Vol. 4, Issue 4 September/October 2012
Centrallia 2012: Networking from the Centre
365 Technologies Inc taking the lead The Chinese Approach to Managing Human Resources The official publication of The Winnipeg Chamber of Commerce, in partnership with the Asper School of Business
PM40787580
also inside:
More More collaboration. collaboration.
Our team of lawyers, paralegals, and Our teamstaff, of lawyers, and support from 20paralegals, different practice support staff, from to 20meet different areas, collaborate all ofpractice your areas, collaborate meet all more, of your legal needs. Whentoyou want legal needs. When you want more, look to Fillmore Riley. look to Fillmore Riley. Fillmore Riley. Decisive. Direct. That’s
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barristers, solicitors and tradeMark agents
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barristers, solicitors and tradeMark agents
Contents
Fall
Cover story
Centrallia 2012: Networking from the Centre
10
4 From the publishers
UP FRONT 5 MB Biz Report
Manitoba business movers and shakers
Columns and Features
Technology
Small
Business Week
16 TiME TO CELEBRATE Human
Resources
18 The Chinese Approach to Managing Human Resources
Inc taking the lead
Cover
10 Centrallia 2012: Networking from the Centre
Trailblazers
22 A Jack of All Trades
AND STRATEGIZE
6 365 Technologies
Legal
20 Drinking + Driving = Dismissal
BACK PAGE 25 At the Desk of...
hristine Alongi, Director C of Communications & Public Affairs, Winnipeg Airports Authority Inc.
ONLINE All of our magazine content and more is available online at
www.marketplacemagazine.ca.
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From the publishers...
It’s not all that often that Winnipeg is the showcase location for an international trade event. Thanks to Centrallia 2012, businesses from around the globe have the unique opportunity to meet and build relationships with other companies that are truly worthwhile. With the global economy so important to business today, there is a continued need to expand our network of business partners. Having such a great opportunity to meet and discuss technologies, innovation and future direction in a focused business environment can reduce the business cycle and eliminate many of the risks of breaking into a new market. As any business person will tell you, face-toface meetings with potential business partners are always the best way to develop relationships. You can find common ground both personally and professionally that just don’t happen over email and Skype. Centrallia is such a great way to develop the relationships that can help companies expand, and those taking part will no doubt have the success that we look forward to highlighting in future issues of Marketplace.
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Immediately following Centrallia is Small Business Week (Oct 14-20). This is the opportunity to focus on those businesses that are responsible for much of the job growth in an economy - especially during challenging times. It is small businesses that have to innovate, use new technology to increase efficiency and continue to look for ways to grow. These small businesses need support in terms of capital, mentoring, and more in order to really capitalize on the opportunities that come their way. We’ve all heard of the ‘valley-of-death’ that many small businesses go through on their way to success and as a business community – it’s important to help get as many companies as possible through this stage. Too many small businesses have opportunities that they can’t take advantage of because of lack of financing or lack of experience, and we need to continue to highlight these companies in hopes of making the connections they need to see the success they are working to achieve. In order to continue to see our city and province expand into the new economic realities of today, we have to foster small business growth and businesses that export goods and services. Through Centrallia and Small Business Week, we are looking forward to the success stories that will follow and benefit everyone - from those seeking higher employment to the government agencies that receive the new tax revenues that can be deployed throughout the community.
Vol. 4, Issue 4 • September/October 2012 Studio Publications is a division of Studio Media Group. Editor Alison Mintenko editor@mediaedgepublishing.com creative design James T. Mitchell Contributors Rebeca Kwropatwa, Kelly Gray, Gloria Taylor, Peter Cappelli, Tony Fang, Steven Z. Raber, Cristopher Grant, Chronic Creative Published in collaboration with:
PUBLISHED BY
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Senior Vice President MediaEdge Publishing Inc. Robert Thompson robertt@mediaedge.ca President Studio Media Group Glenn Tinley glenn@studiomediagroup.com MediaEdge Publishing Inc. Branch Manager Nancie Privé nanciep@mediaedgepublishing.com Sales ExecutiveS Barb Pettitt barbp@mediaedgepublishing.com 204-510-9192 Kari Morgan karim@mediaedgepublishing.com 204-480-4426 Nolan Ackman nolana@mediaedgepublishing.com 204-480-4416 Steve Beauchamp steveb@mediaedgepublishing.com 204-480-4428 Web Designer Caleb MacDonald For inquiries contact MediaEdge Publishing Inc. 531 Marion Street Winnipeg, MB R2J 0J9 (204) 480-4400 Fax: (204) 480-4420 Please return undeliverables to the address above Publication Mail Agreement 40787580 All rights reserved. The contents of this publication may not be reproduced by any means, in whole or in part, without the prior written consent of MediaEdge Publishing. Articles and information in this magazine represent the opinions of the writers and the information that, to the best of our knowledge, was accurate at the time of writing. Users of any information contained in Marketplace are encouraged to validate that information by independent means.
To preserve the editorial integrity of our magazines, Studio Publications follows strict editorial guidelines based on those set out by the Canadian Society of Magazine Editors. To read more on these guidelines, go to www.magazinescanada.ca, the website of Magazines Canada and head to the Advertising—Editorial Guidelines link under Advertising.
September/October 2012
Information and announcements from businesses in our province
Fillmore Riley Welcomes New Associate Survey Indicates that Leadership Development Fillmore Riley LLP is pleased to announce that James Wishart has joined the firm as an associate. James will practise primarily in the Will Help Organizations areas of commercial and corporate law with particular emphasis on procurement, construction and infrastructure projects. Meet Current Challenges New Product Launch: The Personal Medical Response AAA Alarms, a wholly-owned subsidiary of Manitoba Telecom Services Inc., has been celebrating 50 years of protecting people's homes, families, and businesses. If you are concerned about a loved one, a friend, or anyone who is living alone, or may need assistance in an emergency, the new Life Sentry Personal Medical Response Service offers peace of mind. The 24/7/365 monitoring station located locally in Winnipeg answers emergency calls and keeps the caller online accompanied until 911 operator is connected. http://www.aaaalarms.ca
The Eureka Project Wine & Cheese Event Smart Assets – Ownership of Intellectual Property Presented by Silvia de Sousa, Thompson Dorfman Sweatman LLP and co-hosted by Mike Williams, Ade & Company, please join us Thursday, October 4, 2012 from 5:00-7:00 p.m. RSVP by Friday, Sept. 28, 2012 to Wanda at 204-262-6400 or info@ eurekaproject.ca
All sessions will be held at the CGA Association Building at 4 Donald Street South.
In a 2012 QNET survey of Manitoba organizations, 60 per cent of respondents indicated that Leadership Training and Development would help them meet the current challenges their organizations face, and 77 per cent of respondents were interested in increasing their leadership knowledge and abilities.
Wednesday, October 10, 2012 5:30 p.m. - 6:30 p.m.
QNET has announced Certificate in Leadership Development program dates:
Tuesday, October 23, 2012 5:30 p.m. - 6:30 p.m.
• F all 2012 - Wednesdays, November 6 to December 18
Monday, November 5, 2012 5:30 p.m. - 6:30 p.m.
•W inter 2013 - Mondays, January 28 to March 18
CGA General Information Sessions
• Spring 2013 - Tuesdays, May 7 to June 18
Congratulations and Thanks
• L ocation: QNET Training Room – Suite 660, 175 Hargrave Street
The partners and staff of Thompson Dorfman Sweatman LLP (TDS Law) congratulate Brandi Field, Karolina M. Dec and Trish Goulet on their Call to the Manitoba Bar and welcome each of them as new associate lawyers at TDS Law. Lisa J. Stiver with TDS Law is the only Manitoba lawyer to be listed on the “Lawyers to Watch” list in the June, 2012 edition of LEXPERT’S Guide to the Leading US/Canada Cross-Border Corporate Lawyers in Canada. As TDS Law celebrates our 125th anniversary, we wanted to take this opportunity to thank our clients and the community that we serve. Without you, we wouldn't have become one of Manitoba's trusted names in law. Learn about our history at tdslaw.com/125.
Manitoba Lotteries Still at the Top for Budget Practices Manitoba Lotteries has received the Distinguished Budget Presentation Award for again meeting the criteria for exemplary budget presentation for its annual budget for the 2011/2012 fiscal year. Manitoba Lotteries is the only entity in Manitoba and the only gaming organization in North America to earn the Government Finance Officers Association of the United States and Canada (GFOA) recognition this year. It is uncommon for a Crown Corporation to receive this status.
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At 365 Technologies Inc, company CEO and President Michael Anderson said, “We believe our clients don’t have technology problems. We do. Our client relationships are distinguished by our ability to remove the burden of technology management.”
was prevalent in the United States, it hadn’t been widely adopted here.”
Born and raised in Winnipeg and a graduate of the I.H. Asper School of Business (with a B. Comm. Hons. [in 2000] and an MBA [in 2007] ), Anderson has always had a passion for technology and for how it supports businesses through improved process management and access to information.
“We went from 0-600 seats under management in under two years of sales,” said Anderson. “As well, our employee count has increased from two (April 2010) to eight (currently). Now growing rapidly, in 2012 YTD, our managed services business is up 65 per cent.”
In early 2010, Anderson began working with Al Koop (owner of 4L Communications) and Len Andrusiak (formerly of SeerX Technologies) to develop a new IT services company.
What is especially unique about 365’s service offering is that it is done at a full-fixed fee. “Our managed services clients pay a flat rate each month based on the size of their network (workstations and servers), and all of their technology management and support is included,” explained Anderson.
“We looked at how small- and mediumsized businesses in Winnipeg were getting support for their technology, and saw an opportunity to do something different,” said Anderson. “While the managed services model of support
In April 2010, the company became incorporated, focusing on developing service offerings for the next few months and starting up sales in September.
“This goes against a traditional, billablehours model, where the support vendor profits from their clients problems. At
365, our profitability depends on our ability to keep our clients’ networks stable and performing, and deliver our service as efficiently as possible.” This approach provides clients foreseeable technology support costs, aligns the company’s goals with its clients, and shifts the performance-risk factor back to the vendor. In this way, Anderson said, “We truly become our clients’ outsourced IT department. “Most companies we work with couldn’t at first justify having a fulltime IT person, yet, as a managed services client, they get access to a full team of technicians for a fraction of the cost.” The company’s clients include those from various industries – from engineering to accounting, nonprofits, construction, and more. Something else 365 provides to its clients is a “My CIO” (Chief Information Officer) who meets with their ownership quarterly to review business objectives, assist with budgeting, and make strategic technology recommendations. Recently, 365 was a finalist for the Spirit of Winnipeg Awards (being held Friday, March 2 at the Fairmont Winnipeg). Of this, Anderson said, “Local businesses and entrepreneurs are developing innovative solutions to problems, and driving up our local economy. For us, as a new company, the introduction of a Start-Up category in the awards was a great way to get our story told and give our business some exposure.” The vision of 365 is to raise the standard of small business technology management by delivering enterpriseclass support and solutions to smalland medium-sized businesses. The company sees itself as a trusted business partner and technology expert, delivering worry-free ITTM, freeing up its clients to focus on their business. “We define innovation for our organization in two ways, through creativity and efficiency,” said Anderson. “At 365, innovation is not an occurrence. It’s an attitude and approach that underlies every aspect of our business. Our intentionally flat organizational structure and open team environment foster a collaborative approach to problem solving.”
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Electronic Payments are Replacing Cheques around the World Electronic Payments Improve Productivity In most European countries, cheques are now rarely used by either individuals or businesses. In Germany, Austria, the Netherlands, Belgium, and Scandinavia, cheques have almost completely vanished in favour of direct bank transfers and electronic payments. In January 2012, the Task Force for the Canadian Payments System Review made recommendations to the Canadian government to implement steps that would pave the way for a much more innovative payment system that would save up to 2% of GDP annually. To stay competitive Canada cannot overlook savings of this magnitude. In a recent decision, the Canadian government, the biggest cheque user in Canada,
Top Features Required by Businesses Paying Bills 1) Pay all business expenses electronically—one system to pay suppliers, CRA, employees and international payments.
will phase out cheques. As of 2016, it will focus on direct deposit for payments. But these are mainly payments to individuals. Financial executives say they are interested in electronic payments because they provide many benefits, including convenience, improved cash flow and reduced cost. But they are not quick to adapt to just any solution. Business needs are significantly more complex than those of individuals. The major challenges are the availability and quality of the information sent with the payment, the ability to pay any supplier with or without bank information, and the integration with accounting systems, as well as numerous other issues specific to B2B payments.
Paying Electronically Saves Time and Money A quick look at costs indicates why: Cheque Bank charges per cheque
$0.90
Cheque form
$0.20
Postage cost per mailing
$0.63
Envelope
$0.10
3) Remote payment authorization–approve payments while away from the office.
Signing, assembly and mailing
$0.50
4) Strong controls and clear audit trail– maintain or enhance existing financial controls.
Total/Payment
$2.58
Telpay
$0.50
2) Single or dual authorization– just like your cheque.
5) Integration with existing accounting system – eliminates double entry or possible keying errors.
Direct deposit
Receiving Payments Electronically Also Saves Time and Money The company receiving payments have requirements also. They do not want a single deposit for every payment which then must be reconciled with a fax or email that tells them what the payment covers. They need a consolidated report of all payments for the day or week and a deposit to their bank account that corresponds to the report. If they are a large volume biller they will want the payment information in a file that can be fed directly into their accounts receivable system. And they must have accurate information. All this is provided by a payment consolidation process that brings together payments from many sources and presents them in a manner the company can process to the correct accounts.
Top Features Required by Business to Receive Electronic Payments 1) Consolidated reports on a daily or weekly basis of payments made by their customers. 2) A consolidated deposit of the payments reported. 3) Accurate payment information that ensures the right account will be credited. 4) As volumes warrant, reporting will be provided that will permit direct import of payment information into their accounts receivable system. 5) The ability to change their bank account by advising one consolidation service provider rather than each and every customer.
Telpay is Canada’s Only All-in-One Integrated Electronic Business Payment System Telpay Has the Payment Solution for Business
How Telpay for Business Works
With Telpay for Business you can pay 100% of your invoices electronically, including suppliers, CRA remittances, payroll and international payments. It includes a complete accounts payable system with a journal entry for accounting entries or can integrate easily into existing payable and payroll software, making it simple to switch from cheques to electronic payments. Using Telpay you do not have to collect banking information. If you don’t have your supplier’s bank account information, Telpay will get it for you. Telpay is quick and easy to set up and allows you to make all your payments electronically using one simple system. This saves bank fees and simplifies bank reconciliations. Already used by over 6,000 businesses all across Canada, Telpay currently processes an average of 48,000 transactions daily, totalling approximately $43 million.
Once your online application is received and approved, you simply download the Telpay for Business software. Completing the system set-up should take 15-30 minutes. Enter your payment information directly into the Telpay system or import bill payments or payroll payments from your accounting/ payroll system. Have your signing officer(s) approve the payments report by entering their passwords. (An important feature allows signing officers to approve payments by secure email while they are away from the office.) Once payments are approved, transmit the payment instructions to Telpay. With Telpay for Business a “print cheque” button is replaced with a “send payments” button.
Telpay’s features expand beyond sending and receiving payments. Stringent control over payments include multiple authorization, remote authorization, backup, handling of funds through a trust account to cover payments, confirmation of payments and so on. Clearly the Telpay option (approximately 50¢ per payment) is already a smarter, easier, safer and better alternative to cheques. Telpay for Business is more cost effective and time efficient than processing and reconciling cheques. In challenging economic times, as business drives to improve the bottom line, switching to electronic payments makes cents.
For supplier payments, Telpay will remit payments to your suppliers by making a deposit to their bank account and will automatically send the payment details by email, fax, or efile. If we do not already have your supplier’s bank account information Telpay will request it or send your supplier a cheque, with your company and payment information on the stub of the cheque.
“We like the fact that we can pay anyone electronically without having to worry about gathering our suppliers’ banking information, setting it all up, and worrying about upkeep and management of their information. Telpay has saved us a lot of time and money and it has allowed us to keep our accounting personnel and cost to a minimum. I don’t see any alternative to Telpay.”
Lori Baker Controller McNally Robinson
When you begin using Telpay, you will receive free setup and training sessions. We ensure your transition from cheques to electronic payments is easy. You are never on your own. Telpay representatives are with you from setup to payment processing and thereafter, whenever you need us.
About Telpay Telpay Incorporated has provided electronic bill payment services to individuals, financial institutions and businesses since 1985. Recently it has developed a service called Telpay for Business that successfully addresses the problems that have held back B2B payments. Developed by accountants for accountants, it lets any business replace its cheque process with a complete electronic payment solution. Years of experience have taught Telpay what billers and bill payers need in order to successfully replace cheques with a viable electronic system.
To Contact Telpay Visit Telpay.ca/easier Call 1.800.665.0302 Email sales@telpay.ca
[ COVER [
Networking from the Centre Centrallia 2012 will be the most influential, unique international business-to-business networking opportunity in Canada this year By Kelly Gray In business there is no substitute for personal contact. Making a connection with suppliers, buyers, vendors and others in the commercial stream is essential to success. This is where Centrallia 2012 comes into the picture. Centrallia is a forum on international trade where businessto-business matchmaking takes place in a big way. Its second installment is slated for October 10-12 at the Winnipeg Convention Centre (www.centrallia.com). Over three days this event will help more than 600 business leaders from around the world network with each other and drive commerce forward in the process. The event builds on the successes of Futurallia, an initiative where participants were strategically matched to participate in a series of one-on-one meetings. Centrallia is the result of efforts from ANIM, Manitoba’s Bilingual Trade Agency. The event's objective is to bring the world’s business people together for one-on-one meetings and do it in a multilingual format (French, English, Spanish) that is a proven method for making sustained commercial relationships. Indeed, Centrallia is a lot like speed dating for business. It
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presents attendees with a highly focused and targeted opportunity to sit and discuss business with potential suppliers and buyers from a host of countries such as United States, Argentina, France, Italy, Algeria, Senegal, India and China. Centrallia 2012 will capitalize on Manitoba’s location at the heart of North America to promote the province's key role in the Mid-Continent Trade and Transportation Corridor. To organize the event ANIM is collaborating with The Winnipeg Chamber of Commerce and its partners, the Canadian Manufacturers and Exporters, and Manitoba Trade and Investment. The hope is that this international businessto-business forum will increase business trade, investments and partnerships with North and South America, Europe, Africa and Asia.
Centrallia in Manitoba came about after Mulaire travelled to Quebec in 2008 with a group of 43 business people who were seeking more trade for their small- and medium-sized operations. The event was part of an initiative that was started in France years before known as Futurallia. “When we were in Quebec, the question ‘Why not in Manitoba?’ was raised by members of our delegation. We took up this challenge and launched the first
The 2012 program offers much. For example, this year’s keynote speaker (October 10 - 7:30 p.m.) is none other than trend maven Malcolm Gladwell (www. gladwell.com) a writer that Time magazine regarded as one of the 100 most influential people on Earth. Gladwell, who writes for The New Yorker, is known for his thought provoking ideas on contemporary society and business. His most recent books include Blink, The Tipping Point and Outliers: The Story of Success. Other presenters include feature speakers Colin Osborne, President and CEO, Vicwest Inc. who will offer “Lessons Learned Taking a Canadian Icon Global” (October 11, 1:00 p.m.) and Brad Watson, Partner, KPMG LLP who delivers his “Assessing International Business Competitiveness” (October 12, 1:00 p.m.). There are also a number of insightful industrial tours planned. Mulaire reports that on Tuesday and Wednesday, attendees are invited to register for a number of offsite field trips. For instance, participants can take a close look at New Flyer Industries’ world leading bus manufacturing plant, the food science at the Portage Food Centre and at Richardson Centre for Functional Foods and Nutraceuticals and check out the capabilities within Winnipeg’s cuttingedge aerospace sector, to name just a few of the opportunities. The days are also peppered with round tables and discussion forums on hot topics such as Water Technology and Mining.
good causes by Rick Frost | CEO The Winnipeg Foundation
Nourishing the potential of Winnipeg kids We’ve all felt hungry from time to time. We know a growling stomach plays havoc with our concentration, our mood, our energy levels and our ability to be our best selves. Now, imagine what it’s like for children and youth to be chronically hungry at such a critical point in their development. How can we expect them to grow, learn and become healthy adults without the basic fuel they need to succeed? Fortunately, there are many local dropin, after-school and summer programs that help meet these nutrition needs, providing snacks and meals to thousands of Winnipeg kids. The Nourishing Potential Fund helps ensure these organizations can offer healthy food and hands-on nutrition education. Since it started granting last year, the Fund has already supported 40 programs for a total of more than $265,000. That’s a lot of apples, milk and other wholesome foods! Hunger is a huge and overwhelming issue in our community. Supporting the Nourishing Potential Fund is a way we can provide tangible help, and help improve the lives and futures of our city’s kids. I encourage you to join me, and hundreds of Winnipeggers, in supporting this fund. Visit www.wpgfdn.org and click on Donate Now or call 204.944.9474 (toll-free: 1.877.974-3631).
good
According to Mariette Mulaire, President and CEO of ANIM, Centrallia will offer as many as 6,000 meetings at this year’s event. Here’s how it works: Participants look over the list of attendees and decide with whom they wish to conduct meetings. Participants then create a hit list of up to 14 companies or groups. Next, Mulaire’s team at Centrallia schedule the meetings over two of the three days of the festivities. “The logistics can be a challenge given the sheer number of interactions we arrange,” says Mulaire.
Centrallia in 2010. The event proved to be a huge success that is building today as we move into this year’s expanded program.”
Thursday starts the business-to-business meeting sessions. “Be prepared to be surprised,” says Mulaire who suggests that attendees need to keep an open attitude
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to make this component a success. “Businesses pick 14 other businesses they wish to network with. The surprise can come from those who pick you. This aspect really takes things to another level because it introduces an organic element into the mix where you might meet a contact you least expected, but end up doing business all the same. “This is so different from the standard trade show where people stand in booths and pitch their products. These events are typically too busy to get a chance to really conduct a proper face-to-face meeting. At Centrallia the idea is to create a setting where targeted, focused, one-on-one get-togethers generate real linkages that translate into business,” she says, adding that they are also offering an exhibitor area where trade organizations, service providers, sponsors and partners can conduct informative displays and points of contact. All work and no play? Not at Centrallia. Mulaire notes that attendees are able to further their contacts at social events and at meals provided in the registration package. This includes breakfasts and lunches but also offers a gala dinner (October 11), a networking reception prior to Mr. Gladwell’s address followed by a cash bar (October 10), and a closing reception on October 12. More, October 11 features afterdinner entertainment by Quebec super-star Gregory Charles, one of Canada’s most successful performers. There are a number of international trade initiatives under way, states Mulaire. In April 2012 the World Trade Center Association (WTCA) unanimously approved the license application for the establish-
ment of a bilingual World Trade Centre in Winnipeg. Newly appointed CEO Mariette Mulaire states that “now Manitoba joins 320 World Trade Centers in 96 countries to maximize trade opportunities. “Building a bilingual World Trade Centre is a bold idea that we knew we could achieve through our association with the Winnipeg Chamber of Commerce,” says Mulaire, pointing out that ANIM brings its international experience and a network of more than 70 international economic development agencies, industry associations and chambers of commerce. “Through our partnership we have become
a focal point for Central Canada’s international trade community and a valuable resource to its local members. A World Trade Centre (WTC) provides businesses with access to a diverse array of state-ofthe-art trade services, enabling them to increase their international sales.” Indeed, so valuable is this initiative that as many as 200 local business leaders will join hundreds of international businesses to participate in this year’s Centrallia 2012. “This is where the world meets for business, and where better to meet than at the centre,” concludes Mulaire.
Helping Industry Reach New Heights When aerospace heavyweights like Boeing, StandardAero and Magellan Aerospace gear up for new work, they look to RRC to provide solutions to their HR and product development challenges. We’ve even built our own training and research facilities right inside corporate manufacturing plants. And it’s not just aerospace. Every industry has unique training and research requirements, but not every company can meet those needs in-house. To explore partnership opportunities for your organization, see rrc.ca/corporatesolutions and rrc.ca/appliedresearch.
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Saving money south of the border A coordinated approach can reduce your international tax footprint Many Canadian companies look south to grow their business—and while this new marketplace opens up opportunities for expansion and new profit streams, it also brings a new set of tax rules and consequences. Whether you are a business already operating in the U.S. or considering doing business across the border, it’s important to understand all of the tax implications so you can strategically plan and manage your risks. “Not only are U.S. corporate tax rates higher than Canadian rates, each state has its own unique tax regime and that can make for a complex analysis. You really have to think about how you want to structure your business,” says Michael Kukelko, an International Tax Partner with MNP. “You have to decide what kind of tax footprint you want to have.” MNP can assist anywhere from deciding on how to enter into the U.S. or, once a client has entered into the U.S., managing the company’s growth. “It all relates back to trying to manage your tax exposure in the U.S. while managing your global rate,” says Christa Walkden, a U.S. Tax Partner with MNP, who began her career as a tax professional in the U.S. “At the end of the day, after-tax profits are what need to be maximized. The ultimate benefit of a good strategy is the return on investment—more money back in the business and in the stakeholders’ hands. Our team has saved companies millions of dollars just by doing proper cross-border tax planning.”
one team that understands the tax rules on both sides of the border, you can develop a more efficient, cost-effective and streamlined strategy.” Because it addresses a company’s tax strategy as a whole, this coordinated approach is equally effective for U.S. businesses looking north. Having a plan in place before going into a new market is ideal, but for many businesses, the pace of the industry sometimes requires acting first and planning second. “Ideally you want to start with a plan that considers every part of their business, but that’s not always possible. Still, when a client comes to us to file a return, we don’t only ensure they stay compliant for that year, but often find ways to put them in a better tax position for the next year,” says Walkden. MNP’s Tax team has extensive experience dealing with tax issues on both sides of the border, and on both sides of the table. “Both Christa and I have industry experience, working inside organizations with crossborder tax issues. That changes your perspective and gives you a better understanding of what clients want,” says Kukelko. “Our team works closely with clients, taking on an almost outsourced tax department role. It’s a strong partnership that allows us to do more than just prepare returns or give advice on a particular transaction. We can anticipate their needs and help them plan for their future.”
MNP considers your tax strategy as a whole, factoring in Canadian and U.S. tax obligations for a truly coordinated approach.
Walkden agrees. “We are here in Winnipeg working with our clients, so they get the benefit of our dual Canadian-U.S. expertise and access to our team when and where you need us.”
Walkden adds that some tax structures that work well in one country may raise a business’ risk in the other. “The Limited Liability Company (LLC) structure, for example, may work well for a company in the U.S. but causes complications within the Canadian system. Working with
If you’re operating in the U.S. or considering an international expansion, find out how MNP’s cross-border approach can benefit you. Contact Christa Walkden, CPA (MN), Regional International Tax Leader, Prairies at 204.336.6245 or christa.walkden@mnp.ca.
Michael Kukelko, CA Christa Walkden, CPA (MN)
TAX SOLUTIONS THAT GO BEYOND BORDERS Operating internationally requires in-depth tax advice to maximize returns, reduce risk and manage cash flow. With extensive experience in U.S. and Canadian corporate tax planning and compliance, MNP’s Cross-border Tax Services team uses an integrated approach to develop international tax strategies that ensure you get the most out of your business on both sides of the border. Whether you’re a Canadian company doing business abroad, or a U.S. company doing business in Canada, MNP has the in-depth knowledge, industry experience and complete line of tax services to keep you compliant and competitive. To find out more about international tax solutions for your business, contact Christa Walkden, CPA (MN), Regional International Tax Leader, Prairies at 204.336.6245 or christa.walkden@mnp.ca.
[
Small Business Week
[
Time to Celebrate and Strategize Emails to answer, orders to fill, meetings to attend. Sometimes there are just not enough hours in the day for busy bosses – particularly those who own small and mediumsize enterprises (SME). Typically, they juggle numerous roles, and the demands of the nine-to-five schedule are allconsuming, so much so that there is little time to stop and contemplate the longterm needs of their company, whether for expansion capital, increased technology or the right mix of human resources.
Small Business Week, Oct. 14 to 20, is an ideal time for owners to stop, take stock and plan, says Michael Selci, vice-president, financing and consulting, Manitoba, at Business Development Bank of Canada (BCD). “It is an opportunity for us and for entrepreneurs to look back at their business, see how they’re doing, how far they’ve come, and where they’re headed,” he says. “It is an opportunity for them to get together with peers and other partners in the business community, to celebrate where they came from and maybe talk to the customers, investigate some growth opportunities and explore market niches. So, it’s really about bringing people together, sharing some resources and synergies.” This year’s theme is Aim High! Invest in Your Future. In line with that theme, BDC will organize events across the country to encourage owners to invest in and grow their business ventures. Attendees can expect to network and get information and practical advice on numerous topics related to this year’s theme. In Manitoba, a Small Business Week Kickoff and Marketing Keynote event will take place Friday, Oct. 12 at the Franco-Manitoban Cultural Centre where participants can expect to hear a joint announcement by the BDC, the Manitoba government and the Canada Manitoba Business Service Centre. On Thursday, Oct. 18, The Webmaster’s Den, a workshop for entrepreneurs, will take place at the Delta Winnipeg. The event is sponsored by BDC and the Canada/Manitoba Business Service Centre.
Altus Group Realty Tax Consulting 204.272.1495 WPGPTS@altusgroup.com 16
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On Friday, Oct. 19, BDC and the Manitoba Chambers of Commerce will host the Manitoba Chambers of Commerce Manitoba Business Awards Gala at the Fairmont Winnipeg. Anyone interested in more information about Small Business Week is asked to
September/October 2012
By Gloria Taylor
watch the BCD website (www.bdc.ca) as the events were still being organized in early September. “We want to help small- and mediumsized companies build better and more competitive companies,” emphasizes Selci. As a major driver of the Canadian economy, there is good reason to help Canada’s SMEs prosper. “SMEs are the cornerstone of the Canadian economy,” says Selci. “They represent 99.8 per cent of all Canadian companies and employ more than 60 per cent of private-sector workers across Canada. They are important to customers and the economy, and it is important to recognize them.” Small Business Week is a BDC-registered trademark that dates back to 1979, when BDC business centres in British Columbia’s Lower Fraser Valley pooled their resources to organize a week of activities for entrepreneurs. In 1981, BDC launched Small Business Week across the country. In 2011, more than 300 activities across Canada attracted close to 10,000 people. BDC helps entrepreneurs year-round through financing, consulting, venture capital and information technology services that complement those offered by other institutions and organizations. “We work in a complementary role with lenders such as chartered banks and credit unions. We will partner with other lenders in the marketplace to address the needs of the entrepreneurs,” explains Selci. BDC works with companies from start-ups to those that are more established. “It may need venture capital or require help with obtaining land, equipment or specialized financing to help it grow,” says Selci. Consulting can cover a range of topics, such as: information and communication technology, business coaching, managing employees, finance and understanding
BDC Small Business Week
TM
October 14–20, 2012
Take part in activities organized in your region! bdc.ca/sbw | 1 888 INFO BDC
[
Human Resources
[
The Chinese Approach to Managing Human Resources
By Peter Cappelli and Tony Fang
* This is an abbreviated and amended version of an article previously
published in its entirety in the July 2012 issue of NHRD Network Journal
The rise of the Chinese economy has arguably been the most important story in the world economy for the past generation. The country’s rapid growth, however, has brought with it numerous challenges in managing employees. The expansion of private enterprise and exposure of government-run businesses to world markets has led to changes in how employees are managed, and to the development of what may eventually be a distinctive HR approach. At present, HR in China is both important and yet underdeveloped. The overall perception of HR has been of a supporting function, something that is necessary for business success but does not contribute directly to competitive advantage. There is no well-developed national HR professional association in the country, so there is little central influence on HR direction or sharing best practices. However, the demand for better HR is creating considerable interest in the field among new managers, and we can expect to see an increase in the pace of change. Employment issues Many constraints that cause problems in the Chinese workplace are legacies of earlier communist practices, when everyone worked for the government and there was 18
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little competition. Firms did not lay off employees, so efficiency and performance were not a concern. These constraints exist now mainly in the State-owned entities, and are slowly eroding as fewer individuals remember the old systems. The emerging story begins with the exhaustion of the supply of cheap labour. Labour costs have risen from roughly US$0.50 per hour in 2000 to US$3.50 per hour in 2010, reflecting a tighter market for unskilled labour. Accounts from some factories suggest that wages for operators have risen 50 per cent from 2010 to 2012. As a result, turnover has become a real problem. Workers now hop from employer to employer, chasing higher wages and "switching bonuses.” Anecdotal accounts suggest that wages for managers and executives are already at European levels, and climbing to American ones in some regions. As a result of these developments, employers complain about the rigidity and high cost of new standards and have made greater use of staffing firms to provide workers and non-standard employment contracts. Employment issues have become a big challenge and a more important factor in shaping a company’s competitiveness.
September/October 2012
There are many Chinese corporations that have become competitive globally, largely benefiting from the "cost innovation" strategy that centres around leveraging low cost and innovation. They take advantage of the “loose spot” of the global product market: including the low-end market, the periphery, the eccentric demands, and unique niches. Their major weaknesses, however, are intangible initial brands, difficulty early in the product life cycle, and dependence on a Chinese domestic market base. They are unable to manage the complex systems of R&D, global supply chains, manufacturing, logistics, marketing and distribution. The growing complexity of business has made managerial talent an immediate priority at the executive level. CEOs looking at their operations see that every important business development creates the need for new organizational competencies. Hiring those skills and creating a process where they might eventually be grown from within is now a pressing CEOlevel concern, especially in the innovative private sector. For these reasons, Chinese HRM is in transition. In China, Western consulting firms are everywhere, offering advice and training programs on recruiting and
skill development. Most privately held companies are so new, they often present a blank slate for experimenting with and incorporating western HR practices. Not surprisingly, leaders in this area are foreign-based companies operating in China. They adapt easily to these new challenges by bringing in practices from their home countries. In a survey of 180 firms conducted by Law et. al, it was determined that the effect of HRM on performance was stronger in foreigninvested enterprises (FIEs) than in SOEs. Additional evidence suggests that HRM functions in FIEs were elevated to a level of strategic importance. This is not to suggest that Chinese practices will converge with western HRM. Many factors affect a company’s willingness to adopt western practices, such as size, age, ownership and competitive strategy. Influence of Chinese Culture Cultural and political factors present the greatest barrier to a convergence of HRM practices with those in the West and are most likely to contribute to the development of HRM practices with "Chinese characteristics." More than 5,000 years of a continuous civilization creates a national culture that has a far-reaching impact on management practices, particularly HR. Most observers suggest that successful practices are those that adapt to Chinese culture, and that management hybrids are already developing. Chinese culture values hard work. Many employees work extra hours, even without overtime pay. The Chinese value
harmony, and Chinese managers often rely on Confucian principles to achieve this. Market pressures create changes that disturb harmony, however, as do western HRM practices that focus on individuals, rather than the workforce as a whole, and differentiate individuals in terms of rewards. Relationship building is often seen as the most distinctive aspect of business in China. The concept of “guanxi” refers to informal social networks that influence social interactions, including employment and financial transactions. Guanxi is also considered a major barrier to foreign nationals attempting to establish Western HRM practices – such as merit-based recruitment and selection. Guanxi reflects the notion of trust that comes from experience, which means business leaders like to work with a team of employees that they know. They do not like to "churn" out executives the way we see in U.S. firms, and there is a fair amount of loyalty from leaders to their followers in return. In a sense, these practices at the top level may resemble older corporate models in the U.S., where lifetime employment was assumed. How CEOs in China will deal with the need to bring in new skills, or whether talent will be rotated across roles to develop it – breaking those tight working relationships at least in the shortterm – remains to be seen. A final Chinese value is one placed on "face," i.e., avoiding personal embarrassment. Western HRM practices rely on promotions, dismissals and other individu-
AccelerAte sAles of your bold innovAtion.
alized outcomes that create winners as well as losers. Whether those practices can be adapted to the Chinese context remains an open question. If not, how Chinese businesses will deal with the challenge of moving the right people into positions whose requirements change is not obvious. The Future China is now the second largest economy in the world, and the World Bank forecasts it will be the largest economy by 2030. The business model that got it to this point – factories that relied on surplus labour to keep wages down and maintain workplace discipline – is already on the way out. Chinese businesses will have to find ways to deal with competitive labour markets. They will need to train workers to meet skill needs, and engage them in ways that replace labour market discipline. Much of that can be borrowed from the West. They will also need to deal with the problems of change in the workplace, such as changing skill requirements and changing demands of workers. The pressures from markets for responsiveness will lead to intense pressures for adaptation at the managerial level. Western solutions to those problems conflict not only with existing Chinese practices, but also with Chinese culture. It is unlikely that Chinese businesses will follow them, at least not closely. The path they end up following is likely to be both interesting, and unique.
It takes tech-specific sales expertise to be profitable in today’s tech marketplace. The Eureka Project has that expertise. We help our clients excel in North America and the world. The Eureka team can help you with hands-on entrepreneurial guidance in: • lead generation and prequalification • sales training & management • distribution • finance • infrastructure • local/global marketing and more.
START NOW. info@eurekaproject.ca 1-204-262-6400 eurekaproject.ca
September/October 2012
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[ LEGAL [
Drinking + Driving = Dismissal One Event Can End Employment By Steven Z. Raber
A recent Ontario Superior Court of Justice decision demonstrates how the activities of an employee, even after hours, can result in the employee being disciplined, including being terminated from employment. Jaroslaw Dziecielski, aged 45 years, had worked for his employer for 23 years. He had begun his employment as a labourer and worked his way up to being the vice president responsible for quality control and standards compliance. He reported directly to the principals of the business. As part of his duties, Mr. Dziecielski was obliged to drive his own vehicle, however, he also had the use of a company pickup truck. One morning, he had scheduled a meeting with a customer and took the pickup truck to travel to the meeting. He did not ask for permission to use the truck. After the meeting was over, on the way back to his employer’s premises, Mr. Dziecielski stopped for lunch. Over one hour, he drank four beers. He then got back into the truck and resumed his return trip. He did not make it back to his 20
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employer’s premises – he lost control of the truck, which went off the road and rolled several times. Sometime after Mr. Dziecielski was released from hospital and before he returned to work, his employer terminated his employment, for cause. Three reasons were given: 1. Driving the company vehicle without authorization; 2. Damage to the vehicle and pending criminal charges for being under the influence of alcohol or drugs; and 3. Breach of the provisions of the employee handbook that characterize the consumption of alcohol on the job as a “major” violation that could result in termination. Mr. Dziecielski sued his employer, claiming he had been wrongfully dismissed, in breach of his contract of employment. The court set out five factors as being relevant to a determination as
September/October 2012
to whether an employee’s conduct or misconduct justifies dismissal: • whether the employee was guilty of serious misconduct; • whether the employee’s impugned behaviour or act was merely conduct with which the employer disagreed, or “trifling causes”, rather than transgressions or misconduct which any reasonable person could not overlook; • whether the employee’s misconduct was inconsistent with or prejudicial to the employer’s business, and therefore in breach of an implied term of the employment agreement; • whether the employee’s misconduct was in breach of an express provision of the employment agreement; and • whether the misconduct merely reflected the employee’s poor judgment or inadvertence The court further noted the following factors as being relevant in the case of criminal conduct:
• whether the employee was culpable for the alleged criminal conduct, or misconduct of a criminal nature; • whether the conduct was prejudicial or inimical to the employer’s legitimate business interests; • whether the conduct was in breach of the implied duty of fidelity, or fiduciary duty, or an express condition of employment, and therefore in breach of the employment agreement; and • whether there is evidence of actual harm or evidence substantiating potential harm to the employer The judge decided that the employer’s termination of Mr. Dziecielski was justified. He considered Mr. Dziecielski’s drunk driving as serious misconduct, now considered within society at large to be a very serious criminal offence attracting significant minimum sentences. The judge
noted that drunk driving is potentially lethal conduct and that Mr. Dziecielski was lucky to have survived and to not have injured or killed others travelling on the highway. The judge found, irrespective of whether the employee handbook was binding on Mr. Dziecielski, that the employee must have understood that drinking four beers and then driving the truck was a breach of a serious workplace rule and the criminal law, very serious misconduct. Important from an employer’s perspective and applicable beyond drinking and driving, was the judge’s finding that Mr. Dziecielski’s conduct was prejudicial to the employer’s business. The court noted that the employer may have been at risk of being found vicariously liable to third parties, at risk for workers’ compensation claims and premium increases, and at risk of having customers and suppliers
thinking less of the employer if they thought the employer cannot properly control and direct its employees. Put another way, the employer’s reputation and goodwill could have been adversely affected by Mr. Dziecielski’s conduct. In short, therefore, both employers and employees should take mind of the consequences of employee breaches of workplace rules and the criminal law. The court, at least in this case, was prepared to find that the employee could be terminated for cause, not just for breaching company rules and the criminal law but, in addition, for potentially harming the employer’s reputation.
Steven Z. Raber is a lawyer, trained mediator, registered trademark agent, and partner at Fillmore Riley LLP. He may be reached by telephone at 204.957.8304 or by email at stevenraber@fillmoreriley.com
Sunset
Goose Flights
Wednesdays - Sundays: Open until Dusk September 19 - October 21
Sunset Goose Flights Join us for an interpretive presentation about the goose migration. Enjoy the BBQ and concessions available on the south deck of the Interpretive Centre. Admission after 5 pm: Adults: $5 Seniors: $4 Children: $3 Carload: $12 Sponsored by:
Dinner and a Show Enjoy spectacular lakeside views of the setting sun and thousands of migrating geese as you dine on a delicious three-course meal prepared by the Buffalo Stone Café. Reservations open September 1, call (204) 989-8370 $40/person (includes taxes and gratuity) Wine/Beer available for purchase
For Private, Group and Corporate Bookings, please call (204) 989-8353
For more information, or to view the dinner menu, please visit:
www.fortwhyte.org/sunsetgooseflights
September/October 2012
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[ Trailblazers [
A Jack of All
Trades And proficient in each of them By Christopher Grant
What do a local triathlete, a competitive hockey player and the leader in a rock band with a Top 40 hit have in common with the CEO of a listed Canadian corporation? They’re all James Cohen, Winnipeg son and president of Gendis, a public company trading on the TSX and known for its real estate and energy investments. James attributes his success at the helm of Gendis and his other pursuits as a result of his ability to balance his interests against his responsibilities. “I pride myself on being fairly organized as a person,” he says. “I’m a big believer in making lists. I have a daytimer; it’s very old school, but I look ahead to the week and I look at what can be done and if it can’t be done I reschedule things. It’s pretty simple.” Sitting across the table in the Gendis boardroom, he is relaxed, comfortable and confident. How does he manage? 22
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September/October 2012
“I drink a lot of coffee; that seems to help.” More likely it’s about the levels of activity he maintains. “My late father was always very active right up until his last years and that was ingrained in me as a kid. I try and do something physical at least four times a week and I feel that allows for mental stimulation. Being physically fit allows you to tackle challenges in other parts of your life.” Jamie is a middle child, with an older brother with his own real estate and mining interests in Toronto and a younger sister who is a psychology professor in New York. “All I can say is that my parents raised all three of us well as we’re all grounded. We travelled, my parents took us to the ballet, the symphony; but our privilege was never taken for granted. My father grew up poor; he was a self-made man from the North End of Winnipeg and that never left him, and in his upbringing of us we were always made aware of it.”
James first worked in the warehouse loading trucks, and then moved into the real estate department. “When I moved back from school I started as an associate in one of our retail stores. I spent a couple of years selling to customers. Eventually I moved into the head office and over the ensuing 15 plus years I worked my way up through the business, learning it. I’m a big believer in that, you know, learning a company from the ground up. I didn’t want to be one of those kids who move directly into an executive office as you don’t get the respect from people when you do that. People knew I worked my way up and that I’ve always treated them with respect and here we are now, 20 years later and I’m running the company and we’re very optimistic about the future.” That future includes touring with his band, even though he has to count touring as holiday time from Gendis. “James Cohen and the Prairie Roots Rockers is a band I put together
“We don’t have kids. We love kids; we just waited a little too long. But we have three foster kids, two in Africa and one in Central America. I look forward to more philanthropic ventures in the third world. I believe strongly in that, having travelled. A lot of the time we don’t realize how lucky we are.” Despite his other interests, Gendis always comes first. “Look, it’s a major responsibility to run the company. I’m a major shareholder, but I am able to balance it and I purposely try not to take advantage of my position.” Jamie’s vision for Gendis is not very different from that of his late father, Albert D. Cohen, who passed away in 2011. “I feel very confident that my dad would have been in total agreement with what we’re doing. We sold our operating businesses over the last 15 years and we’re now an investment holding company with under 10 employees.” Looking back, would James have changed anything?
“…My father grew up poor; he was a self-made man from the North End of Winnipeg and that never left him, and in his upbringing of us we were always made aware of it.”
“I’m glad I did it the way I did it. You have confidence then. If you go straight into a VP position you don’t have any credibility and people see right through that. Especially in a company with family; you should have to prove yourself.”
4 8
a year and a half ago. If there’s one thing I learned from my parents it was persistence, and no matter how busy I was I always took time to play and write songs. I hooked up with some noted local musicians and we recorded some stuff a couple of years ago.”
Eventually an opportunity arose to send the material off to an Indie label in Edmonton. That label, Soccer Mom Records, signed the band.
“We released the CD a few months ago and one of the songs, ‘So Long Sweet Deception’, was in the top 40 for 16 weeks on the Mediabase rock radio charts. I’ve got a second single out now, too.”
“A couple of years ago, if you’d told me I’d be signed to a record label distributed by Warner Music Canada and had a top 40 hit,” he wouldn’t have believed it. “The music business is such a tough business,” and he’d given up on the music business to focus on Gendis. Yet James’ accomplishments pervade his life. He still plays competitive hockey and he completed the 2011 Los Angeles triathlon alongside fellow members of the local chapter of the Young Presidents Organization. “I did pretty well; it’s a sprintdistance race, but I did it in one hour and 35 minutes.” Married for 17 years to Linda, between them the couple devote substantial time to philanthropic causes such as Winnipeg Harvest and the third world.
We See More Than Numbers.
www.cga-manitoba.org
September/October 2012
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At The Desk of‌ Christine Alongi, Director, Communications & Public Affairs, Winnipeg Airports Authority Inc.
Image by Chronic Creative
My partner. Tom Payne Jr. gave me this picture. I went from being a passenger to a rider this year and this marked the occasion!
Pictures: One of her Majesty, whom I had the great honour of meeting during the Royal Tour. And of course, pictures of my family.
A book we published for employees, stakeholders and partners: From Airfield to Airport City, a Bit of History, a Focus on the Future. Amelia Bearheart, a memo from the fundraiser 'Bears on Brodway.'
My screen saver, my ride! 2012 Harley Switchback
A piece of Tyndalstone from the old air terminal.
My airport walkie talkie, this links me into airport operations / tower, useful during incidents.
A gift from Manitoba Hydro for participating in the Hydro Power Smart commercials.
Coffee... a must! Recent article highlighting Winnipeg's new front door in Airport Worlds magazine.
A wee bit of dirt from the ground breaking ceremony for the new air terminal building.
September/October 2012
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Vol. 4, Issue 4 September/October 2012
Index to Advertisers AAA Alarms................................ 13 www.AAAalarms.ca
Eureka Project............................ 19 www.eurekaproject.ca
Marlborough Hotel.................... 13 www.themarlborough.ca
Altus Realty Tax Consulting...... 16 www.altusgroup.com
Evolution Presentation Technologies................................7 www.evolutionav.ca
MNP LLP........................... 14 & 15 www.mnp.ca
Business Development Bank (BDC)................................ 17 www.bdc.ca
Fillmore Riley LLP ......................... Inside front Cover www.fillmoreriley.com
Certified General Accountants of Manitoba...............................23 www.cga-manitoba.org
Fort Whyte Alive........................ 21 www.fortwhyte.org
CN Rail.............. Inside Back Cover
Gourmet Coffee Specialists........26 www.gourmetcoffee.ca
Custom House/Western Union.....6 www.customhouse.com
Manitoba Lotteries.......................7 www.manitobalotteries.com
Payworks.....................................5 www.payworks.ca QNet........................................... 21 www.qnet.ca Red River College...................... 12 www.rrc.mb.ca Telpay......................................8, 9 www.telpay.ca The Winnipeg Foundation...........11 www.wpgfdn.org Thompson, Dorfman, Sweatman LLP .....................Outside Back Cover www.globalconnections.com
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September/October 2012
Together We stand for innovation
Moving goods, fostering prosperity.
www.cn.ca
Public inquiries: 1-888-888-5909 • CN Sales Centre: 1-888-MOVIN-CN • To report an emergency: 1-800-465-9239
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After 125 years, some things have only gotten better.
In 1887, construction of the Eiffel Tower started in Paris, Queen Victoria celebrated her Golden Jubilee in London and two lawyers founded a law firm in Winnipeg that would become known for reliability. As we celebrate our anniversary, we want to take this opportunity to thank our clients and the community that we serve. Without you, we wouldn’t have become one of Manitoba’s most trusted names in law. The world around us has changed significantly since we were founded, but it’s safe to say that after 125 years, some things have only gotten better.
201 Portage Avenue, Suite 2200 Winnipeg, Manitoba R3B 3L3 Phone 204.957.1930
Learn more about our history at:
www.tdslaw.com/125