Ian Clarke, CFO of Maple Leaf Sports and Entertainment, on Building the Foundation for Winning Teams
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Leaders, insights and challenges to Canadian business PwC Up front Up Up front Up Up frontupfront.pwc.com Changing markets: Changing markets: Changing markets: Changing markets: Opportunities for Canadian companies at home and abroad Opportunities for Canadian companies at home and abroad COVER STORY p22 Ian Clarke, CFO of Maple Leaf Sports and Entertainment, on building the foundation for winning teams published by PwC Canada Winter 2014 Winter Winter 2014 Winter Changing markets: opportunities for Canadian companies at home and abroad/ Issue 4 / Winter 2014 / Rajesh Sharma, Export Development Canada p6 / Edward Kennedy, The North West Company p14 / Jervis Rodrigues, British Columbia Lottery Corp. p26 / Brian Conlin, Golder Associates p32 / Marc Parent, CAE p38 / Kelli Saunders, Morai Logistics p46 / Joyce Usher-Mesiano, National Brokers Insurance Services p48 DM140797_PgOFC_PWC_WINTER_2014.indd 1 14-01-15 11:56 AM Leader’s message | Bill McFarland Up front Winter 2014 Changing markets There’s a great anecdote about Bill Clinton’s advice to Barack Obama when the latter took office as President in 2008. He said: “The daily pressures on your time will seem insurmountable. The most important thing you need to do is to have big chunks of time during the day when all you’re doing is thinking about the future.” Organizations have three- and five-year visions and strategic plans. That’s a given. But what Clinton was really talking about is carving out the time to think about the fundamental changes that are taking place; the changes that will shape your industry, the marketplace and the players in it over the next 20 years. RETAIL REINVENTED Not too long ago, it was fashionable for CEOs to say “change is RETAIL REINVENTED constant” when asked about the business climate they operated Innovator of the Year at the PwC Vision to Reality Awards in. Today, it’s just a given, but the pace of change has accelerated rapidly in the last few years. Frank & Oak wins Innovator of the Year This edition of Up front showcases examples of how some Canadian CEOs are adapting to the pace of change, and Bill McFarland at the PwC Vision to Reality Awards committing to align and develop their people to prepare for CEO and Senior Partner, those challenges. PwC Canada CFOs like Maple Leaf Sports and Entertainment’s Ian Clarke and British Columbia Lottery Corporation’s Jervis Rodrigues champion the use of technology to help transform their organizations. Other executives like Edward Kennedy, CEO of The North West Company, and Brian Conlin, Global President and CEO of engineering company Golder Associates, are creating opportunities for Canadian companies outside this country. The same objective drives Rajesh Sharma, Senior Vice-President of Business Development at EDC. I hope you find these conversations interesting and informative. I also wish each of you a happy new year and all the best for 2014. Please visit us online at upfront.pwc.com to receive ongoing insights from Canadian business leaders. Frank & Oak is a leading online menswear brand and retailer that designs, manufactures and sells a monthly collection of premium clothing and accessories. Since its launch in February 2012, Frank & Oak has seen explosive year-over-year growth. The Montreal-based startup has attracted more than one million members, quickly becoming one of North America’s fastest-growing retail brands. Each year, the PwC Vision to Reality Awards celebrate the outstanding achievements of Canada’s most successful and fastest growing technology companies. For more visit: www.pwc.com/ca/v2r Up front Winter 2014 1 DM140797_PgInside_PWC_Winter_2014.indd 1 1/15/2014 12:59 PM DM140797_PgInside_PWC_Winter_2014.indd 1 1/17/2014 4:06 PM Up front Changing markets: opportunities for Low interest rates, sluggish and uncertain these market challenges head on, finding Canadian companies at home and abroad economic conditions, fluctuating innovative ways to reach customers here in commodity prices, racing technological Canada and around the world. A common Publisher Gino Scapillati innovation and increased global thread that runs through these pages is the Gino Scapillati Vice Chair, PwC Canada competition have reshaped the business indispensable importance of an inclusive Vice Chair, PwC Canada landscape. The executives we talked culture that empowers talented people. We to for this issue of Up front are tackling couldn’t agree more. Editors Robert Mackay Senior Manager, National Marketing and Communications, Up front Winter 2014 In this issue PwC Canada Challenges Insights Nicholas Greenfield Director, Communications, PwC Canada Case studies from Canada’s Analysis and insight from Blue sky business worlds respected professionals Contributors Chris Atchison, Salvatore Bianco, Mary Teresa Bitti, Changing markets: latest research and fresh thinking about where and Growing global The conditions for Karen Burshtein, Dave Chan, David Detomasi, Jennifer 4 how Canadian companies can seize opportunities to grow 10 12 D. Foster, Tim Fraser, Lauren Friese, Chuck Green, Canadian chemical supplier economic recovery Mark Hacking, Peter Holst, Mike Harris, Betty Ann Jarrett, Deirdre Kelly, Christopher Korchin, Mario Ingenia Polymers establishes David Detomasi, Assistant Longpré, Douglas Mason, Terri McKinnon, Neal itself as a global force in order Professor of International McLennan, Matthew O’Grady, Stephen C. Peacher, Aayaz Pira, Nick Rockel, Dr. Kim Rossmo, John to mitigate risk and grow Business, Queen’s University Simcoe, Sandeep Tatla, John Woods The leaders School of Business Stocking the PwC Canadian executives talk about the changes and challenges in their own industries 18 retirement pool and markets, the opportunities they see and the priorities they’ve set. 20 Tapping the millennial Bill McFarland AltaGas turns its aging- talent pool CEO and Senior Partner, PwC Canada workforce quandary into Lauren Friese, founder of Faye Mattachione an asset with a talent bank TalentEgg.ca Director, National Marketing and Communications, Rajesh Sharma Brian Conlin of potential part-time and PwC Canada temporary workers The pension legacy Senior Vice-President of Global President and CEO, 30 Kelly Nicoll 6 32 challenge Business Development, Golder Associates Operating ethically Design Manager, PwC Canada 36 Stephen C. Peacher, Export Development Canada Canadian mining company Executive Vice-President and Globe Edge First Quantum Minerals Chief Investment Officer, overcomes significant risks in Teena Poirier Sun Life Financial Director, Client Engagement and Globe Edge the Democratic Republic of Geographic profiling, Charlene Rooke Edward Kennedy Marc Parent the Congo 44 in criminal investigations Group Editor, Globe Edge CEO, The North West President and CEO, Bringing down the cost of and in business 14 Company 38 CAE 42 Lauren Heintzman being green Dr. Kim Rossmo, University Art Director, Globe Edge A Toronto architecture firm Endowed Chair in Liz Massicotte finds success with sustainable Criminology, Texas State Program Manager, Globe Edge housing, for the energy University conscious and for those who Cara Czech Ian Clarke Kelli Saunders are most in need Production Co-ordinator, The Globe and Mail CFO, Maple Leaf Sports President, Morai Logistics End game Up front magazine is designed and produced by The Globe and Mail 22 and Entertainment 46 Spirited effort Custom Content Group on behalf of PricewaterhouseCoopers LLP. 50 All correspondence: Long Table Distillery, the PwC Tower attention: Robert Mackay 18 York Street, Suite 2600 first new distillery in urban Toronto, Ont. M5J 0B2 Vancouver in 40 years, cuts [email protected] upfront.pwc.com Printing and Pre-press by DM Digital+1 through the red tape and 52 © 2014 PricewaterhouseCoopers LLP, an Ontario limited liability Jervis Rodrigues Joyce Usher-Mesiano partnership. All rights reserved. PwC refers to the Canadian member trailblazes a promising firm, and may sometimes refer to the PwC network. Each member firm CFO and Vice-President, President, National Brokers is a separate legal entity. Please see www.pwc.com/structure for new path further details. 26 Finance and Corporate 48 Insurance Services PwC Canada helps organizations and individuals create the value they’re looking for. More than 5,700 partners and staff in offices across Services, British Columbia She shoots, she scores the country are committed to delivering quality in assurance, tax, consulting and deals services. PwC Canada is a member of the PwC Lottery Corporation Winning strategies from three- network of firms with close to 169,000 people in 158 countries. Find time Olympic gold hockey out more by visiting us at www.pwc.com/ca. Up front is a registered trade-mark of PricewaterhouseCoopers LLP, player Jennifer Botterill Canada. 2 Up front Winter 2014 Up front Winter 2014 3 DM140797_PgInside_PWC_Winter_2014.indd 2 1/17/2014 4:08 PM DM140797_PgInside_PWC_Winter_2014.indd 3 1/15/2014 1:02 PM 3% “To succeed, jump as quickly at 8% opportunities as you do at conclusions.” Cinderella countries 11% We asked 478 business leaders to 5% Benjamin Franklin Benjamin Franklin pick the one Asia Pacific economy 19% Blue sky % 19%that might hold the biggest surprises INDONESIA19% 7% 7 INDONESIAinINDONESIA the next three to five years. Here’s INDONESIA 19% INDONESIA % who they’re watching: 19 11% 7%19% 11% 7% 11% 7%INDONESIA19% MYANMAR11% THE7% PHILIPPINES 11% 7% MYANMAR THE PHILIPPINESINDONESIA MYANMAR THE PHILIPPINES MYANMAR THE PHILIPPINES 8%19%19% 5%11%11%7%8%7% 5% 4% 8% 5%4% 4% INDONESIA8%INDONESIA 5%MYANMAR THE PHILIPPINESCHINA8% INDIA5% 4% CHINA INDIAUNITED4% STATES UNITED STATES “Five years ago, globalization would have been CHINAINDONESIA INDIAINDIA MYANMAR THECHINA PHILIPPINES INDIA UNITED STATES UNITED STATES 11% 7% 7% 3% 7% 3%3% 3% the most powerful lever for growth and every 7%11%11% 3%7%7%8%8% 5%5%7%19% 3% 3% 4%4%VIETNAM MALAYSIA,3% JAPAN, RUSSIA COLOMBIA Top six sectors MYANMAR THE CHINAPHILIPPINES INDIA VIETNAM MALAYSIA, JAPAN, RUSSIA UNITED STATES COLOMBIA VIETNAMMYANMAR MALAYSIA,THE PHILIPPINES JAPAN,CHINA RUSSIA INDIAVIETNAMINDONESIAMALAYSIA,COLOMBIA JAPAN, RUSSIA UNITED STATES COLOMBIA business would have been talking about China.