom of the pack.

Do you want to enjoy some fine wine? Or do you want to settle for a box from Kroger?

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The people mentioned at the beginning of this chapter, the folks who travelled to Sonoma County to help their friend tend his backyard vineyard, know that pruning and weeding costs them something in terms of their time, their effort, and their comfort. But they also know something about the rewards they can expect.

Despite the really hard work, the author of the blog reported that “most people who come once actually come again to toil away in the hot sun.” Why? Why would they do that? The author describes the big payoff. “[Afterward they] relax by the pool with good food, wine and company, plus a little music provided live by Dave and some of his guitar and accordion-playing campañeros. But then there’s the pool and people jumping into its cool depths, fully clothed. And the cheese, and biscuits and brownies, not to mention a glass or two of Dave’s finest.

As the sun gets lower in the sky, the music starts and dinner is served at the long table, the chatter gets louder and the sun sets on the newly tended vines and who in their right mind would ever want to leave?”

Why would anyone spend so much time and effort in pruning and weeding and aligning? Maybe the better question is, who in their right mind wouldn’t? ◆ Excerpted from Right Away & All At Once: Five Steps to Transform Your Business and Enrich Your Life. https://www.rosettabooks.com/ rosetta-print/right-away-and-all-at-once Copyright ©2016. Published by RosettaBooks. Reproduced by arrangement with the Publisher. All rights reserved.

The Marketplace September October 2018

Family empire built on life-long interest in seniors

By Mike Strathdee

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on Schlegel’s interest in seniors developed at an early age.

When he was 10 years old, his father, Wilfred, purchased the Egerton private hospital, a nursing home in London, ON. Ron and four of his siblings, along with their parents, moved into an attached apartment.

He carried meal trays and ran errands for residents before school in the morning, again at noon and for the evening meals during much of the next two years. “Once I got the trays finished, I could go play sports.”

Doing homework at the bedsides of residents meant he sometimes benefited from the assistance of retired teachers. And there were always other tasks to be completed. Ron typed up monthly ministry reports for his father, who worked as a farmer and The Schlegel family, clockwise from top left: Jamie, Barb, Brad, Rob and Ron pastor in addition to operating the nursing home.

“He involved me a lot in those ways.” enterprise that is the largest private urban neighborhoods.

Farming and the nursing home operator of seniors residences in OnAll told, the Schlegel ventures emwere the two threads that formed Ron’s tario and the biggest commercial proploy more than 8,000 people across early life and have stayed with him. ducer of turkeys for meat in Canada.

Canada. There was no grand strategy “In both cases, it gets into your blood.”

The Schlegel family also owns a on how Ron became involved with so Six and a half decades later, nationally recognized mental health, many different enterprises. those early involvements endure, on addictions and employee assistance He never dreamt that his fama much larger scale. Founder and program company, and a commerily would work in so many different chairman of the board of RBJ Schlegel cial and residential development areas, let alone the size these operaHoldings Inc., he oversees a family division that works to create vibrant tions would reach. “They grew on The Marketplace September October 2018

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their own, organically for the most part. I was never a seller.”

Ron bought into the nursing home business early in his adult life, while juggling careers farming and teaching at the University of Windsor. After selling Egerton, Wilfred Schlegel became a partner in a 98-bed nursing home. As his health deteriorated, Wilfred sold his shares before Ron could make an offer. Learning of Ron’s interest, the partner stepped aside to let Ron buy that stake over five years.

Ron went on to teach at the Uni-

“We have an interest in trying to lead, being the best, but not the biggest.” versity of Waterloo for two decades, helping to set up the department of Health Studies and Gerontology prior to turning his attention to business full-time.

Schlegel Poultry seems at first glance not to be an obvious fit with other Schlegel operations. Ron ad-

mits that the turkey business is his way of staying connected to farming roots. But he quickly makes a link to other operations, using health as the common denominator.

Just as Schlegel Villages deals with (residential) health care for seniors and Schlegel Urban Developments works to build pedestrianfriendly communities, the turkey division produces healthy food, he said.

“We tried to achieve a scale in each one that is competitive, of a size that is sustainable. Each one stands on its own.”

Homewood purchase a major growth point for Schlegel

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uck is where opportunity meets preparation, the magnet on Ron Schlegel’s refrigerator at home suggests.

“That’s always been our guiding philosophy in many ways,” he said in reflecting on the growth of various Schlegel businesses.

Nowhere has that been truer, perhaps, than in the events that led to the acquisition and growth of what is now RBJ Schlegel holdings’ largest division, Homewood Health.

Homewood provides outpatient mental health and addictions treatment and management programs, as well as employee and family assistance services. The Guelphbased organization has grown to over 4,500 employees across Canada, more than half of RBJ Schlegel’s total head count.

RBJ Schlegel’s relationship with Homewood, which began in 1997, developed in different ways than anyone expected. Schlegel first partnered with the Guelph-based organization to more aggressively develop retirement homes. They started out with a plan for three sites. That relationship grew in 1998, when the Ontario government issued a call for proposals to develop 200,000 long-term care beds.

The two organizations submitted six joint proposals, five of which were successful.

Homewood, at the time a publicly traded company with 650 employees and over 800 shareholders, was a low-risk firm that paid consistent dividends and took a long-term view, highly compatible with the RBJ philosophy, Ron said.

That changed in 2010 when a private equity firm made a play to purchase Homewood.

RBJ Schlegel had been accumulating a small ownership position in Homewood with the goal of gaining influence and a board seat. Knowing that private equity firms seek shortterm returns, the Schlegels brought in advisors and offered a higher, successful $210 million bid to attract shareholders and scare off the private equity firm.

What the Schlegels didn’t fully realize at the time was, they weren’t just buying a renowned addictions treatment and mental health organization. Just prior to the hostile takeover bid by the private equity firm, Homewood had purchased a Vancouver-based human solutions firm, getting into the employee assistance program business.

Since purchasing Homewood, the Schlegels have acquired other

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mental health hospital operators.

Homewood now includes hospitals in Montreal and Victoria providing in-patient treatment, mental health and addictions services. The division has employee assistance arms in major cities across Canada, and outpatient treatment clinics in Vancouver, Edmonton, Calgary, Mississauga and Montreal.

Ron chairs the Homewood Research Institute, a not-for-profit organization that works to improve the outcomes of mental health and addictions treatments by partnering in research that enhances practice.

The Schlegels draw on well-connected businesspeople and public figures to advise Homewood.

Former governor general David Johnston, a Schlegel friend since his days as president of the University of Waterloo, is a member of the Schlegel Health Care and Homewood boards. “He has contacts and connections worldwide,” Ron said.

Schlegel has also tapped a former Ontario premier and a former deputy minister of health, the former head of a major Canadian meatpacking firm, and the former president of a Canadian steelmaker as board members to ensure best governance practices within Homewood Health. ◆

The Marketplace September October 2018

the business diversificasaid, repeating a story he tells often tion within RBJ Schlegel as part of onboarding new leaders. to be successful.

“Mom and dad kind of further Schlegel Villages has developed that, and Dad kind of 19 homes totalling 5,000 overlaid the vision of the villages, beds across Ontario, with the RIA (the Schlegel-UW Research Institute for Aging), the bringing four expansion projects together of research and practice… underway. The choice Now it’s the third generation conof the village name is tinuing that forward, standing on deliberate. Each facility that rock-solid foundation.” tries to be a community Ron Schlegel thinks society needs to tap the wisThe Schlegel organization’s most hub, offering use of space dom of elders important differentiator is the famto local organizations ily culture, Jamie said. “That goes without charge on the back to the values that grandma and condition that residents grandpa lived their lives by.” can be involved.

Measured growth has involved Schlegel Villages has ensuring each division has solid foottripled the number of ing before taking the next step across seniors facilities it operthe stream, Jamie said, repeating one ates over the past decade. “We think in terms of Ron’s business maxims.

“We have an interest in trying of whether we can serve to lead, being the best, but not to be people best in terms of the biggest,” he said. our model,” Ron said.

Dealing with the growth in the Asked about the organization hasn’t changed famgeometric growth in the All three of Ron and Barb Schlescope and size of various Schlegel en- ily dynamics, Jamie said. “We work gel’s sons have leadership roles in together as we always have.” terprises in recent years, Jamie notes the company. Rob is chief financial A major emphasis for RBJ that “geometric growth has been officer, Jamie is president and chief Schlegel as the organization grows is three generations in the making.” executive officer, and Brad is vicekeeping decision-making as close to “Grandma and grandpa laid the president of design and construction. values foundation on which we built the customer as possible to maintain “I told each of them, I’m not a nimble, entrepreneurial environthe modern organization,” Jamie going to twist your arm,” Ron said.

“Too many fathers have done that, wanting their sons to take over the business. I told them, I’ll hold the door open, but you have to walk through it.”

Jamie and Rob got involved in the business in the early 1990s. Their brother Brad, a former professional hockey player who played for two NHL teams, for several European teams and won two Olympic silver medals with Team Canada, joined in 1997.

As his sons progressively became more involved in decision making, Ron decided in 2005 that all growth had to come as a result of their efforts.

Jamie has never wished that the family was involved in less areas of business. “They’re all interesting in their own way,” he said.

He credits the senior leadership MEDA support Jewel Nickel puts glasses on a talking mannequin at the UWSchlegel Research Institute for Aging teams in each division for allowing The Marketplace September October 2018

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ment. “We want to get to the point where 95 per cent of all decisions in the organization are made on the front line, not in some meeting room separate from it.”

Attention to culture-building activities and habits has become increasingly important for the Schlegels. “Our biggest challenge today is to maintain the family culture, with

this growth,” Ron said.

This spring, RBJ closed a deal to buy the St. Jacobs Farmers Market, whose previous owners, Mercedes Corporation, included long-time MEDA supporters in the Milo and Ross Shantz families, plus a number of other community shareholders.

When the second generation owners of the Mercedes businesses

approached the Schlegels, they initially weren’t interested in buying.

“As we thought about it more, it did fit into our overall Schlegel Urban Developments strategy,” Ron said.

Five years from now, the Schlegels hope to develop the theme of the farmers market in ways that haven’t been tried yet, on unused land in the 45-acre parcel north of Waterloo. ◆

Aging research is primary passion of Schlegel patriarch

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e hasn’t been a university professor since 1991, but research related to aging and seniors remains one of Ron Schlegel’s primary passions.

RBJ Schlegel, his family holding company, has made seven-figure gifts to numerous organizations, including a community sports field in Kitchener, where he lives, and to set up MEDA’s volunteer program.

Those gifts are dwarfed by a 10-year, $50 million commitment to the Schlegel-UW Research Institute for Aging (RIA).

The RIA, a centre of excellence for aging attached to the Schlegel Villages University Gates seniors complex in north Waterloo, has partnerships with several post-secondary institutions. A local community college’s personal support worker and nursing students take their courses at classrooms at the site. Many will do practicums there as well. Textbook lessons can be quickly followed up with hands-on, experiential learning with residents.

Doing research on site at a seniors facility provides a living laboratory. When researchers find something that works, they don’t wait to publish results before trying it, said company president Jamie Schlegel. “We get this kind of real-time application of research that happens.”

The RIA facility includes research on bone density, “fast forward aging” that affects astro-

Spirituality “is the only dimension of a human being that can continue to grow until the very last day.” nauts on the International Space Station, who lose bone density during their off-planet trips. The RIA is the primary organization to study the health effects of being in space for the Canadian Space Agency.

“Can you prevent it? Can you recover from it? Can you slow it down?

All those questions can be studied,” Ron says.

Currently a three-storey building, the RIA is bursting at the seams.

Three more floors are being added to accommodate additional research.

Ron has received numerous local, area and national awards for community and business leadership, “probably more than I deserve.”

Community building is a common theme in these honors. One expression of that interest in community is exploring growth in spirituality in seniors. “It’s the only dimension of a human being that can continue to grow until the very last day,” he said. “Everything else will start declining, even if we age well.”

The RIA partners with Conrad Grebel University College to support a specialist in spirituality and aging who does research, teaches gradu-

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ate courses on the subject, and conducts an annual spirituality and aging seminar.

A Schlegel initiative that got a lot of media attention this year was a green park bench with the words #ElderWisdom written on it.

The bench visited 15 cities across Ontario. People could come sit and chat with a senior. This simple idea sparked requests from across Canada and several other countries.

The Schlegels are working to realize a dream that Ron’s father, Wilfred, articulated four decades ago. Wilfred wanted the back half of his Shady Pines campground in southwestern Ontario to become a meditation/spiritual development centre. The seniors camping facility, slated to open in 2021, will include yurts or cabins and washrooms designed for seniors. “I’m going to be my own customer too, so I’m driven to make that happen,” Ron said.

He has no plans to retire. At age 75, after several serious bouts of pneumonia and open-heart surgery, he has slowed down somewhat. “Eight hours (a day) at this point, cuz I have to allocate time for my health.”

“Like I’ve always said to people, when they ask when I’m going to retire, it’s impossible to retire, because I haven’t worked a day in my life. How can you retire when you’ve never worked? It’s just been a lot of fun.” ◆

The Marketplace September October 2018

From farm to market Photos by Clair H. Sauder

Tanzanian firm processes and distributes natural products Sara Kessy, pictured below and lower left, is the founder of Halisi Products. Halisi is a MEDA lead firm that works with 1,000 suppliers, mainly women farmers, in Tanzania’s northern Arusha corridor. Halisi, a Swahili word that means natural, processes soya meal, porridge, peanut butter and two types of honey — regular and stingless bee. They also sell spices grown in Tanzania.

Halisi has 1,000 customers who buy its products for distribution to supermarkets, wholesale and retail shops.

Kessy will be a panelist at MEDA’s annual convention in Indianapolis, Nov. 8-11.

Signs at Halisi’s processing plant

Kessy shows a low-tech device she uses to remove contaminants from grains as MEDA project manager Lilia Tverdun looks on.

Kessy started her firm at home, building a processing unit in her back yard. After five years, she moved to a larger facility. MEDA began working with Halisi in August 2017 as part of the Strengthening Small Business Value Chains (SSBVC) project, with financial support from Global Affairs Canada. Through a two-year partnership with MEDA, Halisi aims to improve farmer productivity by 50 per cent, engaging 1,200 small enterprises, at least 40 per cent of them women-led.

Farmer training includes post-harvest handling of crops, good agricultural practices and understanding farming as a business. The project is also training suppliers to meet regulatory compliance standards of local and international markets, including occupational health and safety rules.

MEDA has helped Halisi to afford three additional staff and ensure that environmental sustainability practices are followed. ◆

Kessy stands next to a bagging machine for her “nutritious flour” porridge, which contains maize, rice, soya beans, nuts and millet.

The Marketplace September October 2018

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Overcoming barriers to development MEDA Libya uses online courses to train women entrepreneurs

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Photos courtesy MEDA Libya

n international development work, a variety of factors can combine to limit the reach and effectiveness of training programs.

Even when clients are clamoring for the services being offered, issues around culture, language and traditional gender roles can slow down progress.

Add armed conflict or political instability to the mix and progress requires Online training extends MEDA’s reach patience, perseverance, innovation and ingenuity. posed a little bit of a challenge for This has been the history of the women to be gone for such a MEDA’s work in Libya since 2011. long time.”

When MEDA received a $2 million Some of the women had to bring award from the United States Agency chaperones, as they couldn’t travel for International Development (USby themselves.

AID) to do business development “We saw this outpouring of intertraining for women, an initial call for est in this type of information and participants got responses from close this type of training on the part of to 700 women who wanted women in Libya,” to attend. said Bramm, who MEDA developed matemanages the Libya rials and hired a local trainer project but hasn’t to deliver the sessions. yet been able to The first effort involved visit the country. in-person training that was The success five days long, in Tripoli. of the Libya proMEDA only had capacity to gram to date can train up to 200 people. be attributed to the People who lived project’s all Libyan farther afield had issues staff, including field traveling in, recalls Adam project manager Bramm of MEDA’s WashIntissar Rajabany, Adam Bramm ington DC office. “That Bramm said. When The Marketplace September October 2018

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all other international staff were leaving Libya due to the escalating security situation, MEDA’s Libya team continued to find innovative ways of supporting women entrepreneurs, he said.

To date, MEDA has been unable to get visas for North American staff to visit.

“Knowing a little bit more about the context, some of the security issues and travel issues and things like that, going into phase two, we were looking at ways that we could overcome some of those obstacles.”

Since it was not practical for MEDA to open other offices in Libya, they began to explore delivering online distance education. Research into various possibilities led MEDA to Kitchener software firm D2L, which develops learning management systems used by universities, colleges and training organizations.

Bramm knew that the project would need help transitioning from instructor-led to self-guided, online courses, making D2L the best choice.

“It was almost like a one-stop shop.”

Among other benefits, D2L has Arabic language capability for its Brightspace software product, a necessity for the Libyan context. Even so, it took several months to ensure the product would be ready for the women to use, Bramm said. “We spoke very different languages.”

D2L was new to working with non-government organizations, and is more accustomed to working with large institutions, multiple courses and thousands of students, he said.

Helping the firm understand what Libyan women were like and what they are capable of made the launch process longer than initially envisioned.

After running the site for a year, MEDA realized that there were a few hiccups around translation, language and Libyan dialect.

MEDA hoped to have 300 women use the system, but found that many users didn’t have the patience for a two-step process of registration and enrolment.

“Their username didn’t work properly when they tried (to sign in) so they got frustrated. We had to get D2L to fix it, and in the meantime they (women) sort of lost interest.”

To date, only 50 women have made it through the online course.

The initial site, which required downloading PDF-based content, wasn’t super friendly for mobile phones. Most Libyan women connect to the Internet via their mobile phones, often using Facebook and Twitter to keep in contact. While MEDA checked to see if Libyan women had Internet connections before starting the pilot, they didn’t understand the significance of most women connecting through their phones.

In the developing world, “mobile technology has leapfrogged over fixed internet connections,” he said.

A group of keen Libyan clients

MEDA is building networks for Libyan women

“That was kind of a blind spot in our design.”

To keep things simple, they avoided putting a chat board function in the first version of the online course, only to learn later that was a feature the participants wanted.

At the same time Bramm is convinced MEDA couldn’t have developed an online training course without D2L’s help.

“Our potential audience is in the thousands, I would say. We just have to make it easy for them to use.”

The online learning platform is just one component of the Libya project. The team continues to build business networks for women, providing matching grants for business growth and start-up, mentorship opportunities, and information communications technology skills courses.

Some women who have participated have made business connections and become each others’ vendors.

Technology for development is an iterative process, Bramm says. Success will come, provided that donors are okay with incremental progress.

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Going forward, the plan is to make adjustments to the platform based on women’s feedback. “We can just keep doing that until we hit it right.”

Brightspace is rolling out a new interface for their platform and there has been some discussion with them about providing a Facebook single sign-on authentication, he said. “We are looking at ways we can improve the web-based platform.”

In some countries, MEDA might be able to work with a local government. That’s not a possibility in the context of a country that has three governments at time of this writing.

“Which of them do you want to tie yourself to?”

Siding with one of the factions over others would constitute a political statement that could be seen unfavorably by other militias, he said.

Beyond Libya, there could be multiple opportunities for using the distance education software, Bramm said. MEDA’s Jordan project is looking at using the Brightspace platform once any bugs are worked out. MEDA’s Ethiopia team is interested as well.

MEDA’s work in Yemen, which also needs to be done remotely due to the ongoing civil war, could be an interesting place for virtual training, he said. ◆ The Marketplace September October 2018

Keeping track of business Ukraine farmers use Excel-based calculator to record costs, sales and the bottom line

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few years ago, farmers in the Ukraine rarely tracked their financials in the same manner as most businesses.

That meant they often lacked the figures or evidence to show whether certain crops, or their business, was successful or not.

Even those people who used paper-based records, simple Excel sheets or accounting software lacked the guidance, business logic and direction

to properly work with data in a way that would provide useful information.

MEDA’s Ukraine Horticulture Business Development Project (UHBDP) tackled this problem and provided a new tool for its clients.

The resource is an Excel-based business calculator for farmers. Filling in the fields doesn’t require much effort or take much time.

The calculator is divided into three sections: Our business, the

needs of our family, and comparison of needs with business opportunities.

Clients enter descriptions of expenses, amounts and when the expense was incurred in the appropriate cells. They also add income amounts, when that was received, and sales markets.

The calculator can analyze revenue and expenses for up to 10 crops, providing information on cost of production, profitability of

Alexandra Harmash, MEDA Ukraine’s gender and cross-cutting services manager, developed a business calculator to help farmers keep better records.

The Marketplace September October 2018

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each crop and amount of income. It also calculates the amount of money that should be set aside for other business needs and to buy equipment.

MEDA staff developed the calculator following five years of close co-operation with clients. The tool is aimed at small and medium-sized farm operations run by farmers who don’t know how to apply and organize financial records in their business or cannot afford to hire others to assess their business performance.

The calculator helps farmers make efficient management decisions, as large enterprises do.

Three months after the first training session on using the calculator, 53 clients had provided feedback.

Client Nadiia Kompaniets was disheartened by the first results for using the tool, as the calculator showed losses. Then she remembered that she had not included products stored in a warehouse.

She now uses the calculator to determine the profitability of cultivating new crops beforehand. “I planned to plant strawberries,” she said. “I know approximate amount of my expenses and I entered the minimum yield and the price of berries in the calculator. “I already see what profit I will have from this plot of land and whether it is worthwhile to be engaged in growing strawberries, or if it is more profitable to plant something else.”

Olga Shkribliak is also impressed.

“Daily accounting shows whether we earn or not. The calculator helps to understand whether growing this or that crop makes any sense. This makes us think about modernization and the implementation of energysaving technologies.”

Another client, Olga Mizina, entered five years worth of costs for all crops into the business calculator. Her grapes had been killed by

frost the previous winter, and the family was debating whether to try again. Based on the results of all the crop information they entered, Olga could see that grapes were not a profitable crop on her family’s farm.

“The bcalculator has a great advantage, namely it allows making calculations in small business too,” she said.

“Very few small business owners keep records in general.”

MEDA staff have found some behavioral changes among farmers who have been exposed to the tool. People are open and eager to apply the calculator.

Ukraine staff want to test whether the tendency will 19

survive and whether demand for the business calculator will grow to encourage people to be as attentive to their financials as they are to inputs and other technology. ◆

The Marketplace September October 2018

Review

Challenging the way our society matches risks and rewards

By Henry Friesen The Value of Everything: Who Makes and Who Takes from the Real Economy by Mariana Mazzucato (PublicAffairs, 2018 368 pp, $28 US, $36.50 Canadian)

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f you believe the world’s economies are working just like they should, don’t bother reading this book. If it’s never troubled you that the chief executive officers of the Fortune 500, (the five hundred most profitable US industrial corporations), earn more than 300 times the average worker’s wage, or that the estimated wealth of the world’s 62 richest people in 2015 was equal to that of the bottom 3.5 billion, this book will just annoy you. But the book is a mustread if you’ve been concerned by the inequities in mature economies that seem to grow unchecked.

The Value of Everything will rekindle a much-needed debate about the kind of world we really want to live in. The author argues that we must re-visit the basics. She dissects the status quo and challenges how our society matches risks and rewards.

What is value — and who creates it? How can we avoid rewarding activities that merely shift value around, or worse, actually destroy it?

Is value merely the price for something? Or is it time to consider value first, and price second? Most of us have unwittingly accepted the dominant narrative that price dictates value. In Mazzucato’s view, many problems in our economy are a result of our inability to distinguish among activities that create, redistribute and destroy value.

The Marketplace September October 2018

“Many problems in our economy are a result of our inability to distinguish among activities that create, redistribute and destroy value.”

The author, a professor at University College London, backs up her challenge to the status quo with many current examples. The financial sector, big pharma, and leading technology firms are some of the newsmakers she uses to expose the weaknesses in the way our world runs.

She is alarmed with the shortterm focus of most investors and the managers in charge of their investments. She predicts that unless the 20

players in our society, including governments, work together to make it more attractive to invest for the long term, rather than chasing profits with millisecond trading, the next financial crisis, or worse, is inevitable.

Books that challenge the status quo often leave me wanting more practical advice. The Value of Everything addresses societal and economic issues at a macro level, but there was little information for what individuals can do to help reframe how value is defined in our society.

As a follower of Jesus, I couldn’t help wondering whether being a Christian makes a difference. Do our actions testify to our belief that God owns everything, that value has an eternal dimension? As you read the book, I encourage you to consider your own business and investment values.

The Value of Everything concludes the way it began, as an attempt to “open the dialogue by showing that the creation of value is collective.” Mazzucato believes that criticism is “a necessary preliminary to the creation of a new economics: an economics of hope. After all, if we cannot dream of a better future and try to make it happen, there is no reason why we should care about value. And this perhaps is the greatest lesson of all.”

I highly recommend the book. It scratched where I itched. ◆ Henry Friesen is a chartered accountant who lives in Niverville, Manitoba, south of Winnipeg. He cites the $600,000 earned over the past year by the board of a bankrupt Canadian retailer, while pensioners see their benefits slashed, as evidence of the accuracy of Mazzucato’s critique.

Convention will focus on roads to enduring livelihoods

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ntersections, Roads to Enduring Livelihoods is the theme of MEDA’s annual Business as a Calling convention, to be held Nov. 8-11 at the JW Marriott Hotel, in Indianapolis, Ind. Greg Brenneman, a corporate turnaround expert who is executive chairman of private equity firm CCMP Capital and author of the book Right Away & All at Once (see excerpt, pp. 8-9), will provide the opening plenary address on Thursday evening.

Brenneman’s career has included stints as chief executive officer of Continental Airlines, Burger King, PwC Consulting, and sandwich chain Quizno Sub. Friday’s lunch panel will explore intersections between small-scale farmers in North America and in developing regions. The session will feature: • Lali Hess of the Juniper Spoon, a full-service catering firm serving central Indiana. Juniper Spoon grows some of its own food and purchases most of its ingredients locally.

• MEDA board member Marianne Unruh. Her company, Fresh Solutions, provides on-the-ground buying services to retailers and food service vendors in several US states.

• Rose Mutuku, the founder of Smart Logistics Solutions, a Kenyan firm that partners with MEDA’s MSAWA (equitable prosperity) project.

Since her 2009 start-up, she has expanded to work with 5,000 farmers.

Smart Logistics sells large volumes of cereals and legumes to large firms and processes legumes, packaged for retail, targeting households of modest means.

• Sarah William Kessy, managing director of Halisi Products (see photos, pg. 14), a Tanzanian food processing company. Halisi is a lead firm that partners with MEDA’s Supporting Small Business Value Chains (SSBVC) project in Tanzania.

Halisi manufactures food products by sourcing raw materials from farmer suppliers in three main categories: cereals, legumes and bee products. It currently partners with 1,000 smallscale Tanzanian farmers.

Saturday evening’s program will celebrate Allan Sauder’s 31 years of service with MEDA. Sauder, MEDA’s longest-serving president, will retire at the end of 2018. He joined MEDA as a field project manager in 1987, later working as director of international operations (see story, pp. 6-7).

Shannon Dycus, co-pastor of First Mennonite Church in Indianapolis, will present the Sunday morning message. She will speak on the theme “Intersections: Her Touch, Our Faith and the Power of Jesus.”

Dycus is active with Faith in Indiana, a network of faith communities seeking justice and holds multiple leadership positions with Mennonite Church USA. The convention will also include 21

MEDAx, a conference for young professionals under the age of 40. The MEDAx track will include a panel discussion of business professionals and social justice activists and a competition where social entrepreneurs and community innovators can pitch their business to a panel of judges for a chance to win $5,000.

David Richert of Richert Racing will take part in a Thursday tour to the Indianapolis Speedway, Friday seminars and the MEDAx kick-off event. Richert, who has spent the last few seasons racing on circuits through Europe, including the Monaco Grand Prix Formula 1 race, will talk about how racing, business and faith intersect in his career.

A range of seminars will allow attendees to hear about MEDA’s projects and philosophy, business, faith and philanthropy.

Among them: • Creating business solutions to poverty in an age of climate change • Gender equality and business — how women enhance business growth and impact • Youth for growth: transforming economies through agriculture • Thoughts on excellence in philanthropy • Which is easier: cross-cultural connections in business or the church?

• Stories from the field, by MEDA staffers • From driving tractors on the prairie to driving cars in Monaco • How MEDA’s EMERTA project is touching Ethiopian lives • Lead firms: leading small entrepreneurs to prosperity • At the crossroads of culture ◆ The Marketplace September October 2018

News

Walking Ontario trails to support Nigerian women

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lose to 60 people from across southern Ontario spent five days in mid-July hiking the southern section of the Bruce Trail to raise money for MEDA’s Nigeria Way project.

MEDA has a five-year project in Nigeria’s Bauchi state to promote youth entrepreneurship and women’s empowerment. The Nigeria work, which began in 2017, is a $15 million project funded largely by Global Affairs Canada, with a $1.1 million contribution from MEDA. The group, which covered over 60 miles (100km) of the trail in southwestern Ontario’s Niagara region, included over 10 different companies.

Those firms provided support to their staff to participate. The firms are

The Marketplace September October 2018

members of the Ontario Long-Term Care Association (OLTCA).

Most staff at OLTCA seniors facilities are caregivers, predominantly women. MEDA’s Nigeria project, with its emphasis on economic inclusion and reduction of early and forced child marriage, resonates with the staff of the various participating firms.

The Nigeria Way project aims to increase the contribution by entrepreneurs and small-scale businesses, particularly those run by women and youth, to Nigeria’s economic growth.

This was the second summer that supporters hiked a portion of the trail as a channel for corporate philanthropy and employee engagement and fundraiser for MEDA. Over

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the past two years, hikers have raised more than $175,000 CDN (almost $135,000 USD) for women’s economic empowerment projects in Ghana and Nigeria.

“We are so grateful to peopleCare, ProResp and the other companies who joined in this year,’’ said Helen Loftin, MEDA’s senior vicepresident of marketing, who was one of the hikers. “We admire that they are engaging in corporate philanthropy that shares their companies’ values with those of their employees.

“The trekkers were wonderful to hike alongside. We encourage other firms to consider how they too might combine corporate giving with staff development in such an inspiring and fulfilling way.” ◆

Soundbites

Good news in poverty reduction

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n even-handed newspaper “could have run the headline Number of People in Extreme Poverty Fell by 137,000 Since Yesterday every day for the last twenty-five years,” Daniel Pinker notes, citing German economist Max Roser. In his new book Enlightenment Now, Pinker argues that contrary to widely-held views that the world is in ever-worsening shape, things are in fact getting better. There is a fascinating analysis of his argument in an article entitled “The Big Question” in a recent edition of New Yorker magazine. ◆

Believing the best

Bosses who want superstar employees need to think of them as such, research into the field of “expectancy

Comments?

Would you like to comment on anything in

effects” suggests.

But the physical and verbal cues they present in interactions with workers need to match, says an article in Entrepreneur.com. Employees who are made to believe in their own effectiveness can improve performance by up to 30 per cent, working harder and undeterred by setbacks.

Workers seen as mediocre are micromanaged, which leads them to become defensive, reinforcing the tendency to micro-management and undermining their confidence. ◆

Great ideas don’t always get good grades.

Take the example of delivery giant FedEx, which had its genesis in a college term paper.

Founder Frederick Smith was an undergrad student at Yale in 1966, studying topology — ways to connect service points through a central hub to geometrically improve efficiencies.

Smith recognized that guaranteed overnight delivery would be required in the new economy, and no one was at that time prepared to meet the need.

He got a poor grade on the paper but used the idea five years late to obtain planes, set up a hub and incorporated delivery trucks. The company bled red ink for its first four years but had sales of $1 billion by 1983.

An article in AdWeek magazine notes that each day, FedEx ships 14 million packages to 220 countries.

Sales now top $60 billion. ◆

this magazine, or on any other matters relating to business and faith?

Send your thoughts to mstrathdee@meda.org

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The Marketplace September October 2018

The Marketplace September October 2018

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