Canadian HR Reporter

Strategic capability Network'S paNel of thought leaders brings decades of experience from the senior ranks of Canada's business community. eir commentary puts HR management issues into context and looks at the practical implications of proposals and policies. Canadian HR RepoRteR august 11, 2014 ExECUTIvE SERIES 9 www.scnetwork.ca Join our professional community of Canadian HR & Organizational Leaders: • Connecting @ monthly events • Collaborating with peers • Challenging conventional thinking The Power of Human Capital CULTIVATING LEADERSHIP FOR 35 YEARS Great Leaders GROW www.scnetwork.ca what Canada can bring to the party DoUg WIllIamSon outlined a grim economic future if Canada doesn't expand beyond its reliance on its primary trade relationship with the United States. michel Sylvestre and James louttit outlined their busi- ness and personal experience operating outside Canada. What was missing was a broader focus on Canada's unique position and op- portunities for operating at the global level, as seen below. Canada's new natural resource: traditionally, Canada has relied heavily on natural resources to drive the economy. But the country has another renewable natural resource to leverage — its broad base of im- migrants who have retained their multicultural identity, rather than being subjected to a "melting pot" philosophy, as in the U.S. ere is a significant number of people who, even beyond the first or second generation, are able to relate to cultures other than just a Cana- dian one. In aggregate, they under- stand the needs and opportunities and how to do business in almost every country in the world. ey became Canadians seeking a better life, are willing to work hard and value education. Marginalized by a lack of Canadian experience or hiring practice inertia, they are underemployed or under-utilized and would welcome the oppor- tunity to innovate and demon- strate what Canada could do to bet- ter access various global markets. Canada needs to mine this new resource. Canada has sound business practices: Prior to 2008, Canada's banks chafed under what they con- sidered unduly restrictive financial policies and regulations with respect to U.S. and other global banks. Yet when the financial meltdown oc- curred, the world looked at Canada's banks and economy with envy and a new-found respect. e Canadian financial sector is relatively concentrated in a few large organizations that operate across the entire country and, to varying degrees, in other global economies. While looking to be more innova- tive, Canada needs to leverage the confidence in its base of prudent business practices to create opportu- nities and contribute to a more stable global economy. Canadians are nice: While there are those who say Canadians are too nice, the fact remains that those who travel the globe would rather be known as Canadian as opposed to almost any other nationality. ere are multiple contributing factors to this perception: Canadians tend not to be xenophobic or parochial, they travel the world and are curious about and open to other cultures which, in turn, makes them more respectful of other cultures. While there may be a few "ugly Canadians," a Maple Leaf flag on luggage or a backpack normally trig- gers a good response outside Cana- da. Being nice doesn't preclude be- ing ambitious, taking risks or being successful. Canada has its own brand of innovation and creativity: In the arts, health care, animation, tech- nology and many other sectors, Canada has demonstrated talent that other countries recognize. In many cases, the talent gains access to the world market through the U.S. In a few instances, such as the toronto International Film Festival or the Sprinkles Global health Ini- tiative (to deliver micronutrients in the form of "sprinkles"), Canada makes its mark and brings the world to its doors: Canada is a driv- ing global force. e country needs to find other opportunities to create its own in- novation and creativity industries to gain recognition beyond the indi- vidual contributors and develop de- mand for a made-in-Canada brand. Canada has a long history but is also new: history saw Canada grow from english and French colo- nies, with the U.S. even having some claims. It evolved into a confedera- tion within the British Common- wealth, which gave it access to and relationships with countries across the globe. Yet Canada did not have its Maple Leaf flag until 1965, and the Procla- mation of the Constitution replaced the British north America Act in 1982. Canada has not operated as a colonial master itself. Within its Confederation, it has had to deal with the challenges of balancing the diverse interests of Quebec, Ontario and eastern and western provinces. It has had to find creative ways of accommodating the needs and interests of a province that is largely French and those that are primarily english — in language, legal foundations and culture. In business, many large compa- nies have adopted a colonization approach. ey have a clear head- quarters in one country and have expanded globally to exploit oppor- tunities and increase their sphere of influence, practising what could almost be considered economic colonization. In contrast, the experience of Confederation and understanding of cultural differences gives Cana- dian companies the opportunity to build a business model based on the Canadian experience of collabora- tion, respect for differences and co-operation. With a shared border, Canada will continue to see the U.S. as a major trade partner. however, as Canada uses its unique resources, perspec- tives and positive image to expand into new global markets, its busi- nesses will have many opportunities to "Do it our way, eh". Karen Gorsline is SCNetwork's lead com- mentator on strategic capability and leads HR Initiatives, a consulting practice fo- cused on facilitation and tailored HR ini- tiatives. Toronto-based, she has taught HR planning, held senior roles in strategy and policy, managed a large decentralized HR function and directed a small business. She can be reached at gorslin@pathcom.com. Karen Gorsline Strategic Capability Playing the game to win WHy arE Canadian businesses so non- competitive on the world stage? In 2013, we were ranked 14 th out of 61 countries on the competitive scale, according to the Confer- ence Board of Canada. (norway was number one, luxemburg was number two). We didn't even get into the top quartile — and our 2014 ranking threatens to be even worse. Why do we perform so poorly? Is it because we lack skilled talent? Ap- parently — according to the 2014 Pearson Education Attainment Index, Canada is in seventh place worldwide (the United States is in the 17 th spot). Maybe we just don't have enough global experience? not true: the World trade Organization says of all the G7 countries, Canada ranks number two in world trading, where more than two-thirds of our GDP's worth are goods and servic- es sold to other countries — albeit mostly oil, minerals and lumber (Germany is number one). Perhaps it's because our business- es are placed at an unfair tax advan- tage here at home? Actually, a 2014 study by KPMG ranked Canada as the world's most tax-friendly coun- try for business. Well, what about a lack of access to foreign markets? here, too, Can- ada has 10 free trade agreements in place and is currently negotiating 14 more. Could it be a lack of other govern- ment assistance then? hardly. e federal government helps compan- ies through agencies such as export Development Canada, FedDev, Global Markets Action Plan. Plus, it provides monetary incen- tives via programs such as SR&eD, ecoeneRGY, CRD Grants, engage Grants, Knowledge Mobilization Initiative, Mitacs and IRAP. In addition, the federal government and each province offer incentives unique to their specific geographies and groups. So if it's not the availability of a skilled workforce, global trading experience, access to and assistance in penetrating rapidly expanding global markets or R&D collaborat- ing services and monetary incen- tives, what could it be? Why do we continue to languish, year after year, at a productivity level that's only 80 per cent as good as the Americans? Seeking management In a word: Management. More precisely, a lack of competent management. the responsibility to improve Canada's productivity rests squarely on the shoulders of our business managers. While it is the leader's job to paint the vision and map the strat- egy, it is management's job to execute this strategy. Management is responsible for establishing the most effective or- ganizational structures, acquiring and training the right resources, implementing the best processes possible and overseeing their suc- cessful execution in order to achieve the company's objectives. Clearly this is not being done. Morgan Smyth Leadership in action TRULY > pg. 10

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