July 2009 Okanagan Business Examiner

INSIDEFighting Kilroy

Any FUtUrE For thE Motor giAnts?

Flight plAn For KEloWnA's Airport

Vernon’s Sizzle in a tough economy

BusinessExaminerthe Voice of Business in the okanagan

JULY 2009

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WHEN THE OVERWAITEA FOOD GROUP DECIDED TO INSPIRE THEIR FAMILY OF GROCERY STORES TO SAVE ENERGY, THEY KNEW THAT THEY WOULD HAVE TO MAKE ENERGY A TRUE PRIORITY�AS IMPORTANT AS CUSTOMER SERVICE AND FOOD SAFETY. So they started a comprehensive education program for team members, and set rigorous energy targets at each and every one of their stores, including Save-On-Foods, Overwaitea Foods, Cooper’s Foods, Urban Fare, and PriceSmart Foods.

With such a stellar commitment to conservation, you can see why OFG deserves to be recognized as one of the 2009 Power Smart Leaders—the province’s brightest lights in clever energy management.

It’s all a part of this year’s Power Smart Excellence Awards, where we celebrate inspiring work toward the future of energy in BC. And there’s plenty to be inspired by, as large and small organizations across the province discover that saving energy is something that’s definitely worth celebrating.

Get recognized for your commitment to energy excellence. Find out more at bchydro.com/awards.

OVERWAITEA FOOD GROUP 2009 POWER SMART LEADER Steve van der Leest, President

REACHING NEW HEIGHTS IN ENERGY CONSERVATION


PublisherCraig [email protected]

Managing EditorDevon Brooks250.878.1782editor@businessexaminer.cawww.businessexaminer.ca

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BusinessExaminer

JUly 2009

ISSUE HIGHLIGHTS

Prosper Media Group Inc.

INSIDEFIGHTING KILROY

MOTOR GIANTS FUTURE

ECONOMIC FLIGHT PLAN

Vernon’s Sizzle in a tough economy

BusinessExaminerThe Voice of Business in the Okanagan

Going for the GreenLake Countrys’ Multi-Million Dollar Dilemma

JULY 2009

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Contributing Photographer Shawn Talbot | 1.888.317.1403 | [email protected] | www.shawntalbot.comContributors Dominik Dlouhy | Deanna Brooks | Nigel Brown | Shelley Gilmore | Gord Shepherd | Robert Smithson | Richard ZoeliMailing Address P.O.Box 32034 RPO, 2151 Louie Dr. West Kelowna, B.C. V4T 3G2 | Fax 250.768.8241 Subscription Rates 12 issues annually | One year: $27.00 | 250.863.4636Distribution The Okanagan Business Examiner is published monthly at Kelowna, BC by Prosper Media Group Inc. Copies are distributed to businesses from Osoyoos to Greater Vernon. The views expressed in the Okanagan Business Examiner are those of the respective contributors and not necessarily those of the publisher or staff. PUBLICATIONS MAIL AGREEMENT NO. 41835528 RETURN UNDELIVERABLE CANADIAN ADDRESSES TO: P.O. BOX 32034 RPO 2151 LOUIE DR. WESTBANK, BC, CANADA V4T 3G2

DEPARTMENTS

Reading tea leaves for GM & Chrysler

The Future seen from today

Cover -Vernon rebuilds its business philosophy

Airport take off

Kilroy is everywhere – the graffiti fight

Managing Editor | Devon Brooks | Photo: Shawn Talbot

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Are you excessively happy?

Recession Survey Your answers

Calendar of Events

When you are unhappy with a business it is usually because of miscommunication or bad service. Miscommunication is an accident; bad service comes about when someone in the company doesn’t care.

In the middle of a recession it is all the more surprising to receive bad service because the economy is uncertain, consumers are pulling back, spending is down.

Perhaps the extraordinary bad service I received recently is a sign that local businesses still have it relatively easy, that the Okanagan has been sheltered from the worst.

As a business writer I know many service people do amazing things for their customers, sometimes while working under a lot of pressure. My natural instinct is to give a company benefit of the doubt, but when things are done particularly badly I don’t pretend they aren’t happening.

A year ago I purchased a new LCD television from Visions in Kelowna. Late this winter I detected a problem with it so I contacted Visions. They promptly referred me to a warranty repair service, Digital Generations

who came out, inspected my Sharp brand TV and my bill of sale.

They agreed the TV was faulty, my warranty was valid, and assured me that they would have the replacement part in a couple of weeks.

That was mid-March.

In mid-April I called again, having heard nothing and was told they would contact me.

In mid-May I received the same answer.

In late May Digital Generations told me Sharp wouldn’t send the part and I should call them to find out why.

This perplexed me as I don’t believe the consumer should ever have to call the manufacturer to find out why parts are, or are not, going to a repair service. Instead I went back to Visions to obtain some satisfaction.

They assured me they would look into it. By early June they assured me the part was on its way.

In the June issue we suggested that business coach Dave Huck had a fondness for team sports. The little writing gremlins took out the word that was meant to be there –building– and replaced it with ‘sports’. So, for the record, Dave Huck loves team building, but is not so keen on team sports. And we will keep working on the removal of the gremlins from our heads.

Erratum

Visions of irrelevant customers

CONTINUED ON PAGE 4


The news about GM and Chrysler both declaring bankruptcy and struggling to survive is no longer news at all. Chrysler has come out of bankruptcy in a shotgun marriage to Fiat while GM is still redefining itself.

GM will become, at least temporarily, a government creature with a portion of union ownership in the mix.

With billions in government loans (which no one expects will be repaid making them in effect, gifts), much leaner work forces and dealer networks and reduced debt loads the two new companies have a fighting chance of survival.

Survival is not certain though.

The two newly restructured companies have different strengths.

For the new Chrysler the debt load will be only marginally reduced. A BusinessWeek article estimated debt there would drop from $23 billion to about $21 billion. GM’s debt reduction is much more substantial: going from $67 billion down to between $10 and $20 billion.

Professor Tony Faria is with the Odette School of Business at the University of Windsor. In an interview with the Business Examiner Faria said, “Each of the Detroit-3 companies has cut their operating costs considerably. By what percentage General Motors

has cut its costs depends on how far back you want to go. GM began trimming costs well before they went into bankruptcy.”

He adds, “Over the past several years, GM has likely cut their operating costs by 40% or more. In the past year, GM has likely cut their costs by nearly 20%.”

On Chrysler, Faria says, “It is more difficult to identify Chrysler's cost cutting as, under Cerberus [Chrysler's former private owner], Chrysler was not presenting financial information. It is likely that Chrysler has cut their costs by a bit less than GM - maybe 10 to 15% in the past year.”

When Chrysler sought out government backing in the 1980s it was partly due to the fuel cost crisis that made full size domestic vehicles seem like expensive dinosaurs. It is no coincidence that hugely inflated fuel bills in 2007 and 2008 have pushed Chrysler, and GM, over the brink.

Here is where Chrysler’s new Fiat ownership could make the difference. Fiat doesn’t exist in North America but it has rebuilt itself in Europe where small, fuel efficient cars are a necessity.

Even though Fiat isn’t pumping money into Chrysler it will provide vehicle platforms for Chrysler showrooms by 2011. GM on the other hand is going to have to

rebuild from scratch.

Talking to the Windsor Star in May auto consultant Dennis DesRosiers said Chrysler would need miracles to survive because Americans have never embraced smaller cars.

That’s not quite true.

The Volkswagen Beetle and the Honda Civic rose to prominence in the U.S. during times of relative affluence and cheaper prices, so small cars have caught on.

Despite fallen oil prices caused by the recession, the recession has also hurt many Americans who may be more willing to drive more fuel efficient autos. Certainly Obama is pushing for that anyway.

With their costs cut, the question of survival depends on how quickly the two companies burn the cash they have received in loans, and whether they can rebuild market share.

BusinessWeek estimated the new, leaner GM cash burn will be about $8 billion a year. Professor Faria suggests Chrysler’s cash burn will be $6 billion. Given the multi-billion loans given to GM it has perhaps six years of life left at those rates. Chrysler received smaller loans so it has less time, maybe four years.

What the companies do in that time to rebuild customer confidence is the really hard part.

Rebuilding market share depends

entirely upon convincing customers that they are building relevant vehicles and that their struggles with quality are behind them.

Strangely enough Ford, Chrysler and GM have all made substantial strides in improving their reliability and quality recently, but they aren’t getting much credit from the consumer. A customer burned 12 or 15 years ago may not be willing to bet $20 or $30 thousand on a new vehicle to find out how much things have improved.

According to Faria, “Even though Ford and GM have been achieving quality improvements relative to the Japanese, the consumers don't see them as being equal yet. It will take a number of years of GM and Ford achieving more significant quality gains (on a year over year basis) before consumers accept the quality as being equal. It will also take a number of years yet for the Detroit-3 products to catch up to the Japanese in resale value.”

Both GM and Chrysler say the economy will recover, Americans will be buying autos again and that they will be profitable again by 2012 or 2013. Even if they aren’t profitable before then their burn rate should be reduced enough to extend the life line.

Faria is somewhat optimistic. He says, “I feel that GM and Ford will be here for sure, and making profits in 2015. It is harder to say for

Chrysler. If Chrysler makes it through 2012, they will be here in 2015. If Chrysler is going to fail, it will be in the next two years.”

Professor Faria also believes that if they don’t get it right, this is their last shot. “If any of the companies fail in the next several years, that will be it. The U.S. and Canadian governments will not further bail out GM or Chrysler if they fail again. I also do not believe that the governments will bail out Ford if they run into difficulties.”

The sub-prime crisis combined with the likely failure of at least two of the formerly “big three” were a perfectly bad combination of events. If both had been allowed to fail it is likely that major parts suppliers could have folded, followed by Ford, not to mention the severe repercussions for the entire U.S. economy.

If Chrysler or GM go to the wall again in two or three years those other circumstances will have changed. So, Faria says, “There have been enough auto…failures to this point, with more coming in the next three months, that a failure of one of the Detroit-3 will not be as big a calamity to the economy as it would have been a year ago. While presenting a short term problem, the U.S. and Canadian economies can survive a failure of one of the Detroit-3.”

gM & Chrysler’s four year life lineBy Devon Brooks

By late June I had no more patience left. I fired off a letter detailing the matter to Sharp, who requested I call in to deal with the matter.

After explaining the situation at least four times to different customer service people I was shuffled over to Sharp Canada where I was told that Digital Generations was not an authorized repair centre.

Furious, I called up Visions to find out why I had been referred to an unauthorized dealer. The Visions manager insisted that Sharp was in error, telling me that Digital Generations did all of their warranty work. “There is nothing I can do,” he told me. His tone of voice and word choice made it clear he had no interest in talking to me any more, or dealing with my problem. I would have to deal with Sharp.

I went back to Sharp, assuming that in the large company the bureaucracy’s left hand didn’t know what its right hand was up to in the warranty section. Mostly this was because Visions’ manager told me he’d talked to Sharp and had heard the part for my TV was about to be delivered.

Another Sharp customer representative repeated that Digital Generation could not do the work because they weren’t authorized. Unless I was going to pay for it out of my own pocket, I was going to have to start over with a different repair company.

Finally losing my last vestige of patience I cut the young man off, saying that when I hung up the phone, if I didn’t have some satisfaction I would be proceeding with a small claims court case.

I was transferred further up the managerial line.

The Sharp manager put me on hold while he personally phoned their repair depot to confirm Digital Generations status. It could not do warranty work he told me.

Upon my insistence he put me into a three-way conference call to Visions where he, I and the manager could talk.

Amazingly, Visions insisted that Digital Generations was authorized even as the Sharp manager insisted they weren’t.

After half a minute of stalemate the Sharp rep gave up, and made another conference call to the authorized dealer in Kelowna, Teltronics Service Centre.

At the end of this I have no way of knowing whether Sharp is very lax about letting dealers know who is allowed to do warranty service or if Visions is lax about checking.

As a consumer, and a journalist I am simply amazed that a retail manager’s attitude about fixing my TV was not a concern of his. All I know for sure is that as the company I dealt with, and gave my money to, Vision's manager has made an extraordinary effort to make sure I am not a repeat customer.

PS - Before writing this I e-mailed Visions’ head office to see what they would say or do. Two weeks later, as I write this, the company has felt no need to reply. In tough economic times every customer should be more valuable than ever, but apparently not at Visions.

CONTINUED FROM PAGE 19


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With all the ‘reality checks’ going on in the world, how can anyone say they are “excessively happy”? Especially when that person has undergone a major life-transition from community leader and business person to crew member in a town’s sanitation department…more commonly known as garbage collection.

I was looking for directions in Banff a few weeks ago and spotted a man decked out in Tilley hat, dark glasses, bandana and shorts. He was emptying garbage containers.

I made a beeline for him seeking directions. After thanking him for his help I asked how he was doing. Almost apologetically he said he was “excessively happy”.

I asked what had led to his euphoric state of mind.

He extended his arm to shake hands, introducing himself as ‘Bill’. He said he was retired.

Here was my first clue. Through my work, I’ve learned the expression ‘retired’ has as many connotations as there are people.

Bill and his wife Fern, both aged 52, had operated a retail store, one of Eastern Canada’s largest bulk food businesses. It had been the perfect fit. Both ‘people-people’, the couple savoured the interaction with customers and the sense of community the store provided.

After a decade of frequently working seven-days-a-week with long hours, always needing to be ‘on’ for clientele and suppliers—all that had initially appealed, began to fade. Bill knew things had really changed for them when they began avoiding customers on the street, in an effort to seek some time alone.

Bill and Fern agreed to start searching for a shift back to “happy”.

Bill and Fern’s transition began with some serious planning. Over two years they started to simplify their lives and gave lots of stuff away. They did the soul searching and analysis necessary to complete what I call the Good Life Inventory…creating a plan that fully detailed where they wanted to live, how to find the right work, and what it looked like for them.

It was obvious that he’d approached the transition seriously.

Couples too frequently take a laissez faire approach to retirement, assuming a new, pleasurable lifestyle will just emerge. Another couple I know, Glen and Ann thought their new found freedom would be a fulfilling mix of grandchildren, travel and renovations. Soon escalating home repairs ate into the travel budget and they found it difficult to integrate their adult children’s hectic work schedules with their own needs.

As for Bill and Fern, with their goals for the second half of life well defined, they handed over their store, said their community good-byes, enjoyed a visit from the town’s mayor—and headed west to Banff, where two of their adult children live.

On arriving, Bill dropped by the Banff Park’s employment office asking if they had any work for a retired guy.

He wanted to be engaged in work, but not work cluttered with the needs of co-workers and customers. He wanted the opportunity to generate an income while having time to think and continue his exploration of what brought him happiness and meaning.

Meanwhile Fern, clear that her inherent caring and pull to service brought her personal satisfaction, found work at a retirement home and, with their kids’ help, they quickly integrated themselves into the Banff community.

Bill says he is a naturally happy, people kind of guy, which was key to his initial retail success. His epiphany occurred when

he realized he had lost the desire to be around people. He could no longer say he was truly happy and felt he never had enough quiet time to fully understand what had changed, or was missing. Sharing this with Fern and being committed to creating and working the plan to reenergize their lives was the first step.

Bill has gone from being surrounded by people, to working alone, surrounded by natural beauty. He takes no work home, reads more and is exploring ways to feed his spirit. He said he skied all winter and is exploring a new love of fly-fishing.

In the twenty-first century, this stage of life is emerging as significant and distinct. Demographers describe this new chapter in life as characterized by people between 50 and 75 who are considered neither young nor old. This demographic is challenging cultural definitions of strength, maturity, power and sexiness.

This age group is also challenging traditional work-life and retirement transitions. The status quo no longer applies. They want to be more, create more and do more—but, on their own terms.

Just as successful businesses very much depend on innovative planning. Bill used his business knowledge to develop a clear personal transition and action plan that featured measured risk and vulnerability in order to test out a new chapter—which is unlikely to be his last.

The needs of mature employees at the height of their responsibilities and knowledge in the last 15 years of their working life will be crucial to the success of every business as the baby boomers age. Nigel Brown, the principal of Life Planning Matters, coaches individuals and corporate groups on this transition from work to part-time work or retirement. T: 250-860-5408 [email protected]

THE gooD lIfEINVENToRYIn this first instalment of a regular column on going from work to retirement, transition coach Nigel Brown will explore what employees and employers should think about to make older workers, both before and after retirement, happy and productive.


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…Helping Okanagan Businesses BusinessExaminer

The Voice of Business in the Okanagan

BusinessExaminer

the Voice of Business in the okanagan

A survey sent out to Okanagan businesses on the impact and duration of the current recession yielded a cautious optimism on the part of a bare majority of businesses surveyed.

The first two questions asked if the recession had affected their business, and, if they had lost business on account of it. Intuitively one might expect both answers to be nearly identical, but that is only partly correct.

The ‘4’ and ‘5’ answers, meaning a very strong effect was felt, is almost the same for both questions: just over 37% say the recession has strongly affected their business, and 35% say they lost quite a bit of business.

Peter Jeffrey of FormaShape in Kelowna has definitely felt the impact. The company produces water slides and what it calls its “architectural side”, which are the outside signs and design elements seen at gas stations. Sales are down.

He says it’s not all bad news. Faced with shrinking revenues the recession “goaded us to bid on products in other places.” Right now they are looking at custom one-off products for the film industry. Jeffrey says, “That’s a market we wouldn’t have dreamt of looking at before.”

The other end of the scale on those first two questions produced quite

different results. A score of ‘1’, meaning there was virtually no effect on their business, was given by only 12% of respondents, but 35% said they had lost no business because of the recession.

This suggests that while more than a third of the respondents have not lost sales or revenue, there are other impacts.

The Digital Art School says the recession has brought them more business. This makes sense as, in tougher times more people will go to school or upgrade their skills to enhance their chances of getting a job.

Another business doing well in this recession is Donald Robichaud’s Floodlight Consulting. Most companies experiencing a strong downturn, he believes, got used to the good times of the boom economy and didn’t reinvest through marketing. “Those that are waiting for the phone to call are the ones suffering. The sales are there to be made and those that understand it takes longer to close leads know they need to have more leads and contacts.” Robichaud says his business was up 18% in May over last year and expects 2009 to be up by 15% over 2008.

On the question of marketing and advertising 59% say they have not spent any more money this year, but this result is hard to interpret. Companies with well developed marketing plans, as Robichaud

points out, may not need to increase their budgets. Others may be cutting expenses including advertising, to keep costs down.

Robichaud also believes that the Okanagan is buffered somewhat by the large number of retirees still wanting to move here who will help to keep the economy going.

Responses to the question of employment suggest that business owners would seem to believe he is right. Less than a quarter of respondents (22%) say they have laid anyone off. Looking ahead 71% feel it is very unlikely they will be laying anyone off this year even though only a slim majority (56%) believe the worst of the recession is over. A nearly identical number (55%) believe their sales, if they declined, will recover as the year goes on.

Greg Salloum is the owner of the Best Western Inn in Kelowna. He is a nay sayer on the immediate prospects for the economy. He explains, “Two reasons that lead me to believe this are: How can the solution to our problems be also the cause of our problems? Cheap money. Second, there is another wave of mortgage renewals coming in the U.S. that is a bit larger than the last one that caused the recession to begin with. So, while I am generally still an optimist, I am being very cautious these days.”

REcESSIoN 2009 The Okanagan Impact Survey Results

1. How strongly has the downturn affected your business?

1 11.76%

2 35.29%

3 15.69%

4 15.69%

5 21.57%

n/a 0.00%

2. Have you lost business because of the downturn?

1 35.29%

2 23.53%

3 3.92%

4 15.69%

5 19.61%

n/a 1.96%

3. Have you laid off staff?

Yes 22.45%

No 77.55%

4. Do you believe you will have to lay off staff before the recession ends?

1 68.63%

2 1.96%

3 15.69%

4 0.00%

5 3.92%

n/a 9.80%

5. Are you spending more on marketing or advertising to bring in new customers?

Yes 42.86%

No 59.18%

6. Do you believe the worst of the recession is over?

Yes 56.00%

No 44.00%

7. Do you expect your sales to recover this year?

Yes 55.32%

No 48.94%

8. Do you sell primarily to consumers, government or other businesses?

Consumers 47.06%

Other Businesses 45.10%

Government 7.84%

Note: some totals do not add up to 100% because of rounding.

How strongly has the downturn affected your business? Have you lost business because of the downturn?

An answer of '1' indicates this did not affect a business, while '5' means it affected it most strongly.


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The term “self promotion” often carries a negative connotation – and with good reason. No one enjoys associating with someone whose solution to every problem starts – and ends – with the letter “I”. At the same time, unless others know what you can do – chances are they will never realize they need your services.

Particularly in tough economic times, making yourself memorable to employers, potential employers, clients, and business and networking associates is more vital than ever. You might know you are ideally qualified for certain positions and opportunities, but with countless other qualified professionals jockeying for these same positions, it’s not what you know that counts; it’s what others know about you. How can you advertise ‘you’ to the world without earning Sir Lancelot’s “C’est moi” reputation? Put simply: communicate a comprehensive value “package” of which you are one component – albeit a catalytic component. Below, are three communication components constituting this approach. The good news is that it works whether you are searching for a job, hoping to move ahead in your current position, soliciting new business clients, or working to expand your network of business and professional relationships.

Communicate your Capabilities

This is more than providing a laundry list of education, skills training, and professional experience. Anyone can type up a resume. A better way to communicate your capabilities is to do so in terms of achievements and accomplishments.

For example, if your vocation is sales and you closed a multi-million dollar deal with a major corporation, you might say you had the opportunity to work with a leading corporation to provide needed capabilities while at the same time helping your company set a new sales record (if, indeed, this was the case). And if you made the sale as part of a team, give credit where credit is due: “I had the honour to work with a highly talented sales team to seal the biggest sales agreement in company history.”

Doesn’t that sound better than “I closed this great deal and set a new sales record”? Facts melded with humility form a powerful combination.

Communicate your Vision – in Terms of Others

Perhaps your goal is to be the top-producing sales representative in the region. While saying as much might impress some people, it probably will do little to separate you from the hundreds of other ambitious sales reps.

A far better way to communicate your vision and make your qualifications more appealing in the process is to convey your goals in terms of others.

For example, if you know the way to achieve your goal is to sign on a certain number of major companies as new clients, say your vision is to help 20 (or however many) leading corporations maximize their IT capabilities by implementing the systems, software, and equipment that you offer. Already, you’ve shifted the direct focus away from you while still maintaining your role – i.e. your value – in producing the desired results.

Communicate your Value to your Audience

This step builds on the previous two by focusing your communication specifically on your target audience. In other words, pretend you are now interviewing directly with the hiring manager of an IT sales corporation, or you are having lunch with that prospective client whose business would skyrocket your sales figures. You could tell the prospective employer you’ve sold millions of dollars in IT services and can do it again, but the real question the employer or client is asking is “What can you do for me?”

A better way to communicate your value is to find out first what your audience’s goal is and then share how you can help him or her reach that goal.

If you are speaking with the head of an IT sales company, use your past sales success to demonstrate how you can help him or her grow the company’s market share and expand its sales territory.

tooting your own horn -

CONTINUED ON PAGE 10

how to communicate your value


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MoVERS &SHAKERSProvincial Cabinet includes more Okanagan

Kelowna MLA Steve Thomson, formerly of the BC Agricultural Council, has been named Minister of Agriculture. With Thomson’s indepth knowledge of agricultural issues he should be a natural in the position and will add to representation of local issues at the Cabinet table. A win for Thomson and the Okanagan. In addition West Kelowna Liberal

MLA Ben Stewart was appointed to the portfolio of Citizens’ Services and Minister Responsible for Multiculturalism and the Public Affairs Bureau. Stewart is owner of Quails’ Gate winery, a successful businessman and former chair of the BC Grape Marketing Board. This position will give the rookie MLA a chance to prove his skills and hopefully lead to positions with more clout in the future.

Google goes local

Google announced the addition of 21 more cities in Canada to be included in its Street View series for the Internet. The service, which is already available in nine other countries around the world, provides close-up, 360-degree views of city streets as they would be seen by someone driving along them. Originally the Internet giant only intended to cover 11 of Canada’s major cities. Among the additions in British Columbia are Kelowna, Victoria and Abbotsford. These views are part of the Google Map functions.

Credit Unions go ahead with merger

The Financial Institutions Commission of BC gave approval in mid-June to the merger of Valley First and Envision credit unions. The next step in the process is a membership vote, expected to take place in September. If approved the merger will become official on January 1, 2010. Langley-based Envision is by far the larger of the two, having $3.8 billion in assets to Valley First’s $1.75 billion; however under the terms of the deal the two credit unions will retail their separate names and corporate identities. According to Harry Biddlecombe, CEO of Valley First, “While we will be merging our balance sheets and back office operations, we’re holding on to the essence of what has made us successful in our respective markets.”

Realtors feed food banks

The Okanagan Mainline Real Estate Board recently turned 50. To celebrate the group committed itself to raising money for 10 food banks in the area. Some 320 people from the Board including sponsors, members and staff raised a total of $11,773, which was handed out to the following food banks: • Revelstoke – $400 • Salmon Arm – $1,695 • Sicamous – $400 • Vernon – $928 • Lumby – $400 • Winfield – $400 • Kelowna – $6,175 • West Kelowna – $575 • Peachland – $400 • Armstrong – $400

Brenda Moshansky of Coldwell Banker-Horizon Realty (left) presents a cheque for $575 to Faith Lanthier at the West Kelowna Food Bank.

The Kelowna Blog

Tourism Kelowna has decided to open the floodgates and let people comment on the city in their own words. In a press release, Nancy Cameron, Tourism Kelowna’s CEO, writes, “The nature of blogging is to provide a personal voice and character with which people can identify. The recommendations that come from blogs are attractive to consumers who ultimately place high levels of faith in the experiences of other people. The other benefit to having a digital media presence is that it is borderless: our fans throughout the globe can share their experiences through the blog.”

Canadian bankruptcies multiply

The Office of the Superintendent of Bankruptcy Canada says business is, unfortunately, healthier than its been in years. Bankruptcies among consumers and businesses are heading upward. Across the country the rate of bankruptcies in May was up 31% from the same month in 2008. Consumer bankruptcies are a little higher at 34%. Alberta, land of the oil-rich has been hit the hardest where bankruptcies have almost doubled, growing by 82%.

Directory service pain

Starting in August 411 Directory Assistance costs will increase to $1.50 for landlines and $2 for cell phone inquiries. An alternative, says mortgage broker Gord Shepherd, is the free Google Directory Assistance service, which can be reached by calling 1-800-GOOG-411 or 1-800-466-4411. Shepherd says the Google

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Johnston joins Raymond James

The Raymond James office in Penticton announced that Lori Johnston has joined their staff. Johnston has 16 years of experience in financial planning and is a Certified Financial Planner. In addition she has an insurance license, which allows her to combine two skill sets and give professional advice on advanced insurance and estate planning. She can be reached by e-mail at [email protected].

Young Drivers of Kelowna move

Young Drivers of Canada announced the opening of a new training centre in Kelowna. The company’s new facility is located at 105 - 1690 Water Street. Calum MacMillan, the new owner, says the old centre closed down in January and he just reopened three weeks ago. He adds, “I just want people to know that we are excited to be back up and running.” Class schedules will be up on the website (www.yd.com) shortly. As of early July the Young Drivers site did not have the new Kelowna operation listed.

Small business training program

The two senior levels of government have launched the ASPECT program, which is a grant to help with the training of low skill-level employees. Initially this pilot project will allow 1,000 people across the province access up to $900 each to help cover training costs. Eligible companies must have less than 50 employees and have a “growth employee”. A “growth employee”

is someone that does not possess a high school diploma or has a high school diploma, but lacks accreditation or essential skills. Each “growth employee” is only able to participate in the program once, however more than one “growth employee” from a business can take part in the program at the same time. More information is available online at www.aspect.bc.ca/about/asbetp.php.

Green consult

Lindsay Eason of Global Affinity Communications and Angela Reid of Tigress Ventures (also a Kelowna city councillor) have launched GreenStep Sustainability Coaching. Reid explains, “There are many companies in the Okanagan who want to go green, but don’t know where to start.” The coaching name was chosen because the goal is to set companies up to promote green within their own corporate culture by themselves rather than depend on outside advice. Eason says, “We help companies build capacity within their senior management and staff to identify and implement initiatives that will deliver social and environmental benefits that can be promoted to the community, investors and employees.” More information is available at www.green-step.ca.

Queen all tied up

The Fintry Queen is hanging about the dock, falling further and further behind in rent with little prospect of getting underway. The City of Kelowna says the Fintry Queen is now $45,000 in arrears for utilities and back rent. The Fintry was only rehabilitated three years ago, and sailed in 2007 and 2008 before apparently running afoul financially. The City says they are taking legal action to resolve the issue and free up the dock. -with files from Castanet

AC West moves in on Kelowna

A Calgary marketing firm, Applied Communications, has expanded with a new office in Kelowna, which will be known as AC West. Bob Anderson, VP will be the manager for the new Okanagan office. Applied’s president Dan McWilliam says, “During our 10-plus years in business, Applied has worked with more than two dozen clients in B.C. The idea of opening an office there has long been on our radar.” Anderson will not be focused solely on the Okanagan market. He has responsibility for increasing AC’s profile in the B.C. interior as well as the U.S. west coast.

Making tourism social

Allison Markin, Penticton’s former Arts & Cultural Officer is leaving public service to start a private company, All She Wrote Consulting. Markin says the new firm will focus on “merging media, marketing and social networks to promote cultural tourism.” One of her first contracts is with her former employer, the City of Penticton, where she is engaged in developing a social marketing campaign using Internet-based services like blogs, Twitter and YouTube to get out messages that visitors will want to hear. She is also teaching a course on this subject matter at Okanagan College this fall.

Valley First board additions

At its 17th AGM Valley First Credit Union announced the addition of three people to its board of directors. The three members were elected by acclamation and include Larry Stevens a Notary Public working in Princeton and Keremeos; Stewart Ladyman, former president of the Armstrong Spallumcheen Savings & Credit Union (which is now part of Valley First), and; Wayne Becker from Kamloops. All three have sat on the board before at one time or another.

HomeBuddy ready to Help

Brad Williams has launched his new business called HomeBuddy. Williams is offering assistance to seniors who choose to live at home but may require that extra helping hand. Williams offers personal and reliable assistance to make a senior’s life easier, ranging from: handy work help around the home, being a shopping or appointment buddy, pickups, deliveries, groceries, errands, pet walking, companionship, and just about anything else that a client may need. To reach Williams call 250-860-2723 or cell: 250.801.6279 e-mail at: [email protected] www.myhomebuddy.com

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10 www.businessexaminer.ca May 2009


Today’s business world is a fast paced, vast, international experience. Events and upheavals from all over the world have an impact on us here in the Okanagan, whether we are aware of it or not. The problem for people trying to follow and prepare for an ever changing market is not that there is not enough information but rather that there is too much, yet there are options for business owners who want to stay informed.

Figuring out what news or research is pertinent to a particular business, though, is time consuming and in a world where time is measured in megabytes and money it pays to have someone whose job it is to watch the social, economical, political, technological trends and who can give general or specific market advice.

This branch of study, combining the present with future trends, is called futurism.

Futurism found its modern beginnings with the church. These futurists were people who believed that Biblical prophesies, like the Book of Revelations, were depicting real future events.

By the early twentieth century, futurism was taking on a new look. While Biblical prophecy was still accepted by many, contemporary futurism had been adapted by the Russians and Italians in an artistic movement that threw out tradition and celebrated change and the advancement of technology and science.

Today’s incarnation is something between an art and a science.

The fast pace of the modern world has created a need for someone with both an ability to sort information and predict trends in all areas of life. For businesses looking for an edge there are a very few futurists that specialize in dealing with the business market.

Frank Feather is a “self taught” Canadian business futurist who does a lot of “keynote speaking at corporate client conferences, and at professional association or industry conventions of various kinds.” He gives seminars all over the world; in July he will be in Shanghai talking about ‘Futuristic Innovation Leadership’ and on ‘Change Management’.

Feather began his career in banking, but moved to futurism after attending a management seminar in 1968 that opened him up to

the concept: “Only the future is manageable.”

Few futurists have extensive business experience so Feather has clients world wide who are trying to stay competitive by developing strategies that plan for the future. Clients like Cargill, IBM, Ericsson, Ford, Nissan, Nokia, and the Chinese government, as well as Fortune 500 companies across all industries, all consult Feather. Feather likens his job to “trying to construct a jigsaw puzzle of the future, and then drawing out the strategic implications of what it all means for each client.”

He says, “I tell them how to re-strategize their business to avoid unseen threats and exploit unseen opportunities.”

Feather says he has successfully predicted the last three recessions. “There is a regular nine-year cycle in the economy that repeats like clockwork.” The next one is due in 2019.

Asked if the increased pace of life has impacted his ability to accurately interpret the direction of trends Feather replies that “it's a matter of experience in trend tracking and spotting the tips of the icebergs before they surface.”

In the 40 years Feather has been doing this he claims an 80% accuracy rate.

“You can’t be more accurate than that,” he continues,” due to out-of-the-blue surprises, or so called wild card events.” For business advise Feather uses a “four-step process of trend analysis.” He studies the social, technological, economic, and political trends then selects the trends that are most relevant to the market, industry, or business that he is being consulted for.

Feather provides four general forecasts for the future:

• The economy’s ongoing shift from an industrial to a post-industrial economy will be increasingly driven by the “Internet Revolution”.

• While demands for natural resources in places like China will continue to climb, there will be continual needs to reinvent many Canadian local economies – as he says is being done following Weyerhaueser's closing of a sawmill in Okanagan Falls in 2007. He says the Okanagan long ago began its move from a forestry economy to one focused on its major asset as a desirable tourism and retirement community, thus capitalizing on the retiring

baby boom generation. While this trend will continue, in the aftermath of this severe recession all consumers are going to be far more frugal and much more demanding of their product and service providers in terms of value for money. There will be a “Depression-era” mentality among most consumers, especially tourists and retirees.

• The economic recovery starting in 2010 will be gradual, and the rate of growth in the next economic cycle will be modest. Local planners should use this next growth period to prepare for the next recession cycle, which will occur around 2019.

• Two major opportunities for the Okanagan are the new emphasis on “green” economics, plus an opportunity to develop some high-tech capabilities, and even some tele-working and e-commerce opportunities that capitalize on the Internet.

Feather emphasizes that “every business needs to realize that it is part of a globalizing economy. Economically, every country is a province of the world.” The meltdown in Wall Street wasn't isolated to the U.S.; the ripple effects created a global phenomenon.

Being global isn’t just about the world having an impact locally. Companies must reach out through the Internet. Feather warns “any business which does not become an e-business and does not at least operate an e-channel, will not be competitive. If you are not online, you do not exist to the new generations of Web-savvy shoppers.”

The Internet is a vital example, but only one that demonstrates how information can allow a business, big or small, to stay competitive.

According to futurists like Feather, local businesses may only deal regionally, but they are still subject to the effects of trends and events that happen globally.

Futurism could be valuable to the smallest of businesses. The interdependent, international community is creating a demand for people who can navigate through all the information. Business futurism is a branch of study that has shown itself capable of providing practical answers.

fuTuRE TENSE-

By Deanna Brooks | Photo contributed

It’s been said the key to success is finding a need and filling it. The key to communicating your value to others is identifying their goals and demonstrating how you can help them achieve them.

Self-promotion does not have to be about self-aggrandizement, and it is possible to advance your career while maintaining humility. In fact, not only is it possible but it is also beneficial.

As we said at the outset, no one likes to be around people who view themselves as the best thing since sliced bread, but people do want to associate with individuals who are confident, who want to help others achieve their goals, and who possess the necessary skills and

qualifications to do so.

Don’t be afraid to let others know what you can do. But choose to transform self-promotion into value-communication by communicating your capabilities, communicating your vision, and communicating your value to your audience.

Richard Zeoli, author of the 7 Principles of Public Speaking, is the founder and president of RZC Impact, a pioneering communications firm specializing in executive-level communication coaching and strategic messaging. Additional information can be found at www.rzcimpact.com.

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A year ago when the Business Examiner reviewed Vernon’s economic status, the talk was all about housing developments – the bigger the better with no apparent end in sight.

Our story focused on a proposed, high-end development by Jim Pitre known as the Boss Creek development. Boss Creek is a 672-acre piece of property high up in the hills on the east side of Vernon, but the proposal was far from alone. Other developments at some stage of development included the Outback, Turtle Mountain, the Strand, Predator Ridge, the Rise and ongoing recreational property developments at Silver Star. Asked about business issues then-general manager of the Vernon Chamber Dawn Lasby’s two biggest issues were housing related: affordable housing for workers and the

lamentable gap between municipal tax rates on housing and businesses.

What a difference a year makes.

Statistics from the Okanagan Mainline Real Estate Board show that for the year to May 2009 units listed were down by 14%, units sold decreased by 42% and the dollar value for those units is down by a whopping 49%.

Certainly not all news is bad. The past 12 months have been the best in Vernon’s history for commercial retail development.

Meanwhile new faces have appeared. Lasby was replaced by Val Trevis who has the Chamber on the move figuratively and literally. The Chamber recently moved into the downtown core, even as it shifts priority to address planning and business consultation issues with different governments in the area. Trevis says, “We’d like to find a way to work together more effectively.”

In addition, Kevin Poole now occupies the role of economic development officer, this time under the City of Vernon rather than NORD. Like Trevis, Poole’s first priority is gathering information and figuring out what positions to take on a number of issues.

Potential fallout from the recession is clearly on his mind. “As you move forward how do you attract people if there are no jobs and how do you diversify your job base?”

He has a tentative answer already.

“Residential development is great, but you need to make sure that the commercial and industrial base is there.”

Only on the job in Vernon since June, Poole held a similar position in the municipality of Mission in the Lower Mainland.

One of the things he learned there was to have a basket of information handy to give out to anyone interested in starting or moving a business. Right now he says Vernon doesn’t even have that basic statistical package together and it will be one of his first jobs. It’s hard to sell something if you don’t know what you have.

After that, he says, “We’re going to do a complete economic development strategy by the end of the year.”

Trevis and Poole are thinking along the same lines. Both want to make sure the system pays a wee bit more attention to what the entrepreneurs need.

By Devon Brooks | July issue cover and Vernon supplement cover photos by Shawn Talbot

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For Poole, being inside the city government is the ideal place to be. He says he can sit in on a city planners’ meeting, chat with elected officials and then get out on the street and talk to business people. “If it affects business we should look at it.”

For Trevis, the need to plan more and discuss with local governments is also paramount.

“The Chamber has a huge role in working with the government telling them what we need and hearing we need to work together. For us to progress we need to make that happen.”

Industry

Poole may be new, but he is impressed with what is here already, saying, “We’ve got a really diverse group of companies.”

Companies like tekmar. Tekmar is one of Vernon’s best known brands, which produces control systems for hydronic heating systems. It ships product around the world.

FarWest originated its line of sportswear in Vernon; the signs proclaiming factory outlets are slightly misleading because FarWest no longer produces any clothing in Vernon or, indeed Canada. Like every other textile manufacturer, low cost imports forced FarWest to move production facilities overseas.

Aspenware is one of the latest companies to start up, putting out wooden cutlery made from birch and aspen. Started up by Vernon teachers it actually works out of a Lumby facility. Though this is a seemingly simple item Aspenware is one of the few companies reversing the manufacturing flow by creating local jobs using B.C. raw materials.

For Poole the idea is to build on these successes. “I want to do some industrial development.”

He is also clearly aware that in the past few years where the bottleneck has been in getting new business. “The big concern I hear is the industrial land.”

Entrepreneurs

There is always a fear that issues can be studied and talked to death with little action when and where it is needed.

Fortunately both Trevis and Poole seem to have a good grasp of what is needed. There are 740 members in the Greater Vernon Chamber. The majority of those businesses have five employees or less who don’t have the resources to hire experts to deal with many problems. They rely on the Chamber and other business advocacy groups to move their issues forward.

Consider a company like Triboda Printing, winner of the Vernon Chamber’s New Business of the Year Excellence Award in 2009. The Triboda Printing Company team really represents two companies, not one.

Triboda excels in printing innovation (much more on that next month in the Business Examiner’s feature on printing) with unique equipment, but also offers branding, website, photography and design skills. But all of those offerings are part of only one company. Triboda principals

Stephen Trites and Menza Bouwman have also set up avatree.com.

Avatree.com allows people to design and put together their own glossy photo book using their own images and words on the text and inside for less than $40. That is an unbelievably inexpensive price for producing a hard cover, customized, glossy book. Previously, such a product would have cost hundreds or perhaps thousands of dollars.

Another success story that has taken an old idea and made it fresh is CanDox Records Management.

Even with modern electronic storage, paperwork and records are essential, and taking up ever more room.

As the company notes on its website, if a company suffers a catastrophic data loss from fire or theft it can be crippling. Almost half the businesses studied in a University of Texas never reopened.

CanDox took that fact, and built an innovative service around the very unsexy need of storing records quickly, safely and with a complete method of data retrieval. Every box,

and if customers want, every file within the boxes, can be coded. Every access and withdrawal is scanned and monitored electronically so that nothing goes out or in without the item, time and person being recorded. Materials are dropped off and taken back to the storage unit by CanDox personnel.

So, if Vernon is inspiring people across such a wide variety of fields does it need to worry about either the entrepreneurial spirit or its business fostering ability?

Val Trevis

CONTINUED ON PAGE 15

PHOTO DEVON BROOKS


Position - General Manager Community Futures, North Okanagan

Vision - In her desire to create “possibilities for people and businesses” Lister has worked to create, most recently, Vision North Okanagan, a model to allow faster moving entrepreneurial development. The motto: Think Fast/Move Fast. Along with facilitating new business she sees her role as support for existing companies through programs like succession planning, education and capacity building for non-profits.

Assets - Although Lister boasts an MBA and 19 years of experience with Community Futures of the North Okanagan, and a dozen of them as the general manager, she insists it is the team, something she is keen to build up, that is her biggest asset. “The success of Community Futures is due to the people involved with us – they are my biggest asset – hands down.”

Background - After nearly two decades within the Community Futures organization in several positions before becoming general manager, Lister lists past and outside experience as part of the reasons for her success. One of her more important projects was the creation of a labour market training for business. She developed the core curriculum, found the funding and reviewed the results. In addition Lister has worked on small and medium-sized enterprise lending programs, Internet technology ventures, labour market research projects, and a wide variety of other community economic development initiatives. She has worked overseas in Russia and Indonesia helping to implement micro-credit, youth entrepreneurial initiatives and small business organizations. She was recently awarded the Don McMillan Award for outstanding community economic development work. Photo contributed

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A new and innovative initiative has been created to encourage and facilitate economic development in the North Okanagan. Vision North Okanagan has been formed to provide leadership and support, and to initiate action teams to work on identified economic development issues. Its vision is “a prosperous North Okanagan region that benefits all residents and businesses.”

Vision North Okanagan understands that the economic health of Vernon depends on the economic strength of the Region and therefore we think in terms of the whole North Okanagan as well as Okanagan Valley wide. We also stress the need to think long term and to prepare now for future opportunities and challenges.

Vision North Okanagan was spearheaded by Community Futures who recognized the wider community’s desire to be involved in economic development and to support job creation and business development.

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The answer is that business creation and relative advantage is as flexible as business itself. This year’s winner can fall behind next year if it doesn’t watch out.

Trevis has already identified one ex-ample where Vernon could improve. She says, "Let's make (business licensing) more transparent."

New Faces

If most companies in Vernon are small ones, there are still some relative giants with deep pockets building large in the slowed, but not stopped, development sector.

The Sparkling Hill resort is pouring concrete, still on schedule for its spring 2010 opening. Another important tourist attraction is the new 30,000 sq. ft. Lake City Casino. While the casino is still thrashing out some details with the city about a liquor license, it reported a crowd numbering more than a thousand at its opening night in June. The new casino is more than double the size of the old 13,000 sq. ft. facility.

While the Casino’s expansion should

distract locals from a tougher economy and hopefully draw in more tourists, Jane Lister, the general manager at Community Futures North Okanagan has been quietly working behind the scenes to launch a new venture.

The new project is call ‘Vision North Okanagan’. Lister writes, “Vision North Okanagan has been formed to provide leadership and support, and to initiate action teams to work on identified economic development issues.”

More precisely the Vision North team has identified specific industries that they believe could boost the north Okanagan economy; this is similar to the work done by the Okanagan Partnership for the entire region.

The new operation has already identified where to begin work. Says Lister, “The first four Action Teams have been developed and are focussing on the film industry, busi-ness attraction structures, specific attainable housing initiatives, and rail infrastructure issues.”

For Vernon, this trio of people, Poole, Trevis and Lister, may be exactly the right people in the right place at the right time.

There is an urgency to taking a fresh look at the old way of doing things. Poole says, “My philosophy is to work on the ground and work with the local businesses. I think I got hired for a common sense approach.”

Trevis is just as direct: “I want to see more business involvement in the policy development.”

Ironically it may be that because the economy is tougher these new ideas have a better chance of being acted upon by politicians because everyone is afraid the economy may get worse before it gets better. If it does, everyone is going to need all the help and good planning they can find to make the 2010 review more positive than this year’s.

Kevin Poole was talking about Vernon’s government, but in reality it applies to everyone: “We’re a partner with business.”


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The Vernon region employment appears to be a near perfect reflection of what is happening across the province. Anita Suess, the employment manager for CBD Network in Vernon, says, “Clients are still finding work, but people are having to work harder than they did last year.”

The unemployment rate was sitting at 7.9% in May.

CBD Network opened its Vernon office in 2005. The agency helps professional and semi-professionals find jobs by teaching networking skills and showing them how to connect to the hidden job market. Those are jobs that aren’t published in newspapers or online, which, according to CBD, is where the vast majority of positions are found.

Suess says their numbers show that since its opening the Vernon office has assisted 687 clients to find work, which is an 88% success rate for their files.

This year she says the recession is taking its toll. High on the list of job losses is the manufacturing sector. Suess notes, “We’ve had a lot of manufacturing shut down.”

For companies that aren’t shutting down, there is still a move to tighten their belts. She says, “Everybody is trying to make do with what they’ve got.”

For those who are on the job market there are two courses for most people at this upper end of the job market. One is to move elsewhere and she says more people are doing just that.

The second is to dig in, try harder and be patient. “It used to take around 16 weeks for a professional to find the appropriate position. Now it’s five to six months.”

She says there are two very positive notes for employers. The choice of qualified people is up and for companies with a hole in their employee base there is no better chance to find the right person.

She adds companies shouldn’t assume the tough times are here to stay. “The whole skill shortage issue hasn’t gone away. I see the shortage issues [will] return by no later than 2011.”

Suess stresses that CBD is not a job placement agency, yet it does work hard to let its clients know about job openings. While CBD does not provide screening or any similar service to what bonafide HR companies do, she still encourages employers to let her company know about staffing vacancies.

A last benefit of agencies like CBD, she says, is making it easier for dealing with interviewees that don’t make the cut in a job interview. One of the toughest things about being an employer is telling good, qualified people that they were beat out at the end of the hiring process. Says Suess, “When you turn down somebody, you can send them to a group [like CBD] to help them with their job search.”

CBD is funded by government contracts so there are no charges to employers or the clients looking for work.

Employment in a


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Pension (18.7%), Investment (9.6%), Self-Employed (5.0%)

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Total labour force: 17,410 Labour force as % of total population: 48.4% (2006) Percent of labour force self-employed: 13.4% (2006)

New residential units built: 355 (2008) 571 (2006) Value of new residential construction: $84.6 million (2008) $121.5 million (2006) Value of other construction: $83.4 million (2008) $45.6 million (2006)

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July 2009 Okanagan Business Examiner 19

Robert Fine, executive director of the Central Okanagan Economic Development Commission relates an interesting story of his meeting with the mayor of Seattle, who admitted that he had no idea where Kelowna was or anything about the place. Says Fine, “Ten or 11 years ago Seattle didn’t know that Kelowna existed.”

Fine didn’t mean that only the mayor of Seattle didn’t know. He thinks the vast majority of people in Seattle, and likely Washington State, didn’t know. Possibly the single biggest factor in helping to put the Okanagan on the map is the Kelowna International Airport.

Fine tosses off some numbers that show just how important the airport is to the regional economy. In 2005 the airport supported 1,835 jobs and generated $310 million in economic output. Fine likes a quote from the book Urban Studies that states that for every 10% increase in passengers through an airport, the surrounding economy will grow by an entire percentage point.

Looking back, Fine says, “The direct connection to Toronto made a big difference. Every connection makes a big difference.” He has numbers to back it up.

The EDC projects that positive benefits will increase to 3,104 jobs and $525 million by 2015. Just don’t bank on those numbers because projections from the recent past have wildly underestimated the airport’s rate of growth.

In 2001 Kelowna had 850,000 passengers, which was estimated to go up by 17.6% to an even million by 2011. Which is fine except that in 2008 the airport handled 1.39 million passengers. The newest projection, which includes a downturn in 2009 numbers because of the recession, predicts a 15% increase over 2008 numbers by 2015 when the airport expects that 1.6 million people will come through its doors. That is the middle projection, estimates vary between 1.4 and 1.8 million.

An airport is not like a highway. Even though both are essential to

Economicthe recession is allowing Kelowna’s airport to catch its breath before passenger numbers take off again

Story and Photos By Devon Brooks Fine | Samaddar Photos contributed

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Robert Fine CONTINUED ON PAGE 20


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transportation and economic growth one is an economic service provided by the province. Airports, in contrast, behave more like corporations. As Fine says, “People don’t understand that airports are a business.”

Sam Samaddar is the airport director. Not only is Kelowna’s airport a business, but it’s a particularly effective one that generates a profit. Samaddar notes, “We are really a self-financing service and we pay fees to the city.”

Most people assume the government provides the airport for the public benefit. In Kelowna’s case the airport was created when the City of Kelowna, in 1945, had a plebiscite to purchase a tobacco farm and fund an airport. The plebiscite passed, by the way, by a miserly six votes.

The Kelowna airport is unique in that it is owned by a local city. City councillors and the Airport Advisory Committee effectively constitute a board of directors giving advice to airport management, headed up by Samaddar. He says, “You have to understand that passenger growth drives the facility.”

For Samaddar the airport is like a factory. What the airport has to produce at the end of the day are happy passengers. Passengers depend on the proper inputs, which means he needs air carriers who are his clients just as much as the passengers. Keeping them happy means keeping prices low and Samaddar has a lot to say about that. “The key to the success of the

airport is to keep your costs down. If tough times come then low costs help to keep airlines here.”

“This is a low cost airport. Anything under $8 [per passenger] is considered exceptional. Kelowna was just under $6 per passenger.”

Fine was recently elected to sit on Kelowna airport’s committee, but he says, “It’s just not Kelowna’s airport – it is the Okanagan’s airport.”

This is reflected in the committee’s makeup. Sixteen people sit on the committee including two from Kelowna’s city council, one from the following: Central Okanagan Regional District, City of Vernon, District of Peachland, District of Lake Country, City of Salmon Arm, District of West Kelowna and the Westbank First Nation. The remainder come from different business interests including the Vernon, Westbank and Kelowna chambers of commerce and Tourism Kelowna. “What we’ve done that is unique,” says Samaddar, “is that we’ve closely linked with the local business community.”

The committee and its members do more than just guide the airport – every one of them has a stake in it and they are involved in helping its promotion. Last year’s much celebrated runway extension means bigger planes can now come and go from Kelowna. The goal is to entice airlines, probably through summer charters initially, from Europe starting with the United Kingdom. Samaddar says the airport is only one part of that sales job. “When we make a pitch to an air carrier we bring those people with us. I can sell the airport, but we also have to sell

the destination.”

Samaddar has to make sure many things are in place before the runway extension can pay off. “The last runway extension in 1990 took

six years before it was really utilized by West Jet.”

Now that the runway extension is complete, parking upgrades are underway. There are other projects that still have to be done. The runway needs an overlay (paving) in places. The outbound baggage system will have to be upgraded and, with the wider body aircraft expected in the future, other systems will need upgrades.

“Some of that work [that] we’ve already done is already preparing for that 1.6 million passengers.”

He can’t quite admit it, but Samaddar is probably happy about the economic slowdown if only because it gives the airport a bit of breathing room before passenger traffic starts to take off again.

Airport passenger use is going up much more quickly than predicted and facilities will need upgrades to keep up with future passenger traffic.

Sam Samaddar



Legal Talk

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supreme Court tinkers with duty to accommodate

I have often stated that dealing with disability-related absenteeism issues is the most challenging task a human resources person faces. The legal framework of the employer’s duty to accommodate is so hazy that even the courts have difficulty agreeing on what is required.

As an example, the Supreme Court of Canada has released another decision attempting to explain the employer’s duty to accommodate an employee’s disability.

Back in 1999, the Supreme Court of Canada issued two landmark decisions that drastically altered the approach employers must take when dealing with employees needing accommodation. They form the basis for the present legal standard of accommodation.

In those cases, the Court determined that if an individual has demonstrated a prima facie case of discrimination, the employer must prove certain things in its own defence. In effect, the employer must prove that treating the individual in the manner it did was a bona fide occupational requirement.

To do so, the employer must demonstrate three things. First, it must prove it has adopted its approach or treatment for a purpose which is rationally connected to the performance of the job. An example of a generally appropriate purpose would be the protection of the health and safety of its employees.

Second, the employer must demonstrate it adopted its approach with an honest and good faith belief that it was necessary to the accomplishment of its purpose. Put another way, if the employer has adopted the approach as a way of excluding or differentiating particular groups, the standard will fail.

Third, the employer must demonstrate that the approach itself is reasonably necessary. This is done by showing that it would have been impossible to accommodate the individual’s circumstances without suffering undue hardship.

It is this third step that has been the basis for much debate. In the Supreme Court of Canada’s recent decision, it attempted to clarify

what is required of employers.

The case involved an employee whose employment with Hydro Quebec was terminated after a long history of absenteeism. As a result of tendonitis, epicondylitis, bursitis, various surgical procedures, hypothyroidism, hypertension, and certain personality disorders, the employee missed 960 days of work in a span of seven and a half years. The average full-time work year contains about 240 working days, so it appears this worker was absent over 50% of the time

In July of 2001, she had been off work for approximately five consecutive months. Her physician recommended she stop working indefinitely. The employer obtained a psychiatric assessment which indicated she would no longer be able to work on a regular basis without a continuing absenteeism problem.

Up to that point in time, Hydro Quebec had actively attempted to accommodate her. It had even taken some steps to keep her actively employed which went beyond its

In 2001 Hydro Quebec concluded she displayed an inability to work on a regular basis. Her employment was terminated, and in return, she grieved her dismissal.

The Supreme Court of Canada took this opportunity to re-frame the employer’s duty to accommodate. It started by emphasizing that the goal of accommodation is to ensure an employee who is able to work can do so. The purpose of the accommodation is to ensure that persons who are otherwise fit to work are not unfairly excluded when working conditions can be adjusted (without undue hardship to the employer).

Then, the Court got to the nitty-gritty of the test. It said the employer does not have a duty to change working conditions in a “fundamental” way but does have a duty to attempt to arrange the workplace to enable the employee to do his or her work. If the business can, without undue hardship, offer the employee altered working arrangements to ensure the employee can do his or her work, it must do so.

Put another way, if the characteristics of an illness are such that the proper operation of a business is hampered excessively or if an employee with such an illness remains unable to work for the foreseeable future despite the employer’s accommodation efforts, the employer will have demonstrated undue hardship.

As the Court stated, the employer’s duty to accommodate ends when the employee is no longer able to fulfill the basic obligations associated with the employment relationship for the foreseeable future. In this case, the Supreme Court of Canada upheld the termination of the chronically absent employee.

Robert Smithson is a partner at Pushor Mitchell LLP in Kelowna practicing exclusively in the area of labour and employment law. For more information, log onto www.pushormitchell.com. If you have a labour question, e-mail him at [email protected]. This subject matter is provided for general informational purposes only and is not intended to be relied upon as legal advice.


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Research shows that employees that have the opportunity to learn are more engaged and willing to go the extra mile. This statement becomes your business advantage. By establishing a culture within your organization where your people constantly learn is the key to the future of the business.

As many of us have had to tighten our belts and cut costs, including those attributed to training, we are forced to approach expenses in a more strategic fashion. There has never been a better time for implementing an internal mentoring plan, sometimes referred to as peer to peer mentoring or a buddy system. With a mentoring program you could team up all of the varied elements of individual staff members to achieve a common approach, a team pulling in the same direction, rather than employ an accidental succession plan.

A mentoring program can be as formal or informal as it needs to be to suit your environment and your people. It can be as elaborate or as basic as you need it to be to ensure its success. Many large organizations have successfully implemented these programs, but I have also seen several smaller organizations achieve great success with mentoring as well.

So what does a mentoring program entail? It matches up experienced employees with either those who have less experience or with those appointed to a new role within the organization.

It is a vehicle for the transfer of knowledge. A mentor is not a coach, but rather a person who has bonafide experience, and a willingness to share their knowledge in a somewhat structured framework. They act as guide.

The first step is to clearly understand what a mentoring plan would look like in your business.

As with anything the announcement and implementation of this program is vital to its success.

You may consider creating a focus group within your staff through which the program takes life.

You may consider bringing in an external consultant to assist with the creation and implementation. Many experts recommend running a trial with a few key employees before a full roll out so everyone can sees how it works.

You may want to make it very informal and offer it as something employees can participate in or, you may make it part of your entire organizational culture. In the latter case everyone is either a mentor, a mentee, or in a buddy pairing.

When considering a mentoring program ensure that it matches your existing culture. Don’t force a very rigid program on your employees if your culture is laid back and casual. The opposite is true of a structured environment; an informal program won’t connect with how a more hierarchical group is used to operating. Regardless of whether you employ an informal or formal program, there needs to be expectations and goals – these are key to the program’s success.

The willingness to try something new is really the first step to make your business more productive and sustainable. Being creative in this economic climate will differentiate your business. Be different, be successful.

Shelley Gilmore is a Kelowna-based business consultant. Gilmore HR works with businesses to link the people side of business and the people strategy to the business plan. She can be contacted at (250) 864-1153 or view her services online at www.gilmorehr.prevuepro.com.

teach me so i may learn


Calendar of Events

members.

Vision 2020 Business Conference & Tradeshow Sep 23 - Penticton Trade & Convention Centre

This is the inaugural run of an annual conference designed to help business thrive in the short term while planning for the long term. Talks and workshops will cover off branding, IT, social media, management consulting, HR, business finance, business enhancement, information management, doing business with First Nations and selling. The show will be populated with local business experts and well-known figures like Chief Clarence Louie. Go to www.vision-2020.biz. $149 for a full registration before Sept. 14, 2009, $199 thereafter.

Buying a Business - Jul 16 Video Conference

This three hour video conference (9 am to noon) will cover the advantages and disadvantages of buying a business versus starting one up from scratch. Hosted at Small Business BC in Vancouver and delivered by video to various locations around the province. $39 per person plus tax. Go online to www.smallbizeducation.ca/video-conferencing/penticton.php for more information.

First Year in Business Financial Overview Jul 20 Video Conference

This three hour video conference (9 am to noon) will detail the various financial statements a new business owner will receive and needs to understand. Hosted at Small Business BC in Vancouver and delivered by video to various locations around the province. $39 per person plus tax. Go online to www.smallbizeducation.ca/video-conferencing/penticton.php for more information.

Business After 5 - Jul 21 Monashee’s Bar & Grill, Vernon

The Vernon Chamber of Commerce’ monthly networking event from 5 to 7 pm. $5 for members, $15 for non-members. For information e-mail the Chamber at [email protected] or call 250-545-0771.

The Good, the Bad and the Effective Website - Jul 22 Video Conference

This two hour video conference (10 am to noon) will look at and discuss strengths and weaknesses for good websites. Hosted at Small Business BC in Vancouver and delivered by video to various locations around the province. $25 per person plus tax. Go online to www.smallbizeducation.ca/video-conferencing/penticton.php for more information.

Business After Hours - Jul 23 - Westwood Retirement Resort, West Kelowna

Westbank & District Chamber of Commerce’ monthly networking meeting running from 5:30 to 7 pm. RSVP required to 250-768-3378. Free for members, $5 for non-members.

Business After Hours Jul 23 - Summerhill Pyramid Winery, Kelowna

The Kelowna Chamber’s monthly network meeting from 5 to 7 pm. $7 for members, $12 for non-members. More information available online at www.kelownachamber.org/index.php?fid=Events&sid=Business.

Mr. Muscle Miss Bikini Contest - Aug 2 - Skaha Beach, Penticton

The fun, 26th annual meeting of the JCI Penticton’s Mr. Muscle Miss Bikini contest is a fund raiser for various charities starting at noon. The JCI is looking for volunteers, participants or spectators. If you want to help out or be part of it, contact Jaime-Lynn 250-488-7595 or Ryan at 250-809-1430 or send an e-mail to [email protected].

VWIB Luncheon Meeting Aug 5 - Schubert Centre, Vernon

The monthly buffet luncheon meeting of Vernon Women in Business from 11:30 am to 1 pm. $14 for members, $16 for non-members. More information by e-mail from [email protected] or go online to http://vwib.com.

Business After 5 - Aug 18 Triboda Printing, Vernon

The Vernon Chamber of Commerce’ monthly networking event from 5 to 7 pm. $5 for members, $15 for non-members. For information e-mail the Chamber at [email protected] or call 250-545-0771.

VWIB Evening Meet - Aug 19 Schubert Centre, Vernon

The monthly evening meeting of Vernon Women in Business from 5 to 7 pm. $14 for members, $16 for non-members. More information by e-mail from [email protected] or go online to http://vwib.com.

Business After Hours - Aug 20 - O Spa & Salon, Kelowna

The Kelowna Chamber’s monthly network meeting from 5 to 7 pm. $7 for members, $12 for non-members. More information available online at www.kelownachamber.org/index.php?fid=Events&sid=Business.

Business After Hours Sep 17 - Pushor Mitchell LLP office, Kelowna

The Kelowna Chamber of Commerce monthly networking event from 5 to 7 pm. $7 for members, $12 for non-members. More information available online at www.kelownachamber.org/index.php?fid=Events&sid=Business.

Partners in Action Conference - Oct 4-7 - Best Western Vernon Lodge

A conference designed to help people find and build on relationships between business, foundations, economic development agencies and various levels of government with speakers Mike Harcourt and Ben Barry. Registration of $489 +GST. For more information call Diane Block at 250-545-2215, ext. 200 or go online to www.partnersinaction.ca/index.php.

Effective Group Leadership Program - Oct 5-8 Naramata Centre

This two-part program develops the skills and effectiveness of small group leaders. Registration and more information available by calling 250-496-5751, ext. 200. Cost: $1,250.

Oct 21 - Delta Grand Resort, Kelowna

The 22nd Annual Business Excellence Awards by the Kelowna Chamber of Commerce is looking for nominations and sponsors. For more information go online to www.kelownachamber.org/index.php?fid=Events&sid=Special_Events or call Dicky Dack at 250-469-7355.

Business Excellence Awards

Keystone Award Nominations Aug 14 Online

The cutoff for making nominations for the Canadian Home Builders’ Association Central Interior annual awards is 5 pm on August 14. Thirty categories for residential home builders based on type, size and value of the home. Full entry information available online at www.chbaci.ca or call 250-828-1844. Entry fees are $136.50 for CHBA members, $315 for non-


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Ever since I updated Internet Explorer 8 I can’t use some of my websites.

This is another problem with Microsoft updates. They release an update that the Web site providers have not had the chance to update their website with Internet Explorer 8. To fix this on XP go to Start>Control Panel>Add Remove Programs. Look for IE8 and remove. It will revert back to IE7. Remember this is a critical update as it has more security features on IE8 so it will eventually get reinstalled back in by itself.

Losing someone to suicide can be devastating and the healing process, for some, can take months or even longer. Experiencing guilt, which is very common, is a powerful emotion and can leave you thinking that you should have taken more responsibility in preventing this tragedy. Try talking to your partner, a trusted colleague or friend about what you’re experiencing. If this doesn’t help, seek professional counselling.

Six weeks ago a business colleague committed suicide. Initially, I was shocked and sad. Now I am experiencing overwhelming guilt. What’s going on?

Those of us who enjoy B.C. lakes know about bailing. It’s the bucket you use to get water out of your boat to avoid sinking.

A different kind of bailing has featured in the news lately, in reference to government efforts to keep large U.S. companies from sinking. Some critics argue that bailing out troubled companies is a waste of taxpayers’ money, and is merely rewarding the greed and stupidity of their management teams. Others argue it is essential and the government should be doing more.

The truth lies in between. It makes sense to support businesses too big to fail, whose loss would ripple through the economy and take others with them. It does not make sense to prop up companies who have made bad business decisions so they can repeat their mistakes. The main problem lies in figuring out which companies are which. Another issue is doing it in such a way that minimizes unintended consequences.

U.S. financial institutions needed help last fall, not because we couldn’t live without them but because of the panic that ensues when they fail. Lehman Brothers’ bankruptcy triggered the market crash last fall and helped bring the world economy to a halt in December and January. Credit markets seized up overnight and starved the world economy of cash and credit.

Credit matters more than you think.

To bring it home, imagine your five-year mortgage term expiring next month. If your bank couldn’t get access to credit to refinance, instead of calling you to set up a renewal, they’d send a letter giving you 30 days to repay or they would foreclose and seize your house.

That kind of disaster scenario was averted by massive cash infusions and loans to keep the financial system solvent and

avoid another Great Depression, but things are working more normally again.

One of the problems with the bail out was that the U.S. government and Fed allowed markets to believe several government-related organizations like Fannie Mae and Freddie Mac, which insured mortgages including sub-prime, had a government guarantee. Lenders and investors would be safe regardless of whether the mortgages had any value at all. That lack of clarity encouraged the institutions and their investors to make some bad decisions.

Bailing out the institutions helped keep U.S. financial and mortgage markets functioning. The bailout involved taking control of those two institutions and effectively wiping out the value of both the loans and equity investments in them.

Investors would normally get something back in a bankruptcy. An unintended consequence was that investors fled investments in any other companies in “danger” of being rescued. Those companies saw their stock and bond prices plummet and became unable to borrow or raise money, requiring further bailouts.

Chrysler’s bailout in 1979 raises different issues. The U.S. government guaranteed $1.5 billion in loans. Lee Iacocca took the helm for $1 a year in salary plus stock options and the company recovered with the mini-van, K-car and pickup truck sales to the U.S. military. Lee Iacocca made a fortune on his stock options and the U.S. government made $350 million on its loan guarantee over 2 ½ years.

Everybody won, but a legitimate question at the time was whether it would be better to just let the company disappear. We are asking the same question today of Chrysler and General Motors, and there is no simple answer. The hardship

of two companies ceasing operations causing 300,000 possible direct job losses, plus disruptions at their suppliers and dealers, affecting another million or two might be more than the world economy could stand right now.

Everyone will look like heroes if they can implement successful business plans with reduced North American capacity and competitive manufacturing methods. But it could also turn out to be case of trying to prop up dinosaurs. Only time will tell.

Note again that the U.S. government made $350 million on the first Chrysler rescue. This time around, the Canadian government will end up with a 2% equity ownership and the U.S. will have 8%. The governments again stand to make a nice profit if this and other rescues work.

But again there may be unintended consequences. Wiping out GM and Chrysler’s debt, and forcing union contract changes to make them competitive with Honda and Toyota may damage Ford’s competitive situation, as their contract cuts were not as deep, and they still have debt with the associated costs. Rescuing the two weakest US automakers might wreck the one that has done a good job of managing through the downturn.

Have you got this figured out yet? If so, here is your homework assignment. Air Canada filed for bankruptcy protection in 2003 and looks to be in trouble again. If worst comes to worst, should it be rescued as a necessary national airline, placed in bankruptcy protection or simply put out of its misery? I should warn you it could be a trick question, with no right answer.

Dominik Dlouhy P. Eng, MBA, CFA is a Chartered Financial Analyst and planner with Partners in Planning Financial Services Ltd. and The Fraser Financial Group LLP. You can reach Dominik at 545-5258 or [email protected] with questions or comments. The opinions expressed in this article are those of the author and not necessarily those of Partners in Planning or The Fraser Financial Group.

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The three remedial ‘r’s can now be redefined as record, report and remove for the growing problem of graffiti. It’s a fight that has caught the eye of the entrepreneurial sector. In Kelowna, Patrick Rutten intends to set up the franchise head office for Graffiti Patrol, a private sector business that will help governments and private companies repair and prevent graffiti damage.

The number of graffiti incidents, known as ‘tagging’, are increasing right across the country.

In 2007 Ottawa reported that it had cleaned up 26,000 pieces of graffiti.

Scott Isfan is the newly appointed Graffiti Eradication and Prevention Coordinator for Kelowna. His office reports that in 2005 there were 542 incidents and the city spent $40,437 on clean up. The numbers go upward from there, so by 2008 831 incidents were reported, which cost $96,309 to clean up. This year Kelowna has allocated $110,000 for clean up and prevention.

Isfan, who only started in his

position last month, says, “I knew we had a problem with graffiti, but it’s been a real eye opener.”

One of the problems is that the numbers reported under represent the problem. Isfan explains that if a member of the public reports graffiti on a fence in a park the city goes in to clean it up. They will inspect the whole park, and almost certainly find more graffiti on other surfaces; however the park will be listed as one incident, even if there are a dozen surfaces that have been tagged.

It is obviously not just a Kelowna problem. Calgary’s graffiti budget is $250,000, Toronto $347,000, Winnipeg $1.7 million and Ottawa a whopping $2.3 million.

It might look like Winnipeg and Ottawa are really in trouble, but the numbers are somewhat misleading. Kelowna’s $110,000 figure doesn’t include the staffing and administration costs for Isfan and the other four members in his office. Two are summer students because

warm summer nights bring out the taggers.

There is another “hidden” cost to graffiti, which is borne by the public and private enterprise. In Kelowna, as in many other cities, bylaws state that graffiti must be removed by property owners.

Graffiti that isn’t removed promptly virtually ensures that when it is erased, it will reappear. The City of Saskatoon notes that if graffiti is removed within 24 hours there is a 10% chance it will reappear, but if it lingers for more than two weeks the chance of a reappearance is 100%.

Rutten has been promoting various franchises for 30 years, and for franchises repeat business provides a steady income. In this case it is the vandal’s propensity to keep tagging the same places that is going to make graffiti franchises pay off.

Right now, private businesses are cleaning up again and again. Rutten says if someone is lucky enough to only get tagged once

or very infrequently his franchises have proven, inexpensive products to do a clean up on any substance from stucco to brick or glass. Most operations take from 60 to 90 minutes to complete, depending on the area and how many different kinds of material were used.

Four products form the basis for Graffiti Patrol’s line of defence against tagging. He says the ease of their use, and their proven ability to clean all kinds of surfaces will increase demand. Rephrasing what the City of Saskatoon wrote, Rutten says any tagger who can’t get his message up where he can see it day after day will move elsewhere to deface property.

The Graffiti Patrol franchisees will be able to offer a variety of products for coating surfaces frequently targeted that will make clean up little more difficult than washing. Rutten says, “Coating doesn’t stop paint, but the paint comes right off.”

The products Graffiti Patrol touts were developed in the United

Kingdom and are already in use by the London Underground. The products were picked up by Chemical Solutions, a Medicine Hat company. That company was already in business in that Alberta city cleaning up when the idea of taking the products across the country through franchises was hatched. It has taken them four years to put the business plan together and launch the concept.

Rutten says a franchisee will need a population base of 100,000 to provide a viable living. For smaller communities they’ll have to work across a territory, going from town to town. He says a franchise can be set up within 45 to 60 days and will cost between $50 and $70 thousand.

Most franchisees will have a trade background and be comfortable using tools.

He believes a 30-franchise network is a reasonable goal within the first 10 years.

Story and Photo by Devon Brooks

A new franchise hopes to cash in on the fight to stop graffiti

Patrick Rutten stands in front of graffiti sprayed on private property. His new franchise will likely earn its bread and butter by patrolling and removing graffiti from private buildings.


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golF tips BroUght to yoU By toBACCo lAnD

How often have you been in a situation when, playing a golf course with undulating fairways and having just hit a shot from the fairway straight at the pin, you come up several yards short of the green or airmail it completely into a back bunker? The course ground varies, and your response to slope needs to vary too.

Course management is one area of the game that cannot be taught through swing instruction or video analysis. Simple strategies learned through experiences on the golf course can alleviate some of the extra shots we take during our day-to-day rounds.

Down hill lies compared to flat lies will generally produce greater distance with the same club. Due to the fact that we need to have our shoulders parallel to the ground, a downhill lie will de-loft the club creating a lower ball flight. Conversely, when dealing with an uphill lie we will need to take one more club to counter the inflated loft that will be created with our shoulder adjustment.

A lie that is away from you will create a fade or slice, a lie that is towards you will create a draw or hook (depending on the severity of the slope).

The golfer must position themselves and swing path to allow for the natural curve that will result due to their lie.

When putting, a simple rule is to know the ball will generally break towards the water (lowest elevation) and away from the mountains (highest elevation). Remembering these simple rules will help create a more enjoyable experience on the golf course.

John Swanson is a Canadian Professional Golfers’ Association (CPGA) member and the Director of Golf at the Nk'Mip Canyon Desert Golf Course in Oliver.

Course managementthe lie of the land has big impacts on your golfing. you need to learn how to compensate.


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July 2009 Okanagan Business Examiner