Thursday, December 5, 2013

CANADIAN GAMBLING INDUSTRY FACING CHALLENGES

To the casual observer, an industry that consistently enjoys fat margins that are the envy of most other businesses can't be facing real challenges. Yet, since the widespread introduction of government sponsored gambling in Canada 15 years ago, and the explosive growth in revenue it generated, gambling in Canada is facing a number of challenges to sustaining its marketplace presence.

Unique Features: The gambling industry in Canada has a number of features which set it somewhat apart from other economic activities. It is governed by the Criminal Code of Canada, which essentially states that all gambling is illegal unless conducted by governments or charities. Further, the Criminal Code provides that only provincial governments can operate and manage electronic gaming machines (slots and video lottery terminals), creating a provincial monopoly over the most profitable sector of the industry.

The majority of gambling revenue flows to provincial governments. The Canadian gambling industry generates significant revenue - about $14 billion in 2012, after prize payouts and before expenses - revenues that provincial governments have come to rely on in their search to contain deficit pressures.

And while gambling is seen as part of the entertainment industry, it is a controlled substance restricted to those above the age of majority.

The Canadian gambling industry generally enjoys a global reputation as safe and well regulated. Nevertheless, the nature of the industry and the large volumes of transactions it involves inherently attract undesirable activities, among them incidences of fraud and money laundering, cheating at play, and underage gambling. Ongoing vigilance and oversight is essential to minimize their impact.

Gambling addiction is another major issue gaining an increasingly high profile. It is estimated that 3.7% of the Canadian adult population is at moderate risk or addicted to gambling (Canadian Gambling Digest 2011-12), and that this population component contributes over 20% of the gambling industry’s gross revenue (John Fletcher, Canadian Medical Journal September 2013) – neither a morally nor financially sustainable position.

First Nation Gambling Development: As provincial governments have expanded gambling activities across Canada, so too have many First Nation organizations developed significant gambling ventures in partnership with provincial governments. First Nation casino development has generated significant direct and indirect economic and community benefits, flowing mainly to First Nation governments, communities and individuals. Gambling revenues are typically shared widely amongst First Nation groups in Canada.

New Challenges Have Emerged: While government gambling operators in Canada exercise a virtual monopoly position (charity gaming is a minor player in most provinces), competition does threaten some sectors of the market. Online or internet gambling is illegal in the U.S., and currently no Canadian jurisdiction offers internet gambling to non-residents. It's estimated the internet spend in Canada is $1 billion per year, using internet sites located outside the country, some legal, some unregulated.

Sports betting, while legal in Canada, is limited to a pari-mutuel bet on the outcome of a minimum of three sporting events (Criminal Code of Canada) rather that the much more popular single event sports wager. The Canadian Gaming Association estimates the value of single event wagering in Canada at $14 billion – most of it illegal and most of it offshore. Bill C 290, currently stalled in the Canadian Senate, would, if passed, permit single event sport wagering (some opposition to the Bill exists within the Senate; it was passed unanimously in the House of Commons).

As well, indirect competition for the entertainment dollar is constantly evolving as new and attractive non-gambling entertainment options appear in the marketplace almost daily.

Most gaming products are nearing market maturity and revenues have plateaued. Lotteries are required to offer large and growing prizes to sustain player interest. Electronic gaming revenues have flattened across Canada in recent years. Prime electronic gaming market segments are beginning to decline as the population ages, while younger age groups exhibit lower gambling participation rates.

The cost of gaming equipment and associated IT systems that manage play and offer enhanced business and predictive analytics are increasing rapidly. Also, greater compliance requirements have added cost and complexity without contributing to the bottom line.

And expansion of gambling continues to be controversial; ongoing public opposition has successfully blocked a proposed downtown Toronto casino and stopped expansion of the current downtown Vancouver casino facility.

Solutions: As with most challenges, those who carefully look for them will find solutions. Much can be learned and adapted from other organizations’ experiences with similar challenges, both within and outside the gambling industry. New IT systems and methods of analyzing business and customer interactions generating predictive analytics can lead to better business decisions and enhanced customer knowledge.

Often external management resources with fresh eyes and ears can assist organizations in finding solutions and testing and adapting them.

David Innes (click to see David's profile)
Principal

Monday, November 18, 2013

Osborne Group Contract Executives Corp. President and CEO Mark Olson is pleased to announce that Bill Churchward has been appointed to the Board as Director.

"I am pleased to announce that at our November AGM the shareholders unanimously voted Bill Churchward onto the Board of Directors. Bill, has been a long serving and accomplished Principal (ten years) and recently was named Head of Practice - Agri-Business", says Mark.

As an industry veteran, Bill has been providing value to Osborne and its clients with his positivity, decisive leadership, astute problem solving, winning business strategies and strong communication and team building skills. His management experience includes operating small to mid-sized businesses serving both domestic and global markets. He is a facilitator, executive advisor, mentor and skilled negotiator and represents the true diversity of the Agri-Business sector, from bio-energy to value-added production and food processing.

Monday, November 4, 2013

SIMON BATCUP JOINS THE OIM TEAM

Osborne Interim Management is pleased to welcome Simon Batcup (B.Comm) to the organization as Principal.

Based in Calgary, Simon is a versatile senior executive with strengths in small business start-ups and turn-arounds. He has successfully participated in a number of public and private ventures providing insight into a variety of financing alternatives, with a particular focus on logistics, oil and gas services and IT. Simon has brought this knowledge to bear in the turn-around of several companies. He has tackled challenges such as revenue growth, cost reduction, productivity, union negotiations and software implementations. He is committed to quality management, the implementation of quality programs and to strong measurement tools. His interest in an environment of safety has resulted in added responsibilities at a management and Board level. His focus on building a strong balance sheet and dynamic team, along with strong revenue growth, a sense of commitment and customer service has lead to a savvy senior executive capable of adapting quickly to new and challenging environments.

Thursday, October 10, 2013

MANAGING THE TWO WORLDS OF SOCIAL ENTERPRISE - COLLABORATE OR COLLIDE

With the world social enterprise forum having taken place in Calgary last week, it’s an appropriate time to step back and take a look at the challenges such organizations face.

By definition, a social enterprise is a for profit business that also carries a strong social mandate. As such as a start-up it faces some of the same challenges any incubator company may have. However it also carries certain advantages and disadvantages to market.

Recent experiences with two new SE’s suggest they have more support at the front end than the entrepreneur who needs to establish proof of concept before attracting investment capital. Loans from sponsoring agencies and foundations, as well as available government grants, provide an initially solid operating basis. That capital can dissipate rapidly however if the business case is not validated in the market and the enterprise is handcuffed in its ability to be nimble and scalable. Third party validation of the business concept is a critical early step. It removes the social bias and helps benchmark best practises within the launch market. Usually, work force training and integration is integral in the social return sought by the sponsor. Over aggressive targets to that end and ignoring the need to utilize workers that fall outside the mandate can be a mistake. Stakeholders must appreciate and support the need to succeed in the market as a regular business first, because if the business fails, the reason it was created in the first place, matters not. Whereas stakeholder enthusiasm supplants family and friends as a driving force at the outset, it can turn on a dime if there is a feeling that an overly commercial direction is being taken versus achievement of the social good everyone envisioned. That is why leadership and communication have to be keynotes of the operation. The CEO/COO must bring credibility with respect to the cause as well as relevant business savvy. He/she needs to communicate clearly internally and externally what the enterprise must accomplish in both program and revenue generation in the pursuit of its vision. Faced with a lean support staff or perhaps initially only assistance provided by sponsors, they must be willing to roll up their sleeves. Contracting aspects of the Finance, HR and Marketing functions can keep the enterprise scalable while it is building its business in the marketplace. Fiscal discipline is critical, or like with any start-up, the business will quickly burn through its available cash and the CEO will spend all his/her time searching for new investment.

There is a balance to achieve between leveraging opportunities in the market created by public awareness to the social goals, and having customers utilize your services because of how well you market yourself. Within the industry vertical that the business is in, it is important that companies, who might otherwise be staunch competitors, believe that the enterprise is not out to erode their market share. Rather, they see how the available work force can be enhanced through providing real opportunities to challenged individuals. Initially, contracts and clients, not profits, should be the goal. However, pricing well below the market creates longer term issues for the business and can antagonize companies engaged in the delivery of similar services. Additionally, labour needs to be properly compensated relative to experience and skills. Otherwise, no different than with any other business, quality, production and customer satisfaction will suffer. Social Enterprises inherently have a much higher cost of dedicated HR support for program development which becomes challenging if there is a negative gross margin after cost of sales.
 

Governance is an important issue. As quickly as possible, the social enterprise should have its own dedicated management team and Advisory Board. The sponsoring agencies need and deserve representation, but business advisors with relevant industry experience, as well as certified professionals in law and accounting, should also be appointed. Advice should be sought relative to the tax implications of its revenue generation model and what must be done to maintain compliance with and qualify for government grants.

At the end of the day, with far too many not-for-profit agencies serving the same constituents, the organizations who survive will be those who learn that in order to make a difference in the community, they need to also differentiate a business that can be effective enabling profits as well as people.

Mark Olson (click to see Mark's profile)
Managing Partner & Principal

THE RISE OF SOCIAL ENTERPRISE SUPPORT

The evolution of social enterprises has been determined, by some, as a declining confidence in our capitalistic society’s ability to make positive community change. Is this driven by the values and needs of the next generation? Perhaps, perhaps not. But what we are seeing is more social enterprises being started world-wide than ever before. The good news is that social enterprises the world over are proving that capitalism and conscience are not mutually exclusive. These are the growing number of businesses – often small and medium-sized enterprises – that are run both for social good and, crucially, for profit.

Also worldwide there is an interest in supporting
the evolution of social enterprise through education. In the UK, Oxford University’s Said Business School has the Skoll Foundation, a social entrepreneurship centre founded by eBay billionaire Jeff Skoll. In the US, the Schwab Foundation, the organizer of the annual festival of capitalism in Davos that is the World Economic Forum, is a major backer of the movement. Here in Calgary, the Trico Charitable Foundation hosted the 2013 Social Enterprise World Forum which attracted 1,200 delegates from around the world. This major conference is a feather in the cap of the Trico Charitable Foundation, which was established in 2008. This foundation seeks to provoke innovation and build capacity in social entrepreneurship. Its programs, initiatives and partnerships are dedicated to growing a community of sustainable, entrepreneurial organizations. While some of their programs define social enterprise as "a business operation commonly run by a charity or non-profit organization. Revenue raised by the business operation is reinvested into the charity or non-profit to support their programs and operations," other programs go beyond the non-profit realm and celebrate social purpose businesses that blend social and financial goals.

The Trico Foundation encourages social enterprises to use entrepreneurial innovation and reinvest profits to improve a social mandate. Additionally, a social enterprise will often engage the services of the clients that the organization is supporting. The skills that the clients develop in sales, business operations, and administration may be utilized to access job opportunities outside the enterprise.
 
Trico Charitable Foundations’ Enterprising Non-Profits (enp) Alberta is a collaborative program that provides matching grants and technical assistance to non-profit organizations to support the development or growth of their social enterprises (i.e., revenue generating businesses). enp holds "Building your Social Enterprise" workshops in the Spring and Fall for non-profit organizations wanting to learn more about social enterprise and how to gain access to enp grants for business planning projects.

The Enterprising Non-Profits Alberta Program uses the term "social enterprise" to refer to business ventures operated by non-profits, whether they are societies, charities, or co-operatives. These businesses sell goods or provide services in the market for the purpose of creating a blended return on investment, both financial and social. Their profits are returned to the business or to a social purpose, rather than maximizing profits to shareholders.

As Mark Olson states in his article "social enterprises have more support at the front end than entrepreneurs". If you are starting a social enterprise on its way, the most difficult part is the first step. Look to others to help you in the first step and build a solid foundation to see success in the future.

Catherine Cook (click to see Catherine’s profile)
Principal
Head of Practice - Not-for-Profit & Social Enterprise
 

SOCIAL ENTERPRISE: PROFIT MEETS NOT-FOR-PROFIT - CAN THEY LIVE TOGETHER?

While the concept of raising money for a charitable cause is not foreign to not-for-profits, shifting from a not-for-profit mindset to a for-profit mindset often means taking an Executive Director into unfamiliar and uncomfortable territory. The move to a more advanced and sophisticated fundraising concept of for profit social enterprise can be fraught with philosophical and operational challenges, as well as some traps and obstacles.

Mark Olson, Managing Partner of Osborne Interim Management, has defined social enterprise as "a for-profit business that also carries a strong social mandate". For many people those are two opposing philosophies: "for-profit business" and "social mandate". How does an organization which has as its bottom line the delivery of a charitable service or educational programming, wrap its collective mind around delivery of a strictly financial bottom line? How can those two ideas match up and how does a NFP organization go about achieving a marriage of the two seemingly competing philosophies, and most important of all, how can an NFP be successful at it?

These questions have been debated by NFP Boards and managements quite a bit lately as the popularity of social enterprise businesses as a source of funds is increasing. Following are some tips on how to address the traps and obstacles, plus the inevitable start-up issues that all NFP Boards and Executive Directors must face in thinking about a social enterprise operation:


Board Versus Executive Director:
Issue:
Most NFP Boards are drawn from the corporate or private sector. Usually the directors have a passion for the cause and perhaps even a personal connection. However, coming from the for-profit world means that directors will focus on the bottom line above all, and that can mean a clash with a service minded Executive Director. For example, ethics and integrity are usually higher in NFP’s as "must have" elements of a business plan than in for-profits.


Strategy: Before embarking on any planning or business model discussion, the first topic to be settled is that of Board and Executive Director agree on the balance between business practices and NFP philosophy. This will require some compromise by both parties so that one philosophy does not dominate over the other. Without that meeting of the minds, the enterprise will likely fail owing to one side or the other not buying into the business model.


Viability and Sustainability:

Issue:
Success of the proposed business depends on there being a defined market and a minimizing of risk. Too many NFP’s believe that "if we build it, they will come", and that is not a credible foundation for launching a business of any kind.


Strategy: Test it! A feasibility study to test the concept and the marketplace appetite is a necessary investment. While a Board or Executive Director may think a business concept is a sure thing, any enterprise needs a validation from some research and testing. Gut feel is helpful and can be emotionally supportive, but it is not a business strategy.


Compatibility with Core Beliefs and Mission:

Issue:
The biggest trap for unwary NFP’s is that of choosing a potential enterprise based solely on what might make the most money without regard to its fit and compatibility with the NFP and the NFP’s constituency. To take an extreme example, an activist environmental organization would be foolish to get in to a car dealership.


Strategy: Identify possible enterprises, not only for their commercial potential, but for compatibility with the organization and its stakeholders.


Separate Board and Management:

Issue:
It requires specialized expertise to create a master plan for a business of any kind, and especially for one that has the added sensitivity and uniqueness of a social enterprise. Because a Board or NFP management can successfully operate its NFP does not mean those skills are transferable to a social enterprise. Also, the fact that a Board may include successful business people from the corporate sector is no guarantee they can successfully transfer those skills to a social enterprise model.


Strategy: Create a separate management and governance structure that may share some resources with the core NFP, but which brings the required expertise to the enterprise. This may mean leasing the operation to a third party with a track record and expertise, but also with a commitment to the particular NFP. For example, restaurants and events catering can be and have been profitable enterprises for NFP’s, but this is a precarious industry that needs experienced and knowledgeable day-to-day managing and supervision.


Start-Up – Expense Versus Investment:

Issue:
A not-for-profit might have identified a really good social enterprise opportunity that seems to align with the organization’s values and philosophies, but it hasn’t allowed for sufficient business planning and marketing costs, and is not sure it has enough funding to launch.


Strategy: Identifying and funding all true costs of a start-up are the greatest cause of business failure, whether in the private sector or in social enterprise. The first thing organizations cut if funds are short are marketing and business planning costs. The correct strategy to have is to see these as investments, not costs. Without marketing, financial planning and other expertise, any enterprise will be starting with an operating liability.

The issues above are some of the key areas to be addressed in looking at a social enterprise operation, and there are others. The essential ingredients to success are:
  •    Strategic, financial and marketing planning.
  • Alignment with the organization’s core values and philosophy.
  • Separate governance and management.
  • Realistic expectations.
So, by all means pursue a business as a social enterprise and it could be an excellent source of revenue for your not-for-profit. However, if you build it, they will not necessarily come. You have to get them to want to come, and that means having a viable business plan, good marketing and a reason for people to support your enterprise other than supporting a worthy cause.

Blane Hogue (click to see Blane's profile)
Principal  

Monday, September 30, 2013

CATHERINE COOK APPOINTED HEAD OF PRACTICE - NOT-FOR-PROFIT & SOCIAL ENTERPRISE

Catherine Cook
Osborne Group Contract Executives President and CEO Mark Olson is pleased to announce that Catherine Cook (B.Comm, CMA) has been appointed Head of Practice – Not-for-Profit & Social Enterprise.

"There is so much need in the not-for-profit sector for cost effective executive assistance and expertise when it comes to launching social enterprise ventures. Catherine’s rich NFP experience as an interim executive, combined with her strategic business acumen, will serve our clients well in her new role as Head of Practice for this sector," commented Mark Olson.

Catherine adds "I am looking forward to further serving not-for-profits and social enterprise organizations. So many of these organizations can benefit from our team's executive experience and knowledge in strategy and organizational effectiveness. Whenever I chat with many of these organizations, they are pleased to hear Osborne’s services can be molded to fit their organizational needs in a cost effective manner. I appreciate the Osborne team's belief in my leadership and ability to grow for our clients and partners, and am very much looking forward to the coming years."

Catherine can be reached directly at (403) 264-8195 (ext. 1005) or ccook@osborneinterim.com.

Thursday, September 5, 2013

WHAT ARE THE COMPETITIVE CHALLENGES FOR CALGARY AND CANADA'S TOURISM SECTOR?

Canada is a great country, rich in natural resources, pristine beauty, abundant wildlife and cultural diversity.  We are seen by the world as a safe and clean destination with welcoming people. In fact, in many surveys, people from around the world have Canada on the top of their “hope to visit one day” list. Additionally, in FutureBrand’s Country Index, which measures the strength of a nation’s brand, Canada finished first in 2010 and 2011 and was placed second in 2009 and 2012 – four years running as one of the top two country brands in the world.
 
At one time, and as recent as 2002, Canada’s international tourism arrivals was 7th in the world – Canada  today sits 18th! The USA market for Canada has dropped by 55% since 2000. Mexican visitation to Canada has dropped from 53,000 visitors in 2008 to 23,000 visitors in 2011. Canada’s travel deficit (dollars spent by Canadians outside the country versus dollars spent by international visitors in Canada) has inflated to $16 billion, a six fold increase in a decade. Canada’s visitor economy is growing at half the rate of international growth. And over five million Canadians cross the border each year to depart from a USA airport rather than a closer Canadian airport – a national disgrace!

So why are Canada’s tourism results a contradiction to the abundance we offer and our international brand positioning? The facts are, we have some critical competitive challenges we need to overcome in order to capitalize on the fourth-fastest growing export sector in the global economy. And in this competition, if Canada has a competitive issue, then every community in the country has a competitive issue. 
 
There are a number of challenges, and because many of them can be overcome, each represents opportunities for us to grow travel and tourism. Here are the top five the industry agrees upon:
 
 · Marketing investment – Canada’s federal investment in marketing Canada to the world is going to be $58 million in 2014, half what it was a decade ago. Compare that to India ($294M), Ireland ($211M),   Mexico ($153M), Australia ($147M) and Malaysia ($128M). Additionally, at the provincial and municipal levels, marketing investments are inconsistent and fractured amongst different stakeholders, diluting and duplicating messages and efforts. 
 
 · Cost of Air Travel – The cost structure of Canadian aviation downloads the cost of the system onto the individual traveler, with an assortment of taxes, fees and levies – including landing fees, security charges, navigation fees, airport rents, etc. – inflating the already significant base fees of an airline ticket. As a   result, flying in and around Canada is comparatively amongst the most expensive anywhere.
 
 · Travel Visa Although improvements have been made in Mexico and Brazil, citizens of many countries find it to be too difficult and take too much time to receive a Canadian visa. The reason Mexican visitation dropped so significantly is that the Federal Government imposed a new visa requirement in 2009. Chinese visitation has grown dramatically in the last three years because of increased access through the Approved Destination Status agreement in 2009.
 
 · Seasonality – Canada, like all Northern Hemisphere countries, experiences an annual migration each winter of its citizens looking for sun and sand opportunities, creating a travel deficit for their tourism economies. Skiing, snowmobiling, dog sledding and other winter products helps to mitigate this issue but Canada needs more product development offering experiences late fall, winter and early spring.
 
 · Human Resources – Tourism labour demand is forecast to grow by 33% from 1.6 million jobs in 2010 to 2.14 million jobs in 2030, with more than 228,000 jobs in the tourism sector going unfilled across the country due to lack of workers. Even today tourism is handicapped with a lack of human resources depending on temporary foreign worker programs or suffering through poor customer service.
 
At Osborne Interim Management and Osborne Business Advisors, we can help owners and operators understand how these and other challenges can be overcome. Knowing the competitive obstacles affecting your global and national markets will help operators to better sell their tourism product or experience.   

Randy Williams (click to see Randy's profile)

Principal
Head of Practice - Hospitality, Tourism, Destination Management

 

OLD FRIENDS NOT VISITING AS MUCH; BUT WE ATTRACTED MORE NEW FRIENDS!

The data for this summer will not be released until later in the fall, but early signals of what the whole summer will be like are seen in the June results. Although many people believe tourism in Canada only happens in the summer time, and that is probably because the international tourists by sheer volume are more noticeable and because Canadians themselves become tourists more often in the summer, the travel industry is a year-round business. It is true that for Canada June, July and August represents over one third of annual trips – in other words, our peak months.

In June, it is interesting that our biggest inbound to Canada visiting countries – USA, UK, France and Germany – all saw decreases in visitation to June last year. These countries represent our traditional markets, or our old friends. China, Australia, Mexico, South Korea and India visitors were all on the rise in June. For the most part these are new friends from new markets.

In June, American visitation was down 0.8%; a market where Canada has seen an over 50% drop since 2000. The UK is our number one overseas market and it dropped 2.6%, while France (-6.7%) and Germany (-4.3%) were also sluggish. China continues to grow significantly since 2010 and the introduction of Approved Destination Status, seeing 22.1% growth in June alone. Australia continues to surprise with 5.0% growth. India (+2.8%) and South Korea (+6.4%) are very encouraging because of the size of those markets.

It is safe to suggest that these results for June in Canada should follow for the next two summer months of July and August. Although the numbers reflect a good mix of positive and negative results possibly indicating strong growth in international travel, this is not the case. The USA represents by far our largest inbound market outweighing all other international markets combined! An 0.8% decrease in the USA in one month represents about 12,000 visitors and the huge growth from China, Mexico and Australia combined represents less than 11,000 visitors.


Canada is not keeping pace with global growth in tourism revenues and visitations. Canada is growing in both benchmarks by about 2% per year, but this represents half of global percentage growth. In 2002 we were the 7th most visited country in the world – today we rank 18th and slipping. There are a number of reasons for this which are addressed in another article – What Are the Competitive Challenges for Calgary and Canada’s Tourism Sector?.

The good news is that domestic travel – Canadians visiting other Canadian destinations – is strong. Domestic tourism is now the life blood of our tourism sector representing 80% of this country’s $79 billion industry. The bad news is that international tourism to Canada then represents 20% of our tourism economy, whereas only ten years ago international visitors represented 33% of our sales mix. This dependence on one market, as in any business, is not healthy and is risky. Additionally, international visitors stay longer and spend more than domestic travelers.

Keep traveling Canada – it’s a great country and worth exploring!

Randy Williams (click to see Randy's profile)

Principal
Head of Practice - Hospitality, Tourism, Destination Management

TAKING A TRIP IS MORE IMPORTANT THAN YOU MAY KNOW

As the summer season winds down for 2013 it is apropos to reflect on the importance of an activity all of us probably enjoyed these past few months – traveling close to home or exploring another country! Why is the fact that you traveled and became a tourist important? Well, for many reasons; some you would instinctively know already and others you may not have thought of.

When you and others travel you inject $79 billion into the Canadian economy, $5 billion into the Alberta economy and $1.4 billion into the Calgary economy. These are important revenues to our economy as they provide $22 billion in tax income to all three levels of governments, which in turn helps pay for education and health care. Calgary’s municipal government received over $50 million in property tax revenues from tourism businesses and people living here and employed in the industry. These revenues also supported 1.6 million jobs in Canada and 90,000 jobs in Alberta; almost one in every ten people that work in this country.

These expenditures also inject new monies into economies with $15.4 billion in Canada and the $1.4 billion in Calgary representing export revenues. Obviously, new money is essential in sustaining an economy and allowing all businesses opportunities to grow their markets. Tourism represents a greater GDP contribution to the Canadian economy than agriculture, forestry and fishing industries combined!

Ok, so your decision to travel this summer contributed to the economy and supported employment, no surprise there – and your credit card and bank statements probably already reminded you of this fact. However, I would contend that your trip was probably more important to you, friends and relatives and the communities visited than the economic impact, and this may surprise you.

It is generally accepted that there are three motivations for travel: leisure/pleasure, business and personal. Business travel includes meetings, conventions, incentive travel, independent business travel, group study tours and blended travel. Personal includes travel for doctors, legal, and hospital visits. But let’s focus on leisure/pleasure trips because, we hope, that is what your summer travel was most likely motivated by. These trips include vacations; attending events like sports, festivals, concerts; shopping trips; weekend getaways; visiting friends and relatives, group tours and blended travel (business and pleasure).

Leisure travel is a chance for you to escape, re-energize, rejuvenate, recharge, re-acquaint, or to learn and understand more. It is most likely that if I asked you why you invested some of your disposable household income in a trip, at least one or two of these reasons would be cited. And good for you, each of these are important. But beyond buying an escape or investing in rejuvenating yourself or re-acquainting yourself with friends, the tourism industry works hard to turn these motivations, into experiences that will become unforgettable and transformational.

As everyone rolls into the classrooms and offices after Labour Day the hallway talk will inevitably be about what you did this past summer, and I bet your trip will be one of the most memorable. When you look at the most memorable photos in your digital or print albums, the most important ones will likely be taken on a trip. When families reflect back on their quality times together, no doubt it will be when they traveled together somewhere, whether it was for two days or two weeks. And when you share insights about other people in our global community, it is probably because of your knowledge gained in experiencing the culture and way of life of citizens in another country, or even our own.

So how important was that trip? When you think of these benefits, you may argue that Canada’s ranking of 19th of 21 OECD nations in paid vacations and holidays needs to be improved.

But let’s give three more reasons why traveling is an important thing to do by asking three questions:

  • Do you believe that if Canadians travelled their own country more, Canadians pride in their country would improve and their passion for national unity would increase?
  • Do you believe that people would be more tolerant and understanding of other races if they experienced and appreciated more of their culture?
  • When a visitor comes to your city or town and says to you how much they enjoyed one aspect of their stay or how beautiful our community is, what does this do for your sense of place or pride in where you live?
If you think about these questions and the role travel and tourism plays in answering them, I am confident that you will conclude that taking a trip is important in many ways, and maybe more ways than you first thought about.

Thank you for traveling!

 
Randy Williams (click to see Randy's profile)

Principal
Head of Practice - Hospitality, Tourism, Destination Management
 


Wednesday, August 28, 2013

BILL CHURCHWARD APPOINTED HEAD OF PRACTICE - AGRI-BUSINESS

Osborne Group Contract Executives President and CEO Mark Olson is pleased to announce that Bill Churchward has been appointed Head of Practice – Agri-Business.

For the past decade, as a Principal of Osborne Interim Management, Bill has been bringing value to a number of clients that represent the true diversity of the sector, from bio-energy to value-added production and food processing.

"Bill is a natural to lead Osborne’s efforts in agri-business. In reality, due to his broad network in the industry and track record for delivering strategic solutions to our clientele, he has been in this role, de facto, for many years."

As an industry veteran who began his career in Ontario but moved to Calgary in the early 1990’s with Canada Malting, Bill has seen dramatic growth in the sector. "Agri-business is arguably emerging as one of the highest potential global industries – well positioned to address of some of the world’s most compelling challenges. With innovation and bold new trade initiatives, agri-business has the potential to lead the growth of the Canadian economy and provide Canada the opportunity to reclaim its position as a global agri-business leader" says Churchward.

As Principal and Head of Practice – Agri-Business, Bill will be able to draw on the multiple resources within both Osborne Interim Management and Osborne Business Advisors to assist companies whether they require executive leadership, operational or financial expertise, senior human resources assistance or business development.

Bill can be reached directly at (403) 264-8195 (ext. 1004) or bchurchward@osborneinterim.com.

Friday, August 9, 2013

OIM WELCOMES DAVID INNES TO THE TEAM

Osborne Interim Management is pleased to welcome David Innes (MA) to the organization as Principal.

David leverages his leadership expertise as a veteran public sector executive at the CEO and Deputy Minister level to offer a client-focused, results-oriented, collaborative approach in developing solutions to management and policy challenges facing public sector and industry organizations. He has in-depth experience managing organizations with operating budgets in the $100M - $500M range and expertise in implementing, managing and regulating electronic gaming operations, evaluating and developing appropriate operational and regulatory gaming policies. He is also proficient in land use planning and development, public policy evaluation and development, strategic planning, organizational restructuring, budget planning and management.

Thursday, August 8, 2013

COMPANY SUCCESSION PLANNING - EARLY DAYS

"Succession planning" - how many times have you seen these words lately? Everyone, me included, wants to sell you their services for strategy, tax planning, brokerage, finance, whatever. Bemused and confused? Then let’s step back and think about a few critical things. You might even take a piece of paper and get some thoughts down.

First, be realistic. There will be hard truths to face. There will be more work and frustration than you think. This article is not comprehensive and your circumstances will drive the process. Make a start now and calmly work through it.


To read the remainder of the article, click here.

Tuesday, August 6, 2013

BLANE HOGUE JOINS THE OIM TEAM

Osborne Interim Management is pleased to welcome Blane Hogue to the organization as Principal.

Based in Calgary, Blane brings his clients the powerful combination of broad senior management and CEO experience as well as highly developed specific skills in marketing/communications, small business management, brand building, and not-for-profit/museum management. Drawing on a range of local, regional and national experience in the corporate, university, public broadcasting and not-for-profit/museum sectors, Blane applies strategic focus and transformational planning to clients’ needs and goals for short-term projects or longer term assignments, all with identifiable results.

Wednesday, July 24, 2013

NEW MANDATE - METICULON/AUTISM CALGARY

We are pleased to announce that Osborne Interim Management and Osborne Business Advisors will be jointly providing executive advisement and research services to Meticulon/Autism Calgary.

Meticulon is a start-up social enterprise working with Autism Calgary and the Sinneave Family Foundation. This unique company will provide IT services in specific areas where individuals on the autism spectrum can excel. Osborne will undertake an environmental scan with primary and secondary research to determine what service offering is most likely to be successful and scalable.

Monday, July 8, 2013

BUYING KNOWLEDGE: OUTSOURCING INTELLECTUAL SERVICES

Do you have a strategic plan, an engineering study, a supply chain solution, or a new performance review system gathering dust on a shelf somewhere in the office? Did you invest substantial fees in a project that you hoped would move the business forward, only to have your management team go right back to doing what it did before?

To read the remainder of the article, click here.

Tuesday, July 2, 2013

RANDY WILLIAMS, PAST PRESIDENT AND CEO OF CALGARY TOURISM, JOINS THE OSBORNE TEAM

Mark Olson, President and CEO of Osborne Group Contract Executives Corp., is pleased to announce that Randy Williams has joined the organization as Principal and Head of Practice: Hospitality, Tourism and Destination Marketing.

Randy was formerly the President and CEO of Calgary Tourism. Prior to that he served as President and CEO of the Tourism Industry Association of Canada, President and CEO of the Association of Canadian Travel Agents , President and CEO of Tourism Saskatchewan and had a lengthy career in hotel management at a number of leading properties across the country.

"Randy is an exceptional executive, recognized expert and demonstrated leader who has an unparalleled level of experience in all facets of the hospitality, tourism and destination marketing industry", states Mr. Olson. "This sector is hugely important to our economy in Western Canada. As in any of the industries we serve there are many challenges that we can help Randy address through the resources of both Osborne Interim Management and Osborne Business Advisors."

"I am very excited to be able to join a well-established and respected firm like Osborne", says Williams. "Many years of success in managing and leading growth and change within the hotel, travel trade, tourism education and destination marketing/management sectors leaves me in the perfect place to apply my vast networks and experience to build the hospitality, tourism and destination management practice within Osborne."

"The ability to join an existing firm like Osborne with a professional team in place as Principal and Head of Practice is a significant opportunity, and should provide a 'win-win-win' for myself, Osborne and most importantly, our clients!" added Mr. Williams.

Thursday, June 6, 2013

THE OSBORNE OBSERVER - ROI ISSUE (PART TWO)

A good Return on Investment in a business environment is measured in various ways depending on the organization and its goals. In this issue of The Osborne Observer we take a closer look at what investors are looking for in the private sector. Thanks to Nigel Peters (Alium Partners), Michael Palmer (Palmco Inc.), Philip Doublet (Doublet Management Consulting Ltd.) and Howard Johnson (Veracap Corporate Finance Limited) for contributing.

To read the newsletter, click here.

Thursday, May 9, 2013

THE OSBORNE OBSERVER - ROI ISSUE (PART ONE)

A good Return on Investment in a business environment is measured in various ways depending on the organization and its goals. This month's newsletter explores how important ROI is and how it might be measured in retail messaging and merchandising, sponsorships and with not-for-profits. Thanks to Karen Lynn Hope (Osborne Business Advisors), Brent Barootes (Partnership Group-Sponsorship Specialists) and Simone Brown (The CalgaryBridge Foundation for Youth) for contributing.

To read the newsletter, click here.

Thursday, April 4, 2013

WHY RISK THE SUCCESS OF YOUR BUSINESS?

Whether you lead a small entrepreneurial business, a non-profit organization comprised of a few staff or a business with over 100 employees, success will be more difficult to attain without a business strategy that aligns your human capital to the growth plan. While this may not be a revelation to many of the readers, how to get there is sometimes illusive.

Business leaders usually believe they understand how to manage the people side of the business because it is their vision that is framing the roadmap for success. However, they may have also found out the hard way that their businesses can be crippled by a lack of understanding of the very fundamentals of Human Resources.


How many of you have lost critical talent because of poor management, competition in the marketplace, lack of promotional or developmental opportunities or even possibly a poor workplace environment? With every business leader watching the bottom line, an integral piece of the plan for the business is an HR strategy that focuses on the three R’s (recruit, reward and retain). The cost of turnover has been well documented over the years – between 150 to 250 percent of the total compensation, depending on the position of the employee.


To read the remainder of the article, click here.

Thursday, March 7, 2013

WHAT IS THE TRUE COST OF HIRING AN INTERIM?

Interim was started in Holland in the 1970’s as a way of injecting much needed flexibility into the market place. Canada is encountering similar issues in the employment market place that Holland saw. Slowly but surely the marketplace is transitioning from being run by the employers to being run by the employees. The main impact is Canada’s greying population. The average baby boom age is 55. They have raised their families and are thinking about retirement. Employers are seeing an average of twelve months and sometimes 18 months to find qualified senior executives. Manpower’s seventh annual “Talent Shortage Survey” found that 25% of Canadian employers are having trouble finding workers with the global average being 34%. The survey uses information from more than 38,000 employers around the world, including 1,000 in Canada. The first survey in 2006 found that 66% of Canadian employers had difficulty finding staff. This number was indicative of the high flying economic times in 2006 and 2007 which prompted companies to expand and compete for workers. All expectations are for the number of employers having trouble finding employees to continue to rise over the coming years as baby boomers enter into retirement. Productivity in Canada continues to be average. Canada ranks 14th on Wikipedia’s list of countries by GDP (PPP) per hour worked. All these indicators point to the need for greater flexibility in the market place similar to the situation in Holland in the 1970’s. Interim is one solution, but is it a costly solution?

To read the remainder of the article, click here.