Social Enterprise

Randall Sea Ice Composite P1050352+P1050374

10 Jan 2018

Environmental Awakening Fusing of Science, The Arts and Sea Ice

Even though a life-long environmentalist, my transformative experiences up north in Canada’s Arctic regions onboard Canada C3, moved my environmental consciousness to a whole new level.

My own journey began as a teenager in the 1960s. Being a voracious reader with a strong scientific bent, was a perfect fit for me to embrace the fledging environmental consciousness of that era.

Clearly the changes during the last half century have matured my environmental world view. An early focus on simple industrial pollution was followed by the even more serious concerns about depletion of the Ozone Layer and energy conservation, building into today’s crisis of the growing impact of human-induced Climate Change. What this passage of time, accompanied by deepening adverse impacts, has taught me is that small individual actions can have huge collective impact, and that concerted efforts to change can be successful. Sadly, for many, this simple concept is abstract allowing some to pass the buck on personal action, seeing it as someone else’s responsibility. Economists even have a label for this metaphoric “fiddling while Rome burns”, namely the Tragedy of the Commons.

Many despair that our continued procrastination on mobilizing concerted action around Climate Change. whether based on apathy and misinformation, puts the entire human race at risk. For humanity, there is a huge risk we are too late to reverse the escalating levels of carbon in the atmosphere. Although time is short, I remain committed to immediate action. In an inspiring contrast to this societal apathy, I was immensely privileged to experience the Arctic with an unbelievably diverse and passionate group of change makers last summer.
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The Canada C3 expedition had myriad program elements, including being an ideal platform for science. In all, over 25 major scientific experiments took advantage of circumnavigating Canada’s coastline, the longest in the world, with much of that in Arctic waters. The experiments, a collaboration with major research institutes across Canada, gathered much needed baseline data such as:

detailed monitoring of increasing levels of micro-plastics which are becoming a major component of the biomass in all oceans. Consider the micro-plastics you now potentially ingest when you eat seafood.
DNA testing to determine the range of various ocean species and examine biodiversity.
Sampling plant species range and diversity.
Cataloguing Mites and other insect species.
Studying the emergence of the Pizzly Bear, or Grolar, an unusual hybrid enabled by habit shifts due to climate change.
Studying range and challenges of sea birds, again through climate change and human activity.

While none of these experiments were directly studying atmospheric carbon or climate directly, all exhibit the effects of these huge changes. That the Arctic is disproportionately impacted by climate change was directly visible to all participants. The temperature changes seen in polar regions are 3 times what we experience in the south, with our recent 1°C increase being more like 3°C up north. Thus, the Arctic is a harbinger of our own unmitigated climate future, making the Inuit ideal spokespeople to warn the rest of the world.
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Boris Worm & Heike Lotze, Marine Biologists — Boris Worm&Heike Lotze, Marine Biologists

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One of the great challenges faced by scientists is how share their stories in our modern, digital world in which a cacophony of voices clamber for our finite attention. The scientific method, honed over centuries, demands:

A slow and deliberate process of discovery, given to evaluating conjectures — hence it may take years before the findings of the science projects on Canada C3 can be shared.
A process favouring the probability of truth over certainty — makes it hard for scientists to metaphorically pound the table, which often puts scientific theories at a disadvantage to the general public who have no issue with asserting the truth of their, clearly less informed or even misinformed, statements.

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Thus, in communicating their knowledge, the challenge for scientists isn’t so much that they are the introverts of popular culture nor entirely that the science is perceived as dry and academic. In my many dialogues with scientists, the issue of finding new ways to communicate the important knowledge they possess to a populist audience, was a common lament. Scientists are ever searching to find new ways to help humanity truly understand their most portentous issues, such as Climate Change.

In this video, below, you can see one amazing scientist, Bianca Perren, explaining the tabular iceberg (see photos at the top of this article) that we saw when we came toward land from the Davis Strait. Bianca, being a painter, educator and Zodiac driver on top of her work as a palæoclimatologist and quarternary scientist at the British Antarctic Survey, is sending an emotionally powerful message about the last ice shelfs remaining in the Arctic. By the way, she also makes a cameo appearance in Al Gore’s recent film, An Inconvenient Sequel during work at Swiss Camp in Greenland.

Leveraging the incredible wealth of scientific talent, the wonderfully diverse set of participants helped weave a complex tapestry of knowledge and understanding. For me it was a once in a lifetime chance to participate in a rare melding of scientists working in an environment alive with poets, teachers, journalists, artists, community activists, indigenous and youth ambassadors. The eclectic combination created a magic environment while onboard, but gave some clues as to how to unlock the dilemma about communications with ordinary Canadians, both in planned and chance conversations.

Here is a brief rundown of a few of the remarkable participants just on Leg 7 of Canada C3:

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Lorna Crozier is a Governor-General Award winning poet, and Officer of the Order of Canada, living in Victoria. I was soo impressed by Lorna’s magic ability to help all of us “break through the ice” and reach new levels of understanding, for example with her poem, Polar, uniquely capturing our experience onboard. Phil Irish is a visual artist and teacher based in Elora who was selected to be one of 15 artists, one per Leg, through a fiercely competitive, Canada Council led selection process. Phil, constantly sketching and painting, inspired all of us with his visual perspective on our Leg 7 experience and built on his own environmentally driven recent practice. Likewise, Paul Rogalsi of Rouge Restaurant in Calgary, was one of 15 chefs, selected for Leg 7 from Food Day Canada chefs from coast to coast to coast. Paul was a thoughtful contributor not just gastronomically, but also as an avid environmentalist keen on sustainable living.

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Peter Poole is a renaissance man who is deeply involved in his community of Banff, Alberta and the larger world. He is a change maker with a deep commitment to conservation and honouring indigenous elders which shine through in all of his endeavours. Through other projects, he is also a very good friend. Tony Dekker is the lead singer and songwriter for Canadian indie-folk group Great Lake Swimmers. Tony is a thoughtful and down to earth musician with a strong interest in nature and relationships. Even at 19 years of age, Benoit Dupras, a Youth Ambassador on Leg 7 from northern Québec, is on a course to change the world. He is indicative of a new generation of Francophone Canadian leaders and, in his case, he aims to be a major force to move Canada, and the world, away from fossil fuels to a green energy future.

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Taivitii (David) Lawson, Inuk Activist — Taivitii (David) Lawson, Inuk Leader

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This last group represented Leg 7 participants from Canada’s Indigenous peoples, collectively, First Nations, Métis, and Inuit. In a later post, I will more fully explore some of the Reconciliation dialogue from Canada C3.

Taivitii (David) Lawson is an emerging Canadian Inuit leader originally from traditional lands near Pangnirtung and now living in Iqaluit. David was in the RCMP for 15 years and just prior to the Expedition, was about to embark on training to be a lawyer to “be an advocate for the Inuit people.” David has been an activist in a number of community issues, including suicide prevention through Embrace Life Council. Because David was a last minute replacement, there isn’t a bio on the C3 website. Joshua Stribbell is President, National Urban Inuit Youth Council and runs a program for Inuit youth in Toronto called Torontomiutaujugut. He grew up in Southern Ontario because his mother was adopted out in the Sixties Scoop. He has only recently started to re-connect with his Inuit heritage. A Youth Ambassador and member of the Matawa First Nation, born and raised in the urban setting of Thunder Bay, Tyler Waboose also aimed to re-connect with his ancestral heritage in the northern Canadian Arctic. Tyler is active in Roots to Harvest, engaging youth with agriculture and cultivating heathy communities.

Our onboard dialogues were both planned and an by chance encounter. We had an onboard, Hollywood level “Comms Team” of 6 people constantly shooting and producing amazing content to share with Canada and the world. As mentioned, the goal was to reach over 20 million Canadians, which I believe was handily achieved in channels as diverse as Facebook Live to traditional print journalism. As a result, even thought the participant base was limited, the majority of Canadian participated to greater or lesser degrees in the education and conversation about our future. I also committed to share in various ways, including writing a series of blog posts (like this one!).

One particularly important session was organized by very thoughtful participant Peter Poole. He had several scientists, youth, artists, indigenous people and other present their thoughts on what Climate Change meant to them both personally and professionally. Being involved in my own work to “reboot the narrative around climate change”, this particular session inspired and motivated me to carry on the conversations that Peter started. While there will be more on my initiative as it evolves, it was clear that this session got many to commit to being ongoing ambassadors and champions of the unique Climate Change perspectives from the north. Also, now in 2018, watch out for various more formalized Canada C3 Legacy Projects as they are unveiled during this year.

While I could go on endlessly about Canada C3 and the environment, hopefully this does give you a taste. Collectively, I can only give a small glimpse of how the Canada C3 expedition was a life-changing one for me and all participants. The learnings weren’t so much the hard science, but instead the storytelling and narrative challenges standing in the way of getting us all onboard.

To wrap up, just as Chef Paul Rogalski always reminded us that “The foundation of great food starts with the ingredients…’, so too does making the world better start with great people. I will leave the last word to none other than that master of words, Lorna Crozier. I love the picture she paints tying in so well, and viscerally, to the earlier words of scientists like Bianca Perren who has dedicated her life to Polar Climate Science. What action will you take in response.

5 Dec 2017

Canada – A Nation Built by (Extra) Ordinary People

In a previous post, I spoke about my involvement with Canada 150 and also the Canada C3 signature project. The latter is an epic journey divided into 15 “Legs”, on a former Canadian Coast Guard Ice Breaker vessel (the MV Polar Prince, ca 1958) refitted to sail from coast to coast to coast for 150 days, and provide an ideal platform for connections and conversations. As a participant, I can only say I was profoundly changed, inspired, enlightened and mobilized by my time.

At our 150th birthday in 2017, Canada is at a crossroads as it strives to outgrow its colonial past, to find its rôle and place in a new world order and to respond to the recent Truth and Reconciliation Commission Report on the mis-treatment of our Indigenous Peoples in Residential Schools.

Compared to the celebration of our history that was the focus of Canada’s Centennial in 1967, Canada C3 responded directly to such challenges and sought to contribute to a new sense of nation building in our country. The ambitious goal was to engage over 20 million Canadians and contribute to a Legacy for our nation as it looks forward to our bicentennial in 2067 and beyond.

Accordingly, the key themes for Canada C3 were crafted to help in this nation building:

Reconciliation with our Indigenous People, namely First Nations, Métis and Inuit.
Environment: and in particular the challenges of climate change as well as specific challenges facing our coastline and northern regions. A little known fact is that Canada has the longest coastline of any country in the world. Issues include species loss, micro plastics in our oceans, effects of higher sea levels and much more. See my post here: “Environmental Awakening Fusing of Science, The Arts and Sea Ice”
Diversity and Inclusion: Canada’s cultural mosaic includes people from all over the world which is a reflection of Canada’s admirable openness and welcoming nature. Although we have always been a country of newcomers. our society still has a way to go to be completely inclusive to: visible minorities, women, LGBT and those with disabilities.
Youth Engagement: As a baby boomer who was a teenager in 1967, I feel that my generation has proactively shaped the Canada we know today. Our generation has achieved much that is good but there are many areas to address. This is always a work in progress. Similarly, today’s youth must lead our quest for the Canada of 2067 and Canada C3 provided a great vehicle from them to learn,
share, contribute and ultimately act to help us build a future civil society that is just and open.

I was honoured and privileged to be a Participant on Leg 7 of Canada C3, from Iqaluit to Qikiqtarjuaq on the east coast of Baffin Island in our newest Territory. Note that I will write posts on most, if not all, of the above four themes through my eyes always amplified by and learning from the amazing people onboard and in the local communities. As I’ve learned, in any human endeavour, it is extraordinary people who shape Canada, and ignite me with a huge optimism about our future. The expedition organizers did an wonderful job in curating a massively diverse group of exceptional people, some of whom might too modestly consider themselves ordinary. In this post, and the following ones, I will try to share my thoughts as shaped by these extraordinary Canadians. I have also learned that, simply by convening conversations, powerful and transformative change can be unleassed.

To illustrate this, the ship had about 60 people onboard at any one time, as follows:

14 crew – from the amazing Captain Stephan Guy who also made the best bread I’ve had in a long time, and a group of hard working marine experts who worked hard 24/7 to ensure we progressed safely and on time,
20 staff – The staff was led by the world’s most innovative outdoor educator, Geoff Green, CM, expedition leader. The staff complement included onboard scientists conducting 25 experiments along the coast of Canada, Zodiac drivers and interpreters; bear guard[ians]; hospitality and cooking; onboard physician; and a Hollywood grade “comms” team of six (2 nationally leading photographers, a videographer, a drone operator and two prolific video and content editors who seemed to work around the clock), and
24 participants, for each of the 15 Legs or 360 for the entire expedition, selected in myriad ways, from invitation, partnership and application, including:
- journalists from across Canada
- a chef – each leg had one chef, part of Food Day Canada that celebrates food and food sustainability across Canada from coast to coast to coast
- a visual artist, one per leg, chosen by a Canada Council adjudicated jury
- a writer – ours was an Order of Canada poet who is a national treasure
- a musician
- educators – who could take the conversations back to our schools
- indigenous people – Leg 7 had 2 Inuit leaders and a youth ambassador from our First Nations
- youth ambassadors – we had 3 young people, already showing tremendous leadership and passion. I believe that, at their young age, this journey will be most transformational for them,
- partners, including from Canada Council, Apathy is Boring, etc
- business people,
- and many, many more.

Through my posts, pictures, and videos, you will meet some of the above people, but my focus for this post will be in the communities we visited on our journey. Since it was impossible for each and every Canadian to participate, I hope these posts can help people share and savour even a small portion of what I experienced.

While the backdrop of our journey, the east coast of Baffin Island, represents some of the most spectacular scenery on our planet, it only provided the context for our discussions and learning. Make no mistake, for those who are connoisseurs of art from the Arctic, the sense of lighting and colours seems alien to our more southern eyes, yet addictively beautiful. Compare the colours and textures of the iconic Inuit Artist Jessie Ooonark, Group of Seven member Lawren Harris, and a Brit bewitched by the north Ted Harrison to the real thing:

In posts that will follow, I will focus more on the people onboardCanada C3. For this post, I thought I’d talk about people encounters in the two main communities we visited, first Iqaluit, and our terminus in Qikiqtarjuaq.

Our first activity as a group was lunch and a hike in Sylvia Grinnel Territorial Park, which introduced us to the unique foliage north of the tree line. The park also contains archaeological sites of the ancient Dorset and Thule peoples. While there, we met a very engaging young Inuk named Jenna, shown here hamming it up for the camera. She was with her family fishing near Sylvia Grinnel Falls.

I was chatting with fellow participant, Lorna Crozier, when Jenna approached us and offered to sing a song

I soon learned that this friendly engagement, even with strangers, is a common part of Inuit culture. When, expecting to learn about some local singer celebrity, I asked her what her favourite singer was, perhaps I shouldn’t have been surprised that she answered “Katie Perry”.

Later our group toured the Nunatta Sunakkutaangit Museum, in the former Hudson’s Bay Company store, travelling there by our trusty yellow school bus.

There I saw a man whole seemed interested in our group, so I stopped and chatted with him. The video below explains why the talented artist was in Iqaluit. Jenna, riding her bike, was in the background of this interview, but got removed in editing. Charlie “C5” Johnston was definitely worth interviewing and, was it synchronicity for a person who brands himself “C5” to meet and interact with the “C3” group?

Later in Iqaluit, we got to meet many local people, including the scientists at Nunavut Research Institute, local artists, and kayak building at the local high school.

Days later, at the end of Leg 7 in Qikiqtarjuaq, most of our group climbed the hill overlooking the hamlet and the Canada C3 vessel, and we had a number of amazing encounters.

Initially I was surprised that the girl, shown above with her sister, had such a pro camera. Later, I learned that a journal and fellow participant Caroline G Murphy, had sportingly lent her camera. For more background on this budding young photographer, read Caroline’s article in Le Journal de Montréal J’ai Prêté ma Caméra a une Jeune Inuite de 9 Ans …

And, for those unable to read in French, our discussions on Diversity and Inclusion did encompass the original “Two Solitudes” in Canada, namely French and English. While Google can do a great job translating the article, the photos with the eye of a precocious 9 year old totally transcend traditional cultural divides.

Our final community encounter during Leg 7 was at a ceremony in Qikiqtarjuaq where we gave hockey sticks to the local children, who seem to have a passion for hockey that transcends even southern Canada’s hockey crazy intensity. Leading the presentation was Jim Kyte, fellow participant and the first legally deaf NHL hockey player. Jim is an inspirational leader I was happy to get to know who has overcome challenges that most would shy away from. Today he serves as Dean of the School of Hospitality and Tourism at Algonquin College in Ottawa.

Jim was joined by last minute participant, David Lawson, an Inuk leader who just resigned after 15 years serving his community in the RCMP. I am sure we will hear much more from David who just started a law degree in order to better advocate for his people. For example, he is Board President of Embrace Life Council, an Iqaluit-based suicide prevention organization. In a separate post, I will write more about my journey of learning about the Inuit people and their journey to become a vital part of the fabric of our Canadian nation.

Canada C3 made for some wonderful encounters and conversations. I can only wish that every Canadian was able to share my experiences with the wonderful diversity that is Canada. Even I took a long time to process this life changing experience. In the end, I had my understanding of my own country transformed both by the special world that is Canada’s Arctic regions, but even more so by people who now have a life long bond that will lead to action. These conversations were far from superficial and already, many of us are taking action. As we enter 2018, you will start to learn more about the Canada C3 Legacy Programs which will keep the torch of this remarkable nation building alive and further spreading that light in the form of action and education.

29 Jun 2017

Canada at 150 – What is Your Gift to Canada and the World?

As we approach Canada Day of our 150th year of Confederation, I am compelled to share my personal reflections on where our country is headed, how the lessons of history (positive or negative) are shaping our future journey and the contribution we, as Canadians, can make to our world. Beyond celebration, our nation urgently needs our care and attention. As a result, I am sharing my own journey in the form of a call to action.

Over four years ago, I received a call join a group helping to build programs to shape our Canadian sense as a “Smart and Caring Nation”, inspired by His Excellency Governor General David Johnston. My love of our country has been inexorably shaped and enhanced through extended periods of living and working abroad. The opportunity to serve Canada and to collaborate with an unbelievably talented group of leaders, made it a no-brainer for me to accept this call. Since then, in many varied groupings, conversations about Canada and nation-building were convened at Banff Centre for Arts and Creativity, the Deloitte Greenhouse, Wasan Island and more. Although not apparent from the core group shown below, a diverse and impactful group of individual leaders, first nations, national and local institutions, and many change makers from the charitable and NGO sector coalesced to help shape and expand this initiative. I am eternally thankful for the leadership of David Johnston and Community Foundations of Canada, for their leadership in starting these conversations. My investment of time and money has been returned many times over in my own knowledge and engagement.

Those early conversations helped to architect and propel grassroots activities around Canada 150 at a time when our federal government hadn’t yet climbed onboard the “150 bandwagon”. Although our path was initially unclear, and the group moving in several directions, eventually it became clear that the combination of passionate people inspired by a visionary challenge to create a “Smart and Caring Nation” unleashed many amazing initiatives. Some of the key Canada 150 themes started to emerge:

Youth Engagement – Millennials (and now, Generation Z) are the best educated generation of Canadians who are passionate and “issues”-driven, yet often fail to engage with the formal political process. Canada 150 is a great way to harness that energy and enthusiasm to shape our governance for the next generation.
Reconciliation with our Indigenous People – Canada has a sad record in our treatment of Indigenous People whose territory European settlers colonized and, without whom, our modern country would not have been built. The December 2015 Truth and Reconciliation Commission Report chaired by Chief Justice Murray Sinclair, painted a shocking portrait of the misguided and brutal “Indian Residential School System” previously almost unknown to most Canadians, even many in the First Nations community. Although Canada’s 150th birthday strikes a dissonant chord for many Indigenous people, it remains a unique opportunity to learn from past mistakes and to start building a better future together. In spite of the challenges raised by celebrating years of neglect and mis-treatment, I can only hope that we can find a way forward to a brighter future for all (Indigenous and non-indigenous) people in Canada.
Diversity and Inclusion has become of paramount importance in our increasingly diverse country. Ensuring that everyone “belongs” and can contribute to our common future, is a key priority. Furthermore, we must arrest our growing Inequality before it unleashes the destructive and divisive social forces we see in other countries.
Environmental Challenges – for many, particularly the youth, Climate Change and other environmental challenges caused by the impact of humanity on a finite planet, have gone from theoretical to becoming an “existential” crisis threatening our future wellbeing. I continue to work with others to explore ways to address what seems to be an intractable problem, not just at a government policy level but even more importantly at the grassroots level to engage ordinary Canadians.

Once these high level priorities were identified, many participants contributed to shaping thinking, leading to great initiatives such as the Alliance 150 to increase collaboration and partnership among organizations. And, as Federal and Provincial governments got onboard, these earlier efforts were foundational, setting the agenda for much of the current governmental and NGO work for Canada’s 150th. As we closed in on 2017, I channelled my focus to advising a number of national Canada 150 Signature Initiatives, such as Canada C3 and Canada 150 in our local communities, that directly descends from those early conversations.

As an Ambassador for the Canada C3 expedition, I am excited to see this project’s ambitions surpassed on all its major themes of Reconciliation, Youth Engagement, Inclusion & Diversity and Environmental Stewardship. Watch this nation building exercise grow during the Expedition as it reaches the majority of Canadians. I will use my time on Leg 7 of Canada C3, later this summer, to learn, engage and reflect collaboratively regarding our major Canadian challenges and opportunities.

What started with a request for me to make a gift of time and money, ended up as truly a life-changing gift back to me, and all those involved.

My biggest take away from this process, is that it is important for Canadians, individually and collectively, to work on nation building. Unsurprisingly, David Johnston said it best in a letter “What Will Your Gift Be?”, from his recent book The Idea of Canada – Letters to a Nation. Note that the proceeds from this wise work are directed to building the Rideau Hall Foundation which is another legacy of our current Governor General. In that letter:

“Each Canadian has the power within him or her to give something special to our country and help build that country we dream of. Big or small, complex or simple — it doesn’t matter what Canadians give. The gift each Canadian chooses is as unique as the person who shares that fit. .. young people in our country have a special responsibility to lead our country’s celebration of the 150th anniversary of Confederation.”

People around the world look to Canada as a bastion of democracy, decency and safety, buttressed by our reputation for being obsessively obsequious and our pioneering of international peacekeeping. As times change, our national role and aspirations also need to change. Just as we are no longer the extension to Victorian Great Britain of a 100 years ago, our post World War II Cold War era identity also needs to be re-imagined. What will Canada look like for our bicentennial in 2067? 2017 represents a unique and timely opportunity for us to all participate in shaping our common future.

Canada seems to be such a safe and peaceful country. Yet, present and historical events show that the veneer of civil society that we all hold dear and take for granted, can be fragile indeed. I am still struck by a story told by that master story teller, David Johnston. He reflected on The Ukrainian Pioneer, a 6 panel masterpiece by Canadian artist William Kurelek. Reflecting a life journey familiar to so many Canadians, the work chronicles a Ukrainian villager fleeing Josef Stalin’s genocidal famine of 1932-1933 (Holomodor) [See No. 1] who comes to forge a new life amid the relative tranquility and plenty of the Canadian prairies. However, barely visible in the background of the last idyllic panel The Ukrainian Pioneer, No. 6 (1976) is a mushroom cloud. Kurelek wanted to remind us that the veneer of civil society is thin and needs constant care and protection.

In 2017, many forces threaten the comfortable status quo that we expect from Canadian society. Those who are privileged to lead, indeed everyone, must take these forces seriously. Mass alienation and discontent with our current civil order represents a real cry for change. However, many times those grasping for change latch onto leaders whose seductive rhetoric proves ultimately destructive of the enviable civil society we have built over 150 years here in Canada.

A country is, indeed, the product of the collective hopes, dreams and ideals of its citizens. As John F Kennedy famously said,

“Ask not what your country can do for you. Ask what you can do for your country.

Yet, sometimes our daily news feeds chronicle the disturbing forces that appear to denigrate all that Canadians hold dear, such as:

a new move to put “drawbridges up”, instead of embracing the global world order,
a pervasive failure to question “fake news”, “alternate facts” and dismissal of reasoned analysis rather than encouragement of intelligent debate and problem solving, and
a shift in political discourse from a “narrative of hope”, to one that lacks civility, grace or higher purpose.

The more I travel and engage with global thought leaders, I learn that Canada is becoming the last bastion of a better way in the world. As a result, I believe those key Canada 150 themes of Reconciliation; Inclusion; Youth Engagement and Environmental Stewardship have escalated in importance from nice to have to social imperatives.

For individual Canadians, using 2017 as a springboard towards a “Smart and Caring” Nation in 2067, there are innumerable ways to make a difference with some combination of the trinity of “wealth“, “wisdom” and “work” focused on civic, social and cultural needs:

Volunteering to give back through a cause is vitally important to you, whether in your neighbourhood, nationally or internationally. A great example is the CANADA150FOR150 Volunteer Challenge
Donating to a cause that will help move the needle. Consider your local community first and your local Community Foundation may be a great place to start for new ideas and approaches, or
If you identify an unmet need in our society, consider starting a new Social Enterprise

Besides being amongst the most fulfilling work you will do in your life, your civic engagement will continue to help shape and grow the wonderful social and cultural fabric of this wonderful country we call Canada.

I have been inspired to continually re-think my gift to Canada, and now see it more of a journey than a destination. Stay tuned …

What is your gift to Canada? Are you prepared to do your part?

10 Sep 2015

Middlebrook Prize on the Move

The Middlebrook Prize for Young Canadian Curators has named Adam Barbu as its third winner and is moving up to a whole new level. Founded in 2012 by John Kissick and me, with initial investments from Middlebrook Social Innovation Fund, to support and mobilize Canadian creative talent, the Prize aims to inspire positive social change through creativity and connectedness in a time of unprecedented economic, environmental, social, and cultural challenges.

In our 3rd year, some exciting changes are afoot as we see our vision for the Prize unfold.

First of all, the Prize has a new home in our partner gallery, the recently re-branded Art Gallery of Guelph. Led by Dawn Owen, the gallery provides a compelling new venue to host the Prize exhibition and to mentor the winner.

Secondly, the Prize now has a physical form and a visual identity as befits an increasingly important Canadian cultural icon. Designed by the immensely talented and award winning creative director, Chris Duchaine, our new visual identity reflects the knowledge integration inherent in modern curating interpreted with the most modern design principles. Paying homage to the “White Cube” abstraction of the idealized art gallery, it also references the forces that are breaking down that cube and moving curation firmly into the future, perhaps embracing new ideas like the Ultra Contemporary Art Movement.

Hear Chris discuss his design:

To accompany the design, Chris selected the recently designed LL Circular font by Laurenz Brunner from Lineto in Switzerland. The font manages to be “geometric without being cold” and timeless while modern.

And, finally, the Prize now has a permanent online home with a website at MiddlebrookPrize.ca to properly highlight the accomplishments of this growing group of young opinion leaders in the arts world. To acknowledge that growing influence, the winners comprise an expert centre, using the cloud-based service ExpertFile to highlight the developing oeuvre of our cadre of winners. To further encourage the growth of this network of leaders, Katherine Dennis, the 2013 Middlebrook Prize winner, was a member of the selection jury for the 2015 Prize. We extend a special thanks to Kendra Martin for managing the design and implementation of our web presence.

In keeping with 6 words in the Prize name, (hence the “cube” in the visual design), we’ve chosen a playfully “cubic” hashtag of #MPfYCC. Stay tuned for more exciting developments, but do check out Adam’s exhibition opening on September 17th and the Middlebrook Prize Award Day on October 24th.

14 Jan 2014

The Group of Seven – Nation Building for the 21st Century

Last year, I signed up for a wonderfully ambitious initiative spearheaded by our Governor General, His Excellency David Johnston. I was invited to join a Group of Seven who will serve as catalysts to rolling out David Johnson’s vision of a Smart and Caring Nation built by a set of Smart and Caring Communities, ultimately aimed to be a major national initiative to commemorate Canada’s 150th birthday, or sesquicentennial, in 2017.

I was very much honoured to be asked and, although it is a dauntingly large not to mention a somewhat unspecified, goal, as a proud Canadian who knows first hand David Johnston’s unique ability to lead and motivate, I quickly agreed to this call. I’ll share more about this initiative in order to seek your input. Since no small group can be representative of our huge and diverse nation, it is important the we engage in much dialogue from Canadians of all ages and demographic profile, in order to achieve maximum impact and relevance.

As a way to start that conversation, I’d like to share some of my perspectives on Smart and Caring 2017.

David Johnston’s Smart and Caring Vision:

This whole project starts with a great foundation in our Governor General’s Smart and Caring vision for Canada. And here is why his singular leadership is so critical to this initiative.

David Johnston has a long track record of motivation. Back in 2006, as President of Unviersity of Waterloo, he challenged the already ambitious and successful business, community and government leaders in Waterloo Region to reach even higher. Issued in November 2006, his Ten Goals to Make Waterloo Region Canada’s Knowledge Capital are a blueprint that inspired and motivated real change and continue to have an impact today.

Similarly, on 1 October 2010 at his installation speech as Governor General in the Senate Chambers in Ottawa, David Johnston laid out his vision for nation building in Canada, challenging us to build a Smart and Caring Nation:

“We are a Smart and Caring Nation.
A nation where all Canadians can grow their talents to the maximum.
A nation where all Canadians can succeed and contribute.
But there is much work to be done to fully achieve our vision of a Smart and Caring Nation. I believe it is essentialTo support families and children,
To reinforce learning and innovation, and
To encourage philanthropy and volunteerism.”

To build on that vision as we near the sesquicentennial of Canada as a country in 2017, His Excellency has challenged Community Foundations of Canada and the growing network of 191 grass roots Community Foundations across our country. He wants them to lead a groundswell movement, in each and every community and nationally, for Smart and Caring 2017.

Canada – A History of Evolutionary Nation Building:

With that vision as inspiration, and as a passionately proud Canadian, here is my perspective on Canada as a nation. We were not formed by revolution, as is the case in many other countries like the USA or France. True to our character, our particular style of nation-hood opted instead for evolution at a slow almost glacial pace. You might almost say that Canada pioneered nation building by committee. Specifically, a series of meetings commencing with the Charlottetown Conference, 150 years ago in 1864, led to Confederation on 1 July 1867.

I would argue that, as a nation, we were more defined by what we were not — ie. no tea parties or revolutions to overthrow a king. Instead, via peaceful change we enjoyed a tabula rasa upon which to architect a unique nation in those lands north of the growing United States of America. The process was slow. We remained essentially a colony with large parts of the country feeling more British than Canadian for many years. Consider how long it took us to have a non-British Governor General (Vincent Massey, 1952), our own flag (1965, replacing the Union Jack) or our own constitution (repatriated from Westminster in 1982).

Until the late 20th century, innumerable British colonial vestiges remained. Many people argue that Canadian heroism and sacrifices for the motherland in World War I, just 100 years ago, started the modern trend of a strengthening Canadian identity both internally and as a nation on the global stage.

Shortly after WWI, an influential group of painters, the original Group of Seven artists, created a truly Canadian vision of our country through direct contact with nature and our awe-inspiring landscape. Their work was notably distinct from the prevailing British styles of Turner, Constable and later British or European artistic styles.

Canada’s Centennial in 1967 marked a major inflection point for Canada. We had come through two world wars with a strong sense of national identity, supported by the burgeoning post war economy. Canada proudly led on the world stage with the likes UN Peacekeeping, Expo ’67 in Montréal and the uber cool federalist Prime Minister Pierre Elliot Trudeau.

Set right in the middle of the swinging 1960’s, our centennial celebrations in 1967 were a wonderful time to be alive. Besides Expo ’67 and the quaint historical “centennial” costumes people wore, today we are left with innumerable Centennial arenas, parkways, libraries, etc. These major investments in infrastructure are present with us today. I recall that time with pride and fondness.

CFC Smart and Caring Project:

Because the 21st Century seems so different than the previous, what kind of movement should honour Canada’s 150th birthday. It is a complex question, but I believe that if we can mobilize almost all communities across Canada into activities and projects inspired by the “Smart and Caring” mantra, like a national pot luck dinner we would effectively crowdsource some of national, and even, international significance.

Once again, we have a unique opportunity to make positive changes while setting a positive example for the world.

It is important to understand that, because each and every community is unique, communities must have the freedom to launch initiatives that directly suits their unique needs. Nonetheless, with diverse initiatives considered collectively, I believe that, taken as a whole we can shape and inspire the Canada of the future. We have so many advantages and the time is right to embark of nation building for the 21st century.

I would further hope that we would see collective action and partnership, both at the community level and national level, to increase the impact and effectiveness of the Smart and Caring 2017 initiatives. We must speak to and be meaningful to all Canadians:

young and old
recent immigrants or multi-generational Canadians
from east to west to the most northern reaches
Aboriginal, English, French or any other heritage

Because no group, no matter how large, can be sufficiently inclusive, that is why it is absolutely imperative that we, who have been honoured to help make this happen, hear from as many Canadians as possible.

Please weigh in here with comments or find other ways to get involved. And, I hope to provide more updates and opportunities to engage, participate, shape and drive Canada’s 150th birthday celebrations – Smart and Caring 2017.

Please start by sharing your thoughts on what Smart and Caring 2017 means to you.

3 Apr 2012

Social Innovation – Can Social Sector Learn from Tech Startups?

It is notable that much of the recent trend towards Social Innovation has come from people who began their careers in technology startups, in Silicon Valley or other technology clusters. Some notable examples include:

Bill Gates, partly at the instigation of Warren Buffet who added his personal fortune to that of Gates, left Microsoft, the company he built, to dedicate his life to innovative solutions to large world issues such as global health and world literacy through the Bill and Melinda Gates Foundation

Started by Paul Brainerd, Seattle-based Social Venture Partners International is innovating at the intersection of technology and venture capital, with Venture Philanthropy. Paul sold Aldus Corporation (an innovator in desktop publishing applications, including Pagemaker) to Adobe in the mid 1990s. In his mid-40’s at the time of the Adobe acquisition, he was young enough to seek a significant and active social purpose in his life.

Jeffrey Skoll, a Canadian-born billionaire living in Los Angeles and an early employee of eBay, has numerous activities aimed at Social Innovation including Skoll Foundation, Skoll World Forum on Social Entrepreneurship and Skoll Award for Social Entrepreneurship. Most of his initiatives are aimed at empowering the individual Social Entrepreneurs who are fuelling a new generation of Social Innovation.

Waterloo’s own Mike Lazaridis aims to transform our understanding of the universe itself by investing hundreds of millions of dollars into Perimeter Institute for Theoretical Physicsn and Institute for Quantum Computing, effectively innovating a new mechanism of education and discovery. Notable is that this area of investment is one that may well take years, possibly decades, to show what breakthroughs, if any, are discovered.

Whether or not always attributtable to this connection with technology entrepreneurs, increasingly Social Sector organizations are starting to become much more like the entrepreneurial startups so familiar in the world of high technology. I’ve personally witnessed some of this change, and would like to suggest, that while there remain big differences, the parallels are strengthening over time. The following concepts represent just a small sampling of the key areas of similarity:

1. Founders Versus Artists

Stories are legion of smart, brash (and even mercurial) technology company founders who transform a business sector through the sheer strength of their wills. Many of these founders are “control freaks” and might find employment in conventional jobs a difficult proposition. Venture capital and angel investors have learned to be wary of such founders, citing numerous examples of founderitis – in which uncoachable founders, in a case of “my way or the highway” would rather maintain control than bend to ideas from often more experienced mentors, board members and investors.

Such personalities also exist in the Social Sector. For example, many arts organizations are founded by bright and innovative artistic directors. And yet, many of these same organizations come unravelled by the same mercurial nature that prevents the organization from being properly governed and accountable to funders (investors). With my background on both sides of this divide, the parallels are hauntingly striking.

Since such founders strengths can also be their undoing (or that of their organization), a conscious Board level assessment of such situations is always wise.

2. Running on Empty

Notwithstanding the media coverage of a few lucky technology startups such as Facebook or Google, most technology startups run of little or no significant funding. Many seek to change the world with very small amounts of capital, sometimes no more than several million dollars. The recent trend towards building such small capitalization organizations is called the Lean Startup movement. The challenges inherent in their undercapitalization is often the top complaint of such startups. However, Sergy Brin, the Google co-founder has insightfully observed that “constraints breed creativity” to describe how an underfunded state has led to the discovery of innovative ways to build companies and deliver their products.

Likewise, from my experience the vast majority of charities and nonprofits complain about being undercapitalized, and the reality is that most are. It is a fact of life in the social sector. Only now are we starting to see the emergence of social ventures, which by stealing a page from underfunded technology startups are exploring new business models and ways to deliver social change, often leveraging IT or a different process to vastly reduce costs of program delivery.

3. Technology Changes Everything

We’ve seen the emergence of a world where all information is stored in digital form and people are connected, even while mobile, the role of the web and technology can’t be underestimated. Technology-based startups, because they are small and start from scratch, often approach traditional problems in very non-traditional ways. Revenue and funding models change, as do fundamental ways to organize a business or social enterprise. Social media allows ideas to spread in a viral fashion. We have already seen how organizations like Avaaz can mobilize hundreds of thousands or even millions of supporters globally for both local and international issues of social injustices and poverty. This is a direct analogue to how many people now rely on Twitter or Facebook, rather than a printed newspaper, for much of their news and information.

4. Mission Creep – or the path forward

Technology startups have come to learn that success depends on laser sharp focus, attention to detail and execution of a “pure play” strategy (ie. only do one thing well). Thatparticular discipline has time and time again proven to be effective in a sector where technology change is moving rapidly and most startups are generally considered to be underfunded.

Likewise, Social Enterprises must adopt similar approaches to deal with underfunding and change. Even in today’s more fluid and fast-changing environment, to avoid deadly Mission Creep, Board and management must have developed a complete Theory of Change roadmap to enable Manage to Outcomes.

1 Jan 2010

Technology Visionaries in the 1990’s: A 21st Century Retrospective

“It is sobering to reflect on the extent to which the structure of our business processes has been dictated by the limitations of the file folder.”

-Michael Hammer and James Champy, Reengineering Your Business

Recently, I unearthed a 10 year old book by Bill Gates, Business @ the Speed of Thought and took a bit of time to re-scan that 1999 book. On the first day of 2010, it seems appropriate to study technology trends to help give perspective to the future of the digital revolution.

Far from being an overtly partisan paen to Microsoft, the passion and enthusiam for change reflective both Bill Gates personality and the thinking of that era, shine through.

What is being presented is a prescription for a world, focused primarily on business, where mass adoption of networked computing unleashes a digital, knowledge-based revolution.

In the 1990’s, Information Technology (“IT”) was considered a “necessary evil” in business, being viewed largely as a cost centre, and consigned to report to the CFO with a major focus on cost control. Although we’ve made some progress in the last decade, there is still a huge need to educate all business people on how essential IT is to creating competitive advantage, mitigating risk and enabling new products and services. In essence, IT and the modern business, are inseparably intertwined. He suggests the notion of a “Digital Nervous System” as shorthand for a set of best practices for business to use. Although this short hand hasn’t really caught on, the ideas behind it remain.

And yet, it is easy to dismiss much of this early prosletyzing as impractical dreaming, a fact that the “dot com meltdown” probably exacerbated. So, how much of the 1990’s vision makes sense today?

Somewhat surprisingly, the answer is most of it. While some trends were completely unticipated by Bill Gates, and most of his peers in the 1990’s:

cloud computing, driven by virtualization, in which vast arrays of commodity computing power is outsourced and interconnected with high bandwidth network connectivity wasn’t considered at all. The 1990’s ethos was company controlled, in house, server farms.
social networking and social media weren’t even thought of. Driven by recent research into how ideas can spread and and recent breakthroughs in the science of social networks, coupled with cheap, pervasive and always connected computing, this is a real paradigm shift from the 1990’s world view.
outsourcing and offshoring, in which large companies access “clouds” of talent and hence are looser federations of people, is perhaps only foreshadowed. The power of individual contractors and smaller businesses has been signficantly enhanced, thus levelling the playing field in our modern digital economy.

many of the predictions and recommendations remain true or have gone from vision to reality:

Web 2.0 can be viewed as many pre-bubble Web 1.0 concepts finally coming to reality in the fullness of time. Whereas there used to be much talk about “bricks” versus “clicks”, the modern company is fully integrated with the Web as a part of the distribution strategy. Companies that were simply a “web veneer”, like Webvan or Pets.com are gone and long forgotten.
The Paperless Office, long envisaged as part of the digital revolution, is finally starting to arrive. While some days I personally seem to be unable to keep the paper monster under control, many companies have made great strides. For example, Gore Mutual Insurance Company where I recently joined the Board, has completed a transformation to paperless insurance making Canada’s oldest insurance company one of the first in North America to go paperless.
Disintermediation, or the death of the middleman, has accelerated recently. It could be argued that only highly differentiated specialist travel agents survive and the plight of the newspapers (when compared to the wildly successful wire services) are two great examples of this prediction coming true.
Knowledge Based Management Style has been driven to a much more open and collaborative one, largely by the force of the digital revolution. Although exceptions exist, every company needs to encourage the “bad news” to flow up to the top. The days of the hubristic CEO who stifles the “inconvenient truth” or fires the naysayer are surely numbered. When almost every business starts to look like a knowledge business, and information is power, cultural or procedural barriers to real time information flow become a serious competitive disadvantage.
Social Enterprise is being transformed by the digital revolution, and it would appear that BIll Gates was ahead of the curve in seeing this important trend. While much of government, healthcare and education remain in the 20th Century paradigm, IT has driven a remarkable change, such that the boundaries between for profit, not for profit and government enterprises has blurred signficantly. This transformation is an area of personal interest and enthusiam.
Customer Centred Business is both enabled by, and made essential, in the digital age. The importance of using technology to understand, serve and delight customers remains a key strategic advantage for businesses. Of course, there remain issues and concerns. Specifically, greater customer profiling, can lead to privacy concerns and we still are seeking the right balance. Furthermore, some first generation customers like call centres, have left businesses with their only interpersonal touchpoints being unpleasant. Anyone who has dealt with a Rogers call centre will immediately respond to an environment where siloed IT systems and nonempowered call centre employees create customer alienation. Competition and continuous technological improvement should resolve this over time.

In summary, much of the 1990’s technological vision was spot on. Obviously, it has taken far longer to bring into practice than people then suggested. However, compared to other societal changes, the march of digital technologies has been ligthening fast.

Although it is less fashionable to be a technology visionary today, I believe we still need to look ahead to our future. There remain many unsolved issues IT and, even more important, there are countless opportunities that future digital technologies will be able to deliver. Business leaders, governments and concerned citizens all need to understand and contribute to shaping a future world that will be both efficient, yet retain a good quality of life for us all. A long term perspective remains important because business investments and decisions have a surprisingly long lifespan.

Thus, the promise of the digital revolution continues, and it will be improved by thinkers who can help us to shape our desired future.

5 May 2009

A “Rare” Tasting Menu by R Murray Shafer

“Dawn itself is the most neglected masterpiece of the modern world.” – R Murray Shafer

For those who don’t already know him, R Murray Shafer is the legendary superstar of the Canadian Musical avant garde – a great thinker, teacher, composer and all round renaissance man.

Having been a fan for over 30 years but with little local exposure, it was great to see his Harbingers of Spring: a rare soundwalk presented last week in Waterloo Region. I’ve had the great fortune to have experienced many of his masterworks, especially those from his ambitious, 12 part Patria series, including The Princess of the Stars, Ra and The Enchanted Forest. Each concert is a one of a kind, tour de force combining music, theatre, philosophy many times based on classic mythologies and almost always set in the natural environment.

The soundwalk event was really a set of mini-concerts stitched together during a 3 hour walk through the breathtaking, almost 1000 acre rare property at the confluence of the Speed and the Grand Rivers in Cambridge. First and foremost, a brilliant thought leader and writer, Shafer opened with some great concepts:

Sounds and music, never originated in the sterile, acoustically engineered, concert hall. Their natural habitat is outdoors.
Most early cultures could hear both nearby sounds, such as birds or the trees, but also far off sounds, (maybe even 20-30 km) by “putting their ear to the ground”.
Being acutely atuned to ambient sounds wasn’t just an aesthetic sense, it was also essential to survival.
It is possible to hear even the sound of “trees growing in the woods”. This isn’t just the lovely sound of wind in leaves, but also the sound of sap rushing through the trees. Each species of tree has its own distinctive sound (music?) both in growing and in the way it interacts with the wind.
Sadly, our modern, urban population has lost its ability to hear more than the most immediate sounds – the white noise of traffic, car horns and the ubiquitous music such as in Starbucks drown out any ability to hear anything further afield. Along with this, perhaps we have lost our ability to “hear” the very ecosystem we inhabit.

Finally, Shafer concludes with his vision that re-connecting people with their audible environment might well be essential to the very survival of our environmentally challenged planet.

Including premieres and works inspired by Shafer’s engaging, nay idiosyncratic, style, some of the pieces included:

Radio Rare Woods (world premier) by Ellen and Michael Waterman, including first a live performance of the Nocturne for Solo Flute from Shafer’s Wolf Music, composed in 1996, followed by echoes played over several dozen radio receivers strategically arrayed thoughout the wood walk. Certainly, a juxtaposition of the urban and natural environments.
From the Bow a poem by Rae Crossman, set to clarinet music written by Murray Shafer.
Excerpts from The Enchanted Forest and Aubade for Solo Voice by Murray Shafer is a wonderful example of the music coming to life in the setting of a forest. The music elicits a live response from birds and other wildlife in a way that is more alive than anything seen in any concert hall. It was truly awe inspiring.
Transportation Transoformation in Shades of Rust (world premier) by Annette Urbschat and Todd Harrop presented an improvisation using a quintessential 20th century intruder, in the shape of a wrecked car, which acts both as set and source of musical instruments.
The Acoustic Locator (world premier) by Nina Leo was a large ear horn that could swivel through an entire 360 degree rotation enabling each audience member to connect with the audible landscape in a very intimate way indeed.

In closing, kudos to the organizers for their sense of promoting the power of partnership in the arts. Just like in for profit businesses, this kind of pairing can build a powerful gestalt where the sum is greater thant the parts.

The Soundwalk was presented as part of the Open Ears Festival of Music and Sound, which is an electic mix spanning avant garde to classical and electroacoustics to sound installations. The festival is a “spin-out” of the KW Symphony Orchestra under Artistic Director Peter Hatch and produced jointly with NUMUS. What was exciting was that this event was produced with a charitable natural reserve decicated to research. Like R Murray Shafer, the event was a fusion of togetherness of the arts and environment in Waterloo Region. This is exactly the kind of “big tent” strength through partnership envisaged by the September 2008 Prosperity Council of Waterloo Region: Task Force on Creative Enterprise.

15 Mar 2009

Who Killed Canadian Venture Capital? A Peculiarly Canadian Implosion

“Fortes fortuna adiuvat” – “Fortune favours the bold” – Latin proverb

The current economic meltdown has unleashed brutal forces acting on all aspects of the business world, but certainly innovative startups in fields like software, web, wireless, green technologies and life sciences are at grave risk. In Canada, our startups have generally been world class innovators, but severely underfunded when benchmarked against US and leading European countries.

Not only has the credit crunch forced most Angel Investors to the sidelines, but the supply of Venture Capital (VC) in Canada has contracted almost to the vanishing point.

Tomorrow’s Canadian Business documents this very well in VC Financing: Cold Realities.

Having started my first software company in the mid-1980’s, I am well aware that although VC money was available and well established in the Silicon Valley, VC money for knowledge-based startups such as mine was then nonexistent in Canada. Through the 1990’s, however, Canada started to build a cadre of new funds that showed early promise of replicating a US style VC funding ecosystem

In the early millennium when Verdexus investigated raising a institutional fund to fill a gap in the Canadian market with our “hands on” model and accessing global capital sources. It gave our partners a chance to look to VC best practices on a global basis and figure out how to apply to the Canadian context. While we didn’t proceed at that time, I’ve had the good fortune to work on projects with top VCs from the US and several European countries, giving me a global perspective on how Canadian Venture Capital measures up.

Sadly, I believe that the 2000/2001 tech bubble, or dot com meltdown, stopped the maturation of our VC industry in its tracks, a body blow from which the industry has never recovered. It is to this time that the root causes of our current VC meltdown can be traced. A few of the main reasons holding the VC industry back can be summarized as follows:

Impact of the Labour Sponsored Investment Fund model on our VC ecosystem.
Lack of balance between financial and operational skills: The Banker Effect.
Lack of International Funding discipline in our VC industry.

I will explore each of these causes in turn.

1. Labour Sponsored Investment Funds

Labour Sponsored Investment Funds (LSIFs, also known as Retail Venture Capital Funds), have been a particular sore spot, as a 2005 Globe and Mail Report on Business article “Labour-sponsored Love Lost” points out. Considered good public policy when launched in the late 1980’s, both Federal and Provincial governments gave individual (retail) investors a significant tax incentive (up to 35%) to invest up to $5 000 with a minimum 8 year hold period. In essence, many funds totalling hundreds of millions of dollars were raised by firms like VenGrowth, Covington and Growthworks as were numerous very small funds.

Lacking the inherent financial discipline imposed by typical venture capital structures, in which several “funds of funds” (legally dsignated as Limited Partners, or LPs) invest in a fund managed by a General Partner (or GP). The LPs in this sense have much leverage, not just in choosing their GPs, but also in ongoing oversight, not to mention the choice to re-invest in the next fund raised by the GPs. This LP/GP structure is the model employed world wide and has generally stood the test of time.

The thousands and thousands of retail investors in a typical LSIF exert no such control and hence we’ve seen Management Expense Ratios (MERs) as high as 4-6% versus the 2% private equity industry norm and Carried Interest (the portion of the investment gains shared by the fund) as high as 30% versus the 20% norm.

More importantly, although at its peak, more than half of Canadian VC money was in LSIF funds, returns were, as Doug Steiner says, “lousy.” How lousy? Studies show that average fund returns, also called Internal Rate of Return (IRR), are negative. The best fund appears to have produced a measly 1% IRR. In the US, funds aim for 30% and there is a long term track record of many funds in the 18-20% range.

Undoubtedly, individual investors didn’t have a lot at stake with those huge tax credits and it can be argued that LSIFs encouraged loads of job creation in the all important knowledge economy. All of that is true. My main concern is that the attraction of the LSIF model impaired the formation of a more mature VC ecosystem based on the normal LP/GP model mentioned above.

2. The Banker Effect

In the US, both in California’s Silicon Valley and in the Route 128 area around Boston, the VC industry has always been populated by a healthy mix of the financially oriented fund managers coupled with serial entrepreneurs who have founded and build technology startups. The composition of the partners at Canadian VC funds has always been different than this international norm, having many more banker types than operators. The experiences Jonathan Geist relates in the Canadian Business article are symptomatic of this difference. Too much focus on the numbers is like looking in the rear view mirror when startups need to be focused on the future – building market share, refining partnerships and developing strong go-to-market execution.

Again, I believe that this gap can be attributed to us being a less mature VC and startup ecosystem. In the late 1980’s and 1990’s finding seasoned technology startup operators would have been almost impossible. Most were still building their first startup. However, had things unfolded as they should have, many of the startup founders from the 1980’s and 1990’s should now be partners at Canadian VC firms. That didn’t happen because the dot com meltdown appeared to remove the ability to the industry to make changes or take risks. Ironically, this exacerbated an already more conservative VC culture here in Canada, and this more risk averse approach actually contributed to the lower IRRs seen when Canadian VCs are compared to their US or European peers.

3. Lack of International Money

The fledgling LP/GP VC industry of the 1990’s was funded by a relatively small ecosystem of LPs, such as OMERs, Caisse de Depot, Teachers, CPP, BDC, etc. Thus every VC fund was essentially not differentiated by its LP composition. In essence, a closed group of Canadian fund of funds all were chasing this same relatively small asset class. Furthermore, the relaxation of Canadian content rules coupled with these aforementioned low IRRs, sent the Canadian LPs looking elsewhere (mostly abroad).

What is the right recipe to change this situation? Quite simply, access to more global sources of money. The thousands of US, European and Gulf institutional fund of funds investors have largely ignored investments in Canadian VC funds. This is partially because of the chicken and egg of lower IRR returns. But, more fundamentally, it is primarily because the Canadian startup and VC ecosystem had low visibility to these international funds. Several years ago, I spoke to a large €6 billion LP fund at EVCA in Barcelona, that had investments in 40 tier 1 VC firms in each of the US and Europe. Ironically, that LP’s sense of the Canadian technology scene was limted to Nortel. Since Nortel hasn’t really been a star for many years. Clearly we have a long way to go market our great technology stories to the world.

The Way Forward

Unlike this sign, I don’t want to end this piece on a note of doom and gloom. Nor do I want to leave the impression that there aren’t very talented people in the Canadian VC industry. Nothing could be further from the truth – our long term VC gap arises from long term structural challenges, such as a lack of discipline as imposed by global LPs and not having reached the proper banker/operator mix. There are other factors, including the small population and large geography unique to Canada, but all can be and should be overcome with the proper model.

We already have a few outliers in our funding ecosystem. Being optimistic and entrepreneurial, I’m convinced that many talented individuals will find ways to, little by little, to invent and rebuild a healthy network of startup financing alternatives. As I’ve argued in other blog posts, there is a role for governments. However, that role isn’t to pick winners or to enter the VC business directly, rather it is to be a catalyst to the process by streamlining (securities) regulation and taxation.

As a stakeholder in the success of knowledge-based startups, what do you think?

Please share your comments.

6 Mar 2009

Fail To Understand the Net Generation at Your Peril

The Net Generation (born 1977 to 1997), also known as Generation Y or the Millennials, is an ill understood lot. Don Tapscott, noted thought leader on digital technologies, is a real cheerleader for them in his recent book Grown Up Digital.

However, while some of his examples may represent the bleeding edge thought leaders of this generation, almost everything he says is well reasoned and researched. I would suggest this book is a must read for the rest of us who will watch this demographically dynamic generation increasingly dominate all aspects of our society, including business, culture, education, politics and entertainment. Many of us are looking at this generation from the perspective of the previously dominant demographic group known as Baby Boomers or Boomers (born 1946-1964), also known as the TV Generation. I would note that already, the Net Generation outnumbers the Boomers.

Perhaps the defining characteristic of this group is that they are the first generation to have been immersed from birth in digital technologies, such as the internet, computers and online media. Because of this, they are sometimes labelled “digitals“, with others who find these technologies more challenging to even baffling being called “analogues”. The Digitals don’t even think about technology, it is just part of the landscape for them. Analogues, by contrast, either avoid it like latter day Luddites or struggle to keep up with the Net Geners.

I’m part of an interesting hybrid group of people who were born analogue but has adopted many of the digitals characteristics. In essence, people like me might be described as a digital immigrant. Consider my digital pedigree:

I first used computers at age 14, after being invited with a set of Math Contest winners to the University of Waterloo where I had the pleasure of using APL an early math-based timesharing system running on an IBM 360/44 . It is notable that, rather than learning the standard Fortran and programming on punch cards, I started programming using an IBM 2741, which is like an online IBM Selectric typewriter (typeball and all) connected via modem, with acoustic coupler, at 134.5 baud. Prior to this, I had read about computers and thought about them abstractly, but the plain truth is that computers were only accessible to a very small, privileged elite.
Recently, a friend sent me the directory listing of an old backup tape for the Honeywell 6050 TSS system which reminded me that I first used email in 1975. Yes, we even had mailbox and mbox files way back then. Of course, the email system only connected the almost 1000 users of this computer, yet barely two years later my friend Bill Pase then working at IP Sharp Associates, connected me into a truly global email system run by that pioneering firm. This is primarily of interest because many people I talk to assume that email began in the late 1990’s.
Around 1990, while CEO at MKS, I remember being at an X/Open meeting in Rome (where ironically, I ran into the self same Don Tapscott at the Capella Sistina of all places) we were working to develop many of the standards that would shape our modern, connected digital world. I vividly recall after hours discussions with other attendees about my misgivings about how an always-on, multi-media world would impact our overall quality of life. As you can imagine, Rome was a fantastic place to have that debate. Even more important, what was esoteric futuristic thinking 20 years ago has largely come true, for better or worse.

So, like Don Tapscott, having grown up with a constant backdrop of technology and really having been part of making this cultural form, I too am a cheerleader for this emergent generation. However, many others, the most famous being Mark Bauerlein, take a much dimmer view of this generation. His book The Dumbest Generation: How the Digital Age Stupefies Young Americans and Jeopardizes Our Future (Or, Don’t Trust Anyone Under 30) might well be the NetGen equivalent to Reefer Madness for the boomers. For me, this shows that many people totally misunderstand this talented generation. Sure, this generation has its flaws like any other, but like Don Tapscott, I’m pretty optimistic about it.

To give a taste of how fundamental, not to mention transformational, the Net Generation culture is, I list the 8 norms that Don Tapscott found and validated through his research. I would suggest that the following norms need to be underestand by the rest of society so that the generations can build bridges based on the strengths of each constituency. The alternative is to create a new generation gap based on misunderstandings, a neo-Luddite situation if you will.

Here are Don Tapscott’s 8 norms for the Net Generation:

Freedom: this generation demands the freedom to choose at work, in education and the marketplace. And, for them, freedom is so ingrained that it is not an option.
Cutomization: Growing up with computers and software, has made this the mashup generation. Everything from products to lifestyles can be customized. This generation is the living proof of Chris Anderson’s Long Tail phenomenon.
Scrutiny: Living in the epicentre of the blogosphere, twitterverse, SPAM and nonstop marketing, high levels of filtering and scrutiny are the only defence of a generation which has made separating the signal from the noise an artform.
Integrity: The laser beam clarity and transparency of an always-on, Google-indexed world has heightened this generation’s radar for anything that fails to ring true. When there is no place to hide, a lack of integrity becomes glaringly obvious with often severe consequences for people or companies who fail to understand this new reality.
Collaboration: A generation that grew up on group work and online games, now has adopted global collaboration and teamwork like never before. The Net Generation’s digital connectivity likely are another nail in the coffin for command and control organizational design not to mention one-way traditional education models.
Entertainment: Net Geners expect work to be fun and the line between work and play is much more blurry for this generation. This means that some of the pioneering approaches at the Googleplex, may well become mainstream in the coming years.
Speed: Among fellow computer geeks, many used to pride themselves on speed and belittle the slower blink rate of the old fashioned world. Net Geners have taken this to extreme in their always-on, instantaneous world, expecting immediate feedback on everything they do. This could well be one of the biggest intergenerational challenges.
Innovation: This is a generation of early adopters, living on the bleeding edge. Not content to have products and ideas pushed to them like 20th Century consumers, they push collaborative, user-generated approaches to even the products they consume.

In business, government or ordinary society, I think we ignore this tidal wave of new thinking totally at our own peril. The first step is to understand this generation. Then, and only then, can our generation harness the incredible energy, idealism, passion and drive to help us all build a better future.

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