LEADERSHIP ISSUE
New owners, new vision and new hope for Mount washington
4 top
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Aug/Sep 2016
Mayor Lisa Helps Doesn’t hold back Studio robazzo Rethinks modern design
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Aug/sep 2016
Contents
50
Follow us
Food-Truck mania
Douglas talks to the food-truck entrepreneurs drawing crowds to their moveable feasts and discovers that being mobile comes with some unique challenges.
Jeffrey Bosdet/Douglas Magazine
BY cinda Chavich
Features
departments
34 The Need for Speed
6 FROM THE EDITOR
40 New Owners, New Vision
Cyber security targets hackers, five minutes with the new Chamber CEO and Duncan’s big rebrand
Douglas visits the Vancouver Island Motorsport Circuit, Canada’s first motorsport country club. BY Athena Mckenzie
Can the new U.S.-based owners of Mount Washington Resort pull it out of its tailspin of the last two years?
11 IN THE KNOW
BY Andrew Findlay
17 PEOPLE IN BUSINESS
46 The Flow Effect of Leadership
The who, what and where of the business scene
Whether you are a business owner or manager, a strong, positive leadership style — using four top skills — can transform your business. BY ingrid vaughan
4 Douglas
18 TAKE THREE Innovative tools to improve your leadership
20 IN CONVERSATION
Douglas talks to Victoria Mayor Lisa Helps about the city and the challenges BY DAVID LENNAM
24 THE BIG IDEA
Studio Robazzo is laying the foundation for newage architectural design in Victoria BY danielle pope
INTEL
[Business Intelligence]
56 Entrepreneur
Is your business ready to franchise? By Angela Coté
58 Sales and Marketing Learning to love objections BY MIKE WICKS
60 Money
62 LAST PAGE
Time is running out for an important tax-saving tool
BY ANNEKE FEUERMANN
BY Steve bokor and ian david clark
Giving the world a hand
“I enjoy turning challenges into opportunities that make Vancouver Island a better place to live.� Al Ghanam, P.Eng. Civil Engineer, Managing Principal, Victoria Office
Wastewater Treatment and Collection System District of Sooke E & N Rail Trail Capital Regional District New Water Intake & Treatment System City of Campbell River
Design with community in mind stantec.com | (250) 388-9161
Jeffrey Bosdet/Douglas Magazine
From the Editor
Why Hello is the Most Important Word in Customer Service
I’ve had an ongoing love-hate “relationship” with a local boutique whose products I adore but whose customer service is so dismal I can’t bring myself to buy anything there. I’ve visited the boutique many times, but none of its sales associates has ever said so much as hello. Yes, a 2014 Sauder School of Business study showed that aloof, snooty sales reps do boost the elite reputation of high-end brands. (It’s called the Pretty Woman effect after the 1990 movie in which Julia Roberts’ character encounters snooty Beverly Hills sales associates.) But, as the study’s authors point out, unless you’re selling Gucci, this strategy can backfire badly. In the case of my nemesis boutique, I’ve decided to stop torturing myself. I’m taking my credit card and moving on. Yes, I could have complained but I didn’t. As it turns out, I’m not alone. Studies show the vast majority of unhappy customers never complain. They simply leave. And that’s dangerous, because each one of these unhappy customers represents an avalanche of lost opportunities. They might not complain to the business, but they do complain to friends, family and on social media. Rather than risk losing customers, the single smartest thing business owners can do, after attracting customers, is to ensure they are happy, right from the first touch point. But with so much emphasis these days on data-driven sales and academic strategy, a business owner could almost be forgiven for forgetting customer service is about people. For example, here’s part of a Harvard Business Review article on customer service: “Successful companies formulate a strategic intent and execute to that intent for market success; savvy organizations map that strategic intent to a brand intent ... It is therefore important for C-level executives to launch a brand-aligned customer service initiative to make sure it is implemented across customer-facing and backoffice operations.” Say what? If you can get through the jargon, the author is right. Successful companies make sure all employees, from merchandisers to the sales associates, understand how to relate to customers in a way that is consistent with the brand. If the boutique I mentioned followed this advice, the feel-good posters in their store window would be echoed in the behaviour of their sales people. When that doesn’t happen, those feel-good messages seem inauthentic. Costly brand dollars are wasted when sales are lost. Many business owners mistakenly think customer service doesn’t need to be taught, but that’s a bit like saying accounting doesn’t need to be taught. Good customer service doesn’t happen by chance, it takes training, and the best training helps sales associates understand the importance of their roles, the key messages of the brand, and how to preempt tough situations and create positive customer relationships. Finally, business owners shouldn’t hesitate to ask — frequently — what their customers really think — no holds barred. If a business owner is lucky, a customer might even complain. And that’s a good thing because it’s the beginning of a conversation that can change everything for the better. — Kerry Slavens kslavens@pageonepublishing.ca
70 per cent of customers’ buying experiences are based on how they are treated, not on how great your products are, according to a 2014 McKinsey study.
6 Douglas
LOCAL EXPERTISE, GLOBAL CONNECTIONS
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A well maintained 3 bedroom, 2 bathroom house. A lot of possibilities with this home, could even include a suite! Close to parks, schools, shopping and transit.
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Dean Boorman
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CALGARY 403.254.5315
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VENICE
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TORONTO 416.960.9995
Sotheby’s International Realty Canada, Independently Owned and Operated. E.&O.E.: This information is from sources which we deem reliable, but must be verified by prospective Purchasers and may be subject to change or withdrawal.
1.877.530.3933 sothebysrealty.ca
5722 East Sooke Road, Sooke, BC
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Rare beachfront home finished to perfection. This 2014 built property has top notch design, value and flexibility with three self contained suites.
Gorgeous country-style estate on a private gated 5 acre property. Views over Elk Lake to the Olympic mountains. Expansive 5 - 6 bedroom house thoroughly updated & more.
Stunning 10 acre Prospect Lake waterfront with 300 ft. of shoreline. Serene west facing property with light all day long and great depth off dock.
Spectacular retreat in East Sooke, nestled on 5 acres of idyllic oceanside living. Gorgeous 4,260 sq. ft. home with majestic views and southern exposure.
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7711 Richards Trail, Duncan
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Lavish yourself in this 4,696 sq. ft. 5 bedroom / 3 bathroom, Bear Mountain home. Gorgeous finishings and elegant design make it perfect for family living & entertaining.
Awash with country charm this 9.58 acre retreat offers peaceful country living. Renovated kitchen with top of the line appliances & views of the countryside.
Custom built home nestled on a quiet culde-sac atop of Triangle Mountain. South facing private yard, legal two bedroom suite. There is nothing this home doesn’t have.
Revenue opportunity in prime location, full duplex at corner of Cook and Princess streets, across from George Jay Elementary. www.fullduplexoncook.com
Brad Maclaren PREC
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Scott Garman
SYDNEY
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Sotheby’s International Realty Canada, Independently Owned and Operated. E.&O.E.: This information is from sources which we deem reliable, but must be verified by prospective Purchasers and may be subject to change or withdrawal.
www.douglasmagazine.com Volume 10 Number 5 Publishers Lise Gyorkos, Georgina Camilleri
Editor-in-chief Kerry Slavens
Creative & Technical Manager Jeffrey Bosdet
Production Manager Jennifer Kühtz
Editorial Designer Jo-Ann Loro
Associate Editor Athena McKenzie
Editorial Assistant Anneke Feuermann
contributing Designer Janice Hildybrant
Contributing Writers Steve Bokor, Cinda Chavich, Ian David Clark, Angela Coté, Andrew Findlay, David Lennam, Shannon Moneo, Danielle Pope, Ingrid Vaughan, Mike Wicks
Run Your Business
from Here
PROOFREADER Vivian Sinclair
Contributing Photographers Jeffrey Bosdet, Derek Ford, Jo-Ann Loro
Contributing Agencies Thinkstock pp. 40, 41, 58, 60
Advertising Representatives Vicki Clark, Lory Couroux, Cynthia Hanischuk
Belmar.ca
general inquiries info@douglasmagazine.com
SEND PRESS RELEASES TO editor@douglasmagazine.com
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To subscribe to Douglas subscriptions@ douglasmagazine.com
Advertising Inquiries sales@douglasmagazine.com Online www.douglasmagazine.com Facebook DouglasMagazineVictoria Twitter twitter.com/Douglasmagazine Cover Brent Evans, operations manager at the Vancouver Island Motorsport Circuit, getting ready to drive a 2017 Porsche Carrera S. Photo by Jeffrey Bosdet. Published by Page one Publishing 580 Ardersier Road, Victoria, BC V8Z 1C7 T 250-595-7243 E info@pageonepublishing.ca www.pageonepublishing.ca
Printed in Canada, by Transcontinental Printing Ideas and opinions expressed within this publication do not necessarily reflect the views of Page One Publishing Inc. or its affiliates; no official endorsement should be inferred. The publisher does not assume any responsibility for the contents of any advertisement and any and all representations or warranties made in such advertising are those of the advertiser and not the publisher. No part of this magazine may be reproduced, in all or part, in any form — printed or electronic — without the express written permission of the publisher. The publisher cannot be held responsible for unsolicited manuscripts and photographs. Canadian Publications Mail Product Sales Agreement #41295544 Undeliverable mail should be directed to Page One Publishing Inc. 580 Ardersier Road, Victoria, BC V8Z 1C7
Douglas magazine is a registered trademark of Page One Publishing Inc.
Advertise in Douglas! Douglas is a premium magazine dedicated to innovation, leadership and business lifestyle. Established in 2006, Douglas is the first choice for business leaders and achievers. Align your business with Douglas. For more information or to request an advertising rate card, please call us at 250.595.7243 or email us at sales@douglasmagazine.com.
10 Douglas
Innovation | Design | Business
Style | People
[In the Know ]
Bin 4 Owner Makes the big time
“I was actually shocked when I found out. I’m honoured to be on a list filled with such talented businesswomen from all over Canada.”
Jeffrey bosdet/Douglas Magazine
Sarah blackmore, co-owner, bin 4 burger lounge
Some of North America’s leading entrepreneurs started out by reinterpreting a simple concept: the burger. That’s exactly what Sarah Blackmore and her partners did when they launched Bin 4, a burger lounge that caters to a foodie clientele. Blackmore recently received some big kudos for her success. The Victoria entrepreneur placed 17th on the prestigious 2016 PROFIT/Chatelaine W100 list of Canada’s top female entrepreneurs, along with Mandy Farmer, president and CEO of Accent Inns and Hotel Zed, who placed 25th. This is Blackmore’s first year on the list and Farmer’s sixth. The top 100 are selected through a composite score of company growth rate, size and profitability. So what’s Blackmore’s secret recipe for success? Team work and consistency, says Blackmore, who, along with co-owners Dan Blackmore and Chef Michael Ringland, opened the third location of Bin 4 last year at Accent Inn on Blanshard, following the success of their Yates and Westshore locations. “We created systems that we would use at all three locations, making sure our managers and staff are always staying on top of things,” says Blackmore. “We found that using consistent procedures and policies was a way we could grow into a larger company.” And grow they have, with a new restaurant — Lot 1 Pasta Bar — set to open in Saanich this summer. “While still focusing on Bin 4, we wanted to try something new,” says Blackmore. “But it’s really important to us that we keep it in Victoria.”
Douglas 11
Small. In a Big Way. Duncan Dares with Rebrand
The town of Duncan is letting the rest of us in on a little secret — there’s way more to the town than what you can see from that strip along the highway. And that’s the key message of the town’s rebranding campaign, launched on July 12 . “Unless you’ve turned left or right off the highway and taken the time to see great stores, quaint streets and wonderful people, you’ve never been to Duncan,” says Dan Dagg, president of Hot House Marketing. Dagg’s company led the rebranding efforts for the Duncan Downtown Business Improvement Area (DDBIA) in collaboration with the City of Duncan. The initiative initially began as a tourism rebranding plan, but during discovery work the parties involved recognized that Duncan had an image problem, and that led to the rebrand. According to Dagg, the biggest weakness to overcome was just getting people to turn off the highway to visit the town. With the tagline “Small. In a Big Way,” the rebrand aims to do just that. It features city banners, merchant decals, brochures, plus billboards and signs along the highway that playfully encourage drivers to take a detour to see what Duncan has to offer. “We have a bit of a history to overcome so I think having something fresh and new, and something we can talk about, is very positive,” says Judy Stafford, president of the DDBIA. She says local merchants are excited about the possibilities for the tagline and brand. “We know if we can get people to take a peek at what Duncan is,” adds Dagg, “they’ll stop, and they’ll shop, and they’ll stay.” 12 Douglas
President Larry Cole (standing), and executive vice-president Ian Paterson of cyber-security startup Plurilock, whose gatekeeper software can identify individuals through biometrics, such as the way the user interacts with a keyboard and mouse.
Victoria Cyber Security Startup Plurilock Attracting Global Attention With data breaches costing businesses millions per incident — not to mention potential risks to governments, public works and health agencies — cyber security has become a major industry in itself, with an estimated global spend of $101 billion by 2018.
V
ictoria startup Plurilock, whose cyber-security software digitally profiles individuals using biometrics, has attracted attention from financial institutions and governments around the world. The company recently appointed John McConnell, former United States director of national intelligence, to its board of directors. “Plurilock’s digital profiling technologies are clearly among the most powerful cyber tools in the world today,” says McConnell. The software’s capabilities allow profiling through physical and behavioural use of smartphones, tablets, laptops and desktops. It identifies the person behind the screen by generating biometric profiles of individuals by their taps and swipes on touch screens, their scrolls and movement of the mouse and the rhythm and cadence of their keystrokes on the keyboard. According to Plurilock’s executive vice-president Ian Paterson the idea behind the technology has been around since World War II, when Morse code operators could identify the operator based on particular habits or patterns. “While the idea is not new, the implementation is exceptionally difficult,” Paterson says. “Plurilock grew out of years of
research, 120 research publications and three patents.” The company was founded in 2008 by University of Victoria professors Dr. Issa Traore and Dr. Ahmed Awad. Informationtechnology-industry veterans Barry Carlson and Larry Cole joined the company over the last year to develop commercial markets for the technology. It currently has two sets of capabilities: static authentication and continuous authentication. With static, the software knows what the user is going to type in, such as a login and password, and can match the behavioural input with the user’s profile. Plurilock’s largest application at the moment is for one of the world’s top-two credit-card firms where they’re evaluating between 40,000 and 60,000 static authentications per second. While with static authentication Plurilock is monitoring for “outsiders” trying to break in, with continuous authentication the technology is constantly evaluating “insiders” to make sure the person logged in is actually the authorized user. Classic applications include financial or health institutions, which could have 10,000 employees with access to very sensitive data. The risks could be
Silk Road
Expands to Vancouver Local entrepreneur Daniela Cubelic has opened the third location of her successful organic tea company Silk Road Tea. The 2,000 square-foot shop in Vancouver’s Kitsilano neighbourhood features a tea-tasting bar, education centre and workshop studio. Cubelic says there are no other expansion plans at this time. “We’re an artisanal producer and do need to be very careful about managing growth,” she says. “That said, the number one question asked of my staff, once we announced the Vancouver store was, ‘What about Calgary?’”
2016 Cost-of-Data-Breach Benchmark research on the global trends and costs of data breaches
25% 54%
Jeffrey bosdet/douglas magazine
Study: Canada
SOPHIA BRIGGS & NANCY STRATTON strattonandbriggs.com
21% $1,490,000 150 Trueworthy Road, Saturna Island
■ Malicious or criminal attack ■ System glitch ■ Human error Per capita cost of a data breach/ cost per lost or stolen record
$304 $250
RECENTLY SOLD 248 Wildwood, Victoria
Sophia Briggs 250.418.5569 Nancy Stratton 250.857.5482
$246 average total cost of data breach
$6.03 million
Sponsored by IBM. Independently conducted by Ponemon Institute LLC; June 2016
costly or catastrophic if the wrong person had access — even the wrong person within the same organization. “I see this technology serving a role in fraud prevention both in the consumer marketplace and for governments and corporations,” says Larry Cole. “We can stop a lot of malicious users and that’s an important part of our value proposition right now. We have 65 companies in our technology evaluation process, eight in full proof of concept, and there’s more coming all the time.”
$1,248,000 1830 Thrush, Shawnigan Lake
We take great pride in using our expertise, resources, and global connections to perfectly unite extraordinary places with the extraordinary buyers who will cherish them as we do.
strattonandbriggs.com
LOCAL EXPERTISE, GLOBAL CONNECTIONS Sotheby’s International Realty Canada, Independently Owned and Operated. E.&O.E.: This information is from sources which we deem reliable, but must be verified by prospective Purchasers and may be subject to change or withdrawal. Not intended to solicit properties already under agreement.
Douglas 13
VIH Execujet, a member of the VIH Aviation Group, has taken delivery of a luxury Cessna Caravan Amphibian. The Caravan Amphibian serves Pacific Northwest customers from VIH bases in Victoria and Vancouver. It has the ability to pick up passengers at a major airport and transport them to B.C. water-landing locations such as fishing lodges. Capital Iron has hired Bruce Alexander as sales manager of the store’s garden, patio and outdoor living section on the lower level at 1900 Store St. Alexander, who coowned Design Source Warehouse, will bring his fencing, gazebo and trellis business into Capital Iron. Coastal Offices recently opened on Wale Road in the Westshore. Owner Len Wansbrough says Coastal offers 24/7 access to state-of-the-art private offices, co-working spaces and fully equipped boardrooms. Rebekah Hutchison and Stephen Ison have launched Liquid Capital West Coast Financing, a Canadianbased, full-service working capital and trade finance network, in Victoria. An alternative funding firm, Liquid Capital offers a range of short-term financing solutions, including working capital advances, factoring and purchaseorder financing. Stocksy United, an artist-owned cooperative founded in Victoria in 2012 to offer a unique imagery collection that also paid artists fairly, announced recently that it doubled revenue in 2015 to US$7.9 million, paid out more than $4.3 million in royalties to artists and paid its first dividends of $200,000 to member artists who sold imagery in 2015. Stocksy was a Douglas magazine 2015 10 to Watch Award winner. COMMUNITY MARINE CONCEPTS (CMC) has completed the geotechnical fieldwork for its 1,000 foot-long floating breakwater, part of the Victoria International Marina (VIM) planned for Victoria’s Inner Harbour. The company has also hired a marina operations manager, David Bird, who previously operated two marinas on Vancouver’s False Creek. Bird has recently been awarded the globally recognized Certified Marina Manager accreditation. BC LOTTERY CORP. (BCLC) has chosen the City of Victoria as the preferred host local government for a gaming facility proposal in Greater Victoria. BCLC says it will develop a facility to suit the market in the City of Victoria, with the View Royal Casino remaining the primary facility in the region. The decision on the size and scope of the new facility will be based on proposed redevelopment plans for the View Royal Casino.
14 Douglas
5 MINUTES WITH
Catherine Holt Meet the New CEO of the Victoria Chamber
A
fter running her own management consulting business for 17 years, during which time she delved into some of the province’s hottest issues at a long list of government entities, including Metro Vancouver’s beleaguered TransLink system, Catherine Holt has taken the CEO reins of Greater Victoria’s largest business organization. On the home page of Holt’s firm Sage Group Management Consultants, she wrote: “As my parting gift, I’d like to share a quote from Albert Einstein that has been my constant guide as a consultant, but that applies to any aspect of life: No problem can be solved from the same level of consciousness that created it.” Douglas talked to Holt, a relatively new face on the Chamber scene, about her plans. What kind of leadership style will you bring to the Chamber? I talked to the [Chamber] hiring community extensively. We had a great meeting of minds and they were very interested in, shall I say, the emerging collaborative style in the region — so from my perspective that is my style. Over the 17 years I’ve been a management consultant, the way you get business done ... is by working collaboratively with your clients and their staff in order for them to understand what you are proposing and help you figure out a viable way to deliver change, and to work together to get the change to happen ... [My new role at the Chamber] is taking it to a new level, working with the other organizations that are key to business and economic development in the region. You mentioned you’ve been meeting with leaders of community organizations, including the South Island Prosperity Project and Tourism Victoria. Everyone has their perspective and their own part, but we all share the objective of making Victoria a great place to live and work and do business. Are you sensing a new energy when it comes to Victoria? Oh yeah, everyone’s talking about it. First of all, the year is good. You know, when tourism does well, we’re all
Victoria and Esquimalt Chambers Talk Merger The Victoria Chamber and the Esquimalt Chamber are in talks to merge into one entity by the end of this year. Last year the two Chambers created a joint task force to look at the benefits and feasibility of common governance. The task force found that integration would provide increased benefits to members of both organizations while reducing administrative overhead. The next steps will be for the two Chambers to consult their respective memberships, a process envisioned to conclude by December 2016.
Jeffrey bosdet/douglas magazine
Business in Action
doing well. Over the last number of years, there’s been a very lively conversation happening in the organizations I mentioned and in the business community at large about how Victoria is rocking it. We have a burgeoning tech sector, growing tourism, lots of hipster-type businesses, craft breweries and very cool restaurants. The whole tone of the town is changing. So what do you see as key issues affecting Chamber members? The main thing I’m focused on is getting to know the answer to that ... I’m going to be listening and trying to answer that question, the main message being that the Chamber has to work for its members. How have your first days at the Chamber been? Any surprises? The Chamber has been an extremely pleasant surprise to me. It’s not like I was involved in it over a long period of time ... so I’m very, very impressed with the level of energy, engagement, support and participation by the members. One of the things that has been an eye-opener for me — and I don’t think it’s talked about enough — is the amount of support members provide to members. Yes, it’s the Chamber helping its members, but one way to think about it is that the Chamber is its members.
“Combining resources will allow both Chambers to take a more integrated approach to advocacy and serving our members.” Al Hasham, chair of the Greater Victoria Chamber of Commerce
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Douglas 15
New Funding Model to Empower Tourism Victoria’s Mandate
“This framework, which was agreed on in principle today, sets the foundation for the next generation of growth for tourism in Victoria,” says Dave Cowen, Tourism Victoria’s board chair. “The framework was last agreed upon almost 30 years ago in 1988. It’s time for renewal and modernization ...” To proceed, the agreement requires approval from the Province, and the City has filed a formal application for Tourism Victoria be granted eligible entity status under the Municipal and Regional District Tax (MRDT) program, which assists designated recipients to fund tourism marketing, programs and projects. If approved:
A landmark agreement announced between Tourism Victoria and the City of Victoria on July 7 will see the destination marketing organization taking the lead on Victoria Conference Centre marketing and sales, boosting regional competitiveness via an increased hotel sales tax and contributing to the development David Foster Harbour Pathway through a $1 million donation.
■ Tourism Victoria’s funding model will move from to a five-year renewal cycle from an annual renewal.
MELISSA KURTZ & KATHERINE GRAY
We Sell Homes Just Like Yours
WHY: To align Tourism Victoria with every Destination Marketing Organization (DMO) created after 1997 and allow for better planning and improve Tourism Victoria’s ability to build business. ■ Tourism Victoria will take on the leadership of sales and marketing for the Victoria Conference Centre. WHY: To strengthen the Victoria Conference Optimization Network partnership, help reduce duplication of effort and costs and improve the consistency of branding and the ability to implement innovative marketing.
“The David Foster Way expansion is a great enhancement to the vitality of downtown Victoria. We are confident that these improvements along Belleville Street, in combination with other aspects of Phase 2 of the Belleville Terminal redevelopment project, will improve the experience for visitors and locals alike.” Ryan Burles, president and COO, Black Ball Ferry Line
■ Victoria’s tourism sector, through Tourism Victoria, will contribute $1 million over 11-years towards construction of the David Foster Harbour Pathway. WHY: This pathway is an important element of moving forward with plans for the Belleville Street Terminal. ■ Victoria’s accommodation industry has voluntarily agreed to raise the MRDT from two per cent to three per cent. Tourism Victoria will ask the Province to approve the increase. WHY: The increased tax revenue will boost Tourism Victoria marketing dollars, allowing the organization to keep pace with other B.C. communities and to boost Victoria’s competitiveness in increasingly international aggressive market.
MELISSA KURTZ 250.508.5325 welcomehomevictoria.com
KATHERINE GRAY 250.516.4563 homesweetgray.com LOCAL EXPERTISE, GLOBAL CONNECTIONS. E.&O.E.: If your property is listed with a real estate broker, please disregard. It is not our intention to solicit the offerings of other real estate brokers. We are happy to work with them and cooperate fully. Sotheby’s International Realty Canada is Independently Owned And Operated.*Seaside, used with permission
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Tourism Victoria hopes to have provincial approval in time for the agreement to take effect January 1, 2017.
10%
the increase in New vehicle sales in B.C. in first four months of 2016 from record-high levels of 2015. Provincial outlook — June 2016, RBC Economics
Innovation | Design | Business | Style | People
on the move Veronica Carroll is the new CEO of the Children’s Health Foundation, effective September 2016. With an MBA in management consulting and almost two decades as a Certified Fundraising Executive (CFRE), Carroll served most recently as executive director of the Delta Hospital Foundation and CEO of the Royal Inland Hospital Foundation. She has over 27 years of experience raising funds for health-related charities, environmental causes and social-service agencies.
Hired
Annette Quan has joined the VandeRuyt Wealth Management Group at National Bank Financial in Sidney, bringing her wealth of knowledge in responsible investing to assist clients to marry their social concerns with their financial needs. Carol Unwin has been awarded Transport Canada’s National Employee of the Year award. Unwin is senior port operations manager for the Pacific Region. Unwin, who has been with the department for 17 years, received the award for her service and understanding of Transport Canada’s vital role in the safe operations of Victoria’s harbour. V2V Vacations, operator of a harbour-to-harbour passenger service between Vancouver and Victoria, set to launch in spring 2017, welcomes its first five staff members to Victoria. The team includes VP of Operations Nick Cheong, who joined parent company Riverside Marine in Brisbane in 2013. He has been lead manager for V2V since the decision was made to begin the Vancouver-to-Victoria service. V2V Vacations says it looks to hire up to 50 Victoria and Vancouver residents in the coming months.
“The BC Chamber is at an exciting crossroads and ready for its next evolution ...” Those are the words of Val Litwin, who has been hired as the new president and CEO of the BC Chamber of Commerce, taking over the role held for 18 years by John Winter. Litwin, a Victoria native, is known locally as a member of the Kindness Crew, four UVic students who travelled across Canada by motorhome in 2002, performing over 100 random acts of kindness and spreading their positive message through motivational speeches to students and companies. In 2007, Litwin co-launched Canada’s first blow-dry bar, Blo, in Yaletown. The business now has more than 50 global The new board of locations. In 2011, he became VP of directors and officers franchise operations for Nurse Next for the Sidney Business Door, driving its expansion into the U.S. Improvement Area For the past three years, Litwin was CEO Society includes: of the Whistler Chamber of Commerce. Susan Simosko His new role at the BC Chamber, which Susan Simosko Associates represents 125 chambers in the province (president and chair) and 36,000 businesses, begins on David Graham September 7. d. graham Architecture
On the Board
(vice-president)
Awards and Recognition
Bob Whyte Dairy Queen Brad Edgett Mary Winspear Centre
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Local fitness franchise owner Jessica Cruise of Vibes Fitness has received Camosun’s 2016 Promising Alumni Award.
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Douglas 17
Percentage of millennials who, given a choice, say they would like to leave their current employers in the next two years.
44%
The reason, according to Deloitte, is a perceived lack of leadershipskill development and feelings of being overlooked, plus larger issues around work/life balance, the desire for flexibility and a conflict of values. Source: Word file
Take three
How to Reach New Levels of Leadership “Leaders become great not because of their power, but because of their ability to empower others,” wrote leadership expert John Maxwell. And as anyone in leadership knows, there’s always more to learn. Fortunately, there are many innovative tools to help you be your best.
Leading Out Loud Steelcase eno interactive whiteboard and izi collaborative chair, Graphic Office, pricing upon request
IDEAS THAT STICK Think sticky notes are stuck in the analog era? The Post-it® Plus app cleverly turns stickies into digital data. Use your mobile to take a photo of the sticky-note collage on your white board. Then create your digital Post-it Board and tap or drag notes to reorganize and refine the arrangement. When done, share your board via text, email, social media or apps like Evernote. You can even export to PDF and PowerPoint. post-it.com
Leaders who look at employees from behind massive oak desks are passé. Today’s best leaders use open, collaborative spaces and take advantage of impromptu brainstorming opportunities.
Top 3 Leadership Reads Superbosses by Sydney Finkelstein; Originals by Adam Grant; Everybody Matters by Bob Chapman and Raj Sisodia
Whereas effective business leaders were once thought to be hammers (with employees as the nails), today’s best leaders are more like magnets with compelling visions and a focus on inclusivity, creativity and flow.
Business Lingo
GLOCAL: When a brand is able to achieve global reach while customizing itself for the local market or culture. One example is Airbnb, which connects people to unique travel experiences in more than 34,000 cities and 191 countries.
Tools to Lead The best leaders are continuous learners, keen to find tools to enhance their knowledge.
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THE RIGHT QUESTIONS Improve employee engagement and performance with the 15Five app, a fast, automated weekly process where employees answer a few questions about their wins and challenges from the previous week. Managers can answer, follow up and address triumphs, challenges and ideas. 15five.com
SLACK OFF? The best leaders are great communicators, and it may have an odd name, but Slack, a real-time communication platform, revs up and simplifies communication amongst teams, from employee groups to board members. Just set up a channel and start chatting and file sharing. slack.com
— Richard Eaton
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Jeffrey bosdet/douglas magazine
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Mountaineering is a risky, exhausting and, paradoxically, thoroughly fulfilling and joyful endeavour. Like leadership, mountaineering calls for a rich blend of self-awareness, authenticity and humility.
The Climb to Leadership Richard Eaton of Berlineaton Management Consultants, has summited some of the world’s tallest peaks, most recently Pico de Orizaba (18,491 feet), Mexico’s highest mountain. This year he plans to climb 20,000 feet to celebrate the 20,000 clients Belineaton has worked with over two decades.
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LEARN TO LEAD Leadership Victoria is the go-to organization for community leadership development in Victoria. Get involved through the Community Leadership Learning Experience, through symposiums or workshops, or as a mentor, volunteer or partner. leadershipvictoria.ca
LEADERS BY PODCAST Hosted by Ken Coleman, this highly rated podcast features lively discussions and tips on leadership and business by some of the top minds in the business, such as Mark Cuban, Seth Godin, Jim Collins and Simon Sinek. entreleadership.com/#podcast
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In conversation with MAYOR lisa helps ■ BY David Lennam ■ photos by jeffrey bosdet
Outspoken and optimistic, Victoria Mayor Lisa Helps is full of ideas to move B.C.’s capital city out OF what she says is a “colonial outpost” mentality into an innovative era of prosperity, bike lanes, housing for all and, yes, cool crosswalks. Applaud her or criticize her, but no one should underestimate her.
T
here’s a famous old expression that says, “May you live in interesting times.” That’s certainly been the case for anyone following the news in Victoria over the past year and a half. We’ve had Tent City, the troubles of our police chief and the ensuing police-board fiasco, the sewage-treatment boondoggle, bike-lane bickering and, of course, the bridge. Staring these issues down and taking the heat since she took office in late 2014 has been Victoria Mayor Lisa Helps, who can’t help but laugh with trepidation at the enormity of the obstacles she’s having to leap like high hurdles. Helps knew her mettle would be tested as she dared to change the culture at City Hall, engage the citizenry with a tactic of less polarization and more dialogue, make allies out of the 12 neighbouring municipalities, kickstart economic development and form a new give-and-take bond with senior government, with an emphasis on thawing the frosty relationship Victoria has had with the province. To hear it from her, “They are the government and we are the capital city. It is our joint responsibility to get things done together to make a better capital city. We’re the capital city. That ain’t nothing.” Well, no one every accused her of holding back. Over a third of the way through her tenure, Helps knows there’s a lot to harp on, a lot to defend and a lot to explain, but she remains surprisingly positive, almost feisty, against mounting criticism. “We have this perverse propensity in Victoria to amplify the negative,” she says. “In a ratio of positive to negative, there’s way more positive going on than negative. It’s just that the negative gets amplified.” So, in true Victoria fashion, let’s begin with the negative. 20 Douglas
Tent City. These two words seem to have damned you in the eyes of many Victorians. What’s your stance on the influx of homeless into our city? Surely that’s not just a provincial problem?
Like [B.C.’s Housing minister] Rich Coleman says, it’s a free country. People can move. I think what we need — and what the [federal] Liberal government has said they’re going to do — is a national housing strategy with investments in affordable housing across the country, so that wherever people are they’ll have the housing they need. How did we get to this point? And how does Victoria move forward?
The real problem is that in 1989 the federal government invested $114 per Canadian in affordable housing. By 2014, the federal government was investing $58 per person in affordable housing. At the same time the population grew by 30 per cent. That’s a whole generation missed in terms of adequate provision of housing by the federal government — on every street in every major city in Canada. And we are a major city. We like to think of ourselves as this tiny little colonial outpost, but Victoria and the region, we’re a major city. You see homelessness and mental-health and addiction [issues] in every city. I think what will also help is the significant investment that the region and the Province have committed to making. We’ve lined up $60 million so far and now we’re waiting for the feds to put in their $30 million — and we’ll have $90 million for new housing over the next five years. … That will make a dent. The City of Victoria has had very little power over Tent City. It’s on provincial land. It’s a provincial problem. [ED NOTE: As of press time, a B.C.
Court judge had ruled the site as unsafe and must be shut down by August 8.] It’s hard to recall when the City last enjoyed a healthy, co-operative relationship with the provincial government. Isn’t it crucial for us to be on the same page?
When’s the last time the Province was saying, “Here’s $30 million, Victoria”? I don’t want to pretend I have a lot of sway with the Province — that would be overstating it — but I certainly have had the minister’s ear with regard to Tent City. We’re working collaboratively to end it, not just by displacing people but by actually buying more buildings. One of the things — and I think it was even in my platform — is to develop a better relationship than Victoria has had in a long time with this provincial government, and that’s happened. That’s made a difference on sewage, Tent City and with regard to tourism and economic development. Is that new relationship being put to the test with the new Belleville ferry terminal?
Minister Fassbender and Minister Stone are very supportive of the Belleville Terminal. We’re all working collaboratively to get rid of those ATCO trailers that have been there for a generation — and actually have a world-class terminal. I understand the terminal is a three-phase project, and that the first phase, a repair of the docks at the Black Ball Terminal, is almost complete. What’s next?
Phase 2 [includes] public-realm improvements along Belleville Street, and that’s a really unique partnership between the City of Victoria and Tourism Victoria. We’re both kicking in a million bucks to do that. Phase 3 is to get $24 million for ... a combined terminal for the Coho, the Clipper and a pre-clearance facility so people can clear customs on this side [instead of once they are in the U.S.] … It’s in the plan for 2018, but as soon as the federal government comes through with the $24 million, the shovel is ready to go in the ground. And this would be a real gift for the federal government’s infrastructure spending. We’ve got a shovel-ready project. Everyone’s behind it, too, which is rare in this region. I’ve got letters from almost all the mayors supporting the redevelopment of the Belleville Terminal.
Some businesspeople and residents are calling for your head. What do you say to them?
Get a life. Find something productive to do … of course, people aren’t going to walk up to me on the street and say, “You suck. You should resign,” but you wouldn’t believe that from 10-yearolds to 80-year-olds, the most feedback I get is, “You’re doing a great job. This is a really hard job; you’ve got some challenging files.” People calling for my head? Whatever. I don’t care. I really don’t care. If people actually want to call for my head, then every two weeks without fail in my office, there’s a community drop-in. People can actually get off their computers, walk in and have a conversation. If you want to call for my head, do it to my face, not online.
“People need to understand when they come at any topic in an anger-filled way — whether it’s crosswalks or their local-area planning or sewage — it actually turns their fellow citizens off from engaging to make their neighbourhood or their city better. If we could show up openhearted, with a tinge of generosity and curiosity, I think we’d all have better conversations ...”
When we spoke for a Douglas article just after you were elected, you agreed with then-Chief of Police Frank Elsner that the mental-health issue is a huge priority in this town. Is anything happening with that?
You can’t solve the problem in a year. We’ve got all those folks at the table. The Coalition to End Homelessness had wandered a little bit from its mission of ending homelessness, so when I was elected mayor I also became cochair of the coalition. We’ve done a governance review; we’ve focused our efforts on action. It was the coalition research that was the spark for the $30 million and then the $60 million [for housing]. But the most concrete action we’ve taken is that we’ve formed a Priority One Task Force to deal with the work for the most chronically homeless, mentally ill and addicted ... if we got them housing, a lot of the disturbances that we see on the streets would disappear. You just don’t see the results yet because it’s complicated — and it’s 30 years of undoing. Douglas 21
Can you tell me what the biggest challenge has been for you?
Nope. There’s good stuff that happens and bad stuff that happens. My job as mayor is to stay level-headed and reasonable and open to feedback, and not get sucked into this crisis or that crisis. When the mayor thinks there’s a crisis, or gets mad as hell, or if the mayor acts unreasonably, that doesn’t do a service for anyone. My job is to stay calm, centred and really focused on the 30-year vision. People love to lurch from crisis to crisis, but that’s not my job. Are there things you’re particularly proud of?
We’re sitting in one of them. The Business Hub [launched last year at City Hall] is a lean startup, no new tax dollars, repurposing a couple of vacant staff positions, converting a storage space to this space we’re sitting in — and it’s making a difference. If you want to open a business, run a business, relocate your business to Victoria, or if you want to invest in a business, it’s the place you come. It’s a perfect example of how to pilot something, have it as a prototype, see if it works, get feedback from our customers — and make it better. I want to nurture the Business Hub. I want to keep working on downtown and making our neighbourhoods great. Another key deliverable that was in my platform that has now been delivered is the South Island Prosperity Project … It’s historic that 10 municipalities, all three post-secondaries, a number of private-sector institutions and our tourism and harbour industry associations have come together and created a truly regional economic-development body — and its focus is on sustainable prosperity. So I feel like in the last year and a half, we’ve almost finished setting up a structure to keep delivering the projects that we want to deliver. You wrote in your election blog about transforming politics from a blood sport. But it seems right now, with the anger directed towards you, it’s more bloody than ever. How do you deal with that?
Stay open-hearted. People say to me all the time that you must need a really thick skin to do this job, but as soon as you have thick skin, you don’t let stuff in. It means you’re closing down. And there’s a lot of shit that comes my way for sure, so [when] that comes in I say, “That is kind of irrational and makes no sense and is not based on any evidence.” All right, so that doesn’t stay. But then I get some really good feedback like, “Why are you doing it this way? How about this instead?” and that actually is important. If you’re thick-skinned and closedhearted, you aren’t open to feedback. Speaking of feedback, painting the crosswalks and sidewalks seemed like a fairly benign decision, but you got slammed for it as a waste of money.
Here’s a classic example of misunderstanding, 22 Douglas
and this really gets under my skin. “Why are you wasting the tax dollars on painting the sidewalk?” Well, actually, we’re not. The City put in $60,000, the private sector put in $120,000. There’s sidewalks, there’s a new retail kiosk, there’s new public art, there’s a new bike shelter, there’s a new bike-mechanic station — so we turned $60,000 tax dollars into a $120,000 investment in the public realm. Isn’t that what you want? Isn’t that the point? That’s good business sense. Former mayor Dean Fortin once said his job was to be the biggest cheerleader for Victoria. Are you doing any of that?
Absolutely not. I could just say, “Rah, rah, rah,” but I’ve got my sleeves rolled up and my hands on a lot of projects. CityStudio Victoria — I’m leading that. I’m facilitating that. I’m pulling people together. The Mayor’s Task Force on Economic Development and Prosperity is another perfect example of good business sense and saving tax dollars. Last time the City did an economic-development strategy, they hired a consultant and it cost a hundred thousand bucks. This time, with the support of our fantastic staff, I led the task force with zero consultant dollars, pulled all of the intelligence of the community together and wrote an economic-action plan. In terms of the actual writing of the actual plan, I was heavily involved in the crafting … I think I’m the opposite of the cheerleader. My hands may be too much in some things sometimes, [but I’m] not standing on the sidelines waving my pompoms. It’s not in my nature. In hindsight, is there anything you would have handled differently?
The police board is definitely one of them. We should’ve sought better advice. Mayors do not know how to conduct investigations. Mayors don’t conduct investigations. We did not conduct an investigation. Better guidance through that process, I think, would’ve really helped. And also being clear on what to say coming out of a meeting where a board decides this file is closed and we have confidence in the chief. It was a personnel matter, so we just should have said it’s a personnel matter. It seems the Province is asking the amalgamation question now by launching a study into the possibilities. Where are we headed with the Big A?
We’ve amalgamated our economic development function, for at least 10 of 13 [municipalities]. That’s a significant small amalgamation that’s taken place in the last year. The regional police boards that are municipal (Victoria, Esquimalt, Oak Bay, Saanich and Central Saanich) have met three times and are working on better integration of regional policing. At a staff level,
there are over 100 types of purchasing shared across municipalities. A perfect example is electric cars. We didn’t go buy electric cars ourselves; we bought electric cars in partnership with Saanich. Political amalgamation of all 13 municipalities … who knows? What’s the most cost-effective way to deliver services? That’s the question to me. The question for me is not whether to amalgamate or not to amalgamate. If amalgamation is the most cost-effective, most efficient way to serve tax dollars, then I’m open to that. But I will reserve comment until we learn what this provincial-led study will bring us. And I’m glad the Province is taking leadership.
Mayor Helps strolls across the jigsaw crosswalk at Yates and Douglas. The City contributed $60,000 toward a $180,000 public/privatesector StART project, which includes a bike shelter and a bike-mechanic station. “StART on Douglas,” says Helps, “is another step toward realizing that vision and restoring Douglas Street as one of downtown’s grand avenues.”
Finally, the Johnson Street Bridge. What’s left to be said?
Disaster from the start. What we’ve done in the past year and a half is brought the project back on track. We’re sharing information with the public. We’ve got Jonathan Huggett, who’s managing the project very, very well. Yes, it’s late. Yes, it’s over budget. But I knew it was going to be late and I knew it was going to be over budget and that’s initially why I voted against signing that contract, because I knew it was a bad contract from a business point of view. Now our job is just to get the thing done and never do a capital project like that again. How do you feel about the job you’ve done so far?
I don’t think it’s about me. We’re doing well. One of the things I committed to was to work collaboratively
‘‘
I think I’m the opposite of the cheerleader. My hands may be too much in some things sometimes, [but I’m] not standing on the sidelines waving my pom-poms. It’s not in my nature.
with all of our partners, like the Downtown Victoria Business Association. Downtown retail vacancies are down two per cent from 2015 to 2016. Is that all me? Absolutely not. Is that us working together? Absolutely ... Government Street is full, and the people moving in are high-quality businesses. Tourism is having its best year ever. I was on a panel at the Victoria Real Estate Board with developer Dave Chard. Somebody asked him, “How is it to do business with the City?” and Dave said, “It’s fantastic.” The City has made huge changes with how they work with developers and business, and we’re really feeling that positive impact. There are 21 construction projects underway downtown right now. If I’ve done anything, it’s as a champion of culture change at City Hall by walking the talk. I think we’re seeing the ripple effect of that. ■ Douglas 23
the big idea BY danielle pope photos by jeffrey bosdet
Studio Robazzo rethinks modern design 24 Douglas
Andrew Azzopardi and Christina Robev, both graduates of the University of Waterloo School of Architecture, share a passion for taking sustainability in design to new levels.
Whether they’re designing visual identities, wooden coasters or stage sets, Studio Robazzo’s eco-design approach is about changing our perceptions of what’s possible. Douglas 25
Ideas are written and sketched on walls throughout Studio Robazzo, leading to idea sharing and collaborative design. In Azzopardi’s workspace, a skylight hammock is ideal for blue-sky thinking.
Studio Robazzo is not limited by the traditional restraints of design/build studios or graphic design firms. Instead, partners Andrew Azzopardi, Christina Robev and Sarah McFadzen thrive on solving problems at any scale, inspired by natural forms and modern design principles. This live-edge maple console table connected the three partners of Studio Robazzo and helped establish their principles of sustainable, practical and beautiful design.
Few people would believe Studio Robazzo began over a table. The eco-design studio is laying the foundation for new-age architectural design in Victoria and is earning accolades for its work around the city. It’s responsible for the backdrop of Fashion Splash, the Mayor’s Medals at Thinklandia, the graphic installations of TEDxVictoria and the Vancouver Island EcoStar awards. Robazzo is also behind the pop-up booths for Pacific Rim College, the marble retail displays for Elate Clean Cosmetics, the branding for the Greater Victoria Festival Society and a host of events that occur at Studio Robazzo headquarters, like the Victoria Food Swap. All of this within the studio’s first year. But back to the table. Architectural designers Andrew Azzopardi and Christina Robev were fresh in the makerspace of Victoria when they were asked if they could custom-create a console table using natural materials for a unique space. The two had just 26 Douglas
arrived from Ontario, but took up the challenge and created the prototype for a responsibly sourced, live-edge maple table, resting on a single strand of folded steel to create a look of suspension. The design was eye-catching and unique and left impressions for its practicality. It was this table that would play a role in connecting Azzopardi and Robev with their third partner, Sarah McFadzen, as well as with their studio space and even some of their first clients. It would also set the stage for their guiding principles: they wanted to create by hand and use sustainable, repurposed or salvaged materials, and they wanted each creation to make life easier — and more beautiful — for the user. “We’re surrounded by materials and opportunities on the West Coast to break through the mundane and help people see things in a way they never have before,” says Azzopardi. “We want to change people’s perceptions of what’s possible.”
A Feel-Good Footprint When Azzopardi and Robev met in architectural design school at the University of Waterloo, they shared a vision: they wanted to bring nature back into design, but they wanted to moderate it in a way that worked for today’s standards. “There’s almost a checklist people go through to be ‘sustainable’ — are we using the right light bulbs, the right suppliers, the right resources? — but we want to take that further,” says Robev. “We want to create something new and usable out of something that would otherwise go to waste. More value is being placed on creating by hand, and there aren’t many people converting garbage into value. We’re excited to do both.” With a mix of laser cutters and homespun materials, the crew’s mission to create “a well-designed future that’s environmentally, socially and economically sustainable” has redefined what it means to reuse. For example, the Elate Clean Cosmetics retail displays are fabricated from fine particles of marble slurry, compliments of a partner who discards it. The installations created for TEDxVictoria were built out of cardboard boxes collected from surrounding furniture stores. That same cardboard was then deconstructed and reused for laser-cut art and subsequent projects.
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gated communities d executive homes & lots d townhomes d condominiums ENQUIRIES: 250.391.6100 BEARMOUNTAIN.CA/LIVEHERE
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European models shown for illustration purposes only.*Starting from price of $43,295 based on the 2016 BMW 320i xDrive Sedan with automatic transmission with a MSRP of $39,999 and includes freight & PDI ($2,295). DOC fees ($395), tire levy ($20), environmental levies ($100), license, taxes, insurance and registration and if applicable PPSA (up to $45.48) are extra. ©2016 BMW Canada Inc. “BMW”, the BMW logo, BMW model designations and all other BMW related marks, images and symbols are the exclusive properties and/or trademarks of BMW AG, used under licence. See BMW Victoria for complete details. DL 10135 #31009
“The irony of Studio Robazzo’s impact on TEDxVictoria is that the very reason we worked with them was to reduce our impact,” says TEDxVictoria creative director Dylan Wilks. “Andrew, Christina and Sarah produced a beautiful package focused on using recycled, reclaimed and locally sourced materials. It was the most distinct, consistent and complete visual identity we’ve ever had.” Melodie Reynolds, creator of Elate Clean Cosmetics, felt a kinship with the studio’s mission. When it came time to create her displays, the match was clear. “I could have ordered something plastic from China [for my cosmetics packaging], but I wanted to go with a company that reflected the values Elate stands for,” says Reynolds. “The studio’s ability to innovate and adapt is incredible — I can shout ideas into the ether and they run with them, knowing I’ll be looking for the most sustainable option … It makes me feel good about my footprint on the world.”
The Texture of Reality While visuals are crucial in design work, Studio Robazzo aims to enhance the sensory experience, with texture being of top importance. The crew is experimenting with materials like plastic bags to discover how to reform them into household objects — and maybe even create a natural feel. Meanwhile, the team has developed a reputation for reframed work with uniquely cut WestCoasters, made from hand-salvaged Vancouver Island driftwood. “People are seeking a way to reconnect with nature, but not necessarily in that cottage-plaid lifestyle,” says McFadzen, originally from New Brunswick, who first joined the team by helping sand the famed table. “What we create has to work for modern life in 2016, but it also has to offer that chance to touch and feel something real … it’s almost like we are curating nature.” Their enormous 3,000-square-foot Douglas Street studio, which they refer to as a “creative playground,” is an extension of this tactile experience, dedicated to local collaboration. It features the largest white wall in Victoria to support professional and amateur photographers, as well as a rotation gallery of local artwork and a free space for artists to create. Visitors may also be surprised by the floating hammock and accessible treatment floor. Studio Robazzo routinely opens its doors to the community for use as a venue, whether for rock concerts or meditation gatherings.
Making People’s Lives Easier While the young team is well versed in finding new solutions, problem solving is a big part of the work. In fact, it’s what lured Azzopardi away from his high-profile design job in Toronto and into his own business. The studio is
constantly faced with complex projects, like the pop-up trade-show booth recently completed for Pacific Rim College. The parameters: it had to fold into a small suitcase, be illuminated, have a simple setup and be ready in two months. The team nailed it. Shortly after, the college hired them to complete an herb-crate display at the Hudson. “Situations like this are our dream come true — that’s what drives us,” says Azzopardi. “People come to us with a problem, and we fix it. Our work is designed to make people’s lives easier, in a way that combines functionality with something that’s esthetically pleasing.”
To this day, the table remains one of Azzopardi’s proudest solutions. The steel base mimicked the shape of a reformed coat hanger, and the floating wood top highlighted nature in pure form. “I love the ‘aha’ moment of surprising people with design — that’s where success is for me,” says Azzopardi. “The big ‘aha’ moment we’re all facing right now is that we have to care about the planet. But whether or not you identify as an environmentalist, if you choose your products carefully you are supporting the planet, and that’s a huge success for everyone.” ■
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brentwood bay resort & Spa Maximizing Human Potential with the Emergent Leaders Program
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rentwood Bay Resort and Spa (BBR) has aligned with two globally renowned and highly respected organizational development companies to create The Emergent Leaders Program. Since 1984, the Schutz Company of New York has been delivering The Human Element® approach to maximizing human potential in organizations such as NASA, Boeing, Memorial SloaneKettering, and the US Army. Steve Miller, the Canadian consultant and president of IMEX Strategies, of Vancouver, created and delivers the Implicit Career Search®. This internationally recognized program is the most innovative and effective career planning method available to individuals and organizations throughout North America and Europe. Answering Key Life and Career Questions The Emergent Leaders Program (TELP) has merged these two approaches to provide an integral approach to leadership training. TELP participants will graduate from the program having answered the following questions: •W ho am I and who will I be from here on? (Self leadership) •W hat will I contribute through my work? (Career leadership) •H ow does my personal work purpose align with my company’s mission statement? •W hat are my leadership strengths and what areas do I need to develop further? (Team-leadership)
The Emergent Leaders Program is being offered to organizations and the public as a team-building retreat, for individual leadership and career planning, or as part of an organization’s training program.
The nine-day workshop is delivered in three parts: Part 1 Self-Leadership provides participants with skills to communicate openly and candidly, be fully accountable, increase their selfawareness, understand human behaviour and motivation, learn how to change ingrained behavioural patterns, and essentially take charge of their lives. Part 2 Career Leadership provides participants with an opportunity to understand the purpose of their life and their work. Participants create a strategic career plan that is tangible and focuses on working with purpose, understanding that as individuals we all have something we want to contribute. 30 Douglas
Part 3 Team Leadership focuses on how teams work, optimizing team functioning, understanding leading people and learning how to make group decisions that supports ‘buy-in’, efficiency, and creativity. Finding Purpose, Meaning and Direction Brentwood Bay Resort and Spa has incorporated this program into the ongoing training offered to all employees of the Resort. Like many hospitality organizations, the Resort employs a large percentage of Millennials.
As a group, Millennials can appear to be very scattered with their attention; they seem to want everything and that often leads to a frustration resulting in inactivity or paralysis. The Emergent Leaders Program grounds individuals and provides meaning, purpose and direction to their lives. It connects all their frenzied interests into one big drive forward. The Emergent Leaders Program is now being offered to organizations and the public as a team-building retreat, for individual leadership and career planning, or as part of an organization’s training program. The workshops can also be customized to fit within an organization’s needs and goals.
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Select Mortgage Expert Mortgage Advice for all Types of Mortgage Transactions
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avigating the mortgage process has become more complex over the last few years. That’s why you want experienced, client-centred mortgage professionals on your side. The team at Select Mortgage focuses on meeting the unique needs of each and every one of our clients throughout our beautiful province. Like the homes they choose — from condos to single-family homes and multi-unit properties — each of our clients has their own story and their own financial needs and goals. We help them on the path to their financial and homeownership goals, whatever their life stage or property preference.
“Our business is about helping our clients on the path to their financial and home-ownership goals, whatever their life stage, and whatever their property preference.” – Don Barr, president
The Right Team for Today’s Complex Market At Select Mortgage, we excel at helping our clients successfully navigate an unprecedentedly busy market. This market can be ultra-stressful for people trying to purchase a home. With properties in many communities selling very fast, often above asking price and in bidding wars, prospective buyers often miss out on several properties before they are finally successful in purchasing. In this heated market, buyers are often put in a precarious position and don’t always have the buffer of a “subject to financing” clause that has always been a standard protection for buyers. Our Select Mortgage team works hard to assist clients before they make an offer so that there is a successful financing outcome. Our team is headed up by nine location managers, our indispensable administrative team in Victoria, and is operated by Geoff Parkin and Don Barr. Since launching their business in 2005, Geoff and Don have grown the firm to 11 locations throughout Vancouver Island and the Lower Mainland, with over 70 mortgage advisors now licensed with Select Mortgage. Don, our president, works out of our Westshore office. He has been in the mortgage brokerage industry for more than 35 years. A long-time Victoria resident, Don is a pioneer in the mortgage broker industry and has served on the board of the Mortgage Brokers Association of BC (MBABC) for eight years. Geoff, our CEO, has been in the financial industry for more than 25 years and has CPA and CFA designations. A former Victoria resident, Geoff lives in White Rock where he serves on the BC Children’s Hospital Foundation board. With their extensive expertise and personalized approach, Don, Geoff and the entire Select Mortgage team are well positioned to help our clients understand and chart a successful course through the ever-changing complexity of the mortgage-financing industry.
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St. Margaret’s School Empowering education for girls
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second home to local girls and students from around the world, St. Margaret’s School (SMS) has an international reputation as a centre for academic excellence and girls’ leadership development. Two years ago, the Victoriabased independent school decided to further hone its academic niche to become Canada’s first all-girl STEM school. More than an acronym for science, technology, engineering, and mathematics, STEM is an inquiry-based, interdisciplinary educational philosophy centered on question, observation, reflection, and communication. Studies report that women continue to be proportionally underrepresented in STEMrelated positions within industry, commerce, and education. Cathy Thornicroft, SMS Head of School, explains that “In order to be active contributors in an increasingly technological world, women will need the courage to ask probing questions, collaborate across disciplines, and think critically to address complex problems. By focusing on STEM, we are giving our girls the experience and confidence to become the architects of their own future.” 32 Douglas
St. Margaret’s strategic focus on STEM builds on tradition and innovates through community partnerships. Cathy points out that this is a natural evolution for the school rather than an overt change in direction. Established in 1908, the school was graduating women into STEM careers before it was common to do so – among the list of notable alumnae was Dr. Frances Kelsey (Class of 1931), named to the Order of Canada for her role in preventing thalidomide from entering the United States in the 1960s. Fast forward to today, over half of the 2016 graduating class is going on to study STEMrelated fields. In order to provide innovative programming for its 350 students and expand outreach opportunities, the school employs a dedicated STEM Program Support Teacher who focuses on creating strategic alliances with local businesses and non-profits, while supporting a continuum of STEM learning at all levels from Junior Kindergarten to Grade 12
through teacher collaboration and specialized programming – like SMS’s middle school Robotics elective. Benchmark examples of these outreach initiatives include an ongoing partnership with Girls Learning Code to offer computer science workshops year round, as well as its upcoming STEM Leadership Conference, planned for April 2017, which will assemble girls and mentors from across the island and Lower Mainland (see stmarg.ca/stemcon). With this renewed focus, SMS aims to inspire a generation of female leaders with the skills and confidence to work collaboratively and advance solutions to future challenges. The end goal, according to Cathy, is to ensure students are grounded in wellness, strengthened by the humanities, connected through the arts, and soaring with STEM.
250-479-7171 | www.stmarg.ca
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Our menus and award-winning wine list are designed around your business needs and delivered with professional service. Zambri’s private spaces are also Victoria’s number 1 choice for parties and family gatherings of all kinds! Be it a family reunion, wedding reception, holiday party, celebration dinner or lunch, bridal shower or just a group of friends sharing a meal, we can make your next private event a memorable one. • Private space for 10-60 guests • Menus available for every budget • AV equipment for slide shows and speeches Email Yann now to reserve your next turnkey, worry free and memorable private event: yann@zambris.ca.
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BY Athena McKenzie
the need for It’s a gorgeous, sunny day in the Cowichan Valley, so there’s no need to worry about water on the asphalt as I ease the Subaru BRZ around a hairpin turn and hit the gas. There’s a satisfying roar as the sporty blue car shoots forward on a straightaway, but I brake a little too sharply for the next turn, so the tires squeal and the back end drifts over the rumble strip. On the Malahat, this would qualify as reckless driving, but this is the Vancouver Island Motorsport Circuit — the first motorsport-themed country club in Canada — and I’m learning that when you take away speed limits and other concerns of the highway, driving is a hell of a lot more fun. It’s a discovery that Peter Trzewik, partner at GAIN Dealer Group, the Vancouver Island-based luxury dealer group behind the motor-circuit development, is hoping other drivers will make. “This is where people can find out what a car is really built for,” Trzewik says. “Many people who buy our cars have no opportunity to test that car’s true performance capabilities — and really shouldn’t on public roads. This track really came out of the automotive group ... The underlying purpose is to sell more sports cars on Vancouver Island.” GAIN, previously the German Auto Import Network, started with one store, Three Point Motors Mercedes-Benz in Victoria in 2008, but now has nine Island dealerships, which represent 11 distinct brands. As part of the circuit’s regular operations, each of GAIN’s dealerships will have access for client days and performance training. When I arrive for one of the motorsports circuit’s media days prior to its official opening — my group is brought in by helicopter, which gives a unique overhead view of the track’s serpentine layout — an impressive sampling of the cars available from the dealerships is waiting, including an Alfa Romeo 4C Spider, an Audi S3, a BMW Z4, a Mercedes C63 and a 2017 Porsche 911Carrera S. Fast Business Even if you’re not an auto aficionado, the speed of execution of the motorsport resort from vision to reality is inspiring from a business perspective. GAIN first began to consider the project around three years ago, when it acquired 275 acres off the Cowichan Valley Highway, north of Duncan. The land was purchased in two parcels, one from the District of North Cowichan and the other from Island Timberlands. The acreage was then logged, while plans were finalized and zoning was approved. The heart of the facility is the 2.3-kilometre track, and while Trzewik and his business partner in GAIN, Sylvester Chuang, initially considered designing it themselves, they wanted it to be “world class” and turned to Tilke GmbH of Germany. Headed by engineer and former auto racer Hermann Tilke, the company is considered “the brand name in track design,” having built almost all of the new Formula One (F1) circuits since 1999. The Vancouver
In addition to being a private members track, The Vancouver Island Motorsport Circuit hosts events for car manufacturers, such as Audi, who booked the track in April for the Canadian launch of the 2017 Audi R8. 34 Douglas
Russ Heinl
speed Douglas visits the Vancouver Island Motorsport Circuit for a full-throttle look at Canada’s first motorsport country club, right in the heart of the Cowichan.
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Jeffrey bosdet/douglas magazine
terrance Lam
Island Motorsport Circuit was Tilke GmbH’s first private Canadian project. “I’m a Formula One fan, and nobody else has Tilke’s history or their record, considering the tracks they have built in the last 20 years,” Trzewik says. “I never imagined we would be able to work with the best in the world.“ Construction of the track and 15,000-square-foot state-of-the-art clubhouse began in 2015, and paving of the first layer of the circuit was completed late in the year. “Saying the timeline has been intense would be an understatement,” says Chris Erb of SupErb Construction Ltd. of Nanaimo, the commercial contractor who does all of GAIN’s building projects, including dealerships. “As much as it is a test track, it’s all about safety,” says Erb, who points out that the track itself presents unique challenges, different from standard road construction. “You’ve got a run-off area, so if you lose control in the corner, you’ve got a lot of area to recover, and then you’ve got clear stone outside that. When the car hits the clear stone, it virtually stops. And then there are guardrails or tire barriers, depending
“People can’t believe a facility like this exists here on Vancouver Island. The guests’ reaction has been overwhelming; as much as they’ve read about it and looked at the pictures and watched the videos, what really strikes them is the elevation of the course. There’s a 55-metre change in elevation as you go around each lap, and it’s quite stunning when you experience it in person.” — track operations manager Brent Evans
terrance lam
The Vancouver Island Motorsport Circuit is located on a 275-acre site in Vancouver Island’s Cowichan Valley. Its 2.3-kilometre track has 19 corners, and a lap can be configured in five different ways. Of note are the track’s changes in elevation, with a lap offering a maximum incline of 11.5 per cent and downhill slopes of up to 12 per cent.
36 Douglas
on where you’re at on the track. So safety is still the most important aspect of the track.” Along with laying 10,000 tons of asphalt for the 2.3-kilometre track and acquiring and stacking over 30,000 tires for the tire barriers, the build included the state-of-the-art members’ clubhouse. Designed by Plaston Architect in Toronto and James E. Irwin Architect in Victoria, the clubhouse offers 180-degree views of the track and contains a restaurant, meeting rooms, presentation centre and four pit garages. My track visit includes a stop in the control center, which houses all the monitors for the on-track cameras, as well as the feeds for the Racelogic software that members can use to record lap times and track their progress. With its multitude of screens and boards, it’s not unlike air-traffic control. This spot is also integral to track safety, and from here all track activity can be stopped, with immediate dispatches made to 911, if ever necessary. Along with the current four-acre drivingdynamics area with its wet/dry skid pad, there is a one-kilometre off-roading circuit under construction that will have 10 different elements, including a water obstacle. Plans are also underway for phase two of the track itself, which will feature a long run through the trees. “The whole thing is a pretty unique project for Vancouver Island, but it’s even unique for Canada,” Erb says. “And the positives for Vancouver Island are huge.” There is also the potential for the track to draw a different — and moneyed — market to the area. Bailey Williamson, winemaker at Blue Grouse Winery, believes the Cowichan is poised to make a big move in the tourism sector and that the track is all part of the growth helping to lift the industry. “The [circuit] is going to bring some really interesting people to the area,” he says. “The spouses aren’t going to want to sit around while their partners are driving loops around the track. They’re going to be out doing things. “Like wine tastings,” he adds, laughing.
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country club The Vancouver Island Motorsport Circuit’s official opening on June 6, overseen by operations manager Brent Evans, definitely brought some excitement to the region. The crowd of 400 included Grammy Award-winning music producer David Foster — whose Victoria-born cousin, Billy Foster, was the first Canadian to race at the Indy 500 — Dragons’ Den investor Jim Treliving, Italian stock-car racer Max Papis and former Formula One driver Danny Sullivan. While motorsport “country clubs” have been popular in Europe for some time, they are only recently catching on in North America. Vancouver Island’s joins a growing number of clubs popping up in the United States, including Douglas 37
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facilities in New York, Virginia, California and Nevada. Trzewik compares them to private golf clubs. At the Vancouver Island Motorsport Circuit, members get rare, year-round access to a professional-racing-quality circuit, paying from $48,000 to $200,000 for a 25-year pass. This gives a member 20 days a month of track access, including one weekend day, as well as family access to the clubhouse, guest driver passes, use of the Racelogic software and driving lessons from the house instructors. There will also be access to celebrity guest instructors, and confirmed participants include Max Papis and, for the motorcycle enthusiasts, Grand Prix World Champion Kevin Schwantz. The track is also in the process of constructing on-site car-storage facilities for its members, which can be arranged for an extra fee. While GAIN wouldn’t comment on the number of memberships sold (of their long-term goal of 499), there are members from as far away as Germany and Asia. One member from California is rumoured to be shipping and storing 19 cars.
Speed Island To build the Vancouver Island facility, GAIN studied clubs in Europe and drew heavily on the experience of Tilke GmbH, which has worked on motorsport country clubs in Georgia and Colorado in the U.S., as well as clubs in Spain, Norway, Germany, Kazakhstan and Bahrain. In designing the Vancouver Island circuit, Hermann Tilke’s business partner, architect Peter Wahl, and Tilke’s director for the Americas, engineer Christian Epp, made several visits to the Cowichan Valley site. “It is wonderful when we get to work with a piece of land like this,” Wahl says, referring to the changes of elevation found on the site. “As a designer, you can play with this topography. The site reminds me of the project in Austria where we did the A1 Ring for Formula One. With that project we had the opportunity to put in some interesting features because of the hills. This makes racing a bit like a rollercoaster ride, which is fun and challenging for the driver.” Roller-coaster ride seems an apropos description for a track that has significant elevation changes of 12 per cent and 19 turns carved into its 2.3-kilometre length — 12 righthand and seven left-hand turns, which can be setup into five different configurations. It’s also how Dr. Sunny Tatra describes his exhilarating experiences driving this “technical track.” Tatra, a local dentist and sponsor of GAIN’s annual Vancouver Island Motor Gathering charity event, is an avowed car aficionado and has been a client of GAIN since 2006. He was one of the first Vancouver Island residents to purchase a 25-year membership. His interest in the membership developed through GAIN’s driver education program.
“If you buy a car from us and you have an interest in performance driving, then we’ll invite you into our school system,” Trzewik explains. “After several levels of instruction on the track, you’ll become a relatively good driver and may discover it’s a passion and get a membership. Whatever you decide, you end up really understanding your car’s capabilities and why you bought your BMW or Mercedes or whatever car you bought.” Tatra has always been keen on GAIN’s driver training program. Even before the motor circuit was built, he travelled with the dealer group to tracks in Las Vegas and Ontario, as well as attending local events. While initially drawn to the “fun factor” of handling high-performance cars at high speeds, he is now a vocal proponent of the safety outcomes, crediting the training he received with his reaction when another car did a U-turn at 100 kilometres per hour on the highway out of Drumheller, Alberta. His family, including his two young children, was in the car. “We walked away, but the occupants of the other car weren’t so lucky,” Tatra says. “That had to do with the high-speed manoeuvres and high-speed training that I received on a track. How often on a street do you hit speeds of 110 kilometres per hour and then bury the brake pedal? How do you know how a car responds as the load shifts from the rear tires to the front
tires in terms of making a manoeuvre to avoid an accident? When that happened, I don’t think I even thought about it. I just responded because I’d done it around four or five times before.” Now, with the motorsport facility built, GAIN will be able to host more driver training on the Island and not have to rely on off-site venues, such as tracks in Las Vegas or Ontario.
The Showcase In addition to its benefits to the dealerships, a big business case for the track was the work that the GAIN group does with the car manufacturers. Trzewik says part of the risk assessment was looking at possible manufacturer events, and the Island’s potential for year-round operations at the track. “We represent manufacturers who are looking to showcase their cars,” says Trzewik. “As of October, they normally have to leave Canada. Why do we go so far and spend so much when the weather is better on Vancouver Island? Why are we flying 40 to 50 people around the world?” Before its official opening, the Vancouver Island Motorsport Circuit hosted the launch of the Audi R8 in April. According to Trzewik, the three-week event saw Audi spending $1.3 million in the area on hotels, signage, food and beverages.
“Not all of these manufacturer’s launches will last three weeks, but the Audi event was one of 10 such events that we will host this year,” Trzewik says. Another draw for car manufacturers looking to launch their latest models and for car enthusiasts looking for the ultimate motorsport club is GAIN’s investment in the nearby Villa Eyrie Resort (formerly the Aerie Resort and Spa). The renovated luxury facility will reopen this month with 40 suites, a restaurant, a spa and a clubhouse for motor-circuit members. Along with hosting members, GAIN hopes the resort will become the perfect retreat for locals, visitors to the Island and guests of corporate clients renting the facilities. Trzewik sees Villa Eyrie’s location on a scenic Malahat property as ideal for people to get to the track and to downtown Victoria, as well as being the perfect base for all the activities of the Cowichan, including golfing, fishing and wine tasting. “The car manufacturers have choices all over the world, and we are now one of those choices,” says Trzewik. “Because of the incomparable setting of the resort, the beautiful nature of the Island and the activities possible in this area, I think we have a pretty good shot at attracting a lot of people here to the Island.” ■
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New Owners, New Vision by Andrew Findlay
Can the new U.S.-based owners of Mount Washington Resort pull it out of its tailspin of the last two years? Last November, Utah-based Pacific Group Resorts Inc. (PGRI) signed a deal two years in the making to purchase Mount Washington Alpine Resort. Fans of skiing, snowboarding and other winter sports, along with businesses that benefit from the resort, are hoping the sale will breathe new life into a ski area that’s been a staple of Vancouver Island winter recreation since 1979. That’s when Alex Linton and business partner Henry Norie hatched the idea to install ski lifts on this mountain with an ocean view above the Comox Valley. “Pacific Group Resorts are pros in the industry and they’ll be very involved in strategic planning moving forward, but they’ll be working with existing managers on day-to-day operations,” says Peter Gibson, president and general manager of the resort and a longtime Mount Washington employee. Gibson has paid his dues at Mount Washington and has the scars to prove it. Physical ones from the time in the mid-1970s when as a young hire he helped fall trees and cut ski runs. And more recently, emotional scars acquired during the consecutive dismal winters of 2013/14 and 2014/15 when the resort struggled to stay open, and it fell to Gibson to buoy up the spirits of a skeleton staff, respond to the barrage of questions from unsympathetic season-pass holders and address media covering the misfortunes of the resort like a death watch. If it was tough on Gibson, it was even tougher on shareholders. The group, led by Campbell River logger George Stuart, had owned the mountain since 1989 after buying it from the founders. During those years, they had watched cash flow dwindle after missing the lucrative Christmas season one year and closing in mid-February the next. Funds hemorrhaged simply to keep the lights on, pay staff and maintain bare-bones operations. Though recent tough winter seasons had some people wondering if there could be a future for skiing on the Island, Mark Fischer, PGRI’s executive vice-president of resort investment and brand 40 Douglas
development, is convinced there is indeed a future. PGRI acquired all recreational property — lifts, lodges and other infrastructure — as well as more than 40 hectares of developable land while Stuart and his partners retain two parcels of property. Fischer says the company may partner with the former owners to develop these parcels, but that’s a future decision. “Anybody who’s in the ski business in North America knows about Mount Washington,” Fischer says over the phone from Maryland. He first inquired about the purchase opportunity back in June 2013, but says he had been aware of the resort for decades because of its legendary snowfalls, which can top 10 metres in big years. Location, Location
Mount Washington is famous for its feast of big snowstorms, but also its famine of a temperate coastal climate where the difference between rain and snow on the slopes can be a matter of a degree or two in temperature. It can also make a difference of hundreds of thousands in profits and losses. However, the folks behind PGRI are accustomed to running ski resorts in marginal locales. Mount Washington joins PGRI’s portfolio of three American properties — Wisp Resort in Maryland (not
Mountain Bike Park
galyn franklin
A resort for all seasons Mountain Bike Park After a three-year hiatus, Mount Washington’s lift-served bike park opened this summer with six trails plus 10 kilometres of crosscountry trails. The resort has plans for further upgrading and more new trails. Snow-Making Machine The new owners plan to put a big emphasis on snow-making, phasing in snow-making machines to ensure the hill has a consistent annual opening date, a fall-back when conditions are poor and coverage on high-traffic areas.
bungee trampoline
Bungee Trampoline A new Eurobungy trampoline quad jump uses multiple bungee cords, turning a traditional trampoline into a gravity-defying ride. Jumpers can reach heights of up to 10 metres. Property Updates The main lodge and Fat Teddy’s Bar & Grill will undergo some renovations. The resort owners are also conducting market research into updating the current hotel stock.
property updates
snow-making Douglas 41
exactly renowned for winter sports), Wintergreen Resort in Virginia and New Hampshire’s Ragged Mountain. Despite the word “pacific” in PGRI’s name, this is its first foray into the resort industry on the Pacific side of the continent. Neither PGRI nor previous owners have disclosed the sale price, but Mount Washington is believed to have sold for well below the rumoured $30 million list price, which one industry insider had called wishful thinking at best. In many ways, the Utah investor’s timing couldn’t have been better. Mount Washington’s weather-weary owners were motivated to sell, and the U.S. dollar was trading at more than Can$1.30 around the time the deal was announced, deeply discounting investments north of the 49th parallel for American buyers. Furthermore, tourism on the Island is enjoying a healthy growth spurt, up five to seven per cent in 2015 thanks to the weak loonie. To top it off, winter was kind to Mount Washington this past season for PGRI’s first year of ownership. An All-Season Strategy
Two key pillars of PGRI’s business strategy are snow-making — an investment the previous two owners never made — and all-season marketing. Though Fischer says Mount Washington is better known for winter tourism, summer tourism is a major focus of the new owners as they shape the future of the resort, which has so far struggled
to grow a strong summer product and leverage infrastructure that sits mostly idle after the snow melts at the end of one winter season until first flakes fall to herald the arrival of the next. “Mount Washington comes with an excellent management team, great ski terrain and a beautiful setting next to Strathcona Park,” Fischer says, noting that PGRI’s resorts on the eastern seaboard all border beautiful natural areas, such as Virginia’s Blue Ridge Mountains. The new owners have “cred” in ski-resort development and management and are avid skiers and cyclists. They prefer not to be the public face of Mount Washington, leaving that to general manager Peter Gibson and the management team that is unchanged from the previous ownership. PGRI will, however, be hands-on when it comes to big-picture decisions and development. President and CEO Vern Greco managed Park City Mountain Resort in Utah up to and through the 2002 Winter Olympics. Fischer brings a background in finance and brand development to Mount Washington and PGRI’s other properties. He believes the Island resort is punching below its weight in terms of business potential. “Relying on four months of winter operations for a year’s worth of revenue is like operating a factory with one eight-hour shift per day,” Fischer says.
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He says Mount Washington’s winter market will remain largely focused on the island, centred on the Comox Valley and spanning from Campbell River to Victoria. He views summer tourism as the big area for potential growth and has his sights on capturing a much larger share of the travellers from around the world who visit Vancouver Island during the dry season. As a first step, Mount Washington has reopened its mountain-bike park, which features more than half a dozen lift-accessed trails dropping from the mountain’s 1,588-metre summit. Three years ago the then-owners suddenly announced the bike park’s closure, citing escalating costs for insurance and operations coupled with a flat market. But poor planning and lack of investment might have been the real reason. Comments posted on Facebook at the time of the closure from one local mountain-bike enthusiast summed it up this way: “People were not going because not enough energy was being invested in creating and maintaining world-class mountain-bike trails.” PGRI hopes to change that; the new owners, as part of the reopening, are building fresh trails and tweaking existing ones to make them more beginner and family friendly. The company is serious about the mountain-biking product — in June, the company brought snow-school director and bike-
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park manager Mike Manara down to Park City, Utah, to learn how that resort has parlayed a network of more than 250 kilometres of trail into its tourism mix. The company has also purchased a new bungee trampoline and is undertaking modest renovations to the main lodge that will reconfigure the front-end layout and add to the outdoor deck space to capitalize on the mountain view. At the time of this interview, Fischer said renovations to Fat Teddy’s Bar & Grill, the resort’s principle eatery, were on the books as well. In the long term, he says, the company will look into introducing additional summer activities such as ropes courses and aerial parks, both featured at the company’s other ski resort properties. PGRI is also conducting market research aimed at updating Mount Washington’s aging hotel stock. The Winter Mainstay
Though PGRI is planning significant investments in summer tourism, winter remains the backbone. That’s why the sale hinged heavily on PGRI’s ability to secure government permitting and licensing to draw water for snow-making. Fischer admits the Island’s mild climate poses challenges for a ski resort, which requires the right mix of temperature and humidity. He says the company is working with snow-making technology firms to address this issue. He expects to have a couple of snow guns in place for the coming season. Being able to guarantee earlyseason snow and ensure a Christmas-vacation opening is critical to the resort’s bottom line. Currently, Mount Washington is in rebuilding and maintenance mode. Despite clocking a healthy 250,000 skier visits last winter (in comparison, Whistler Blackcomb has roughly 1.1 million winter visits and five times the skiable terrain) and enjoying good snow conditions, Peter Gibson calls it a “B” performance in terms of resort operations. Some decisions made last year alienated longtime pass holders, such as the mid-week closure of the Boomerang Chair, which accesses black-diamond terrain on the mountain’s north side and discontinuing the popular mid-week season pass. “Because of the last two years, the place basically needs a fresh coat of paint. There’s a lot of catching up to do,” Gibson says, adding that mechanical failures with snow cats resulted in inadequate grooming of ski runs, which resulted in a slew of customer complaints. “We know we can do better.” Resort on the Rebound
The resort sale has created a buzz in the mid-Island business community and among skiers and snowboarders. At full operation, Mount Washington employs 900 people, from millwrights, electricians and other trades, to ski instructors, front-end service staff, bartenders, lifties and salespeople.
Brent Curtain, destination marketing Although a detailed analysis of the resort’s and tourism manager for the Comox Valley overall economic impact has never been done, Economic Development Society, says his it’s safe to say that it’s significant for the region. organization is in regular talks with PGRI to see According to Gibson, 30 per cent and 15 per cent how it can help facilitate the company’s plans. of the resort’s customers come from Victoria There’s no doubt that when the resort fails and Nanaimo respectively, and they all gas to thrive, so too do local businesses. Outdoor up vehicles, dine at restaurants and purchase retailers watch as inventory languishes on the outdoor gear from local retailers. shelves, and hotels see occupancy sag. PGRI takes the reins at Mount Washington During the 2013/14 season, when lack at a time when the property market in the of snow delayed the resort’s opening for a Comox Valley is red-hot, driven partially by Baby month, causing it to miss the crucial Christmas Boomers cashing out of the Lower Mainland, season, the Holiday Inn in Courtenay reported according to Jamie Edwards, a Royal LePage occupancy of just 28 per cent, down sharply realtor and developer in the Comox Valley. from 55 per cent in January the previous year. Sales of vacation properties at Mount If PGRI is successful with snow-making, a Washington, which had stagnated before and guaranteed Christmas opening would be a huge during the recent lean-snow years, are on the boost for these businesses. rebound. Sixteen condos sold in the first six Jeremy Grasby owns and manages the months of 2016, up 400 per cent from the same Riding Fool Hostel in Cumberland and has been time last year. As its first real estate play at the instrumental in the development of the Comox resort, PGRI plans to develop a subdivision Valley’s booming biking scene. He services of single-family lots dubbed Sky Island. The company has not given a timeline for the project. an active clientele that skis in winter and mountain-bikes in the shoulder and summer “Absolutely, Mount Washington is a huge part seasons. According to Grasby, the return of liftof the lifestyle draw for people moving to the accessed mountain biking to Mount Washington Comox Valley,” Edwards says. is exciting and will help build on the Comox Dave Petryk, CEO of Tourism Vancouver Valley’s reputation as a cycling destination with Island, calls the resort the only significant trails to suit all abilities, from flowing cross winter product on Vancouver Island. “So it’s country to technical downhill routes. important,” he says, “and I’d hope to see the COSM_9303_Chin Ad_R1.pdf 1 2016-05-05 10:02 AM “There’s no doubt that Mount Washington summer program up there grow as well.”
drives incremental business. That’s a no brainer,” agrees David Rooper, general manager of the Old House Village Hotel and Spa, adding that the Old House will be offering special stay-and-play packages to dovetail with Mount Washington’s renewed summer mountain-biking program. For ski enthusiasts, the mood in the Comox Valley ebbs and flows through the fickle months of a West Coast winter. Retirees who moved there to golf 12 months a year may groan as the dark days of winter set in, but for many other residents of the region, having ski lifts a halfhour’s drive away from the saltchuck is what makes the community unique and desirable. It’s the same reason PGRI was attracted to the investment in the first place. However, Mark Fischer knows the company has work to do to regain customer confidence after two tough snow years followed by this past season of rebuilding and ownership. “Last season,” Fischer says, “we received quite a few emails about grooming, road maintenance and other things, and we pay attention to those comments.” There’s no doubt locals are rooting for Mount Washington’s recovery. “Mount Washington is the infrastructure, the weather is the wild card,” says Grasby. “It definitely impacts us. When the mountain has a good year, we have a good year.” ■
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The Flow Effect of Leadership 1
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Be Supportive
Champion desired Change
Clarify objectives, rewards and consequences
Communicate prolifically and with enthusiasm
develop others
Develop and share a collective vision
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differentiate among followers
Facilitate group collaboration
Foster mutual respect
Give praise
Keep group organized and on task
Make Quality decisions
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Motivate and bring out best in others
Offer a critical perspective
operate with strong results orientation
Recover positively from failures
Remain composed and confident in uncertainty
role-model organizational values
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seek different perspectives
Solve problems effectively
89%
A recent study by McKinsey found that leaders in organizations with high-quality leadership teams typically displayed four of the 20 possible types of behaviour. These four “superpower” behaviours account for 89 per cent of leadership effectiveness.
Whether you are a business owner or a manager, your leadership style has a trickle-down effect that impacts everything and everyone in your organization. How do you make it the best it can be? by Ingrid VauGhan
F
or the third time in less than a month, Joe received notice that one of his employees was quitting. He felt frustrated that he would have to hire again, plus there were so many other HR issues to deal with. Later, he had to have a performance conversation with Sally, who was lagging in meeting her sales quotas. The day before, Joan and Frank had had a heated argument in the staff room, and people who heard it were visibly upset. And on the last financial statement he’d received from Jack, he’d found several significant errors by this usually diligent employee.
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Joe couldn’t deny that the team dynamics at his company had taken a downward turn in the last year. People were leaving faster than he could hire them and the atmosphere around the office was caustic. Joe felt like he spent his days dealing with people issues instead of running a business. In spite of his best efforts, he was not making headway. Unfortunately, Joe’s story is not unlike that of many small-business owners who find HR issues frustrating and time-consuming. Business owners, often adept in operations but untrained in people management, can feel a lack of
confidence that leaves them guessing as to the best way to lead their teams. Time pressures and the need to expedite business requirements may lead to shortcuts or circumventing the process of relationship building, resulting in something akin to Joe’s experience. The Leadership Flow Leadership flows downward through an organization like a mountain stream. Whether it is good or bad, it streams through every department, work group and individual. Some principles of great leadership never
change. Integrity, consistency, fairness, compassion, vision — these will never be out of vogue. Others have changed significantly in response to ever-evolving technology and workforce demographics. Leadership style must adapt or it will lose relevance and people will be reluctant to follow. Younger workers expect different things than their predecessors did, and leaders must understand what it takes to attract and retain good talent. A common element that keeps younger workers engaged and loyal is a great culture — and leadership has a greater impact on culture than any other factor. An organization with strong leadership has a corporate culture that feels natural and authentic. Open communication at the leadership level means that everyone on the team understands the vision and goals and has input into how these goals can be achieved. Employees feel a strong connection to the organization, have a substantial understanding of how their jobs fit into the big picture and feel that their contributions are valued. Employees are promoted or given growth opportunities according to how their talent matches the job and what they have contributed to the company. They understand that helping coworkers succeed is the best way to get ahead. Corporate values are visible and alive within the organization. People are engaged, collaborative and love coming to work.
A common element that keeps younger workers engaged and loyal is a great culture — and leadership has a greater impact on culture than any other factor. When good leadership is absent, the corporate culture is apathetic at best and toxic at worst. Communication from leaders to employees is meaningless because what employees hear from the company does not align with their experience. This results in rumours, backstabbing, one-upmanship and a lack of trust. Employees have no idea how they fit into the big picture or how important they are in making it happen. Decisions for promotions are based on who can talk the biggest talk or who is currently “favoured” with the leadership team. Corporate values are invisible and employees are jaded. They learn to play dirty against co-workers to get ahead, have no loyalty to each other or the organization and bring frustration, negativity and fatalism to work every day. Joe may not realize that his frustration with constant turnover is causing him to be negative and short-tempered with his staff. He’s clear on his values and communicates them regularly, but when he’s under the gun, he may not always
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Douglas 47
“walk the talk.” Ignoring conflicts has led to flare-ups within the team and poor performance on many levels. Lack of attention to a struggling employee has resulted in potentially costly errors from someone he could usually count on. Joe knows he’s in over his head, but he can’t afford to hire someone to take on HR. It all feels like too much. Top Four Leadership Skills The good news for Joe or anyone in a leader role is that strong, positive leadership can turn a toxic, negative culture into a thriving one. Yes, it takes effort, skill, commitment, communication and persistence, but it can be done. So what are the most important leadership skills you need to develop to make the biggest impact?
1
Authenticity — leading by example There really is no substitute for authenticity. Consistently demonstrating your values and being a role model is powerful. I once worked for a VP who was very verbal about her values and those of the company. But sadly, in this leader’s interactions with employees, the values were far from evident. One of the values was “mistakes are opportunities for learning and growth,” yet when someone made a mistake, the leader would become angry. This left employees disillusioned, unmotivated and fearful of trying new things. In contrast, good leadership focuses on building honest relationships with employees, valuing their input and creating an ethical foundation to guide their actions.
Authentic leaders are positive, truthful and open. They don’t hesitate to jump in and work side by side with their team to get the job done and to demonstrate a positive, supportive attitude. They don’t cover up mistakes or blame others. They embody an organization’s values, demonstrate genuine care for employees and walk with integrity in every aspect of their business. If Joe were honest with his team about some of the areas where they were struggling to meet expectations — including where he had fallen short — he might be surprised to find his team on board with helping to make improvements. Dealing with these issues head-on instead of ignoring them would help him stay on top of his team’s performance and let them know he can be trusted to create a safe, positive workplace.
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Communication — inspiring passion Honest, vibrant, positive and clear communication can energize and engage a team like nothing else. If you communicate your enthusiasm and belief in your vision, your team will follow with the same energy, plus they’ll work toward helping you fulfill your goals with stronger buy-in, co-operation and teamwork. One way to encourage this connection is to help your employees connect with the why of what you are doing. This inspires a team to contribute with enthusiasm because they feel they are important — even necessary — to fulfilling that purpose. Let them know about any changes that will affect them, ask for their input, and engage them in solutions.
“Leadership is not about titles, positions or flowcharts. It is about one life influencing another.” — John C. Maxwell
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3
People building — empowering the team A great culture requires a great team — and a great team requires a great leader. According to a recent McKinsey & Company study of 189,000 people in 81 diverse organizations around the world, being supportive was number one of the four behaviours that accounted for leadership effectiveness (see page 46). Good leaders capitalize on employee strengths and help employees contribute to the organization where they are at their best. They take time to notice and regularly acknowledge good work. Their people know they are valued because they receive regular, meaningful feedback about how they are doing and where they can grow. In a strong culture, there’s room for mistakes. In fact, an environment where employees are not afraid to make mistakes is paramount to a culture of creativity, innovation and growth. When people feel supported, valued and confident, they emulate those things within their teams, reciprocating the support they feel from their leaders.
4
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Leading the Way In terms of leadership, if you did nothing else over the next year but grow the skills I mentioned above, you would see a dramatic and positive change in your team. Remember that metaphor with leadership as a mountain stream? As your authenticity, communication and commitment to supporting your team flow through the levels of your organization, you will find yourself influencing and positively impacting their lives. ■
“If you want your team to push themselves to do their best — for their own growth and for your company — lead by example and walk the talk.”
School of Business
Reaching out — knowing when you need help While growing these leadership skills will help you gain credibility with your team and stabilize some of the negative behaviours creating problems in your organization, there may come a time when you recognize what you are facing is beyond your expertise. Bringing in some HR help from time to time could take off the pressure you feel when you’re out of your depth. In fact, doing so could actually save you time and money and reduce your stress. Joe could hire an HR consultant to assist him with improving his hiring processes, as well as in gaining an understanding as to why his turnover is so high. The money he spends for the knowledge and tools in this area will more than compensate for the time and money he spends by not doing it well.
AL’S BUSINESS TIP FOR SUCCESS
Ingrid Vaughan is the owner and HR Architect at Smart HR in Victoria, specializing in modular, sustainable HR systems, processes and practices. Douglas 49
Tammy Sam and Michelle Morris from Songhees Seafood & Steam truck serve up dishes such as Indian Tacos, traditional West Coast fry bannock bread, and wild BC sockeye salmon burgers to a hungry crowd. Located at the Belleville terminal next to the Victoria Clipper in Victoria’s Inner Harbour, Songhees Seafood & Steam truck offers a modern take on traditional Songhees cuisine.
foodtruck
mania By CINDA CHAVICH
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Jeffrey bosdet/douglas magazine
Street-food culture is thriving in Victoria thanks to the good taste and hard work of more than 60 food-truck businesses. But for anyone who thinks running a food truck is easy, think again. Weather, bylaws and logistics present more than their share of challenges for these mobile entrepreneurs.
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A
t the new Songhees Seafood & Steam truck down at the Victoria Clipper ferry terminal, people are lining up for wild sockeye burgers, bannock and colourful seafood chowder. This latest addition to the city’s growing food-truck scene is a fast-food vendor with a distinctive First Nations feel. The truck fills a unique niche — it’s the only place to find a real Aboriginal-inspired menu in the city and the only First Nations food truck in Canada — and that’s a recipe for success when you’re serving food on the street.
Street Talk Food trucks and carts add a festive atmosphere to outdoor events and city street corners, especially in a tourism-focused town like Victoria. A trend that started as a trickle just five years ago, with 20 city licences issued to mobile vendors, has nearly tripled. Last year, 56 were licensed in Victoria, and by May of 2016, 58 were approved. There’s no disputing the growing popularity of street food, but municipalities continue to struggle to strike a balance between established businesses and the new wave of rolling chefs. While Vancouver allows food trucks to park in designated spots and at parking meters on city streets, and Portland has welcomed food trucks with designated hubs or “pods” for its 600-plus street vendors, Victoria has banned food trucks from city streets and public property, except for special events and festivals.
Mayor Lisa Helps says the City has taken a hands-off approach to the food-truck phenomenon, not giving up street parking to trucks but “not getting in the way” when it comes to vendors making arrangements to set up on private property. And while she says there has been some push and pull on the topic of downtown food vendors from both sides, the dust seems to have settled. Still, with 240 bars, cafés and restaurants in the city centre — 2,530 seats on Government Street alone — competition for downtown diners is fierce. Ken Kelly, outgoing general manager of the Downtown Victoria Business Association (DVBA), says not all restaurants welcome the outdoor food vendors, but he does believe food trucks “create excitement” in the core. “We are the organization that represents the bricks-and-mortar restaurants downtown, so we have to tread a careful course,” says Kelly, “but we also want to be open to as many new elements that add to the vibrancy of our downtown.” To that end, the DVBA recently opened a space for food trucks to park on a rotating basis at the corner of Douglas and Yates, along with new lighting, seating and bright puzzle pieces painted on the street. “We’ve invested in this StART space on Douglas to enhance the feeling of our ‘grand avenue,’” says Kelly. “The response from the food truck community has been very strong.” For now, says Helps, that’s as far as on-street parking will go for food trucks, despite the fact that many operators say relaxing the rules would help their businesses succeed.
Taking it to the Streets Food-truck owners have myriad reasons for choosing the life of a street vendor over a traditional food-service operation. Some like the idea of operating flexible, and seasonal, small businesses. Some are test driving an idea or menu they hope will grow into a bricks-andmortar business. Others are adding a mobile arm to an existing restaurant or food product to expand and market their brand. Running a busy food truck has plenty in common with any food-service operation, but it comes with unique challenges. “Being at events around town is fun, but the logistics of a restaurant are much easier to manage,” says Karrie Hill, a longtime Red Seal chef who launched her own Deadbeetz food truck in 2013. “Maybe you run out of propane and you can’t get a fill. Maybe a tire goes flat, or there’s grease running out of the deep fryer,” she says. “This is a 7-by-12-foot box — it’s hot, there’s never enough refrigeration space, and it has to meet the standards of any restaurant kitchen for health and safety, ventilation, everything.” Hill used a $5,000 loan from the local Community Micro Lending Society to get her first truck on the road. Finding a unique niche, and filling it with a quality product is what keeps customers coming back, says Hill of her popular signature burger that features local grass-fed beef and house-pickled beets. With a permanent space on the Royal BC Museum’s Food Truck Festival patio and a new roaming truck for attending events and festivals, Hill is a committed member of the street-food community, despite the reality that bad weather,
Jo-Ann loro/Douglas magazine
The courtyard at the Royal BC Museum (RBCM) is food-truck central. A pilot project launched by RBCM last year proved popular with the public and successful for food-truck owners. The trucks are here again this summer and fall. Look for Deadbeetz, Pig BBQ Joint, Puerto Vallarta Amigos and The Love Perogy. 52 Douglas
poorly organized events and truck malfunctions can quickly turn a profit into a loss. “I like the small scale and the connection to my customers, but my food costs are 30 to 35 per cent and profit margins are still slim,” Hill says. “It’s just as much hard work and it’s just as much hustle.” Paulina Tokarski agrees. The former owner of the Cook & Pan Polish deli, Tokarski opened her Hungry Rooster perogy truck five years ago and now parks regularly in the Capital Iron parking lot, serving an eclectic lunch menu featuring her mother’s homemade perogies. She understands why restaurants are concerned about competition but says street vendors have plenty of overhead too. “We pay parking fees, licensing fees and thousands of dollars to be at events,” says Tokarski. “I had a restaurant for 14 years — this is more work, and the fees are huge.” While most trucks have a regular parking spot, many also move around to festivals and markets, so they register with StreetFoodApp.com, which is updated daily. Still, Tokarski says she would like to see public spaces where trucks could gather. The Rolling Reef is an example of a bricksand-mortar restaurant expanding into mobile food service. When a used truck became available, Reef Restaurant owner Liz de Mata jumped at the chance to make it her own. “There are so many outdoor events here, and we had lots of experience being off site,” says de Mata. “But having a food truck is so much easier than a booth — it’s a mobile kitchen.” With a small downtown restaurant, de Mata also understands the issues of having a food truck parked outside her door. “I think hubs are a better idea,” she says. “Victoria has a very high per capita restaurant population, so it begs the question of just how many food trucks can afford to operate.”
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Street Smart While opening a food truck might look easy, success is far from guaranteed. According to a report issued last year by the Vancity Credit Union, the lender behind many mobile food operations in Vancouver and Victoria, the average profit for a food truck is just $31,300 and nearly one in three (29 per cent) are losing money. Still, many great restaurants had their start on the street. For Josh Carlsen and Mike Dawson, setting up a Tacofino food truck in Victoria was a stepping stone to their busy taco shop on Fort Street. After three years of serving tacos from a truck, it was time to put down permanent roots. “We had been on the lookout for a bricksand-mortar location from the start, as a huge advantage to being indoors is that the weather
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is less of a factor,” says Dawson. “Business has more than doubled since moving inside.” They’re part of the Tacofino empire — a business that started with a popular food truck that’s still operating in Tofino and now includes two trucks and three restaurants in Vancouver. “Starting as a food truck is beneficial because it has less financial overhead than opening a restaurant,” says Dawson. “Those savings allowed us the freedom to expand. That’s not every food-truck operator’s intention, but it was definitely ours.” Though he’s off the street now, Dawson isn’t concerned about competition from food trucks and says the City could loosen up the parking restrictions to support mobile food vendors. “I would welcome more trucks downtown because there is obvious demand for it,” he says. “If I was worried about food trucks or any other restaurant taking business away from us, I would worry more about what I was doing wrong and improve there firstly before blaming external factors.” Chef Lisa Ahier’s legendary SoBo restaurant in Tofino is another case study for aspiring food truckers. Ahier says she had no intention of building a restaurant, but her winning menu of killer fish tacos and addictive polenta fries proved too popular for her purple bus. “We wanted to be our own boss, stay small, have a life,” says Ahier of the decision to open
a food truck with her husband Artie in 2003. Soon she was winning awards — named one of the top new restaurants in Canada by enRoute magazine in her opening year — and customers were flocking to her busy bus from across the country. “It’s all about numbers in trucks, but when you’re serving 500 a day, and you can’t prep enough food for the people in line, it’s time to expand,” she says. Ahier first added dinners in the nearby Botanical Gardens centre, then opened her own casual restaurant in downtown Tofino in 2007. “I never wanted a restaurant, but I would never go back to a truck,” she says. “A food truck is fun, but it’s also extremely challenging. You have to be extra clean. You need to be very friendly with your neighbours and staff. When I’m at work for 12 hours a day, seven days a week, I need space, room to breathe.” To critics who complain that a roaming kitchen amounts to an unfair advantage in a tough business, Ahier says there’s room for everyone. “When I opened the food truck, some people said, ‘that’s not fair,’ but I was paying rent, I was paying for electric and water, paying my licences and all of my taxes. My overhead was a lot less, but they were providing a lot less to me too.” When municipalities provide centralized
hubs for food trucks “it can be good for everyone,” she adds, luring food-focused visitors who come to eat, and stay longer. “Whether you’re a food truck or a restaurant, the strong will survive,” Ahier says. “So do great food and people will come to your place.”
Moveable Feasts Back at the colourful First Nations-themed truck in Victoria, bison “Indian tacos,” sockeye salmon salads and fluffy bannock with blackberry jam are flying out the window. Mark Salter, the Songhees Nation’s marketing coordinator, says the food truck makes a cultural connection with the community and provides a training ground for aspiring Aboriginal chefs. The goal is to offer a creative First Nations menu at the new LEED-certified Songhees Wellness Centre too. Food trucks can be profitable, says Ahier, but you need to know what you’re getting into, from regulations to health permits. “It’s not just going down to Clover Point, swinging the window open and slinging hash,” adds Hill. “If you’re willing to work hard, you can make a living.” And it’s likely we’ll see more street chefs doing just that in the future. “We’re getting a reputation as a very foodcentric city,” says Mayor Helps. “Food trucks are part of the food ecosystem.” ■
Vancouver Island
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Location: Vancouver Island Motorsport Circuit 4063 Cowichan Valley Hwy, Cowichan, BC V9L 6K4
For more information, visit www.motorgathering.com 54 MG-douglas-7.5x4.7-half-horizontal-2016.indd Douglas
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INTEL
[business intelligence ]
56 Entrepreneur
Is Your Business Ready to Franchise?
58 Sales And marketing Learning to Love Objections
60 Money
Time is Running Out for an Important Tax-Saving Tool
Derek Ford
Superbath, a 2015 Douglas 10 to Watch Award winner, is focusing on Vancouver Island for its initial franchising growth, so it can more easily support franchisees. Co-owner Adam Kittredge says the company currently has a couple of candidates in the approval process.
ENTREPRENEUR by angela Coté
Is Your Business Ready to Franchise? Is franchising the best strategy when it comes to expanding your business? A franchise expert looks at the pros and cons to help you make the best business decision.
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F
ranchising is often the go-to strategy used by small-business owners looking for strategic growth of their brand. With so many exciting new businesses and energetic entrepreneurs on Vancouver Island, it’s no wonder the term “franchising” comes up frequently at business networking events when discussing business growth. However, there seems to be a misconception out there about what exactly a franchise is. Just because a company has multiple locations or possibly spans a large geographic region does not mean it is a franchise. For example, Tim Hortons is a franchise, and Starbucks is not. In a corporation like Starbucks, the company hires managers to run the business in its various locations. In a franchise like Tim Hortons, local business
owners are awarded the rights to use the brand and operating system in exchange for a percentage of the overall sales. Having been a local franchisee of two M&M Food Market locations (formerly M&M Meat Shops) on Vancouver Island since 2000, I have experienced first-hand the benefit of running a business with a strong brand, a proven operational system and ongoing support from the corporate head office. Before becoming a franchisee, I was involved in the development and growth of M&M Food Market across the country and learned a lot about the ins and outs of franchising a business. Before any business should consider expanding via the franchising model, it is essential to understand what franchising actually is. So let’s dig a little deeper into what franchising is, and then we can take
a look at the benefits of this organic growth strategy and the criteria that make franchising a good fit for a business. What is Franchising? Franchising is all about growing a business by finding local partners to run the business exactly how you prescribe it should be run, in markets where you want your brand to be. Franchisees pay you a monthly fee called a royalty, usually about six per cent of their overall sales, to use your brand, which includes the name and operational systems of your business. The franchisee’s initial investment includes a “franchise fee” that covers your portion of the cost to get their business up and running. The franchisee is ultimately responsible for the success of their business, but you provide ongoing support, usually in the form of business coaching, marketing, training and even some emotional rescue at times! The Benefits of Franchising So why not just expand corporately, have full ownership in other markets and hire managers to run your satellite businesses? Well, that is an option, but let’s take a look at the benefits of franchising.
›
Leveraging the Capital and Time Investment: This is one of the biggest benefits of franchising. Instead of having to come up with expansion capital, it is the franchisee who invests his or her money and time to get a replica of your business up and running in another market, thereby growing the brand and those royalties we talked about above.
›
Partners with “Skin in the Game”: Why not just start up a replica of your business in another market and hire a manager so that 100 per cent of profits come directly back to you? Sounds great in theory, but a manager is less likely to invest his or her heart and soul in the business to make it the best it can be, so you may be missing out on overall brand success. A franchisee often has invested his or her life savings and has the intrinsic motivation to make the business a success.
› Local Connections: A franchisee living in the same community where he or she is doing business can get involved in local events and can establish community connections with local businesses, media and organizations. That’s hard for you to do from a distance. And partners (franchisees) with local connections can grow the
business beyond what a local salaried manager would be capable of because they are more likely to put in the extra time and energy needed.
›
Exponential Idea Generation: We’ve all heard that “two heads are better than one.” Well, imagine the creative ideas generated from a team of committed “business heads” i.e., franchisees. Bring together these local franchisees who have skin in the game, and just watch the benefits of creative brainstorming that can lead to an even better brand. A Few Caveats With all these benefits, it’s no wonder franchising is a popular strategy for growth. However, as we often hear from Jim Treliving, resident franchise expert on CBC’s Dragons’ Den, not every business is cut out for the franchising model. In order for a business to be “franchisable,” it must meet the following key criteria: It Must Be Profitable
There are two parts to this. First, before a business can be franchised, it must have a solid foundation. This is Business 101! That means revenue minus expenses needs to equal profit. Simple as that. Second, when you factor in the initial franchise fee and ongoing royalties that franchisees will have to pay, is it still profitable? The franchisee will only consider buying in if he or she can see that there is proven return on Franchising A business investment for the individual growth strategy in which a franchise unit. company grants licences to carefully selected It Must Be Unique franchisee partners to use Here’s more Business 101 its trademarks, brand and operating system. for you. Back when I was in school, we used to talk about Franchisor The company a “competitive edge.” Now that owns the trademarks we talk about a business’s for a brand but awards “unique selling proposition.” partners (franchisees) in local markets the rights to Same thing. What makes operate a business using your business different from the trademarks, brand and the others out there? This is operating system for an important, because once your agreed-upon fee (royalty). business starts expanding, Franchisee A person more people will be tempted or entity that is awarded to copy your concept. This the rights to operate a might mean you have a unique chosen franchise brand business, the only one in in a particular market. Sometimes also referred to the country or even world, as “franchise partner.” or it might mean you have something unique about your Royalties An ongoing business. fee (usually a percentage of sales) paid from It could be as simple as the franchisee to the having highly trained and franchisor to use the brand knowledgeable employees trademarks, operating or as complex as being system and proprietary knowledge. first-to-market with unique Douglas 57
technology. An example of a local business that is having success for being first-to-market is the new Float House in Victoria, which offers floatation therapy as a means of stress relief and relaxation. You Must Be Able to Replicate It
Whether we’re talking about a retail concept like Jusu Bar, a fast-food restaurant like Big Wheel Burger, a mobile service like Superbath Mobile Car Wash or even an on-the-go fitness business, your model needs to be easily replicated. For example, if customers are
patronizing your café because they like to visit you and support you, then what will happen when you are not a part of the equation? Would it work if you could find franchisees with similar personality traits? And what about that unique location? Can comparable unique locations be found in other markets at comparable costs? These are all very important points to consider.
has taught me a lot about franchising. It is an exciting growth strategy, but it is critical to do adequate due diligence to determine whether franchising is a fit for your business model and expansion plans. Being a franchisee can be very rewarding but also requires a lot of due diligence to ensure you are entering into a franchise company that is a fit for you and your lifestyle. ■
Diligence and Determination Having spent many years on both the franchisor AND franchisee side in business
Angela Coté is a business growth and franchise specialist in Victoria. She is a franchise partner of two local M&M Food Markets (formerly M&M Meat Shops).
sales and marketing by mike wicks
Learning to Love Objections One thing salespeople hate is hearing the word “but” — it means the prospect has an issue, and that’s the last thing we want, isn’t it? Actually, no; it’s exactly what we want to hear. Objections are beautiful, and we should learn to embrace them.
O
ne way or another I’ve been in sales my entire career. I’ve done my time in the field, I’ve managed sales teams, and as a company owner I’m constantly selling. The most common reason I’ve seen for salespeople not to be able to close a sale is that they don’t know how to handle objections. Worse, they actively avoid dealing with them. I call these salespeople “politicians.” When asked a difficult question or faced with an objection, they ignore it and carry on with their pitch. Why the heck should we love objections? Objections exist whether we like them or not. As long as your prospect is harbouring an objection, you are unlikely to get the sale. However, if you overcome every objection, the sale should be yours every time. If you don’t manage to convert a prospect into a customer, I guarantee there’s a hidden objection. It may well have been something that genuinely prevented them from buying, but it was just as likely an issue that you could have overcome given the opportunity. Even though I suggest you learn to love objections, it doesn’t do any harm to reduce the number of them prior to meeting the prospect. I’m a great believer in qualifying my prospects so that I only spend time selling to people who need and want what I’m selling, have the authority to make the purchasing decision, and can afford to make the purchase. If those few criteria are met, I have a better chance of overcoming other objections. The most successful salespeople I’ve met are those who not only skillfully answer the objections lobbed at them, but actually search for them. These highperforming sales professionals seek out objections, leaving nothing to chance. Why do people raise objections? The reason people raise objections can be as simple as a genuine need for further information. Sometimes, however, it can be more psychological. Many people
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All Objections Are Not Equal Real Objections Real objections are true issues your prospect has, such as “I was expecting more for the money.” Accidental Objections These occur when there is a misunderstanding — for instance, if a prospect believes they have to sign a long-term agreement when that is actually not the case. False Objections These trip off the tongue easily — “I can’t afford it” or “I’m just looking” — and they hide real objections. Hidden Objections Unspoken, these are the hardest to deal with and can stop a sale in its tracks.
seek validation; they are leaning toward buying, but they need some assurance — they actually want you to convince them they are making the correct decision. Then there are those who simply need to barter; it’s in their genes. For them, negotiation is an important part of the buying process and can’t be hurried — they need to feel they’ve got a bargain. Others simply want to make the salesperson work hard for the sale, or perhaps just prove their superior knowledge. I always try to identify whether I’m dealing with an analytical, driven, expressive or amiable type of person when selling. This allows me to tailor how I handle each objection. Analytics, for instance, look for technical details. Drivers tend to raise objections around efficiency and return on investment. Expressive individuals need to like you and need assurance that other people they respect have purchased the same thing. Finally, amiables tend to hide objections surrounding trust, their own uncertainty and their need for guarantees and support. All Objections are not Equal There are four different categories of objections: real, accidental, false and hidden. Knowing which type you are dealing with can help you handle them more effectively. The key is to actively listen to the prospect so you fully understand and identify each objection. Only then can you start to overcome them. Real objections such as “I don’t like the colour” or “I’ve read this model is unreliable” should be relatively straightforward to overcome. Accidental objections arise when the prospect jumps to an incorrect conclusion or mishears something. In this case, never tell them they are wrong; simply backtrack your presentation to where the misunderstanding occurred and re-emphasize the point.
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Listening allows you to…
Truly understand each objection Discover the real objection Demonstrate that you understand your prospect and his or her objection Show you care about finding a way to satisfy your prospect’s needs
False objections are common and are almost always untrue, such as when someone says, “It’s too expensive.” They trip off the tongue easily in the same way “I’m just looking” does. One of my favourite counter questions to the former is, “By how much is too expensive?” Expose false objections (nicely) so your prospect is compelled to offer up his or her real objection. Hidden objections result in stalled sales encounters. They are the biggest reason you need to love objections enough to dig for them. Ask questions such as “Am I correct in sensing you have some reservations?” or “Do you see any downsides to this product/service?” It’s important to give your prospect permission to open up to you; only then can you discover and deal with the real objections. You can overcome real objections, most of the time Hopefully, after reading this, you will start to expose all
sorts of objections and in the process be left with only genuine objections that bar the way to a sale. Dealing with those real objections is where the skill in selling really kicks in, so you need a plan. Make a list of all the real objections you’ve heard in the past and ask your team to brainstorm some that they’ve heard. Sit down, preferably with your sales colleagues, and figure out how you will deal with each specific objection the next time it arises. If you or your sales team are facing the same objection regularly, it may be alerting you to a potential problem closer to home. Never rule out changing something about your product or service if you find that a significant percentage of prospects raise the same objection. Don’t be a politician, listen hard, see things from your prospect’s perspective, and embrace those objections. Therein lies the path to true love between your prospect and what you are selling. ■ Mike Wicks is an award-winning author, blogger, ghostwriter and publisher.
CDA Credit before and after Male, age 50, non-smoker $5 million — Level cost universal life
by Steve Bokor, CFA, and Ian David Clark, CFP
Time Is Running Out for an Important Tax-Saving Tool Heads up, business owners. New tax rules for life-insurance policies are coming as soon as the calendar clicks from 2016 to 2017. What you do now can protect your estate.
D
id you know that one of the last remaining tools available to draw money out of a corporation tax-free will be severely impacted as of January 1, 2017, with the introduction of new tax rules for lifeinsurance policies? That’s right. The Canada Revenue Agency (CRA) has determined that the tax benefits of life-insurance policies are too generous to business owners with corporations. So the CRA is changing the rules, and those new rules will have a significant impact on estate planning for those using life insurance to pass on tax-free capital out of a corporation to designated heirs. What’s Really Happening? The federal government hasn’t updated its legislation regarding the tax treatment of life-insurance policies for business owners 60 Douglas
Credit to Capital Dividend Accounts
money
$5 million -$825,000
$4.5 million
Approximate increase in income tax fees
$4 million ■ Today
$3.5 million
■ post 2016
Maximum difference at age 73
$3 million $2.5 million 50
55
60
65
70
75
80
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90
Age
since 1982, so we’ve had years of a relatively favourable attitude on the part of the feds toward the taxation issue. But a lot has changed in 35 years. Canadians are living longer, so the CRA is now using new longevity tables. The result is that, beginning in 2017, the CRA plans to limit the amount of tax-free distributions out of a corporation after it receives the death benefit proceeds of a life-insurance policy. Essentially, the CRA is collecting a higher level of tax when the funds are removed from the corporation. So let’s look at the current way things work. Then we’ll explore how you can avoid some of the problems inherent in the CRA’s upcoming rule changes. Right now, if a business owner invests retained earnings in stocks or bonds, the realized income is taxed at the highest marginal rate inside the corporation. Upon the
business owner’s death, any funds withdrawn from the corporation as a dividend are also taxed, essentially resulting in double taxation. However, if the business owner were to invest his/her excess cash in a permanent corporate life-insurance policy, those deposits would grow tax-free inside the policy. Then, when the business owner died, certain proceeds from the life-insurance policy could be distributed out of the corporation tax-free through the Capital Dividend Account (CDA). The CDA is a notional tax account that accrues tax-free credits earned by the corporation each calendar year. Those accrued credits help to reduce the double taxation problem faced by corporations. This allows private companies to make tax-free distributions to their shareholders. Sounds reasonable, doesn’t it? Unfortunately, when the CRA’s new rules
come into effect in 2017, it will dramatically reduce the credits available to shareholders holding permanent life-insurance policies. A Case Study One of our clients, Hugh, 50, has operated and grown a very successful plumbing and draincleaning business for over 25 years. Like many businesses, Hugh’s is incorporated. Many businesses choose to incorporate so they can operate more effectively tax-wise and protect their personal financial interests, giving them several advantages over sole proprietorships and partnerships. Hugh plans to sell his business in the near future for about $5 million. With the help of his accountant and lawyer, the net proceeds will end up going into one of Hugh’s holding companies. Properly structured, the proceeds will provide Hugh and his wife with a very secure stream of retirement income. In addition, there should be a sizable pool of capital remaining upon his death. But is there anything else Hugh can do to meet his future income needs and allow him to maximize the value of his estate in the most tax-effective way? When Hugh came to us to create an investment portfolio, he had a $5-million term life-insurance policy. We have recommended that he transfer the policy to his corporation
and convert the term policy into a permanentlife policy. What that means is that upon Hugh’s death, his corporation will receive a tax-free benefit — and a very substantial amount of these funds can be paid out to his wife as a surviving shareholder through the Capital Dividend Account, tax-free. Now, if Hugh were to keep his term policy personally, he would have to continue to pay premiums with after-tax dollars. This would eat into the retirement income coming out of the corporation. Furthermore, upon Hugh’s death, the assets inside the corporation would be distributed to his beneficiaries at a substantially higher tax rate. In fact, Hugh’s shareholder beneficiaries could end up paying up to an additional $825,000 in income taxes. Taking Effective Action, in Time Obviously, there was a significant amount at stake for Hugh and his wife, and for the beneficiaries, so it was important to act urgently to put this financial-planning manoeuvre into effect and to complete the process before December 31, 2016, before the new tax rules come into effect. In order to take advantage of this before the year-end deadlines, there are a few ways you may consider proceeding, depending on your situation.
If you already own a corporate-held permanent life-insurance policy, then you are automatically grandfathered under the old taxadvantaged rules. If you own a term-life policy within a corporation, then you may be eligible to easily convert that term policy to a permanent plan provided this is completed by the end of 2016. (Be aware that CRA requires that the policy be fully in force and dated prior to January 1, 2017. ) If you personally own a term policy or a permanent contract and are looking to move that contract into a corporation to take advantage of the grandfathering rules, you have until the end of 2016 to complete this transfer. It is essential that you consult a qualified tax adviser and insurance specialist to ensure that all necessary guidelines are adhered to. If you do not have a corporately owned insurance policy, you would be wise to consult an insurance specialist to take advantage of the existing tax rules immediately. So keep an eye on the calendar so you meet the critical end-of-year deadline to ensure you have more control over your income needs in retirement and the value of your estate. ■ Steve Bokor, CFA, is a licensed portfolio manager and Ian David Clark is a certified financial planner with PI Financial Corp. a member of CIPF.
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Last Page
Jake Farmer
A Guatemalan man is fitted with a 3D-printed prosthetic by Josh Coutts (far left) and Nick Dechev (centre) of the Victoria Hand Project, and Patrick Mathay of Range of Motion.
Giving The World A Hand by Anneke feuermann
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Training Guatemalan healthcare providers to 3D-print prosthetic hands using the latest 3D-printing and 3D-scanning equipment is one of the challenges faced by the team at Victoria Hand Project (VHP), winner of the 2016 VIATEC Technology Award for Creative Excellence, as they work to provide amputees in developing countries with low-cost, upper-limb prosthetics. It began in the late 90s when Nick Dechev, associate professor of biomedical engineering at UVic, noticed Canadian clinics had been giving out the same basic prosthetics since the late 60s. He decided to create a new design. The only problem? It was phenomenally expensive to make and buy. Thirteen years later, Dechev and Josh Coutts, then a UVic undergrad
in engineering, set out to 3D print an exact duplicate of the old model — and it worked. “I didn’t think 3D printing was ready for this type of technology,” says Dechev, who is director on the board of VHP along with Coutts. “I was surprised by how strong [the prosthetic] was.” After refining their model for 3D printing, VHP applied to Grand Challenges Canada and received an $112,000 grant that became the catalyst for them to go to developing countries to assist amputees. Today, VHP works with not-forprofits in Cambodia, Guatemala, Haiti, Nepal and Ecuador to set up 3D-print centres, equip them with tools to make prosthetics, and to employ and train fulltime technicians from local
communities. VHP’s goal is to ignite the process and assist local charities so they can carry on independently. VHP’s success stories have been many, from creating a prosthetic for a victim of domestic violence in Guatemala to helping a Cambodian who had lost his arm in a land-mine incident. The prosthetic meant he could return to work as a light labourer. “We fit a boy down in Guatemala who had lost his hand in a motor vehicle accident,” recalls Coutts. “He had a secondhand prosthetic that didn’t function, so we gave him a new one. We [later] learned he had been hired at an office job where he could use the prosthetic to work.” VHP now plans to expand its concept to Egypt and Bolivia. ■
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