MAY/JUNE 2013 Down with Bank Shares Planning Like a Pilot Blending IT Systems Four Tech Predictions

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MAY/JUNE 2013 Down with bank shares Planning like a pilot Blending IT systems Four tech predictions

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CMAC039 - Editorial_1.indd 2 4/12/13 9:13 AM ® EDITORIAL

VOLUME 87 NUMBER 3

MAY/JUNE 2013

TM CICA and CMA Canada joined together on Jan. 1, 2013, to create CPA Canada as the national organization that supports unification of the Canadian accounting On the eve of putting this profession under the CPA banner. CHARTERED PROFESSIONAL ACCOUNTANTS issue to bed, I attended a OF CANADA 1400 – 1 Robert Speck Pky. Mississauga, ON L4Z 3M3 workshop on experiencing (905) 949-4200 www.cpacanada.ca and creating change. EDITOR-IN-CHIEF Mara Gulens Constant change may be the new normal, but it’s still (905) 949-3126 [email protected] something that keeps us up at night. I took part in the work- CONSULTING EDITOR shop as much to take this issue of the magazine full circle as Kim Pittaway to pick up some tips for myself. COPY EDITOR It’s no secret that this is a time of massive change for R. Franklin Carter Canada’s accounting profession. On April 1, we became the DESIGN & PRODUCTION Hambly & Woolley Inc. Chartered Professional Accountants of Canada. What (416) 504-2742 does that look like? What’s in store on this next leg of the www.hamblywoolley.com unification journey? TRANSLATION SERVICES But that’s just one of many transformations tick-tocking us Michelle Gosselin, Richard St-Pierre, Ruth Samson, Geneviève Tremblay through life. If you’re not feeling change in your professional MARKETING & COMMUNICATIONS or personal life, then consider the weather, the economy and Cindy Ruocco technology. Change is everywhere. RESEARCH And managing change can be tricky. Andrea Civichino Hence the workshop. At the beginning of the session, each CONTRIBUTING WRITERS of the group’s participants selected an image of a gateway. Sharon Aschaiek, Gabrielle Bauer, Anne Bokma, Patrick Buckley, Jennifer Dawson, Lindsay Hay, Then, over a few hours, we explored what that gateway might Jaclyn Law, John Lorinc, Michelle Singerman, symbolize, what might lie beyond it, and how it might feel Duncan Stewart, Jacob Stoller crossing to the other side. ADVERTISING ACCOUNT EXECUTIVES By the end of the exercise, we had changed our perceptions. Online Magazine Marketing 118 Dairy Dr., Toronto ON M1L 0E9 In my case, a big daunting door became a tiny one. I was Martin White oversized Alice, taking it all in stride. (416) 726-7435 [email protected] Gwen Dunant And I couldn’t get the word “gratitude” out of my mind! (416) 778-4954 [email protected] I had this profound understanding that when we’re present Fax: (416) 778-4954 and strive toward our goals, we can arrive at a new threshold, CIRCULATION & ADMINISTRATION For general inquiries and changes of address, contact Suzanne Maunder be thankful, and proceed to the next challenge. at (905) 949-3127 or [email protected]. That was my insight; other participants deconstructed CMA magazine is published six times per year by the Chartered Professional Accountants of Canada (CPA Canada). Published articles and their experience in different ways. Some named their fears. advertisements do not necessarily reflect the views of CPA Canada. Others discovered that their focus was misplaced. © 2013 Chartered Professional Accountants of Canada. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or And that’s the thing about change: we each bring our own transmitted in any form or by any means without the prior written consent of Chartered Professional Accountants of Canada or a licence from Access lens to the experience. Copyright. For a licence, visit www.accesscopyright.ca or call 1 (800) 893-5777. What’s your lens? Whether you’re managing your career SUBSCRIPTIONS Canadian residents: $15 (plus applicable tax) or making it through a merger, we hope this issue will inspire U.S. residents: US$40 (U.S. funds only) and inform you. We want to help you look at change in ways UNDELIVERABLE MAIL that allow you to make the most of the experience. Canada Post: Send undeliverable mail copies of CMA magazine to 1400 – 1 Robert Speck Pky., Mississauga ON L4Z 3M3 Enjoy the issue, and please let us know what you think! Products and services identified in CMA magazine are neither sponsored nor endorsed by CPA Canada or its affiliates. For more information on these products and services, please contact the advertisers directly.

Printed in Canada by Ironstone Media. www.ironstonemedia.com

Canadian Publications Mail Product Sales Agreement # 40064728 Postage Paid in Toronto Indexed in Canadian Periodical Index ISSN 1926-4550 Mara Gulens Editor-in-Chief [email protected] www.twitter.com/cmamagazine credit tk credit

CMA MAGAZINE May/June 2013 3

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CMAC039 - Contents_1.indd 4 4/12/13 9:23 AM 19

31 26

Contents MAY/JUNE 2013

FEATURES DEPARTMENTS 6 FEEDBACK 19 CULTURE CLASH Your merger looks good on 8 NOTEWORTHY paper. But will the marriage work? By John Lorinc COLUMNS 23 TWO TO ONE Glen LeBlanc, FCMA, on how Bell Aliant survived and thrived after merging. As told to 14 CONVERSATION Sharon Aschaiek With economic strategist Barry Ritholtz

25 CHANGE IT UP! Four great reads on fostering 36 TECHNOLOGY innovation in your workplace. By Jaclyn Law Merging information assets

38 SPOTLIGHT 26 PACK YOUR OWN PARACHUTE How to land Life support a job you’ll love. By Anne Bokma

28 GAME CHANGERS Four big issues CMAs can’t afford to ignore. By Jennifer Dawson

31 FOUR WARNED Tech predictions from Deloitte. By Duncan Stewart

34 WHAT I’VE LEARNED Five CMAs discuss their journeys through personal and professional transformation. By Michelle Singerman

WWW.CMAMAGAZINE.CA CMA MAGAZINE May/June 2013 5

CMAC039 - Contents_1.indd 5 4/12/13 9:23 AM FEEDBACK Will that be for here or to go?

The demand for electronic versions of THE VOICE OF MANAGEMENT ACCOUNTING WWW.CMAMAGAZINE.CA

printed publications is increasing. Reading MARCH/APRIL 2013 Challenging teams Spring conference calendar information while you’re on the go is convenient, Renewing a lease? Watch out! Winning at Atlantic Lottery but there’s still something to be said for a good, slow read of a book or magazine. Which method do you prefer?

Are there any plans to make CMA magazine available via Apple’s Newsstand application? I ﬁnd reading materials on the iPad easier than Held to account A business case forSecret ethics formula: reading them in print. And is there a timelier way to get the PDF version Measuring intangible assets A new path: What you need to know about the of the magazine, such as when I get the print version? new CPA Competency Map

— David Rostoker, CMA Maple, Ont.

Our response: A few days after it’s mailed Note: On page 3 of the January/February out, CMA magazine can be downloaded in issue of CMA magazine, the CPA designa- What do you think? iBooks. Subscribe to e-alerts on the CMA tion is misidentiﬁed. The initialism stands What are the biggest magazine site for timelier access. for Chartered Professional Accountant.

attractions of You present a succinct article (“A Path of working abroad? Its Own: The New CPA Competency Map,” Be prepared March/April 2013) that highlights the a) experiencing work and life in coming transition. I’d be interested in You said effective and efficient a new place knowing more about what the transition organizational transitions require b) finding opportunities unavailable looks and feels like for existing and elsewhere soon-to-be CMAs and how the educa- a) smooth coordination by all 60% c) establishing valuable connections tional systems are changing to support departments involved. d) returning home with a the transition to a single designation. b) being mentally prepared for 20% competitive resumé — Barry Kent, CMA, Ancaster, Ont. the necessary change. c) quickly establishing an 10% Respond online at Richard Fontaine and Mara Gulens identity within the new role. www.cmamagazine.ca provided a good overview of the CPA d) Organizational transitions are 10% Competency Map and certification never easy. process (“A Path of Its Own,” March/April 2013). Highlighting the similarities CMA welcomes between the new CPA qualification process letters to the editor and the existing CMA process made the Contact us at new qualification more relevant to current [email protected] or CMAs. It’s also useful to non-CMAs as we www.twitter.com/cmamagazine. focus more on our professional similarities. Join us in the LinkedIn group named It will be interesting to see how the Here’s what you had to say: Certified Management details work themselves out and how * “A, B and C are all required. However, an Accountants of Canada. everyone adapts to changes in the effective change management strategy training process. is necessary for a successful transition Letters may be edited for clarity and brevity. — Andrea Lee, CPA, CA, Toronto, Ont. within the organization.”

6 CMA MAGAZINE May/June 2013

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CMAC039 - Feedback_1.indd 7 4/12/13 9:16 AM CMAC039 -Noteworthy_1.indd 8 8 News andnumbers NOTEWORTHY rethinking retirement Nearly 4in10 CFOs VIEW FROM THE C-SUITE Catalyst’s reportathttp://bit.ly/YZoOHi. women boardmembersatall. women. Forty-three percentoffirmshadno on theS&P/TSX CompositeIndexin2011 were that only11percentofboardmembersfirms Special Report,releasedinMarch2013. Itreveals since Catalyst’s last reportappeared,in2010. The resultsrepresentamarginalimprovement (15.0 percent)andcreditunions(11.3cent). (20.6 percent),publiclytradedcompanies (27.0 percent),followed by privatecompanies portion ofwomenofficersandtopearners group.advocacy released inFebruary by Catalyst, awomen’s no womeninseniorofficerroles, says astudy Thirty percentofCanadiancompanieshave corner office, board room Women missing from WOMEN AT WORK of 270 Canadian CFOs, March 2013. Source: Robert HalfManagement Resources survey in thelast five years? How, ifatall, have your retirement planschanged 51% Read TD’s reportathttp://bit.ly/XYbHUt and A similarstory istoldinaTDEconomics Crown corporations havethehighest pro- CMA MAGAZINE May/June 2013 Don’t know/No answer Not atall. intended five years ago. I plantospendfewer years working than Ihad intended five years ago. I plantospendmore years working thanIhad when I’llretire. I have more uncertainty andcan’t predict 14% 16% 8% 11% http://bit.ly/12JQmVa. compete oncustomization. consumer instincts to won’t have theflexibility and of highshippingcosts, and to compete onprice because Its factories willnotbeable of theworld,” D’Aveni says. manufacturing powerhouse up onbeingthemass- will bemadewhenrequired. in thelongrunbecause they produced goods willbecheaper costs are higher, these locally turing plant. Even iftheunit city willboast acar manufac- tweak of software andevery will becustomized withaquick external suppliers, products own parts instead of relying on when factories willmake their around theworld. have onbusiness locally and the impact 3-Dprintingwill 2013, offers anexciting lookat published onlineinMarch Harvard Business Review Richard D’Aveni’s piece inthe technology isawhileoff, but demand andonthespot. and you can create objects on ware, enter your design specs, resin, addsophisticated soft- Replace toner withplastic make itsmark 3-D printingwill TECH TALK Read the fullarticleat “China willhave to give D’Aveni predicts atime Mass application of the 3-D! 3-D! , PROFESSIONAL RESOURCES YtRHIB. at yourconvenience athttp://bit.ly/ influence oftheenvironment. the impactofturbulenceand (strategic, portfolioandoperational), learn aboutthethreetypesofagility presented by Brett Knowles. You’ll and Resilience,” afreewebinar you doit? that statement mean?Andhow do is akeytosuccess. Butwhatdoes survey, 9in10executives say agility toaMcKinsey Quarterly According Agility 101 http://bit.ly/YqyFTk. “dead cashtax.” institute arguesstrongly against a equipment orsoftware.But the ments suchasmachineryand in productivity-enhancing invest- companies tospendtheexcess cash offer taxcreditsthatwillencourage to asks theCanadiangovernment economic opportunity. Theinstitute Life paper, Competiveness &Prosperity. $45 billion,says theInstitute for and cashequivalents—asmuch on anall-time-highlevelofcash Canadian corporationsaresitting back tolife Bring dead cash Dear government: FED FILES The webinar itself is agile; watch it The webinaritselfisagile;watchit Sign upfor“Organizational Agility Download the white paper at Download thewhitepaperat The institute’s March2013 white , decries this situation as a lost , decriesthissituationasalost Bringing “Dead Cash” Back to Bringing “DeadCash”Backto 4/12/13 9:16 AM

© Josh Laverty / iStockphoto CONSUMER TRENDS WATERCOOLER WISDOM We’d rather save New tools for mental health for a holiday in the workplace One in ﬁve Canadians will experience a mental illness at some point. The Unretired Canadians who fear ﬁnancial hardship Mental Health Commission of Canada (MHCC) predicts this fact will cost in retirement Canadian businesses $198 billion in lost productivity over the next 30 years. A new national standard for psychological health and safety in the work- 55% place provides program and policy tools to identify psychological hazards in the workplace, assess and control those that can’t be eliminated, implement practices that support mental health and measure progress. Unretired Canadians who prioritize saving for The standard was developed by the MHCC, the Canadian Standards a holiday over saving for retirement Association and Bureau de normalisation du Québec. Access the free download at http://bit.ly/WlY047. 41%

BOOK REVIEW Source: HSBC, The Future of Retirement: A New Reality, February 2013. Download the study at Dare to ask http://bit.ly/YqJchx. As toddlers, we ask why. As we grow up, we focus more on ACCOUNTING WORLDWIDE answers. Amanda Lang, senior business correspondent for IFAC surveys reveal top the CBC and co-host of The issues for accountants Lang & O’Leary Exchange, has The International Federation of Accountants experience asking tough ques- (IFAC) has its finger on the pulse of the account- tions. In her book The Power ancy profession, and it’s beating fast when it of Why, she promotes asking comes to the economy. why, just as we did when we IFAC surveyed 113 accountancy leaders from were children. 72 countries in its 2012 Sixth Annual Global Lang explains how asking Leadership Survey, published in February. questions — without worrying Respondents identified their top five concerns: about the outcome — promotes innovation and leads to success. • the needs of small and medium-sized practices For example, when Canadian Tire noticed a decline in the number of • the reputation and credibility of the profession male shoppers, the company didn’t ask why men were not coming into the • issues related to the European Union store. Instead, the company asked, “What is a man, anyway?” Canadian Tire draft legislation explored what men wanted and addressed the cause of the problem, instead • public sector financial management and of the symptom. sovereign debt Lang also discusses how some of the best products come from incre- • the difficult financial climate mental improvements to existing products. She mentions Sean Moore who created the curved shower rod. Although Moore set out to market the rod to Practitioners of small and medium-sized people who owned round bathtubs, he succeeded because he understood companies spoke for themselves in an IFAC poll the benefit of keeping the curtain away from people regardless of the curve in late 2012. Their top four issues? of the tub. Lang thinks most of us have a “status quo bias” and are set in our ways. • keeping up with new regulations and standards She believes we sometimes need to hit Ctrl-Alt-Delete. By rebooting our • attracting and retaining clients brains and erasing what we think we know, we can better understand and • the pressure to lower fees analyze situations to determine the reasons behind different outcomes. • rising costs While reading through these and other cases, readers will become moti- vated and begin asking why. View the IFAC SMP Quick Poll at http://bit.ly/ Author: Amanda Lang 12KrV5I. Check out the global leadership survey Publisher: HarperCollins at http://bit.ly/XqIPd4. Reviewer: Lindsay Hay, CMA

CMA MAGAZINE May/June 2013 9

CMAC039 - Noteworthy_1.indd 9 4/12/13 9:16 AM NOTEWORTHY

BOOK REVIEW BOOK REVIEW Making happy Forward One way to communicate your corporate commitment to through change Most organizational changes are happiness is to include the word technical and can be handled by “happy” in the name of your experienced leaders who apply company, products or services. existing skills and processes. Geoff Bernd Schmitt points out several Aigner’s Leadership Beyond Good examples, but recommends a more Intentions: What It Takes to Really enlightened path to pleasure in Make a Difference looks at the more Happy Customers Everywhere. challenging process of adaptive change. Schmitt’s three approaches are highlighted in the PME (plea- Leadership Beyond Good Intentions presents a world where sure, meaning, experience) model of happiness which is based on leaders need to come out of their comfort zones, be humble and findings from the rapidly growing field of positive psychology. admit to not knowing what they’re doing. Aigner, who is director of Social Leadership Australia and • Pleasure: immediate satisfaction derived from eating candy teaches change and leadership at the Australian Graduate or impulsively buying a new gadget School of Management, divides the study of adaptive change into three parts: • Meaning: living in accordance with one’s values by purchasing “green” products or gaining personal insight • leaders and fulfillment by doing yoga • other people • the system in which they work • Experience: becoming absorbed by playing a video game, or cooperating with others so that your team can scramble The system is a conservative, inhibiting force when it slows down over a high wall in an urban race real change and supports fantasies such as the promotion of “saviors” and promises of quick fixes. More effective leaders work Each concept is well explained and linked to case studies, many for adaptive change by being non-judgmental and neutral, but of which Schmitt wrote as a business professor at Columbia also by retaining their passion. Effective leaders collaborate University and based on his studies in evolving Asian markets. with “other people” whom the leaders realize may betray them. In the later chapters of Happy Customers Everywhere, Schmitt In Leadership Beyond Good Intentions, Aigner describes expands his initial focus on B2B and B2C relationships to include the highs and lows of adaptive change and urges leaders to the happiness of employees in “authentizotic” organizations move forward. which promote feelings of enjoyment, meaning and belonging. Author: Geoff Aigner Author: Bernd Schmitt Publisher: Allen & Unwin Publisher: Palgrave Macmillan Reviewer: Patrick Buckley, CMA, PhD Reviewer: Patrick Buckley, CMA, PhD

HR MATTERS CFOs hot on temps

Percentage of CFOs who say temporary professionals are “somewhat” or “very” beneﬁcial in these instances

To maintain productivity when we’re not ready to hire full time 90% 89% 87% 85% 82% To evaluate prospective full-time employees ﬁrsthand To ﬁll in during employee absences To lessen the workload of full-time staff To access specialized skills as needed

Source: Accountemps survey of 116 Canadian CFOs who use temporary workers, February 2013.

10 CMA MAGAZINE May/June 2013

CMAC039 - Noteworthy_1.indd 10 4/12/13 9:16 AM one vision one direction one goal one national organization

CPA CANADA

CMAC039 - Noteworthy_1.indd 11 4/12/13 9:16 AM NOTEWORTHY

UNIFICATION All together now KEY LINKS April 1, 2013, was the big day. It marked the beginning of the first fiscal year of the Chartered Professional Accountants of Canada (CPA Canada) and the official launch of the national To see the new CPA landing page, visit www.cpacanada.ca. CPA organization. Unification buzz is building with announcements of To understand what unification means to you specific branding and communication initiatives. They’ll personally, visit www.cpaone.ca. make it easier for you to stay informed and start benefiting from unification. A strategic initiative of the Canadian Institute of Chartered Accountants (CICA) and CMA Canada, CPA Canada is the new, national organization representing chartered professional accountants (CPAs) in Canada. It also provides services to legacy CAs and CMAs. Now that the operations and assets of CICA and CMA Canada have been transferred to CPA Canada, it’s time to focus on creating an identity and spreading the word. First CPA Canada’s new logo incorporates the iconic maple leaf. up is CPA Canada’s new logo which represents the strength, prestige, trust and authority of Canadian professional accountants. CPA Canada also has a new website landing page; a new, fully functional member website will launch in January 2014. Membership has benefits CMA Canada’s e-newsletter, CMA Canada News, has been relaunched as CPA Today and is distributed to all CPA Canada members. More letters after your name. As provincial Cross-country checkup governments pass CPA legislation, members may use Here’s a roundup of news items that have appeared since the the letters CPA, CMA. Check with your provincial body for publication of our last issue: more information. • Saskatchewan’s CMAs and CAs issued a report to govern- More CPLD. You’ll eventually have access to post- ment that details the results of their merger consultations designation specialty programs. and recommendations. Soon afterward they signed a unification agreement. More recognition. You’ll maintain the benefits of CMA • In late March, Nova Scotia’s CMAs and CAs announced Canada’s three existing mutual recognition agreements that their respective board and council had voted to and benefit from new agreements with CA, CPA and other pursue a merger agreement and adopt the new CPA professional accounting bodies around the world. certification program. • Manitoba’s CMAs and CAs signed an agreement to pursue More connections. You’ll increase your opportunities to a merger and establish CPA Manitoba. network with accounting professionals across the country. • CGA-BC’s board of governors announced that they were re-entering merger discussions with B.C.’s CMAs and CAs. More clarity. When you have a CPA designation, your • Newfoundland and Labrador’s CGAs voted for a merger clients, partners and other stakeholders will find it easier proposal. to understand what you do and how you add value. • The new CPA Canada bylaws were released. They include Article 4 — Protection of Legacy Rights. See More protection. It’s a competitive world. The CPA http://bit.ly/102REaB. designation is your best way to enhance and protect your value as an accountant. To receive updates on the progress of CPA unification, visit http://cpacanada.ca/blog/category/news/.

Noteworthy is compiled by Jennifer Dawson and Mara Gulens with assistance from Patrick Buckley, CMA , and Lindsay Hay, CMA.

12 CMA MAGAZINE May/June 2013

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CMAC039 - Noteworthy_1.indd 13 4/12/13 9:16 AM CONVERSATION

Economic strategist Barry Ritholtz explains why his clients don’t own bank shares

By Gabrielle Bauer

Q: What did you think of all the hoopla surrounding the ﬁscal cliff?

A: That was the biggest piece of media hype since Y2K, and Q: How should the United States approach its debt? pure silliness. There was no such thing as the fiscal cliff. A: You can’t credibly tackle the debt without reducing Even if the so-called cliff hadn’t been “averted,” it would have deficit spending and increasing taxes. This means reducing eroded only 0.25 to 0.75 per cent of GDP — a minor sting, but entitlements. Social security is a necessary service, but not a catastrophe. eventually the retirement age will kick up. We also need broad-stroke measures to keep health costs down. It’s clear Q: How has the banking landscape changed since the that health care doesn’t lend itself to market forces. We need meltdown of 2008 – 09? to learn from countries such as Germany, England and A: We now have a much greater concentration of assets — Japan which have managed to get better results at less cost over 50 per cent — in large banks. That’s not healthy. You with efficient single-payer systems. can’t be so gargantuan and expect to manage risk properly. Some guy sitting at a trading desk in London can make you Q: Will commodity trading be a good source of invest- lose $7 billion dollars in one shot. ment in the next five to 10 years? The bailouts didn’t change the banks. Transparency of A: Emerging markets are interesting right now, and accounting is worse than ever, so none of my clients own bank dividend-paying assets are very big overseas. I’m looking shares. The solution is to create more small banks rather than for a vehicle for jumping into China. bail out the larger institutions. Q: How would you describe housing in the United Q: Is there a real risk the massive U.S. debt will lead the States, almost four years after the mortgage crisis? nation to bankruptcy? A: The “recovery” is an artificial boom driven by abnormally A: I’ve been hearing this my entire adult life, and I’m 51. If low interest rates. You can still get a 30-year mortgage for people are really afraid the country is going bankrupt, why under 3.5 per cent. If interest rates were normal — that is, are they lending money to the U.S. treasury at 1.7 per cent around 4 per cent — mortgages would be at 6.5 or 7 per cent. interest? The Constitution guarantees full faith and credit The boom would go south. with the U.S. dollar. We have a printing press and our own currency, and can pay our bills that way. It’s true that the Q: If you were in charge today, what would you do? dollar may go the same route as the peso did — that’s the A: I would take advantage of today’s low interest rates and fallout from not treating revenue versus expenditures invest in infrastructure. The U.S. road and airport system is responsibly — but we won’t go bankrupt. a national embarrassment. I would also reissue a 30-year treasury bill, so the debt could be financed at the cheapest Q: What do you think about implementing austerity level and longest possible term. Finally, I would invest in measures to rebalance government budgets? long-term research and development that is too time A: It’s counterproductive to tell people that they’re not consuming and expensive for the private sector. bringing enough tax revenue, so bring in even less revenue. Bush had it backwards. He cut taxes and increased spending Barry Ritholtz is CEO and director of equity research during an economic expansion. We’re supposed to do this at Fusion IQ, an online quantitative research firm. during a contraction. Policy-makers need to go back to basic A former lawyer, Ritholtz writes a column on investing economic principles. for The Washington Post.

14 CMA MAGAZINE May/June 2013

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CMAC039 - Conversation_1.indd 15 4/12/13 9:11 AM We Mean Business

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credit tk

THE CHANGE Issue!

PO WHA

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M CMAC039 -Feature Stories.indd 18 18 CMA MAGAZINE May/June 2013 and exhilarating. It can kick-start and exhilarating.Itcankick-start in the technologies we use, and in in thetechnologiesweuse,and small change in process – and as small changeinprocess– andas professional andpersonallives, big asapromotionormerger! At work it can be as simple as a At workitcanbeassimple asa our “fight or flight” systems. our “fightor flight”systems. Change iseverywhere:inour It canleadus togreatness! the systemsthatdefineus! Change can be frightening Change canbefrightening Pack yourownparachute game changers CULTURE CLASH CHANGE ITUP! four warned TWO TOONE p. 26 p. 28 p. 23 p. 25 p. 19 p. 31

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© Lou Brooks / theispot.com i J&J’s stable ofconsumerproducts. was solelyforthedepartment, not for was entirelyinternal,andthe branding division. Theprocess, Winegardsays, stationery forthefirm’s marketing logos, taglines, mantrasandeven marketing executives devised new a team-buildingsession. division weresenttoNewJersey for company’s combined marketing thousand otherinthenew managers Pfizer. Afterthedealclosed,sheanda hefty sellingprice. capped acompetitive auctionwitha new consumerhealthcaredivision, Johnson. Thedeal,whichcreateda Rolaids andListerine) toJohnson & division (includingbrandssuchas unloaded itsvast consumerproducts deal, pharmaceuticalgiantPfizer corporate cultures in merging different but thereal work comes focus onthenumbers, M&A teams tendto clasH Culture “That’s oneway of bridgingthe Over thecourseofaday, those for Winegard wasabrandmanager Y Y boom. Inthe$16.6 billion deals oftheeconomic one ofthelargestmerger found herselfcaughtupin professor BrynnWinegard University marketing n early2006, Ryerson our merger looks good on paper. paper. on good looks merger our But will the marriage work? work? marriage the will But thought, ‘I’m not surethissuitsme.’” companies.identify withtheirlegacy “I employees continuedto andmanagers everything wedid,” shesays, noting that companies didn’t reallymesh. ing themerger, shefoundthatthetwo out atthenewfirmfortwoyearsfollow- observes. ButwhileWinegardstuck it tribalism thathappens”inamerger, she United States, according to level since2007. Meanwhile inthe 2011, thedollarvaluegrew toitshighest fellslightlyafter number ofmergers a total of$210billion.Although the ity foundmorethan2,800dealsworth report on2012 CanadianM&Aactiv- credit crunch. a sharpdeclineinthewakeof2008 inthepastsurged yearortwofollowing appetite dollardealshas forlarge is theculturalclash,” says Winegard. strategy. “Thebiggeststumbling block (M&A) on mergers-and-acquisitions recent fail,accordingtoa per centofmergers if not inpractice. may lookhighlycompatibleonpaper, more organizationswhosebusinesses ofcombiningtwoor found challenge unusual, anditunderscoresthepro- partially completedishardly mergers The story ofunsuccessfuloronly MEGA DEALS “There wasaremnantoftribalismin A PricewaterhouseCoopers(PwC) Despite thosegrimstatistics, the Historically, between 70and90 Harvard Business Review The New study Goliath swallowing thesmallerfirm.” and adapt thebest practices. Itwon’t be systems andprocesses ofboth firms Lagios. “We decidedtolookatallthe pitfalls thatcanderailmergers, says companies decidedtoavoidthecultural numerous M&As, theleadersofboth partner Tasso Lagios. of agreaterpuzzle,” says managing financial piecewasonlyasmall more client-focusedapproach.“The practice thatpromisestoprovide a to formRichterLLP, a450-employee smaller Toronto-based practice, SBLR, last witha yearre-brandedandmerged accounting andadvisoryconsultancy, example, Montreal’s RSMRichter, an consolidation inrecentyears. For and ing, hasseenawaveofmergers professional servicessuchasaccount- 88 percent. of cancelledorwithdrawndealsfell market peakedin2007, theproportion to $500million).Indeed,afterthe ($100million middle-market range found plentyofM&Aactivityinthe retail, miningandrealestate. PwC infinancialservices,includes mergers energyplays,entails large butalso of U.S. AirwaysandAmerican Airlines. Heinz, andthe$11billioncombination Hathaway’s $23billionbidforH.J. dollar mergers, includingBerkshire ofmulti-billion- have seenasurge York Times BY Having provided adviceabout The servicesector, whichincludes Most oftheCanadianactivity JohnLorinc CMA MAGAZINE May/June 2013 , theearlyweeksof2013 4/12/13 9:15 AM 19 CMAC039 -Feature Stories.indd 20 20 CMA MAGAZINE May/June 2013 T reduce braindrain. ate integrationand approaches toacceler- to focusonthreekey Stearn counselsclients consultant Jonathan too soon.Management details can’tstart to organizational TIPS FORSUCCESS T paying attention but ing through, merging isfollow- he essenceof potential integration challenges. anything thatwilloffer clues about bined leadership shouldlookat and culture. Stearn says thecom- at talentpools, internalprocesses diligence process” thatalso looks should use an “expanded due and financingquestions, firms While most mergers focus onlegal innovative service offerings. firms, oneof whichhaddeveloped the merger of two insurance claims tells of arecent project involving beyond just reducing costs. Stearn ees see apurpose totheprocess Mergers succeed whentheemploy- Collaborate Start early a rl y S

rs f oc us onlega l success stories shouldbestressed. Information aboutmerger-related townhall meetings andsurveys. internal websites, newsletters, a variety of materials, including won’t cutit. Hesuggests creating mass emailsandbulletinsalone share information aboutthemerger; Managers must make every effort to Communicate not just abouteducation.” bottom lineandresults focused, growth. “Have [those sessions] be set hard targets for additional Stearn’s group proposed thatthey had mettolearn thenew products, the combined sales team After themembers of 4/12/13 9:15 AM

Forming Storming Norming Performing In the early stages, Facing downsized After a period of mutual The financial and leadership teams combine responsibilities, employees suspicion, members of organizational promise divisions and try to in the target outfit may rail merged divisions start to of the merger begins to eliminate duplication. They against orders to do things cooperate. Departments deliver. Complementary also search for new ways to differently. “Tribalism” can develop consensus about product lines are now leverage the combined heft take hold as employees side new protocols and systems. supported by unified of two organizations. with managers from their teams, and gains come predecessor companies. from not just cost cutting but also new growth.

MESHING CULTURES mission creep and a loss of focus. An important way to redirect While there’s no shortage of advice on The process “shouldn’t take too employee attention is to establish small how to finance takeovers, management long,” he adds. In one case, Stearn’s operational teams with a mandate experts say the leaders of both organiz- company provided advice in a to look for what Mitchell calls “quick ations must focus not just on slashing multi-billion-dollar deal in which the wins.” Initially, they will likely elimin- costs but also on quickly identifying executives managed to work out the ate overlap, but he says the more strategies for melding their respective mission in a couple of sessions. “It exciting successes will focus on revenue cultures into something new. shouldn’t be something that drags on growth. Such wins “create excitement for months and months.” about the differentiation of the new More than business,” he says. SHARE THE VISION 2,800 M&A deals Will Mitchell, an M&A expert at the THE REAL FUTURE University of Toronto’s Rotman School Yet such forward-looking efforts worth a total of Management, says that advisers may not be as straightforward as the need to push their clients to come consultants let on. Brynn Winegard of $210 billion up with a shared vision. “If you don’t points out that every company has its know what you’re trying to accomplish own protocols — ways of managing occurred in with the acquisition, you’re going to go accounts or deploying a sales team. all over the place.” At the outset of a merger, neither side Canada in 2012. He adds that leaders should make will know, understand or even accept sure they establish clear milestones the other partner’s established ways for the new organization such as a of doing day-to-day operational tasks. In fact, management consultant new approach to sales, new product “You have to outline processes and pro- Jonathan Stearn, a partner at Schaffer launches or entry into new geographic tocols almost before day one,” she says. Consulting LLC in Stamford, Conn., markets. For example, before Pfizer and and co-author of a study published Mitchell points out that the merger Johnson & Johnson merged, Pfizer’s in 2011 in the University of Western will invariably include cost cutting, local brand managers had a lot of Ontario’s Ivey Business Journal, says layoffs and changes in job descrip- autonomy to develop advertising the cost of a poorly executed merger can tions. He stresses that it’s better for the campaigns and used local agencies. J&J, be an exodus of talent, especially from leadership to be forthright about such for its part, maintained tight central- the target company. changes. “If you lie about it, people will ized control over such campaigns. After Early in the merger, the leadership know you’re lying.” the merger, Pfizer’s brand managers team of the combined organization, But the uncertainty associated with had much less authority and more with representatives from both legacy cost cutting can be tempered if the dealings with head office. companies, should hammer out a milestones include growth-oriented Winegard says companies seeking to “merger intent,” says Stearn. The idea is goals. “You hope and want people to acquire competitors should take stock to precisely set down the goals of the view this as an opportunity rather than of these cultural differences before they combined organization to prevent a threat,” he says. make the leap. “The work you do at the

CMA MAGAZINE May/June 2013 21

CMAC039 - Feature Stories.indd 21 4/12/13 9:15 AM front end can save a lot of issues at the back end.” “For a while,” explains Winegard, COMBINING ACCOUNTING SYSTEMS “there’s usually a lack of productivity.” She points out that every company is different, and there’s no set timetable for a merged organization to move from one stage to the next. (See “Merger Milestones,” p. 21.) Some, indeed, never make it. hen two missing functionality, resistance to Jonathan Stearn recalls providing organizations change, and lost productivity.” advice for a takeover. As the acquiring merge,they Stearn suggests avoiding a “big corporation began to assess what WW have to bang” rollout of a major system needed to be done, its leadership team combine numerous in favour of iterative, pilot-tested realized the target company was internal systems, changes. “When people have good actually two divisions that had never including financial experiences, they can become melded well after a previous merger. control and accounting advocates for the changes and To keep the process moving forward, processes. Finding help enlist other users to embrace experts advise companies to establish common Information the system.” milestones and then monitor progress. technology solutions In Richter’s case, the combined That’s how Richter and SBLR are going is less important company adopted that advice about their merger, says Tasso Lagios than building solid with a long-term IT review that will in Montreal. interfaces to other include accounting as well as all After the two practices formally corporate systems other internal information systems merged, the management team came such as human and could take two years. up with a five-year plan and a series of resources and customer “We’ve taken the opportunity quantitative and qualitative metrics for relationship manage- of the merger to redefine how we assessing progress. The team included a ment systems, says continue to support the rest of plan to conduct periodic surveys of the Richter’s Tasso Lagios. the business,” says Richter CFO mood of the firm’s partners and employees. In fact, with most systems Sharka Hamet. “I’m trying not to “That’s especially important for our integrations, the technical tasks have a big bang approach. I don’t firm’s success,” Lagios says. are straightforward, but user want to change things if I don’t experience can turn out to be a have to.” John Lorinc is a Toronto journalist minefield, adds Jonathan Stearn, who writes about business and politics a partner at Schaffer Consulting for Canadian Business, The Globe LLC. “There are risks related to and Mail, The Walrus and other publications. He tweets @johnlorinc.

22 CMA MAGAZINE May/June 2013

CMAC039 - Feature Stories.indd 22 4/12/13 9:15 AM two to one

ow our company survived and HH thrived after a merger

AS TOLD TO sharon aschaiek

Glen LeBlanc, FCMA, is no stranger to business mergers. In his 20-year career in the telecommunication industry, the Halifax executive has twice helped companies unite into a new enterprise. In 1999, LeBlanc helped bring together four telecoms in Eastern Canada to form Aliant Inc. Then in 2006, as the company’s senior vice-president and chief ﬁnancial ofﬁcer, he assisted a merger with Bell, which owned landline operations in Ontario and Quebec. Today, Bell Aliant is one of North America’s largest regional telecommunication providers. LeBlanc, now executive vice-president and CFO of Bell Aliant, and chair of CMA Nova Scotia’s board of directors, discusses here what he learned from his company’s merger in 2006.

hen a company goes the synergy savings and truly under- through a massive change, stand the tremendous potential. there are numerous challenges and a ton of CULTURAL ROADMAP ww information to digest. One of the biggest challenges was Beyond learning the details merging business cultures. Financially, of the business, market- it’s easy ﬁnding reasons to bring place, customers and operations, there’s companies together. But can you bring the huge challenge of understanding customers and employees with you to life during and after the merger. the end of the journey? It was only a few days after publicly You have to develop a common announcing our merger that we rolled culture that everyone signs up for, and out our detailed strategy. We believe get people to see that the future can be this early vision contributed substan- brighter by showing progress in your tially to our success. Our employees new strategy. told us it took some time to see beyond Some employees can’t leave the

CMA MAGAZINE May/June 2013 23

CMAC039 - Feature Stories.indd 23 4/17/13 4:37 PM past behind. Others may think that the We had regular conversations with Managing change new way is better and that they need to employees, town halls and email com- is part of being evolve to compete. munication. You’d be surprised at how Every day the transition drags on, much comfort and confidence people a leader. We’ve you lose money and your shareholders take from open dialogue. found four great lose value. Worse, you risk losing good The truth is that an organization reads that help people and good customers, and damag- continues to go through changes and ing your brand. The competition starts adjustments. The critical skill we all foster a work- eating your lunch. The more quickly need to master isn’t how to manage a place culture that you can get from here to there, the more transition, but to manage the assump- quickly you can deliver the benefits that tion that the journey will be full of road- thrives on change. brought you together in first place. blocks and challenges along the way.

ALL IN POST-MERGER MANAGER’S GUIDE TO Organizations will execute consis- I would be kidding you if I pretended NAVIGATING CHANGE tently only if leaders invest their heart that post-merger life at Bell Aliant has Author: Stephen Rock and soul in achieving the desired end been nothing but smooth sailing. Or Publisher: McGraw-Hill state. You can’t have people who are that we’ve done everything right. Today’s unforgiving busi- halfway in, avoid tough conversations What I can tell you is that we remain ness environment demands or shrug when asked for the reasoning optimistic. Our post-merger perform- that organizations change behind the merger. As leaders, we all ance has met the majority of our or be changed, and Stephen have to trust one another and believe in promises and set the foundation for Rock offers tactics and the destination. It’s our responsibility future growth. Our employees are strategies for managers to get our employees on board. innovative and highly skilled leaders caught in the maelstrom. We had to ask ourselves two questions: in the industry and have seized new Learn how to lead your How much value will this merger add opportunities for professional growth. department through for our shareholders, employees and While it has taken some time for our upheavals triggered by customers? And does it have a good key messages to be fully understood, internal or external events. chance of early success? Our organiza- we believe our shareholders, our Rock’s advice will help you tion’s leadership needed to agree on customers and the investment deﬁne your vision, com- those priorities and be ruthless. communi ty see what we see, and municate it to staff and get Communication is one of the most understand our strategy for successful buy-in, make large-scale important elements of success. If we growth in the coming years. We knew changes sustainable, put don’t have answers during a transition, then and we know now that maintain- your plan into action and we tend to go silent. You’ve got to ﬁght ing the status quo is not an option. take stock of the results. that urge. One of the latest titles in Talk to your employees often and be Sharon Aschaiek is a Toronto-based McGraw-Hill’s Briefcase honest, even if you don’t have answers. freelance writer. See www.cocoamedia.ca. Books series, this guide also

24 CMA MAGAZINE May/June 2013

CMAC039 - Feature Stories.indd 24 4/12/13 9:15 AM CHange it up!

xpert advice for EE managing transitions

BY Jaclyn Law

features handy checklists transition. The book’s accessible guide will help world’s ever-increasing and sidebars to help you practical tools help manag- you better handle the chal- pace of change and take handle common workplace ers cultivate their inner lenges of change — such as advantage of windows of situations. qualities and more confi- managing emotional factors opportunity. dently handle what is and dealing with opposition The heart of this influen- LEADERSHIP TRANSITIONS: often “a time of struggle ... — in the workplace and in tial book, first published in HOW BUSINESS and search for mastery and your personal life. 1996 and re-issued with a LEADERS TAKE CHARGE personal coherence.” An in-demand executive new preface in late 2012, is IN NEW ROLES coach, trainer and speaker, Kotter’s holistic eight-step Authors: Richard Elsner CHANGE-FRIENDLY Duncan has provided process for leading — not just and Bridget Farrands LEADERSHIP: HOW TO expertise on the strategic managing — change. Taken Publisher: Kogan Page TRANSFORM GOOD management of change together, the steps shake You’ve been promoted to INTENTIONS INTO GREAT to corporations such as up a company’s status quo, management. Now what? PERFORMANCE IBM, American Airlines introduce new practices and Avoid pitfalls with this Author: Rodger and Sprint. make the changes stick. in-depth guide to the Dean Duncan With the help of real- stages of leadership transi- Publisher: Maxwell Stone LEADING CHANGE world examples, Kotter tions: arriving, surviving Publishing Author: John P. Kotter also scrutinizes the errors and thriving. Change is a necessary but Publisher: Harvard that can derail positive Using case studies, Elsner scary thing. Too often, Business Review Press transformation. and Farrands examine the we stick to the status quo Kotter, a professor at myths and realities, explore out of fear and anxiety Harvard Business School Jaclyn Law is a Toronto- the reasons for failure and and face potentially disas- and an authority on leader- based freelance writer. break through the secrecy trous results. ship, offers practical advice Find her on the web at that typically surrounds the The strategies in this to cope with the business http://about.me/jaclynlaw.

CMA MAGAZINE May/June 2013 25

CMAC039 - Feature Stories.indd 25 4/12/13 9:15 AM pack your own parachute LLand a job you'll love

BY Anne bokma

Looking for your ichard Nelson Bolles is the important as IQ. Don’t underestimate best job is most recognized job-hunt- the importance of personality traits ing authority on the planet. such as friendliness and optimism. a never-ending The 85-year-old author of “Everybody is looking for people endeavour the bestselling What Color who are confident and comfortable Is Your Parachute? (there in their own skin,” says Jill Birch, a are more than nine million copies in vice-president at OCAD University print) hasn’t wavered from the premise in Toronto and a frequent speaker on he’s maintained since the annual guide leadership development and organiza- was first published in 1970: Answering tional change. help-wanted ads won’t get you a job. Birch acknowledges this task can be Instead, you need to figure out what a challenge for introverts. “You need to you really want to do and then find the be an effective communicator, whether best place to do it. [you’re] in a job interview, presenting “Always define what you want to do financials to a board of directors or dis- with your life and what you have to offer playing expertise at a conference. It’s all to the world in terms of your favorite about the power of presentation.” talents/gifts/skills — not in terms of a job title,” Bolles says. 3. Go public. Talk to people who have That’s sound advice for any CMA the kind of jobs you envy. Ask your anticipating a job transition or in the manager what you need to do to move midst of one. We turned to job-hunting ahead in your organization. pros for strategies to help you land a job “Find a senior person in your firm to you’ll love. Here are their top tips. act as a mentor or seek out an assign- ment that would allow you to partner 1. Have a plan. Cheryl Breukelman, with someone you want to work with,” a partner at Epiphany Coaches in says Breukelman. Taking on a new Hamilton, Ont., echoes the tried-and-true responsibility will give you the chance advice of Bolles: know what you want. to learn new skills and gain greater Start with a plan, she says. “You need visibility. to be intentional about your career. Really think about your strengths, skills 4. Keep your network alive. “If and passion. You need to have a clear you were sacked tomorrow, would sense of where you want to go.” people return your call if you haven’t been in touch in five years?” asks Birch. 2. Work on soft skills. You’ve She encourages CMAs to get out of the heard it before: EQ (emotional office to meet key contacts a couple of intelligence quotient) is just as times a year.

26 CMA MAGAZINE May/June 2013

CMAC039 - Feature Stories.indd 26 4/12/13 9:15 AM CMAC039 -Feature Stories.indd 27

© Lou Brooks / theispot.com “ instead ofjust one.” because youcanconnectwith15people you attend. “Annual eventsaregood and bestrategic abouttheevents Join yourprofessionalassociation 6. Promoteyourself. 5. Networkyourway. themselves.” introverts to askother peopleabout who canhelpyou.It’s easier for yourself, show aninterest inthepeople “Instead ofworryingaboutselling another cocktail party. ing educationeventratherthan That mightmeanattending acontinu- where youfeelcomfortableshining.” need toputyourselfinaposition Panacea CanadainOrillia,Ont.“You Karen Graham,asuccesscoachat cheese gathering,” acknowledges everyone doeswellatthewine-and- that yourworkwillspeakfor itself. Ina your call?” return would people tomorrow, were sacked If you Invite expertsinyourﬁeldtolunch. Graham’s advicetointroverts:

“It’s amyth “Not was acredibleexpertinleadership.” bodyofwork and a suddenIhadlarge PhD inleadershipdevelopment. “All of says Birch,whoisnow workingona learn tolead)“wasagamechanger,” her master’s degree(onhow CEOs 9. Boostyourcredentials. 8. Defineyourbrand. improve. 7. Figureoutwhatyouneedto provide honest feedback. says Birch.Acoachormentorcanhelp you needtoenhanceinyourskillset,” deeptofigureoutwhat be abletogo you’re at,butyoualsoneedto good of decisionmakersinany wayyoucan.” writing articlesorgivingpresentations. becoming known asanexpertby active onLinkedIngroupsand ing regularlywithamanager, being comments onFacebook, communicat- ments. Possibilities includeposting acknowledged fortheiraccomplish- advises CMAstofindwaysbe rely onthat,” says Breukelman.She perfect worlditshould,butyoucan’t you bring,” says Breukelman. team. Besuperclearaboutthevalue collaborator orknow how torallya analytical skillsorareamaster attributes? “Perhaps youhaveamazing What areyourmost compellingkey what makesyouunique,andsellit. Advanced educationalsopresents Advanced Adds Graham:“GetAdds yourselfinfront “It’s easy tofigureoutwhat

Figure out Getting to gainmuch-neededexperience. for twolocalnon-profitorganizations taken ontheroleofsecretary-treasurer a moreseniorposition,” shesays. She’s finance andaccountingexperiencefor HR background, butIdon’t havethe entry-level positionsbecauseofmy job. “Rightnow I’m overqualified for CMA designationandislookingfora sional whorecentlycompleted her organization works,” says Graham. have abetter understanding ofhow the in ahospital,volunteeratonesoyou’ll knowledge inaparticularfield. ties thatwillenhanceyourskillsand hired. Lookforvolunteeropportuni- the boost theyneedtogetpromoted or experience canhelpgivejobhunters ness cardslikecrazy.” everyone’smanagement], tradingbusi- [the UniversityofToronto’s school of a roomwith40other peopleatRotman networking opportunities. “Ifyou’re in www.annebokma.com. and editorinHamilton,Ont.See Anne Bokma 11. Bepersistent. 10. Gooddeedscount. and that’s adviceforjobseekers.” good Churchillsaid ‘nevergiveup’ “Winston find therightjob, says Graham. maintain apositivebeliefthatyouwill butit’sdiscouraged, important to Michelle BernardoisanHRprofes- “If youwanttoworkinaccounting CMA MAGAZINE May/June 2013 isafreelance writer It’s easy toget Volunteer 4/12/13 9:15 AM 27 Game changers

our big issues cmas FFcan't afford to ignore

BY Jennifer Dawson

Big data. oday, the phrase “business how accountants do their jobs,” says Crowdsourcing. as usual” could be code for Marr. “Companies are already using “left behind.” But with so technology to detect internal fraud, Talent much change on the horizon, make market cap predictions, forecast management. where’s a CMA to look to profit margins and much more. Soon Federated stay ahead? We asked four we’ll be able to make financial forecasts influential business thinkers, including that take into account trends such as networks. two CMAs, to pick their game-changing weather data.” issue. Then we asked for the nitty-gritty: why it’s important, where to go for more HOW information and how to incorporate it into “Start learning about it,” says Marr. your work. Here’s what we found out. “Listen to what others are doing and experiment with big data analytics.” Big data tools are readily accessible and sometimes free. Think Google WHAT Trends, Social Mention, Google Big data, says Bernard Marr, founder Analytics and industry-specific tools and CEO, the Advanced Performance such as TripAdvisor. Hadoop software Institute helps manage massive volumes of fast-moving, unstructured data by WHY distributing the analysis to different Our ability to collect and analyze big computers. data — large amounts of information, The technology is available to small especially the unstructured kind and medium-sized companies as that doesn’t play well with a well as the big guys. Avoid analysis spreadsheet — will inform decision paralysis by following these tried- making. According to Marr, the and-true principles: ask smart data explosion is already upon us questions and know how you’re going and will revolutionize the way we to use the answers. live and do business. In health care, we’re now able to INSIGHT decode DNA sequences simply and “Think about all the data humans cheaply. Twitter and Google can track generated from the beginning of time flu outbreaks in real time, helping until 2003,” says Marr. “We were hospitals predict and plan for producing that amount of data every emergency room visits. CMAs will two years in 2011, and it’s every feel the impact as well. 10 minutes in 2013. What could you “Big data will completely transform do with all that information?”

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© Lou Brooks / theispot.com WHAT issue of detail intheSeptember/October 2013 ment. Readaboutbigdatainmore anddatamanage- business intelligence collective.com forthelatest trendsin @BernardMarr. Visitwww.smartdata regularly; follow himonTwitter Marr tweets andblogsonthetopic FIND OUTMORE outside thecompany. Today, because product innovation would comefrom & Gamblesaid that50per centofnew impressive. And whenyoudo, theresultscanbe other people’s brains onyourproject. else.” Withcrowdsourcing, youcan put the smartest peopleworkforsomeone it best: “Nomatter whoyouare,most of Microsystems co-founderBillJoy put and areoftenfree. from peopleoutsideyourcompany — Ideas, labourandcontentcancome source technologysuchasLinux. crowdsourcing alsoincludesopen include WikipediaandiStockphoto; Examples ofcrowdsourced sites different toeveryone,says McIntyre. Crowdsourcing meanssomething WHY CMO of Chaordix Crowdsourcing, says A fewyearsago, theCEO ofProcter toMcIntyre, Sun According

CMA magazine Sharon McIntyre . , crowdsourcing solutions outthere. “There arealot ofquick-win technical suggestion box,” says McIntyre. “We’re not talkingaboutadigital INSIGHT budget,” shesays. reach ordomorewithasmaller can blue-skyyourwaytoincrease using crowdsourcing principles. “You Newbies canalsostart anewproject or customers —tolearnwhatdonext. Go tothecrowd —employees, suppliers insight forsuccessfulimplementation. already underwaybutneedsgreater collaborate withyoursupplychain. costs, extend yourglobalreachor Crowdsourcing canhelpyoureduce achieve yourgoals,” says McIntyre. differentconstituents to leverage drivers andthinkofhow youcould “Lookatyourkeybusiness charge. position toleadthecrowdsourcing organization thatthey’reinagood CMAs affectsomany areasofan HOW sourcing tostay relevantasadvisers. CMAs needtopayattention tocrowd- relations. toMcIntyre, According to intellectualpropertyhuman in everyareaofbusinessfromfunding Tide Pods andOlayRegenerist. dusters, Mr. CleanMagicErasers, sourcing initiative,wehaveSwiffer of P&G’s Connect+Developcrowd- Crowdsourcing hasimplications First-timers cantakeaprojectthat’s a competitive advantage. about talentwillgiveyourorganization says Davies. Thinkingstrategically tools andanemphasisonproductivity, thanks toHRanalytics, greatsoftware ﬁnally getting somestrategic focus, “you shouldbetoo.” CEO isworriedaboutit,” says Davies, concern forCanadianexecs. “Ifthe PwC show thesituationisamajor Recent studies by FEICanadaand of skillsgapsanddemographics. forecasting because atalentshortage Many industries areexperiencingor WHY Human CapitalSolutions Davies Talent management, says WHAT Roberto Verganti. with business. Booklovers cancurlup the power ofthecrowd totransform spring, educatesdecisionmakersabout international conferenceheldevery topic. Crowdsourcing Week, alarge resource foreverythingonthe Visit www.crowdsourcing.org, the FIND OUTMORE core functioninyourenterprise.” and processasyouwouldany other You needtolookatthetechnology Fortunately, humanresourcesis Design-Driven Innovation

, CMA, CFO of Knightsbridge CMA MAGAZINE May/June 2013 Victoria by by 4/12/13 9:15 AM 29 HOW FIND OUT MORE you’re only as good as the last RFP or CMAs, because of their strategic Next time you’re at a conference, sit in tender. It forces the whole network to approach to business challenges, can on sessions that focus on talent, HR or be more competitive.” be HR change agents. But they must leadership. Read The Leadership Gap Low-priced technology and a mobile have the right mindset. “Performance by David S. Weiss and Vince Molinaro workforce make the price of entry as low as management is not just filling in and the follow-up Leadership Solutions a software subscription on a tablet device. forms when the HR person asks us,” by David S. Weiss, Vince Molinaro and “With a small investment, a $10-million says Davies. Liane Davey. Visit changeyourteam. supplier can play in the same league as a Start by linking your business com and thecommunityofleaders.com. $100-million supplier,” she says. “Both strategy to your talent needs. Companies can serve a $1-billion customer.” that want to be acquired, for example, need people who can increase value. HOW Companies that want to grow aggres- WHAT CMAs can help their companies iden- sively need people who are comfortable Federated networks, says Lally tify opportunities to participate in a with ambiguity and taking risks. Rementilla, CMA, VP of Finance at federated network. Then they can help Then take a hard look at your HR Nulogy Corporation navigate decisions to standardize data, function. Is your current talent integrate and align business processes, achieving your strategic goals? Do you WHY select IT infrastructure and develop an have a robust employee-engagement, A federated network is a group of cus- open and flexible workforce, she says. performance-management, compensa- tomers and vendors who make their tion, career-planning and succession- systems “talk” to each other to quickly INSIGHT planning process? Think of how you and easily share information and “More and more, customers will do can walk the talk to demonstrate send electronic transactions. Notable business with suppliers based on strategic HR practices and influence examples are American Airlines’ Sabre ‘apples-to-apples’ comparisons,” says the behaviour of C-suite colleagues and system and Canada’s Descartes Global Rementilla. “Entry into a federated the departments that report to you. Logistics Network. And while they’re network is the price you pay to be talked about a lot in the supply chain considered an apple. Companies who INSIGHT industry, Rementilla sees the value of don’t join these networks risk being “If you’re rolling your eyes or checking federated networks in any industry called an orange.” your emails when HR topics come with multiple customers and vendors. up at a meeting, then you need to If you’re not in the network and your FIND OUT MORE change your thinking,” says Davies. competition is, you’re out of the game. Visit www.supplychainbrain.com and “Technology and great data and But if you are in the network, the more read The Intimate Supply Chain by analysis freed accountants to become you compete and learn. “The value and David Frederick Ross. more strategic. Look at us now: we’re productivity of the whole network the value-added advisers. The same increases because of information Jennifer Dawson writes about thing happened to sales and marketing. sharing,” says Rementilla. “If you’re in, business, health and the environment. Now it’s HR’s turn.” you’ve met a level of excellence, but See www.plaidpencil.com.

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CMAC039 - Feature Stories.indd 30 4/12/13 9:15 AM Four Warned

our tech predictions FFfrom deloitte

BY duncan stewart

Password-only assword-only protection is HIGH-SPEED GRIDLOCK protection? obsolete. Fourth generation After 50 years of technology innova- Useless. (4G) network speeds may tion, we now transmit one million PP be slower than you expect, times more bits of data per hertz of 4G = speed? at least in cities. But PCs? radio spectrum than we used to. But A myth. Maybe they have a future our bag of tech tricks has run out. The after all. And smartphone ads? Let’s result is like a highway during rush PCs and mobile ads? hope they generate revenue tomorrow hour: you can still get on the network, Read on. because despite the hype, they’re not but you don’t go very fast. quite delivering yet. The 4G network that allowed down- Duncan Stewart, co-author of Deloitte’s loads of more than 50 megabits per annual Technology, Media & Telecommuni- second when it was ﬁrst built (and had cations Predictions (or TMT) report, offers only a few users) slows down as more a sneak peek at the technology issues people sign up to watch videos. A recent that CMAs need to watch in 2013. speed test in the United States during a techie trade show had wireless data For the past two decades, online rates of not 50 megabytes per second accounts that were protected by a user but 50 kilobytes per second. Welcome name and an eight-character password back to dial-up! composed of capital and lower-case As demand for cellular connectivity letters, numbers and symbols were exceeds supply, two things will highly secure. It wasn’t perfect, but it happen: speeds will drop in urban was good enough to protect even high- areas, and prices will rise. What will value information such as health and happen to enterprise use of mobile bank records. data and the move to put everything in But that’s so last year. Now, because the cloud? of online password dictionaries, crim- inal “crowdhacking” and new hardware THE PC-PLUS ERA tools, password-only accounts can be The smartphone and tablet revolu- cracked in hours or even seconds. tions have created what some call the In response, protectors of high- post-PC era. Studies show that there value accounts will need to move will be almost twice as many mobile rapidly toward better solutions such as devices as personal computers world- multifactor authentication. Additional wide by the end of the year. checkpoints such as biometrics or But despite last year’s decline in new sending text messages to cellphones PC sales, we need to remember a few will be needed to verify that we really things. The PC industry continues to are whom we claim to be. sell almost a million computers per day.

CMA MAGAZINE May/June 2013 31

CMAC039 - Feature Stories.indd 31 4/12/13 9:15 AM CMAC039 -Feature Stories.indd 32 32 still matters. for sometasks, andscreensize but akeyboardandmouseissuperior Smartphones andtablets aregreat, three devicetypeshappilyco-exist. era”whenall today asthe“PC-plus a tablet toaPC. 40 percentofpeopleover 65prefer age prefer atablet toaPC. By comparison, Only 8percentof18-to24-year-olds reading newspapersorpayingforCDs. PC inthesame waythattheystopped Young peoplearen’t abandoningthe web trafﬁcstill comesfromcomputers. our PCs. don’t usethemasintenselywe at oursmartphones50timesaday, we computers inuse.Althoughweglance There aremorethan1.5billionpersonal o a on nspro n-noetann,ogigcussadseminars, and courses ongoing training, one-on-one superior on count can You o oeif al1887348 x.22 rvstwww.padgettfranchises.ca visit or 222, ext. 1-888-723-4388 call info more For agt fesafehytpoe lentv otecalne fgigi alone it going of challenges the to alternative proven yet fresh a offers Padgett It makesmoresensetothinkof In 2013, morethan80percentofall saPdetfacieonr o ilhv cest ietse systems time-tested to access have will you owner, franchise Padgett a As n aktn ehiusa ona o pnyu or o business. for doors your open you as soon as techniques marketing and CMA MAGAZINE May/June 2013 OYUWN OBAC U NYU OWN? YOUR ON OUT BRANCH TO WANT YOU DO er epn ogo ucs tre,oeeternu tatime. a at entrepreneur one stories, success grow to helping We're eiae rnhs upr emadsaeo-h-r systems. state-of-the-art and team support franchise dedicated a

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predictions tech o conig&TxFranchise Tax & Accounting 1 No. onPdets40offices 400 Padgett’s Join at home. multiple tabs, gamingorwatchingvideo for workingonspreadsheets with tablet? Suchrealestate ismuchbetter thana7-inchmonitor is10timesbigger area ofasmartphone?Orthatdesktop 14-inch laptop screenis16timesthe growth occurredinthetablet market. in thelast 12months, almost allofthe dollars spentonmobileadsdiddouble been achallenge. especially fordisplayadvertising,had how tomonetize themobilescreen, 100 percentin2012. Figuringout mobile advertisinggrewby morethan Finally, alot ofpeoplegotexcited when NO MONEYMOBILE Did youknow thattheareaofa Although thetotal numberof But holdon. per day computers a million sells almost still industry The PC Predictions nology, Media&Telecommunications and co-authorof DeloitteCanada research TMTfor for Duncan Stewart and beyond. crucial fordecisionmakersin2013 both rightwillbe kindsofchange things arechangingslower. Getting changing faster thaneverbefore,other Whilesomethingsare a challenge. problem hasn’t beenlickedyet. revenue peryear. Themonetization produce only$0.60 indisplayad However, tiny smartphonescreens as muchwithaPC, butdecent. in displayadrevenueperyear. Not and consumers. and areattractive toboth advertisers enough forbanneradsandvideos Tablets havescreensthatarebig To getthewholestory, read hasalwaysbeen Dealing withchange Each tabletabout$7.00 generates athttp://ow.ly/inNsk. Predictions . isthedirector of . Tech- 4/12/13 9:15 AM

FIVE CMAs NAME NAME MIRA SIROTIC, CMA KIRK SIEVERT, CMA SHARE STORIES Regional Director, Marketing and President, AdPro Change Systems Inc., Communications, CMA Ontario, Head of St. Margarets Bay, N.S. ABOUT THEIR Toronto, Ont. JOURNEYS WHAT HAS BEEN YOUR EXPERIENCE WHAT’S BEEN YOUR BIGGEST TRANSITION? WITH TRANSITIONS? I left the corporate world as an executive to I held eight positions in six different pursue a dream of working independently. By Michelle Singerman business units during my 10-year career at Starting my own company and having to Imperial Oil Ltd. My biggest transition was invest capital, hire staff and make longer- ajor transitions relocating away from Imperial Oil’s Calgary term contractual commitments was my affect people’s office. My husband was in Toronto and had biggest transition and learning experience. M plans to move, but couldn’t because of personal and professional work. I tendered my resignation and was HOW DID YOUR TRANSITION AFFECT YOU? lives. Staying positive, back in Toronto within four weeks. Starting a small business with my own capital brought a new focus and level of focusing on the goal WHAT WAS YOUR APPROACH TO THE CHANGE? commitment. Personally, travelling has and taking advantage While change may not be something you probably affected me the most. I once saw control, you can control your response to a familiar face in Newark Airport, but of resources assist it. I have always seen change as an couldn’t remember the person’s name. I successful change. opportunity to learn and grow and went over to say hi and confessed to not experience something new. remembering when we had met. He said, Five CMAs tell us how “I’m your U.S. customs clearance officer they’ve successfully WHY IS CHANGE SOMETIMES NECESSARY? normally stationed in Halifax.” I thought, The only thing that stays the same in life is “I’m spending too much time in airports.” navigated transitions that life is always changing! Change is in their careers. necessary in a complex world. It reflects WHAT DID YOU LEARN FROM YOUR the dynamic nature of life and allows us, as TRANSITION? humans, to maximize our potential. Change isn’t easy and can be disruptive. But change also presents a myriad of opportunities. When confronted with change, it’s important to build awareness of why the change is necessary and the consequences of not changing.

If you’d like to weigh in on issues for CMA magazine, please send an email, along with a brief description of your interests and expertise, to [email protected].

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CMAC039 - 5-Up_Transitions_1.indd 34 4/12/13 9:10 AM NAME NAME NAME LYNN TRAVERS, CMA ASH BISARIA, CMA CATHY MCLAY, CMA Consultant, Self-employed, Vice-President, Financial Accounting, Chief Financial Ofﬁcer and Executive Toronto, Ont. Credit Suisse, Toronto, Ont. Vice-President, Finance and Corporate Services, TransLink, South Surrey, B.C.

WHAT'S BEEN YOUR BIGGEST CHANGE? WHAT’S YOUR BIGGEST TRANSITION TO DATE? WHAT HAS BEEN YOUR EXPERIENCE WITH I left a marriage of 18 years. Two months In 2009, I went to manage and expand TRANSITIONS? prior, I had finished a 14-month contract in Credit Suisse’s finance and accounting I worked in the private sector before joining financial planning. I only wanted to return to outsourcing centre in India. It was my first TransLink, a public sector organization. I the workforce to work in a start-up, on a time managing a large team, and it joined as TransLink was reviewing how it special project, in the financial planning or [involved] different time zones and does business and finding ways to administration departments of an enter- cross-functional teams. It was also a big maximize value for its shareholders: the prising organization. I was very specific. personal transition: I was a Canadian living taxpayers. We really focused on making the I accepted an opportunity as account- in a new country with my family. organization streamlined and efficient. It ing manager for a start-up in the enter- required a shift across the entire enterprise. tainment sector. Three months in, it was WHAT MAKES A TRANSITION SMOOTH? clear it was a poor fit. I left the role A smooth transition requires detailed WHAT MAKES A TRANSITION SMOOTH? knowing it was time to pursue my passion: planning, positive thinking and persever- As a leader, you have to believe in the to help women be financially independent ance. Transitions have their own change. It’s important to be clear to all with confidence. challenges. Plan and prepare well, think involved about why the change is happen- through all available options and provide ing, what the desired outcome is and how WHAT DID YOU LEARN FROM THAT for contingencies. Always have a Plan B if you’re going to get there. You also have to EXPERIENCE? things don’t work out. be clear about who is accountable. To pursue my passion and mentor others to do the same. Also to network and learn from WHY IS CHANGE SOMETIMES NECESSARY? HOW ARE TRANSITIONS BENEFICIAL others, and return to school if necessary. Change is not just necessary but essential. TO A CAREER? You’re never too old to do something that Acquiring international experience is vital, With the transition I made from the private you love and makes you truly happy. and all CMAs should aim for it in their to the public sector, I became CFO and careers. Most global corporations look executive VP in a large, regionally signifi- HOW DID YOU ADAPT TO ALL THESE for people who have worked in domestic cant organization. My portfolio expanded TRANSITIONS? and overseas markets to fill senior to include legal, real estate, strategic With the help and guidance of a life coach management roles. sourcing and even IT. I’ve expanded my (also a close friend), a network coach, knowledge and experience. family members and good friends. In some The public sector also opened my relationships, significant change is often eyes because I’ve had more exposure to required if you cannot visualize improve- public policy and the politics around it. ment in the future. I feel enriched by the experience.

Michelle Singerman is a freelance writer, editor and photographer in Toronto. See www.michellesingerman.com.

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CMAC039 - 5-Up_Transitions_1.indd 35 4/12/13 9:11 AM TECHNOLOGY

Merging information assets What’s your day one strategy?

Think beyond SUCCESSFUL MERGERS and acquisi- “You can create a social community tions (M&As) appear to beat the odds. effect if you plan for it,” says Roman. numbers to Studies place the failure rate as high “If you don’t, the clock’s working as 90 per cent and, according to a against you.” improve your KPMG report, “83 per cent of all M&As failed to produce any benefit for the Finding a strategy chance of success shareholders, and over half actually IT, however, is rarely called upon to destroyed value.” play a strategic role in M&As. By Jacob Stoller The culprit, we’re told, is widespread “Typically the last person to get a neglect of the so-called soft assets — phone call when an acquisition knowledge and culture — that may be happens is the IT person,” says Roman. essential to the value of the organiza- This oversight is, according to Alan tions being merged. Middleton, executive director of the Information technology (IT) presents Schulich Executive Education Centre both a challenge and an opportunity. On at York University, part of a much larger the one hand, combining IT assets can problem: the M&A teams’ lack of vision. be a tedious undertaking fraught with “They’ll talk synergies until they’re unexpected costs and delays. On the blue in the face,” says Middleton, “but other, IT can be a powerful tool for what they mean is cost cutting as fast as disseminating knowledge and culture. possible.” Instead of merging operations As such, IT can help ensure that an haphazardly, they need to ask what M&A doesn’t cause vital knowledge they want this newly merged organiza- assets to dis appear, or high-value tion to accomplish. employees to head for the exits. Roman has developed guidelines for “There’s a whole new dimension in the IT’s role in M&As. The guidelines are information age,” says Eugene Roman, based on his experience with more than CMA, senior vice-president of informa- a dozen mergers, including Canadian tion technology and chief technology Tire’s recent acquisition of sports officer at Canadian Tire Corporation. “A retailer Pro Hockey Life Sporting lot of the social tools that are available Goods Inc. His first piece of advice: today were not there even five years ago.” “Get the technology people in early and Employee information systems, come up with a road map.” workflow programs, collaboration tools The digital infrastructure of the and internal social media pages can all respective companies can be expected be used to bring workforces together. to be different, he says. Depending Conversely, removing these tools from on the complexity, the consequent an acquired organization, as often integration typically takes from 6 to happens, can destroy a working culture. 18 months.

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© Keith Negley / theispot.com feeling thatmatters areundercontrol. communication andgiveemployees a intranet ondayonecanspeedvital Having acombinedemailsystem and in thefutureofneworganization. rumour mills, andincreaseconfidence prevent employee confusion and in theirworkplace.Thishotline can thataretakingplace into thechanges give employees avirtual“hotline” ees onboth sidesoftheacquisition.” creates thefirst impressionforemploy- acquired, whathappensondayone acompany is says Roman.“When “You havetoadayoneprocess,” organization. begin workinthemerged must beaddressedassoonemployees them acquirethatknowledge. and how informationsystems canhelp needtoknowmerger todotheirjobs what employees onboth sidesofthe Essentially, plannersneedtoestablish value intheneworganization. companies intermsoftheirpotential assess knowledgeassets inboth for ademandinginteraction:theymust historically focusedonis important, records andpayroll. functions suchasfinancials, employee core” farbeyondthe“hard to go synergies, plannersmust beprepared To ofpotential takeadvantage Meeting technical challenges Special websites, forexample,can There areaspectsofintegrationthat Team membersshouldbeprepared “The transactional stuff thatwe’ve different workcultures. “Larger organizations mayhavesignificantly The employees intherespectiveIT isn’t just abouthardwareandsoftware. big bang,” says Fisher. moves ontothenext “It’s stage. nevera team the workplacebeforemerger newly-combined system istested livein logistics later. chainismerged Each first;stages: financialsaremerged the metrics. Thosearethetougherones.” where you’re changingsomeofthe affecting targets, sales, andother areas “The trickisreallywhenyou’re on thetechnologyaspectsofM&As. Inflection Groupandafrequentadviser managing directoroftheToronto-based complicated, says RennieFisher, financials, integrationtasksgetmore of theopportunity,” says Roman. but itonlyrepresents10to15percent “ the acquisition.” on bothsides of for employees the first impression day onecreates What happenson Of course,mergingtechnicalassets The systems in areusuallymerged “The financialsareeasy,” hesays. As theplanmoves beyondthe side hasexperiencedinthepast.” about thatarebetter thanwhateither to accomplishthingsthatyoucantalk thanweexpect.”takes longer weknowsays italways Middleton, “but is fullofthepromiseinstant magic,” the newentity. organizations areincorporatedin ensure thatthestrengths ofboth through agive-and-takeprocesscan Fisher. Bridgingthesedifferences would considercumbersome,” says procedures thatpeopleinasmallshop standards, andhaveestablished change organizations mighthavetofollow jacobstoller.com. writer andresearcher. Seewww. Jacob Stoller things that[it]maynot haverealized.” CMA hereistohelpthecorporationsee balance sheet,” headds. “The roleofthe tion assets ofthecompany onthe simply amirror.” numbers,” hesays. “Thenumbersare you canstart thinkingbeyondthe “Once youunderstand thenumbers, Roman callsonhistrainingasaCMA. many yearsasatechnologyofficer, identify andpreservevalue.Even after accountant’sa management abilityto M&A isperhapstheultimatetest for Improving theprospectofasuccessful Back tobasics His advice:“Go forsmallwins. Try All thistakestimeandpatience.“IT “You don’t seethecriticalinforma- CMA MAGAZINE May/June 2013 isaToronto-based 4/12/13 9:18 AM 37 SPOTLIGHT Life support

Mark Grunert, Employer: STARS Role: Base Director, CMA, combines Calgary Operations Most valuable piece of management advice: “You don’t need to know everything. Ask skills and aviation the appropriate expert.” know-how Website: www.stars.ca

By Jaclyn Law

MARK GRUNERT STARTS EACH WORKDAY with a long walk. The base director in Calgary for STARS, the Prairie provinces’ air ambulance service, Grunert treads up and down the hallways and hangars of the 34,000-square-foot facility, checking in with various crews: engineering, operations, medical and aviation. “Our base has over 150 employees,” he says. “I’m the communicator who brings things together.” Established in 1985, STARS helps people who are critically ill or hurt. Medical teams at each of its six bases handle everything from car crashes and work accidents to life-threatening pneumonia. Available 24 hours a day, they fly to the rescue in STARS’s cherry-red helicopters. Grunert and his fellow base directors ensure operations run smoothly. In addition, Grunert handles budgeting, finances and strategic planning. STARS is growing quickly, and he drives efficiencies and manages change. “The best way is good communication and ensuring everyone’s in the loop with what we’re planning,” he says. “If we get buy-in, we’ll be more successful.” Grunert received his commercial pilot’s licence in 2000. He worked as a flight instructor while earning his management degree at the University of Lethbridge. He joined AirSprint Private Aviation as a corporate pilot and trainer in 2005. He graduated from CMA Alberta’s Executive Program in 2010. STARS is the perfect fit for Grunert’s skills. “There are many similarities between being a pilot and being a CMA: planning, strategy, following a process,” he says. “CMA opened doors that wouldn’t have opened with only an undergraduate degree. It’s a tremendous advantage.”

Jaclyn Law is a Toronto-based freelance writer.

See http://about.me/jaclynlaw. Thomas Fricke

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