BEST EXECUTIVES 2021 DANIEL HABASHI LENS FLARE LUMBER FORWARD OUR EXCLUSIVE LIST MEET TIKTOK’S CANADIAN AN EYEWEAR FIRM LOOKS WHY WOOD IS A HOT OF INDUSTRY SUPERSTARS AMBASSADOR TO THE FUTURE INVESTMENT RIGHT NOW

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Daniel Habashi, general manager in Canada for online sensation TikTok page 22

2 EDITOR’S NOTE

4 SEVEN THINGS Small business owners really need to master digital platforms; the fate of calls from unknown numbers; and if you want to buy happiness, spend money on your pet

7 NEED TO KNOW Feminine-sounding brand names make consumers feel much warmer than masculine ones do

11 BIG IDEA Even after laws and feel- good initiatives, employers can still get better at hiring NA

RA and retaining people with physical or psychiatric HAR

SA disabilities

(RIGHT) 14 ASK AN EXPERT

CP; Online office celebrations

H/ require ingenuity, but some OS tricks from the real world still work, like partying at MCINT lunchtime or happy hour JEFF S) 16 THE EXCHANGE The Toronto Blue Jays still SUTTLE aren’t allowed to play in Canada, but team president ’BRIEN,

(O Mark Shapiro is pulling out , CANADA’S BEST EXECUTIVES CP all the stops to maintain

URK/ hometown fan fever and

ST build a real contender Just below the CEO in any great business is a C-suite team that’s also firing on all cylinders. Meet 50 all-stars who MIKE 52 WEALTH help lift their organizations’ game up several notches. David Picton co-founded SMAN) his own investment firm to (ERE , use hedge fund strategies CP cautiously in up and down markets. But they also GUNN/ 22 36 46 produce eye-popping TOK OF THE TOWN THE MYSTERIOUS VISIONARY ANK

FR returns some years TikTok is now a global CASE OF ENCANA CEO Antoine Amiel corporate juggernaut, How did the top oil would like to see hot GAN) 56 TURNING POINT but tech and social and gas company in Montreal eyeglass

(MOR Dot Health founder and CEO Huda Idrees wanted media whiz Daniel Canada—a true national maker New Look

APHS to give consumers direct Habashi, its general champion—lose its way Vision rise to No. 2 GR manager for Canada, and then pack up and in the world. Some

TO access to their health records. Under COVID-19, is trying to keep leave for Denver? How very large investors PHO hospitals and other things focused on fun. indeed. /By Tim Kiladze are giving him a shot. VER institutions are lining up too and Jeffrey Jones /By Nicolas Van Praet

CO /By Stacy Lee Kong

MAY 2021 / REPORT ON BUSINESS 1 Editor’s Note May 2021, Volume 37, No. 5 Editorial Editor JAMES COWAN Assistant Editor DAWN CALLEJA Senior Editor JOHN DALY Copy Editors LISA FIELDING, SUSAN NERBERG Research CATHERINE DOWLING Art Art Director DOMENIC MACRI Associate Art Director BRENNAN HIGGINBOTHAM Director of Photography CLARE VANDER MEERSCH Contributors DEBORAH AARTS, LIZA AGRBA, JOE CASTALDO, TREVOR COLE, ROSEMARY COUNTER, TIM KILADZE, JASON KIRBY, SUSAN KRASHINSKY ROBERTSON, ALEX MLYNEK, JOANNA PACHNER, JUDITH PEREIRA Advertising Chief Revenue Officer ANDREW SAUNDERS Managing Director, Creative Studios and Ad Innovation TRACY DAY Senior Manager, Special Products ANDREA D’ANDRADE Product Manager RYAN HYSTEAD Production Vice President, Print Operations Unsung heroes SALLY PIRRI Production Co-ordinator ISABELLE CABRAL Apple unveiled the first iPod at a press event in a modest theatre housed in its Publisher headquarters on Oct. 23, 2001. The music player was a revolutionary product, PHILLIP CRAWLEY crafted to meet the high standards of the company’s chief executive. Steve Jobs Editor-in-Chief, The Globe and Mail had pushed his team to produce a device that looked cool while being both easy DAVID WALMSLEY Managing Director, Business to use and small enough to fit in your pocket. But the iPod wouldn’t have been and Financial Products a success if not for the efforts of Tim Cook, then the senior vice-president of GARTH THOMAS operations. It was Cook’s job to build a supply chain that enabled Apple to pro- Editor, Report on Business duce more units at a faster pace than it ever had before. Cook “quickened the GARY SALEWICZ company’s metabolism,” as journalists Brent Schlender and Rick Tetzeli put it Report on Business magazine is published 7 times a year by The Globe in their Jobs biography. That unsexy work made possible the iPhone, iPad and and Mail Inc., 351 King Street E., Toronto Apple Watch—and on it goes. M5A 0N1. Telephone 416-585-5000. Cook became Apple’s chief operating officer in 2005 and then its CEO six Letters to the Editor: [email protected]. years later, shortly before Jobs’s death. The two men had very different The next issue will be on May 29. strengths, making it easy to see how the meticulous, even-keeled COO balanced Copyright 2021, The Globe and Mail. the visionary, mercurial Jobs. And Cook was not alone in supporting his boss. Indexed in the Canadian Periodical Index. Advertising Offices While Apple’s founder is often portrayed as a solo act, the company’s later suc- Head Office, The Globe and Mail, cess, in particular, depended on a team of exceptional executives. 351 King Street E., Toronto M5A 0N1 We launched the Best Executive Awards last year to celebrate business lead- Telephone 416-585-5111 or toll-free 1-866-999-9237 ers who don’t yet occupy the corner office. These individuals—C-level execu- Branch Offices tives, plus executive and senior vice-presidents—were nominated by their Montreal 514-982-3050 colleagues and then evaluated by members of our team based on their accom- Vancouver 604-685-0308 Calgary 403-245-4987 plishments and leadership abilities. To ensure our final list reflected the many Email: [email protected] talents needed to run a thriving organization, we chose 10 honourees in each of United States and countries outside of five functional areas: finance, human resources, operations, sales and market- North America: AJR Media Group, ing, and technology. 212-426-5932, ajrmediagroup@ globeandmail.com These individuals all excel in their own fields, but I was also struck by how Publications mail registration No. 7418. many of them were praised by their peers for adjusting to fit the moment. Some The publisher accepts no responsibility have become champions of diversity and inclusion; others are mentors to col- for unsolicited manuscripts, SHIRI KE

leagues outside their department. Their efforts—like Cook’s on the iPod—are transparencies or other material. H Printed in Canada by Transcontinental OS

often low-profile and unsung. We’re here to change that. /James Cowan Printing Inc. UR Report on Business magazine is electronically KO available through subscription to Factiva.com A NOTE TO READERS: Our March issue featured our Changemakers Award for emerging from Factiva, at factiva.com/factiva APH Send feedback to GR business leaders. After publication, we learned an honouree did not meet our criteria for or 416-306-2003. robmagletters@ TO globeandmail.com inclusion. We have removed their name from the online version of this list. tgam.ca/r PHO

2 MAY 2021 / REPORT ON BUSINESS Advisory Board

Once more, with feeling A few months ago, we invited executives from our coffee roasters) were forced to close list of Canada’s Top Growing Companies to offer their doors, we quickly became their customers and started selling their insights into how the pandemic permanently changed coffee on our busy online coffee their businesses. The answers keep coming. Here, a equipment store. Within days, we were few more of their responses. able to offer them a lifeline and a way to generate income. We had never sold coffee beans on our site before, but we NITIN JAIN benefit is increased productivity. now have Canada’s largest selection PRESIDENT, GJG INTERNATIONAL Produces custom parts for original Distractions and interruptions are of specialty coffee beans, and it’s our equipment manufacturers reduced, with staff consolidating fastest-growing category. issues for discussion at meetings. And In this past year, we made the communication with our team in India SOUROV DE decision to permanently work has been improved significantly as MANAGING PARTNER, remotely. We work with companies they now join weekly video meetings. STRYVE DIGITAL MARKETING globally, so we have ensured our In fact, our future hiring is now Offers digital marketing services for businesses systems allow remote access for staff. unrestricted by proximity to an office. When COVID-19 forced us to work In-person meetings are overrated. from home, we adapted quickly. But in JENNIFER FARNELL They involve travel time, costs and keeping employees safe from COVID- CO-FOUNDER, EIGHT OUNCE COFFEE are just inefficient. Not to mention, it 19, we realized that remote working is Sources, imports, distributes and retails limits our customer base. If our clients specialty coffee equipment more efficient. The obvious benefits are accepting of video meetings, were the elimination of office costs When the pandemic first hit, and it will open us up to bigger client and commute time. But the intangible our most loyal customers (Cafes and opportunities, especially in the U.S. TL;DR SMALL BUSINESSES WANT TO OWN YOUR FEED 3 Mastering marketing on Facebook, Instagram, Google and other digital platforms is the top priority in 2021 for business owners, according to a survey by the Canadian Federation of Independent Business. BUSINESS PLANS 2021 REACH MORE CUSTOMERS WITH DIGITAL MARKETING 22% PAY DOWN DEBT 21% 05/21 ADD NEW REVENUE CHANNELS 20% IMPROVE WEBSITE 20% REDUCE OPERATING COSTS 17%

1 Workers are getting better feedback A Gallup poll found more workers now receive assessments Consumers let it from their managers at least a few times a week. RECEIVE FEEDBACKRECEIVE MEANINGFUL go to voicemail FEEDBACK A Pew Research Center poll found a majority of Americans won’t answer 26%45% 19% 28% a call from an unknown number. WHEN AN UNKNOWN 4 NUMBER CALLS… 2019 2020 2019 2020 PICK UP 2 CHECK VOICEMAIL DON’T CHECK VOICEMAIL BANKERS’ Men are now AGES less likely to 18-29 30-4950-64 65+ HOURS 5 18% 16% 20% mentor female 25% ARE colleagues BRUTAL “Male managers are significantly less likely than female managers to Average bedtime for first- mentor or interact one-on-one with female employees. The implication year analysts at Goldman is that female employees may face a mentoring disadvantage in the 62% 67% 70% 66% Sachs, according to wake of #MeToo. The adverse effects for career growth could be 12% 14% 14% 13% an internal survey: 3 A.M. profound.” —Michael T. French et al., Applied Economics PETS ARE AN INVESTMENT IN HAPPINESS “A field study demonstrated that pet owners who were randomly assigned to spend $5 on their pet reported greater happiness than those who 6 were assigned to spend on themselves or another person—an effect specific to feelings of happiness rather than to mood more generally.” —Michael W. White et al., The Journal of Positive Psychology

7 THE TOP FIVE

Ankara’s housing 1 2 34 5 market is on fire Canada placed 11th on the Global TURKEYNEW SLOVAKIA RUSSIA LUXEMBOURG House Price Index prepared ZEALAND by Knight Frank, which tracks year-over-year percentage change.

4 MAY 2021 / REPORT ON BUSINESS

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What’s in a name? the most popular option. The cash incentive was next. Nimeld came decidedly last. Stereotype-fuelled unconscious biases can drive It turns out that, when all else is equal, feminine consumers to prefer brands that sound a certain way brand names have an advantage in the marketplace, thanks to a stereotype-fuelled unconscious bias, according to a series of studies from researchers Y In a recent study, university students were given the at the universities of Calgary, Montana, HEC Paris option to take home either a bottle of hand sanitizer and Cincinnati. Research shows that people asso- NDERME

VA or a small amount of cash. (It’s worth noting this ciate femininity with warmth. That, in turn, makes

RA exercise took place before COVID-19.) The sanitizer a connection to related traits like sincerity, trust- CA was labelled with two made-up brands. The bottles worthiness and good-naturedness. “A brand with ION read either Nimilia or Nimeld—that is, names with no inherent gender can be imbued with masculine AT

TR linguistic characteristics that were either feminine or feminine stereotype traits (like warmth) via US or masculine. For the 150 subjects, Nimilia proved its name—which managers can leverage to influ- ILL

MAY 2021 / REPORT ON BUSINESS 7 People prefer an Need to know ice cream ence brand outcomes,” conclude the called Frosh “i” in pip) for two-seater convertibles and researchers, who published their those with back vowels (shaped with the findings in the Journal of Marketing. over one back of the tongue toward the soft palate, A name’s linguistic gender isn’t like the “o” in pop) for SUVs. The former always obvious. It is conveyed uncon- sounds are thought to be associated with sciously through a word’s length, called concepts like “fast” and “small,” and the sounds and stress. Feminine names latter with “large” and “soft.” tend to be longer, end in a vowel Frish Importantly, all of the above effects are and stress second or later syllables. rooted in how we make unconscious con- Nike, Ikea and Coca-Cola are all lin- because nections. “There seems to be an automatic guistically feminine—and according process of association between a name to this research, all benefit from the and the warmth attribute; that is, people same halo effect. the “a“aww”” don’t seem to be aware of the gender asso- The researchers started by ana- ciations a name brings up. And that gives lyzing the Best Global Brands list sound brands a lot of flexibility,” says Ruth Poga- published by Interbrand, an inter- car, assistant professor at the University national consulting company, which of Calgary’s Haskayne School of Business. ascertains value using a mix of finan- implies In other words, Nike can brand itself as a cial metrics and consumer loyalty. leader in a unisex product like sneakers Going through 20 years of data, the creaminess while still benefiting from the warmth of a academics found that top-ranked linguistically feminine name. brands—including the aforemen- But the halo effect conferred by a femi- tioned giants and others, like Honda and BMW—are about one and nine name is neutralized when a product a half times more likely to have linguistically feminine names. More- is primarily used by men or is strictly utili- over, a company’s Interbrand rank was more closely tied to name gen- tarian, like bathroom scales and batter- der than the number of years it had been in business. Four subsequent ies. The researchers suspect the warmth studies measured subjects’ reactions to brand names in a lab setting; response is emotional and that judgments these trials supported the theory that feminine labels meant increased about the latter product categories may be brand loyalty for everything from hand sanitizer to YouTube channels. more cognitively driven. Our brains have evolved to prioritize warmth above all else when It’s worth noting the feminine effect making snap decisions, according to work by social psychologist applies primarily to made-up words. The Susan Fiske. Think of early Homo sapiens encountering strangers on meanings of real ones blur the effects of the savannah. A fast assessment of warmth—do they mean well or are their linguistic gender. And of course, in they angling for a fight?—would distinguish friend from foe. (The next the real-world marketplace, a host of other most important judgment is competence; if a stranger isn’t warm, we factors play into a brand’s image. There- have to figure out how much of a threat they pose.) fore, it’s probably not worth changing the Other studies have considered how to use unconscious metaphori- name of an existing product to a more lin- cal associations to make brands more desirable. One study found guistically feminine one. “These effects that people preferred an ice cream called Frosh over one called Frish occur where the brand name is unknown, because the “aw” sound implies creaminess. Research out of the Uni- so you’d use these principles when you’re versity of Alberta found names with phonetic repetition, like Tutti first trying to develop a brand name,” says Frutti, create a positive emotional response. Another from HEC Shrum. And since the research is based on Paris—written by L.J. Shrum and Tina Lowrey, two of the co-authors of English linguistic conventions—and cul- the current study—found that people prefer names with vowels made tural stereotypes around gender observed with the front of the tongue raised to the roof of your mouth, like the in North America—the effect wouldn’t necessarily hold true everywhere. A name obviously isn’t the sole determi- nant of success. “Even bad brand names UGLY? DELICIOUS can build traction and become beloved for many other factors,” says Shrum. Con- sider Smucker’s, the jam and jelly maker. Five years ago, Loblaws launched a line of “Naturally Imperfect” fruits Its marketers seemed to intuit the brand’s and vegetables, joining other grocers in trying to reduce food waste by sell- challenging name and opted to lean in, ing consumers on ugly produce. A new study from the University of Brit- giving us the famous slogan: “With a name ish Columbia’s Sauder School of Business suggests this is savvy market- like Smucker’s, it has to be good.” Still, for ing. Researchers found that consumers normally view imperfect produce fledgling firms looking to make a name for as not only unpleasing to the eye, but also less tasty and nutritious. But themselves, the linguistic details are cer- that assumption can be overcome, simply through labelling the product as tainly worth considering. Avoiding words “ugly.” By admitting an apple or carrot isn’t beautiful to behold, it signals to that rhyme with “yuck” is probably a good shoppers that the imperfection is merely skin deep. place to start. /Liza Agrba

8 MAY 2021 / REPORT ON BUSINESS

Congratulations to Iain MacNeil $%#)' *)&)"() -'!+),

2021 Best ExecutiveAward in Sales &Marketing

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We’re proud of Iain’s achievements. BIG IDEA anxiety are triggering a wave of requests for stress leave, despite Reuniting with the flock work-from-home arrangements. “I absolutely know businesses New research highlights the challenges faced by that are more inclusive are better employees returning after a medical leave. Lessons businesses. COVID has brought from the pandemic might improve the process that to light,” says lawyer Ken Fredeen, Deloitte Canada’s senior partner of accessibility s someone with a congenital spinal disorder and and the former chair of a 2012 chronic pain, Jewelles Smith, a PhD candidate in federal panel on disability in the B.C., knows all about the obstacle-strewn world of private sector. workplaces and the halting ways in which manag- Based on his years of experi- ers respond to employees with disabilities. There ence in this space, Fredeen con- are the stigmas, the poorly planned responses to cedes that it’s still not so easy to accommodation requests and the unspoken pres- walk the talk. “It’s complicated sure to show up for work even on the bad days filled and, to be honest, most organiza- with discomfort. tions struggle with it.” So for Smith, the year of working from home New research from the Uni- spurred by COVID-19 has been, as she puts it, versity of Calgary and Queen’s “amazing.” Like most disabled people, her living University, though conducted space is set up well for her particular needs, so the before COVID-19, offers some pandemic has brought greater productivity, less important insights into the ways disruption and an abrupt end to employers’ long- in which managers and compa- standing reluctance to grant work-from-home nies are dealing with physically requests. “I hear this across the board,” says Smith, and psychologically disabled who is the spokesperson and chair of the Council employees. of Canadians with Disabilities. She often relies on The study, led by PhD candi- voice-to-text software, which doesn’t work well in date Zhanna Lyubykh and Nick open-concept offices. “People with disabilities,” Turner, distinguished research Smith stresses, “know what they need.” chair in advanced business at the Despite almost two decades of accessibility laws Haskayne School of Business, and their enforcement by human rights tribunals, focuses on employee disability many Canadian workplaces still don’t do especially disclosure and managerial preju- well in hiring or retaining people with disabilities. dices in the context of “return For this group the employment rate is about 49%, to work”—both highly topical compared to 79% for the general population. Yet subjects as Canadians begin to advocates like Smith hope the pandemic has been a trickle back into offices. societal wake-up call on chronic workplace issues Their research, based on inter- ranging from mental health stigmas to allowing views with 240 managers, found telework to “presenteeism,” the once accepted but that employees with physical dis- CK

TO now epidemiologically scorned practice of getting abilities tend to fare better than IS sick but showing up at the office anyway. Others say those with psychiatric illnesses, GE elevated levels of pandemic-related depression and who still tend to face increased IMA

MAY 2021 / REPORT ON BUSINESS 11 PHYSICAL Need to know 5.44

4.7 tion grows, so will the awareness D IA G of managers and co-workers, pre- N IC R O dicts Lyubykh. “We’ll see some T 4.5 S I IA S positive differences in how peo- H 2.18 P C E Y 2.64 N ple acknowledge those things.” S 5.33 D P 5.14 I N It’s entirely possible the G post-pandemic workplace may become more empathetic; employers will almost certainly 4.26 2.3 be more receptive to work-from- home accommodation requests than they were before COVID-19. MANAGERS’ ATTITUDES TOWARDS EMPLOYEES, BASED ON DIAGNOSIS “There’s already been a change,” (SCALE OF 1-7, 1=LOWEST) says Ferguson. But Fredeen COMMITMENT TRUSTWORTHINESS AGGRESSIVENESS offers a caution: Firms shouldn’t inadvertently isolate their dis- abled employees at home and skepticism, ostracism and doubts a worker with physical disabili- shirk the responsibility of ensur- about their commitment to the ties. Yet despite the benefits of ing an integrated workplace. workplace. “People aren’t neces- this workaround, the practice of Ferguson and Fredeen both sarily looking for an opportunity withholding some medical data note that while companies are to discriminate,” says Lyubykh. is legally ambiguous. legally obligated to remove Rather, adds Turner, managers Fredeen points out that many obstacles, there’s an equally bring implicit biases into those people won’t disclose their men- compelling business case to be relationships, and the result is tal health problems out of a fear made for providing a barrier-free that employees dealing with men- of being stigmatized and instead work environment: It reduces tal health issues may get passed try to soldier on. In his view, workplace disability claims, but over for promotions, denied par- companies that want to ensure also creates opportunities to ticipation in interesting projects genuine accessibility must put in draw on the untapped talents of and so on. “Over time,” Lyubykh place policies that don’t depend highly capable people who’ve says, “those things add up.” solely on the presence of com- been shunted to the margins of Donna Ferguson, a clinical passionate managers or even a the labour force, either for logis- psychologist at the Centre for high-EQ CEO, although enlight- tical reasons or due to bullying Addiction and Mental Health ened leadership is crucial. “It has and prejudice. who specializes in work stress, to be a system,” he says. “It can’t Perhaps the world of work says employees returning after a be based on a champion.” has changed since March 2020. leave related to a condition such The ingredients include ongo- Smith, who describes herself as as stress or depression often face ing training and education, “forever hopeful and optimistic,” strained relationships with their accessible office design, flexible argues that employers should managers or co-workers. “If the accommodation policies, gener- use the lessons of the pandemic manager doesn’t foster a healthy ous employee assistance plans to make the changes disabled relationship in the workforce, and intentional recruitment individuals have long sought, then the hoped-for prognosis for efforts designed to find and hire such as reframing work around getting back to work is going to people with disabilities. “Accom- deliverables instead of clocking be guarded to poor.” modation is not going to cost as a nine-to-five day in a specific One way of mitigating negative much as you think,” says Smith. place. “The main point,” she says, responses and smoothing the Indeed, as the number of dis- “is that we need to keep talking transition, according to Lyubykh abled employees in an organiza- about it.” /John Lorinc and Turner, is to limit the medi- cal information shared with managers. Their surveys showed Big Idea is produced with the support of our advisory panel that managers dealing with employees who have psychiatric disorders worry about danger W VIE

and disruption. If, however, the RE medical information provided Yrjo Koskinen, Associate Dean, Research; Yolande Chan, Associate Dean, Haskayne School of Business Research at Smith School of Business to the employer only states that ONNEL Stephane Massinon, Director, Public Nancy Evans, Executive Director, a diagnosis is “pending,” manag- Relations; Haskayne School of Business Marketing and Communications, PERS ers tend to treat the individual Smith School of Business. CE no differently than they would UR SO

12 MAY 2021 / REPORT ON BUSINESS Leadership that brings out our best.

Mona Malone Chief Human ResourcesOfficer and Head, People and Culture Winner,Report on Business Best ExecutiveAward (Human Resources)

Congratulations to BMO’sChief Human ResourcesOfficer and Head, People and Culture Mona Malone forwinning the 2021 Report on Business Best ExecutiveAward in the field of Human Resources.

Thanks to Mona’s visionary leadership,our energized, purpose-driven cultureisinspiring our people to deliver stronger results for the customers and communities we serve. To learn more, visit bmo.com. Need to know

the company,” he says. The mental health of these people should automatically outweigh any (faux) good morale you’re offering everyone else, especially if your optimism turns into an empty promise. “There are no real positives for a company to put a stake in the ground for September—and so many negatives,” says Froman. If you want to generate legit good morale, lean into the vaccination rollout, emphasize the light at the end of the tunnel and demonstrate the ASK AN EXPERT kind of optimism that could Cake, boss benefit your team. How can I better my (now entirely My vice-president just retired after 43 years with the remote) negotiation skills? company. How can I commemorate the occasion? Negotiation coach Fotini Iconomopoulos’s job isn’t as Last spring, bosses asked the same restaurant. Lunchtime dramatic as it is portrayed on how to take in-person events or happy hour are still best, adds TV. “Most negotiations aren’t and transform them into Grenier, and rather than four like what you see on Suits— virtual experiences. Now that hours that drag, schedule an they’re just conversations,” everything is online, the question hour or two. Then, let it run over says the Say Less, Get More has become: How do you make it because people are having fun— author. Gone, for now, are long special? “Think first about who just like an in-person party from lunches and after-work drinks, the person is and what you want the days of yore. sure, but negotiating virtually to tell them,” advises Shawn has its perks. “A ll that time and Grenier, a virtual event producer. Employees are asking when we’ll effort that went into getting Build a theme around your be returning to the office. Should I there, navigating elevators and message, and then consider the set a target that might be wrong? waiting in someone else’s office guest list. Adam Froman of Canadian has been totally replaced by “The on-camera sweet spot research firm Delvinia spent hopping on Zoom,” she says. is between six and 20 people,” the pandemic studying “COVID More important, both sides now says Grenier. The A-list is bosses decision paralysis.” If you enjoy a “home-court advantage,” and friends. B-listers should don’t know the term, you’ll as they say in sports. So, she pre-record messages, which can recognize its symptom: the says, maximize your court: be edited and curated to create complete inability to make a “Choose your space, adjust an event more engaging than decision because of uncertainty the camera so it’s at eye level, your typical Zoom. Grenier has and possible blowback. That invest in a light that makes also seen events that include might sound like an obstacle you feel great—all things the everything from trivia games to to overcome. But, in this case, other person’s subconscious live bands this year, but there’s it might be best to listen to mind will be picking up on.” no shame in keeping it simple. your gut and avoid making a The overall goal, as always, Whatever you do, choose an call—particularly when your is personal connection and organizer and MC, he says. colleagues might see things building trust. But you should “These should be two different differently. “If you have 100 turn up your interpersonal Y people. The organizer connects people, you have 100 points of skills. “Use lots of eye contact

people and solves technical view,” explains Froman. “Even and genuine compliments, and KENDR problems; the MC keeps the if 90 of them are ready to come smile more than usual,” suggests M C conversation going.” If your back, 10 are not.” Having 10% of Iconomopoulos. And while JOE budget allows it, sending a staff feeling unsafe will produce it’s (sometimes) awkward, a face- ION AT

catered box of goodies to guests a massive effect. “They’ll send to-face video call beats email TR will connect them like they’re at ripples of negativity across every time. /Rosemary Counter US ILL

14 MAY 2021 / REPORT ON BUSINESS

16 MAY 2021 / REPORT ON BUSINESS Need to know

THE EXCHANGE Curve balls Blue Jays president Mark Shapiro hasn’t had an easy runsince moving to Toronto five years ago—and that’s without considering the financial ravages of COVID-19. But this season, he’s ready for a big hit

BY TREVOR COLE

Five years ago, Mark Shapiro took over a long-struggling team at the worst possible moment—as it was enjoying its greatest success in decades. Rather than being hailed as a saviour, Shapiro—an American—was seen as an out- sider threatening change. There was little the former Cleveland president could have done to win over Blue Jays fans, and the one thing he did do—try to wring more success out of an aging team—delayed a necessary rebuild, which just made his job harder. He also struggled to adjust to an ownership model very different from the one he’d known. But Shapiro survived. Over the past five years, he has instilled a new organizational culture and figured out where the Jays fit in the Rogers portfolio. He has overseen a complete remodel of the team’s Florida training facility. Its minor league system is thriving, and its major league roster is full of promise. Now, with a five-year contract extension in hand, Shapiro seems poised for suc- cess on his terms. He spoke to us from the Jays’ player development complex in Dunedin.

First of all, congratulations on your structure I’d ever known was 1. Edward Rogers new contract extension. one person in one family, (son of Ted) is the Oh, thank you. I thought which is not that unusual for chair of Rogers Communications. you were going to say sports. To shift from that to an congratulations on our player extremely large, publicly held 2. Current development complex. company, and not to have had CEO Joe Natale succeeded We’ll get to that. Who were you any experience in how a publicly Guy Laurence working with on your extension? held company thinks, acts and in April 2017. Primarily Edward Rogers. makes decisions, what it means (1) I have a strange reporting to have shareholders, what it structure. I report to the C-level means to have a board, and what executives at Rogers, periodically it means to be a tiny piece of that to the CEO. Obviously we’re a company’s portfolio—it took tiny piece of what the CEO has a little while. I think I wasted to oversee, so Edward is the most energy early on trying to fight consistent interface. the wrong battles. Once I started

WHITTMAN How has your relationship with realizing that it’s never personal, CH

TK Rogers evolved since you started? and I understood better how ZA TK It’s changed. There’s a different to deal effectively within that

APHS CEO now than there was structure, it’s been nothing but APHS GR

GR then (2). But it’s been more positive and supportive. TO TO my evolution. You have to What’s your assessment of how PHO PHO understand, the only ownership major league baseball has handled

MAY 2021 / REPORT ON BUSINESS 17 Need to know

the COVID-19 crisis, compared to $30.2 BILLION 3. Having played ownership to say, “You need to other professional sports leagues? the abbreviated pull back.” Instead, we went out We had a unique challenge in 2020 season and signed the biggest contract in Buffalo, the that it was the worst possible Blue Jays plan in the history of the Blue timing for baseball. We were two ROGERS COMMUNICATIONS’ to play the first Jays—George Springer, US$150 weeks away from beginning our MARKET CAP two months of million. We increased payroll the 2021 season season. The other major sports using Dunedin as dramatically. (5) But this has all either hadn’t begun yet, like the $2 BILLION their home field. been part of a multiyear plan, NFL, or were already very close and we are acting as if nothing to their playoffs, like the NHL FORBES’S VALUATION OF THE 4. Dunedin has changed. TORONTO BLUE JAYS is located in and NBA. They had booked a lot Pinellas County. There have been other recent of revenue. We hadn’t booked According changes for the organization. One a dime of revenue. And all of a place to be during the pandemic. to the non- that shocked me—you eliminated profit website sudden we’re shut down, and I wouldn’t look at Dunedin dedicated radio broadcasts. (6) Covidactnow.org, we’re playing in front of no fans through the lens of Miami Beach. Pinellas county No, we didn’t do that. We are for an entire season. Incredible We’re not in Miami Beach. (4) has “very high run completely separately from challenge. I think it was There’s a saying, “Don’t let a crisis vulnerability”— Sportsnet and had nothing to do more so, in fact, important to play a shortened go to waste.” The Rogers Centre than 91% of with that decision. Zero say. We season. And I think it was largely has been vacant for a year. Have counties in the were informed of the decision, pulled off. you been able to take advantage U.S. As of March and opinion was asked. That’s it. Why was it important to do that? of that time at all? 29, there had What was your reaction? been 2,266 cases If you look at the ratings, almost We had a food drive. We recorded in the My reaction is, I don’t profess I every single sport is down 5% occupied the entire floor of the Dunedin area. know other people’s work. I’m to 10%. It has had some impact centre and all of the concourses, not gonna criticize Sportsnet. My on peoples’ avidity, and on their and helped with food insecurity 5. The Blue Jays hope is it’s a one-year decision. now rank 13th level of attention and focus. To throughout the entire country. in MLB, with a That it’s COVID-related, and just disappear for a year would We’ve already expressed that US$133-million we’ll see how the year goes. have been dangerous to the we want to make it a location payroll (up from Let’s talk about Dunedin. It’s US$118 million at health of our players, for one. for vaccine distribution, as soon the end of 2020). wonderful serendipity that you And certainly dangerous to the as we start vaccinating people needed a top-grade facility to play health of our brand. Not the Blue at a greater pace. 6. Fans listening in, and you suddenly have one in Jays, but Major League Baseball. What about improvements to to Blue Jays Dunedin. Where does it (7) rank games on the Did you ever get involved in Rogers Centre? radio will now now in terms of the major league conversations with government We’re not undergoing a large- hear audio from training facilities? about allowing the Blue Jays to scale improvement, but for the TV broadcasts. The training complex—six full play in Toronto? (3) first time in the history of the fields, two half-fields, a covered 7. The new Quite a few conversations at stadium, the turf will be fixed. complex cost practice field, a running hill, a the city and provincial level. We used to roll it up, because the just over US$100 115,000-square-foot development And some conversations at stands rotate. We’re no longer million, funded building—I would think we’re jointly by the Blue the federal level. We did make going to rotate the bowl. The turf Jays, Dunedin, the best in Major League a proposal with very rigid will be a better playing surface, Pinellas County Baseball. The challenge in protocols—basically a bubble better quality, better maintained and the State of Dunedin was finding enough within Rogers Centre for both and a truer game experience. Florida. As part land to put everything in one of the deal, the home and visiting teams. But We’ve redone the batting cages. Jays committed place. Our stadium’s still an cross-border travel, and playing What was probably one of the to spring training 11-minute drive away. It’s now in places that had high infection worst batting cages in all of in Dunedin for the been renovated to the point rates, were too much of a threat baseball will be one of the best. next 25 years. that it’s probably not the best, to public health. We put in a new sound system but upper third. Has it changed recently? for our fans last year, but no What did you learn in the process We haven’t made a proposal one’s ever heard it other than us. of transforming Dunedin that you yet, so I don’t know where they How have the Blue Jays been can apply to Rogers Centre? stand on it right now. I do feel affected financially by the crisis? They’re very different projects. somewhat more optimistic than We’re gonna lose well more than This project is 95% about the I felt last year, because we’ve $100 million this year, and we players. That project is 75% had zero cases all spring. Not lost, like, $100 million last year. about the fans. Fans want to one. And in the next few weeks, It’s been probably the strongest come to ballgames for different vaccines are gonna be available display of our ownership that reasons. There are people who to not just our players, but their I can imagine, because we’ve want to bring their kids, people families and our staff. never deviated from our plan. It who want to be at the coolest Florida isn’t necessarily the ideal would have been reasonable for bar in Toronto, foodies who

18 MAY 2021 / REPORT ON BUSINESS most important thing, and they’ll lead to winning if you do it right, and consistently, over time. Your major acquisition in the off- season, George Springer, arguably benefitted more from the cheating system in Houston than just about any other player there. What evidence do you have that he benefitted more than other players? One analysis of the bang system used to communicate pitches to batters found there were more bangs for Springer at-bats than want to go to the best food court 8. An MLB look at subjective information, just about any other player. and still see the game. We don’t investigation like scouting reports. We’ll bring That seems pretty anecdotal have that diversity and depth found that in objective analysis, looking to me. in 2017, the of entertainment experience Houston Astros at projected performance and Let’s put it this way: He was a right now. A renovated or new engaged in an declining performance. We’ll leader in that clubhouse. What Rogers Centre would be a much elaborate sign- factor in the medical risk was your thought process around stealing scheme different fan experience. And to warn batters projected over the length of bringing that person in? it would certainly have more about upcoming a contract. We’ll look at what We’re sure about the person. premium seating. pitches. Signs financial value we can attach George Springer is the guy that You’ve been a president or GM for were spotted to acquiring a player. We’ll had a debilitating stutter that via TV and 20 years. How has your approach communicated look at character, make-up and caused him to miss an entire to leading a team changed? to batters using personality. We’ll talk to people year of high school, but fought I am reminded very frequently a system of who have played with him, to overcome that adversity. And of just how unimportant my bangs on dugout who he’s played for. We’ll talk he’s dedicated a lot of his adult trash cans. individual leadership is to to equipment guys, clubhouse life to impacting other kids our success. When I became a 9. A week before guys, trainers, everyone we with impediments and learning GM, I would have thought our the start of the can, to build a model of: Will disabilities. We’re sure he is regular season, success would be dependent the Blue Jays’ that person fit in? Will he be a obsessively focused on getting on my decision making and my projected closer, plus? How does he fit into our better. We’re sure he’s humble. leadership. Now, I feel like our Kirby Yates, clubhouse environment? When We’re sure he’s open-minded. success is dependent on our underwent you go through all that rigour, We’re sure he cares about his Tommy John collective intellect, our collective surgery. He’ll Trevor, it is very, very rare that teammates at a deep level. And experiences, our collective be out for the it’s not an obvious decision for we’re sure he’s driven to win. We perspectives, and ensuring it’s season. everybody. When you short- didn’t bring him in lightly. We an environment where people circuit the process and start to did a lot of research, and we’re are aware that their work is insert personal opinion, that’s confident of his character and meaningful and our success is when disagreements come in. who he is. dependent upon them, and that So, if a cheating problem like the Good luck with the season. they feel genuinely empowered. one in Houston (8) emerged, how You need a new closer. (9) I hope Take me into a meeting of the would you deal with it? you’ve got a plan. Blue Jays executive. How is a Very hard hypothetical to deal We’re gonna be okay in the decision made? with. But clearly it would be bullpen. I still will have sleepless A decision’s made by ensuring a breakdown in culture. So nights worrying about the we’re making informed, data- you’d want to dig to see where rotation. It may be an area we driven decisions that are that breakdown happened have to address before things are preferably model-based, and that and why. Was a message—that done. But this year’s gonna be we do everything we humanly we value your ability to drive another step. We’re on a really can to remove bias. And that we wins over everything else— good trajectory. factor in all the variables. What’s communicated down through an This interview has been edited the benefit, what’s the risk? entire organization? If so, who and condensed. And then two things: How does was communicating that? Why that fit into our plan, and is it did people feel that way? And Trevor Cole is the award-winning author consistent with our values? where’d that breakdown happen? of five books, including The Whisky How is disagreement handled? A good process and a strong set King, a non-fiction account of Canada’s Take a player decision. We’ll of values that link all of us are the most infamous mobster bootlegger.

MAY 2021 / REPORT ON BUSINESS 19 At EllisDon, we are all about creating and providing great careers to one another, and Kieran Hawe is atestament to this.

Over his manyyears of service, Kieran has empowered those around him to thrive through his unmatched leadership and mentorship,while continuing to champion the company’s unique cultureand core values.

EllisDon is proud to congratulate Kieran Hawe for being arecipient of the 2021 Best ExecutiveAwards.

Kieran Hawe Executive Vice-President &Chief Operating Officer Over the past turbulent year, we’ve seen the importance of determined, creative and empathetic leadership. Drawn from hundreds of nominations, this second annual honour roll celebrates the top people working in the C-suite or at the senior and executive vice-president levels. While CEOs often get the credit, these individuals demonstrate that captains of industry don’t succeed without talented lieutenants.

Carley George, vice-president of marketing, Calgary-based District Ventures. Page 30 BINSION RO UN SHA PHOTOGRAPH

MAY 2021 / REPORT ON BUSINESS 21

TOK OF THE TOWN

TIKTOK’S POPULARITY SKYROCKETED DURING THE PANDEMIC. DANIEL HABASHI’S JOB IS TO HELP CANADIANS GET FAMOUS, 60 SECONDS AT TIME

BY STACY LEE KONG

PHOTOGRAPHS BY SAHAR RANA

Here’s the thing about TikTok. old Montreal musician with hipster year later, he has three million follow- Even if you don’t use it—or even, style and dark, Fabio-like locks who ers, was recently profiled by Rolling let’s be honest, fully understand recounts internet drama to catchy, Stone and, back in January, collabo- what it is—you’ve likely come across self-produced pop songs. (His rendi- rated with Jimmy Fallon and Alison one of its Canadian stars on your Ins- tion of two people disagreeing over Brie on an internet drama video that tagram feed, shared on Facebook or, how much a horse weighs might actu- premiered on The Tonight Show. increasingly, covered by major media ally be perfect.) He started posting The app is rapidly becoming a major outlets. Take Lubalin, the 30-year- videos during lockdown; less than a player in the Canadian entertainment

MAY 2021 / REPORT ON BUSINESS 23 space. The company does not release through instant messaging. “The abil- brands on the platform. James Jones, market data, but according to Statista, ity to discover and connect with like- a onetime breakdancer from the Tall- TikTok had 315 million global down- minded individuals from around the cree First Nation in Alberta, began loads in the first quarter of 2020, an world through technology has always using TikTok to share cultural knowl- increase of 67.6% from the first quar- fascinated me.” edge and affirmations for Indigenous ter of 2019. Hootsuite’s research arm, It’s no wonder, then, that Habashi people, often through videos of him- We Are Social, reported the service found a home at TikTok, which is self hoop dancing to hip hop; Boman- had 689 million users worldwide by known for bringing like-minded indi- izer, then a media student in his last January 2021, placing it behind Face- viduals together. The service has year at Ryerson University, had gone book (2.7 billion), Yo uTube (2.2 bil- always been about community build- viral for his parodies of reality TV lion) and Instagram (1.2 billion)—but ing, beginning its life as Musical.ly, and pandemic life. Habashi sees his well above Snapchat (498 million), a Chinese social media service that mission as not only amplifying their Reddit (430 million) and Twitter (353 allowed users to film and share short voices on TikTok but also looking for million). And its growth is promis- videos of themselves lip-synching to a ways to support off-app success. ing, especially since it’s now attract- catalogue of a million songs. As with “I want to see them bigger than ing users beyond its teenage target its successor, users could employ TikTok,” Habashi says. “I want to see audience. Data provided by analytics other users’ funny monologues, sing- people in big Hollywood pictures.” company Comscore shows the num- ing or other sounds in their own vid- Some of that is already happening. ber of adult users more than doubled eos, “duet” with one another using Last April, Bomanizer, whose real between March 2019 and March 2020. split screens and apply pre-set fil- name is Boman Martinez-Reid, signed It’s no wonder the company opened ters to hilarious effect. The startup to Creative Artists Agency, which also a Canadian office late last year—or launched in China and the U.S. in 2014 represents Beyoncé, George Clooney that it hired Microsoft, Instagram, and quickly gained a foothold among and Kanye West, while other creators Facebook and Soho House alum American teens and tweens, who in the U.S. have appeared in commer- Daniel Habashi to head it up. Born loved the interactivity and creativ- cials, signed modelling contracts and in Montreal to Egyptian immigrants ity it offered. By the following year, even scored makeup lines. But part of and raised in Mississauga, Ont., he it was No. 1 in Apple’s app store in 19 the support TikTok Canada can offer has a high-stakes job at a crucial countries. Soon after that, it launched will come from a physical office space time. Overall, the app doesn’t seem Live.ly, a sister app devoted to live- and production studio that is in the to be generating much revenue yet. streaming, and began inking adver- works in Toronto’s Liberty Village A November 2020 Reuters article tising deals with Coca-Cola and film neighbourhood, Habashi says. reported that, while its Chinese par- studios, on top of signing licensing “We wanted to make sure that at ent company was on track to generate agreements with Apple Music and our official headquarters, there was a $27 billion in ad dollars that year, Tik- other major labels. home for creators, where they’d have Tok itself contributed little to its bot- Enter ByteDance. The Chinese tech access to not only the team but also a tom line. And although there’s steady company had launched Douyin, an full production studio to create con- growth in Canada, there’s also a high app similar to Musical.ly, in 2016; it tent at the calibre of their talent. I felt degree of skepticism about any firm accumulated 100 million users in its like opportunities were somewhat with Chinese roots. While its popu- 12 months of existence. Hungry to limited in the region.” larity spiked during the pandemic, expand overseas, ByteDance released It’s unclear whether this studio will the novelty may wear off as those new a version of Douyin, called TikTok, function in the way Habashi hopes. adult users get their vaccines and ven- in other Asian countries in 2017 and, This isn’t the first time a social media ture outside again—or its base of teen later that year, acquired Musical.ly for platform has tried to build a studio users move to the next hip thing. a reported $800 million to $1 billion. for creators in Toronto—YouTube Then, in August 2018, it merged Musi- opened a 3,500-square-foot space at cal.ly and TikTok, and made the new, Toronto’s George Brown College in As his resumé might indicate, Habashi upgraded app available worldwide. 2016, following the creation of simi- has always loved getting his hands on Within a month, it had surpassed lar facilities in eight cities around the the next, coolest thing, whether that Facebook, Instagram and Snapchat in world. But by 2019, it had announced it was a video game, a BlackBerry or, monthly downloads, and users real- would be shuttering the Toronto site later, an iPhone. But it was the com- ized just how easy it was to build an in favour of temporary pop-up loca- munity surrounding these products audience on the platform thanks to tions across the country, which was that inspired his career. “I remem- its algorithm, which was designed to more in line with its global strategy. ber being a young kid [who was into] encourage discoverability. But for Habashi, a physical space is skateboarding and going to the skate By the time Habashi joined the key. It’s not meant to be just “a nice shop to connect with the commu- company in 2020, fresh off two years office with nice desks,” he says. “It’s nity of skaters in my area,” he says. as the chief marketing officer of pri- important to make it richer. It can be He found a similar experience later vate members’ club Soho House, even a home for brands, for creators [and] in online music forums and then more Canadian creators had built for employees themselves.”

24 MAY 2021 / REPORT ON BUSINESS ing speculation from tant, yet he had to meet prospective some senior U.S. govern- employees through Zoom. ment officials that it may That’s what happened with Van- be sharing data about essa Craft, the former editor-in-chief Americans with a foreign of Elle Canada, who left the job to government. Former U.S. become TikTok’s director of content president Donald Trump partnerships, Canada. “It was very fanned the flames of sus- apropos of our time,” she says. “I was picion when he signed at the cottage. [It was] the irony of an executive order that talking to the GM of TikTok, the most threatened to ban the app innovative tech company in the world, if ByteDance did not find while I’m running on a dirt path trying an American buyer for its to find a WiFi signal.” U.S. operations. But the Luckily, there wasn’t any Zoom panic has since petered fatigue during their conversation. “I out, both because a federal hung up the phone and I thought, You judge blocked the Trump know, that was unexpectedly fun,” she administration’s attempt continues. “I trusted his vision, and to ban TikTok, saying it he was obviously looking outside of had “likely overstepped” the traditional hires. He was looking its legal authority, and at having a diverse leadership team, because, as some privacy with diversity across races and gen- experts pointed out, any ders and so on, but he also looked for concerns over TikTok diversity of experience.” also apply to other social But it didn’t become clear just how media apps, including different a leader Habashi would be Facebook and Instagram. until they actually began working When Habashi talks about commu- Still, from a regulatory perspective, together. Craft quickly noticed some- nity, he doesn’t just mean the creators Habashi reiterates that TikTok does thing strange about how he ran meet- who post on the app. He’s also think- not operate in China (there, it’s Dou- ings: He never interrupted, or if he did, ing about the audience who’s con- yin) and points out that “Canada, in he apologized right away. Eventually, suming that content, who, according particular, has a lot of independence she asked him about it, and he told her to Statista, were spending an average in terms of day-to-day operation.” that when he was younger, he had been of 858 minutes per month on TikTok And Canadians can take some deeply affected by seeing his mom by March 2020, almost double the comfort in the company’s corporate interrupted or silenced. He’d pledged time they spent just five months prior. structure, according to Pengfei Li, an never to do that to anyone else. And, he says, they’re not who many associate professor at the University To Craft, this isn’t just a sign of people expect them to be. of Calgary’s Haskayne School of Busi- kindness or basic human decency. It “There’s a lot of misconception of ness. “A lthough it is a multinational speaks directly to the type of leader what content is on TikTok and what enterprise, if we think about its busi- Habashi is. “He solicits feedback, demographic uses [it],” he says. ness, it is actually like an assembly of and while he does a lot of the work “There’s a great kind of breadth of country- or region-based networks: confidently, he leads without an ego. content and depth of content. There’s TikTok U.S., TikTok Canada, TikTok He works very hard. He cares about a great deal of learning content on Japan, etcetera. There is little synergy people. He is definitely a leader of our TikTok, from DIY stuff to great math across these regional networks,” he time,” she says. hacks I’m teaching my kids that I says. “Due to this fragmented net- For Habashi’s part, while he feels didn’t learn in school. It’s very much a work nature, TikTok can localize strongly that it’s only right to make platform for everyone.” their business, including its opera- sure everyone on his team has a To keep it that way, the company tion and data centre, within national voice, there’s also a practical reason has made a number of proactive or regional borders. The localization he strives to create spaces in which moves—including a new prompt that strategy helps them gain trust with others can be heard: He knows he’ll encourages users to reconsider post- regulators.” likely learn something, particularly ing a comment that might be “inap- from the “incredibly talented female propriate or unkind”—which seem leaders” on his team, like Craft. Work- focused on maintaining the app’s The third piece of the TikTok com- ing for a company that lets Canadians status as “one of the last sunny places munity is Habashi’s team. He started speak to the world, he’s committed on the internet,” as Habashi puts it. this job at an odd time—during a pan- to keeping his ears open to his col- That may be why it’s thrived despite demic and a global racial reckoning, leagues. As he puts it: “I’d be a fool not concerns over ties to China, includ- when being connected felt impor- to listen.”

MAY 2021 / REPORT ON BUSINESS 25 HONOUR ROLL

Lisa Cameron Vice-president, finance, Hanson Canada It’s said that those who can’t do, teach. But in her multipronged role at Hanson Canada, a private educa- tion group offering degree and lan- guage programs, Lisa Cameron both does and teaches. She has been a key player in the company’s rapid 55% revenue growth over two years while still mentoring Hanson’s business- unit leaders. A CPA with more than two decades of experience in the con- sumer packaged goods and health- care industries, she’s also built com- prehensive internal budgeting and reporting processes. It’s a remarkable list of feats, given she only took on her role a couple of years ago.

Michael Vels Chief financial officer, Empire Co. and Sobeys Inc. It’s no exaggeration to say that, in the past three and a half years, Michael Vels has been a key player in a total financial transformation at Empire. Vels helped revive the retailer’s once-flagging operations, restructur- ing its finance team to be less siloed and more collaborative, and created Empire’s first strategic sourcing team. Vels also spearheaded Project Sun- rise, an ambitious three-year plan to strengthen the retailer’s in-house brands, surpassing initial financial targets by $50 million. Numbers aside, Vels is also well-respected for his soft skills, and often mentors his junior teammates using his expertise in set- ting—and exceeding—goals.

Steve Filipovic Chief financial officer, Jane Ngobia Premier Gold Mines Ltd. Vice-president, inclusive communities, Sheridan Once solely an Ontario-based explo- ration outfit, Premier has expanded No industry was spared from sity and inclusion. “Equity is not that into a multinational gold producer 2020’s overdue reckoning on black and white,” she says. “You’re with satellite operations in Mexico race relations. With 23,000 stu- dealing with beliefs, lived experi- and Nevada. Steve Filipovic has been dents and 3,500 employees, Sheridan ences and human beings. Culture N

helping build the company since the College required a concrete diversity does not change because I say so—it TO beginning. Involved in financing, strategy to institutionalize inclusivity. changes because you’ve given people

HR and investor relations, Filipovic Jane Ngobia was up to the task: With the tools to change.” CHARL is also an acquisitions man, taking an extensive post-secondary back- Ngobia’s work is a master class in the lead on Equinox Gold’s recent ground in policy development and matching visionary ideals with prac- JORIAN (and multifaceted) acquisition of his education, Ngobia is one of the first tical implementation. So far, she’s firm. The real feather in his CFO cap, people in Canada to hold an executive launched the first self-identification

though, is this one: Premier has never leadership position in equality, diver- census for employees, produced man- PHOTOGRAPH gone over its annual budget.

26 MAY 2021 / REPORT ON BUSINESS RESEARCH BY ROSEMARY COUNTER AND KATIE UNDERWOOD

Barb Harwood costs and increasing liquidity, all of Chief financial officer, which put Goeasy in a stable posi- Thunderbird Entertainment Group tion entering the pandemic. In 2020, Barb Harwood’s eagle eye for detail shareholders saw record earnings, was evident in the first few years of her and Khouri led the launch of the orga- career—as a second shooter for film nization’s first securitization facility. productions. She later parlayed that, and her knack for numbers, into earn- Jacquie Pylypiuk ing a CA designation in 2000, before Senior vice-president, people, culture becoming CFO for Thunderbird’s and technology, Capital Power multi-platform entertainment empire Keeping the lights on was a concern in 2005. Harwood’s work in evaluat- for most businesses last year, but per- ing and funding key transactions—in haps none quite as literally as Edmon- addition to her contributions to the ton’s Capital Power. It was senior HR, legal and IT teams—enabled the vice-president Jacquie Pylypiuk’s job firm to increase its revenue by 40% to keep morale high while they did it. in 2020 alone (and stay entirely debt- A chartered accountant and HR pro- free throughout). Her stellar finan- fessional with 25 years of experience, cial track record aside, Harwood is Pylypiuk aimed for a holistic model of also community-minded, having laid employee care when coordinating the the groundwork for B.C.’s first film company’s pandemic response. She tax credits program and established even went so far as to arrange private a peer-support group for entertain- medical services for remote workers ment CFOs in Vancouver. and organized at-home mask delivery.

Kieran Hawe Michele Walkau Executive vice-president and Senior vice-president, brand and culture, chief operating officer, construction First Capital REIT operations, EllisDon Corp. Real estate is known for its fast-paced, Kieran Hawe’s 20-year tenure with cutthroat climate, but according to EllisDon is a lesson in versatility: He her colleagues, Michele Walkau is all has worked on commercial, institu- about a more mindful approach. Yes, tional and residential projects across she’s spent the past two years deep- Canada, the United States, Europe leading a corporate rebrand, develop- and Asia, and held roles from con- ing First Capital’s internal communi- struction manager all the way up the cations strategy and dealing with the chain to the C-suite. Now, even as he small matter of COVID-19. But she stickhandles large, multidisciplinary never fails to uplift her team: making teams for the $5-billion construction a point to celebrate worker successes, operation, he’s turned his focus to providing ample development oppor- diversity—joining EllisDon’s Alliance tunities for future leaders and even of Black Employees and Leadership as writing thank-you notes upon com- datory anti-racism training, reviewed its executive sponsor and partnering pletion of projects. hiring practices to make them more with Build a Dream, a Canadian non- equitable, and co-founded a group for profit that provides young women Synthia Kloot senior equity leaders. It’s an inspiring with an entry point for careers in the Senior vice-president, strategy, finance effort for just one year in the job, but skilled trades. and operations, brokerage, Colliers Ngobia considers her work “a call- No matter the challenge, Synthia ing.” Twice a year, she also travels Hal Khouri Kloot remains undaunted: Having to Northern Kenya to work at a safe Executive vice-president and chief ascended to her current senior role house for girls fleeing forced mar- financial officer, Goeasy Ltd. early last year, she quickly took the riage and gender-based violence. In Known for his calm on-the-job reins on Colliers’s COVID-19 Task general, she espouses the need for demeanour, Hal Khouri shepherded Force, balancing business operations celebrating small wins and, above Goeasy’s 2,000-person team to sur- with an ever-evolving set of safety all, patience. “People are at different prising success in what might have expectations on behalf of more than points on this journey, and success been a disastrous business year. Join- 2,500 staffers. On the technical side, will be [found] in cultivating a sense ing the team in 2019, Khouri priori- Colliers’s brokerage business has of the need to move together.” tized building the company’s capital nearly doubled during Kloot’s tenure, resources, decreasing its borrowing as she led the rollout of a newer, more

MAY 2021 / REPORT ON BUSINESS 27 robust customer relationship man- agement system. Plus, according to colleague Scott Addison, president of brokerage services at Colliers, Kloot is “not afraid to have the difficult con- versations and do what is right.” That characteristic is on full display in her role as Colliers’s executive champion for diversity, equity and inclusion.

Cheryl Fraser Chief talent officer and vice-president, communications, Crombie REIT Cheryl Fraser is focused on building a transparent corporate culture. After joining Crombie—one of Canada’s largest real estate investment trusts— as chief talent officer in 2012 following myriad government posts, Fraser set her focus on improving engagement, health and diversity standards. But career development is a major prior- ity too: She regularly works alongside employees to plot their paths to senior leadership positions and finesse the skills they’ll need to get there.

Av Maharaj Chief administration officer and vice-president, legal, corporate affairs and HR, Kraft Heinz Canada Av Maharaj has his hands in multiple portfolios at Kraft Heinz, includ- ing government relations, corporate social responsibility and crisis man- Shenif Visram agement. But he never forgets the Chief financial officer, Aptum Technologies gargantuan importance of simple human attention. During the pan- In the post-COVID-19 economy, stay nimble while not hindering his demic, Maharaj increased PPE and the ability to anticipate and reports with “slow decision making.” wellness resources for field workers, respond to risks with creative “While the natural tendency for a and hosted lunch-with-leadership thinking will be a priority among CFO is to rely on what the numbers calls for employees and their fami- C-suite leaders, but Aptum’s Shenif are saying, making decisions on that lies. (Yes, kids were allowed at the Visram was (appropriately) ahead of basis alone will not lead to organi- table.) Maharaj also championed the the curve. Elevated to a CFO role from zational buy-in,” he says. Visram’s creation of a brand new Work Like his post as vice-president of finance in big-picture thinking is also well- an Owner program, an approach that May 2019, Visram was an instrumen- used in his role as part of the Bank of allows employees to work from wher- tal part of the divestiture of Cogeco’s England’s Decision Maker Panel, a ever (and whenever) they like as long clouding computing business, leading congregation of international CFOs as they meet their objectives. to the formation of Aptum Technolo- meant to offer insight into causes of gies. He was also involved in the suc- economic uncertainty (like COVID-19 Chris Campbell cessful sale of a piece of the business and Brexit). “The opportunity to gain

President, Accent Inns Inc. to Beanfield Technologies amid the insight into global economic trends Y

Chris Campbell has been able to pandemic. Charged with setting up has been critical,” Visram says of the UCKE

maintain a vision for Accent Inns’ a new enterprise resource planning panel’s benefits. “The input from U.K. ST LA

success beyond surviving the imme- system and project team, while also leaders about challenges—that may SS diate threat of COVID-19. That kind managing data migration and com- not have hit other regions yet—pro- TE of thinking has allowed him to utterly pleting a change management pro- vides an early indicator of what’s to transform the B.C. hotel chain in cess, Visram says his main goal was to come in other countries.” seven short years—and one very long PHOTOGRAPH

28 MAY 2021 / REPORT ON BUSINESS one. Under his leadership, six hotels to create visibility,” says Singh, who fessional wins. “We’re cameras on, became eight, employee happiness led the charge in late 2020 to hike non-muted and engaged, and we like metrics rose to 98% (again, during a Tucows’s partnerships with minor- to see each other.” pandemic), and Accent outperformed ity-owned businesses. “I once said to its industry competitors on all finan- myself, This is the highest position an Melissa Gilbert cial metrics. “I’m a believer that ego accountant can really get to, so I’m not Executive vice-president and lead, is one of the enemies of good decision going to take that position for granted.” finance, Beneva making; I have a heart, and I lead with As power moves go, the 2020 merger it every day,” says Campbell. He notes Gilles Hamel of Quebec’s La Capitale and SSQ the company recently established a Chief financial officer, Summer Insurance to form Beneva—now Continuous Improvement Depart- Fresh Salads Inc. Canada’s largest mutual insurance ment. “I want to be honest about According to his co-workers, Gilles firm—was a big one. Its success can where we stand and also where we’re Hamel is the kind of thoughtful leader be credited in large part to the diplo- going,” he says. who brings coffee to crossing guards matic savvy of Melissa Gilbert. She and doughnuts to late-night ware- calls the merger (cemented during Aaron McCarthy house staffers. So it’s no surprise the pandemic, no less) one with “chal- Executive vice-president and chief that when Summer Fresh was look- lenges all over it.” Chief among those HR officer, Magna International ing to avoid mass layoffs during the challenges was the fact that the same The automotive game has rapidly pandemic, Hamel’s strategy was “no merger had been attempted and failed gone from Flintstones to Jetsons, worker left behind.” Charged with several times before. “I had to con- so Magna’s Aaron McCarthy knows implementing a brand new enterprise vince everyone it was a good fit, that something about speed. But he can resource planning (ERP) system, it was feasible, and be a really active also juggle: With 160,000 employees Hamel made the move an all-hands listener,” she says. Her next challenge in 27 countries, McCarthy found ways affair, connecting with not just his will be “maintaining closeness” with to work across the company (and five-person accounting team but also her new team, which has been work- world) on health, safety and human sales and production for the training ing from home since July. resources when COVID-19 hit—with- and procedural overhaul. “Usually, out a whole lot of government over- you get resistance because people feel Demi Tsioros sight. “We wanted to have some level like their worlds are changing,” says Chief financial officer, Reliance Home of consistency,” says McCarthy. He Hamel. “But it created a certain buzz Comfort LP worked with American and European and growth factor. It made people feel Forecasting is a typical habit of fi- automotive agencies as well as sup- like, ‘Hey, we’re in this together.’” nance pros, and Demi Tsioros applied pliers to deploy on-site rapid-testing that natural proactiveness to the programs and a 300-page pandemic Carrie Lysenko pandemic. “Reliance bought all of playbook—which outlined best prac- Chief operating officer, Zoocasa our masks, gloves and hand sanitiz- tices, right down to the preferred type Having spent two decades in senior ers at volume in January 2020, well of Plexiglas. “We’ve been up and run- roles with some of Canada’s most before the shutdown happened in ning for the past three quarters, while recognizable brands—Molson, the Canada,” she says. “We had front-line protecting our employees at the same Weather Network and the Blue Jays— team members going into customer’s time,” he says. Carrie Lysenko has trusted opera- homes, and while I had to ensure tional judgment. But when she joined the business was on solid financial Dave Singh Zoocasa to rebrand its digital presence ground, we had to keep the team safe, Chief financial officer, Tucows, Inc. three months before the COVID-19 because we were an essential service.” Dave Singh says he is an “out, proud shutdown, it was paramount that she At the same time, Tsioros was engag- gay man”—although he admits that, at gained the trust of her direct reports— ing with all manner of colleagues work, it wasn’t always the case. Now, some of whom she’d never met in per- and external stakeholders, including in addition to watching the compa- son. “I didn’t have time to build those banks, to “navigate all the turmoil in ny’s numbers, he’s made equality a really strong relationships, and I know the capital markets.” Tsioros says of part of his job, co-founding Tucows’ trust needs to be earned,” she says. her months spent multitasking: “It first LGBTQA resource group in 2016. Building bridges came in the form of was like, ‘A sk me anything!’” But after seeing the effect of George writing daily updates. In the begin- Floyd’s death last summer, particu- ning, Lysenko focused on the news, Kara MacKillop larly on his American staff, Singh the company, wellness and equipment Chief of staff and executive created another employee resource needs. As the pandemic wore on, the vice-president, people and culture, group for diversity and racial jus- updates included barbecue recipes Canada Goose tice—a people-first perspective amid and Spotify playlists. “We found a bit Kara MacKillop is mindful that fash- the “war-room” survival mentality of lightness,” she says, noting that her ion should be good for the world, brought on by COVID-19. “I, myself, highly motivated group starts every which is evident from the slew of saw the power of people stepping up meeting by sharing personal and pro- brand-first initiatives rolled out this

MAY 2021 / REPORT ON BUSINESS 29 year under her direction: the launch of an Inclusion Advisory Council, which MacKillop says promotes the authen- ticity “that is only possible when employees feel safe and welcomed”; Canada Goose’s first-ever Sustain- ability Report and Sustainable Impact Strategy, with the goal of carbon neu- trality by 2025; and the Canada Goose Response Program, an ambitious if intuitive pivot to PPE manufactur- ing. “This was a huge source of pride for our teams around the world,” she says, “not to mention a sense of pur- pose in uncertain times.”

Brittany Forsyth Chief talent officer, Shopify Known among colleagues for her unorthodox ideas, Brittany Forsyth’s latest switch-up is a big one: migrat- ing Shopify’s workforce to one that’s digital by default (a.k.a. entirely remote). “For 10 years, I helped build a culture around co-located offices that foster creativity, hallway con- versations and personal connections,” she says of her 7,000-strong work- force. “It’s like rebuilding the engine of an aircraft while in flight.” The risky shift—which was intended to future-proof Shopify and attract a more diverse talent pool—appears to have already paid off. In the past year, the company has received nearly 100,000 job applications and hired 1,000 new workers, 70% of whom are based in Canada.

Jim Reid Chief human resources officer, Rogers Communications “One of my favourite expressions is that ‘steel gets hardened in a furnace,’” Carley George says Jim Reid, who is quickly approach- Vice-president, marketing, District Ventures ing his 10th year of heading up human resources at Rogers. He’s an expert, District Ventures is Arlene Dick- keting to account management, before to be sure, but even Reid didn’t have inson’s accelerator program, being promoted to lead District’s mar- a playbook for a crisis of COVID-19’s which helps build businesses keting team. “It all came together and proportions. Still, he did everything in over five months. Carley George is the was just a natural fit,” says the Calgary- his power to foster resilience among marketing woman the Dragons’ Den based vice-president.

the company’s 25,000 employees. star chose to create an in-house “eco- Few—if any—venture capital funds BINSION

In addition to his reassuring weekly system” to speed the growth of those come with built-in marketing teams, RO email dispatches—a 285% increase startups. Having successfully oper- so George had the challenge and free- UN in frequency year-over-year—Reid ated her own consulting company, dom to build her operation as she saw SHA led the rollout of a National Wellness George spent a dozen on-and-off years fit. Her team of 17 now reps 32 brands Fund and a revamp of Rogers’s exist- at Dickinson’s Venture Communica- in the health and wellness space, from

ing inclusion and diversity strategy. tions in myriad roles, from event mar- small up-and-comers like organic PHOTOGRAPH “It’s the grit you bring to challenges

30 MAY 2021 / REPORT ON BUSINESS that makes you stronger,” says Reid. ing out with big names and flying on “But you can’t be a great company in swanky planes go to her head. That’s the long run if you don’t put your peo- not at all what happened. “Behind ple at the heart of your success.” everyone that gets recognized in that big way are hard-working people Gary Smith from all walks of life,” says the vice- Executive vice-president, president of Sage, which provides Eastern Canadian and Caribbean digital solutions for entrepreneurs. Operations, Fortis Inc. Tichbon’s team won Glassdoor’s Whenever a power line is down— Employees’ Choice Award in January, whether by snowstorm or hurri- and Sage was named one of the top 10 cane—it’s Gary Smith’s job to restore places to work in Canada. That was service as fast as humanly possible. partly thanks to Tichbon’s knack for Last year alone, he took the helm at acknowledging and appreciating what nearly 100 emergency response meet- some might call the little people. “For ings for outages across five Canadian me, they’re the big people,” she says. provinces, 10 American states and three Caribbean countries. Recall Donna Kinoshita Hurricane Irma: In September 2017, Senior vice-president and chief the Category 5 hurricane hit Turks strategy officer, Symcor and Caicos hard, damaging 65% of Three years ago, Donna Kinoshita Fortis’s electrical assets. In just a few joined payment processor Symcor to days, and despite being hundreds of build its marketing team with the goal kilometres away, Smith rallied a team of encouraging certain industries— of 250 that began restoring power to including banks, government and the islands. Geography was a small, insurance—to embrace digital trans- easily conquered obstacle: “I pride formation. The plan was to go slow myself on personally checking in with and steady, but COVID-19 put busi- my team every day to make sure we ness into overdrive. “Everyone rec- stay close and they have everything ognizes they need to go digital faster they need.” than they ever thought possible,” says Kinoshita, whose impressive team Tony Geheran stepped up with gusto. “I hire looking Executive vice-president and chief for energy, positivity, let’s-just-do-it customer officer, Telus attitude—and constant reinvention.” Since 2012, the PureFibre program from Telus has spent $6 billion to Vivian Chan bring broadband to two and a half Chief channel officer and head of North million businesses and households America sales, NexTech AR Solutions across 137 communities—including Instead of shelving its four-day con- remote Indigenous populations as ference this year, Restaurants Canada small as 1,500 people. “Everywhere turned to Vivian Chan at NexTech seed elixir Seeva to household names we build, we work hard to look around with this tall task: “Move the event like Balzac’s Coffee. More impor- and extend the network to those who into the digital space—and not just tant than the brand, she says, is the need it,” says Tony Geheran. Before onto Zoom,” says Chan. “We’re imag- entrepreneur behind it. “I love work- he builds anything, however, Geheran ining and building meaningful ways to ing with people without egos. It’s all looks to Indigenous team members interact, network, learn and engage in about finding people who fit with my who serve as a resource group dedi- a digital landscape.” In this case, that team,” she says. cated to accountable development meant curated content that included For her own team, George sees her- and act as a connection with the com- Food Network stars and special self as something like a coach charged munities. “We work closely with them guests, virtual floor plans and employ- with nurturing her players’ best quali- to make sure we’re a fit,” he says. ing streaming tech to handle interac- ties. “I find that some of the strongest tions with vendors and thousands of minds are the quietest, and I love Nancy Tichbon guests with confidence and ease. emotional intelligence,” she says. “I Executive vice-president and like to read people, home in on their managing director, Sage Edward Shim strengths and fine-tune their unique After years working with Virgin Managing director, Studio 1 Labs contribution to the organization.” Group founder Richard Branson, Inspired by spending two months in Nancy Tichbon could have let hang- hospital after a chest injury, Edward

MAY 2021 / REPORT ON BUSINESS 31 Shim figured there must be a better way to measure breathing than having a patient huff into a tube and count- ing manually. A few years later, the innovator introduced what you might call a smart fabric. “We’ve designed what’s essentially a bedsheet moni- tor that patients lie on to measure vital signs,” explains Shim. Future applications are endless, but Shim is equally focused on the present: Since the pandemic began, Studio 1 Labs has imported 176 tonnes of medical-grade fabric to make four million personal protective gowns.

Iain MacNeil Chief revenue officer, Appnovation Appnovation is a full-service digi- tal consultancy dedicated to solv- ing problems. British Columbia’s Ministry of Health, for example, had this big one: How could the province monitor employee shifts at long-term living facilities to lessen the transmis- sion risk of COVID-19? “We collected information from health-care work- ers, some of them working in three or four different places, to build a real- time province-wide staffing map,” says Iain MacNeil. With the collabo- ration of the employees’ unions, the Single-Site Staffing initiative limited unnecessary overlap, dramatically reduced transmission and was so suc- cessful it was quickly embraced by two other provinces. Jennifer Jackson Jason Tasse Technology and cloud first lead, Accenture Canada President and chief operating officer, Lee Valley Tools, and chief operating This July, Jennifer Jackson will halls, Jackson has spoken candidly officer, Veritas celebrate 25 years at Accenture. about her life as a cancer survivor, Jason Tasse is living a career dream When she started—and still too a mother, a person who has experi- come true. “I grew up at Lee Valley, often today—Jackson was usually the enced loss and an advocate of therapy. starting as a part-time product picker, only woman in the room. She hardly “A ll of that gave me perspective and and now I’m the president,” he says. even noticed at the time. “I didn’t empathy,” she says. Jackson is now It wasn’t quite that easy. “My whole understand then that I was a unicorn,” the leader of Cloud First, Accen- mandate was to work my tail off, and she says. “I was just so excited to be ture’s new multiservice group, and I did.” In 25 years, Tasse helped the there.” But when years passed and she’s also the executive sponsor of mail-order tool catalogue company— nothing changed, Jackson did take the 350-person-strong Mental Health which supplies everything from furni- note. She committed herself to cham- Employee Group. She built the Mental ture legs to ice cream scoops—mod- pioning change by fostering a more Health Ally formal training program ernize and go digital. Where other female-friendly workplace, empha- to raise awareness, reduce stigma and companies were relegated to the past, sizing openness, honesty, balance and advocate for anyone who needs men- AMIGA

Lee Valley Tools actually doubled mental health. tal health resources (or just a compas- OMI its customers last year, as lockdown “I talk a lot about bringing your sionate ear). Jackson’s built-in empa- SHL encouraged hobbyists to go back to whole self to work,” she says, and that thy is making the field a nicer place to basics. Binoculars, for example, were especially includes herself. In town be—for any gender.

a surprise bestseller. PHOTOGRAPH

32 MAY 2021 / REPORT ON BUSINESS Foad Godarzy sound control materials,” he explains. ety.” Recent successes include Pan- Head of IT and OT Canada, ENGIE With two patents to his name, Gar- tene’s #HairHasNoGender Project, Depending on who you ask, ENGIE tenburg is the reason you can’t hear intended to include trans and non- is either seven or 200 years old. The weights dropping in your building’s binary people, and celebrating eight centuries-old French electric utility gym or your neighbour practising the Black Canadian women embracing company once known as GDF Suez— trumpet. He has watched the com- their personal hair journeys with the which constructed the Suez Canal pany grow from five to 100 employ- #MyHairMyStory campaign. and now operates in 75 countries— ees, which still feels small thanks to rebranded seven years ago. “My role ample departmental overlap. “The Warren Perlman is to oversee ENGIE’s renewable arm, concept of ‘that’s not my job’ doesn’t Executive vice-president and chief digital including 15 power plants we own exist here,” says Gartenburg, who fills officer, Ceridian and operate from British Columbia his non-engineering hours with sales, “In every crisis, there’s opportunity,” to PEI,” says Foad Godarzy. The best finance and even manufacturing. explains Warren Perlman. For cloud- part of his job? “Checking in first thing based payroll manager Ceridan, the in the morning with my team, know- Lisa Reid pandemic was no exception. “Busi- ing we’re starting a fresh, new day.” Country leader, P&G Beauty Canada, nesses had to go remote and pay Procter & Gamble remotely, reliably and on time.” For Paul Gartenburg For beauty junkies craving soaps and those firms, Perlman built Dayforce Director of international sales, Pliteq creams, Lisa Reid’s job is downright Wallet, which allows users to request Pliteq was—and is—Paul Garten- enviable: She drives brand growth and receive their pay on demand and burg’s first and only employer. At 31, for P&G products like Pantene, Ivory in real time. Ceridan’s innovative plat- the engineer had happily landed in and Olay. “It’s dreamy,” she admits, form moved hundreds of billions of what he calls a “super-niche” com- though she also says it’s not easy. dollars last year into the happy hands pany that’s also super-cool. “We recy- “Beauty is never static and always of 5,000 companies and over four mil- cle rubber tires and turn them into evolving alongside the rest of soci- lion end-users.

It takes ateam

Congratulations to Bhushan Ivaturi, Chief Information Officer of Enbridge, and the Technology and Information Services (TIS) team forreceiving ROB’sBest Executive Award.

Every day,the people of TIS help enable the safe, reliable operation of Enbridge’s vast network of energy infrastructure;and embody our commitment to innovation by contributing bold new ideas. Together,they drive Enbridge forward while helping deliver the energy North America relies on. Louis Adam customers safe. And for anyone who be too hot in 92 minutes and corrects Chief marketing officer, EXFO still wasn’t comfortable in the stores, it now.” BrainBox can reduce energy Fourteen years ago, on a plane some- she adds, “we did free delivery to usage by 25% and decrease carbon where between Chicago and Mon- their door.” emissions by 40%. treal, Louis Adam started chatting with the stranger beside him. Turns Shonezi Noor Faeron Trehearne out the man was on the management Vice-president of operations, Sampler Chief legal officer and corporate team of EXFO, an up-and-coming “The best way to convince a con- secretary, Moneris company selling testing instruments sumer to love a product is to have She initially wanted to be a litiga- to big corporations like Telus and them experience it,” explains Shon- tor, but Faeron Trehearne found she Amazon—and the rest is history. “It ezi Noor, the vice-president of Sam- much preferred the happier art of wasn’t a direct access to the C-suite,” pler. Her company delivers new deal making. “I just enjoy putting Adam says of his lucky break. “There brands—everything from peanut but- things together now as opposed to was a little bit more work than that.” ters to fancy creams—to users’ doors disputing them later,” she says. At This year, he quickly switched to digi- in return for what she describes as Moneris, the largest payment pro- tal for EXFO’s annual Sales Kick-Off, “an authentic review” of the product. cessor in Canada, Trehearne over- leaning into pre-recorded interviews, (“And only if you want,” she adds.) sees a team of 25 with supportive live-streaming and a multilayered Voted the company’s Most Valuable leadership strategies learned from agenda that garnered a 90% satisfac- Player of the past (notoriously dif- her mentors. “I try to look at the tion rating. ficult) year, Noor spearheaded the whole person and give them the time launch of Sampler University, a vir- and space they need to thrive profes- Julian Ware tual training program that provides sionally and personally.” General manager, Clearpath Robotics connection and cohesion to nearly 50 Each year, the U.S. Department of employees. Xerxes Cooper Defense funds the DARPA Grand General manager, global technology Challenge, in which organizations Vanessa Eaton services, IBM Canada from MIT to NASA put their autono- Executive vice-president, Proof Strategies After 110 years, IBM is on the cusp mous vehicles to the test. Before build- At 29, Vanessa Eaton was the young- of big change. By the end of 2021, it ing their entry, however, many turn to est person to serve as a vice-president intends to spin out its managed infra- Waterloo-based Clearpath Robotics in her company’s 27-year history. structure services business into an for what you might call a base-model She initially wanted to study psy- independent entity, dubbed NewCo. robot (along with, as Julian Ware calls chology—but public relations and In Canada, where he currently over- it, “other robot stuff”). The company’s psychology have their similarities. sees a team of thousands from coast flagship is the Husky: a 50-pound “Both are about understanding some- to coast, Xerxes Cooper will take the 39-inch robot on four sturdy wheels. one’s needs and perspective,” she lead. “We’ll be more agile, faster and Customers add their own software says, referring equally to clients and efficient, and we’re very excited for depending on the task at hand (remote employees. “A high-performing team what’s ahead, though it’ll be challeng- inspection, autonomous mapping, is made when everyone feels heard ing too,” he says. “A s they say, we’ll equipment assessment). “Robotics and comfortable to be themselves, need to keep changing the wheels are about making our lives better and even the imperfect bits, which are while the car is running.” safer,” says Ware. equally as valuable.” Margaret Stuart Hope Bagozzi Jean-Simon Venne Country manager, Salesforce Canada Chief marketing officer, Tim Hortons Chief technology officer and co-founder, Born and raised in Dublin, computer While other companies halted when BrainBox AI science grad Margaret Stuart moved faced with the uncertainty of the BrainBox is an unassuming little first to London, and then Philadelphia pandemic, the ad team at Tim Hor- 12-inch square with the big job of and, finally, Toronto. Somewhere tons didn’t hesitate for a moment. “A measuring and optimizing energy along the way, Stuart’s passion shifted legacy brand like ours needs to step use of buildings’ heating and cool- from computers to business to mar- up and speak directly to Canadians in ing systems. For example, a three- keting to sales to people. “To me, suc- times like these,” says Hope Bagozzi. million-square-foot mall in Austra- cess is about being curious and cou- She was just two months into her job lia was gobbling up energy. “They rageous,” she says. For newcomers to when all plans—reusable mugs, the called us up; we sent them the box,” Canada like herself, finding a career annual Roll Up the Rim contest—had says Jean-Simon Venne. “It automati- is admittedly not easy. To help, Stu- to change. Within two weeks, Tim cally connects to the cloud and gets art championed Salesforce for All, a Hortons began airing commercials to work.” BrainBox collects enough program designed to help new Cana- that directly addressed COVID-19, as data to predict the future, adjusting dians get their start. “Totally staffed well as precautions the company was the HVAC system accordingly. “It by Salesforce volunteers, it takes any already taking to keep employees and knows that the room you’re in will folks with a tech background through

34 MAY 2021 / REPORT ON BUSINESS a two-week crash course in making a Alex Corneglio ups and downs in her 25-year career résumé, how to interview, and how Chief technology officer, with BMO. So despite the challenges to fit in and be confident.” Hundreds EnergyX Solutions of COVID-19, she still managed to be have graduated, and thousands are Five years ago, Alex Corneglio and his a steadfast presence for her team. “In expected to over the next few years. co-founder were working together in any time of crisis, there’s an oppor- the Netherlands, where the energy tunity and a need for leadership,” Bhushan Ivaturi industry felt far more advanced and Malone says. “The health and safety Senior vice-president and chief competitive. Inspired to bring the of our people was of paramount information officer, Enbridge European system to North America, importance.” The bank launched “Pipelines are sometimes consid- Corneglio launched EnergyX Solu- multiple new offerings during the ered boring—they’re old infrastruc- tions. “Using advanced machine pandemic, including a virtual health- ture in the ground—but what’s not learning and AI, we virtually conduct care app, a daily stipend for workers boring is the opportunity to use audits for utilities companies and who had to work from the office, 15 technology and innovation to get governments to run energy-efficiency extra lieu days for pandemic-related creative and modernize them,” says programs.” EnergyX now oper- matters and regular call-in sessions Bhushan Ivaturi. Enbridge is cur- ates from Nova Scotia to California with mental-health experts. Malone rently using robotic process automa- and Yukon to Louisiana, and now— says she’s guided by the adage “Peo- tion, advanced analytics and AI to oddly—they’re expanding back into ple will forget what you say or do, but do some of its work. That effectively Europe, where they started. “I guess they won’t forget how you made them frees up time for humans to learn the world’s not big enough,” he jokes. feel.” That was particularly impor- and innovate. “I’m passionate about tant over the past year. “I know that building a culture of learning to pro- Mona Malone how we listened was so important, mote reskilling and up-skilling our Chief human resources officer and head, and would be something they would workforce to optimize critical infra- people and culture, BMO Financial Group remember long after the pandemic structure in new ways,” Ivaturi says. Mona Malone has navigated multiple was over,” she says.

Congratulations Demi forbeing recognized as one of this year’s“Top50Best Executive Award” winners foryour leadership and unwavering commitment to our Team Members, Customers, Stakeholders and Communities.

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It was supposed to be a Canadian champion too big to fall into foreign hands. Now it’s gone. Who’s to blame?

BY TIM KILADZE AND JEFFREY JONES architects, signalling Calgary as a global energy power. Ye t, starting in 2009, Encana spun off its oil sands assets (at an unfortunate time) under the direction of Morgan’s hand-picked successor, Randy Eresman; brought in Ameri- can executive Doug Suttles, who paid premium prices to shift the company’s centre of gravity south of the border; wrote down US$20 billion in assets; and changed its strategy so many times that no one really knew what it stood for any- more. Since December 2009—when it hived off its oil assets into Cenovus Energy—Encana’s shares have lost 80% of their value (meaning RBC is now 20 times larger by market cap). Something had to give. But ditching Calgary altogether? In the words of Cenovus’s CEO, Alex Pourbaix, it was a “tragedy for Canada.” Encana’s raison d’être was to be the energy giant that could never fall into foreign hands. “The driving force behind the merger, the driving force behind my career, the driving force behind everything, was a great Canadian-head- quartered company that would never move,” Morgan says from his home on the Saanich Peninsula, north of Victoria. When the news broke, everyone wanted to blame someone else for the pending loss of an Alberta icon. It was all Justin Trudeau’s fault for turning investors off Canadian oil and gas, or Eresman’s for splitting off the oil assets, or the board’s for hiring an outsider, or Suttles’s for ignoring the company’s Canadian roots. But in January 2020, Encana—soon to be Ovintiv—won shareholder approval for its plan to relocate stateside. Then COVID-19 hit, and the company slipped south with no fur- took Gwyn Morgan 30 gruelling years to build Encana Corp. ther debate. into Canada’s flagship energy producer and only one email to And so, a little over a year later, the mystery remains: Who upend his life’s work. really killed Encana? Everything came crashing down during a trip to Israel in late 2019, when a newspaper asked him to com- ment on Encana’s latest news. At first, he wasn’t The gas giant formerly known as Encana used to sure what the fuss was about. But sitting on a bus be two companies. PanCanadian Energy, once part en route to the Dead Sea, he learned the company of the Canadian Pacific empire, controlled swaths was changing its name—to Ovintiv, of all things— of royalty-free acreage given to CP through an and, more jarring, abandoning Calgary for Den- 1880s land grant from Ottawa. In fall 2001, the oil ver. “That was pretty much the worst day of my and gas unit was spun off in the “starburst” deal career,” says Morgan. that also saw the conglomerate’s railway, hotel, By then, he hadn’t been close to Encana for over T shipping and coal-mining operations set free as a decade—he retired as CEO in 2005—but it was still his baby. stand-alone businesses. He’d spent three decades toiling over unconventional oil and Rival Alberta Energy Co., meanwhile, started out as a pro- gas assets to create what he called a “global super-indepen- vincial Crown corporation with drilling rights to massive mil- dent,” and he was the driving force behind a 2002 merger to itary ranges in the eastern part of the province. AEC, as it was create a company big and strong enough to be protected from known, went public in 1975 under Premier Peter Lougheed, U.S. suitors desperate to get their hands on Canadian energy and its shares were sold to Alberta residents for $10 each. The assets. goal was for moms and pops to own a piece of the Western Morgan and his wife, Pat Trottier, had even named the dream. Morgan was one of AEC’s first employees. company themselves, settling on Encana—a portmanteau of The two companies came together on a Sunday in late Jan- “energy” and “Canada”—while cross-country skiing. So the uary 2002, when Morgan and David O’Brien, PanCanadian’s rebrand felt like a twist of the knife. “There was no need to do chair and interim CEO, heralded the formation of EnCana that,” says Morgan. “That really pissed me off.” (the “C” was originally capitalized) at the Palliser Hotel in Blessed with all the advantages an energy firm could want, downtown Calgary. They billed it as a “Canadian-headquar- including some royalty-free acreage and a reputation as a tered, world-class independent oil and gas company.” And low-cost producer, Encana once seemed unstoppable. For a with an enterprise value of $27 billion, it instantly became time, it was Canada’s most valuable company, worth more a national champion that could show off its technological than even Royal Bank of Canada. Its crescent-shaped sky- know-how in oil and gas basins around the world. scraper, the Bow, was designed by some of the world’s top Besides its dominance in Western Canada, Encana had

38 MAY 2021 / REPORT ON BUSINESS were starting an unprecedented run “It all comes toward US$150 a barrel, and the price of natural gas began its surge beyond back to the US$10 per million British thermal units (BTUs) amid fears of a continent-wide Trudeau shortage. Employees from Encana’s early days government’s recall a high-performance atmosphere. As head of the old AEC, Morgan—a rural Alberta boy—had been a whiz policies...” at fostering corporate culture. He set clear production and financial goals, and rewarded employees when they met so-called stretch targets. (He used an elastic Gumby doll as a mascot, and it even showed up at the company Christmas party. “It was pretty corny,” he says, chuckling.) ...says Gwyn Morgan built on that style at Encana. The workers were known as Encan- Morgan ans, and it was a moniker he embraced. Morgan was the charismatic boss, (without while his operations chief, Eresman, was known for his technical smarts, articulating devising plans for Encana’s projects and seeing them through. “Gwyn liked to be the spokesperson and the leader what it should and the visionary and the communica- tor,” says Ryder McRitchie, who came have done to Encana via PanCanadian as a young engineer and rose to the executive instead) ranks, leading investor relations and communications before leaving in 2015. “Randy was a true engineer, operator, executor. He knew how to get things

S) operations off Canada’s east coast and in the U.S. Rockies, done. It was a good combo.” the Gulf of Mexico, the North Sea and Ecuador. It controlled Soon, Calgary saw Encana as part of the corporate home

SUTTLE Canada’s main gas storage and trading hub in southeastern team, much like WestJet Airlines and CP Rail. Albertans who Alberta; a promising offshore gas project off the coast of didn’t even work there took it as a point of pride when, in

’BRIEN, Nova Scotia, Deep Panuke; and two state-of-the art steam- 2005, Encana’s market value on the TSX surpassed that of (O , driven oil sands projects near Fort McMurray, Foster Creek long-time top dog RBC, accounting for about 5% of the S&P/ CP and Christina Lake. TSX Composite Index. (Coincidentally, O’Brien was the URK/

ST Encana’s creation was a relief to many in the oil patch. With chair of RBC’s board at the same time.) the loonie so cheap, there had been a simmering worry that With the city’s encouragement, Encana started drawing MIKE Canada could lose its best-known players to U.S. rivals. That up plans for a new office tower that would stand as a physi- fear was well-founded: Within a five-month span in 2001, cal testament to its world-class stature. With a billion-dollar SMAN) Gulf Canada Resources, Anderson Exploration and Canadian budget, Encana commissioned Foster + Partners, the elite (ERE CK ,

TO Hunter Exploration were all swallowed. And after the abrupt architects behind London’s Gherkin, to build its curvy new CP IS resignation of PanCanadian’s CEO, David Tuer, in October landmark on the prominent corner of Centre St. and 6th Ave. NA;

GUNN/ 2001, the standalone company had a target on its back. Then the tallest skyscraper in the city, the Bow would con- RA

ANK With Morgan as CEO and O’Brien as board chair, Encana solidate employees spread across five different buildings. HAR FR

SA expanded by drilling in the U.S. and plunking down billions By late 2005, Encana looked invincible, and Morgan decided

GAN) of dollars for natural gas assets in Colorado and Texas. Then, the time was right to hand the reins to Eresman. Not only was

(RIGHT) little by little, it divested its international assets, with Mor- the outgoing CEO turning 60, it was also the 30th anniversary (MOR

CP; gan choosing to focus on what the company did best: coaxing of AEC’s public market debut. Besides, his legacy was all but

H/ more oil and gas out of the ground in Canada and the U.S. for assured. On the day he announced his retirement, Morgan OS SPREAD less and less money. told The Globe and Mail: “You don’t put your life and your

MCINT The timing couldn’t have been better—for both Encana’s passion behind something unless you know you have the VIOUS right kind of person to carry it on.” PRE

JEFF shareholders and for Morgan’s legacy as CEO. Oil prices

MAY 2021 / REPORT ON BUSINESS 39 Within months, however, Morgan’s former pro- prices plummeting. Encana’s share price dropped by 55% in tégé was contemplating what the founding CEO four months, and management was forced to focus on simply considered unthinkable: breaking up Encana. staying afloat. By late 2009, the worst was over, and 99% of Investment bankers, armed with sum-of-the- Encana shareholders approved the spinoff of the oil assets parts calculations, were pitching Eresman on into a new company, called Cenovus. the idea of splitting it into two companies: one This should have been Eresman’s time to shine. A native of producing gas, the other drawing crude from Medicine Hat, he’d joined AEC after graduating with a degree W the oil sands. So-called pure plays were becom- in petroleum engineering from the University of Wyoming, ing the new holy grail, as investors clamoured for simplicity and he’d spent his entire career under Morgan’s wing. (Eres- and the ability to focus on a single commodity. man declined to comment for this story.) Now that Encana Morgan was technically still in the picture—he’d arranged was focused on gas extraction, he was eager to implement to hang around for a year as executive vice-chair to instill his growth strategy, built around an operating model dubbed confidence during the transition (or at least, that’s how he “the gas factory”—the idea that the fuel could be produced spun it). But there was little he could do about a potential almost as a repetitive manufacturing process. split. “One of the great lessons in life is that when the CEO is Internally, Eresman sometimes had trouble rallying the leaving, your influence is ending,” he says now. troops. Where Morgan had a knack for making employees The calls to break up Encana grew louder. Advisers salivat- feel like they were part of something bigger, Eresman was an ing over the fees they could earn from negotiating the split introvert who hated giving presentations, but he cared deeply talked up how much the two divisions could be worth sep- about his employees. “He was actually very self-aware,” says arately, since investors would supposedly be better able to McRitchie. “He talked about the different coaches he was value each business. Morgan says he never bought the hype. getting for his public speaking. And he wanted to be good at “If you think about it that way,” he says, “there’s no way you what he wasn’t good at.” can have a long-term vision about building a company.” The bigger issue for Eresman was that gas prices fell into Outraged, he stepped down three months early, though a funk. They’d clawed their way back to US$6 in January the company made it seem to outsiders like that was always 2010, when everyone was high on the post-crisis recovery, the plan. “I just did not want to be involved in breaking up but within two years, they’d dropped to US$2, a low not seen the company,” he says. (Morgan went on to become board since 2002. chair of SNC-Lavalin, where his tenure was tainted after a top In a way, Eresman had been right about unconventional executive admitted to paying bribes to Saadi Gaddafi in order gas. The old-school stuff had become problematic, and to land contracts in Libya. Morgan has always said the bribes competing producers were getting more sophisticated with were disguised as part of normal project costs, and there was their technical expertise. The problem was they used these no way for board members to detect them.) newly honed skills to tap vast quantities of so-called shale The split didn’t happen immediately, however. First, Eres- oil and gas in the United States, which never used to figure man flirted with turning Encana into an income trust to avoid into reserve estimates. As Encana touted its gas factory, paying corporate tax (a move Morgan also objected to). But rival shale producers such as Pioneer Natural Resources with other heavyweights like Telus and BCE contemplating and EOG Resources became masters of fracking—shooting the same move, Ottawa kiboshed trusts altogether. That put sand, water and chemicals into rock and forcing it to fracture, the bifurcation back on Eresman’s priority list. allowing oil or gas to escape through the cracks. For Encana, the goal was to make investors realize its gas Fracking spread through Pennsylvania, Louisiana, the Bak- potential, partly because gas was seen as more environmen- ken in North Dakota and the Permian Basin in Texas. The U.S. tally friendly than oil—and far cleaner than coal. “Everyone was suddenly awash in oil and gas, which spelled big trouble thought natural gas was the fuel of the future,” says O’Brien, for Encana and many other Canadian producers because it adding the company was constantly questioned about its meant their biggest export market morphed into their big- substantial exposure to the “dirty” oil sands. gest competitor. Eresman was similarly convinced natural gas prices were Eresman tried to expand the North American market by

bound to rise. Demand was surging, and the conventional promoting natural gas as a less expensive transport fuel and CK TO

producers couldn’t keep up because their wells were gen- investing in technology to make that happen. He also touted IS erally small and dried up quickly. Encana, meanwhile, was its environmental edge over gasoline and diesel. Still, the del- focused on unconventional gas plays deep underground. uge of gas pushed prices down. MAIL;

That made its wells more expensive but also more prolific. “I remember back when Encana announced they were AND

As gas prices rose, Eresman bet Encana’s technical prowess going to double their gas production within five years,” OBE would allow it to beat its rivals by pumping more fuel at a says New York–based equity analyst Phil Skolnick, who is GL THE

lower cost than they could. now with Eight Capital. “This was around 2010, and I actu- R FO

With the price of natural gas soaring toward US$13 per mil- ally downgraded the stock.” Because plans to build liquefied L lion BTU, Encana announced its split in May 2008. Manage- natural gas plants to export the fuel abroad were still in their RO ment had given its oil sands unit a strong foundation to go it infancy, the newfound supply was landlocked in both Canada KO DD

alone, having formed a US$15-billion joint venture with U.S. and the U.S. “So that scared me,” Skolnick says. TO oil major ConocoPhillips that secured access to refineries in It scared the market, too. Over two years, Encana’s stock K) Illinois and Texas. Just four months later, however, the global dropped by 52%, wiping out any gains made after the crisis. JAC financial system nearly imploded, sending both oil and gas The company started promoting its natural gas liquids— (PUMP

40 MAY 2021 / REPORT ON BUSINESS “What happened to Encana happened to most energy companies...... They got hit by a very substantial revision in energy prices,” says former chair David O’Brien condensate and commodities like propane and butane, Doug Suttles wasn’t well-known in Canada, but he’d gained which are byproducts of gas production. It even talked up its enormous profile in his previous role. As chief operating offi- remaining oil production, all while trying to calm investors cer of BP Exploration & Production, he was the point person by reminding them it had hedged a large chunk of its natural as BP struggled to stem the flow of crude gushing from the gas output around US$6 through 2012. Macondo oil well into the Gulf of Mexico in 2010. Eresman also went hunting for joint ventures, hoping to Suttles’s first order of business was a four-month review to accelerate development of Encana’s reserves in the Montney see which of Encana’s assets could be kept and which could Formation in northeast British Columbia while splitting the be sold off. He ended up chopping 27 operating areas down development costs. He snagged a big one: PetroChina bought to five to accelerate the shift to oil and gas liquids. He also half a project for $5.4 billion. At the time, Chinese interest in slashed 800 jobs—about 20% of the company’s workforce— Canadian energy seemed limitless. But a few months later, including several top executives; closed its office in Texas; the deal fell apart because of a disagreement on its structure. and reduced the company’s dividend by more than half. “I With writedowns piling up—including a US$4.7-billion remember early on asking him what had been the secret, if impairment charge in 2012—Encana finally struck a $2.9-bil- you will, to his success,” says McRitchie, “and he said, in a lion joint venture with Japan’s Mitsubishi Corp. to develop word, ‘focus.’” a massive field in Western Canada. Then PetroChina came Suttles also zeroed in on Encana’s royalty-free lands as an back at the end of 2012, paying $2.2 billion for a 49.9% stake in unexploited source of cash. Woitas—who’d replaced O’Brien a gas project in Alberta’s hot Duvernay Formation. as chair when Suttles took over—backed the idea of a royalty A month later, however, Eresman was gone, effective imme- division that would see Encana essentially play landlord to diately. His so-called retirement at age 54 was announced late other drillers and harvest the rent. Woitas knew the business on a Friday. The company later said he was “fatigued.” well, being a proprietor of a similar company himself. In 2014, Encana announced the $1.5-billion initial public offering of PrairieSky Royalty. A few months later, Encana In the early months of 2013, Calgary was rife sold off its remaining stake for $2.6 billion. PrairieSky also with rumours about who would take the reins bought Range Royalty LP—of which Woitas was chair and at Encana. The wrong boss could push the com- CEO—for $699 million. (Woitas declined to comment for pany into the hands of a foreign buyer, as had this story, as did Suttles and Ovintiv.) just happened with struggling oil producer The changes kept coming. In the same year, Encana paid Nexen Inc., which was snapped up by the Chi- US$3.1 billion for a position in the red-hot Eagle Ford shale nese. fields in Texas, then spent another US$5.9 billion in cash for I The search for Eresman’s successor was led Athlon Energy, giving it a sizable stake in the state’s oil-rich by Clayton Woitas, an oil patch veteran and Encana direc- Permian Basin. To cover the cost of the deals, Suttles put the tor who stepped in as interim CEO. By June 2013, he and the PrairieSky proceeds to work, and also unloaded infrastruc- board had decided on an oilman with no emotional attach- ture assets such as gas plants and other non-core properties. ment to Encana’s history—one who could deliver a badly The sell-off included its Jonah natural gas assets in Wyoming needed shakeup. for US$1.8 billion; last year, the company that bought them

MAY 2021 / REPORT ON BUSINESS 41 “They got seduced by the valuations of the pure play,” With investors losing hope, Encana says one equity analyst floated the idea of relocating to the U.S. Suttles had already done it himself. In March 2018, the CEO informed Encana staff he was moving to Denver, where the com- TSX OVINTIV CNRL CENOVUS pany had an office, citing personal reasons. 120% Half its employees were already based in 100 the U.S. anyway. When Encana was asked 80 if this portended something bigger, offi- 60 cials were adamant a full-blown relocation 40 wasn’t in the cards. “The answer to that is, 20 absolutely not,” a spokesperson said at the 0 time. “We’re a Canadian company. We’re -20 headquartered in Calgary. This decision -40 doesn’t change that in any way.” -60 A year and a half later, Suttles went for -80 it—and tacked on the name change for -100 good measure. Executives explained that, 2008 2010 2012 2014 2016 2018 2020 as a Canadian-based company, Encana was missing out on much of the passive share- holding its U.S. peers were enjoying, and defaulted on its debt and had to be restructured. that put pressure on the share price. Suttles said the compa- In theory, Suttles’s heavy bet on oil—the commodity ny’s entry into a host of new stock indexes, such as the S&P Encana had all but abandoned five years earlier—made sense. MidCap 400, would mean US$1 billion in new investment as But the timing was unfortunate. In late 2014, OPEC kingpin the shares got scooped up into exchange-traded funds. Saudi Arabia decided it was done with reducing its own out- Some Canadian shareholders, including Letko Brosseau & put to prop up world oil prices, while other countries, nota- Associates, which held 4% of the stock, raised a fuss, saying bly the U.S. and Canada, pumped full out. The Saudis cranked the company might actually lose Canadian investors. None- open their taps, and the price of West Texas Intermediate oil theless, shareholders approved the redomicile strategy. And tumbled from US$105 a barrel in June 2014 to US$53 by the Encana was no more. start of 2015. By the end of the year, it hovered below US$40. Encana and its peers dealt with the “lower for longer” era by slashing capital spending, laying So who killed Encana? Gwyn Morgan and David off staff and issuing stock to keep debt ratios in O’Brien—the company’s co-founders, once like check. By mid-2016, Encana’s share price, which brothers—are at odds. had been hammered during the worst of the oil- “It all comes back to the Trudeau government’s price rout, began to recover thanks to internal policies,” says Morgan, an avowed conservative austerity, along with the company’s focus on its who can barely say the Prime Minister’s name Permian and Eagle Ford assets in the U.S. and its without seething. He never quite articulates what Montney and Duvernay plays in Canada. S the government could have done differently, but That is, until late 2018, when Suttles surprised investors his argument generally suggests Liberal policies put a chill with the US$5.5-billion acquisition of Newfield Explora- on investment dollars, sealing Encana’s fate. tion. The deal provided an entry into what had been seen O’Brien doesn’t buy it. A Montrealer and former corpo- as a promising shale play in Oklahoma, but the fervour had rate lawyer at Ogilvy Renault, he moved to Calgary in the already started to fade by the time Encana arrived. The take- late 1970s to become general counsel at Petro-Canada. “I tend over also increased Encana’s debt (again) because Newfield to have a more pan-Canadian view of things, as opposed to had US$2.2 billion in net debt on its books. an Alberta view. And I don’t think the government had any- To Encana’s credit, the deal prompted multiple debt-rat- thing to do with what happened to Encana, frankly,” he says. ing agencies to upgrade its credit profile, expecting that the “I’m an investor in a couple of private oil companies, and of additional geographic diversification and heavier skew to course the lack of market access has been an issue, but that oil would help its balance sheet. But many shareholders felt was an issue that happened during the Conservative regime, blindsided, and the stock tumbled by more than 12% on the as well.” day of the deal. It has yet to recover. If anything, O’Brien says, government is the reason Encana At the same time, Suttles’s compensation was becom- had a fighting chance in the first place. When he and Mor- ing an issue. From the time he took over to the end of 2020, gan pitched the initial merger back in the early 2000s, they Encana’s stock lost more than 80% of its value. Yet, Suttles was presented it as a merger of equals, with no premium paid to paid US$92 million over the same period (though some of his shareholders. It was a risky bet, particularly because a deep- shares and options have lost value as the stock price dropped). pocketed foreign player could have easily picked off one or

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This content was produced by Randall Anthony Communications,inpartnership with The Globe and Mail’s advertising department. TheGlobe’s editorial department was not involved in its creation. both of them. But they made their case in Ottawa, and the fed- its 2008 peak, but the company’s shares have returned to pre- eral Liberals signalled the merger was off limits to foreigners. COVID levels, and its dividend has increased by nearly 20% As for the decision to turn Encana into a pure play, Morgan annually when compounded over 13 years. is adamant: If the company had kept its oil assets, “Encana “Canadian Natural was chasing us all the time,” Morgan would still be in Canada.” says of Encana’s rival, headed by billionaire Murray Edwards. Once again, O’Brien isn’t so sure. “That was the fatal mis- CNRL has been “battered and beat up but still came out rela- take, in a sense—because commodities come and commodi- tively well, and I admire them for that. They are now the flag- ties go, and if you’re solely dependent on one, it hurts a lot.” ship Canadian company. And I’m glad somebody has at least But it’s only part of the story. “I’m not as convinced it would picked up the flag.” have made as big a change as you might think,” he says. “What Owning oil assets isn’t the only way Encana could have happened to Encana happened to most energy companies. diversified. The company also used to own pipelines, along They got hit by a very substantial revision in energy prices, with storage and gas plants, but sold those assets over many both in oil and in natural gas.” And it’s not as though one arm years for short-term financial gains. In-house, these assets has performed dramatically better than the other. “Cenovus might only generate returns of six to eight times annual cash has been terrible. Encana has been terrible,” O’Brien says. flow, yet they can sell for 12 times cash flow—money that can He puts the blame on the shale revolution—an unstop- be used to fund more gas production. McRitchie argues the pable force that bowled over the industry. This was largely a straight math is too simplistic. “What are the intangibles, the technological disruption, no different than the way Facebook insights you get from having that integrated business?” He destroyed the ad business or Netflix killed movie rentals. also notes infrastructure assets are now some of the hottest Of course, O’Brien is biased. He oversaw the split, whereas in the entire energy sector. “They’ve become the dominant Morgan wanted nothing to do with it. But in Calgary, there’s businesses,” he says, “because they’ve built and created this some sympathy for O’Brien’s argument, because so many power over the exploration and production companies.” gas producers have been brought to their knees. Early this Having these operations in-house helps a company control year, former natural gas powerhouses Arc Resources and how much it drills. By owning refineries or pipelines, it isn’t Seven Generations merged to weather the storm. “I don’t wedded to long-term external contracts to supply oil or gas. think any of it really could have been prevented,” says Stacey Chasing these benefits, Cenovus announced a deal this past McDonald, a former equity analyst who’s now a director at October to buy Husky Energy, adding sizable oil-refining gas producer Birchcliff Energy. “A lot of it was a function of capacity in Canada and the U.S., plus offshore operations off the massive transformational shift to horizontal drilling and Canada’s east coast and in the South China Sea, as well as a the improvement in productivity from wells.” network of gas stations. This revolution has shaken Canada’s natural gas industry As for the future of the company formerly known as Encana, to its core. In 2018, the Alberta government commissioned in March Ovintiv sold its Eagle Ford assets—the ones Suttles three experts—former TransCanada CEO Hal Kvisle, former spent US$3.1 billion to acquire in 2014—for US$880 million. Canadian Energy Pipeline Association CEO Brenda Kenny Just a few weeks earlier, it let go of its Duvernay holdings in and former Husky Energy exec Terrance Kutryk—to report Alberta for US$263 million, cutting one more thread to Can- on the future of the province’s producers. Their conclusion ada. Ovintiv’s stock has rallied in the past six months, but it’s was grim. “Our dominant export market is now our primary coming off an abysmal low; at the end of March, the shares competitor, and Western Canadian gas will struggle to retain, were worth less than a quarter of what they were trading for let alone grow, its market share within North America,” the during the global financial crisis. Suttles has pledged to slash panel warned. It’s a far cry from Morgan’s glory days, when debt, and the company has promised to update its compen- Canadian oil and gas was the answer to energy independence sation policies following pressure from an activist investor. for the West. Looking back now, splitting up may have been Encana’s Yet over the past three years, the U.S. shale industry itself original sin, but there’s no single culprit for its demise. Many has been decimated, and numerous companies have filed of the worst decisions made by its leaders were arguably exe- for bankruptcy. While the supply is monumental, the fun- cuted with the best of intentions, like Eresman’s bet on natural damentals aren’t, because the wells decline so quickly. “It is gas as a way to get ahead on sustainability. But the executives so short-cycle,” says Robert Fitzmartyn, an equity analyst at could only control so much. “The world changed dramati- Stifel FirstEnergy. “Thirty-five to 40% of your return is cap- cally around us,” says McRitchie, reflecting on Encana’s wild tured in your first year.” Drilling rights must also be negoti- ride. The same could just as well happen to the new crop of ated with hundreds, sometimes thousands, of land owners, clean energy companies that look unstoppable today. “Your who grant short-term permits. In the Montney in B.C., mean- strategy needs to be live,” he warns, “not entrenched.” while, “you can hold your land for far longer, on less capital As for Morgan, he’s made some peace with the unravel- invested, than in the United States.” ling. “I knew they were ultimately going to go to the U.S.,” he The problem for Ovintiv is that its current structure admits. “I’ve always said: If you want to have your company doesn’t allow for enduring a decade-long disruption. “They move, make sure you hire an American CEO. The writing was got seduced by the valuations of the pure play,” Fitzmartyn on the wall.” says. He contrasts this with Canadian Natural Resources Ltd. But there’s still something he’ll never get over, something (CNRL), Canada’s second-largest gas producer—which also so personal he just can’t shake: “Why would they get rid of has substantial oil sands production. Its stock is still 28% off the Encana name?”

44 MAY 2021 / REPORT ON BUSINESS 2021 CALL FOR ENTRIES

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Which is entirely appropriate, given his line of work. They’re big. And blue. Maybe steel blue or cerulean, according to Crayola’s universally popular colour charts. They’re the kind of eyes other human beings wish they had. Well, except for the correction. His prescription is -6, which means he’s someone with high near- sightedness. Add to that high astigmatism, keratoconus and your normal level of presbyopia that comes with middle age—all of which Amiel readily acknowledges during a meeting at New Look Vision’s headquarters in Montreal in early March. “Nothing bad,” he says, chuckling in his self-deprecating way. Keratoconus, incidentally, is a condition whereby your cor- nea—the dome-shaped front surface of your eye—gets thinner and bulges out into a cone shape over time. And it tells you a lot about Amiel, New Look’s chief executive and the chief architect of the glasses retailer’s dazzling growth over the past eight years, that he sees it as a resource as much as a complication. As we walk toward his decidedly non-fancy corner office, he reveals that he uses the keratoconus as a way to assess the skills of the eye doctors working for New Look’s potential takeover targets. His MO: Pose as a patient and go for an eye exam with an a key reason firms like Mawer Investment Man- optometrist who’s received high praise from a seller. If the spe- agement became New Look shareholders. And cialist detects it, that’s good. Miss it, as some do, and the entire he’s a main attraction for U.S. private equity firm takeover can be thrown into question. As Amiel explains: “If the FFL Partners and pension fund Caisse de dépôt et seller gives you a raving review of his star opto…and he is wrong placement du Québec, which unveiled a proposal about that, what else is he going to be wrong about?” in March to buy New Look for $800 million and It’s just one of the clever tactics in the arsenal of the Paris-born take it private. corporate finance whiz, who has transformed New Look from a The CEO is looking deeply inward at how to snoozy regional retailer into Canada’s biggest optical chain. Since make the company more profitable and rele- he joined the company in 2012 as vice-chair and head of strat- vant—a perfectionist intent on using technology egy (becoming CEO three years later), New Look has steadily and a committed workforce to deliver a near- gobbled up competitors across the country while building same- flawless pair of glasses and customer experience store sales. Before COVID-19 hit, the company had tallied organic unmatched by low-cost rivals. He’s also looking growth over 22 straight quarters. Its share price has nearly qua- far out at what New Look could become. And his drupled since Amiel started. ambition for the company—to one day challenge The global eyewear industry is roughly the same size as skin- for the No. 2 spot among global eyewear retailers, care, with sales forecasted to top US$130 billion this year. It is up from 14th place—is much bigger than anyone a market dominated by independent, single-store operators and previously imagined. one multibrand mammoth, French-Italian multinational Essilor- “Most of us [working here] go home every night Luxottica, which controls the Ray-Ban, Clearly and LensCrafters thinking, Hey, we had the chance to change the lives banners, among others, and is weighing the purchase of Dutch of 3,000 Canadians today,” Amiel says, reflecting giant GrandVision. New Look is the only one of the top 15 players on his personal motivation and the ambition felt to operate in a home market of fewer than 100 million people. by New Look’s employees. “Maybe we screwed up

New Look was a solid retailer before, but Amiel seems to have a few, or they didn’t need a prescription. But this L’ÉLOI given it a fresh life and purpose. It might not be defined by a “cult is the mood. An eye examination is a chance to of the CEO” in the same way as Elon Musk’s Tesla or Apple under change a life. It sounds pompous. It sounds like a CHABOT/ Steve Jobs. But its success is tightly tied to his leadership. He’s brain surgeon almost. But this is what it is.” LM

48 MAY 2021 / REPORT ON BUSINESS behind Essilor’s Toronto facility. And if you’ve ever had an eye exam and talked with an optician about lens and frame options, only to balk at the final price, you have to understand why they cost Those inside and outside the company describe the 52-year-old hundreds of dollars for this level of quality. Manu- polyglot executive as a locomotive—a methodical, data-driven facturing glasses is surprisingly complex. leader who works so hard his peers have been known to tell him The peculiarity of the process begins near the to slow down. They say years in the optical industry has given front door, with a machine installed as part of Amiel an instinctual feel for both the day-to-day operational COVID-19 safety protocols. You stick your arms intricacies of the business and the big-picture strategies to pur- in two tubes that make up a mandatory automatic sue. He understands how to make eyewear factories operate handwasher, which lathers and rinses in a few sec- as well as he understands how to sell the product. He can read onds. The purpose is to lower the risk of bring- the global landscape without losing sight of local markets. And ing in any contaminants that could threaten the it’s all informed by a sensitivity gained from his experience liv- round-the-clock operation. “A n epidemic [in the ing on three continents. Like crosstown retail compatriot Alain factory] would be catastrophic for us,” Amiel says. Bouchard of Alimentation Couche-Tard, he never does an acqui- Inside, the space is divided into process-spe- sition without visiting the retail locations and talking to as many cific stations, with roughly 130 people rotating staff members as he can. Like Bouchard, his vision stretches far through three shifts. Lenses arrive from the sup- beyond the sometimes parochial walls of Quebec Inc. plier in a semi-finished state and look a bit like When Amiel first set his sights on New Look around 2010, he clear plastic hockey pucks. After the lenses are set wanted to buy it outright. He was in his early 40s at the time, an for handling, computer numerical control (CNC) already accomplished executive with the Japanese optics giant machines called generators grind away material Nikon, leading its North American and U.K. lens supply business. from the back of each lens, with an imbedded dia- Preparing to be called back to Japan and not thrilled by the pros- mond knife hitting the plastic about one million pect of waiting years at Nikon’s head office to obtain the same times to create the desired thickness and prescrip- level of managerial freedom he had, he pivoted from wholesale to tion. Polishing, engraving and photographing for retail (it’s “a bit more exciting”) and got serious about New Look, quality control follow, after which the lenses are then a tiny optical chain operating in one of the most profitable inspected once more before receiving the proper and least competitive markets in the world: Quebec. prescription and cosmetic for the future wearer. New Look chair John Bennett, a low-profile merchant banker There’s lots of stainless steel, and everyone is who is the company’s biggest shareholder, with a roughly 35% wearing a white lab coat. But it all feels a bit more stake, asked Amiel what he’d do with it. The Frenchman out- free-flowing than other manufacturing facilities. lined his thoughts for leveraging and expanding it profitably, to If an order is cancelled mid-process, the lenses are which Bennett said: “Well, that’s fascinating. Come back with the scrapped outright because the chance they’ll fit money, young man,” Amiel recalls. It took Amiel several months someone else is remote. “The thing about optical to find the right Bay Street backer, after which another informal production is that these are not very stable pro- approach was made to Bennett. But the chats never really went cesses,” Amiel says. “The yield goes up and down, anywhere, and the whole deal never got serious. and every job is custom. We really make 3,000 dif- “He called me one day and said, ‘Forget the Toronto boys. Come ferent items a day on a very tight timeline. There’s work for me,’” says Amiel. “I was a bit pissed off. It took a couple a bit of chaos built into the thing.” more years for him to attract me in, but that’s how it came to be.” Unlike some of its rivals, New Look does not Any bitterness he might have taken from that experience has sell glasses without anti-scratch protection. So long since vanished, much like his penchant for fuelling himself the lenses go to a multistage dip bath, where they during those early days at New Look with fridges stocked with receive a baked-on layer of varnish. Then it’s off Red Bull. Today, Amiel—a father of three who’s built a bit like a for anti-reflection coating, in which an ion gun rugby scrum half—seems squarely focused on the future. Tech- zaps each lens with a cocktail of silica materials nology and further ownership consolidation, he says, will change in a vacuum-sealed chamber. The TV news is full the face of the optical industry in the years to come. Already, of bespectacled people who haven’t paid for this New Look is taking major steps toward implementing virtual face option, Amiel says almost disapprovingly—you scanning that will deliver better-fitting glasses and planning for a see mirrors where their eyes should be. The exact day when it can manufacture a big percentage of its own frames shape and measure of the frame is then taken, and in-house, instead of having to source them from China. Within the lenses are cut, or “edged,” for a proper fit. five years, he predicts, it will likely be possible for a customer Throughout the plant, there are sounds of to have their eyes examined, get fitted for frames, and order and machines drilling, hissing and beeping, of water receive them—all without leaving home. “It would mean a web- and oil whooshing through a closed-loop recy- cam would be precise enough to do a medical examination,” says cling system instead of draining into municipal Amiel. “There are major technological challenges. There will sewer lines. But the most intriguing spot of all is also be many regulatory challenges. But it will eventually come.” also the most silent. In the mounting area, a hand- More than 60% of Canadian adults over 18 use vision correc- ful of individuals sit isolated from one another in tion. And for now, any of them who order glasses from a New low-walled pods and, in deep concentration, deli- Look–owned store most likely end up with lenses made at the cately snap lenses into frames by hand and fine- company’s headquarters and main manufacturing facility in tune the assembled prize as if they were solving a Saint-Laurent, a stark, two-storey concrete slab of a building continuous series of Rubik’s Cubes. Here, dexter- spread over 60,000 square feet near Montréal-Trudeau airport. ity is king—there’s not a machine to be seen. This is the second-biggest lens-making factory in Canada, Every pair of lenses in the New Look factory is

MAY 2021 / REPORT ON BUSINESS 49 mounted into its frame by hand. Because the chance of break- Amiel has a different view: He wants to get the fit age is so high, this is one process that simply can’t be automated, as perfect as possible off the bat and offer custom- Amiel says. Every lens varies in thickness and diameter. And the ers a pair of glasses online with the same quality workers have to apply just the right amount of pressure to fit it as those bought in-store—something that’s been properly in the frame without dislodging the coating. The basics little more than a pipe dream until now. of the job can be learned in three months, but the best workers Late last year, New Look launched an aug- have been doing it for upwards of a quarter-century. mented-reality software application to push this A pair of glasses goes from order to ready for pickup in-store tailor-made strategy. Using 3D depth-sensor tech- in about six days. New Look sells contact lenses, too, but they’re nology developed by Topology, it scans 20,000 ordered directly from the manufacturer. That’s more of a com- data points on a person’s face in order to build an modity business, and the profit margins are lower, Amiel says. ultra-accurate portrait that’s precise to fractions The vast majority of frames being mounted here are made in of a millimetre. Customers take a video selfie, and China, and typically 15% of them are unsold at the end of each after the exact measurements are achieved, they season. Some of those are donated to people in need, but an esti- can try on different models of glasses and tweak mated 5% end up in recycling centres or landfills. Amiel is hatch- them to suit their vision needs and tastes. The ing plans to cut New Look’s reliance on these Asian imports. He company is readying a more sweeping rollout of wants to start making frames in the lens factory with proprietary the technology this spring. technology scaled up from Topology, a bespoke glasses maker To place lenses in a frame, you need six very based in San Francisco. precise measurements, including the distance New Look has a major investment in Topology and exclusive between the lower rim of the frame and your rights to use its technical know-how in Canada. Amiel estimates pupil, Amiel explains. And that’s frame-specific. 30% of the frames the company sources from China could be What New Look brings to the market with Topol- made in-house within five years on the same machines it cur- ogy tech is the ability for people to buy or replace rently uses. The goal: to improve quality and bring made-to-fit to their eyewear without coming into a store for the the masses. two years the prescription is valid. The partner- “This is going to be the next breakthrough,” he says. “From a ship with Topology is the backbone of New Look’s financial point of view it will be great—less inventory, less ship- organic growth plans. The goal: to offer custom- ping, less duty. But beyond that, for society, I think this is the way ers the same experience online as they can get in- frames should be made.” store, at the same price. Online retailers came into the optical trade about 15 years ago with the assumption that glasses were too expensive, technology could make them cheaper and everything could be done online, Amiel says. “None of that has come to be The vast majority of glasses in the world today are mass manu- true. Glasses are not too expensive to do a proper factured to fit a perfectly symmetric face that, for the most part, job. Not everything can be done outside a store. doesn’t exist. From the size of our nose bridges to the location of And because the [online guys] came in with this our ears, not many of us are perfectly proportioned. Add to that price of $100 or $150 a pair, they’ve been stuck in the sheer variety in individual vision correction, and you have the discount segment.” a high probability of being let down in your eyewear shopping Once virtual face measurement is perfected, experience, especially if you buy online. the next major advancement will be delivering Retailers like Warby Parker mitigate this problem by shipping refraction testing remotely. That’s when the doc- its customers several pairs to try before buying. Others that offer tor makes you look at a chart, puts different lenses glasses for under $100 are likely betting people care less about in front of your eyes, and asks “better” or “worse” the fit if the price is cheap. And you can always go to a bricks-and- in order to figure out your prescription. Amiel mortar optometrist, many of whom will adjust mail-order specs. predicts that will be available online within two

50 MAY 2021 / REPORT ON BUSINESS years. A complete eye exam is the ultimate step toward a fully It’s clear some of New Look’s current investors online experience. are skittish about the prospect of such a transfor- Just as technology is freeing the eyewear customer from having mative acquisition. (“That scares me,” says Mawer to spend hours in-store, going private, if the proposal is approved, portfolio manager Jeff Mo.) But others applaud will likely free New Look to make acquisitions at a pace and size Amiel’s moxie and say the retailer has outgrown it never dared as a public company. Amiel’s first acquisition was the usefulness of the Canadian public market. Vogue Optical, an Atlantic Canada chain with a ubiquity rival- New ownership brings access to bigger pools of ling Tim Hortons. Despite the region’s challenging employment capital. And that’s necessary if New Look wants to levels and incomes, Vogue’s employees are “completely commit- play on the global stage. ted,” and the purchase has delivered in spades, he says. The CEO will benefit from a few tailwinds as The acquisitions of Greiche & Scaff, Forward Vision, Visions he grows the company, including a pilot project Optical and IRIS followed, in addition to a few independents. In to sell hearing aids and other high-margin ancil- 2020, New Look dipped its feet into the U.S. market with its pur- lary products. As he told shareholders in his last chase of Edward Beiner, a Miami-based purveyor of eyewear that annual report letter: Humans’ aging process trig- can cost thousands of dollars (think glasses made of high-grade gers near-vision loss from the late 40s and hearing titanium and finished with real gold). The deal closed just as the deficiency from the early 60s. These age groups World Health Organization declared a global pandemic. will expand at twice the rate of the general popula- “His No. 1 concern was our employees. He knew very well that tion for the coming decade. That’s supplemented in the luxury world, it’s about location, product and personnel. by a worldwide myopia epidemic stemming from You need to have the right people to be able to sell these glasses,” increased screen time and other lifestyle changes says the Brazilian-born Beiner, who runs the 12-store chain that among younger people. Starting with the millen- bears his name. Beiner reopened his outlets in May 2020. Sales nials, people need vision correction earlier. that month were down 24% year over year but started picking up But the competition isn’t letting up. Many inde- fast. He remembers a Zoom meeting with Amiel and New Look pendent operators are carving out strong retail finance chief Tania Clarke in early summer during which he niches serving specific markets and ethnic groups. asked for more inventory, particularly for brands like Cartier and New disruptors like Australia’s Dresden Vision, Jacques Marie Mage. “Those big blue eyes were staring at me,” which sells single-vision lenses and frames start- says Beiner. “I’m saying, ‘I need more product,’ and he’s looking ing at US$35 that customers assemble themselves, at me like, Are you nuts? There was this pause. And then he said are determined to shake up established play- ‘Do you believe in it?’ And I said, ‘A bsolutely.’ And he said ‘Okay, ers. And online retailers like Vancouver-based do what you have to do.’” Clearly, owned by EssilorLuxottica, will only get New Look is coming out of COVID-19 with record revenue as better. Will Amiel be able to meet the challenge? it benefits from pent-up demand and increases its market share. The proof is “in the pudding” in terms of what The company’s EBITDA margin in the third quarter was 39%, he’s been able to accomplish so far, says Cooper. which could signal a new profit “paradigm,” says Beacon Securi- Once the privatization goes through, however, the ties analyst Doug Cooper, who raised his 12-month price target window into New Look’s financials will largely on the stock in November to $55. go dark. We’ll never know how successful the But a stock that barely traded will likely soon not trade at all. CEO’s moves have been (at least until the next big New Look discreetly began a formal process last year to seek new corporate play years from now). Amiel says that ownership willing to take its business to the next level. Under the could just as likely be an initial public offering as a proposed deal announced in March, FFL and the Caisse de dépôt takeover by another private equity firm. “By then, will take over the company and bankroll its effort to further con- we will be seriously committed to international solidate the Canadian market and build its U.S. footprint, Amiel expansion beyond North America,” he says. says. After that, there might be some “fairly big” overseas oppor- The CEO might be nearsighted with a -6 cor- tunities if more retailers become available and EssilorLuxottica rection. But his vision for New Look’s future has meets antitrust resistance trying to buy them. rarely been clearer.

MAY 2021 / REPORT ON BUSINESS 51

WEALTH SMART MONEY

DAVID PICTON PRESIDENT, CHIEF EXECUTIVE OFFICER AND PORTFOLIO MANAGER PICTON MAHONEY ASSET MANAGEMENT, TORONTO David Picton launched his investment firm in 2004 to many companies committed huge focus on authentic hedge fund strategies to help protect amounts of capital to new mines. investors’ money, rather than swing for the fences. It takes about 10 years to work through the oversupply. Demand is The firm, co-founded with Michael Mahoney, has grown now potentially accelerating, but to nearly $9 billion in hedge fund and other alternative there will be a point when supply investments, as well as pension vehicles and long- can’t keep up with demand. We see only mutual funds. Among Picton’s own portfolios, a good opportunity, particularly in his $181-million Picton Mahoney Long Short Equity copper, that cannot get displaced or hedge fund has outpaced the S&P/TSX Composite disrupted. It might even have more Total Return Index over the long haul. We asked the demand growth from electric vehi- cles, the electrical grid and rebuild- 55-year-old growth manager why he’s bullish on copper ing infrastructure. stocks and owns bitcoin, too. First Quantum Minerals is a top copper play for you. Why? When picking stocks, why do you favour First Quantum has gone from building mines to a momentum strategy? harvesting cash flow from them, which is a posi- Positive fundamental change is the most power- tive change. It operates the Cobre Panama mine, ful driver of stocks and tends to generate stron- has assets in Zambia and now has significant lever- ger returns. It can mean a company is improving age to higher copper prices. China’s Jiangxi Cop- because of rising revenue or profits, or changing per acquired about an 18% stake in First Quantum for the better in other ways. If our quantitative or in 2019 and had a standstill agreement prohibiting computer-driven signals overlap with our funda- a takeover that expired last month. We don’t know mental research, which includes company meet- yet what Jiangxi’s intentions are. ings, we get higher conviction on a name. You also own some bitcoin. What’s the attraction? What is your outlook for Canadian stocks given I have a small position through a closed-end fund. I that COVID-19 vaccines are now rolling out? started buying bitcoin after [payments processor] I think the Canadian market can do better than the PayPal announced in October that it would let its U.S. this year. We’ll probably have the strongest customers buy and sell the cryptocurrency. That GDP growth rate in decades, on top of massive fis- was a significant positive change, which added cal and monetary stimulus. That tends to benefit more legitimacy to bitcoin, as well as more poten- cyclical stocks and bodes well for the domestic tial buyers. We thought this would increase the market given its financial and materials exposure. likelihood of further price gains. We’ve transitioned our portfolio, in which we What sectors are you bearish on? had more technology-oriented stocks last year, to We think office and retail real estate investment more cyclicals such as banks, energy and metals. trusts could be challenged, with more employees Why are the Canadian banks attractive? working full or part time from home. Other sectors Loan loss provisions are falling, credit is growing include high-multiple traditional electric utilities as the economy gets better, and banks’ net interest and technology companies, which are sensitive to Y margins will improve as the yield curve steepens. rising interest rates, while some firms acquired by We also like specialty financial companies, such as special purpose acquisition companies have high

MAHONE Element Fleet Management and Trisura Group. valuations and can be vulnerable. /Shirley Won N

TO Given the renewable energy trend, why do you like

PIC oil and gas stocks? CE Traditional energy companies will face incredible PICTON MAHONEY LONG SHORT EQUITY FUND UR (CLASS F) ANNUALIZED % TOTAL RETURN*

SO demand in an economic recovery. Because access T to capital to grow their businesses has tightened 1-YEAR 33.9 5-YEAR 12.3 CHAR due to environmental concerns, demand will out- SINCE INCEPTION (SEPT. 2006) 8.9

WIS; pace supply. Oil could hit US$100 per barrel again, LE but not for long because of the move toward green S&P/TSX COMPOSITE TOTAL RETURN INDEX energy and environmental, social and governance

ANGELA investing. We like Suncor Energy in this sector. 1-YEAR 14.7 5-YEAR 8.8 APH Why are you upbeat on copper among metals stocks?

GR SINCE INCEPTION (SEPT. 2006) 6.1 The last commodity boom peaked around 2011, TO * RETURNS TO FEB. 26, 2021. when China’s demand began to decelerate, but PHO

MAY 2021 / REPORT ON BUSINESS 53 SOFTWOOD LUMBER (CME Globex) VS. SHOPIFY (TSX) FOR YOUR CONSIDERATION Indexed. April 1, 2020=100 400 (% CHANGE) STINGRAY GROUP INC. MONTREAL

REVENUE (FISCAL 2020) $307 MILLION

300 THREE-YEAR SHARE PRICE CHANGE -32%

P/E RATIO (TRAILING) 21.1 200 Stingray is a fast-growing audio and video provider, but CEO Eric Boyko, RANDOM LENGTH LUMBER FUTURES who co-founded the company in SHOPIFY 2007, concedes he’s not a music 100 superfan. He recalls introducing himself to a glamorous VIP at the 2011 Canadian Grand Prix in Montreal. “I really like your song Waka Waka, Rihanna,” he said. She 0 replied, “Oh, I love the song as well. APR. 2020 JAN. 2021 But it’s not me, it’s Shakira.’’ Technological upheavals have DECODER knocked the traditional music and broadcast businesses off their axes. KNOCK ON WOOD Yet in Canada, radio, TV and online platforms are all still dominated by established giants, including Bell, If you visited a home since the beginning of Association of Home Rogers and Quebecor. Upstarts need improvement outlet April 2020. Builders warned that to find niches. on a quest for two-by- What’s going on here? pricier wood is adding Stingray has grown mainly by fours in recent months, At the outset of the crisis, US$24,000 to the making clever acquisitions. Boyko you likely experienced lumber mill operators— March 2020 price of the and co-founder Alexandre Taillefer sticker shock. Over the like most economists— average new single- launched the company by buying past COVID-plagued thought the pandemic family home. South Carolina–based Soundchoice, year, lumber prices have and related lockdowns This isn’t just a the largest legal provider of karaoke phenomenon exclusive roughly quadrupled, would cripple consumer tracks in Western markets, for just standing at just under demand, so they shut to lumber, though. $6 million. It was owned by two US$1,000 per 1,000 down production and Commodities from brothers, “and both of them got board feet at the end laid off workers. Instead, soybeans and coffee to separated,” Boyko says. “So, they of March. That’s after the world embarked on a crude and copper have needed to liquidate their shares.” averaging around renovation and home- all been marching higher, Since then, Stingray has acquired US$250 for more than building boom, thanks as expectations build for more than 40 other businesses. four decades. to a combination of a strong post-pandemic Three big deals were milestones: To put the spectacular record-low interest rates, recovery. In 2011, it paid $65 million for the run-up in lumber prices a gush of government You won’t find CBC’s Galaxie music service on in perspective, we money, boredom and Canada’s biggest hewers cable and satellite TV. In 2015, compared it to Shopify, an urge to upgrade our of wood complaining. Stingray went public on the TSX the e-commerce giant surroundings. By the Canfor, Interfor, Resolute and raised $140 million. Three that’s become Canada’s time mills resumed and West Fraser Timber years later, it bought Newfoundland stock market darling production, supply had have seen earnings Capital Corp. for $506 million from over the course of fallen far behind demand. surge along with their the family of entrepreneur Harry the pandemic. The The price surge is share prices during Steele. That gave Stingray more than result: As measured spilling over into home the pandemic. As of 100 radio stations, making it the by futures contracts construction costs the end of March, second-largest owner in Canada. for lumber, wood has across North America, all have matched or As a result, Stingray’s revenues slightly outpaced the and that’s likely to outperformed Shopify have more than quadrupled since e-commerce giant’s continue. In March, the shares on a one-year 2015. But the company’s stock got torrid share-price gain United States’ National basis. /Jason Kirby ahead of itself, climbing strongly

54 MAY 2021 / REPORT ON BUSINESS WEALTH

from $6.25 at issue to $11 in 2018, then skidding to $3.50 as COVID-19 STINGRAY GROUP INC. (CDN$) took hold last year. Since then, it has more than doubled, yet is still trading at low enough multiples to 8 offer growth at a reasonable price. Boyko also points to promising structural shifts in Stingray’s business since 2015. That year, about two-thirds of its revenue 6 came from traditional per- subscriber monthly fees paid by Bell, Rogers and other cable and satellite TV providers. Those firms offered Stingray channels, most 4 often used as background noise as people puttered at home. JUNE 2015 MARCH 2021 But Stingray is now a broader media tech company. Two-thirds via Smart TV—Apple and Amazon its growth to come from outside of the revenue comes from are two big clients. And Stingray Canada. Karaoke, however, remains streaming services, mobile apps has more than 400 million users in a foundation of the firm. “Every and subscription video-on-demand over 150 countries. employee has to sing a song when (the karaoke library alone has Looking ahead, Boyko says, they join the company,” he says. His more than 30,000 songs), as well as “Stingray has to be doing $1 billion chosen performance tends to be a advertising (online and broadcast). in annual revenue within the next bilingual version of O Canada, not Much of the online revenue comes five years,” and he wants 90% of Waka Waka. /John Daly

Congratulations to these recent appointees

Robert (Bobby) Kwon Richard Kellam Michelle Banik Heather Baker PhillipCrawley,Publisher to President to President to the Board of to Canadian &CEO of TheGlobe and and CEO and CEO Directors Managing Partner Canadian Data Empire Company of Quality and Risk Mail, extendsbestwishesto Commercial Communications Management the followingindividuals who Corporation Management Corp. KPMG were recently featured in the Report on Business Section of TheGlobe andMail newspaper. Congratulations on your new appointments.

Tammy Brown Robert Davis to Deputy Chair to Chair and To make arrangements for an Appointment KPMG Chief Inclusion and Notice, please call 1-800-387-9012 Diversity Officer KPMG or email [email protected] View all appointment notices online at www.globeandmail.com/appointments MAY2021 If something

Turning Point doesn’t work, you can’t just say, ‘Okay, I’m done’

the fax machine and process all their health data requests online. We’d started to understand that’s where we could make more money and have better margins. We had to make massive changes to our team and ended up going from 32 full-time people to half that. We basically put all our resources into business development. Every startup that goes through a pivot, there are a million ways for it to fail, and our board meeting at the top of 2020 was really tense. We had a couple of acquisition offers, and we were really consider- ing them. But our numbers jumped up quite a bit that first week of working remotely, because a lot of Canadians started using virtual care services to see their doctors. So we saw ridiculous numbers on our direct-to-consumer app, which is ironic, because we were moving away from it. On the health provider Picture of health side, we were closing business so fast because a lot of places—hospitals, for example—no longer had Huda Idrees led Dot Health through a pivot staff in their health records department, and they just before the pandemic spurred a wave were like, “What do we use instead?” And believe of new business for the Toronto-based startup it or not, that’s one of our competitors—health records departments. I think it was really helpful for us to understand what forces entrenched busi- I started skydiving in university, and I remember nesses to change their ways a little bit—and it’s lit- one dive—this was before I got my solo licence— erally a world-stopping pandemic. that went really wrong. I dropped faster than my We’ve brought in more revenue than we were pre- instructor, and I lost him. And I wasn’t positioned viously projecting since the pandemic started, and correctly, so I couldn’t pull my chute. I didn’t know we’ve had a streak of profitable quarters, knock on which way was up. Eventually I did get the chute wood. And we’ve had our first rollout in the United deployed, at something like 3,000 feet. It was a States and Mexico, where Dot is being used to prove super-close call, and I came out of it not really want- you’ve been vaccinated. We had immunizations on ing to skydive again. the platform before—people could always see their In business, if something doesn’t work, you don’t flu shots and other vaccinations. But the COVID-19 2016 have that luxury. You can’t just say, “Okay, I’m done.” Year Idrees vaccine is a whole other beast. It’s a brand new line Yo u can’t send your employees home, say bye-bye founded Dot, of business we’d never even considered before. to your investors and just call it a wrap. You have to eight years But we’ve kept our team small, and when we have after moving to improvise and pivot—and that has been big for us, Toronto from hired, it’s all been remote. In some ways, it’s been because a lot of things haven’t turned out the way Saudi Arabia to easier for those new employees—if you don’t know we expected. study industrial what office life was like before, you don’t know what Just before the pandemic, we went through a big engineering at you’re missing. Our team used to play board games the University pivot. When Dot started, it was purely a direct-to- and video games together—it’s a big gaming office. of Toronto SCOTT consumer business, helping individual Canadians Replicating that culture remotely has been tough. request and access their own health data. But in 86 The lease on our office was up in December, and KYLE 2019, we moved from direct-to-consumer to selling Number of I kept wondering if we should renew it. But ulti- times Idrees to health care providers, allowing hospitals, phar- has jumped out mately, we decided it didn’t make sense to just pour macies, long-term care centres and clinics to ditch of an airplane money down the drain. /Interview by Dawn Calleja ILLUSTRATION

56 MAY 2021 / REPORT ON BUSINESS Ho pe, you’ve made us proud

We couldn’tbemore proud of our CMO, Hope Bagozzi, recognized as a2021recipient of the Best Executive Award in Sales andMarketing. Under her leadership,Tim Hortons committedtoaback-to-basics plan focused on our core strengths –craveable quality food and beverages, best-in-classguest experiences, and the collective caring for Canadian communities.

Hope’s philosophyofmarketing with purpose equipped her to face the challenges of the pandemic with conviction and without fear.Tim Hortons wasone of thefirst Canadian brands to respond to thechanging landscape by incorporating social distancing practicesand guidelines, and doubling down on communityoutreach. We ledthe wayinthanking countless front-line workerswith coffee and donut donations and our limited-edition Hero Cups,while raising $22 million through charitable community initiatives likeCamp Day, Smile Cookie, and Nova Scotia Strong Donuts. This past year, Hope embodied what it means to do the rightthing –for her colleagues, our owners andteam members, thebrand, our communities, and our guests.

From your family at TimHortons, congratulations Hope, on this well-deserved recognition. Amore invested world

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Commissions, trailing commissions, management fees and expenses all may be associated with investment funds. Please read the prospectus beforeinvesting. Investment funds arenot guaranteed, their values change frequently and past performance may not be repeated.