To extend the reach and success of this program into the important stakeholder group of high performing Ontario firms, the February 2008 event marked the first Wisdom Exchange in Ottawa, giving CEOs and presidents the opportunity to network with peers from across the province.

1. Highlights from the forum for CEOs
Event Report and presidents of Ontario’s leading
growth firms
WISDOM
2008
EXCHANGE
Strategies for Growth
14TH WISDOM EXCHANGE CONFERENCE
Ottawa Congress Centre, Ottawa, Ontario
February 2008

2. On February 28, 2008, the Ontario Ministry of Small Business
and Entrepreneurship hosted the 14th Wisdom Exchange for CEOs and
presidents of small and medium enterprises (SMEs). Participating firms
from the manufacturing; professional, scientific and technical services;
information and cultural industries; and service sectors ranged in size
from 10 to 500 employees with annual sales between $2 million and
$100 million. This report provides an overview of the insights shared
by CEOs, topic experts and workshop presenters at the event.
In this report
Wisdom Exchange 2008 TABLE OF CONTENTS
Wisdom Exchange 2008 TABLE OF CONTENTS
Going global: Entering new markets through partnerships 3
Power to perform: Tight focus sharpens Linamar’s competitive edge 4
Sometimes things change: The new discipline of innovation 6
Leadership: Establishing, living and measuring the mission 8
Recruiting and retaining talent: Innovative approaches and solutions 10
Capitalizing from green: An emerging business paradigm 12
Financing Growth: Reports from the front lines 14
Business Advisory Services: Your partner for growth 15
2

3. “ We will continue to work with Ontario SMEs “
and industry associations to create a positive
business environment for growth, investment,
exports and innovation.
Going global: Entering new markets
through partnerships
Wisdom Exchange 2008 NETWORKING LUNCH
The Honourable Harinder S. Takhar
MINISTER OF SMALL BUSINESS
AND ENTREPRENEURSHIP
With business conditions shifting unpredictably The Minister invited the audience to think of the
across North America and around the world, Ministry of Small Business and Entrepreneurship as
leaders of Ontario’s small and medium a partner in developing new markets world-wide.
enterprises are recognizing and taking Ontario has a network of 10 international
advantage of global opportunities to innovate, marketing centres, in New Delhi, New York,
expand and open new markets. London, Los Angeles, Munich, Paris, Mexico City,
Beijing, Tokyo and Shanghai. These centres,
In his opening remarks to CEOs and presidents located in Canadian consulates, are there to assist
at the Wisdom Exchange, Honourable Harinder Ontario firms to make local contacts, participate in
Takhar shared his views on global growth trade shows and explore new markets.
opportunities for Ontario’s SMEs. “The U.S.
market is important, no question about it, but we Recognizing the vital contribution of SMEs to
also need to look at other markets like India, the provincial economy, the Ontario government
China and the Middle East where there are lots created the Ministry of Small Business and
of opportunities,” said the Minister. Entrepreneurship as a one-stop-shop for support
and advocacy. “I thank you for all your hard
In many countries, the best way to enter work,” the Minister said. “You are the engine
markets is through partnerships with local of Ontario’s economy.”
companies well established in the field. The
Minister cited the example of Samco Machinery In closing, Minister Takhar said, “We will
Limited. A well-known designer and manufacturer continue to work with Ontario SMEs and
of roll-forming systems and equipment, Samco industry associations to create a positive
aggressively pursued international markets. One business environment for growth, investment,
of its recent successes was to form a partnership exports and innovation, by providing a variety
with Tata Ryerson Ltd. in India to make parts for of programs, services and resources to help
the ground-breaking US$2500 Nano car, which companies committed to growth and innovation,
is sending shockwaves through the international like yours, to gain market intelligence, export
auto industry. The other was a global alliance assistance, support for new technologies and
with Formia Tech Oy out of Finland, which also access to government programs.”
has manufacturing facilities in China. Samco
evolved from a one-man operation with a sales For more information on programs and services
desk to a global enterprise with locations in to support Ontario businesses at any stage along
Canada, India, Finland and China, largely their continuum of growth, visit the Ministry’s
by innovating the company. website www.sbe.gov.on.ca
3

4. Linamar Corporation is one of the great success stories
of Ontario’s advanced manufacturing industry. From its
beginning more than 40 years ago in Guelph, Linamar
has grown to be a world-class designer and diversified
Wisdom Exchange 2008 KEYNOTE PRESENTATION
manufacturer of precision metallic components and
Power to perform: systems for the automotive industry, and mobile industrial
markets. Today, it has more than 11,700 employees
and 37 manufacturing facilities around the world
Tight focus (25 in Canada).
What strategies drove Linamar’s growth? More importantly,
sharpens Linamar’s what strategies is the company now pursuing to meet
today’s challenges? In her keynote presentation at the
Wisdom Exchange, Linamar Corporation’s Chief Executive
competitive edge Officer Linda Hasenfratz provided the inside view.
Three drivers of success
LINDA HASENFRATZ
Linamar’s key business success factors in today’s volatile
CHIEF EXECUTIVE OFFICER business environment lie in three areas: competitiveness,
LINAMAR CORPORATION finding and pursuing opportunities, and maintaining a
strong culture.
“Competitiveness is about innovation, efficiency, speed,”
said Hasenfratz. “We’re always learning, finding new
and better ways to do things. New technologies and
new materials are coming along all the time, so there
are always opportunities to improve.”
Linamar’s focus on competitiveness places product and
process innovation and living Lean through continuous
improvement high on its list of success strategies. The
company has adopted many Lean processes, and the
continuous improvement philosophy runs throughout the
organization, from the plant floor through to planning,
purchasing, labour-cost management and beyond.
“You don’t do a ‘lean’ exercise once,” Hasenfratz said.
“We’ve been doing it for about five years, every single
day. It’s a never-ending journey.”
For Linamar, competitiveness also involves minimizing
risks wherever possible. As a multinational organization,
volatile exchange rates can be a real headache and
very costly. To mitigate this risk, Linamar makes a point of
4

5. “
“
You don’t do a ‘lean’ exercise once. We’ve been
doing it for about five years, every single day. It’s
a never-ending journey.
buying materials and services in the countries they sell
in, which creates a natural currency hedge.
The pursuit of global opportunities
Over the years, product and market diversification has
been one of Linamar’s core strategies both to mitigate
risk and grow the business. At the beginning, Linamar
machined parts. Now it designs and manufactures full
systems. In the early days, it built power drives for
Renault. Now it manufactures scissor lifts.
senior executives ‘walk the talk’ and demonstrate the
“The key is to identify the hot buttons of your same attitudes and behaviours expected from the rest
customers—or your customers’ customers,” said of the workforce.
Hasenfratz. Meeting those customer needs in a way
that makes competitive sense could mean opening “The Linamar Way” focuses its efforts on people
plants in other parts of the world, she continued, development, which includes succession planning,
because “customers buy our camshafts not because as a key enabler to the company’s success. “We
of where they were manufactured but by what it can spent a good deal of time over the past ten years
do for them.” defining who we are and how we want to do
business,” said Hasenfratz. “We realize that, for
Linamar has a strong global presence and facilities in us, success in every area depends on having smart,
Canada, Germany, Korea, Mexico, the U.S.A., capable people with a skill based foundation. Once
Hungary and China. Hasenfratz said there are we find those people, we want to keep them.”
huge opportunities in foreign markets and identified
aggressive market penetration in areas of opportunity Rewards play a significant role in how Linamar recognizes
as a way to maximize potential towards a prosperous the contributions of staff to the company’s overall success.
future. Thinking globally, Hasenfratz listed Linamar’s The Stepping Stool Awards and Bonus program’s goal
operational philosophies as: setting and performance measurement system, part of
the ‘lean’ strategy, has paid out $57 million in awards
• Small manageable autonomous profit centres and bonuses since 1999.
• Product focused factories utilizing flexible equipment
wherever possible That drive for continuous improvement with a close
• Plant clusters (link and leverage) eye on the bottom line is at the heart of Linamar’s
• Decentralized organization outlook for growing the company in the decades to
• Commitment to continuous improvement come. “We’re always evolving how we do things,”
• Stepping Stool goal setting and performance said Hasenfratz. “The Tata $2,500 Nano car means
measurement re-thinking engines. You can’t just cut costs by 90%,
you have to re-think the whole thing.”
Rewarding success
The foundation for the company’s continuing growth, Despite the turmoil in the auto industry, Hasenfratz is
Hasenfratz believes, is the strong culture they’ve built a firm believer that “in every challenge there is opportunity.
at Linamar. It’s marked by open communication, In the words of Henry Ford—a plane always takes off into
rewarding real contributions and making sure that the wind.”
5

6. We’ve all heard it a thousand times: innovation is the key
to growth. But what if almost everything we believed about
innovation is wrong?
That might explain why only about four per cent of all
Sometimes things innovation efforts are successful, says Larry Keeley. Fortunately,
a new discipline of innovation is emerging today that can
dramatically increase innovation success rates into the 35
change: to 70 per cent range. That’s not just wishful thinking. Keeley
mentioned one of Canada’s most respected business thinkers,
Roger Martin, Dean of the University of Toronto’s Rotman
Wisdom Exchange 2008 PLENARY
The new discipline School of Management, is currently reinventing the training
of MBAs to increase the success rate of innovation.
Keeley, a renowned innovation strategist and business advisor
of innovation who has worked to develop more effective growth strategies
and innovation methods for over 27 years, while working with
LARRY KEELEY some of the largest firms in the world, takes a practical and
PRESIDENT, DOBLIN INC. business-minded approach to innovation. He captivated the
Wisdom Exchange audience for 90 minutes with his droll
INNOVATION STRATEGIST
sense of humour and keen insights on innovation.
AND PROFESSOR
CHICAGO INSTITUTE OF DESIGN Keeley believes that most successful innovations are not just a
happy product of random inspiration but the direct result of
corporate or community leaders setting goals and making
things happen. Innovation needs to be a hands-on process that
personally engages an organization’s leaders.
As Keeley explained: Out of problems and strategy comes a
vision, and that vision is applied to a solution, which can
differentiate an organization from the competition. He cited
three transformative examples of problem-solving combined
with leadership that led to innovations in North America,
Europe and Asia:
• Helsinki, Finland’s Municipal Lighting Project: Helsinki
has become a global centre for innovations in lighting,
which, Keeley pointed out, makes sense “because it’s friggin’
dark there for a lot of the year.”
• Tata Group: In India, the Tata Group are recognized as
one of the world’s finest hospitality chains. The brand is
synonymous with luxury and high-quality service. For
price-driven consumers, Tata Group developed an entirely
new approach to low-cost, high-style hotels called Ginger.
Their slogan is “Welcome to the world of smart basics. No
frills chic, Indian style.”
6

7. “ If you hear about a new technology or innovative discovery
that might be important to your business, find out where
you can go to see it in person. You can’t just experience
it intellectually. You have to feel it in your gut.
• Suntech and Dr. Zhengrong: In China, Suntech’s Dr. Shi
“
Zhengrong is creating the world’s most efficient passive
solar arrays. The main Olympic stadium in Beijing is
powered almost entirely by passive solar energy. The
outcome: remarkable environmental savings.
“If you hear about a new technology or innovative
discovery that might be important to your business, find
out where you can go to see it in person,” Keeley
recommended. “You can’t just experience it intellectually.
You have to feel it in your gut.” creates a unique and holistic customer experience only
loosely controlled by the platform owner; usually supported
He further advised, “As leaders you have to shape change by proprietary technologies; and typically characterized by
and redefine your business. Figure out what is fundamentally interdependent products and services provided through a
and permanently changing in your industry and address this network of business partners.
shift—even if it scares you. Pick a focus, he recommends,
and aim to be the best.” Money, printing, free markets and capital markets,
property ownership and the Internet are on his list of
The first step in making the innovation process more effective 15 Top innovations of all time. “All of these platforms,”
and efficient, said Keeley, is myth-busting. Contrary to explained Keeley, “transcended enterprises, industries
popular belief, innovation is not random, ‘eureka!’ inspiration and political borders.” Google, TIVO, MS Windows XP,
that comes out of the blue. “Nonsense,” he says. “It’s about Yahoo and eBay are examples of the popular consumer
taking a disciplined approach that has clearly stated goals platforms today. “All of the important stuff now cuts across
and is guided by metrics that matter.” There are now proven companies and markets.” He added: “Think of modern
innovation protocols and diagnostics that help keep bikes as a system of platforms, where a bike is
people focused. assembled by choosing your own frame, peddles,
seat, stem, handle bars, wheels, etc.”
According to innovation studies, the big winners in the inno-
vation game over the past ten years got rich by developing Keeley shared 10 types of innovation to move beyond
innovative processes or partnerships, not products or products to win. Studies have shown that if you can
technologies. For example, Dell Computer’s success came integrate six or more at once, you will achieve disruptive
from breakthroughs in their business model, financing, market changes.
service, brand, and customer experience, but not product.
In fact, the strength of their consumer offer came from 1. Business model (how the enterprise makes money)
positioning their product—a computer or peripherals—as 2. Networking (value chain and partnering)
a reliably standardized commodity. 3. Enabling process (assembling capabilities)
4. Core process (creating greater efficiencies)
The runaway success of the iPOD is not simply because it’s 5. Product performance (basic failures, performance
a better MP3 player. The iPOD is an innovative platform that and functionality)
extends beyond a single industry and involves partners 6. Product system (product extensions that surround
including the iTunes software suite, an on-line music store an offering)
and third-party accessories to create an integrated music 7. Service (how you support your customers)
“solution” for consumers. 8. Channel (how you reach your customers)
9. Brand (how your customers perceive you)
Keeley believes in an interconnected world, platforms matter 10. Customer experience (intangible benefits received by
most. He defined a platform as an integrated offering that your customers)innovation.”
7

8. 1. 2.
The look of today’s business leaders ranges from traditional
blue suits of Bay Street bankers to the funky informality of
digital gamers, but the essential skills of great leadership
remain the same.
Leadership: Exactly what defines great leadership was the source
of hot debate among CEOs in this workshop where
management styles spanned the spectrum, but their shared
Establishing, living commitment to leadership and what it meant to business
Wisdom Exchange 2008 WORKSHOP
growth showed there was a lot of common ground.
and measuring For Ian Curry, President and CEO of DNA Genotek,
leadership starts with setting the course for both the
company and employees, and the cornerstone of this
the mission process is designing a mission statement.
“Lots of people don’t want to talk about mission statements
1. DON GIBBS because they think mission statements are too ‘artsy’ or high-
CHAIRMAN AND CEO level,” said Curry. “But our experience has been that it can
TARQUIN GROUP INC. be a powerful tool for the organization.”
2. IAN CURRY The proof of his approach may well be in the company
PRESIDENT AND CEO balance sheets. DNA Genotek, which manufactures and
DNA GENOTEK INC. markets a breakthrough DNA collection kit, has been lauded
by everyone from the World Economic Forum to TIME
magazine. Revenues and the number of employees have both
grown by 100 per cent every year for the past four years.
Corporate mission statements are often designed to include
everything and offend no one. But it can be more than that.
For Curry, the key is to make the mission statement meaningful
and a living part of the hearts and minds of all employees.
One hundred per cent buy-in is critically important.
To help accomplish this, DNA Genotek engages all employees
one-on-one in a ‘partial sentence exercise’ where staff
members are asked to finish an incomplete statements about
the company such as:
• “The things I value most at work are…”
• “I believe our mission is to…”
• “We will be successful when…”
• “I believe our customers are…”
• The key issues/standards we must maintain with
vigilance are…”
8

9. “
“ As CEOs we sometimes make too many assumptions
about what our employees know and don’t know.
“As CEOs we sometimes make too many assumptions about
what our employees know and don’t know,” said Curry. The
similarities and differences of the answers are discussed in
what Ian described as “getting what is in people’s heads on
paper,” and “100% participation equates to 100% buy in.”
In addition to achieving buy-in, the practice also has an
important result: clarifying what your employees think, know
and don’t know about your business.
According to Curry, the mission statement may appear
simple, but it should project the aim and direction of the Other points raised were:
company, and the intellectual/philosophical origins of these
goals. It should be clear, concise and doable. • How do you ask and impart employee opinion in a
company of 150 rather than 30?
The discussion broadened to cover on-going leadership • How are new values ingrained in larger companies?
challenges, such as motivating staff, planning for the • How does the company’s values and character change
future and coping with the impact of success. A number when the firm’s revenue goes up from $2 to $10 million?
of participants felt a mission statement was only part • How many companies had excellent mission statements,
of a complex set of requirements for business growth, yet failed?
including long and short term strategies, capable
and diligent execution and getting the right people “The mission statement should be under constant
on the bus. evaluation,” Curry said. It should serve as a benchmark
of the company’s success, built on questions like:
Others emphasized “company fit,” suggesting that no
amount of commitment to a mission statement was going • Would I recommend us to your colleagues
to be able to adapt an individual who simply did not fit the (customer satisfaction)?
culture. One CEO said his experience was that employees • How would I rate our company against its mission
tend to “self edit” when a company vision does not coincide statement (1-10)?
with their own. Another pointed out that peer pressure is a • Does the mission statement translate into customer
factor in bringing people together. Another issue was how satisfaction?
a firm’s vision impacts recruiting and retention “in this age
of difficult staffing challenges.” Curry suggested ways of keeping the mission alive, such
as sharing testimonials and ‘mission statement stories’ from
Don Gibbs, a successful financier and leader in a customers and end users. He underscored the importance of
spectrum of firms, from start-ups to acquisitions, has bringing people together, aligning their vision and allowing
been instrumental in building several of Canada’s most them to collectively respond to change. “Mining the visions
successful technology companies. Gibbs believes, “To of your employees is the most critical component of this form
really learn a business, you have to live and die in it.” He of leadership,” Curry said, “and finding tangible ways of
started his career with Leigh Instruments and then moved engagement to keep the mission alive day-to-day.”
to Mitel Corporation as its CFO, where in eight years, he
helped the company go public and grow in sales revenue Although approaches differ, the goal of workshop
to $250 million. As CFO of Cognos Inc. he successfully participants was the same…to lead and grow their
took it public. Today, as Chairman and CEO of Tarquin companies. For Genotek, its mission statement has
Group Inc., Don leads by example and plays a primary proven to be a powerful tool in helping to achieve
role in the day-to-day efforts of his firm. the company’s impressive growth rates.
9

10. 1. 2.
For most employers, finding and keeping good people is one
of the toughest challenges, and the competition for talent is
becoming even tougher.
Dr. Michel Jullian of Ottawa-based OCM Manufacturing Inc.
Recruiting and has been through the hiring process numerous times and has
developed some innovative approaches and effective solutions
to improve his firm’s recruitment and retention (R&R) success rate.
retaining talent:
Wisdom Exchange 2008 WORKSHOP
OCM, with a small management team and staff of 50,
provides turnkey electronics manufacturing services for small
Innovative and mid-sized companies whose products include electronics.
Customers are in the transportation, industrial, consumer,
medical, oil and gas, mining, security, and instrument and
approaches controls sectors.
The three top R&R considerations at OCM are attracting
and solutions and retaining good people, satisfying a diverse workforce,
and maintaining both quality and processes through good
ongoing performance.
1. DR. MICHEL JULLIAN, PANELIST
PRESIDENT & CEO One challenge OCM grappled with, once they attracted the
OCM MANUFACTURING INC. right potential employees, was that the hiring process did not
screen the candidates very effectively. “There are always some
2. MICHAEL PALMER, PANELIST people who are great at interviews,” said Jullian. “They’re per-
VICE-PRESIDENT AND GLOBAL LEADER sonable, they say all the right things, but then they’re not very
TALENT ACQUISITION PRACTICE good when they get the job.”
CERIDIAN CANADA
In 2005, OCM went through a corporate re-branding
process to heighten its “brand name recognition” and attract
both customers and talent that would be a great fit. A new
corporate identity, website and media presence were
created to increase OCM’s competitiveness in the local
market, both as a supplier and employer.
OCM’s revamped approach to hiring incorporated an industrial
psychologist who developed standardized questions, a
multi-stage interview process that includes three interviews with
three different people, asking open-ended questions, and having
candidates complete a computer-based behavioural test on site.
For specialized positions, Jullian hires recruitment experts.
With employees ranging in age from Gen X to Boomers
of numerous mother tongues from many geographic regions,
Jullian understands the importance of satisfying the needs of a
10

11. “ “
People want to be treated fairly. If there is a survey in place
you can use to establish your wage rates, use it. We
have profit sharing and are very open in our communication
with employees.
diverse workforce. OCM has developed four broad solutions
to meet their diversified needs:
1. Open communication to understand each other
2. Recognize you can’t assess or reward everyone in the
same way
3. Provide a mixture of advantages (good wages, health
and dental benefits, lenient vacation schedule,
telecommuting, flex hours and job sharing, and perks
like cell phone, laptops, etc.)
4. Team building and social events Palmer and Jullian agreed that one of the most important
aspects of retention is engaging your workforce. Work has
“Innovative benefits should help staff meet their real needs,” to be meaningful to all generations; the millenials (currently
said Jullian. For example, recent immigrants who return to 18-25 years soon to be leaving university or college),
their native country for several weeks each year to visit family Generations X and Y as well as the baby boomers.
are offered a flexible vacation schedule that allows employ- “At OCM, we give quarterly updates on the business and
ees the “extra” time off without compensation. employees feel more connected because they can see
where their efforts can make a difference,” said Jullian. “By
“People want to be treated fairly,” he said. ”If there is a empowering employees with knowledge and training, they
survey in place you can use to establish your wage rates, engage in the company’s success.”
use it.” He adds, “We have profit sharing and are very
open in our communication with employees.” After you have found and hired the right person, one of the
best ways to keep them is to make sure they get the right
Michael Palmer of Ceridian Canada, a thriving HR/Payroll first impression of the company. OCM has a Great Start
outsourcer for many SMEs—primarily in high technology, program, where a buddy is on hand. Everything is set up
financial services and telecomm—talked about the to welcome and show new hires the ropes, which helps them
importance of tailoring the message to find the candidate. to confirm their choice. The program focuses on company
culture and helps employees to live and experience the
Palmer said, “You can’t just post a job ad and pray employment brand.
that you’ll get good candidates. Recruiting is not about
posting and praying. Recruiting is figuring out what With its employment brand well underway, OCM continues
you need and strategizing where to find people to fill to leverage its talent pool to communicate new openings and
that need.” build its candidate network. The firm’s Chinese operation was
launched four years ago and Jullian continues to promote the
Taking it a step further, “you have to market tough to fill company through OCM’s website, newsletters and white
positions, not just advertise to fill them,” he advised. To papers. With HR processes in place, OCM tracks candidates
attract the right people and tailor your recruiting messaging against a specific requisition and metrics. The policy is to find
and vehicle to various audiences, Palmer offered the a way to respond to each and every candidate: when they
following tips: apply, when they are declined and they are selected.
• Analyze your workforce and break it down into categories
if possible With a greatly improved R&R success rate and quality /process
• Identify what elements of the job and benefits are impor- solutions in play, OCM now “avoids the black hole” when new
tant to applicants in particular categories positions become available and Dr. Jullian continues to foster an
• Determine where certain types of candidates are likely to environment where every individual can experience his/her
seek employment contribution to the company as a way of life.
11

12. 2.
1. 3.
“Going green” has suddenly slipped into the mainstream,
taking many companies and consumers by surprise. Now,
many leading growth firms are exploring what it all means
and how they can begin to reduce their carbon footprint.
Capitalizing Niel Hiscox, publisher of Green Business magazine, is
watching the impact unfold at companies in many sectors.
The whole discussion, he reports, has shifted from ‘green’
from green: advocacy to a hard-nosed analysis of ROI (return-on-investment),
Wisdom Exchange 2008 WORKSHOP
strategic implementation and decision-making issues.
An emerging New companies, such as Patagonia clothing, are emerging
that have sustainable materials and processes as a core part
of who they are and how they do business.
business paradigm
Major corporations, such as Interface, the world’s largest
carpet manufacturer, are transforming themselves into widely
1. NIEL HISCOX, MODERATOR
recognized world leaders in sustainability practices.
PUBLISHER
GREEN BUSINESS MAGAZINE Still other companies are devastated when they discover that
they have huge liabilities in terms of environmental clean-ups
2. TOM HEINTZMAN, PANELIST for issues that no one had even thought about ten or twenty
PRESIDENT years ago.
BULLFROG POWER INC.
“Everybody agrees that sustainability is going to be the
3. THIBAUT MILLET, PANELIST next big thing because it changes the shareholder value
SENIOR MANAGER paradigm of business costs and risks,” said panellist
Thibaut Millet from Deloitte and Touche. “People are
CORPORATE RESPONSIBILITY
beginning to realize that sustainability has the potential
& SUSTAINABILITY SERVICES for both value creation and value protection.” Defined by
DELOITTE & TOUCHE Millet, “sustainability is simply how a company manages
its business to generate shareholder value, while having a
positive impact on the community, and minimizing adverse
impact on the environment.”
The value-creation concept was born out in a comment
from the president of a firm providing packaging and
crating for all industries. “Customers want less packaging,
customers want shorter supply chains, customers want
branding, and customers want to get an edge over their
competitors. This has actually driven down our costs,”
he said.
Niel Hiscox related how consumer behaviour and ‘going
green’ are not always clear. He recently attended a media
briefing at the Canadian auto show where presidents of the
12

13. “ Sustainability is simply how a company manages its
business to generate shareholder value, while having
a positive impact on the community, and minimizing
adverse impact on the environment.
major car companies participated in a panel discussion on
“
green initiatives. “These senior executives are seeing a very
big disconnect between consumer awareness of sustainability
issues and any connections with their purchasing decisions,”
stated Hiscox. “Consumers are saying ‘yes, environmental
issues are very important to me,’ then they are getting in their
SUVs and driving away.”
“The continuing escalation of gas prices may change
consumer response, but price pressures are not the only
drivers of behavioural change,” said Tom Heintzman, In exploring green opportunities, Hiscox advised it’s not just
President of Bullfrog Power Inc. Launched in 2005, Bullfrog about products. It’s also about processes, how you manage
provides residential and commercial customers in Ontario infrastructure, waste, and looking through the entire
and Alberta with clean, green power from 100 percent organization to identify, implement and sustain green
renewable sources such as wind power and low-impact initiatives. “Part of it means understanding your own customer
hydro facilities. base to see what their concerns are about you,” he added.
“Customers are always looking for leaders. In addition to
“There is a diverse range of companies that have chosen to financial gains, your green image can help you to head a
go green and a long list of reasons why,” said Heintzman, market, keep customers and be perceived as an innovator,”
who talks with businesses every day about sustainability Hiscox added. All of these merits can add to the bottom line,
issues. For some companies, their motives are altruistic: they which one CEO attested to, having won an environmental
simply want to reduce the environmental impact of their award that resulted in a “big payoff” for the company.
activities. Others may want to earn a position on the Dow
Jones sustainability index. Still others see it as a competitive Some participants found themselves struggling to balance
advantage because they can add “green” points to their their desire to go green with practical concerns. “I take our
customers’ value chains. social responsibilities seriously and we are interested in
having a product that is as environmentally friendly as
“More and more, we’re hearing that the impact on possible,” said the head of a specialty manufacturer of a
internal staff is as important as the external impact on comfort and safety product for men and women. “Then I
customers,” Heintzman said. “In terms of attracting top look at components that go into our products. Some of them
talent, people want to work for companies that reflect travel 10,000 miles to get here. We are green in many
their personal beliefs.” ways, but how can I go to my customers and say this is a
green product?” The panel recommended transparency is
Green initiatives are no longer just for activists, as the best policy.
environment and social issues are, more and more,
becoming a public concern and critical factor for For Ontario manufacturers wishing to reduce their greenhouse
government policy and corporate strategy. A critical question gas emissions, Heintzman offered a simplified outline:
is “how to differentiate your company?”
1. Gather baseline data on energy use, use of recycled
According to a survey of 500 business executives conducted materials etc.
by Grant Thornton, “Company executives believe that 2. Reduce consumption through efficiencies, conservation,
corporate responsibility programs can positively impact their new technologies, etc.
business and help achieve strategic goals (…) 77 percent 3. Buy green products and services to replace those that
said they expect corporate responsibility initiatives to have you can’t eliminate.
a major impact on their business strategies over the next 4. Offset your greenhouse gases, as a last resort, by
several years.” purchasing carbon credits.
13

14. Financing the growth of high performance companies has always been
a challenge, but today’s economic and financial market conditions are
enough to test the most optimistic entrepreneur.
Amidst these somewhat discouraging and contradictory conditions,
16 CEOs from Ontario firms sat down to discuss financing growth.
Breaking from the usual workshop format, the moderators rearranged
the seating into a large square so everyone could talk face-to-face .
1. 2.
Financing growth:
Reports from the front lines
1. DENNIS ENSING, MODERATOR ‘You’re our partner. We want you to help us
PARTNER find additional financing.’ That’s when they
WISE MENTOR CAPITAL brought in BDC.”
Wisdom Exchange 2008 WORKSHOP
2. DENIS GODCHARLES, MODERATOR Business Development Bank of
MANAGING PRINCIPAL Canada (BDC)
INTERIS CONSULTING INC. “Our experience with BDC has been quite
good. Our bank really loves working with
To kick-start the discussion, co-moderator BDC. We find that it’s not too intrusive, the
Dennis Ensing pitched out the provocative conditions are quite reasonable.”
question: “So, how are banks
treating you these days?” Export Development Canada (EDC)
“The EDC is also a good way to check a
Following are fly-on-the-wall quotes from company’s credit. If EDC won’t insure them,
participating CEOs with the names omitted. you may not want to get involved.”
Commercial banks Private equity
“We’ve found that if you’ve got good EBITA “VC’s (venture capitalists) want 25–40%
(earnings before interest, taxes, depreciation return per year. Angels want 60%.”
and amortization) you can get pretty
good deals.” “The question is, what do you give up? Everyone
thinks the magic number is 50%. It’s not. It all
“We recently went bank shopping and I was depends on how the deal is structured. The key
really surprised that they all came back with is your relationship with your investors and your
very different platforms, very different agreement with your Board.”
approaches. Some banks won’t look at
SRE&D financing credits, others will.” Words of wisdom
“You have to ask yourself—Is money really
“We put a lot of effort into our relationship the missing engine of growth? Sure, it’s an
with our bank. We’ve been with them 12 easy answer. But sometimes you need
years. We tell them that, every two years, innovation or new management. Sometimes
we’ll benchmark them against the best offer it’s really important to step back and think
we can get. At one point, we told them about it.”
14

15. The Ministry of Small Business and Entrepreneurship
delivers direct support to Ontario business leaders to
help small and medium sized companies (SMEs) identify
and access critical information, key resources and expert
advice needed to overcome obstacles or pursue new
growth opportunities.
Bob Marrs, Director, Business Advisory Services with Dennis Ensing, Partner,
Wise Mentor Capital and Dr. Michel Jullian, President, OCM Manufacturing Inc.
Wisdom Exchange 2008 MINISTRY PROGRAMS AND SERVICES
Business Advisory Services:
Your partner for growth
As a sounding board to provide unbiased, government funding programs, and information on
objective and strategic advice, the Ministry’s other programs of interest to Ontario manufacturers
team of experienced business advisors located and exporters. www.sbe.gov.on.ca
in twelve regional offices across Ontario have
assisted literally thousands of companies over Leading Growth Firm Series
the years. Business advisors have a network of The Leading Growth Firm Series of publications
business contacts in both the pubic and private researches and promotes the effective
sector to assist with market intelligence, management practices of CEOs and presidents
R&D programs, export assistance, support of successful Ontario firms. Report 16: Thinking
for innovation and new technology, and Lean…Improving performance, customer
expansion plans. satisfaction and the bottom line was released in
April, 2008. The series delves into a range of
With expertise in business planning, finance, critical business issues and shares best practices,
exporting, and more, one of your local advisors growth strategies, tactics and perspectives through
will get to know your company, assess its interviews/profiles of CEOs of successful Ontario
operations and identify issues that are crucial to SMEs, insights from topic experts, lessons learned
your firm’s growth. Business Advisory Services from corporations and resource information.To
connects you to government programs and access all of the reports, visit www.sbe.gov.on.ca
services, networking, and growth opportunities (click Leading Growth Firm Series).
through events, workshops, seminars,
publications and one-on-one consultation. The Ontario Oil Sands Connection
Business Advisory Services is working to connect
The Wisdom Exchange qualified Ontario manufacturers and suppliers
Now in its 14th year, the Wisdom Exchange is with the right Alberta Oil Sands opportunities.
“the forum” where CEOs and presidents of Alberta Oil Sands development is creating
Ontario’s leading growth firms meet to hear from demand for manufactured products from across
top business strategists, share knowledge, learn North America, with an estimated $170 billion in
best practices and make valuable business oil sands related development. With a focus on
connections. For information on past Wisdom metal fabrication and industrial machinery,
Exchange events, visit www.wisdomexchange.ca equipment and service sectors, Business Advisory
Services has developed the means to connect
The Breakfast Series you with a pipeline of opportunities. One of our
Business Advisory Services just launched a series Business Advisors will consult with you to assess
of breakfast sessions to support Ontario business your current position and help develop your
leaders by exploring timely growth topics and Oil Sands Market Development Plan.
providing the latest on government programs and www.sbe.gov.on.ca (Click Grow Your
initiatives. The first three events in southwestern Business/Talk to Experts).
Ontario (June, 2008) feature a presentation/
discussion on Lean and how it is reshaping Let Business Advisory Services help
manufacturing, updates on two new Ontario to put the pieces together for you! 15

16. Contact:
Ministry of Small Business
and Entrepreneurship
Business Advisory Services Branch
Partnership and Business Development
56 Wellesley Street West, 4th Floor
Toronto, Ontario, M7A 2E7
www.sbe.gov.on.ca
Printed in Ontario, Canada on recycled paper © Queen’s Printer for Ontario, 2008