BusinessExaminer
SEPTEMBER 14, 2009
Okanagan
INSIDE Lake country tees off st.andrews golf land of summer the best employers
How BC Hit the Cash Pot
Tokue Suda Head Instructor, Abbotsford Judo Club
VISION 2020 VISION VISION 2020 VISION VISION 2020 2020202
2009 Business Opportunities Conference
The Okanagan Nation Alliance is the Tribal Council of Westbank First Nation, Okanagan Indian Band, Osoyoos Indian Band, Upper Nicola Indian Band, Lower Similkameen Indian Band, Penticton Indian Band and Upper Similkameen Indian Band. We invite local, regional and national business people to come and meet with us to discuss emerging opportunities to do business with our Bands and Band members.
Keynote Speaker Chief Clarence Louie
Chief Jonathan Kruger
If you are a representative of a development company, business person, investor, financial institution, educational institution, politician, municipal government leader or simply an entrepreneur with a great idea then you should attend this conference. The Okanagan Nation Alliance member Bands are a progressive and business minded group that wish to engage with non-Aboriginal businesses and organizations to create successful business ventures.
WE EARNED OUR BLACK BELT IN ENERGY CONSERVATION BEING POWER SMART MAKES BUSINESS SENSE Determined to improve their lighting, the Abbotsford Judo Club visited the BC Hydro Power Smart website for information. To their surprise, they ended up with more than just better lighting. By replacing their old fluorescent lighting with energy-efficient fluorescents, the Club received a financial incentive through the Power Smart Product Incentive Program. The new energy-efficient lighting has not only provided a revitalized environment to work and train, it is an upgrade that will pay off for years to come. The Club will be saving up to $600 a year in electricity costs. When it comes to conserving energy, the Abbotsford Judo Club truly has it mastered.
Grand Chief Stewart Phillip
VISION 2020 SEPTEMBER 22-23, 200 Luby Pow
SEPTEMBERSEPTEMBER 22-23, 2009SEPTEMBER 22-23, 2009 22-23
The Okanagan Nation Alliance is proud to announce our 2009 Business Opportunities Conference at the Penticton Trade and Convention Centre on September 23rd.
Last year’s Conference generated over $200 million in new economic development activity between the private sector and the Okanagan Nation. Don’t miss the opportunity to become part of this ongoing success story.
Presentations include: “Understanding Today’s Social Media Opportunities” | “Southern Interior Development Initiative Trust - Opportunities” | “Twisting Online Media to your Advantage” | Keynote Speaker - Chief Clarence Louie | “Branding - Reinforcing Your Brand” | “Human Resource Strategies” | “Information Technology” | “First Nations Finance Authority”
SEPTEMBER 22-23, 2009 Geoff Greenwell
Networking Sessions: Each of our Bands and our Business Development Unit will have specific rooms available to allow for private meetings between participants and key decision makers from our Bands. Refreshments will be served during the morning and afternoon sessions, and a buffet lunch will be provided at noon.
SEPTEMBER 22-23, 2009
Peter Matejcek
Adam Less
Booth Space: Companies and organizations wishing to display information on their products and services may rent floor space for their own 8’ x 10’ booth for $750.00. This fee will also include 2 free delegate passes to the conference and a table and 2 chairs for the booth. Prominent placement of corporate images and verbal recognition will be given to our sponsors throughout the event.
Tony Peyton
Shelley Gilmore
There is a $149.00 fee to attend this ground breaking conference and space is limited to the first 400 attendees.
Sponsorship and Support
Room Reservations: Both The Sandman Hotel and The Ramada Inn are offering special rates for the Conference. Major sponsors: Sandman Hotel - sales_penticton@sandman.ca Ramada Inn - christy@pentictonramada.com
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September 2009 Okanagan Business Examiner
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together to achieve desired results. In an effort to help each other expand their capacities to enhance the local business community the Kelowna Chamber of Commerce, Okanagan Science & Technology Council (OSTEC) and the Central Okanagan Economic Development Commission (COEDC) are collaborating to host a series of six seminars and workshops. The seminar series was created for local businesses to gain access to expert knowledge on how Collaborate Help Localin Business to Organizations maximize business opportunitiesto and revenues the current economic climate. The ‘Thrive, Not Survive’ seminar series, which is being sponsored by the Business Development Bank of Canada, will offer guidance to help ensure businesses are fit for future growth. Special Advertising Feature “Now is a great time for businesses to do an internal audit and plan for their future growth,” says Robert Fine, Manager of the Economic Development Collaboration is a process of participation Commission for the Central through which people, groups and organizations Okanagan. “Our region work together to achieve desired results. In an experienced double digit growth effort to help each other expand their capacities to enhance the local business community the from 2004 through 2008 where Kelowna Chamber of Commerce, Okanagan Science local businesses were faced with & Technology Council (OSTEC) and the Central challenges of keeping up with the Okanagan Economic Development Commission demand. Now more than ever (COEDC) are collaborating to host a series of six seminars and workshops. businesses should plan and implement systems and The seminar series was created for local programs to help sustain their businesses to gain access to expert knowledge on how to maximize business opportunities and company.”
revenues in the current economic climate. The ‘Thrive, Not Survive’ seminar series, which is Seminar and workshops will be being sponsored by the Business Development held thewill first Bank on of Canada, offerTuesday guidance to helpmonthly ensure businessesin are October fit for future growth. starting and will cover
such topics as accessing “Now timely is a great time for businesses to do an capital, business planning, internal audit and plan for their future growth,”cash says management, Robert Fine, Manager of the Economic flow marketing and Development Commission for the Central networking strategies. Okanagan. “Our region experienced double digit growth from 2004 through 2008 where
“Our members have requested local businesses were faced with challenges of keeping with the learning demand. Now more than ever that weupoffer businesses should plan and implement systems and opportunities relevant to their programs to help sustain their company.” needs, and we feel that this Seminar will and workshops will be held on said the first series do just that,” Tuesday monthly starting in October and will cover Weldon LeBlanc, CEO of the such timely topics as accessing capital, business Kelowna ofmarketing Commerce. planning, cashChamber flow management, and
THRIVE NOT SURVIVE SEMINAR SERIES Prepare your business for a growing economy
With recent economic unrest, it is essential that business owners know how to keep their business on track for success. The choices that businesses make now will determine how they will fare in the growing economy, so make the right choice and join us for the first Tuesday of every month from October 2009 – March 2010.
October 6, 2009
Accessing Capital
November 3, 2009
Business Plan Workshop
December 1, 2009
Cash Flow Management
January 5, 2010
Small Business Law
February 2, 2010
Marketing Your Business
March 2, 2010
Pitch Your Business
networking strategies.
The Director of “OurExecutive members have requested that we offer OSTEC, Douglas MacLeod said learning opportunities relevant to their needs, and we feel thatexcited this series willto do be just that,” said “We are working Weldon LeBlanc, CEO of the Kelowna Chamber and of with the Kelowna Chamber Commerce. the Commission on hosting this The Executive Director of OSTEC, Douglas MacLeod seminar series. Attendees will said “We are excited to be working with the benefit greatly from the expertise Kelowna Chamber and the Commission on hosting of this the topseries. notch speaker seminar Attendees will benefitlist.” greatly from the expertise of the top notch speaker list.”
Location: Coast Capri Hotel, Kelowna BC Time: 2:00 pm to 4:30 pm Registration and more information: www.ostec.ca/events.asp Package Price for 6 seminars: $100.00 (SAVINGS OF $50.00! Get yours NOW, limited packages available) Individual Seminars: $25.00 each
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Rea l Estat e Law | Busi ness Law | Li t igation | I nj u ry Law | Abo r i g i nal Law
Okanagan
INSIDE LAKE COUNTRY TEES OFF ST.ANDREWS GOLF
Let the games for Tourism BC begin!
LAND OF SUMMER THE BEST EMPLOYERS
It is so easy to dress up every government decision with nefarious motives because, frankly, so many decisions are so badly explained that it leads people to believe the decision makers are either incompetent, incredibly stupid or they have a hidden agenda. HOW BC HIT THE CASH POT
Cover Photo by Shawn Talbot SEPTEMBER 1 4 , 2 0 0 9
ISSUE HIGHLIGHTS Eliminate marijuana, kiss off the B.C. economy
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Summerland - profile
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St Andrews says ‘no’ to more delay
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He says the province’s tourism ministry and BC Tourism were duplicating each other’s efforts and wasting money. Krueger claims there will be savings of “hundreds of thousands of dollars, maybe millions” in administrative costs.
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Perhaps so, but the Games will be held in February of 2010. The integration of the 146 employees will be completed in April 2010.
The great resort trade-in
Does it make the slightest bit of sense for a major restructuring with the inevitable confusion, lost time and energy that always accompanies a major shake up of this proportion, a mere six months before the province’s biggest tourism opportunity since Expo ’86?
D E PA R T M E N T S
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Last month the provincial government dissolved Tourism BC, dismissed (fired?) Tourism BC president Rod Harris, who received high praise from other tourist professionals like Stephen Regan of the Council of Tourism Associations. Harris and BC Tourism’s Board of Directors will be replaced by Deputy Minister Lori Wanamaker and an advisory council appointed by the government. Tourism Minister Kevin Krueger told the Vancouver Sun he did it for reasons of efficiency in the “last sprint” to the Olympic Games.
A healthy argument Dominik Dlouhy
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Movers & Shakers
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Poison of the negative employee - Shelley Gilmore
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Calendar of Events
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As for efficiency, looking back to Tourism BC’s creation in 1997, it was one of the few things the NDP government did that the Liberals, then in opposition, grudgingly supported. At the time the Liberals said a crown corporation would function more efficiently because it could operate without political influence. Today the Liberals must believe that political interference and agendas no longer have an impact on big budgets and important government ministries. Oh wait, that’s because they are the political masters and not the opposition. It might just matter too that they are
facing enormous deficits that only two months ago they swore were impossible. The NDP say the decision was made so that more face time would be given to the Liberal government. I’m sure that idea doesn’t displease the Liberals, but as a Canadian government with a majority the Liberals can siphon money off from any budget they want to promote themselves. What this really means is that the NDP don’t understand why the Liberals did this either. If the Olympics are a big success next year I guarantee you'll hear a lot about that. If they are a mess for any reason the Liberals will bury the whole business as quickly as possible, if they can. While the true reason is still hidden by Krueger et al, one thing is definite. Kevin Krueger has trashed the whole governing board and structure months before an enormously important tourist event that we, as taxpayers, have pumped billions of dollars into. And he’s done it when the industry was suffering under a worldwide recession and a stronger Canadian dollar. He has also decided to hide the real reason, trotting out moronic and bland verbiage instead. I hope the real reason has some merit for the Olympic Games or the B.C. tourist industry in general, but I doubt it for the simple reason that the Liberals would love to get credit for doing it if there was a good reason. The Liberals have made some very good contributions to the province and it would be sad to find that Krueger or someone else is playing this restructuring out because of some personal vendetta or political agenda. Almost as depressing to believe they just made a really stupid blunder of this magnitude at this late date in the Olympic calendar. Devon Brooks is the managing editor of the Okanagan Business Examiner.
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www.bensonsalloumwatts.com
B.C. Bud or Bust Deanna Brooks
Marijuana Grow Ops in British Columbia by region 1997-2000 Estimates by Professor Stephen Easton
Region
1997
1998
1999
2000
Greater Vancouver
2975
4188
5625
8394
Fraser Valley
775
1025
1394
1756
81
106
106
206
Nanaimo
613
725
731
913
Comox-Strathcona
456
563
731
888
Capital-Victoria
563
450
738
619
Cowichan Valley
275
519
581
406
Sunshine Coast
50
219
213
156
Alberni-Clayoquot
88
113
119
113
-
100
94
119
38
63
Thompson-Nicola
294
575
519
506
Central Okanagan
238
350
506
519
North Okanagan
169
313
294
500
Okanagan-Similkameen
175
231
269
344
Columbia-Shuswap
156
156
206
225
Thompson-Okanagan Totals 1031
1625
1794
2094
Fraser-Fort George
144
175
269
406
Cariboo
144
181
163
381
Central Kootenay
200
281
475
388
Kootenay Boundary
81
238
244
131
East Kootenay
88
125
138
181
Kitimat-Stikine
63
75
75
156
Skeena-Queen Charlottes
44
38
31
13
Central Coast
6
-
-
6
Bulkley-Nechako
81
44
50
Peace River
25
31
69
44
Northern Rockies
-
6
13
6
Province Totals
7819
10956
Squamish-Lillooet
Powell River Mount Waddington
75
13738
56
119
17550
The marijuana industry in British Columbia is booming. Popular culture in British Columbia certainly supports marijuana, BC Bud is practically a brand name and the province is commonly referred to as ‘British Colombia’ and Vancouver as Vansterdam. Vancouver is the home of Marc Emery, the marijuana advocate known as the Prince of Pot, and of the Marijuana Party. Naturally B.C. is also home to one the biggest underground drug markets in Canada and, unfortunately, because of prohibition, the drug lords are the biggest beneficiaries not only of drug sales, but of misguided and so far, futile efforts to quash the industry. Since the marijuana market is underground it is hard to get the exact numbers of grow ops in B.C. Statistics Canada shows drug offence rates in British Columbia over the past 30 years have consistently been among the highest in Canada. Stephen Easton, a professor of economics at Simon Fraser University, wrote a report in 2004, called Marijuana Growth in British Columbia, that estimated the numbers of grow ops in B.C. Using Easton’s estimates for comparison its easy to see that B.C.’s marijuana market is still strong, and likely bigger than ever. The cause, Easton suggests, is prohibition. Prohibition artificially inflates the market. The hazards involved in growing and dealing illegal substances, such as theft, fire, and the police push the market price way up. This also means that the more efficient law enforcement and legislature is at busting, prosecuting, and creating laws to criminalize marijuana distribution, the higher the inflation rate will be. In Easton’s report he estimated that the marijuana market would have earned 7,156 million dollars in 2000. His many formulas take into account variables such as how or in what quantity the marijuana is sold, whether it is sold in Canada or the U.S., and the percentage of total grow ops that police bust. The chart below indicates the numbers of grow operations (grow ops) in B.C., for 1997, 1998, 1999, and 2000 suggested by his formulas.
The chart also shows that across the province the trend is for increasing numbers of grow ops. Only the northern parts of the province have experienced declines, which are more than compensated for by the huge growth in the southern parts of the province.
more benefit is probably derived by industry in smaller centres than in large ones. Greater Vancouver, which boasted 8,394 grow ops according to Professor Easton’s calculations, had a ratio of approximately 237 people for every grow op. Nanaimo’s 913 grow ops each served only 139 people each while 500 operations in the North Okanagan have a ratio of one to every 147 local residents. These numbers don’t mean a great deal since the size of the grow ops are vital and it is difficult to know how much of the Vancouver or Nanaimo product from the grow ops is consumed locally rather than sent off for export. Equally uncertain is where the biggest profits end up.
The formula used in the above table uses a probability of being busted at 16%. For 2008, Staff Sergeant Dave Goddard of the B.C. Drug Enforcement Branch guesses that the actual bust rate is considerably lower, perhaps less than 10%. Officers spend millions of tax payer dollars annually in enforcement, but they concentrate mainly on the “larger activities and exports.” This means that many small mom and pop marijuana outfits may be overlooked. The law enforcement is effective enough in Vancouver, Goddard says, that many larger operations are moving into the interior. Marijuana growers and dealers are being pushed into the smaller communities, continues Goddard, and it is making them harder to find.
While exact numbers of grow op busts in B.C. for 2008 are not available to the public Goddard says it seems the marijuana industry is the same or bigger than it was in 2000. Growers and dealers have more sophisticated equipment and are better at disguising their operations than ever before. The marijuana industry is not just growers and dealers; it involves a complex network of realtors, house owners, growers, clippers, weed brokers,
Interestingly this is one of the few cases where
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Healthy investment Dominik Dlouhy
Photo contributed | Cannabis Culure is put out by marijuana advocate Marc Emery or was until he was charged at the U.S. government’s request and Canada agreed to extradite him. In the U.S. Emery faces a sentence of five years to life. Expected effects on consumption: zero. Expected effects on the industry: higher profits to criminal drug lords and a set back in the efforts to end prohibition.
BUD OR BUST CONTINUED FROM PAGE 9
border jumpers, hydroponic equipment suppliers, carpenters, front businesses, and much more. Even lawyers and business brokers have been caught cashing in on this ‘green’ industry. Some people are willingly involved, some are unknowingly involved. ‘The Union: the business behind getting high’ is a documentary that came out in 2007. The documentary estimated that 90,000-150,000 people work in the marijuana industry in B.C. Others rate the employment figure higher, but The Union’s numbers represent 4.1 to 6.8% of the working population of the province, based on 2006 census data. The title of the documentary refers to the union of the marijuana industry. In it are all the people who take a risk, for cash, for gang glory, or just for the love of weed. The documentary goes so far as to suggest that law enforcement and the government don’t want to legalize marijuana because of all the money that they have wrapped up in combating the industry. In Easton’s report, he estimated that the cost of housing the grow op, hiring workers, and distributing the product ate away 45% of the profit. In big, high risk operations costs may be even higher. If you include in this industry all the officers used in law enforcement, lawyers and judges used in prosecutions, as well as all the people who have been prosecuted for possession, growing, or trafficking, the marijuana market is where the money is, in B.C., for both sides of the law. Although marijuana is a money making market it is controlled mostly by gangs who reap most of the profit while tax payers and marijuana customers are the ones who pay. By keeping such a widely
used and popular drug as an illegal substance the Canadian government artificially inflates the market and leaves the control of distribution to the gangs, who are more concerned with profit and not getting caught then the work conditions for their employees or the social implications of the unregulated distribution of mind altering substances. A clipper who wishes to remain completely anonymous, even 10 years after doing the work, describes the conditions of a large grow op in the Okanagan. “It was scary,� the clipper begins. “They picked you up and blind folded you so you can’t tell where you are going.� Once the clippers got there, they had to strip, wash, and redress in work clothes. Often the clippers would work over a weekend or a week without being able to leave. “The dealers provide lots of food and booze, and you are allowed to smoke [marijuana] there but you can’t take any of it with you. They are always watching you and you have to stay in your area.� The clipper says that even now it is scary to talk about it and that even their sex needed to be kept out of the article for reasons of anonymity. The clipper got paid $25 an hour but admitted that the money wasn’t worth it. Drug dealers may pay lavishly for the services rendered but the extremes that were taken to protect the grow op and the atmosphere of paranoia was too much for the clipper to be comfortable with. “You never knew what they might do!� The clipper says the operation had several rooms of plants and was considered “pretty big�. These are the kind of grow ops that are becoming more popular in the smaller communities. This is especially true as the drug enforcement officers work extra hard at cleaning out Vancouver for the 2010 Olympics. Although both the drug
enforcement office and the clipper agree that with a bust percentage of below 10%, multiple small scale operations in communities of all sizes, and a culture more supportive of marijuana than ever before, B.C. has a thriving marijuana industry. In 2008 BC Business magazine rated the marijuana industry as the second most valuable in B.C. GDP, ahead of forestry and behind construction. They credited the marijuana industry with generating $7.5 billion dollars and employing a labour force of 250,000. With so many people invested in the marijuana industry, willingly or not, and so much money involved it is easy to see why Stephen Easton’s recommendation was to legalize marijuana. His study suggests the government could have made $2 billion of revenue in 2000. Money that would not have gone to support gangs, money that could go into education programs and responsible distribution facilities. Prohibition is only bringing back the days of Al Capone. Easton’s conclusion: “Removing the prohibition on marijuana production would permit society to replace today’s gift of revenue to organized crime with (at the very least) an additional source of revenue for government coffers.� This is more true today, in B.C., then it was in 2004. If questions of legality are set aside then marijuana would be an amazing cash crop for British Columbia. The system is already in place, the customers are there, and it would be very easy to find trained staff. All that is really missing is the red tape and taxes, and since Canadian are already paying the taxes for drug enforcement and education programs proponents are asking, ‘Why not take the next step and reap some of the profit?’
The baby boomers have been a driving force in our economy ever since they started being born at the end of World War II. They are a tidal wave of people who put new and different demands on the need for education, jobs, cars and housing, among other things. Books have been written for decades theorizing how their retirement would affect our lives, but we haven’t seen much in practice. Until recently, as the first of the baby boomers are now 64, and there are many more to come. The median age in Canada is about 39, with 14% over the age of 65. Statistics Canada projections suggest the proportion of seniors will reach about 25% by 2031, and 25% to 30% by 2056. Sheer numbers will increase too, as the population is projected to grow to 40 million by the late 2030s.
better ways of keeping people healthy. That’s good news, but it means demands on our health care system will more than double over the next two decades.
Ageing boomers have created extra demands and shortages in several areas, but with my wife on the wait list for foot surgery, I’d like to focus on health care.
Doctors are presently the gateway to much of our health care services. The number of physicians per capita in Canada has remained fairly stable, with about 2.1 doctors per 1,000 people from 1987 to 2003. B.C. is doing slightly better with 2.2 physicians per 1,000.
There is more to the baby boom story than more seniors on the way. Seniors now have a life expectancy in the mid-80s, and that is likely to increase. Medical research keeps finding new and
That probably means more than double the number of health care professionals. Our training and education capabilities need to be dramatically expanded, students enrolled and graduated before we see results. B.C.’s system seems to work well for those who know how to get access to it, perhaps through a family doctor. Emergency care also seems to be in good shape. The situation for those needing complex, but non-emergency care, from hip replacements to CAT and MRI tests, is not so good.
The number of doctors has grown with the population, but apparently not fast enough to
meet the increase in demands for their time and services. B.C. has increased the number of doctors and nurses being trained and started expanding hospital capacity, but a time lag of eight to 10 years between the start of schooling and entry to practice means we haven’t seen a dramatic increase in services yet. Note, this isn’t just about doctors. There are about registered nurses (about eight per 1,000 population), licensed practical nurses (1.8 per 1,000), physiotherapists (0.6 per 1,000), chiropractors (0.2 per 1,000), massage therapists and many others. Their numbers have been increasing in absolute terms, as well as in proportion to the population. It appears the less some groups like chiropractors and physiotherapists receive from B.C.’s Medical Services Plan, the better they have done at increasing their numbers. Better health care comes with a price tag. The only source of funding I can see is increased taxes, but I can’t imagine an election platform better designed to bring down a government, plus a newly elected party promising no tax increases for health care. In some ways, we voters will be our own worst HEALTHY INVESTMENT CONTINUED ON PAGE 33
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August 2009 Okanagan Business Examiner
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| www.businessexaminer.ca September 2009
in Highway 97 development
Treegroup, a Vancouver-based development company, has recently signed on the star power of pro-golfer Greg (The Shark) Norman. Norman will be redesigning Peachland’s Ponderosa golf course while Treegroup builds some 2,000 homes on the 400 acres surrounding the golf course …Helping over the next two decades. Okanagan If the building plans come to Businesses full fruition, Norm Porter of Treegroup, estimates it will double Peachland’s population of 5,000 at a cost of $1 billion. First up will be the rebuild of the golf since course, which is supposed to be 1993by 2011. complete
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Metro Liquor closes
Metro Liquor, a private specialty liquor store announced that it will close its Central Park store located at 1500 Banks Road as of September 18. Company spokesperson Sue Dulik says people are invited to their location at 1180 Sunset Drive, which is not far from Prospera Place. Dulik also says the company will open two new locations in 2010, but did not specify where the new stores will be located.
Former senator and longestablished businessperson Ross Fitzpatrick will receive the Order of British Columbia from the province in mid-September. Fitzpatrick invested in the mining, oil and gas and aerospace industries earlier in his life, but is now known more for his decision to develop Cedar Creek and Greata Ranch wineries and his extensive work on behalf of this region as a senator. He is also acknowledged for his work with local First Nation’s people who gave him the Westbank First Nation Recognition award. During the years when the Liberal government was in power Fitzpatrick provided a valuable conduit to the federal Liberals who have long been shut out of the area electorally.
tackles Kelowna history
Sharron Simpson, historian and author or co-author of books on Stanley Simpson, an early lumber baron of Kelowna and a relative of hers, Sun-Rype and the Kelowna General Hospital is now working on a general Kelowna history. People with photographs of the city from its earlier years are asked to contact Simpson by e-mail at sharronsimpson@ shaw.ca.
Kelowna city councillor Brian Given has lost his battle with brain cancer. The long-term councillor had worked on numerous committees and projects in his decade-long political career. Only 57, Given leaves behind his wife Gail Given and three children. Draper & Derriksan decide to drop Pedra
Sher Draper, manager of the Noll Derriksan-owned Pedra Leisure Clothing store in West Kelowna, says the story will be closing as of September 26. She says stock will go on sale as of September 14 until closing. The store can be found in the new Estates Square complex, visible from Highway 97.
loses only postal outlet
The only postal outlet in Penticton’s downtown core is closing. The outlet is located in the Smartshopper Discount store, which is owned by Lois Leonard. Leonard says she and Canada Post have been negotiating over the summer, but the crown corporation wants her to spend $50,000 on upgrades. She says most of that is cosmetic and unnecessary under these economic conditions. Canada Post says the contract is open if others wish to take it over.
step down from his post at the end of December 2009. Prior to this position Ramsden worked at Kelowna General Hospital for five years as COO and five years before that as CEO at the Okanagan Similkameen Health Region. Ramsden says it is time for him to move on. IHA says it will begin searching for his replacement immediately.
-with notes from Penticton Western News
Ramsden to quit IHA
The organization with the biggest budget in the interior will lose its top executive by the end of the year. Murray Ramsden, CEO for Interior Health, will
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Another local recipient of the Order of British Columbia is Hart Buckendahl, former mayor of Oliver and a passionate proponent of green, energy efficient measures and technology. Buckendahl worked for years on helping people to reduce waste by conducting energy audits, replacing inefficient appliances, lights and installing water saver kits. In addition he is well known for his many public appearances promoting better energy use.
Downtown Penticton
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receives Order of B.C. Business writer
Given succumbs to cancer
The Highway 97 Committee wants to set up meetings with the municipal governments of Okanagan Falls, Oliver and Osoyoos, the South Okanagan Chamber of Commerce and the Regional District OkanaganSimilkameen to plan out what they want the future expansion of Highway 97 in the south to look like. Looking north to highway improvements from Summerland to Armstrong, Robert Linttell, who sits on the Committee for the South Okanagan Chamber, says they need to decide where highway improvements should go. He says the standard four-laning process used in the northern parts of the valley may not serve the interests of the communities. Instead he asks, “If we had our choice, what would we want our corridor to look like?”
double Peachland
Central Park Mall
Under the auspices of the Recreational Infrastructure Canada fund, which is part of the federal government’s stimulus package, Kelowna is the recipient of $1 million for sports infrastructure. The one million grant is the largest available to one location. Total work will cost $3.54 million, of which the arena will get most, worth $1.8 million, to replace the roof and improve the arena floor. $870,000 will go to the Elk Stadium, $800,000 to the Apple Bowl and $70,000 to King Stadium. The announcement was made with local MP Ron Cannan and Mayor Sharon Shepherd. Aside from benefits to the community the Mayor says these upgrades are necessary to attract national and international sports tournaments,
South Okanagan wants say
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September 2009 Okanagan Business Examiner
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13
Transition plan keeps the business smart Nigel Brown
Gerry, VP of a successful air-conditioning design company, was surprised when 23-year veteran manager Clive suddenly announced he wanted to retire. Clive, aged 51, was a valued-employee, led a distinct and important business unit and was wellrespected. Yet, here he was in Gerry’s office saying he was done. After a candid conversation, it appeared to Gerry that while Clive was bored, tired, somewhat frustrated and increasingly uninspired…he didn’t really want ‘out’—rather he needed ‘different’. In an effort to explore a solution that might see his talents stay within the firm, Clive agreed to park any decisions for a month—and accepted Gerry’s referral for coaching. Over four weeks, Clive and I met to detail his career to date. He highlighted the areas he enjoyed and those he could not tolerate any more; what he considered significant, what was less meaningful and what aspects of his work he wished he wasn’t involved in. Clive also pondered what he wasn't doing, but would like to. He’d been informally mentoring several juniors and found that role meaningful… yet was frustrated that he had little time for that. Earlier in his career he led the establishment of new business processes, but had no opportunity to do this in recent years. Then Clive and I constructed his ideal job scenario. It included a cut to four days, removal of several responsibilities that left him cold and a shift in focus—more opportunities to mentor and to help the company review and refine processes. Clive’s employer was receptive. They didn’t want to lose the ‘human capital’ he represented and agreed his role could be reconfigured to meet the needs of both parties. The firm saw the value in Clive's desire to mentor, working with him on retaining and transitioning his knowledge and skills to ‘up-and comers’ within the company.
WHEN YOU’RE CUTTING BACK, Apparently Clive’s wife had also been anxious about LET US HELP MAKE UP THE his initial decision to walk away from his job. Once DIFFERENCE she realized it could be a planned, gradual transition
allowing Clive to retain his full time salary and benefits, she embraced it enthusiastically. She felt they would both benefit from his extra free time to start a new lifestyle.
In these uncertain economic times, everyone’s eyes are on the bottom line. When some of those little extra’s are being cut, let us make up the difference.
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14
| www.businessexaminer.ca August 2009
An open conversation with an employee to resolve an issue should become a common corporate planning issue as more employees reach 50. Not all conversations between employer and employee have a successful outcome, but the willingness to come to the table with the intention of finding a win-win resolution is a worthwhile step. Employee turnover is expensive, particularly when it is unplanned and involves long-time employees. Senior employees take knowledge, experience and contacts with them. If there is no mentoring provided for an employee taking over, continuity and quality is frequently lost in the transition.
Clive was a rare example of an employee speakingup about their desire for change. Fortunately he had an employer ready to listen. Too often employees don’t indicate their discontent and may leave despite being fearful of change. Roles that give status, influence and even power are difficult to move away from and the initial journey often feels too difficult and complex to discuss. Yet the outright, unplanned for loss of a valued employee is significant. It is also often not ideal for the employee.
BusinessExaminer
The Voice of Business in the Okanagan
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Employers who use transition planning have a strategy in place. It communicates the value of employees’ contribution and knowledge. It supports workplace practices, policies and creative and changing work opportunities that meet the needs of both employer and staff. Our current economic climate suggests many employers are laying staff off, but research shows there will be a shortage of younger employees to replace those retiring; creative strategies to retain ‘grey power’ are essential. There are many venues for initiating this discussion, whether through individual discussions, or as an employee group approaching this age and work-life stage through a workshop. To minimize workplace disruption a good transition plan should include the following:
• Overview of the organization’s policy re transition and willingness to support alternate work styles; • Clarity around specific responsibilities of parties in transition • Documentation on job descriptions and required skill sets, organization chart, technology strategies, and internal or external products delivered by particular positions; • External coaching or workshops for employees over 50 to explore transiting options and post-career life planning; • A training and mentoring plan for advancing and incoming employees • Individual exit checklist and time lines Finally it’s important to recognize the benefits mature workers bring to your organization: experience, knowledge, passion, and a good work ethic. Never close the door to them completely. Retired employees can become corporate ambassadors and even return part-time providing your ‘ask’ is flexible. Transition planning is a smart business investment. The needs of mature employees at the height of their responsibilities and knowledge in the last 15 years of their working life is crucial to the success of every business. Nigel Brown, principal of Life Planning Matters, coaches individuals and corporate groups on this transition from work to part-time work or retirement. T: 250-860-5408 nigel@lifeplanningmatters.com
Summerland
The Summerland of ‘09
Take pleasure in... ...stunning landscapes ...rolling hills, lush orchards ...beautiful golf courses ...local wineries
Devon Brooks | Photos by Devon Brooks
...the overall charm of Summerland
New Future Building Group is proud to be part of the excitement of Wharton Square in downtown Summerland
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Every community has its unique strengths. Some of those things, like beaches, are permanent. Others are temporary. In Summerland resides the Okanagan’s most positive mayor.
MAYOR JANICE PERRINO
That’s fitting since Perrino unleashes a barrage of superlatives whenever she starts to speak about her community. Her opening salvo is, “I always thought that Summerland was paradise.â€? Perrino was not born in Summerland, but there is no more enthusiastic recruit. The beaches are “the bestâ€?, the festivals “fantasticâ€?, the town’s golf courses “incredibleâ€? and even the ice cream store, the Sweet Tooth CafĂŠ is the best in the Okanagan. (While the ice cream is a standard product the store carries an enormous selection of flavours and creations topped up by superb service.)
Hunter’s Hill A Beautiful New View of Summerland!
In fact, one of the very few areas that Perrino sees a need to improve on is one she is tackling herself: “We need to brag about ourselves.� Despite her exuberant ways the Mayor is well aware of the serious issues and an understanding of what makes Summerland work: namely tourism, small business and the lifestyle. Like every where else on the continent, this past year has been hard on business, especially real estate and construction. The enormous Summerland Hills resort has been put on hold, but Perrino sees the slowing of the real estate juggernaut as a good thing. “I think we’re in the best time now that we’ve been in for a while because of reasonable, solid growth.�
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After a couple of decades of very slow growth Summerland took off, but the growth was checkerboard fashion. In Perrino’s words developments leapfrogged over vacant lands, stretching infrastructure budgets because roads and sewers need to be built through the vacant lands to reach those developments.
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In short, she says, “Our problem is that the taxes are not sufficient to expand or even maintain all the infrastructure.� She says there are only three solutions: increase taxes, increase the business tax base or increase the residential tax base. The community is working, she asserts, on all three.
Murphy Brothers Group of Companies
The first is in-filling the residential blank spots. Perrino wants future growth to start filling up those vacant spots because that would increase the tax
Discover your future in Summerland, on Hunter’s Hill...a fresh new view of Summerland! Contact Patrick Murphy at 250.486.2529 or armar@telus.net
SUMMERLAND '09 CONTINUED ON PAGE 18
Armar Developments Ltd | Hunter’s Hill Holdings Ltd Our past projects in Summerland include the sold out Jewell Place Lakeview Development with its show homes, and Courtyard Manor supportive living for seniors. Murphy Brothers Group is currently planning this exciting new 165 acre lakeview development at the north gateway to Summerland.
SUMMERLAND '09 CONTINUED FROM PAGE 17
base with relatively little extra development or maintenance costs for the city. Next is to improve the downtown core. Scott Boswell is the economic development officer for Summerland who says, “We’re trying to get an intensification of the downtown core within a 10-minute walk.� One component is the Wharton Square development. This five-building mixed commercial, residential and community space has been temporarily sidelined by the economic slowdown, but everyone believes it is only a short pause. The city is hoping to place its new library, museum and cultural centre there. Even though those buildings will be done “at cost� for the city it provides the developer with built in attractions to help populate the residential and commercial spaces. Perrino hopes the whole complex will add to the diversity of the downtown core, bringing bonuses to existing businesses. &YQFSJFODF 4UBS GVMM TFSWJDF BDDPNNPEBUJPO PO UIF TIPSFT PG -BLF 0LBOBHBO 4QBDJPVT TVJUFT GFBUVSF GVMM LJUDIFOT žSFQMBDFT BOE CBMDPOJFT &OKPZ SFMBYJOH JO PVS #FZPOE 8SBQUVSF 4QB 0VUEPPS 1PPM )PU 5VC 4BVOB BOE &YFSDJTF 'BDJMJUJFT 0O TJUF 483 #PBU 3FOUBMT PGGFST TLJ CPBUT XBWF SVOOFST LBZBLT QFEEMF CPBUT BOE TDPPUFST
It also addresses another problem familiar to all Okanagan communities, which is the issue of affordable housing for younger workers.
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Says Boswell, “We need to develop an identity to attract young people. We need to promote the lifestyle to young people.� The enriched prices of real estate are making it very difficult for younger people to come to Summerland and other Okanagan communities. A large scale condominium project like Wharton Square is part of the answer. Located downtown it minimizes costs to the city and is much cheaper for young people trying to get established, boosts business in the region and promotes transportation !"#$%&%"'()*#"#+,%%( by foot, making it the greenest option available. s Joe Wa
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He adds, â&#x20AC;&#x153;Summerland will donate the land for the facility if Okanagan College decides to proceed.â&#x20AC;?
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More jobs, more students to populate downtown businesses and again, with a relative minimum of costs for town infrastructure. â&#x20AC;&#x153;That would be big coup,â&#x20AC;? says Boswell.
Okanagan Custom Homes Ltd. C-,+3%)'-0'>-&"6'D,,-+0&'E-6+&/-03 Down at the Summerland Chamber of Commerce Project Management Design Consultation Quality Custom Homes Custom Finishing Sustainable Building Techniques Victorian, Contemporary, Tudor and Santa-Fe Log Homes Additions & Renovations
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Joe Wackerbauer, R.S.T.C., I.T.C., Certified General Contractor P.O. Box 101 Summerland, BC V0H 1Z0 Phone. 250-494-9609 Cell. 250-809-9519 Fax. 250-494-9604 www.okanagancustomhomes.com
newly minted general manager Lisa Jaager is also interested in the youth market.
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She says the townâ&#x20AC;&#x2122;s reliance on the retired set needs to be examined. Jaager observes, â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve always catered to seniors and itâ&#x20AC;&#x2122;s time to look at that and get more balance.â&#x20AC;?
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Farmerâ&#x20AC;&#x2122;s markets, for example are taking off,
SUMMERLAND '09 CONTINUED FROM PAGE 18
but Summerlandâ&#x20AC;&#x2122;s runs on a weekday morning, during business hours. Great for retired people but virtually useless to anyone working and not a time when visiting tourists are very likely to be out and about either. While the top notch resorts like Summerland Resort bring in important business functions and events that attract wealthier clients and consumers, Jaager says areas where people go in their youth, are where they tend to keep going when they are older. In other words, she says, â&#x20AC;&#x153;The tourists with little money today will be tomorrowâ&#x20AC;&#x2122;s older, more affluent tourist.â&#x20AC;?
CHAMBER OF COMMERCE GENERAL MANAGER LISA JAAGER
KIA Ad â&#x20AC;˘ Summerland â&#x20AC;˘ Sept 09 â&#x20AC;˘ Size: 4.78â&#x20AC;? (w) x 7.14â&#x20AC;? (h) â&#x20AC;˘ Final File â&#x20AC;˘ Sept 08/09
Summerland has also looked across the way and seen how well the Naramata Bench wineries are doing. Summerlandâ&#x20AC;&#x2122;s wineries are now promoting what they call â&#x20AC;&#x153;Bottleneck Driveâ&#x20AC;?, laying out a course where visitors can easily navigate from one winery to the next. It is a problem that Perrino believes applies to the whole town. Too many go by on the highway, unaware of the five beaches, the restaurants,the unique boutique businesses and the 11 wineries so the town has invested $109,000 in two striking signs. â&#x20AC;&#x153;You will never miss Summerland again,â&#x20AC;? she quips. Boswell is interested in expanding the townâ&#x20AC;&#x2122;s commercial and industrial sector as well. Summerlandâ&#x20AC;&#x2122;s two industrial parks are full and Boswell wants more land, believing more jobs, more taxes and more young people will come with them. He has met some opposition, based on oldfashioned notions. â&#x20AC;&#x153;Most people see the industrial park as still having dirty smokestacks, but there are a lot of clean enterprises.â&#x20AC;? On the commercial front Perrino says there are many opportunities to build in the downtown area. She says, quite happily, that Summerland is not going to become a big box haven because it is too close to Penticton. Instead, she says, â&#x20AC;&#x153;Food, retail, boutique stores â&#x20AC;&#x201C; our downtown core thrives on unique businesses.â&#x20AC;? She appears to be right. Despite the economic downturn plenty of new businesses have set up in Summerland, not all of them in retail or downtown. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve signed up 79 new business licenses since January 2009.â&#x20AC;?
In 2008 over a quarter of a million air travellers flying into Kelowna International Airport said their final destination was Summerland and the South Okanagan. Kelowna International Airport â&#x20AC;&#x201C; YLW â&#x20AC;&#x201C; Serving BCâ&#x20AC;&#x2122;s Southern Interior. The world at your doorstep.
To make downtown even more attractive the town has commissioned a report on how to get a facelift on its â&#x20AC;&#x2DC;old Englishâ&#x20AC;&#x2122; style of decor. The town wants to remain unique, but with a facelift. Perrino seems to think itâ&#x20AC;&#x2122;s a no-brainer. â&#x20AC;&#x153;You can do business anywhere on the planet â&#x20AC;&#x201C; why would you want to be anywhere else? I think this is the next town to be in.â&#x20AC;?
www.ylw.aero
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Business Examiner September 2009
Summerland Snapshot
CommunityLeader
Incorporated: 1906
Erin McHale
Area: 73.9 sq. km
â&#x20AC;&#x153; Itâ&#x20AC;&#x2122;s neat to see the confidence of the individual who Employment
In 2006 out of a total labour force of 5,145 persons, the three biggest employer sectors: health care and social services (595 or 11.6%); retail trade (565 or 11.0%); manufacturing (520 or 10.1%). Statistics
Population 11,110 (2008) Population aged 65+ in 2006: 25.7% (B.C. 14.6%) Population growth rate for 2007-2008: 2.1% (B.C. 1.7%)
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Income
Median household income (2006): $58,888 Average income from those filing tax returns (2006): $34,395 (B.C. $38,523) Main source of income for residents in 2006: Employment (53.6%), Pension (22.2%), Investment (11.3%), Other not counting self-employed (5.8%), Self-employed (5.2%) Business
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Business incorporations: 55 (2008) 40 (2006) Business bankruptcies: no numbers available serving the business community for over 65 years
Total # of firms with no employees: 415 (June 2008) Total # of firms with employees: 424 (June 2008) Chamber of Commerce members: 800+ Labour force breakdown
Total labour force: 5,145 Labour force as % of total population: 46.3% (2006) 1BUSJDL #FMM
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Complete Business Financial Services Commercial Account Packages Commercial Loans & Mortgages Commercial Insurance Equipment Lease Financing Merchant Services
250.494.7181
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| www.businessexaminer.ca September 2009
Percent of labour force self-employed: 21.0% (2006) Building Permits
New residential units built: 94 (2008) 63 (2006) Typical house value: $419,722 (2008) $174,700 (2004) Value of new residential construction: $26.8 million (2008) $19.9 million (2006) Value of other construction: $2.0 million (2008) $15.9 million (2006)
comes through our door grow. Itâ&#x20AC;&#x2122;s amazing.â&#x20AC;? Photo | Devon Brooks
Method
There are great causes in every town. In Summerland Erin McHaleâ&#x20AC;&#x2122;s cause is the one that she describes as her natural calling â&#x20AC;&#x201C; helping youth. McHale, whoâ&#x20AC;&#x2122;s professional background includes coaching hockey teams at the junior level, doesnâ&#x20AC;&#x2122;t want to just give to youth, she wants to help them build. So McHale manages the Penny Lane bargain outlet, an operation covering two separate retail stores in Summerlandâ&#x20AC;&#x2122;s downtown core. One store sells furniture while the second largely stocks clothing items. At any given time the two stores are staffed by approximately 10 to 20 youth, mostly high school aged. There is also the odd young adult who needs, as McHale describes it, â&#x20AC;&#x153;some fine tuning in their life.â&#x20AC;? The stores work on every level. Since opening in 2002 Penny Lane has contributed approximately $1 million to nearly 20 different youth oriented projects from the SADI Youth Centre to bursaries, the Summerland Girl Guides, Dry Grad and a plethora of school projects and programs. In addition to the retail outlets kids in fund raising activities are encouraged to â&#x20AC;&#x153;take overâ&#x20AC;? the clothing store on Saturdays. In return for their hours they can claim 50% of the dayâ&#x20AC;&#x2122;s gross earnings and all proceeds from any sidewalk sale they put on. Goals
Says McHale, â&#x20AC;&#x153;We bring in kids with little or no job skills and set them on a better path.â&#x20AC;? This is a big oversimplification, as if McHale were running a job-skill training program. That might be her ultimate goal, but to make that happen she must run a retail operation, training all staff from the bottom up, co-ordinate stock purchases at low prices, build up the confidence of fragile youth while undertaking all the duties faced by any retailer regarding stock picking, pricing and selling. Assets
An absolute passion for working with youth. Years of experience coaching kids in hockey, two years as a general manager of the Summerland Sting Complete buy-in from the community including reduced prices from Sears for some of the storeâ&#x20AC;&#x2122;s stock, a waiver of property taxes from the municipality, volunteer board members on Penny Laneâ&#x20AC;&#x2122;s business community. ~$1 million in funds donated to numerous youth-related activities since opening in 2002 September 2009 Okanagan Business Examiner
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Slow market leverages opportunities in high-end resort Photos contributed
That itâ&#x20AC;&#x2122;s a buyerâ&#x20AC;&#x2122;s market out there in recreational property is without doubt, even if the properties are running from $1.4 to $2 million. There is also no doubt that the beautiful 20unit Waterfront Resort property on the lake just below Quailâ&#x20AC;&#x2122;s Gate is high end. Just a few of the developmentâ&#x20AC;&#x2122;s amazing features include 2,000 sq. ft. units with four bedrooms, dens and studies fronted by 30 ft. glass-tower entrances. There are full outdoor kitchens, boat docks, geothermal heating, and a salt-water pool. Indoors the facilities are just as luxurious: kitchens sport Quartz solid surface countertops and wine fridges, each of the three full bathrooms has frameless glass showers, soaker tubs and Italian porcelain tile flooring.
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Says Rob Chetner, the developer, â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s a higher end product â&#x20AC;&#x201C; we havenâ&#x20AC;&#x2122;t left anything out.â&#x20AC;? Along with those features the group has negotiated a long term lease behind the property to Quailâ&#x20AC;&#x2122;s
Gate, which will be planting the area in vines for making grapes. This pleases Chetner who says they wanted the unused land to look aesthetically appealing but be left in productive use for farming as much as possible. The Waterfront Resort was built with families or people wanting to have many visitors. Chetner, who has taken one of the units himself, says heâ&#x20AC;&#x2122;s been up almost every weekend this summer and has yet to have an unclaimed room. The development was only completed this past June. Unfortunately, says Chetner, who is a veteran developer of numerous residential buildings and custom homes in the Lower Mainland, â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s plain and simple, itâ&#x20AC;&#x2122;s just bad timing. Thatâ&#x20AC;&#x2122;s bad for us, but great for the buyer.â&#x20AC;? How bad (or good) is it? With only eight units out
of the 20 sold property prices have been reduced by about 20% and the group is bringing in a unique trade-in option. He explains that it works like selling a used car. People who have other recreation properties may be unhappy with what they have, or simply want to upgrade. Chetner says, â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ll make it easy to sell and get in to [our development], but it has to be a fair trade.â&#x20AC;? The trade-in program, launched in early August, attracted two potential buyers within two weeks. While thatâ&#x20AC;&#x2122;s encouraging he says, â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve got a ways to go for selling the rest of these units.â&#x20AC;? Chetner also believes that these units, while too expensive for the average family, are unique, not just because of the luxurious standards and facilities, but because of the small size and community feel. â&#x20AC;&#x153;I donâ&#x20AC;&#x2122;t think youâ&#x20AC;&#x2122;ll see anything like this again in our lifetime.â&#x20AC;?
September 2009 Okanagan Business Examiner
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The Best Employers A Business Examiner survey shows that most employers seem to realize the importance of happy employees.
Why employee negativity turns into no sales Kevin Renwick is the owner of Okanagan Staffing Services. He started the company 14 years ago. At that time he says many employers, when he tried to sell them on the value of his services in getting the right employee for the job, told him that spending money on a staffing company when there were lines of hungry, would-be employees wanting minimum wage jobs was a waste of money. Happily he says, there were a few that saw things differently and much has changed since then, at least partly inspired by the labour shortage that was in effect until this latest recession. He agreed to look over the survey results sent in by readers and interpret them through his experience with a multitude of employers and employees. Questions What are the most important attributes of a good employer (pick your top three): The Most Important Attributes of a Good Employer
management won’t support them and isn’t listening or else employers aren’t doing what they told employees they’d do. A good example is telling a new employee they’ll receive a review and pay raise after a certain amount of time, but it never happens. On just how good offices are to work at in the Okanagan, Renwick says, “I’d just be guessing, but I’d say 60% positive, 40% are negative. I might even increase that to 70% positive, 30% negative.” Do you experience a high turnover in your personnel? If you answered ‘yes’ or ‘about average’ in the last question do you believe:
My business sector always has a high turnover compared to most other businesses. 21.88% It’s because most of my employees are young or seasonal. 34.38% There are aspects of my line of work that cause more stress (and turnover) than most jobs. 21.88% I know there are some problems in my company and I’m trying to deal with them. 6.25% That’s just the way it is; this is a job, not a baby-sitting organization. 15.62% Renwick’s take:
1. Good office atmosphere 19.09% 2. Challenging work 15.67% 3. Flexibility 14.81% 4. Job stability 12.82% 5. Strong, decisive management 12.54% 6. Chance to move up 9.69% 7. Low stress working environment 5.41% 8. Big financial rewards (money) 4.56%
Two-thirds of employers say they do not have high turnover. A quarter said it was about average. Some employers are probably misleading themselves. Of those with average or high turn over only 6% say that internal problems are the reason. He explains, “The number one reason [for employee turnover] is that the employer is not hiring the right person.” This can cause many problems obviously, but he thinks that far too many employers don’t even realize what it costs them. “Once employers get on the treadmill of a lot of turnover they think it’s normal and don’t understand the costs.” He estimates that even for middle management replacement costs can run as high as $15,000.
9. Perquisites and benefits 4.56% 10. Physical office environment 0.85%
Is it easier for a small company (under 20 employees) to be a good employer than
Renwick’s take:
a larger one?
“I agree that a good office environment is the most important thing.” When the work atmosphere goes bad, Renwick believes there are two main culprits: employees have come to believe that
Yes 24.78% No 15.93% Size doesn’t matter 59.29%
Renwick’s take:
Shelley Gilmore
In contrast to what most people answered here, Renwick answers, “I’d tend to lean towards ‘yes’ because there is a closer interaction. Employees like to know what is going on and in smaller companies it is easier to communicate.” On top of that he says it is easier for employers to provide more flexibility and variety for workers. As the company gets larger and larger employees can become numbers rather than people. He does say it doesn’t have to be that way, if the bigger companies make a commitment to reach out and communicate. The big company’s advantage tends to be bigger pay cheques. What are the most important benefits to offer employees in the work environment:
1. Employees have their own defined office or work space 22.79% 2. Modern, efficient environment with the latest and greatest equipment 21.32% 3. Employees work in an open area encouraging interactivity 14.34% 4. A beautiful, physically appealing environment. 10.66% 5. Location close to transit routes 8.09% 6. Recreation facilities (work out space, lounge, showers, Internet access for personal use, etc.) 7.72% 7. Daycare 5.15% 8. Employees have lots of room 4.78% 9. Location close to retail and restaurants 4.04% 10. Excellent in-house food facilities 1.10% Renwick’s take:
On the number two choice, of a modern environment he says it is pretty simple; it makes their jobs easier and faster. “Employees like to learn in new, up-todate environment. It’s a better experience for them.” The number one answer of preferring a closed in office and work space is exactly what he expects. “Most employees, if four walls and a door is available, prefer that environment.” Asked why the third choice was the opposite, with people choosing a big open environment, he says the answer is that kind of space works best with certain jobs where people need to communicate quickly and easily or the work flow requires constant movement. BEST EMPLOYER CONTINUED ON PAGE 31
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| www.businessexaminer.ca August 2009
More and more often I am coming across employees in various places that I go to in my weekly and monthly routines, who are complaining about their bosses, their workplace, their co-workers. Are bosses and managers aware of the negative impact this has on their customers? I was in a drugstore the other day and overheard an employee complaining to two customers about the workplace. “We can’t get anything done around here – they refuse to hire enough staff.” This was followed up with: “I’m outta here, and I guarantee you they aren’t going to replace me, good luck getting any customer service after I’m gone.” Being that I work with companies every day on ensuring they have solid communication practices, build a positive culture, I must admit I was shocked
at how I reacted to this exchange. My first thoughts were to confront this employee and ask if they had brought up their concerns with their supervisor… but of course, I have learned over the years that people don’t really like being called on to the mat. Instead I found myself asking who was the manager and wondering if they were aware of the negativity in their workplace. ‘Do they have any idea that this person is freely and honestly sharing with customers that this isn’t such a great place to be?’ This is not the only example of this that I have personally witnessed – I’ve heard similar stories from clients, friends and others. It’s in small stores, banks, groceries and many other service based environments as well as some professional environments.
Your employees are the most expensive marketing that you have invested in. You can do all you want to have the perfect logo, the perfect mission statement and the most high powered business plan in the world but if you have forgotten to include your employees in the plan, you have missed the boat. Management can’t, and shouldn’t hover over the employees to ensure they are acting in the best interest of the organization. The solution begins with asking yourself some questions: Have you hired the right people – do they fit the culture your organization wants to have? Do they have the right attitude? If you have rushed to hire, been unclear in the process, not asked the hard questions up front, EMPLOYEE NEGATIVITY CONTINUED ON PAGE 29
Conflicting visions for Lake Country Town council refutes development for uncertain reasons
Devon Brooks | Photo by Devon Brooks
Garth Macdonnell: â&#x20AC;&#x153;They have people here willing to spend $1.5 billion and they (council) didnâ&#x20AC;&#x2122;t even get off the couch to talk to them. They were disrespectful and it was embarrassing.â&#x20AC;?
The $1.8 billion St. Andrews golf course development with winery and residential village proposal in Lake Country on the Woodsdale Ranch has ended, after more than half a decade of deliberations. Developer Max Tomaszewski from the Amadon Group in Vancouver withdrew the proposal last month after a loud and angry Lake Country council session. Tomaszewski, citing frustration with a process that seemed to never end, says he will take the proposal to another interested Okanagan community. The project would have seen the 1,148 acre Woodsdale Ranch developed into five main uses: agricultural land including a winery, a golf course which was to be one part of a series of St. Andrews of Scotland branded courses, a residential development, a resort and a nature reserve. The ranch land was to be developed under a 99 year lease. The Macdonnell family would retain ownership over all of it except for the nature reserve, which Garth Macdonnell says would be released to Lake Country. Those for the development claimed it would bring good paying jobs, better taxes with little cost and give Lake Country a world-renowned destination. Several councillors and Randy Rose, head of Lake Countryâ&#x20AC;&#x2122;s public administration, made eight major objections:
firm with the international marketing rights to the fabled St. Andrews golf course in Scotland. Councillor Noreen Guenther, who did not return calls from the Business Examiner, did tell the Lake Country Calendar in August, â&#x20AC;&#x153;The developers didnâ&#x20AC;&#x2122;t even introduce the St. Andrews golf course into the equation until April of this year.â&#x20AC;? The St. Andrews connection is new, the golf course proposal was not. Councillor Guenther also complained â&#x20AC;&#x153;That development has morphed and changed many times.â&#x20AC;? Here too it is hard to say whether that is a fault or a response to Lake Countryâ&#x20AC;&#x2122;s directions. Back in 2005, says Garth, the development project was put together and put forward for councilâ&#x20AC;&#x2122;s consideration under Lake Countryâ&#x20AC;&#x2122;s bundled process. The application was rejected by council as coming through an inappropriate channel. In short, the bundled process, used to expedite development applications, was the wrong way to do it.
council. Rose counters, saying the developer simply isnâ&#x20AC;&#x2122;t cooperating. â&#x20AC;&#x153;We felt that here was a developer who wasnâ&#x20AC;&#x2122;t interested in providing the information that we thought was necessary.â&#x20AC;? Thatâ&#x20AC;&#x2122;s not what Mayor James Baker believes. He admits more information will be needed, but adds, â&#x20AC;&#x153;There were some numbers that werenâ&#x20AC;&#x2122;t there, but would have been produced after the second reading.â&#x20AC;? Baker also says second reading of the proposal wouldnâ&#x20AC;&#x2122;t have given the developers carte blanche approval. â&#x20AC;&#x153;If it went through second reading it would still have to go to public readings.â&#x20AC;? There are some specific objections. One is the water required for the proposed development, yet, at Lake Countryâ&#x20AC;&#x2122;s request a study of water flow rates in the affected area was completed. According to Garth, the Macdonnells were required to use a city-appointed engineering firm, Bel-MK Engineering, so that council could feel confident of unbiased results. In conclusions tabled in 2005 Bel-MK wrote: â&#x20AC;&#x153;As the gravel aquifer in which the 1981-PW1 well is completed has an adequate groundwater supply potential to meet the needs of the existing groundwater users and the irrigation requirements of the proposed developmentâ&#x20AC;Śthe proposed plan should be approved based upon groundwater supply available.â&#x20AC;?
Determined to make sure that this wasnâ&#x20AC;&#x2122;t a lucky accident council insisted on a second drilling with more demanding standards. Garth says the results were the same. Councillor Barbara Leamont insists, â&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s no studies that have been done on the aquifer." Rose says the same thing. The Mayor agrees that the study done so far does not address all the questions and says, â&#x20AC;&#x153;The aquifer studies would be part of the studies that we would ask for. If they wouldnâ&#x20AC;&#x2122;t do the [studies] it wouldnâ&#x20AC;&#x2122;t proceed.â&#x20AC;? Objections on the exclusive nature of the golf club are harder to understand. Several people, including Rose, through his reports to council, complain about the exclusive nature of the project, but thatâ&#x20AC;&#x2122;s only part true. Under the plan only the golf course and its immediate facilities would be restricted. The rest of the resort, the winery, residential neighbourhood and nature reserve would be open to the public. Moreover since the Macdonnell family owns the entire Woodsdale Ranch, not one single acre is accessible to the public at the moment.
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Randall Rose is Lake Countryâ&#x20AC;&#x2122;s Chief Administrative Officer. He agrees, saying, â&#x20AC;&#x153;Projects like this are too big and too complex and in my opinion, I donâ&#x20AC;&#x2122;t think this is an appropriate process.â&#x20AC;?
Roseâ&#x20AC;&#x2122; report recommends that council needs to be wary of costs associated with the proposal, including sewer levels and water hook ups, and road connections. He notes that due to rapid growth in Lake Country sewage capacity has been reached.
Itâ&#x20AC;&#x2122;s our business to understand and help build your business.
Except that according to Garth Macdonnell, Rose was the person who originally suggested the bundled process to bring the development to
â&#x20AC;˘ the opening up of a third area for development (the city already has two)
ST. ANDREWS CONTINUED ON PAGE 33
â&#x20AC;˘ the suitability of the water supply in the development area
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â&#x20AC;˘ extra costs that would accrue to Lake Country
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â&#x20AC;˘ whether the development is green â&#x20AC;˘ inappropriate applications and confusing or incomplete information
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â&#x20AC;˘ public opposition
The first inkling came up in 2001 when the Macdonnell family went to the district with the idea. The next year the Agricultural Land Commission gave approval for a golf course to be developed on a portion of the land, which has gone through many permutations since then. The latest proposal was prepared by a Vancouver
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â&#x20AC;˘ the exclusivity of the development and public access
Going over the records and talk about the proposal reveals a confusing array of claims, arguments and counter arguments. It is almost impossible to understand all the ramifications.
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September 2009 Okanagan Business Examiner
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be found guilty, it would have to be shown that the senior officer departed markedly from the standard of care to be expected in the circumstances.
Legal Talk
Because organizations cannot be imprisoned, the Code provides for fines when they are convicted of a crime. For summary offences (those of lesser severity), the maximum fine is now $100,000. For more serious, indictable, offences there is no limit to the possible fine. There is also the possibility of a sentence of probation for the organization, during which it might be required to take public steps to make up for its criminal conduct. Individuals who commit criminal offences in the employment context can, of course, be sentenced to time in prison.
Companies face charges for unsafe work practices Robert Smithson In 2004, the Criminal Code was changed in relation to criminal liability of corporations as a result of their work practices. The changes were an attempt to modernize the law of corporate crime and were prompted by the 1992 Westray mine disaster in Nova Scotia.
public. The new laws were not, however, intended to capture informal groups formed purely for recreational purposes (such as a pickup hockey group).
The 2004 changes had the objective of expanding both the range of persons whose actions may attract criminal charges and the range of circumstances in which the act will be treated as criminal. As a result, the Code now features an expanded range of entities which may be found criminally liable.
There are three ways in which an organization can commit a crime requiring actual knowledge or intent. This would obviously be the case if a senior officer actually committed the criminal act. The organization would also be guilty if the senior officer had the necessary criminal intent but left the commission of the act to subordinates. Or, a senior officer might have known that subordinates were going to carry out the criminal act but didnâ&#x20AC;&#x2122;t take measures to stop them.
The Code refers to an â&#x20AC;&#x153;organizationâ&#x20AC;?, which may be a public body, corporate body, society, company, firm, partnership, trade union, or other association formed for a common purpose. This is a broad definition which includes all groups having an organizational structure and making themselves known to the
The Code also provides that an organization is responsible for the negligent acts or omissions of its representatives. In general, it must be shown that representatives of the organization committed a criminal act and that reasonable steps should have been taken to prevent it. For the organization to
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Charges were laid against a Quebec paving stone company for criminal negligence following the death of a 23 year old worker who was crushed by heavy machinery. The charges followed a Quebec health and safety commission report which concluded the management of health and safety at the work site was â&#x20AC;&#x153;deficient as far as inspections, safety procedures and training are concernedâ&#x20AC;?. The employer has indicated it will plead not guilty to the charges. If the charges against this employer proceed, they may produce the first criminal conviction of an employer pursuant to the 2004 Criminal Code revisions. In that event, expect a heavy fine to follow. Donâ&#x20AC;&#x2122;t expect, however, that it will put an end to tragic workplace injuries resulting from negligent health and safety practices. Robert Smithson is a partner at Pushor Mitchell LLP in Kelowna practicing exclusively in the area of employment law. For more information, log onto www.pushormitchell.com. If you have a labour or employment question e-mail him at smithson@pushormitchell. com. This subject matter is provided for general informational purposes only and is not intended to be relied upon as legal advice.is provided for general informational purposes only and is not intended to be relied upon as legal advice.
EMPLOYEE NEGATIVITY CONTINUED FROM PAGE 25
or forgotten or omitted the all important â&#x20AC;&#x153;new employee integrationâ&#x20AC;? component of the hire, you may very well have set yourself up for the scenarios outlined above. Whether your company is in construction, finance, retail, manufacturing or professional services, you canâ&#x20AC;&#x2122;t afford to have your employees bad mouthing you out in public. It really is a component of the employer/employee relationship to build that relationship. Now imagine a situation where employees speak highly of the organization. Consider what that can do for helping to recruit the right people and customer service levels, business volume or that all important bottom line impact. A trend that is being commented on regularly is the global recession and its impact on the business climate. Certainly businesses need to adapt and possibly reconsider some of their practices because of that, but there hasnâ&#x20AC;&#x2122;t been a recession yet that didnâ&#x20AC;&#x2122;t
end. You will always have employees. What better time than now to show your employees that you are investing in them, in their future and ultimately in your own future? Get ready for the other side of this business climate. Take some time, review your practices, get a temperature reading on your workplace, reach out to your employees and get a plan put together. Get your managers and supervisors in on the plan and get them working to create that positive culture that invites customers and doesnâ&#x20AC;&#x2122;t turn them away because they were witness to, or worse, dragged into, the negativity of employees that feel left out, over looked, ignored and disgruntled. Shelley Gilmore is a Kelowna-based business consultant. Gilmore HR works with businesses to link the people side of business and the people strategy to the business plan. She can be contacted at (250) 864-1153 or view her services online at www.gilmorehr.com.
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BEST EMPLOYER CONTINUED FROM PAGE 24
Calendar of Events
What are the most important benefits to offer employees outside of good financial rewards (pick up to three):
Business After 5 - Sep 15 Ok College, Vernon Campus
The Vernon Chamber of Commerce’ monthly networking event from 5 to 7 pm. $5 for members, $15 for nonmembers. For information e-mail the Chamber at info@vernonchamber.ca or call 250-545-0771.
Business After Hours - Sep 17 Pushor Mitchell LLP office, Kelowna
The Kelowna Chamber of Commerce monthly networking event from 5 to 7 pm. $7 for members, $12 for nonmembers. More information available online at www.kelownachamber.org/ index.php?fid=Events&sid=Business.
The Life Cycle of your Business Sep 17 - Video Conference
This three hour video conference (9 am to noon) will discuss when to grow or sell a business and issues of succession or dealing with emergencies. Hosted at Small Business BC in Vancouver and delivered by video to various locations around the province. $39 per person plus tax. Go online to www.smallbizeducation.ca/videoconferencing/penticton.php for more information.
like Chief Clarence Louie. Go to www.vision-2020.biz. $149 for full registration. $750. to exhibit and includes 2 delegate passes for the full conference.
VWIB Evening Meet - Sep 23
HST & your Business - Sep 30 Best Western Vernon Lodge
Speakers from the BC Chamber of Commerce and KPMG will talk from 11:30 am to 1 pm on how the HST will affect business. 250-545-0771 for more information.
Best Western Vernon Lodge
The monthly evening meeting of Vernon Women in Business from 5 to 6:30 pm. $14 for members, $16 for non-members. More information by e-mail from meetings@vwib.com or go online to http://vwib.com.
New & Future Member Orientation - Sep 23
Business After Hours - Sep 30 Vibrance Wellness Centre, West Kelowna
The Westbank & District Chamber of Commerce’ monthly networking event from 5:30 to 7 pm. No cost for members, $5 for non-members. For information e-contact the Chamber at 250-768-3378.
People Place, Vernon
A free event for new and future members of the Vernon Chamber of Commerce that runs from 7:30 to 9 am. For more information and to RSVP call 250-545-0771.
Business After Business - Sep 24 Sandman Hotel, Penticton
The Penticton & Wine Country Chamber of Commerce’ monthly networking event from 5 to 7 pm. No cost for members, $20 for nonmembers. For information e-contact the Chamber at 250-492-4103.
Partners in Action Conference Oct 4-7 - Best Western Vernon Lodge
A conference designed to help people find and build on relationships between business, foundations, economic development agencies and various levels of government with speakers Mike Harcourt and Ben Barry. Registration of $489 +GST. For more information call Diane Block at 250-545-2215, ext. 200 or go online to www.partnersinaction.ca/index.php.
Effective Group Leadership Program Oct 5-8 - Naramata Vision 2020 Business Conference & Tradeshow Sep 23 Penticton Trade & Convention Centre
This is the inaugural run of an annual conference designed to help business thrive in the short term while planning for the long term. Talks and workshops will cover branding, IT, social media, management consulting, HR, business finance, business enhancement, information management, doing business with First Nations and selling. The show will be populated with local business experts and well-known figures
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Dealing with CRA - Sep 30 Community Futures, Penticton
A three hour session beginning at 6 pm showing small businesses how to deal with the tax department. Topics will cover tax implications of business organization, capital cost allowance, what’s deductible, adding and disposing assets and avoiding audit problems.” Run by Ed Schneider, an income tax consultant. $26.25 for members, $36.75 non-members. To register call 250-493-2566.
Centre
This two-part program develops the skills and effectiveness of small group leaders. Registration and more information available by calling 250496-5751, ext. 200. Cost: $1,250.
Accessing Capital - Oct 6 Coast Capri Hotel, Kelowna
Scott Speiser from the BDC and Ed Alfke of Signalink will present a seminar from 2 to 4:30 pm on how small business can access capital and angel investment opportunities.
$25 To register contact OSTEC at 250-712-3340.
Business After Business - Oct 8 - Urban Living Furniture, Penticton
The Penticton & Wine Country Chamber of Commerce’ monthly networking event from 5 to 7 pm. No cost for members, $20 for nonmembers. For information e-contact the Chamber at 250-492-4103.
Business Excellence Awards - Oct 21 Delta Grand Resort, Kelowna
The 22nd Annual Business Excellence Awards by the Kelowna Chamber of Commerce. For more information go online to www.kelownachamber.org/ index.php?fid=Events&sid=Special_ Events or call Dicky Dack at 250-4697355.
Seminar Oct 15 - Ok College, Vernon Campus
A one day seminar running from 8 am to 8 pm with four speakers talking on Solving the Employment Training, Motivation and Retention Challenge, Getting 50% more LIFFT from your Marketing, Hiring for the Right Fit and The Small Business Circle Check. $299 +GST. To register go to www. competitiveadvantages.ca.
Business After Hours - Oct 15 Deli-City/Bunches Bistro, Kelowna
The Kelowna Chamber of Commerce monthly networking event from 5 to 7 pm. $7 for members, $12 for nonmembers. More information available online at www.kelownachamber.org/ index.php?fid=Events&sid=Business.
Business After 5 Trade Fair Oct 15 Ok College, Kalamalka Centre
The Vernon Chamber of Commerce’ monthly networking event from 5 to 7 pm. $5 for members, $15 for nonmembers. For information e-mail the Chamber at info@vernonchamber.ca or call 250-545-0771.
employer is it important that:
Middle managers have the power and flexibility to treat employees according to their needs? 34.51% 1. Flexible options for working hours and days 21.14% 2. Methods for them to give feedback to bosses on what is working and what isn’t. 20.82% 3. A comprehensive benefits package 19.87%
- Oct 22 Community Futures,
4. Job variety so that they aren’t doing the same thing all the time. 14.83%
A three hour session beginning at 6 pm on making use of cost-effective advertising including understanding marketing and targeting clients. Run by Crystal Flaman from Inspiring Success Services. To register call 250-493-2566.
5. A person to help them achieve their goals (work and non-work). 8.83%
Business After Business - Oct
10. Opportunities to donate work time to charity 1.58%
22 OSNS Child Development Centre, Penticton
The Penticton & Wine Country Chamber of Commerce’ monthly networking event from 5 to 7 pm. No cost for members, $20 for nonmembers. For information e-contact the Chamber at 250-492-4103.
6. Family support 4.73% 7. Lots of holiday time 3.79% 8. Job share opportunities 2.52% 9. A counselling service to help them with their problems. 1.89%
Renwick’s take:
This question and its answer have a lot of similarity to the first question, in what makes a good employer and Renwick reiterates that it is about communication and flexibility. His only doubt is the placement of third answer and the fourth one on job variety. Job variety and overcoming boredom is very important and obviously more so for the long term employee.
Understanding the New
How strong is the relationship
Canadian Mindset - Nov 17 -
between company profitability
Rotary Centre
and employee satisfaction:
for the Arts, Kelowna
Edward Greenspon, former editor in chief for the Globe & Mail will talk about ‘The New Us: Understanding the New Canadian Mindset beginning at 7 pm. Greenspon will touch on changes small and large brought on by globalization and innovation to work, education and health care. Tickets are free but you must order them in advance by calling 250-717-5304.
There is almost nothing to say here since the employers seem to get it, as shown by their responses. A mere 4% of employers do not seem to understand that unhappy employees don’t work as well, don’t treat customers or other workers well and usually lose interest in doing a good job. There are almost never any winners in a company with unhappy employees. For a company to be a good
Marketing on a Shoestring Penticton
Competitive Advantages
The Most Important Benefits to Employees (outside of salary)
Renwick’s take:
1. If employees aren’t happy the company will almost certainly flounder. 57.89% 2. It’s important, but not the most important factor in a company’s success. 32.46% 3. It’s in the middle somewhere. 6.14% Not that important. 1.75% It’s overrated – many companies succeed even with a number of disgruntled employees. 1.75% Depends almost entirely on how tight the job market is. 0.00%
All employees are treated the same using fair policies from top to bottom? 65.49% Renwick’s take:
This question is probably too vague to get good answers. A fair application of the rules is necessary, but that doesn’t mean that everyone should be treated identically. In areas of promotion and rewarding good behaviour, he says it is essential managers have the right to reward those who do well. In cases of negative situations, where some employees may need special attention or assistance, the answer will depend on the circumstances. All that aside, if employees feel that others are getting preferential treatment, it can lead to the worst of circumstances: a bad work atmosphere, which is the bane of employers as discussed at the beginning of this survey. The Best Local Employers?
The survey ended by asking who was the best employer in the Okanagan and why. Most people chose not to answer those two questions. Of those that did, most named their own company. Only five got more than a single nomination, those being: Gorman Bros. Lumber, Scotiabank, TD Canada Trust and the YMCA-YWCA of the Central Okanagan. The fifth answer, which garnered more responses than any other, was ‘I am not sure but I wish I knew.’ An answer that should have more companies looking again at how they treat their employees. Among the answers to the question of what makes a good employer several themes kept repeating: flexibility, strong but fair leadership, bosses who listen. The single best answer came from this owner/manager:
“I determine the suitability of the prospective employee. I don’t hire people who don’t want to work for my company. I interview, I check references and clearly define my objectives. Then, I don’t pay minimum wage, I am flexible, patient and thorough with training and generous with praise and rewards and staff discounts. One retains good employees by communicating, understanding their particular needs and by not treating them as employees.
Business Profile
The remarkable success of Community Futures Devon Brooks | Photo by Devon Brooks
It is easy to pick on government for failed policies and boondoggles because, frankly, there are so many targets to hit. There are a few occasions though where governments get it right and, in the case of promoting small businesses, few government dollars have been as well spent over the years as those invested under the Community Futures (CF) umbrella. Mary Ellen Heidt is the general manager of Community Futures Okanagan Similkameen, which covers the area from Summerland to the border, Osoyoos to Princeton. Her operation, like all the others, serves to educate new and existing business people and to make loans to those who want to expand already running operations or start new ones. Not only does she not compete with commercial banks, but she states emphatically that they are not allowed to solicit business that they think the commercial banks will fund. Larry Widmer holds the same position as Heidt, but with Community Futures Central Okanagan. He says many of those who approach CF are seen as being bad risks by the private banks, but the reasons for that label vary. Some are deemed to have insufficient experience, but most either have little or no collateral or the resulting company would have too few assets. Software developers often fall into this category because the company’s greatest assets are intellectual and indeed, the company principals. If they fail it’s hard to seize those kinds of assets for sale to recoup lent money. Some of those rejected by the commercial banks are then referred to CF. Heidt observes, “Some come from commercial banks, but the most referrals are word-of-mouth from past clients.” Other differences include the kind of assets that can be used to secure a loan. Personal assets not allowed by commercial banks can be considered by Community Futures. Occasionally a smaller loan might be made to people with great business ideas even if they have a bad credit rating. Widmer says it depends on the individual. Successes that have worked with Community Futures in the Okanagan are not hard to find. They 32
| www.businessexaminer.ca September 2009
range from the Medical Arts Health Research Group, Rfind, Red Giraffe Marketing, Tickleberry’s icecream parlour, and Sun Valley Fresh Foods to Rack Force and originally, the start up for this magazine under its former name of the Business Journal. Community Futures will also fund groups that may not be primarily focused on profit. So CF Central Okanagan is helping the Cardington Café, which along with becoming a money earner, employs the homeless and those suffering from addictions and mental illness. Statistically, the results look good and bad. Both Widmer and Heidt agree that commercial banks have a failure rate on business loans of 1% or less, vastly lower than the 10% that Community Futures experiences.
saying, “It’s an awesome program.” Even so, Heidt’s group, which is celebrating its 25th anniversary this year, turns down more applications than it accepts. Widmer has similar results. He says, on average his group lends out about $100,000 a month, usually to three or four applicants. Most get loans in the $30,000 to $40,000 range. $150,000 is the largest loan CF will make. Lack of planning is what he sees as the entrepreneur’s worst enemy. He says, “We turn down more deals because of insufficient information than because they are a bad business deal.” Bad planning and a lack of good information hampers a lot more than loan applicants though. Many operating businesses need help in many areas and could improve their operations, which is where Community Futures’s other side of business education and development comes in.
HEALTHY INVESTMENT CONTINUED FROM PAGE 11
ST. ANDREWS CONTINUED FROM PAGE 27
enemies. The increasing number of voting seniors will eventually force the issue and the funding, but too late to benefit many of them.
including sewer levels and water hook ups, and road connections. He notes that due to rapid growth in Lake Country sewage capacity has been reached. Expansion here means, he suggests substantial new costs for sewage, but that is true whether future development occurs on Woodsdale or any where else in the District. Rose’ own report projects average growth rates of 2.5% per annum for the next two decades.
There is also a great deal of talk about the pros and cons of allowing “private health care” and a “two tier system” in BC. The argument is a misnomer. We already have a three-tier system and private health care would actually be a fourth level. The first tier is what most people face when they need health care, good emergency care, good walkin clinics and good quality care from family doctors and other health care professionals for people who can schedule an appointment and wait. The second tier is for people who are allowed to jump the waiting lists, including Workers Compensation claimants, RCMP members, and the professional courtesy often extended to other healthcare professionals. The third tier is for people who can afford to go to the U.S., India or other countries for their surgery, diagnoses and treatments. The problem with foreign healthcare is that it’s expensive. Withdrawals from RSPs are a choice some people make, which solves the problem of access to healthcare, but makes retirement more difficult.
Heidt’s group has 25 small business seminars lined up from September to March covering everything from marketing, customer relations, websites, bookkeeping, brand awareness, payroll information and sales.
There are also a few innovative insurance policies available, including “wait list insurance”, which can send you elsewhere for diagnosis and treatment after 45 days on a wait list. There is also comprehensive health care insurance, which can cover second opinions and treatment in Canada or the U.S. (Both programs cease coverage at age 75 and neither covers pre-existing conditions. There are a few other limitations as well.)
She says, “The most heavily attended workshop is the CRA (Canada Revenue Agency on taxation). It is always full. Employment law always gets a lot of interest.”
The current debate is really an extension of the third tier, private healthcare based in B.C. Health care professionals would be paid by users of services rather than the B.C. government.
Ironically, the recession has run over the brim with would-be business people who see self-employment as the best option out of the unemployment trap. Many of these fall under Widmer’s description of “reluctant entrepreneurs”. Last year Widmer’s operation had 73 people apply for funding. They planned for 90 applications in 2009 (a 23% increase), but by August they’d already surpassed that. Now they project 120 applications.
She wishes more businesses would attend sales workshops because, “What they need to learn really, is how to close the deal.”
I’m not going to weigh in on the pros and cons of this contentious debate, but I will ask you a question. It’s a question most of us will ask at some point in our lives. If you or a family member develops a critical condition, will you want immediate access to first class health care in B.C. or another country? And how would you pay for it?
Heidt’s experience is the same. “With the change in the economy in the last year and a half we’ve gotten quite a bit busier.”
Building a better business isn’t just about selling your product, she says. “Sometimes it helps [the employer] see what the worker wants is as important as what the employer does. I think it’s a good change, really. I think you’ll get a better employee even if you have to get two part time employees. That employee will work much harder for the business.”
On the other hand, where business failure rates in Canada run to 80% over the first five years of business Widmer and Heidt say that CF funded businesses almost reverse that number. After three years 70 to 80% are still operating. The biggest reason for that tremendous endurance is proper planning. Says Widmer, “We embrace planning here.” He also describes those who come through the door: “We get two types of entrepreneur: the reluctant entrepreneur and those that are destined for it.”
Reluctant or not, Heidt says of the applicants, “The majority are people already in business.” Heidt has worked her way up through CF OkanaganSimlkameen and she is still very enthusiastic,
Another important learning area, according to Heidt, is understanding employees, especially the youth. “There are changes in worker attitudes. Younger workers have a different attitude. Money isn’t as important – it more about the experience.”
Dominik Dlouhy P. Eng, MBA, CFA is a Chartered Financial Analyst and planner with Partners in Planning Financial Services Ltd. and The Fraser Financial Group LLP. You can reach Dominik at 545-5258 or dominikd@fraserfinancial. com with any questions or issues you would like to see in this column. Opinions expressed in this article are those of the author and not necessarily those of Partners in Planning or The Fraser Financial Group.
Under the proposal the developer would build and maintain water works, including a new reservoir and infrastructure on the project. Cost for maintenance to Lake Country would have been zero; however Rose writes: “By policy, the District does not allow the creation of new private water and sewer utilities.” Perhaps the biggest issue is not about these specifics. Instead it is about the vision of what Lake Country is. Is it a small rural town, dominated by green farms or an entrepreneurial setting with an expensive, world-renowned resort as an anchor tenant? There is little talk about this directly by politicians. Neither the councillors nor Rose have received much comment from voters. Four meetings in the various wards of Lake Country this summer turned up very little opposition except against the exclusive nature of the development. Garth says the public would have more access to these lands than ever before, but Rose writes that this is insufficient. “…we believe the public should have access to a trail network, parkland and have the ability to play golf there.” If the rural character as denoted by agriculture is the key issue, Lake Country councillors are avoiding a very real truth. Land is now so expensive that more and more farmers simply cannot make a living off their land, including the Macdonnells. Garth says their giant ranch is unsustainable. He says, “This is all about bringing water up here to make this farm work.” The water they have now irrigates only on a very small percentage of the land. Ironically, the other main source of income involves a gravel operation, which eats up and destroys farmland every day it operates. Failing a way of getting more water to this high elevation, Garth says continuing the gravel operation is a back up plan, but one he doesn’t like. “We could develop the gravel pit, but our land is worth more than that to Lake Country.” Securing a water supply is a very expensive proposition. Garth sees this development as the best way of doing that and the best way to preserve agriculture through a winery.
He firmly believes the majority of people would back the project if they understand the benefits to Lake Country and says his family would abandon it otherwise. “Like I said, if the public was against this I and my family would walk away from all this.” Councillor Leamont argues, “This was sold [originally] as an agricultural improvement, but if agricultural improvement involves substantial redevelopment, housing components and exclusive resort developments, is that reasonable? Does it mean that every farmer or agricultural operation should expect their farm should be allowed to redevelop to make it viable?” The St. Andrews project is dead. Yet under the new proposed OCP, the Woodsdale Ranch is designated as an area for future development. For Lake Country all the project proposal hurdles of cost and land use transition will remain. For the Macdonnells, if that is finalized, the designation will be bittersweet since the land’s main suitor will be gone, taking the money and opportunity with them. Rose sums up everybody’s problem: “Right now, forget the specifics, the question is whether or not the idea is a good one or not for the community.”
A s k t he Pr o f e s s i o n a l s Michael Dias Owner
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Would you ouldrather you Would you make rather or make her excuses make excuses orThe proper equipment in your bag sales? xcuses or
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With equipment continually changing and evolving, golfer’s have access to try and test new technology and designs every spring. Many golf courses, 109B- 3677 Highway 97 North S Sandler Training Finding Power In Reinforcement (with design) and Sandler Training service5C3 marks of Sandler Systems, Inc. © 2008 Sandler Systems, Inc. All rights reserved. Kelowna, BC,are V1X ensure yourP: success. With over 200 training centers including ours, carry many different brand names 250-765-2047 / F: 866-314-3410 ntinual reinforcementworldwide through ongoing training and individual towww.glennon.sandler.com provide support, youcoaching won’t fail... of product along with demos available to try on the learn but also to ensure your we success. over 200 training centers because won’t With let you. driving range or golf course. I believe that all major you won’t fail…because we won’t let you. manufacturing companies produce an excellent on product and supply a full array of clubs to serve the y 97 North 1X 5C3 majority of golfers who play today. TrainingSM utilizes continual reinforcement through ongoing training and individual coaching JohnSandler Glennon Sandler Training utilizes continual reinforcement sessions not to help you learn but also to ensure your success. With over 200 training centers 109B- 3677 Highway 97 only North Kelowna, BC, V1X 5C3 worldwide to provide support, you fail…becausecoaching we won’t let you. through ongoing training andwon’t individual P: 250-765-2047 / F: 866-314-3410 www.glennon.sandler.com sessions not onlyJohn to Glennon help you learn but also to
rather make excuses or sales?
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angle has been proven very beneficial for optimum distance with the driver. Increasing the loft slightly has been very beneficial to several of our members as they are creating higher ball flight and thus gaining distance off the tee.
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S Sandler Training Finding Power In Reinforcement (with design) and Sandler Training are service marks of Sandler Systems, Inc. © 2008 Sandler Systems, Inc. All rights reserved.
66-314-3410 ndler.com
John ith design) and Sandler Training are service marks of Sandler Systems, Inc. © 2008Glennon Sandler Systems, Inc. All rights reserved. sessions not only to help you learn but also to ensure your success. With over 200 training centers
Sandler TrainingSM utilizes continual reinforcement through ongoing training and individual coaching
109B-3677 Highway 97 North worldwide to provide support, you won’t fail…because we won’t let you. Kelowna, BC V1X 5C3 John Glennon 250-765-2047 F: 866-314-3410 109B- 3677P: Highway 97 North Kelowna, BC,www.glennon.sandler.com V1X 5C3 P: 250-765-2047 / F: 866-314-3410 www.glennon.sandler.com
S Sandler Training Finding Power In Reinforcement (with design) and Sandler Training are service marks of Sandler Systems, Inc. © 2008 Sandler Systems, Inc. All rights reserved.
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The question I would ask: “Is the equipment you are using now right for you?” With the huge popularity and interest in hybrid clubs (combination between an iron and wood) I would highly recommend this club for those struggling with their longer irons (3 or 4 iron). A hybrid has more weight and a larger bottom surface allowing the club to create a higher ball flight. The addition of a sand wedge (56 degrees) and/or a lob wedge (60 degrees) is the most common error I find with higher handicappers. Chipping around the green is very difficult for anyone if your only option is a pitching wedge. Making sure you have at least one club with a higher loft than a pitching wedge is imperative for greater success around the greens. Launch
For further information, please contact: Darlene@signaturenetwork.ca or or visit our website
With all the technological advancements that occur every year, be sure to attend your own club’s ‘Demo Days’ or book a fitting session with your local pro to make sure the equipment you currently own is right for you. John Swanson is a Canadian Professional Golfers’ Association (CPGA) member and the Director of Golf at the Nk’Mip Canyon Desert Golf Course in Oliver.
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