SPRING 2017 THE FUTURE ISSUE LIVE. WORK. LEARN. ualbertabusiness
BRIGHT SPOT AHEAD The upside of Canada’s electricity crisis
PAGE 20 PAGE 13 PAGE 6 WHEELS OF FORTUNE NEW WORLD ORDER ENGINEERING THRILLS Will ride-shares and AI spell an Trade and turmoil in One man’s quest to build the end to the personal car? the age of Trump ultimate amusement park ride Make a world of difference. Donate and help our students experience life-changing opportunities during their studies.
Donations to the Student Experience fund at the Alberta School of Business have an enormous impact. Your support provides students with opportunities that change the way they see the world, and inspires them to pursue their passions.
To learn more visit ualberta.ca/business/give or call 1-877-992-7587. SPRING 2017 3 FRONT
CONTENTS
SPRING 2017 ISSUE A magazine for alumni and friends of the Alberta School of Business
FRONT FEATURES dean Joseph Doucet 04 Message from the Dean 16 Leading Light supervising editor 05 From the Web by Michael Hingston Heather Newton Canada’s electricity industry is at a editor Omar Mouallem crossroads and the future is anyone’s guess art director Make a world of difference. LIVE Sarah Jackson associate editor 20 MaaS Effect Angela Johnston 06 Engineering an by Tim Querengesser Donate and help our students experience life-changing assistant editor Adrenaline Rush The private vehicle is looking costly, Mike Kendrick How Guy Nelson got in the business wasteful, dirty and plain old passé as more class notes editor Jacqueline Kokic opportunities during their studies. of thrill rides people take advantage of the “mobility-as- a-service” ecosystem. Is it time to welcome contributors our new transportation overlords? Caroline Barlott 07 For Love and Money Tema Frank Why the key to a happy Michael Hingston Taylor Lambert relationship is a bottom line Neil Mota LEARN Jyllian Park Samantha Power 09 Dirty Work 26 Under Review Tim Querengesser Plant a garden and watch Why the School’s research-intensive Kelly Sweda team spirit bloom programs earn world praise Vikki Wiercinski ualberta business online David Holmes 15 RoboCap 27 On Campus production coordinator Why young investors are going Engineers get business savvy; a new Julian Faid
to AI for advice alumni branch in China; a government grant printing positions Executive Education nicely; and Alpine Press MBAs reunite on a closed-circuit platform. WORK 28 Social Ties UAlberta Business magazine is 10 Booting up for Online Snapshots from the fall’s hot-ticket events, published twice a year and is mailed to more than 20,000 alumni Success plus a calendar of more to come and friends. The views and opinions Setting yourself apart in the expressed in the magazine do no fast-growing—and overcrowded 29 Class Notes necessarily represent the views —e-commerce space of the University of Alberta or the Alberta School of Business. 34 The Corner Office View All material copyright © 2017. 12 The Frank Files GE Canada CEO Elyse Allan on going green contact us by Tema Frank email [email protected] How to avoid racing to the bottom facebook in an era of price matching University of Alberta School of Business 13 Trade and Turmoil in twitter @ualbertabus
the Age of Trump to advertise As our closest Western allies turn [email protected]
inward, where is Canada’s place telephone Donations to the Student Experience fund at the Alberta School of Business have an enormous impact. in the new world order? 1.780.492.4083 1.877.362.3222 (Toll-Free) Your support provides students with opportunities that change the way they see the world, and inspires If undeliverable in Canada, return to: them to pursue their passions. Office of the Dean Alberta School of Business University of Alberta 4-40 Business Building To learn more visit ualberta.ca/business/give or call 1-877-992-7587. Edmonton, AB T6G 2R6 Publications Mail Agreement No. 40065531
on the cover Illustration by Min Gyo Chung FRONT ualberta.ca/business
MESSAGE FROM THE DEAN
LAST YEAR, THE Alberta School of Business celebrated its centennial. We have survived two world wars, numerous depres- sions and recessions, and thrived in an era of globalization and rapid digitalization. As we enter our second century, we face continued upheaval in global politics and trade—a shakiness in economies that, for adaptation, will require the wisdom of a 101-year-old, yet the curiosity of a one-year-old. For decades now, our country has relied, perhaps too much, on the United States for trade and economic diplomacy. With President Trump threatening to “rip up” the North American Free Trade Agreement if Mexico and Canada won’t reopen it, we may have to gaze across oceans to make up for lost GDP and other disruptions. Across the Atlantic, similar insularism is taking hold; 2017 may very well be the year that the European Union unravels. Over the Pacific, China and Russia emerge as tough superpowers doing a lot to promote themselves economi- cally, while “Western nations” do the opposite. Journalist Taylor Lambert cogently explains what’s at stake for Canada on PAGE 13, with help from some of our School’s experts. But international trade is only part of the equation for a successful future. Alberta’s economy relies heavily on energy commodities, yet they too are in crisis: oil prices are volatile; the coal industry is under siege; carbon taxes are spooking busi- nesses and the public. And a swath of entrepreneurs, including With President Trump several of our own grads, are creating opportunities and value in threatening to “rip up” the the midst of this upheaval. It begins at home, where the crisis is transforming your electrical grid (PAGE 16), and stretches across North American Free Trade our streets, where the automobile is finally having its enlighten- Agreement if Mexico and ment era (PAGE 20). Despite much uncertainty with trade, commodities and Canada won’t reopen it, foreign policy, the next year holds promise for Canada on many we may have to gaze across fronts, including job creation, as evidenced by 2016 figures of 214,000 jobs net gained, which is the highest in four years. But oceans to make up for lost hedging our bets based solely on where we are today is myopic GDP and other disruptions. to say the least. Preparing for the future will demand agility and imagination, technological innovation and human interaction —which always have their places, but are necessary now more than ever. According to a U.S. Department of Labor report, 65 per cent of today’s children will work in jobs that don’t even exist yet. Above all else, the future demands critical thinking, something highly emphasized in all of our programs and highly valued in the workforce, even if it’s applied to creating artificial intel- ligence to do the rest of the thinking for us (see our story on “robo-investing” on PAGE 15). By some estimates, 65 to 80 per cent of jobs today require post-secondary studies, compared to about 30 per cent in the early 1970s, when I was in high school. It’s incredible to me just how much the world, our country and our educational institutions have changed in the intervening Joseph Doucet years. But human ingenuity has remained a constant, giving me Stanley A. Milner Professor and Dean, tremendous faith, hope and excitement for today’s grads. Alberta School of Business SPRING 2017 5 FRONT
FROM THE WEB
[ENTREPRENEURSHIP] 5 Things Failure Taught Me
It’s a singular experience [CONSUMER PSYCHOLOGY] to sit there, in your Too Many Mannequins business, and watch and Other Retail Mistakes it fail around you. You Can’t Afford To Make I realized that hard Everyone’s had that day in the mall, where nothing you try on looks work and pay don’t right—if it even fits at all. Marketing professor Jennifer Argo’s research necessarily coordinate.” suggests it might not be all on Clark Murray, BCom ‘02, you. She’s uncovered plenty of serial entrepreneur psychological pitfalls in shops that keep the customers from saying tinyurl.com/ClarkMurray yes to that dress. tinyurl.com/TooManyMannequins
[PHILANTHROPY] Corporate Givings vs. Misgivings
[BUSINESS TRENDS] Locking Down the Escape Room Craze Essentially, people are
Strategic management expert Emily Block found the heart-warming impact of paying you money to be corporate generosity may extend well beyond the recipients. It boosts employee trapped in a room and morale in the process too. She offers her dos and don’ts of corporate giving. tinyurl.com/CorporateMisgivings be frustrated—so how do you make that fun and get them to come [PROFILE] In Memoriam: Jim Prentice back and play again?” Marko Chong, BCom ‘17, The former Alberta premier and School owner of Time Escape of Business alumnus, BCom ‘77, saw public life as a “noble calling.” Following tinyurl.com/MarkoChong the tragic plane crash that ended his life in October, the UAlberta community reflects on his legacy. Send us your letters and comments. tinyurl.com/PrenticeInMemoriam Email us at: [email protected]. LIVE 6 ualberta.ca/business
ENTERTAIN
ENGINEERING AN ADRENALINE RUSH
How Guy Nelson got in the business of thrill rides writer Angela Johnston
WHEN YOU’RE TEARING down a roller ica and China, has been responsible for components come together with show el- coaster at 60 kilometres an hour, there’s raising millions of heart rates. After ements for the ultimate adrenaline rush. not a second to appreciate the skill and his steel company, Empire Industries “You get transported into a show with engineering required to pull off the thrill. (formerly Empire Ironworks), acquired characters you love,” he explains, “and But Guy Nelson, BCom ’77, knows exactly Disney and Universal’s ride system then all sorts of exciting and high-quality what it takes. The head of Dynamic At- manufacturer in 2007, Nelson, who once memories are generated that will stay tractions turned a steel fabrication busi- specialized in industrial steel fabrica- with you forever.” ness into a producer of some of the world’s tion for projects such as the Art Gallery Last November, its newest attraction most popular immersive, multimedia, of Alberta, turned his attention to the concept, the Dynamic Motion Theatre, indoor attractions, including the Harry world’s growing theme park business. won the Best New Product Concept Potter and the Forbidden Journey Ride at Now CEO of the Vancouver-based at the International Association of three Universal Studios theme parks. company, he oversees design, manufac- Amusement Parks and Attractions Over the last decade, his company, turing and commissioning, making sure awards (the Oscars of theme park with 450 employees across North Amer- the electrical, mechanical and structural rides). Here’s why:
Screens rotate Huge curved video to expose live screens plunge action scenes, guests into the like simulated scene from all explosions and angles. moving vehicles.
Guests experience the action from seats attached to a platform that pivots and swivels for ultimate immersive effects. Cylindrical theatres rotate 360 degrees into several scenes, meaning the multipurpose ride
system can tell various stories. ATTRACTIONS DYNAMIC BY SUPPLIED IMAGE SPRING 2017 7 LIVE
RELATIONSHIPS
“Financial challenges for couples are avoidable,” says the author. “They are FOR LOVE the leading cause for separation and divorce, and it’s a shame because if the behavior is understood, addressed and and MONEY coordinated together towards common goals, then couples can achieve a lot together as a team.” Published last year, Why the key to a happy relationship The Modern Couple’s Money Guide uses basic principles of budgeting and open is a healthy bottom line communication to help couples achieve financial parity, get out of debt and plan writer illustrator for the future. Jyllian Park Mike Kendrick Scorgie, BCom ’05, devoted her young life to helping people better understand and manage their money and invest- ments. At 17 years old, the Calgarian appeared on The Oprah Winfrey Show in 2001 for a segment about her growing investment portfolio and financial smarts. After getting the endorsement of one of the world’s richest and most powerful people, Scorgie published her first of four books, Rich by 30: A Young Adult’s Guide to Financial Success, which landed on Canada’s best-seller list. Since founding MeVest in 2007, Scorgie and her team of financial coaches noticed how many of their clients seeking finan- cial planning assistance were married or in long-term relationships. Combining finances and household duties can be hard to navigate, and couples can experience problems when disclosing debt and spending, or when holding their romantic partners account- able for money management. “No one’s financial situations are really that unique. It’s all behavior. If you are willing to make those changes behaviorally, you will be able to control your finances,” she says. “It’s so unfortunate when one partner wants to make the change and the other doesn’t. That is the couple that is probably going to get divorced.” For chemical engineer Trevor Cristall, CME ’11, and visual merchandiser Kath- erine Cristall, financial anxiety started Nothing takes the romance out of a relationship quite like after they got engaged and lived together. financial stress, and money troubles often steer couples “One day in bed, Trevor asked me if I had any debt, and I just started crying. I towards breakups. For Lesley-Anne Scorgie, founder of freaked out. All I could think about was MeVest, a financial planning company, the hurdles couples ‘Oh no. He just put a ring on my finger and now I have to tell him the truth.’” She face when dealing with money could fill a whole book— revealed her debt amount—a lie—then
IMAGE SUPPLIED BY DYNAMIC ATTRACTIONS DYNAMIC BY SUPPLIED IMAGE specifically, The Modern Couple’s Money Guide. cried again before telling him the real LIVE 8
Five Tips for Economic Harmony
Make a Budget Don’t Be a Hero “Without a jointly agreed upon Financial plans often require budget, it is almost impossible outside help, and the best time for for a couple to achieve anything an accountant, financial advisor, or financially,” says Leslie-Anne another form of “money coach” is Scorgie. Balance sheets are the right after you form your permanent most effective tool for financial household. “Sit down, get a referee accountability and, like anything in a in there, get the budget on track, relationship, without accountability, get a plan on track, get some advice, you can’t achieve much. and learn to do this together.”
Set Goals Make Your Own “If it’s purchasing a home, having children or travelling, you have to Talk It Out Grass Greener determine what it is that you want Don’t avoid money talks—plan for Don’t spend yourself into debt to accomplish. If you’re not moving them. “They don’t have to be long trying to one-up your friends and in the same direction, you should talks. I’m talking five minutes a neighbours. “People can waste a probably call it quits now,” says week,” says Scorgie. “It’s important lot of money trying to look rich. It Scorgie. “I’m not a proponent of to know where you stand before just begs the question: who are we divorce. I just think it’s ridiculous you can set any sort of goals for following, why are we doing it, and when couples go down the isle with- the future.” how is it impacting our finances?” out having a larger goal discussion.”
amount. “I liked everything to be sepa- the online budgeting program, You Need People can waste a lot rate, so to talk about finances was really A Budget (YNAB), Trevor and Kather- of money trying to uncomfortable. It made my skin crawl.” ine analyzed their spending and started To avoid unnecessary friction, says trimming. Sticking to a set budget, the look rich. It just begs Scorgie, couples like the Cristalls should young couple paid for their wedding last the question: have honest conversations about the summer, got Katherine out of debt, and state of their bank accounts and credit are now saving for a house. who are we following, bills, and not cower from divulging their Setting financial goals brought the cou- why are we doing it, daily expenses. “They don’t know how to ple closer. “Now that we budget together,” be better with their money, so they are says Trevor, “it’s like we are agreeing and how is it impacting embarrassed and they don’t feel that they about priorities, and that determines what our finances?” are equipped with the skills to improve it. we are going to do with our lives. It’s all So you combo all of that, and couples just interconnected.” It has even evolved into sweep it under the rug,” says the financial somewhat of a romantic ritual. “Every two coach. But the mess is bound to come to weeks, we sit down with a bottle of wine light eventually. and look over our budget.” Trevor got serious about saving money after graduating, so he felt confident JYLLIAN PARK is the Edmonton editor helping his new fiancée—who grew up be- of Western Living and a fashion stylist. lieving “budget” was a bad word—build a She was nominated for two Alberta plan to crawl out of consumer debt. Using Magazines Awards. SPRING 2017 9 LIVE
MORALE staff using another part of their brain, notes Jennifer Cockrall-King, BA ’93, author of Food and the City: Urban Agriculture and the New Food Revolu- tion. Tending to her garden of 16 fruits and veggies around her Okanagan Val- ley house is an outlet for work and life DIRTY WORK stresses. “Gardening is very analog and old school, and provides balance in life. As soon as you relax your subconscious, it al- Plant a garden and watch team spirit bloom lows you to have creative a-ha moments.” An office garden can boost morale, but writer illustrator when the boss is leasing space at a pre- Samantha Power Vikki Wiercinski mium, convincing them to give up square footage for petunias isn’t easy. Remind them that it doesn’t require digging up desks to truck in swaths of black soil. Sim- plicity is key to making collaboration and connectivity bloom, says Cathryn Sprague (BCom ’09, MSc ’14), cofounder of Reclaim Urban Farm, which grows produce for dozens of restaurants and grocers and consults businesses trying to develop gardens in unconventional spaces. “Herb gardens are nice because they’re easy to grow,” she says. They’re a cinch to incorporate into office life and can draw in those who wouldn’t ordinarily participate. “You just want it to be enjoyable.” But few small or medium-sized compa- nies have access to an outdoor space such as Manasc Isaac’s flat rooftop (converted with a few guardrails, wooden decking and efficient planter beds overlooking Edmonton’s river valley). From countertop sprouts and windowsill herbs, to plant walls and raised beds, there are many ways to reimagine your confines and work with your surroundings. In the urban gar- dens Sprague has consulted on, accessing water can be the biggest challenge. If you don’t have a hose outlet, setting up a water catchment system such as a rain barrel has worked for some of her urban gardens. But more than mechanics, the con- sultant says group buy-in is imperative. “Like any community garden, it’s impor- UNLESS YOU WORK in Big Ag, the earthy them excited to do what they love,” says tant to have a group committed to going smell of potting soil is foreign to the the firm’s senior principal. What began out and doing it,” says Sprague. If it’s sterile surfaces of particle board desks. as a gathering point for a Friday beer just one or two keeners, it can fail without But, more offices are learning a garden’s grew into a place where employees can enough people to take up the work. organic growth can spark collaboration take a mental break and have a means And, much like in your regular work, and creativity. Just ask Vivian Manasc, of doing something physical. When the don’t give up at the first sign of failure. MBA ’82, of Manasc Isaac. The architect sun permits, staff now step out for team “People get too ambitious, too intensive,” with offices in Canada and Romania is meetings or to work alone amongst the says Cockrall-King. “Start with growing known for her environmental design, but tomatoes, chives, peas and Swiss chard. things that you really love to eat and go the Edmonton headquarters took “green” Volunteer beekeepers maintain its apiary from there.” to a new level seven years ago when it over the weekends, and harvests go to the added a rooftop garden. in-house chef to cook staff meals. SAMANTHA POWER, BA ’10, is a feature “There’s always a few people on your Planting office gardens isn’t just a writer on provincial politics for The News staff who love gardening and it gets team-building tactic, but a way to get and freelance contributor to The Tyee. WORK 10 ualberta.ca/business
BUSINESS CASE
BOOTING UP FOR ONLINE SUCCESS
How to set yourself apart in the fast-growing—and overcrowded—e-commerce space writer Caroline Barlott
JUSTINE BARBER SITS in the showroom In 2012, while vacationing on the Poppy Barley founders of Poppy Barley, the bespoke footwear Indonesian island of Bali, Justine Barber, Justine Barber, BCom ’06, company she founded with her sister BCom ’06, was shopping for boots, but (right) and Kendall Barber Kendall, framed by shoes and boots lining struggled to find one that fit her wider several shelves along a crisp white wall. feet. “No problem, we’ll order you a cus- One pair in particular stands out—white tom pair,” said the shopkeeper, who then ankle boots with black accents propped proceeded to measure her calves, ankles up on an antique suitcase, a clue to the and soles for two perfectly fitted black
company’s beginnings. riding boots that arrived to her Edmonton SCHECHER) JILLIAN (BY BARLEY POPPY BY SUPPLIED PHOTO SCHECHER) JILLIAN (BY BARLEY POPPY BY SUPPLIED PHOTO PHOTO SUPPLIED BY POPPY BARLEY (BY JILLIAN SCHECHER)
PHOTO SUPPLIED BY POPPY BARLEY (BY JILLIAN SCHECHER) boots and slip-on oxfords, a third factory boots andslip-on oxfords,athirdfactory boots, anotherworks ontheirankle today. theirflats and heeled Onecrafts four Mexicanshoemakersthat theyuse factories untiltheylandedonthe firstof ney, sheandKendall touredLeonshoe to Leon,Mexico. manufacturing origins,andall roads led also studiedcompetitors’shoesfortheir or havingtwodifferentlysizedfeet.They that fit,whetherbecauseofhigharches tofindboots admitted thattheystruggled 100 women,thevastmajorityofwhom potential marketsize,andsurveyed Justine. Theystudiedcompetitorsand hadn’t beenfilledintheonlinespace. sisters foundaproverbialshoethat Canadian e-commercesales—theBarber which accountsforalmostone-thirdof tocompetewithAmazon— than trying a realunmetneedinthemarket.”Rather made suretheyhadaproductwith “They commerce companies,”explainsMurray. that’s attheheartofsuccessfulsmallere- online marketplaces. thatmanywillfailinthecrowded warns ray callsthegrowthrateimpressivebut tor fortheSchoolofRetailingKyle Mur- cent now. MarketingprofessorandDirec- market shareby2019,upfrom5.7per commerce tohave8.8percentofretail provider eMarketer, whichpredictse- few yearsatleast,accordingtoresearch tinue inthedoubledigitsfornext nearly $30billion.Itsgrowthwillcon- grew by17percentinCanada.That’s on ashelfthatshedesigned. go on-line,”saysJustine,adjustingaboot sense forapparelcompaniesrightnowto much lessthangoingintoretail,itmakes “Since investmentintoe-commerceisso the occasionallocalshopperpopsin. room onEdmonton’sWhyteAve., where in its1,500-square-foot-studioandshow month,allofthemorganized orders every designing, theshopping—hundredsof tual shoeshappensonline:themeasuring, experts andfashionistasalike. that hasattractedattentionfrombusiness shoe store,butane-commercecompany the scalesheenvisionedwasnotahumble land toAustralia. Andtheplacetodoitat company, customersfromEng- serving her fashion—itsparkedtheideafor ordering custombootsinspiredmorethan home afewweekslater. Theexperienceof SPRING 2017 Just four months after herBalijour- Just fourmonthsafter It startedwithshrewdresearch,says “Poppy Barleydidsomethingearlyon In 2015,e-commercesalesinretail butmakingtheac Nearly everything - - transforming Poppytransforming Barley intoaBCorp, integral tothebrand thattheBarbersare pay. “Ethicalfashion”hasbecome so owners,butdetailsaboutstaff factory onthe conditions, notjustinformation published detailsoftheMexican factory how theirbootsweremade,the website customers keptaskingthemwhere and the worldtohavesorefeet.” she’s someonewho’s“toobusytakingon in fashion,beautifuldesignandtravel; to thesistersthemselves.She’sinterested The answerwassomeoneprettysimilar live? Whatdoesshethinkisimportant? graphic. themselves abouttheirtargetdemo their unifiedbrand,theBarbersquizzed emailyousend.Toabout every create product packaging,yourwebsiteandjust just alogo—itincludessocialmedia, tor ofsuccessintheonlinespace. thedecidingfac brand awareness—often impressed withPoppy graspof Barley’s risks,” saysDeveaux,who’sespecially donereallywellatmitigating “They’ve tive DirectoroftheSchoolRetailing. product line,saysEmilyDeveaux,Execu- customers, whileslowlyexpandingtheir test theirdesignsonasteadystreamof with justthreeladies’bootdesigns. women, buttheyweresuretostartsmall, now sell25differentstyles,formenand makes theirleatheraccessories.They theirhandbags,andthefourth constructs She’s also socially conscious, so when She’s alsosociallyconscious,so when Visual identity, shesays,goesbeyond The gradualprogressionletthem How old is she? Where does she How oldisshe?Wheredoesshe 11 -
- and Cottage Life. contributor to Discover, Reader’s Digest CAROLINE BARLOTT,CAROLINE BA ’02, showroom onWhyteAve. Assheknows more wantedtoshopinperson, hencethe yond localstores.Still,theynoticed that that bypropellingPoppy Barleyfarbe and thee-commercespacecouldallow have apositiveimpactonglobalscale official certification. being accountableandtransparent,for environmental andsocialstandards,while ers. Poppy Barleywouldneedtomeet to societyinadditionitsstakehold- dedication tion provingtheircompany’s appliedforcertifica- meaning they’ve on abeautifulpairofnewshoes. first-hand, fewcanresistthe urge totry Justine says she wants the company to Justine saysshewantsthecompanyto and Taking OffOnline 5 Tipsfor Starting Up 2 1 5 4 3 market andgrow slowly. of products, test the Start withasmallline online presence. under-spend onyour your branding. Donot and consistent with to use,visually appealing Make your website easy brand andmarketing. will defineyour visual you can findout.Thatdata even whatthey drive if careers, regional clusters, their approximate ages, Study your customers — they can’t. Amazon. Offer something the bigplayers , suchas Avoid competing against gets slimmer. the likelihood ofsuccess unmet need.Ifitdoesn’t, your product fillsan Research to findoutif is a isa
WORK - WORK 12 ualberta.ca/business
THE FRANK FILES Race to the Top Take a Trip Inside Your Prospects’ Minds: Talk to them—find out how they actually perceive your prices and what, beyond price, could get them to rank you DOLLAR above the rest. Check Under the Cushions: DAZE Ask yourself, “What, internally, columnist is stopping me from offering Tema Frank better value that would justify higher prices? Where are How to avoid racing to the bottom my inefficiencies needlessly in an era of price matching driving up my costs?” Chart the Journey: Learn where and why customers get frustrated trying to deal with you, GLOBALIZATION AND THE Internet have product needn’t be the best to justify and how to change their made comparison shopping and price charging above-average prices—it just experiences to earn that five- matching easier than ever. The pres- needs to top the competition on customer star review. sures to keep lowering prices are so experience. And that’s where most busi- Get the Crew on Board: intense that even Walmart—once the nesses stumble. Excite your staff with a dominant brand for all things cheap—is Customer experience is the ulti- powerful purpose and an losing its grip to dollar stores. But there mate—yet hardest—way to improve open culture. comes a point where you just can’t go value while keeping discount vultures any lower and survive. The dilemma from eating your market share. A 2012 Keep it up: isn’t limited to retail either. Customers Forrester Research study found 80 per Things change quickly shop for hotel and travel deals in less cent of companies believed they delivered in almost every modern time than it takes to get through airport “superior” customer service when only marketplace, so monitor security, and even business buyers are eight per cent of their customers agreed. your metrics and key shopping online for deals. If your company manages to get into that performance indicators. Otherwise, you’ll find yourself So how can you profit and still meet eight per cent, you’ll rarely have to fight racing to the bottom. customers’ frugal expectations? By de- over price because people will pay extra livering great value that’s not easily cop- for consistently great customer experi- ied—and to do that you must learn what ences, as proven by Apple in 2008. It customers actually value, instead of what didn’t lower the prices of its smartphones you assume they do, and deliver on it. during the Great Recession, but rather Jared Smith, BCom ’98, co-founder doubled-down on a newer and pricier using your product or service through and principal at Incite Marketing, offers second generation of iPhone. to contacting you, buying from you and a good case study. A printing company he Learning what customers truly value beyond. Figure out the type of service worked with believed its customers only takes in-depth research, not just a quick they want and how to provide it better cared about the bottom line, but research email survey. When Jennifer Bergman, than others. And since your bottom line by Incite discovered that the printer BCom ’07, launched her Edmonton wed- still matters, seek and destroy cost- could charge a significant premium if it ding planning company, business research wasting features that don’t matter much delivered faster than the competition. told her that few competitors had appeal- to customers. That way you can beef up “While our client’s customers all cared ing websites despite brides turning to the your value on the things that do. about price, they also cared about their web for services. She filled a local market Lastly, remember that every market- time,” he says. gap with a planning and designing firm place is ever-evolving, so keep measuring There are four elements that create known for detailed service with a pol- progress and talk to customers at least value: price, features, quality and cus- ished, timeless website. She now charges monthly. Expectations keep rising, and if tomer experience. at the top of the market. “Our pricing you’re not on top of them you’ll slide back You must be in a reasonable price strategy has definitely changed a lot since into survival mode. range for what you offer, but you don’t I first started the business,” says Berg- have to be the cheapest if you get the man. “I looked at the competition as the TEMA FRANK, BCOM ‘82, is the author other elements right. Added features basis for prices but they quickly increased of PeopleShock: The Path to Profits When work too (but only if customers want every few months because of demand.” Customers Rule. She writes, consults, them and you don’t paralyze buyers with Use the research to map the customer teaches and podcasts about customer
too many offerings). As to quality, your journeys—from the time they think of experience in the digital era. FRANK TEMA BY SUPPLIED PHOTO PHOTO SUPPLIED BY TEMA FRANK SPRING 2017 GLOBAL MARKETS AGE OFTRUMP TURMOIL INTHE TRADE AND Taylor Lambert writer where isCanada’s place inthenew world order? As ourclosest Western alliesturninwards,
Sarah Jackson illustrator 13 ic Partnership, aChinese-ledfree-trade on theRegional ComprehensiveEconom- says itcouldalso motivateanagreement loss forCanadaandawinChina. He soybeans, butitsdeath,hesays, isbotha Japanese marketsforourbeef, canolaand TPP wouldhaveincreasedaccess tohuge upitsinfluenceintheregion.The to firm ment BankasamajorChinese initiative Invest citing theAsianInfrastructure themselves economically,” arguesWong, China wouldlaterbeencouragedtojoin. a frameworkforeconomicpartnerships check onChina’sdominance,establishing next century. Itwasalsointendedasa designed todefineAmericantradeforthe stone oftheso-called“pivottoAsia” - ally championedbyObamaasacorner Partnership (TPP),anagreementperson- set thesystem,torules.” the U.S.ashavingmoralauthorityto nolongerseeEuropeand business. “They sociate Deanspecializingininternational is gone,”saysEdyWong, UAlberta As - States orlookatEurope,thecredibility a closingWest andanopeningEast. iscaughtbetween and India,thecountry still lacktradedealswithChina,Japan leads achargeagainstfreetrade,andwe economicpartner Canada’s mostcrucial Western-led economicworldorder. As policies heraldingapossibleendtothe potential globalimplicationsofnativist of thistrendarenowkeenlyawarethe who wereinitiallyignoranttothedepth France andtheNetherlands,observers in 2017electionsthroughoutGermany, with far-rightcandidatespollingstrong would evolveinpredictableways.But wanted tobelievetheexistingworldorder Cameron toBarackObamahimself— primeministerDavid Silver toformer election? Don’tbesilly.” Trump president.” the EuropeanUnion.” able newdevelopment: that precededeachpreviouslyunthink year thatwas2016,theconfidentdenial IT’S EASY TO EASY IT’S “China is doing a lot to promote “China isdoingalottopromote Consider theill-fatedTrans-Pacific theChineselookatUnited “When Those disbelievers—frompollsterNate “Russia manipulatingtheAmerican “No wayAmericanswouldelectDonald “Of courseBritonswon’tvotetoleave forget, after the tumultuous thetumultuous forget,after WORK - - WORK 14 ualberta.ca/business
If Trump’s regime makes good on its protectionist promises, the reality is that Canada has few options available as an economic middleweight highly dependent on export markets, particularly the one we share a border with. If the “elephant” wants to abruptly change direction, You’re not going to win we are forced to follow. Last October’s Canada-EU deal, intended to stimulate trade with tariff cuts in sectors such as leadership campaigns agriculture and auto, wouldn’t come close to offsetting the potential losses of a by touting free trade.” renegotiated NAFTA. Total Canada-US trade in 2015 was worth $760 billion— more than double the value of our next 25 biggest trading partners combined. Trudeau has indicated that revisiting NAFTA doesn’t bother him. But to Bates, it’s unlikely to turn out well for Canada. “What could we possibly gain by open- ing NAFTA?” he asks. “We should be proposal that would affect half the global mounting a great effort to convince the population, but has been stuck in negotia- Trump administration that it’s not in their tions for five years. interest to open NAFTA.” Whether the “By walking away from the TPP, I’m Donald’s stubborn mind could be persuad- afraid that we’ll have the unanticipated ed by such a campaign—even an amazing effect of letting China’s influence grow campaign, huge, the best—is doubtful. and expand,” agrees former diplomat Still, Bates believes Canada’s best Greg Bates, BCom ’69. “China says, play is at the state level, using consular ‘Thank you very much.’” personnel to remind American officials of Bates, whose 37 years with the Canada how beneficial Canadian trade is to their Trade Commissioner’s Service included economies. After all, “Canada is the top posts in China, among other nations, sees export destination for 35 states,” accord- the widespread antipathy towards free ing to the Canadian embassy in the U.S., trade as a popular force that is difficult and Canadian trade supports almost nine for politicians to ignore. million American jobs. “It’s not something that’s politically If Western leaders are as intent on favourable at the moment. You’re not going turning inwards as they claim, Wong sees to win leadership campaigns by touting the potential for a passing of the inter- free trade,” he says. “Many communities national baton to emerging powers like saw their jobs disappear. And, justified or China and India. He notes that Australia not, they blamed it on free trade.” and New Zealand have signed bilateral From a Canadian perspective, the trade deals with China, while Canadian future of the North American Free Trade politicians have often found themselves Agreement (NAFTA) is more cause for caught between our trade needs and our worry. Though the TPP held the potential concerns for human rights. for enormous trade gains by opening Canada must recognize that it is not up Japan and other markets, it would important enough to be sought as a not replace the potential losses from partner—we must do our own seeking, he weakened free trade with our top trading says. “It’s not like we’d be doing China a partner. Yet some of President Trump’s favour by doing a free trade agreement most reliable and well-received campaign with them,” says Wong. How well Canada rhetoric was railing against the flight of manages to diversify our approach to American jobs to other countries, and he global trade in the near future may well has demanded the deal between the U.S., determine our place in the world for the Canada and Mexico be renegotiated. next century. In order to appeal to his rustbelt constit- uents, Trump’s administration could create TAYLOR LAMBERT is an Alberta journalist. tax incentives that syphon auto jobs from He has two narrative journalism books Windsor, Ont. to Michigan, says Wong. “It’s out in September on UAlberta’s School of a very challenging time for Canada.” Dentistry and on the moving industry. SPRING 2017 15 WORK
INVESTMENT
ROBOCAP
Why young investors are going to AI for advice writer illustrator Mike Kendrick Sarah Jackson
WOULD YOU LET R2-D2 balance your tech-savvy (but not necessarily finan- portfolio? That’s the question you should cially savvy) under-35-year-olds. “The Having the agency ask yourself as a new crop of financial barrier to entry is so low that it allows to disagree with advising services bank on “robo-advising.” us curious, early investors to jump in Relying on Artificial Intelligence (AI), without assuming much risk,” says the AI decisions could they hope to attract a new type of investor AI expert, himself a Millennial. determine the —an inexperienced person who likes the “In principle, robo-advising is supposed ease of use and is too busy for one-on-one to reduce costs, because you don’t have success of automation advice. The success of these platforms a human being wasting time talking to and build trust in could redefine how your money is handled. you—it’s all automated,” explains Aditya Robo-advising services like Wealthsim- Kaul, Associate Professor of Finance the long run.” ple, Questrade’s Portfolio and Nest Wealth at the School of Business. However, he IQ balance portfolios with algorithms warns that the perks of putting your managed, of course, by qualified, carbon- banking on autopilot will bear hidden form experts. Analyzing users’ risk scores, costs. “Sometimes you do want some the services try to rebalance portfolios input on where the market’s going to go. according to users’ financial goals with You’re not going to get that when you real-time market data that is supposed to direct some money at a black box.” continually improve and optimize portfo- The robo-advisors’ ability to skillfully lios. So far, small start-ups lead the charge predict markets will improve, says in Canada, with Bank of Montreal and Mathewson, but he wonders if investors Alberta Treasury Branch as the only ma- will ever have full faith in it—not in spite jor banks to launch robo-advising services, of systems becoming more automated, dubbed SmartFolio and ATB Prosper. but because of it. It’s the same question But, in January, Royal Bank of Canada central to smart home technology and announced hiring UAlberta professor autonomous cars. Having the agency to Richard Sutton, a veteran in AI research, disagree with AI decisions could deter- for its new machine-learning lab. mine the success of automation and build Kory Mathewson, a UAlberta PhD trust in the long run. Such rights are student in computing science who already in place; the Canadian Investor specializes in human-AI interactions, Protection Fund regulates robo-advising. says success of the services is driven “If a company goes bankrupt or the algo- by demand from younger people trying rithm suddenly sells everything and the to crack the traditionally impenetrable company freaks out,” says Mathewson, world of investing. The simple and low- “there are federal protections in place for maintenance programs appeal to these your money. That’s critical.” FEATURE 16 ualberta.ca/business
LEADING LIGHT
Canada’s electricity industry is at a crossroads and the future is anyone’s guess writer photographer Michael Hingston Kelly Sweda
For most of its history, Ice Energy has been treated as a clever, if unorthodox, start-up on the fringes of the North American electricity industry. During his former life as a lawyer in Calgary, current CEO Mike Hopkins was first drawn to the California-based company because of how simple and ingenious its product sounded: oven-sized batteries that offset air-conditioning demand during peak daytime hours by making, and then melting, blocks of ice.
The trouble was, companies like Ice electricity is bought and sold, the implica- Energy haven’t exactly been in step with tions of which are not yet fully known. how the industry traditionally functions. As we leap into a future built around North America’s electrical grid was renewables, the electrical grid, as we designed to meet peak demand without know it, must not be just reimagined energy storage. “It worked around the but physically rebuilt. Existing utilities problem by overbuilding transmission and must innovate to survive. And citizens, in oversizing distribution,” says Hopkins. order to realize the green future they’ve The 13-year-old Ice Energy and its ilk, demanded, must prepare to pay up. meanwhile, are geared towards renew- But what will they be paying for? Ice able sources of energy, like wind and solar, batteries are just one potential solution which are naturally intermittent. As a re- angling for a share of this rapidly evolv- sult, Hopkins, MBA ’84, says his business, ing market. Plans are underway to trans- “like every other energy-storage company, form the coal-focused (and aptly named) was operating in a market that really was region of Carbon County, Wyoming, into a market for research and development.” the continent’s largest wind farm; Elon Utilities were interested enough to do a Musk and Tesla are trying to reinvent pilot project, maybe, but that was about it. roofing with glass shingles and solar cells How things have changed these past underneath. Here in Canada, a recent few years—and not just for ice ped- wave of federal and provincial policies is dlers. Here in Canada, and particularly poised to push us into similarly new terri- in Alberta, the electricity industry has tory. Simply put, it’s no longer a question been uprooted by national carbon taxes of if Canada will adopt green electricity, and mechanisms reimagining the way but when, and to what extent.
FEATURE 18 ualberta.ca/business
become more affordable by comparison. But in fact, when it comes to emissions, we’re already further along than many Canadians might think. “If you look at the rest of the country, it’s already quite clean,” Velasquez says. Approximately 80 per cent of the country’s electricity already comes from non-emitting sources like hydroelectric, nuclear, wind and solar. The real challenge is increasing that number to 90 per cent nationwide by 2030, as planned. And to do that, substan- tial changes are needed—especially in Alberta, where emission levels are higher than any other province, reaching 273.8 megatonnes in 2014, more than four times the output of B.C., with roughly the same population. And it’s still climbing. Trudeau wasn’t the only climate- conscious politician to come to power in 2015. When Rachel Notley and the NDP swept the Alberta election in the spring of that year, many wondered how her party’s progressive politics would mesh with the (Above) Ice Energy’s commercial ice THE WRITING HAS been on the wall province’s more free-market tendencies— battery air conditioning system, Ice for decades, even if it has been largely including its electricity industry, which Bear, which charges by making ice erased or ignored. Consider the coun- has been deregulated since 1996. The during off-peak hours when rates try’s role on the international stage: province’s Climate Leadership Plan, which are low. When temperatures go up, Canada pulled out of the Kyoto Protocol pledged to cap oil-sands emissions and Ice Bear’s smart-grid controller in 2011, more than a decade after first develop more renewable energy sources, allows monitoring of energy use. signing on. The country isn’t on pace to was an important first step. But it wasn’t meet the emissions reductions specified until last November that Notley’s govern- in 2009’s Copenhagen Accord either. “We ment announced a suite of its own concrete have a long history of setting targets we reforms to the provincial electrical system, The carbon tax could don’t meet,” says Carmen Velasquez, each with significant ramifications. also create a more Executive Director of Energy Programs Some of those plans, such as banning at the Alberta School of Business. door-to-door utility sales and putting an level playing field for Last year, Justin Trudeau’s Liberal upper limit of 6.8 cents per kilowatt hour renewables, which government signed Canada up for yet on electricity rates for families and small another international climate accord. businesses, were designed to protect con- are zero emitting and In fact, the country’s targets in the sumers. Others were intended to facilitate could thus become Paris Agreement—a 30 per cent reduc- and speed up the transition away from tion in greenhouse gas emissions from coal, from which Alberta still generates more affordable by 2005 levels by 2030—were set by the the majority of its electricity. By 2030, the comparison. Harper administration (the same one NDP government pledged that 30 per that withdrew from Kyoto and dragged cent of the province’s total electricity will its heels on Copenhagen). But Trudeau instead come from renewables. has already taken further steps. Namely, One of the biggest challenges to Alber- the announcement this past October that, ta’s electricity industry is shifting away unless provinces implement their own from a wholly deregulated “energy-only” carbon-pricing structures, Canada will be system and adding what’s called a capac- implementing a nationwide carbon tax for ity market. This will allow power plants the first time: $10 per tonne starting in to bid on contracts to produce electricity 2018, incrementally rising to $50 by 2022. in the future—a system that again opens The tax, which targets energy generated the door to renewables, which were hard- from fossil fuels like coal, will help bring pressed to compete under the former set- Canada in line with a growing global up. With a less volatile system in place, desire to cut climate change off at the pass. energy spikes during inclement weather, The carbon tax could also create a and thus their blackout counterparts will more level playing field for renewables, become less frequent. Consumers will face
which are zero emitting and could thus less price volatility, while for generators, ENERGY ICE BY SUPPLIED PHOTO SPRING 2017 19 FEATURE
“a capacity market means their year is no understanding of the true costs involved storage. That announcement was good longer made or lost in a matter of hours,” at the outset. “You ended up with un- news to Hopkins, but made legacy utilities wrote former TransAlta head trader intended consequences,” he says, “and a little more nervous. Here in Alberta, Blake Shaffer in the Calgary Herald. you’ve seen electricity prices effectively EPCOR sees a large part of its future tied In all, the province, through its Renew- double over the past 10 years.” As Alberta to the City of Edmonton’s environmental able Electricity Program, could add an attempts to green its own electrical grid, strategic plan, which also includes emis- additional 5,000 megawatts of renewable Lee argues the public must be properly sions targets and support for renewables. energy capacity by the time coal (and its informed and prepared for the future EPCOR’s energy supplier, Capital Power, 6,267 megawatts) is phased out in 2030. costs, which could jump more than 60 on the other hand, has responded to the This means that nearly a third of Alberta’s per cent from their current historic lows, Notley government’s plans with guarded entire current electrical capacity is slated according to estimates by energy invest- optimism, recognizing the billion-dollar to be replaced in little over a decade. ment firm FirstEnergy Capital. opportunities for future investment in For his part, Smereka doubts the math wind farms, while also acknowledging that will ever work, even with proper precau- without government compensation, they tions. “I cannot think of any scenario stand to lose around $100 million per year THIS REPRESENTS SIGNIFICANT oppor- whatsoever, despite what the politicians for the next twelve years. tunity for the electricity industry. It also and the environmentalists say, that renew- It’s too early to know exactly what the comes with a hefty price. The Alberta NDP able energy is cheaper,” he says. “Overall cost for revamping an entire electrical estimates the province will need $25 billion electricity costs are going to be higher grid will be. But even if costs are as high in new infrastructure to shift towards going forward, pretty much forever.” as analysts like Smereka predict, Canadi- natural gas and renewables by 2030. “And ans are getting what they asked for when that’s just on the electricity generation they elected governments who cam- side,” says Trevor Smereka, BCom ’89, paigned on building a stronger environ- executive vice-president of the independent THERE IS AN additional X factor, however. mental profile. They might even decide energy-management firm 8760. Mean- The technology around renewables is im- that taking decisive action against climate while, Alberta’s carbon tax, which will proving at a rapid clip, becoming smaller, change is worth the price, given the state supersede the national one proposed by the cheaper, more efficient, and its impact of the world’s icecaps and sea levels, and Trudeau government, isn’t directly applied may change things in ways we can’t more frequent extreme weather. to consumer energy rates, so not only will foresee. The same rules of exponential One thing is for sure: electricity is poised it show up in direct costs, like gasoline and advancements that apply to smartphone to become a political issue in Alberta like natural gas heating, but indirect costs like technology could also apply to renew- never before. “You’ve got a major policy food imports. “What does that do to the ables. “A lot of people believe that renew- shift coming here,” Lee says. “You’ve got overall economy?” he asks. ables are a product of public policy,” says an opposition that clearly has different To help offset some of these new costs, Hopkins. “That’s not accurate. Renew- views on it. In the next election, electric- the NDP will offer rebates for low- and ables are driven by technology.” ity is going to be one of the major policy middle-income Albertans, as well as For instance, one shot against green discussions. And if you ended up seeing a reduced tax rates for small businesses. But energy sources is they are, by nature, change in government, you could see an- Smereka believes that many of his clients at intermittent. You can’t create solar power other change in direction around electricity 8760, including mid-sized and large corpora- if the sun isn’t shining, or wind power if policy, which creates more uncertainty.” tions, school districts and seniors’ housing, the turbines aren’t moving. But that’s only In a fully regulated industry like those will be on the hook for the full amount. The a problem if you require generated energy in Canada’s other provinces, drastic province, he says, is also home to electricity- immediately—and if companies like Ice changes in policy and even the ruling intensive industries like forestry, agricul- Energy can solve the storage question, party have a limited effect. But in Alberta, ture, manufacturing and petro-chemicals— then the future looks different indeed. Lee says, it could be a different story. some of which could decide to leave Alberta “There is no other delivery system in “When you’re dealing with a competitive in search of provinces whose carbon plans the world, for any commodity, that lacks market design, and you have major policy are more business-friendly. “So Alberta has storage,” says Hopkins. “You don’t have shifts every four, eight, twelve years— to be careful,” he says. “The lights are on, to deliver milk in real time, from cows to and you’re making 50-year investments— but will anybody be home?” you. You have a cost-effective, reliable way that’s problematic.” Smereka thinks a more robust of storing it so you can produce it at a con- But that doesn’t mean it’s not worth the conversation remains to be had among stant rate, store what you don’t need, and effort. While analyzing the push to green Albertans about the true costs involved then make sure the consumer gets what the grid and lower emissions to sustainable in the NDP’s plan to move towards they want, when they want it.” Electricity, levels, Velasquez borrows a famous hockey renewables. He isn’t alone. As the CEO in this sense, is unique, and thus ripe for maxim: You miss 100 per cent of the shots of EPCOR, electricity distributor for the disruption. “You can’t have significant re- you don’t take. “So let’s at least try,” she City of Edmonton and other municipali- newable energy without energy storage.” argues. “Even if we don’t get there, we’ll ties, Stuart Lee, BCom ’86, also has the The turning point for Ice Energy came at least change the direction.” changing utility landscape on his mind. in 2013, when the State of California, He hopes Alberta learns from Ontario’s buoyed by the success of its own renew- MICHAEL HINGSTON is a novelist and recent expansion into renewables, which, ables, mandated utility providers start Edmonton-based contributor to Wired, the Guardian and The Washington Post. PHOTO SUPPLIED BY ICE ENERGY ICE BY SUPPLIED PHOTO he believes, didn’t give the public a clear procuring significant amounts of energy
MaaS Effect
THE PRIVATE VEHICLE IS LOOKING COSTLY, WASTEFUL, DIRTY AND PLAIN OLD PASSÉ AS MORE PEOPLE TAKE ADVANTAGE OF THE “MOBILITY-AS- A-SERVICE” ECOSYSTEM. IS IT TIME TO WELCOME OUR NEW TRANSPORTATION OVERLORDS?
writer photographer Tim Querengesser Aaron Pedersen FEATURE 22 ualberta.ca/business
MIKE WILSON JUST wanted to visit friends. But Wilson, BSc ’12, was on campus and his friends were in Sherwood Park, 20 kilometres away. And he doesn’t own a car. And this was 2010, when the answers to his alternative transportation needs were three transfers on a bus that runs hourly, or a $40 cab ride. So there Wilson stood, in a University of Alberta parking lot, fuming. His hoped-for chariot was one of four Hertz car- shares, essentially a glorified rental that customers reserved long in advance via a glitchy app. But, as Wilson says was normal with those early cars, there was no guarantee he’d be able to painlessly unlock the car, let alone drive it. “Almost half the time I used it, I’d have to phone tech support,” he says. Nobody wants to be Wilson. It’s why most of us still pay top dollar to own private automobiles—at an average of $10,456 per year, according to the Canadian Automobile Association— which, aside from likely being the second biggest purchase we make in our lives, sit idle 95 per cent of the time. Moreover, the space, resources and clean air consumed by private cars increasingly make this mobility unsustainable. Madrid is attempting to reduce pollution by temporarily banning half its cars off the road each day, rotating by license plate numbers, a policy copied from São Paulo to combat congestion. Other European cities are slowly introducing partial or full bans downtown, while car-clogged Manhattan recently closed off much of Times Square to personal vehicles. Closer to campus, Edmonton’s 10-year strategic plan calls for more public transit and active transportation (such as biking or walking) to stave off traffic jams, and city officials in Calgary are researching how to introduce autonomous vehicles. Both cities were among Canada’s first to legalize ride-shares like Uber. “A lot of people don’t understand why you wouldn’t have a car,” says Wilson, who moved to Edmonton from Red Deer to study computer science and promptly sold his ride. “Or they’ll say, ‘Oh, you don’t have a car, I’ll give you a ride.’” But Pogo Car Share he doesn’t want a ride. What he wants is a convenient way to co-founder live car-free. Kieran Ryan, BCom ‘08 Our urban future is likely one where we cut ties to private cars and build them with public transit and private mobil- ity companies to create a business ecosystem that has been dubbed “mobility-as-a-service,” or MaaS. But what would it mean to go car-free today? And what would this teach us about the possibility and pitfalls of the future? Two graduates of the School of Business differ in their business models but share Adding car-sharing the belief that privately owned automobiles are nearing a dead end and that industry “disruptors” like them can solve the convenience problem the way the private car always has, as to all those services well as the inconveniences it has created. doesn’t add one option—it makes KIERAN RYAN, BCOM ’08, steers a white Hyundai Accent, decaled with Pogo CarShare’s Edmonton skyline, into traffic. Ryan is 31, tall, lean, disarmingly honest and, like the company, the whole system proudly homegrown. He started Pogo because he wanted Ed- monton to have a service like Calgary’s Car2Go. It wasn’t until more workable. he used his own service that he had an “aha” moment about the 1,500 kilogram steel box occupying his duplex’s driveway. “I didn’t really think about selling my car,” he admits. “And then I got into using the services and I was like, ‘Hey, I can probably get rid of it’—and I did.” SPRING 2017 23 FEATURE
With a background in energy market home delivery,” says Murray. Indeed, Uber drivers needed better-than-average analysis, Ryan co-launched Pogo with research shows most people dislike gro- insurance or commercial vehicle-for-hire James Kwan (BCom ’10), in 2014, as a cery shopping. But, well, habits. “Some licenses. Simple. point-to-point car-sharing service you of the smartest minds in retail tackled But Uber still refused to comply. The book with a smartphone app that shows online groceries 10 years ago, and they Alberta government was incredibly you all 65 vehicles on a map. GPS guides failed. They had billions in funding, a specific in its criticism as the deadline you there, while a fob gives you ac- great model, but just couldn’t convince passed. “It certainly is clear [Uber’s] not cess inside and to the keys in the glove consumers to change their ways. Those a reliable or trustworthy partner for the compartment. You can leave the Pogo at are relatively small habits compared to government,” Infrastructure Minister your destination (as long as it’s within changing how we get around.” Brian Mason told reporters. Uber finally the designated 22-square-km zone in the The numbers support Murray’s point. cooperated wholly by July 1, when it re- inner city) rather than having to return it, There are currently 1.2 billion cars on the entered Edmonton’s market. as you would a traditional rental car. planet’s roads, according to energy think If ride-shares wish to herald the future As Ryan stops at a traffic light, he tank Navigant Research, which expects of mobility—not just in cosmopolitan cit- says the Hyundai, along with all Pogo the four-wheeled population to grow to ies, but small communities, and at a main- vehicles, is driven up to six hours per day 2 billion by 2035, thanks to a predicted stream scale—they’ll need to learn to and takes roughly 12 private cars off the supply of affordable electric vehicles play nice for regulators’ buy-in. Much like road. But it’s his views about MaaS—as a and growing middle classes in China and Shayne Saskiw and co-founder Jonathon complementary network of public transit, India. The market that mobility disrup- Wescott, LLB ’07, did with TappCar. Pogo, TappCar, taxis—that are most dra- tors are hoping to change is gigantic. Saskiw (BCom ’03, LLB ’06) is hand- matic. Soon, he says, they’ll render the And while people like Wilson and Ryan— some, in the vein of a ’90s game-show private car obsolete. “Adding car-sharing young, urban, mostly childless (Ryan has host, and his title should be something to all those services doesn’t add one op- a one-year-old)—may adopt these new like “the non-disruptive disruptor.” tion—it makes the whole system more services wholesale, Murray says the real Consider his contradictions: Saskiw is a workable. I take the bus every day but test is convincing suburban families that former Wildrose MLA and a legal counsel now have access to this car share, so if I it’s the better option. to far-right politician Jason Kenney’s miss the bus, it doesn’t ruin my day—I “I have two cars,” says Murray. “But Alberta campaign team, yet TappCar is get to work on time anyway,” he explains. I need to feel secure that if I pick up one the first unionized ride-share in North Buses, taxis, private cars and pedes- of my daughters, or take a trip to the America. And that’s by design. Saskiw trians all jostle for space along Jasper mountains on the weekend, it will be easy. sees value in diplomatic disruption, Avenue as Ryan dreams aloud about how Otherwise it’s difficult to give up the con- enabling governments to phase out cars these services could all come together. The venience of owning a car. And my guess rather than fight them to do so. last gap, he says, is payment. Make all is, I’m much more willing to do that than Uber pushed for a bylaw, then pulled these mobility services available for one most people.” out of Edmonton as a protest against monthly fee and you’ll change the world. administration’s proposal, allowing TappCar Sound unrealistic? It’s already happen- to become the first legit ride-share in ing: This year commuters in the metro- Edmonton and Calgary. It was also the politan U.K. county West Midlands will NEWS MEDIA WRITE happy headlines first non-taxi company to secure a deal combine all of their modes of transport when car shares come to town. But when to drop off and pick up passengers at and payment through an app called Whim, ride-shares like Uber and Lyft arrive, Edmonton International Airport, some- which residents of Helsinki, Finland, have it’s war. thing Pogo and Uber are still working on. had since 2016. “You have a smartphone, Compare and contrast Edmonton’s TappCar wanted to avoid messy you punch in your credit card and—tada! two case studies months apart from each situations, such as in Paris, where Uber It works,” explains Ryan. other: Pogo worked with Edmonton poached hordes of taxi drivers, then There are 104,000 car share vehicles officials to arrange ground rules before cut the fares so sharply some said they (like Pogo and Car2Go) serving nearly 5 launching—parking rates, decals, insur- couldn’t make a living. Civil disobedi- million members in 33 countries, accord- ance policies, tow-away procedures. Uber ence and halted services followed. “We ing to University of California, Berkeley’s extended no open hand—it just barged thought we would skip that step,” says Innovative Mobility Carsharing Outlook in with little regard for driver-for-hire Saskiw. “We thought a happy driver is a (based on 2014 data). Ryan estimates laws. Right on script the embedded taxi happy customer.” Canada has about 6,000 car-share vehicles. association dug in, Uber’s share-economy Ignoring the union, TappCar’s model But habits don’t break easily. Something believers cheered, and legislators were replicates Uber’s: You hire a driver using that works and costs less doesn’t neces- stuck between the warring camps and an a smartphone app. Payment is automated, sarily convince the masses to change their enlightened public. After protests, failed too, though TappCar drivers will some- behavior, argues Kyle Murray (BSc ’94, court injunctions and even a sit-in at city times take your cash (they’re not allowed PhD ’04). The professor of marketing and hall that saw some taxi drivers take off to accept street-hails, though drivers have Director of the School of Retailing—and their shirts (because Uber, you see, was routinely broken this rule, according to Ed- Pogo user—points to struggling online “taking the shirts right off their backs”), monton’s community and public services grocery start-ups as a cautionary lesson Edmonton bowed to pressure and passed committee). The company is planning ex- in consumer psychology. “It seems like a ride-share bylaw that would legalize the pansion into Vancouver if the apprehensive a natural thing for online shopping and company by March 1, 2016. The caveat? city changes its bylaws, as Saskiw expects. FEATURE 24 ualberta.ca/business
[TIMELINE] GM AUTOPLEX opens A History of 50,000 in Oshawa, Ont. as motor vehicles one of the largest Cars in Canada UNIVERSITY OF in Canada. assembly plants in MICHIGAN researchers the world, securing see a nearly 10% 1913 General Motors’ place drop in the number FORD MOTOR 560,000 as Canada’s largest of licenses issued to COMPANY OF motor vehicle auto manufacturer. Canadians between CANADA opens registrations in 25–44 over 10 years. first plant in Alberta. 1980 Windsor, Ont. 2009 1963 1904
1850 1950 1875 1900 1925 1960 1970 1980 1990
1997 1867 2009 , FIRST 1937 1964 HONDA CIVIC CANADIAN introduced in 1973 GM CANADA closes AUTOMOBILE JOSEPH-ARMAND FORD MUSTANG and primarily Oshawa truck built by Henry BOMBARDIER 00001—the assembly produced in Alliston, plant, cuts over Seth Taylor. designs and produces line’s first model—is Ont., becomes top- half of Canadian snowmobile. 1906 sold in St. John’s, N.L. selling passenger jobs, and closes a Within 24 months, the car in Canada. third of Canadian 41 motor Ford Mustang sells 1 It holds the title dealerships, ending vehicle million, making it the today, after 19 its run as the registrations fastest-selling new consecutive years. country’s largest in Alberta. nameplate of its time. auto manufacturer. SPRING 2017 25 FEATURE
Shayne Saskiw, BCom ‘03, LLB will be 65 or older. And, Shirgaokar says, vehicles (like Pogo) will travel 80 per cent ‘06, co-founder of TappCar in research shows seniors are risk-averse, of all distances that cars drive. Edmonton and Calgary. often lack credit cards needed to use A taste of what’s to come is three years ride-shares and will be prone to ask—as away: Tokyo’s Summer Olympics are ex- you can likely hear your grandma asking pected to be the autonomous car’s main- right now—“How do I call an Uber?” stream reveal, as the country is investing “There are many questions of accessi- heavily in the technology needed to make TappCar is also expanding its network bility to services in the new transportation the capital a “self-driving city” for the of 250 cars in Edmonton and 50 in Cal- realm,” Shirgaokar says. “Think about event. While 20 companies test autono- gary, and readying to trial electric cars in the penetration of technology in groups mous cars in California legally, Uber’s its fleet. The plans coincide with the forth- like single-income families. Uber is cheap much-discussed autonomous SUVs drove coming installation of 70 charging stations if you’re time constrained. But will single San Francisco’s streets (and occasionally and the Alberta Government’s low-carbon mothers get on board?” ran red lights, as seen on YouTube) with- economic policy (see PAGE 16 for story). Just as families in suburbs are cur- out permits. This won over many who feel Saskiw says the decision to add electric rently the kryptonite for car shares, regulation is an anti-capitalist crime; it vehicles is partly driven by customers and there’s a lot of kryptonite for ride-shares also earned a cease and desist order from partly by government direction. too. The private automobile’s future looks the government of California. As for the future of taxis, Saskiw offers a relatively safe. For now. The implications go beyond what you grim prognosis: “The old-school taxi indus- drive (or what drives you). Uber’s end- try is going to be obsolete relatively soon.” game is to not employ drivers at all, and if In fact, TappCar is attempting to buy out other ride-shares and taxis can catch up, Edmonton’s busiest taxi stand in 2017. THE PRIVATE CAR can’t keep its momen- an entire workforce will be obsolete. Da- Would customers embrace the change? tum much longer, at least not in Canada vid Dale-Johnson, Stan Melton Chair in UAlberta’s Manish Shirgaokar is and the U.S., where Millennials, now the Real Estate at the School of Business, also skeptical. The urban planning assistant majority demographic, are turning their argues that autonomous cars will change professor researching consumer adoption backs on the suburbs and delaying get- land use—or, more simply, allow the of new transportation options notes that ting their licenses. But even in so-called suburbs to keep sprawling and slow urban taxis are simple in a way that ride-shares developing nations, where the commoner’s densification. “If you don’t have to worry are not. Consider, he says, the “grey possession of a private car is a modern about insuring the car or parking it, the tsunami”: By 2036, one in four Canadians phenomenon, mass urbanization and tech- suburbs become relatively more attrac- nology expansion has created favourable tive, which is kind of an odd result, given conditions for MaaS’s takeover. The world’s everybody’s brain thinking about more collection of smartphones has already density in the urban setting,” he says. Kurt CAR-SHARING SERVICE EDMONTON surpassed that of automobiles, tracking to Borth, a researcher with UAlberta’s Office CAR2GO rolls out in becomes hit 2.16 billion in 2017, says research firm of Sustainability, sees a similar outcome, Calgary after debuting the first eMarketer, and for the first time in human where infamous suburban commutes in Canada a year earlier. Canadian city By the end of 2016, to legalize history the majority of people live in urban become leisure or productivity time. “If Calgary has over 100,000 Uber. areas. The lovechild of these two trends is the drive was stress-free—and that’s a big members, making it the autonomous car, the disruptor of dis- if—then maybe people would be okay with the multinational’s 2016 ruptors, set to upend all we’re accustomed living further and further out of the city,” fastest growing market to in mobility, urban design and lifestyle. says Borth. In these scenarios, the status in the company’s global These are not what Tesla, Mercedes, quo design of modern cities is just fine, operations. BMW and other tech-focused car manufac- allowing for some further density when tures currently sell. Those are self-driving parking lots become infill development, 2012 cars that can travel for short periods with as demand diminishes from two cars per you, a human, still behind the wheel. An household to one or none at all. 2020 autonomous car—one with no human at Perhaps the only certain thing about 2000 2010 the controls— is the next evolution and will the future of the private car is that owning depend on cities building sensor and signal an automobile will increasingly be viewed 2014 infrastructure to enable it. Like an Uber, as a luxury, and possibly a shameful one, 2016 you might simply hire an autonomous car as we must increasingly find ways to do UBER, launched to pick you up and drop you off, then it’s more with less—be it less energy, space, in 2011, rolls out 33 MILLION UberX ride- off on its merry way, plying streets for an- money or time. We’ll have to adjust to new motor vehicle other customer. You won’t have to fuel up, ownership structures and city layouts that hailing platform registrations in change the washer fluid or get a tune-up, suit new mobility concepts, and, eventually, in Toronto, and is Canada; swiftly banned. 5 million in nor will you have to track it down, make we’ll be like Mike Wilson. Except in the Alberta. small talk or feel obliged to tip. future, we won’t be stuck without a ride. Boston Consulting Group predicts 2020 the autonomous car industry will hit $42 TIM QUERENGESSER, contributor to The BUSINESS INSIDER projects 10 million billion by 2025 and by 2040, Deloitte pre- Atlantic’s CityLab and Alberta Views, is writing autonomous cars on the road worldwide. dicts autonomous and shared-ownership an “anti-memoir” on the private automobile. LEARN 26 ualberta.ca/business
INTERNATIONAL VIEW SEVEN OF THE MOST INFLUENTIAL ALBERTA SCHOOL OF BUSINESS RESEARCH PAPERS OVER THE DECADES
MARKETING STRATEGIC MANAGEMENT & ORGANIZATION 5,522 CITATIONS* UNDER Louviere, J., Hensher, D. & Swait, J. (2000). 1,797 CITATIONS Stated Choice Methods: Analysis and Hickson, D., Hinings, C. Lee, C., Applications. Cambridge University Press. Schneck, R. & Pennings, J. (1971) REVIEW Based on 30 years of studies, it is a 400- A Strategic Contingencies’ Theory page seminal book on understanding and of Intraorganizational Power. predicting decision-making behaviours. Administrative Science Quarterly. THE UNIVERSITY OF ALBERTA The sections on choosing between moose is a leader in business education, These researchers suggested that hunting sites is a dead giveaway of where the subunits—smaller units that make up an ranked third best commerce school international researchers started their work. in Canada by Maclean’s this year organization—are more or less powerful depending on their ability to deal with and 37th by the Academic Ranking 1,481 CITATIONS of World Universities in Economics/ uncertainty, their substitutability (if Häeubl, G. & Trifts, V. (2000). Consumer a subunit is difficult to replace, it is Business in 2015. At the heart of decision making in online shopping these authorities’ praise is the powerful), and their centrality (how environments: The effects of interactive inter-connected and integral the subunit School of Business’s research decision aids. Marketing Science. focus. The School has produced is to the organization). outstanding research over the past How people made online shopping three decades. — Staff decisions was still a big unknown at the 477 CITATIONS turn of the millennium. Trifts and Häeubl’s Greenwood, R., Hinings, C., & Brown, J. look at interactive web features indicated (1990). P2-form strategic management: that the tools seemed to allow customers Corporate practices in professional to quickly and easily compare the variety partnerships. Academy of Management of products available and make sound Journal. purchasing choices. This “P2-form” article about a new strategic management model of the same name—considered the best FINANCE model for the unique needs of large Research highlights from professional partnerships—was considered so influential that one Oxford 8,960 CITATIONS July 2015 to June 2016: journal celebrated its 25th anniversary Morck, R., Shleifer, A., & Vishny, R. (1988). with a special issue. Management ownership and market 37 valuation: An empirical analysis. PEER-REVIEWED Journal of Financial Economics. JOURNALS that This study of 371 Fortune 500 firms analyzed ACCOUNTING published research the interplay between their value and their by the School’s faculty levels of ownership by managers and board 625 CITATIONS members and members. The researchers concluded that, Gibbins M., Richardson A. & PhD students as this type of ownership grew, the value of Waterhouse J. (1990). The management the firms would rise, fall, and then stabilize of corporate financial disclosure: and increase very gradually. opportunism, ritualism, policies, 42 and processes. Journal of Accounting INSTITUTIONS that Research. collaborated with the 1,165 CITATIONS School’s researchers Little was understood or shared about Morck, R. & Yeung, B. (1991). Why Investors corporations’ accounting disclosures, Value Multinationality. Journal of Business. such as filings with securities 117 Despite theories that shareholders value commissions and press releases, until RESEARCHERS multinational firms for such benefits this work attempting to explain and across all institutions as their diversification and potential tax predict it. Whose responsible for them avoidance, Morck and Yeung conclude that and how do they make those disclosure investors do not value multinationality to decisions? It’s sometimes ritualistic 11 a significant degree. and rule-abiding, and sometimes NATIONS involved opportunistic. in the research *Citations from Google Scholar, on Jan. 14, 2017. JIAOTONG UNIVERSITY (XI’AN) PHOTO FROM ISTCOKPHOTO.COM FROM PHOTO UNIVERSITY(XI’AN) JIAOTONG SPRING 2017 27 LEARN
[WEB: ALBERTA BUSINESS CONNECT] ON CAMPUS Missing Links
[INTERNATIONAL: CHINA] Starting a New Chapter
NETWORKING IS THE lifeline of business communities, so it shouldn’t come as a surprise that most MBA students and grads are adept at using social media for career building. The Alberta School of Business is hoping to do one better than LinkedIn and the like with its own homegrown platform, Alberta Business Connect, offering something missing from the global focus of big networking sites: direct industry connections for MBA grads. The closed-circuit portal, abbreviated as ABC, is a place for them to find mentors and business partners in their field, a Lots of international students feature that’s either not offered or hard to navigate in general- have been coming to us, but now focused and massive social networks. Users can connect their existing social accounts and tag profiles as “Willing to Help,” we’re starting to go to them.” allowing others to seek them out as leaders and influencers in the dozens of specialized industries, such as energy, finance CHINA’S BRIGHT YOUNG city and technology capital, Shenzhen, and real estate. “For alumni looking to make a career change or is home to UAlberta’s newest alumni chapter. Most of the nearly a move to another city, the ability to easily find and then connect 87 graduates emerged from the School’s master of financial with a fellow alumnus beforehand can ease their transition,” management in a partnership with Xi’an Jiaotong University, says one of its early adopters, Ashton Paulitsch, MBA ’16, who which graduated its third cohort in November and started its is also Director of Recruitment, Admissions and Marketing. sixth in January. Given the success of the MFin (Mgmt) program, ABC has grown to host 700 active users, totalling nearly popular amongst business professionals already in leadership a fifth of the entire MBA alumni community. With over 500 roles, the School is considering further educational programming alumni offering their help to others, the platform is fast in the region. “Lots of international students have been coming becoming the go-to hub for alumni news, job postings and to us,” says Michael Maier, Associate Dean of master’s programs, social events. It’s even helping the School find and reconnect “but now we’re starting to go to them.” — Angela Johnston with long-lost grads. — Mike Kendrick
[ENGINEERING PARTNERSHIP] anyone will benefit from some business Because of the stringent structure of savvy. That’s why a new agreement, an engineering degree, they’ll complete Seismic Changes beginning with the Faculty of Engineering, business coursework at the end of but possibly including other faculties in their regular studies. Due to necessary the future, will offer students the option to prerequisites and the condensed add another year of study to their bachelor timeframe, specializations within the degrees to earn a business minor. The minor are limited to business economics collaboration, approved late last year, could and law, general business studies, see the first cohort of fourth-year students finance, international, marketing, and beginning as early as September. strategic management. A capstone course “For them to have these business skills bringing together both streams, business ASK ELAINE GEDDES about the value means that they’re coming in not only with and engineering, completes the program. of interdepartmental collaborations on their technical engineering skills, but also Geddes says the collaboration benefits campus, and the School’s Associate Dean with the ability to manage the books,” says both faculties, allowing the School of of undergraduate programs argues that, Geddes. They’ll also gain an understanding Business to expand its reach and future
JIAOTONG UNIVERSITY (XI’AN) PHOTO FROM ISTCOKPHOTO.COM FROM PHOTO UNIVERSITY(XI’AN) JIAOTONG whether a baker or a theatre mananger, of how to market themselves, she adds. engineers to round out their skills. — AJ LEARN 28 ualberta.ca/business
SOCIAL TIES
02
01 UAlberta made a mark at the 2017 MBA Games (yes, that’s a thing). At the light- hearted competition of sports, academia and personal development, hosted by Vancouver Island University, the team ranked 3rd overall, and brought home first-place awards in basketball, marketing case and spirit case. (Jan 3/17)
02 On Alumni Weekend last fall, the School of Business greeted its community with a wall of donuts, baked by Moonshine Doughnuts with Tycoon Events. (Sept 24/16)
03 From left: Lindsay Marshall, Kierstin 01 Smyth, Kate Latos, Ashton Paulitsch, Chris Carr, Breanne Fisher. Latos received the inaugural BAA Innovation Challenge prize, a $10,000 award for EcoFence & Decking, a construction company manufacturing with recycled plastic. The prize also includes a year of business mentorship. (Sept 24/16)
04 MBA students Doran Walker (right) and Hickimatu Braimah (second from right) take part in Christmas celebrations in Addis Ababa, Ethiopia. They were part of a team of nine MBAs who joined professor Emily Block in January to help launch the nation’s first-ever cancer research clinic. (Jan 13/17) 04 03
EVENTS CALENDAR
MAR 14/17 JUN 6/17 JUN 26/17 JUL 12/17 SEPT 6/17 36th Annual Canadian Eric Geddes 17th Annual Annual Calgary BAA CPA Cup Business Leader Lunch Lecture Chancellor’s Cup Stampede Breakfast Golf Tournament Award Dinner The Ranchmen’s Club, Edmonton Country Club: Ceili Modern Irish Pub, Highlands Golf Shaw Conference Calgary: The School The golf tournament is Calgary: Kick up your Club, Edmonton: Centre: The School’s hosts Enbridge President a chance for alumni to boots and enjoy Angus- Enjoy 18 holes and hallmark event honours and CEO Al Monaco for network while supporting sized servings of bacon the company of friends Elyse Allan, President an in-depth discussion U School. The program and eggs. Eat up before with a breathtaking and CEO of GE Canada on the future of Alberta’s lets rural, Aboriginal or the “Greatest Show on view of the Edmonton (P. 34), a leading mind in energy sector. Monaco disadvantaged students Earth,” but don’t leave river valley on the energy and clean tech, was named Business spend a week learning without a free bottle of side. Sponsored by and a lauded advocate Person of the Year by at the University of Alberta our very own Alberta Chartered Professional for advancing women Alberta Venture magazine in hopes of inspiring a School of Business Accountants of Alberta.
in business. in 2016. brighter future. barbecue sauce. SWANSON PAUL CREDIT: PHOTO INNOVATION BAA SPRING 2017 29 LEARN
CLASS NOTES LOUISE MILLER, MBA ’79, Edmonton, LAURIE SCHULTZ, BCOM ’85, MBA ‘89, co-founder and president of the Spinal of Vancouver, president and CEO of Cord Injury Treatment Centre Society software company ACL Services, was received the 2016 Premier’s Council named one of Canada’s Most Powerful Marlin Styner Achievement Award. It Women: Top 100 Award Winners by the recognizes Albertans who have demon- Women’s Executive Network. Schultz is 1960s strated outstanding achievement and responsible for leading ACL’s global busi- leadership in making positive changes ness by mobilizing talent toward category GREG BATES, BCOM ’69, of Calgary, a that create inclusive, barrier-free commu- disruption and double-digit growth. With retired trade commissioner (PAGE 13), nities for people with disabilities. Miller, more than 25 years of experience in writes: “I was pleased to learn that one of an advocate for people with spinal cord software and technology sectors, she has the four key areas of discussion at the 28th injuries, says one of her greatest achieve- led 12 multimillion-dollar software profit Business Alumni Association Dinner was ments was co-founding the society. and loss statements, and has both doubled international business. I spent 37 years in revenues and doubled profits. Canada’s Trade Commissioner Service. I was privileged to serve in Belgium, 1980s CYNTHIA HANSEN, BCOM ’86, of China, Malaysia, Nigeria, the Philippines, Edmonton, president of gas distribution the U.K., and the U.S. In addition to MARILYN SCHONBERNER, BCOM ’81, of and power at Enbridge, was named one of working in Canadian embassies, high Calgary, was appointed to the position Canada’s Most Powerful Women: Top 100 commissions and consulates around the of CFO and senior vice-president at Award Winners by the Women’s Execu- world, I also had the opportunity to work Nexen in January 2016. Since joining tive Network. She has almost 20 years of with Canada’s mission to NATO and the energy company in 1997, she has experience working in finance, operations with the U.N., International Maritime held such positions as general manager and safety leadership roles within Enbridge. Organization and World Bank group. I of human resources services, director The now-two-time WXN Top 100 winner learned about the Trade Commissioner of corporate audit, director of business serves on the board of the Canadian Gas Service through the University’s career services UK and treasurer/vice- Association, the Ontario Energy Associa- days, and owe a great debt to the School president of corporate planning. tion and the University of Alberta School of Business, to Dr. Hu Harries and my of Business Advisory Council. professors for preparing me for such a TEMA FRANK, BCOM ’82, of privileged and fulfilling career. I look Edmonton, owner of Frank Reactions, PATRICK BIELENY, BCOM ’88, of back on my time at UAlberta with was a finalist for the 2016 Best Book Edmonton, accepted a position as particular fondness and count myself Award for PeopleShock: The Path To president and chief executive officer at extraordinarily fortunate to have attended Profits When Customers Rule, an Amazon Western Financial Group. such a renowned institution and for bestseller. A columnist for this magazine the opportunities it opened up for me. (PAGE 12), she hosts the Frank Reactions JOSEPH GEBRAN, BCOM ’89, of For this I will always be grateful.” Podcast on Customer Experience and has Edmonton, is now a proud owner- advised organizations such as the Royal operator of three McDonald’s restaurants Bank of Canada, Bank of America and the in the Alberta capital’s downtown. 1970s Government of Alberta. Frank, who has taught digital marketing at universities THOMAS GEE, MBA ’78, of Edmonton, in Canada and France, will be a keynote 1990s a partner with Collins Barrow Edmonton speaker at Seamless Africa: The Future of LLP, has been appointed to the Private Payments, E-commerce & Retail in Cape ALVIN CHOW, BCOM ’91 of Port Enterprise Advisory Committee of Town, South Africa, this spring. Coquitlam, B.C., accepted a position as CPA Canada. The PEAC assists the vice-president of national advertising Accounting Standards Board in retaining JUDITH ATHAIDE, MBA ’85, of Calgary, sales for Western Canada at Glacier and improving accounting standards for president of electricity company Cogent Media Group, a marketing company and private enterprises. Group, was named one of Canada’s Most business consultancy for agriculture, Powerful Women: Top 100 Award Winners health care, mining and other sectors. BARRY FARQUHARSON, BCOM ’79, by the Women’s Executive Network. Over of Sherwood Park, Alta., CEO of the course of her long career, she was DARRYL HODGINS, BCOM ’92, of NovaGreen, and Larry Donovan, the heavily involved in deregulating Alberta’s Edmonton, owner of Dance Power company’s president, were finalists for electricity industry. Enterprises, writes: “I wanted to let you the 2016 Prairies EY Entrepreneur of know that my company Dance Power is the Year award. NovaGreen’s proprietary KEVIN HIGA, BCOM ’85, of Edmonton, celebrating our 25th season. We are one of solution suite effectively transforms accepted the CFO position at Peavey the largest dance competitions in North low-value biomass into a number of high- Industries in Red Deer, Alta. It operates America, in operation since 1992. We value, environmentally friendly nutri- over 80 rural-based hardware stores in operate eight events in Alberta and B.C., tion and green tech solutions, which are Canada, doing more than $400 million in with over 7,000 entries and 25,000 dancers increasingly used in processed food and annual sales. The company is owned by each season. In the past we have operated
BAA INNOVATION PHOTO CREDIT: PAUL SWANSON PAUL CREDIT: PHOTO INNOVATION BAA nutrition applications. DOUG ANDERSON, BCOM ’05. events in Ontario, Hawaii and Las Vegas.” LEARN 30 ualberta.ca/business
WARREN SARAFINCHAN, BCOM ’92, of Kelowna, B.C., vice-president of Sun-Rype Products, has been awarded the prestigious annual CITT Award of Excellence for 2016 for demonstrated excellence in the supply chain logistics field, a deep commitment to his community and professional integrity.
SHAHEEL HODA, BCOM ’93, of Edmonton, is a strategic advisor at LoginRadius and TEC Edmonton Executive in Residence. Hoda took home the Entrepreneur Promotion Award for his work in mentoring budding ICT companies and helping these companies raise capital. He served as CEO of CodeBaby Software for five years, where he led the company to become a world leader in virtual assistant software. Prior to this he was based in Austin, Texas, at Trilogy Software, a high-growth enterprise configuration software company. He was also an adviser to Fortune 500 executives through his work as ROBERTA MACGILLIVRAY, BCOM ’99 a strategic advisor with McKinsey (above), of Edmonton is the president & Company, considered the world’s and second generation owner of the Filter premier strategy consulting firm. Shop, a Western Canadian manufacturer and distributor of air filtration products MICHAEL LOHNER, BCOM ’93, of and services. MacGillivray was one of the Edmonton, co-founder and principal featured panel speakers at the Eric Geddes of Canadian Strategy Group, was Breakfast Lecture on Family Business inducted to École Camrose Composite on February 28, 2017. MacGillivray and High School’s Wall of Fame for distin- panelists Brent Hesje, CEO of Fountain guished faculty and alumni. Few political Tire, Marshall Sadd, CEO of Lloyd events have occurred in Alberta without Sadd Insurance, and Blaine Macmillan, Lohner’s influence; he once led the President of Cowan Imaging Group, UAlberta Student Progressive Conser- discussed how strong family businesses vatives, served as an executive assistant are navigating the ups and downs of the to various provincial cabinet ministers Alberta economy. and managed multiple federal and provincial candidate campaigns. 2000s JANE HALFORD, BCOM ’94, of CRAIG PATTERSON, BCOM ’98 (above), Edmonton, co-founder of BOLT of Sherwood Park, editor-in-chief of JENNIFER JENNAX, MBA ’00, of Transition, moderated a panel discussion Retail Insider and Director of Applied Edmonton, recently accepted a position on the topic of “Lessons for Massive Research at the School of Retailing, as Senior Director, Advancement Board Transformations” as part of was the featured speaker at the Eric Services, at the University of Alberta. ICD’s Edmonton Chapter Breakfast Geddes Breakfast Lecture during Retail In this role, she will oversee the events on October 19, 2016. She is a Week, on the topic “What’s on the strategic direction, integration, and former member of the Alumni Council horizon for the retail real estate management of Advancement Services and served on the University Board industry in Canada?” The October 4, including the Office of the Recording of Governors and Senate. 2016, event had 120 guests in attendance Secretary, Information Services, Records, and was moderated by Kyle Murray, and Finance Administration. Previously, SONIA BARIL, BCOM ’97, of Ottawa, Professor of Marketing and the Director Jennax served as director, corporate deputy director of Canadian Interna- of the School of Retailing. strategic services at the City of Edmonton, tional Development Agency, and husband general manager of corporate strategic COLIN BARIL, BCOM ’98, president of BILL BLAIS, BCOM ’98, of Edmonton, was services at the City of St. Albert, MBA Colin Baril Consulting, recently returned recently promoted to president and CEO student advisor at Royal Roads University,
from a three-year stint in Honduras. of MacLab Development Group. and was a principal at Acton Management PATTERSON CRAIG AND MACGILLIVRAY ROBERTA BY SUPPLIED PHOTOS WILSON ROSS BY SUPPLIED PHOTO SPRING 2017 31 LEARN
Consulting. As a dedicated volunteer and JONATHAN CHIA, BCOM ’01, of DAVID GORDEY, BCOM ’03, of board member for the Terra Centre, she Edmonton, was promoted to president Edmonton, was appointed executive has helped raise funds to construct a new and CEO of Maclab Properties Group. vice-president and COO of Liquor building to provide direct services for teen- Stores N.A. age parents, house an infant daycare and WAYNE KOSIK, MBA ’02, of Fort accommodate Terra’s administrative staff. McMurray, Alberta, was named the JASON DING, BCOM ’04, of Edmonton, 2016 Engineering Fellow. The Engineers Alberta, executive-in-residence at TEC MICHAEL LOENEN, MBA ’00, of Zions- Canada Fellowship recognizes Profession- Edmonton, was named one of Avenue ville, Indiana, left his position of ACES al Engineers and non-English engineers magazine’s Top 40 Under 40 for helping Power Marketing’s director of origination, who have made an outstanding contribu- fledgling biotechs take off in Alberta. after 16 years, to become senior renew- tion to the engineering profession through ables developer at NRCO, a company that their professional accomplishments. MARIA ALEJANDRA DE LA PUENTE, promotes and facilitates the development He was also the recipient of the 2016 MBA ’05, joined EMx Capital Strategies, of renewable energy resources. Geoscience Fellowship, which honours LLC as Managing Director, Head of individuals who’ve given noteworthy Andean Region, based in Lima, Peru. DENISE NAWATA, BCOM ’00, of Calgary, service to the geoscience profession. partner at Farris, Vaughan, Wills & FAAIZA RAMJI, BCOM ’05, of Edmonton, Murphy LLP, was recognized by RAHOOL AGARWAL, BCOM ’03, of director of marketing for Edmonton Lexpert Rising Stars as one of the Toronto, Partner at Norton Rose Economic Development Corporation, Canada’s Leading Lawyers Under 40. Fulbright, was recognized by Lexpert has been working in franchise environ- An M&A and securities lawyer focused on Rising Stars as one of the Canada’s ments for over 20 years. After growing up cross-border deals and public and private Leading Lawyers Under 40. This presti- with parents who owned Subway Sand- capital market transactions, Nawata’s gious recognition acknowledges Rahool’s wiches restaurants, she opened up the first transactions in the past year include exceptional track record as an emerging Chopped Leaf quick-service restaurant in representing Intrexon Corp., a global leader as well as his drive and commit- Edmonton, in 2011, which she still co-owns. leader in synthetic biology, in its US$40- ment to outstanding client service, his She participated in the Educated Wallet/ million acquisition by plan of arrangement dedication to his firm’s pro bono program, Carrer speaker series hosted by Alumni of Okanagan Specialty Fruits; acting as and his understanding of modern legal Relations on November 15, 2016, speaking BC counsel for the Orion Mine Finance market realities where creativity and on how to start and evaluate franchise. Group in the US$540-million construction innovation are paramount. financing package to advance the Pretium TAYLOR ROLHEISER, BCOM ’05, of Resources mine; and acting as part of Edmonton, chartered accountant at the deal team that represented Tekmira Having those people KPMG LLP, was a regional recipient Pharmaceuticals Corp. in a US$750- who are willing to of the 2016 KPMG Community Leader million merger with Oncore Biopharma, Award for accountants with deep con- Inc., to create a global leader focused on race with me and deal nections in their communities and who an oral cure for hepatitis B. She’s also an are making positive impacts. adjunct professor at UBC’s Sauder School with my competitive of Business, helping design an inaugural nature is what helps to ROSS WILSON, BCOM ’05 (below, centre), course on international mining law. of Sherwood Park, Alta., won a silver motivate me.” medal in the men’s C1 3000-metre indi- DANIEL MCELENEY, BCOM ’00, of Ross Wilson, BCom ‘05 vidual pursuit final in cycling at the 2016 Edmonton, co-founder of Gfycat, a start-up that has built its business on the silent looping image files, has raised $10 million to turn its already popular site into a revenue-generating platform. The company has amassed 75 million monthly active users, who watch a stag- gering 1.5 billion user-generated GIFs and clips each month on its website.
TREVOR POAPST, BCOM ’01, of San Jose, California, is vice-president of marketing and sales at Riva CRM Integration. The company placed number one on Alberta Venture’s 2017 Fast Growth 50 list. Riva helps companies improve customer relationship management adoption and satisfaction,
PHOTOS SUPPLIED BY ROBERTA MACGILLIVRAY AND CRAIG PATTERSON CRAIG AND MACGILLIVRAY ROBERTA BY SUPPLIED PHOTOS WILSON ROSS BY SUPPLIED PHOTO and drive sales productivity. LEARN 32 ualberta.ca/business
Deepa is a CPA and a Chartered Business Valuator and President of the Alberta School of Business Alumni Association.
KAREN YOUNG, MBA ’09, of Edmonton, shifted to a new role as executive direc- tor of engagement at Alberta Climate Change Office with the government’s creation of their new climate change policy. She also competed in the 2016 INBF Canada Pro/Am Intercontinental & Western Naturals Bodybuilding and Fitness competition and placed third in the Figure Tall category. Her husband JOHN YOUNG, MBA ’15, is president and CEO of OML Construction Group.
2010s
MICHAEL AUSFORD, BCOM ’11, of Edmonton, recently received a third pro- motion as web design and SEO company Top Draw’s online marketing team lead.
KATE LATOS, BCOM ’08, MBA ‘11, of Sylvan Lake, Alta., finance advisor at Retire First, was the winner of the inaugural School of Business Alumni Association Innovation Challenge on September 24, 2016 (PAGE 28). Kate’s seed stage business idea, EcoFence, won the $10,000 prize and year-long mentorship. EcoFence replaces common vinyl fence panels with recycled waste material, a new method that will require minimal upkeep, is stain resistant, does not leak harmful chemicals and is a lower price point than traditional fencing materials. This competition was held in celebration of the School’s centennial, inviting individuals and teams to present a seed-stage social enterprise idea to an adjudication panel of business and com- munity leaders. Rio Paralympics. “I’m just a guy who working on applying a proprietary busi- likes to try his best at stuff,” Wilson told ness system to Petro-Canada retail sites CHRISTOPHER DENNEHY, BCOM ’12, CBC News. “Having those people who across Western Canada. of Red Deer, joined Gowlings WLG as are willing to race with me and deal with Associate. my competitive nature is what helps to SHAWN KANUNGO, BCOM ’07 (above), motivate me.” of Edmonton, senior manager of Deloitte BARTEK KIENC, MBA ’13, of Calgary, & Touche LLP, was named one of founded the Canadian Energy Infra- JORDAN BLATZ, BCOM ’06, of Oakville, Avenue magazine’s Top 40 Under 40 structure Corporation in 2016. CEIC is a Ont., senior sales coordinator at Suncor for looking at disruption in industry Canadian advisory firm serving leading Energy Services Inc, was inducted to as an opportunity to innovate, and energy companies, First Nations and École Camrose Composite High School’s sharing his passion with businesses governments. Bartek’s wife BERENIKA Wall of Fame for distinguished faculty of all kinds. Shawn and his wife DEEPA KIENC, MBA ‘15, also started a new and alumni. The former president of MAISURIA, ‘07 BCOM, became proud position last year as manager of enter- UAlberta’s Student Union, he had a parents of baby Maya Maisuria prise planning and performance man-
promising career in the energy sector Kanungo born on September 24, 2016. agement at Alberta Energy Regulator. COMEAU) CURTIS KANUNGO(BY SHAWN BY SUPPLIED PHOTO GIRARD) RYAN (BY LE JOSH AND KUCHMAK JESSA BY SUPPLIED PHOTOS SPRING 2017 33 LEARN
IN MEMORIAM
JOHN REGINALD GERLITZ, BCOM ‘54, Calgary, Alta.
DAVID MORLEY ABOUSSAFY, SR., BCOM ‘60, Kamloops, BC
BOB O’HARA, BCOM ‘60, Edmonton, Alta.
GEORGE HENRY MARTIN, BCOM ‘60, Gatlinburg, Tenn.
FREDERICK EARL LAMB, BCOM ‘63, Guelph, Ont.
RICHARD WILLIAM PICKFORD, BCOM ‘66, Calgary, Alta.
W. DAVID WOOD, BCOM ‘66, on October 9, 2016. A good number of their Sherwood Park, Alta. SANDRA PETERSSON, MBA ’13, of 320 guests were business graduates. The Edmonton, was appointed Executive Kuchmak’s honeymooned on the island of RANDOLPH HAYWARD, BCOM ‘70, Director of the Alberta Law Reform Borneo, Malaysia. They are both members Gabriola, BC Institute in the Faculty of Law. of the Business Alumni Association Board. STEVE PETER BERES, BCOM ‘74, NATALIE PON, BCOM ’13, of Edmonton, JESSICA IRELAND, BCOM ’14, of London, Calgary, Alta. senior accountant of audit at KPMG LLP, U.K., accepted a position as university was a regional recipient of the KPMG relations manager at MyKindaFuture, an THE HON DR JIM PRENTICE, BCOM ‘77, Community Leader Award for accountants award-winning social enterprise that ex- Calgary, Alta. with deep connections in their communi- ists to kick-start young people’s careers. ties and who are making positive impacts. Prior, Ireland was a campaign executive ROBERT ALAN SCOTT, BCOM ‘79, with the company. Calgary, Alta. QASIM RASI, MBA ’13, of Sherwood Park, Alta., director, strategic markets of ATB JEN PANTELUK, BCOM ‘03, MBA ’14, MARGARET SIU-LING YAN, MBA ‘80, Financial, was named one of Avenue of Edmonton, president and CEO of Sherwood Park, Alta. magazine Top 40 Under 40 for bringing Junior Achievement (Northern Alberta a diverse background of academia, Hol- & NWT), was named one of Avenue JOHN TUCKWELL, BCOM ‘84, lywood and business knowledge to ATB magazine’s Top 40 Under 40. She’s Edmonton, Alta. where he supports Alberta’s manufactur- helped Junior Achievement nearly ing industry. double its regional reach. PETER TOTTRUP, MBA ‘86, Calgary, Alta. JOSH LE, BCOM ’15, of Montreal, Quebec (above right, with business partner Nik SUSAN MICHELLE SHERIDAN, BCOM ‘87, Sereditch), recently took the entrepre- Edmonton, Alta. neurial plunge after 18 months with Naked & Famous Denim to start wool JAMES FREDERICK WALKER, BCOM ‘88, + suede, a proudly Canadian brand of Edmonton, Alta. stylish winter gloves. Its November 2016 Kickstarter campaign reached its $10,000 CYNTHIA CHARLENE WYNNYK, BCOM ‘90, goal in under 24 hours. Edmonton, Alta.
JESSA KUCHMAK (NÉE ACO), BCOM ’14 KYLE SMITH, BCOM ’16, of Stony Plain, COLIN MICHAEL PILIPCHUK, BCOM ‘99, (above, centre), of Edmonton, accepted Alta., and Spruce Grove natives Greg Edmonton, Alta. a position with Gateway Mechanical Wolff and James Jackins, are in the Services as continuous improvement process of developing 30 Before Thirty, TREVOR JASON NICKEL, MBA ’06, lead for Western Canada. On a more a mobile app for young people to track Edmonton, Alta. personal note, Jessa and JUSTIN KUCH- new experiences and connect with MAK, BCOM ‘13, who is a media director others who have similar life goals on
PHOTO SUPPLIED BY SHAWN KANUNGO (BY CURTIS COMEAU) CURTIS KANUNGO(BY SHAWN BY SUPPLIED PHOTO GIRARD) RYAN (BY LE JOSH AND KUCHMAK JESSA BY SUPPLIED PHOTOS at F-Media and Carto Media, got married their bucket lists. LEARN
THE CORNER OFFICE VIEW
as told to photographer ELYSE ALLAN Angela Johnston Neil Mota OF GE CANADA
…ON GOING GREEN
ELYSE ALLAN, PRESIDENT and CEO of GE Canada, is a major What do you think the future of renewable energy will look player in the 125-year-old corporation’s green transition. like in Canada? Recipient of the 2017 Canadian Business Leader Award from EA: Close to 70 per cent of our electricity in Canada is already the Alberta School of Business, Allan’s leadership has also been renewable. We’re different than so many other parts of the recognized through her appointment to the Order of Canada. world, but we don’t advertise how clean we already are in our Here she reflects on GE’s Ecomagination initiative to reduce electricity production. Where we have to continue to invest and products’ environmental impact—from low-emissions locomo- stay smart is around the effective transmission and distribution tives to digital technology for wind energy and more—and of that energy. The addition of distributed renewables makes offers insights on what clean tech means for business. it much harder for the grid to stay stable and reliable, so while you’re investing in renewables, you have to make sure you’re When did GE begin to really focus on creating continuing to invest in base load [power stations capable of green technologies? meeting minimum demand consistently] for the renewables, EA: Over a decade ago, GE pursued this idea of Ecomagin- and you also have to invest in your grid technology. ation, and it exceeded every expectation we had for positive and long-lived results and learning. Could we actually focus How can Alberta benefit from technologies that reduce on the environment, and would people buy these more environmental impact without decreasing economic growth? innovative products that were new to the market but were EA: There’s a tremendous amount of technology and technical green? Could we make them better operationally and at the capability being vetted across the province. One of Alberta’s same time greener? Ecomagination showed us that we could. best advantages is continuing to develop that [energy-related] technology, because around the world, people will continue using fossil fuels for many years to come. It’s all about asset perfor- mance management and understanding, through data and digital technology, the performance of the hardware. Using big data ana- This interview has been edited for length and clarity. lytics to understand how you might run things better tomorrow. DEAN’S OFFICE PROGRAMS DEPARTMENTS CENTRES
Joseph Doucet UNDERGRADUATE (BCOM) ACCOUNTING, OPERATIONS Alberta Business Dean 780-492-5773 AND INFORMATION SYSTEMS Family Institute
Lloyd Steier Elaine Geddes Karim Jamal Vice Dean Associate Dean Chair Centre for Applied Business Andras Marosi Research in Energy and Kyle Murray Incoming Associate Dean the Environment Incoming Vice Dean FINANCE AND STATISTICAL (July 1, 2017) (July 1, 2017) ANALYSIS Canadian Centre for Ken Crocker Vikas Mehrotra MASTERS (MBA, EMBA, Corporate Social Assistant Dean, Advancement Chair MFIN MGMT, MACC) Responsibility Heather Newton 780-492-3946 Executive Director, Michael Maier MARKETING, BUSINESS Canadian Corporate Marketing & Communications Associate Dean ECONOMICS, AND LAW Governance Institute Trevor Mireau Rasmus Fatum Director, Finance & Chair PHD AND RESEARCH Centre for Effective Administration 780-492-5816 Business Management of Addiction Treatment David Deephouse STRATEGIC MANAGEMENT Associate Dean AND ORGANIZATION Yonatan Reshef Centre for Chair Entrepreneurship and EXECUTIVE EDUCATION Family Enterprise Marvin Washington 780-492-5832 Incoming Chair Heather Christensen (July 1, 2017) Centre for Excel lence in Associate Dean Operations
INTERNATIONAL PROGRAMS Centre for International 780-492-4895 Business Studies
Edy Wong Associate Dean School of Retailing
Technology Commercialization Centre
www.ualberta.ca/business 1