Join the Debate - Canada Has Missed the Boat to Asia

What's happening - Ivey Debates: Canada Has Missed the Boat in Asia on Tuesday, May 3, 2011, 6 to 8:30 p.m. at First Canadian Place Gallery, 100 King St West, Street Level, Toronto

What we provide - Debate of the Year between a CTV anchor, a financier, a corporate strategy officer and a management consultant with Ivey Asia Dean/ Former Sun Life China CEO as the moderator. It is an event to be filled with great insights, business opportunities and funny comments! 

What you need to prepare - Sharp questions, healthy appetite (for drinks and hors d'oeurves) and a mood for networking with high profile alumni!

Ivey Debates: Canada Has Missed the Boat in Asia, a question raised by Dean Kathleen Slaughter's November 2nd statement in the Global & Mail newspaper: "Canada Has Missed The Boat in Asia."

Featuring:

• Andrea Mandel-Campbell, CTV Anchor, Journalist and Author of 'Why Mexicans Don't Drink Molson'
• Jacoline Loewen, Partner, Loewen & Partners Inc, panellist on BNN The Pitch, author of Money Magnet: Attracting Growth Capital to Your Business
• Dev Srinivasan, Vice President Strategic Initiatives for Capital Markets, BMO and Ivey 2010 Emerging Leaders Award Recipient
• Gordon Perchthold, Managing Partner, The RFP Company
• Moderator: Janet De Silva, Dean of Ivey Asia and Former Sun Life China CEO

Are Canadian corporations soft, complacent and overly protected or have the examples of Bombardier, Manulife, and RIM demonstrated that Canada can effectively compete in fast paced, high growth Asia?

Registration

• IAAT Supporter*: $20 ($22.60 HST)
• Current Students and Recent Grads (2010/2011)**: $20 ($22.60 HST)
• Renew for or become an IAAT Support and attend this event - for alumni who graduated in 2009 or before: $70 ($79.10 with HST)
• Renew or become an IAAT Support and attend this event - for alumni who graduated in 2010 or after: $50 ($56.50 with HST)
• Ivey Alumni: $40 ($45.20 with HST)
• Non-Alumni: $50 ($56.50 with HST)

* Find out more about IAAT's Supporter program by going to http://iveynetwork.ca/toronto/supporterprogram/

Strategy planning process keeps the business going

"A Business Plan," is a very broad idea. 
When I ran the strategy process in a big business, I did several plan-budget things every year from department to division to business unit. In one sense these were all a lot of hooey - the ink would still be soft when the first 15% was being changed. Some of that was stupidity but as it turns out, most of it is what "planning is all about. The planning success was the process because it kept everyone focussed on who is the target client, what do they want to see and how could you help them do their work better. The quick analysis done around what was the business offering that competitors could not, is almost a subconscious check on getting done the essentials to delight the customer.
In a finance business I have worked with for the past 16 years, I look back on its strategy-the early plans-and remembered how I did have to force the managers to go through a strategy process. At the time, some entrepreneurial types laughed at their irrelevance.  
"What did it matter to know we were not trying to be everything to all people?"
"What is the point of having three objectives to achieve this year?" "And how can you set just three that apply to everyone?"
The strategy process chewed over the amount of money they needed to keep in their piggy bank to ensure survival through the black swans. Back then, the governments were dropping the level of reserves required and there was political pressure to not red ink "no lend zones" for real estate. The bank was accused of not wanting to do deals as they refused to do the derivatives and swaps every other bank was now allowed to do with the reduced legislation.
Although they grossly mis-timed and mis-sized the recession, recovery is strongly underway. When I recently hosted the head strategist for this bank which is now global, he talked about the discipline of having a formal, tough process of doing a one page plan even. The process is what made the company conversation keep going back to sanity during the go-go years. He said to me that those old, goofy plans are priceless.
I wrote a book called The Power of Strategy about the process I used. It became a best seller and is still available on Amazon.

Think you do not need a business plan?

That question of just how necessary a business plan is and the value it adds is often raised by company owners. 
It is true that for the entrepreneur, the business usually starts with a half-baked idea and a written plan seems restricting and premature. If the venture needs to raise money beyond a good friend's budget or your uncle's finances, then you will need to find an Angel who may be an executive with extra cash, a group of professional investors or a Venture Capitalist. 

Then you absolutely need the plan as a key indicator that you are serious. It is selling your financial competence. 
Here is what a financier will be thinking:

1) How do financiers know it is credible, or profitable?
2) How seriously will I take you as an entrepreneur if you believe you don't need a plan?
3) Show me your cash flows, and explain when I get my money back.
4) What is your organic/inorganic growth plan?
5) Explain your competition's strengths, opportunities, technology, and the role of offshore outsourcing options.
6) John Smith has exactly what you are proposing - why should I fund you instead of him?

Didier Lombard warns of troubles ahead for Telecoms

Operating margins for many telecom companies have shrunk rapidly, as mobile phone service has overtaken fixed-line service, data traffic has outpaced voice traffic, and the old bread-and-butter phone service has become commoditized. Meanwhile, global demand for data services has increased massively, especially with the emergence of video streaming and downloading on the Internet. This “data tsunami,” as it’s been called, has grown in intensity with the proliferation of data-enabled smartphones.

Read more at S+B

The Thought Leader Interview: Didier Lombard

Business plans don’t help in early stages - The Globe and Mail

If anyone believes the value of the business plan is the finished document, this article may be at least partially right. As someone who led the planning exercise in many companies, I learned that the journey was far more valuable than the destination.
Planning brings structured thinking to the business, and helps to ensure that key questions are posed for discussion. Everything in a business is connected. A decision to take a certain action will also produce re-actions. They need to be accounted for, and, if necessary, mitigated. The planning process helps to tie the pieces together, and keeps the pieces focused on the current objectives.
The inference in the article is that a plan will make a company less nimble and flexible. It might do that, if that's how planning is approached. But it doesn't have to be that way, nor should it.Planning brings structured thinking to the business, and helps to ensure that key questions are posed for discussion. Everything in a business is connected. A decision to take a certain action will also produce re-actions. They need to be accounted for, and, if necessary, mitigated. The planning process helps to tie the pieces together, and keeps the pieces focused on the current objectives.

Business plans don’t help in early stages - The Globe and Mail

Canada has Missed the Boat in Asia

Tuesday, May 3, 2011, 6 to 8:30 p.m., First Canadian Place Gallery, 100 King St West, Street Level, Toronto

Featuring:

• • Andrea Mandel-Campbell, Journalist and Author of ‘Why Mexicans Don’t Drink Molson’
• • Jacoline Loewen, Director, Loewen & Partners Inc
• • Dev Srinivasan, Vice President, BMO
• • Gordon Perchthold, Managing Partner, The RFP Company

Are Canadian corporations soft, complacent and overly protected or have the examples of Bombardier, Manulife, and RIM demonstrated that Canada can effectively compete in fast paced, high growth Asia?

Join IAAT’s debate as Andrea Mandel-Campbell – journalist and author of ‘Why Mexicans Don’t Drink Molson’, Jacoline Loewen – Director of Loewen & Partners Inc, Dev Srinivasan – Vice President of BMO, and Gordon Perchthold – Managing Partner of The RFP Company, together with the audience debate the question raised by Dean Kathleen Slaughter’s November 2nd statement in the Global & Mail Newspaper:  “Canada Has Missed The Boat in Asia.”

Canada’s relevance in Asia is a critical issue for Canada’s future economic prosperity and should be a key election issue for Canadians to ponder.

Light snacks will be served. 

Registration:

• • IAAT Supporter*: $20 ($22.60 HST)
• • Renew for or become an IAAT Support and attend this event – for alumni who graduated in 2009 or before: $70 ($79.10 with HST)
• • Renew or become an IAAT Support and attend this event – for alumni who graduated in 2010 or after: $50($56.50 with HST)
• • Ivey Alumni: $40 ($45.20 with HST)
• • Non-Alumni: $50 ($56.50 with HST)

Register for Ivey Debate

Why Changing Living Standards Around the World Measure Inflation

How do you measure inflation? Is the high standard of living enjoyed by the Western world in decline, draining away to the rapidly growing countries of China and India? Larry Cyna, Cymore Fund, wrote a thought provoking analysis of the thesis that wealth and high standard of living is flowing to Asia. Here is a quick excerpt with a link to Cymor Fund blog at the end:

Inflation is not to be measured by traditional metrics, but rather by the changing living standards around the world, and the changing GDP of major country influences around the world – in essence the drop in economic standing of the US and Europe, and the unstoppable move forward by China, then overtaken by India.

Loewen & Partners hosted a event last week in Toronto where Dr. Michael Power of Investec Asset Management gave a presentation. Dr. Power is a noted advisor to Hedge Funds and travels extensively giving presentations internationally to Hedge Fund managers and others. His presentations on current trends and matters of interest are widely followed and respected. He pointed how US debt and changing demographics were inexorably shifting power and influence to China and then to India. Essentially I agreed with his presentation.The Unpredictability of Predictions: My first response to anyone who is a futurist, or who has the ability to spot major trends, is to thank him for the insight. However, I also have a theory that is proven by history. “What we as humans will never master, is to predict with accuracy the future.” Recent events, sometimes described as Black Swan events, are a vivid example. Who could have imagined that government surpluses of a few short years ago in the US, would turn suddenly into massive deficits that everyone is running in fear of? 

The inevitability of the inevitable is flawed: Interest Rates. While in an overall sense, I cannot disagree with the thesis, there is also the effect of interest rates. We currently live in this delusional world where we think that inflation is something that can be controlled by government. Governments have many tools, but the total control of interest rates, continues to elude us. Once the Genie is let out of the bottle, interest rates have a way of running away ahead of all attempts to restrain them. The result is a massive shift of wealth. The speaker felt that this massive shift would inexorably be to the new Eastern economies. However another way to look at the issue, is that the massive accumulated reserves of the new Eastern Economies, would be reduced in value by 20% in a single year, if inflation was 20% for that entire year.

Read Cymor Fund Blog

Are the markets getting frothy again?

It's hard to pick between the bubbles-are-bad and bubbles-are-O.K. camps is that bubbles aren't all alike. The best ones create assets whose value survives the crash. The Apollo program that put people on the moon, only to lose public support in the 1970s, was a "social bubble" in which over-optimism advanced science. Bad bubbles generate worthless assets such as exurban housing subdivisions that are taken over by squatters and mold. Other bubbles don't produce any supply response at all. The only impact of China's new mania for old wine—one bottle went for nearly $233,000 last year—is to transfer wealth to whoever was lucky enough to own the bottles before the Chinese got interested.
When the tech sector gets bubbly, consumers are often the biggest beneficiaries, notes Harvard economist Edward Glaeser. 
Glaeser says:

Because investors fund ideas that help the general public, from wireless communications to solid-state data storage to the Internet. So it was in the 19th century with the railroad boom. Today's speculation in tech is concentrated in social networking. 

The question is whether the new investments will live up to the greatest hits—and productive busts—of Silicon Valley's past.

Are You Growing Your Business to Sell?

Decide if you’re a Lifestyle Business Owner or an entrepreneur.  This distinction matters to Private Equity investors. They have to see the big growth over the next five years.
In the Bootstrapper’s Bible, Seth Godin teaches us that a product focused business owner sells their talents.  While they may have a few employees, they’re doing a job without a boss, but not running a business.  There’s no exit strategy or pot of gold, but they make their own hours and be their own boss.  Examples include layout artists, writers, consultants, film editors, landscapers, architects, translators, and musicians.  Seth writes:

An entrepreneur is trying to build something bigger than themselves.  They take calculated risk and focus on growth.  An entrepreneur is willing to receive little pay, work long hours, and take on great risk in exchange for the freedom to make something big, something that has real market value.

Why Valuations Matter in Tale of 2 Economies - China and USA

In the US, the Obama administration is ploughing a lonely furrow, the only major country in the world to be easing fiscal policy this year, even as the Federal Reserve persists with a scorched earth monetary policy. The President's nod to the hawks in the Republican party, who not unreasonably consider America's deficit to be out of control, could hardly have been more half-hearted – his proposed spending cuts won't get going until the presidential term after next. George Osborne he is not.

On the other side of the world, China faces a completely different set of problems.

Why valuations matter in US and China's tale of two economies - Telegraph