Media

November 30, 2020  by

MEDIA: Are COVID19 Rent Subsidy Caps Unfair? (Global National News)

Pleased to chat with Global National News about the latest coronavirus rent assistance program, the Canada Emergency Rent Subsidy (CERS), and challenges around the caps, in terms of the maximum amount that a business can receive.  In particular, there has been criticism of the $300,000 cap for businesses and other eligible organizations with more than one location.

This is a difficult issue, as it might seem to some as being unfair for larger companies; perhaps, analogous to “penalizing success”.  The reality is that COVID19 has been difficult for everyone, including smaller businesses with limited resources.  There are at least three sides to this challenging issue.

Larger businesses with multiple locations certainly feel the stress of steering a larger ship, with many employees and financial obligations, such as rent.  With more jobs at stake, it is understandable that not being able to make ends meet could have an adverse employment impact on a greater number of people.  The other side of this situation is that larger companies tend to have access to a wider range of financial resources, including established cash reserves, existing financial partners, and, perhaps, potential investors.  There are also other programs available, including those that support wages.

Smaller, standalone businesses that collectively represent the backbone of the Canadian economy can find themselves with fewer resources in financially challenging times, and attracting support from financial institutions is not easy (many, if not most, small business owners know just how difficult this is).  This category of businesses also knows what it is like to be overlooked, as the early days of COVID19 support programs left out various types of small operators (much of which has since been rectified).

The third side of this situation is the taxpayer (in this case, represented by government).  COVID19 has been extremely challenging for so many, be it on an individual, family, employee, business, or wellness level.  It is not feasible to simply open public funding in an unlimited manner; rather, balance is required.  With the objective of keeping as many businesses as possible on some form of “life support” as the pandemic unfolds and begins to move into a more hopeful phase in early to mid-2021 (fingers crossed), balance is important, in order to get to the other side.

The other thing that many companies with multiple locations will be considering is just how many are needed going forward.  COVID19 has changed a lot of behaviors, routines, and workplaces.  Although the situation will not be the same for everyone or every community, locations that built their business based on office traffic or proximity to large workspaces might have to rethink the way forward.  This is an area that requires thoughtful analysis, to make tough decisions and understand the impact on the road ahead.

Thank you for including me in your TV and print stories, Global National News!

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October 26, 2020  by

MEDIA: CBC News Network Weekend Business Panel (October 24, 2020)

Pleased to be joining the CBC News Network Weekend Business Panel from my home studio, alongside Sherena Hussain, Dennis Mitchell, and Natasha Fatah, talking airline refund spats, small business week, and the woes of another Canadian retailer, Le Chateau.

Many Canadians have been waiting for months to receive refunds for flights they had booked and subsequently cancelled by the airline due to COVID19.  Westjet recently announced its decision to issue refunds for flights it had cancelled, drawing attention from its rival, Air Canada.  Without going into the details around how the refund process will work, it seems to me that the focus should be on the customers who have been out of pocket what could be a significant amount of money for months.  It’s true that the airline and travel industries have been met with massive declines in business; a cause for concern in terms of future viability.  Regardless, it doesn’t seem right that customers be the ones to effectively finance this problem by not receiving a refund for something that they could not ultimately realize, through no fault of their own.

Small Business Week is generally a good time to reflect on the importance of the backbone of the Canadian economy; doing so has taken a different slant in 2020.  Small businesses have had to work extra hard to combat the impact of COVID19, be it in terms of financial challenges, keeping staff and customers safe, and finding new ways to deliver products and services.  Times of challenge can bring opportunity, such as better utilization of technology, an improved online presence, and the potential to access new markets.  Critical to this is the role of qualified advisors, who bring valuable perspective and an objective viewpoint, to help business leaders avoid pitfalls that they might not recognize until it’s too late.  Remember that business leaders have a depth of knowledge, as experts of their own companies, while advisors bring a breadth of knowledge, the experience of many situations; these perspectives are related, but they are not the same.

And finally, this week saw the demise of another Canadian retailer; this time, Le Chateau.  Seeking creditor protection and advisory assistance, we will have to stay tuned to see if this brand will find a way to continue into the future in some manner.  Regardless, I remember the years when Le Chateau was a “go to” stop on any trip to the mall, with lots of interest in the party and event section; another reminder of how much COVID19 has changed our lives.  The reality is, we don’t go very far these days, do we?  This makes life a challenge for retailers, airlines, travel, and hospitality companies; at least we have technology to stay connected.

Thanks for watching and for reaching out with your comments on these stories; it is a privilege to bring the business news to you.  See you again soon.

 

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September 28, 2020  by

MEDIA: When the Stores Come to You (Winnipeg Free Press)

There’s no doubt that COVID19 has impacted the way that we live, be it what we do (less), where we go (not far), and perhaps, most apparent, how we do things (differently).  Although there’s been a shift in how consumers procure goods and services that has been evolving for some time, the days of COVID19 have left many looking for solutions, some of which are not entirely new.

Consider shopping.  The rise of companies like Amazon and improved online shopping and delivery services from a range of retailers have changed how consumers interact with the retail experience.  We’ve come a long way from the nostalgic home delivery services of mid-last century, evolving through a time where mobility was all the rage (think malls, super malls, and the ultimate retail lifestyle experience) to arrive at a period when convenience is perhaps the most important consumer driver, closely followed by selection.  Online and mobile technologies have made a lot of this possible, but improvements in the area of logistics might be an even more important piece, something that is still very much in progress.

Fast forward to a range of upstart companies seeking their space in this lucrative market; fueled by the gig economy of those who have capacity to sell, as we’ve seen in areas such as ride sharing and short term home rentals.  I discussed one of these shopping/errand companies in a recent interview, where consumers can receive groceries and other items from various stores in their area, delivered in one convenient order

Although these services might bring important convenience in times of COVID19, will they last?  The impact of demographics might allow at least some of these companies to survive into the future, with evident trends including aging Baby Boomers, older seniors living in their homes for longer, and some geographic areas where the availability of younger family members to help is limited.

Market opportunity, however, is only one side of the equation; consider the following keys to success:

  • Capacity.  Delivery companies are only in business if they can attract and retain a sufficient number of drivers/contractors to provide services.  In a competitive world with a limited pool of potential “gig” contractors, which companies will be in the best position to attract them?  As a side note, beware of the potential for these workers to be deemed as employees for income tax and other purposes, which could represent a costly impact and need for business model revision.
  • Know the market/area where success is possible.  As this type of service offering is local, the geographic area must be sufficient to draw contractors, customers, and be competitive.  Those who do the math will realize that this isn’t so easy, especially on a sustainable basis.
  • Implementation.  Some might say that the devil is in the details; those who have been business operators know that the devil is in implementation.  Young companies can plan their service offering, but success is only realized by way of strong implementation on a sustainable basis, and with this type of logistical, “transaction heavy” business that utilizes a casual workforce, lots can go wrong.
  • Keeping up with the future.  Recognize that these companies will have to evolve in order to be sustainable, in areas such as enhanced logistics (think autonomous vehicles) and providing a competitive offering, where customers see value over the service cost.  This includes understanding costs, down to the last detail, as well managed and better capitalized companies will be in a stronger position to compete over the long term.

There’s no doubt that we will continue to see changes in how we live, including over what is expected to be another challenging season of COVID19 into the Fall and Winter.  Companies considering their next steps would benefit from the advice of those who have experience in building and managing businesses; it’s an advantage to have strength in your corner.

 

 

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September 8, 2020  by

MEDIA: CBC News Network Weekend Business Panel (September, 2020)

The Labour Day Long Weekend is a great time to be in my home studio for the CBC News Network Weekend Business Panel, alongside Elmer Kim and Jennifer Hall, talking consumer debt levels, Walmart taking on Amazon, and flying cars (yes, you read that right!).

Here are some quick thoughts on our discussion.

As Canadians combat the challenges of a global pandemic, we’ve seen consumer debt levels increase, mostly due to mortgages: payment deferrals, refinancings, and rising house prices can all play into this.  Of note, there’s been a fair amount of renovation activity taking place over the “pandemic months”, which could contribute to higher housing prices, and perhaps, some enthusiasm to say yes to a new home.  Conversely, decreased mobility means less spending in areas such as travel, dining, and retail, offset by what was evidently a fair amount of online shopping.  Let’s see what the trends show over the Fall months.

Walmart is a familiar retailer in many communities, with millions of people living within a short drive of their local store.  The launch of Walmart Plus (occurring on September 15th in the US) could represent interesting competition for Amazon Prime.  Although slightly more expensive and with a free shipping threshold of over $35 dollars, Walmart Plus will include some perks of its own, such as in-store item scanning via the Walmart app and gas discounts.  This program should be part of a larger strategic plan to attract customers, with the potential Tik Tok acquisition providing a connection point to an important demographic.  On a personal note, the Walmart store in my area has provided a good quality shopping experience during times of COVID19 and the mask mandate has made safety considerations less of an issue.  We will have to stay tuned to see when this program will launch in Canada.

And finally, the successful launch of a flying car could bring some interesting applications to transportation and logistics (I have wanted a flying car, Jetsons’ style, since elementary school!).  Commercialization details will be important, including reliability, price, training, and applications, but in the meantime, let’s enjoy the fun of this story, as it’s been a while since we’ve been able to consider technology for the sheer accomplishment of what is possible (doing so almost seems like a return to normal).

Thanks for sharing your Long Weekend with us, and see you again soon!

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August 11, 2020  by

MEDIA: Celebrating 3 Years on CBC News Network!

Pleased to be celebrating three years of regular appearances on the CBC News Network Weekend Business Panel!  Our panel reviews the week in business every Saturday morning after the 10 AM news (Eastern Time), discussing a diverse array of topics.  Here’s just a sample of topics where I’ve provided commentary on air over the past three years:

What I love about this format is the significant range of topics that impact every aspect of our lives and world, as we follow the news cycle.  My favourite stories?  Those that can be tied to a broad range of factors: politics, global trends, how we live, and the future.  This brings valuable context, and yes, it’s critical to be able to view through a strategic lens in order to see the connection points.

2020 has brought its own unique twist, as COVID-19 has resulted in those in the media reporting from their home studios, a new way to connect on air.  CBC News Network has also been streaming globally, bringing our work to a new and broader range of viewers.

Sincere thanks to everyone at CBC News Network and our audience for watching.  It is my privilege to bring business news to you in a time that is still very much unfolding and one that I expect we will not soon forget.  Stay well, everyone!

 

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April 16, 2020  by

MEDIA: Will COVID19 Change the Way We Do Business in the Future? (CJAD 800 AM)

Pleased to join Natasha Hall of CJAD 800 AM radio (Montreal) to discuss recent COVID19 developments and how it might change the way we do business in the future.  As business leaders and their staff members scramble to deal with the current challenge, it is an interesting question to consider what this experience might mean for the future.  Will work ever be the same again, or is the world of business forever changed?

Consider a few simple examples:

  • The “office job”, could lend itself well to working on a remote basis; but is it that simple?  Anyone who has managed a staff group remotely, such as in a different geographic location, can appreciate just how much this differs from managing a team that is under the same roof.  What are some areas that need to be addressed in order to do this effectively?
  • The “service job”, which could include a wide range of companies, such as wellness, food, and household services.  Many of these require interaction on a personal level, such as visiting a hair stylist, repair shop, or tailor, but will these companies face higher standards in the future, such as in terms of cleanliness and service delivery guidelines?  How will this impact how a business is managed?
  • The “user experience”, such as transportation, hospitality, and events.  Most of us are familiar with what it’s like to travel on a crowded plane, train, or bus or to spend time in a restaurant, hotel, or entertainment venue.  Will “personal space” or cleaning requirements change?  What could this mean for a company’s cost structure and viability going forward?

There are certainly some interesting areas to consider, that meet at the intersection of a company, its management, and customer/client base.  Given the experience of COVID19, it stands to reason that there will be an additional factor that could play a significant role: the notion of space, designed to protect people from that which could hurt them.  In this case, it’s protection from a global virus without a cure, one that has kept people isolated worldwide for weeks, months, maybe longer.

So, will COVID19 change the way that we do business in the future?  You can listen to our conversation here; with my thanks to Natasha Hall!

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April 12, 2020  by

MEDIA: CBC News Network Weekend Business Panel (April, 2020)

Launching the home studio for the CBC News Network Weekend Business Panel in times of COVID19, alongside Elmer Kim and John Northcott.  Our segment was devoted to business as COVID19 unfolds, including record unemployment levels, government support programs, and the struggling oil sector.

As developments in this area are rapidly unfolding, a few quick thoughts based on where we are at today:

  • Unprecedented unemployment levels.  Expect to see unemployment levels continue to increase, offset by programs that provide the opportunity for employers to retain staff (such as the Canadian Emergency Wage Subsidy).  Having said that, the bottom line is that a significant portion of Canada’s workforce isn’t working and may not be for some time, including those who are unemployed, being retained through government programs, or are underemployed due to working less.  Maintaining connection to the workforce is critical for employers, employees, and self-employed people.
  • Self-employment support shortfalls.  Under the current income support programs, it appears that self-employed people only qualify for the Canadian Emergency Response Benefit (maximum of $2,000 per month).  Many self-employed people who work on a full time basis earn far in excess of $2,000 monthly, representing a significant and urgent support gap.  Those who are working, but earning less due to customer and client circumstances, should be compensated in a manner that brings income up to at least the support level, as opposed to having to cease work in order to collect.
  • A loan is a loan.  Although there is certainly a place for loan programs as part of COVID19 support, it is important to remember that loans must be repaid, even if the interest rate is zero and a portion could be forgiven.  Loan repayment is dependent upon cash flow, something that companies may or may not have in the future.  It is important to remember that loan programs should not be a substitute for supports that address current income and cashflow needs, such as a wage replacement.
  • Upping the banks’ ante.  Thus far, the Federal government and banks have indicated that processes have been put in place to help customers “on a case by case basis”, in terms of areas such as loan payment deferrals.  Feedback has been reported as mixed at best, and given the risk averse nature of financial institutions generally, more needs to be done to provide broad-based relief, which could be achieved through a government mandate or similar measures.  The bottom line: financial institutions are living in a COVID19 world, whether they like it or not, and if sufficient actions are not taken now to assist people and businesses with their immediate cashflow needs, expect future default levels to be widespread.

On a lighter note, this was my first opportunity to be part of CBC News Network’s world-wide streaming from my home studio.  My director was watching every moment of it; how fortunate am I?  See you again very soon, CBC!

 

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March 9, 2020  by

MEDIA: CBC News Network Weekend Business Panel (March, 2020)

Back in studio for the CBC News Network Weekend Business Panel, alongside Elmer Kim and John Northcott.  Our segment was dedicated to the economic impact of coronavirus, including developments such as the interest rate cut that occurred during the week, the potential for widespread decline in the travel/tourism industry, and what the Federal government can do to help business.

Large companies might be relatively well prepared to shift gears when it comes to the need for staff reorganization and mobile/remote work strategies, however, small businesses can be much more challenged to do so.  The crux of the response to situations such as the coronavirus is risk management, with the objective of achieving business continuity during challenging times.

The first priority is to keep people safe and healthy, followed by the business reality of sustaining demand and coping in times of decline.  Here are some questions that business leaders should be asking themselves:

Keeping staff members and customers safe:

  • What are our obligations under legislation such as workplace health and safety?
  • Are there similar regulations or guidelines that must be adhered to, in terms of keeping staff members, customers, and products safe?
  • Do we have appropriate human resources policies in place to address situations of widespread illness or quarantine?
  • Are there particular safeguards that should be implemented, such as travel and similar limitations?
  • Where is the line between “business” and “personal”, in terms of imposing travel limitations?

Business continuity considerations:

  • Have we identified the key processes within our business and developed strategies for execution in challenging times?
  • Do we have systems, policies, and procedures to support a remote work environment?
  • Does our remote work strategy address risk points such as security, privacy, and information sharing considerations?
  • Do we have adequate depth in areas such as suppliers and service providers?
  • Does succession exist for all key positions in the company?
  • Does a labour market strategy exist to find skilled replacement staff quickly?
  • What would happen if sales declined significantly for a period of time; could the company survive?

These are examples of the many areas that must be addressed to ensure that a company can continue to operate in challenging times and it is important to remember that sufficient systems and processes should be in place before they are actually needed.  Doing so raises the likelihood that a company will survive in difficult times, as opposed to being swept away (remember that well managed competitors will have already completed this important work and will be focused on implementation, putting them several steps ahead of those who are less prepared).  Advisors can help to identify areas of priority and how to put them in place efficiently and more quickly.

Thanks for watching.  It will be interesting to see how coronavirus has evolved by the next time I am in studio; stay tuned.

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February 24, 2020  by

MEDIA: CBC News Network Weekend Business Panel (February, 2020)

Great day to be in studio for the CBC News Network Weekend Business Panel, alongside John Northcott and Mark Warner, discussing two stories that have been significantly impacting companies: the rail blockades in in protest of the Coastal GasLink pipeline and coronavirus.  What’s interesting about these stories, from a business perspective, is that they are good examples of situations that companies would not have expected to occur, but which could bring significant impact.

Disruption to Canada’s rail service can impact logistics across the country and beyond.  Companies that rely on rail service to bring in raw materials and/or ship products to customers can be impacted at the very heart of their business: money.  The inability to receive materials to manufacture products (or deliver services) or an inability to fulfill orders means that sales are not generated.  As simplistic as this sounds, consider what business leaders are left to do in the absence of cashflow, including issuing delay notices to customers and layoffs to staff members.  These may be short term implications, however, long term impacts could include a loss of reputation, customers, employees, and competitive position, and when a company sits idle for any period of time, the lost capacity can never be recouped.

Coronavirus is impacting companies globally, across a wide range of industries, including transportation, hospitality/tourism, agriculture, retail, and essentially any company that is trying to advance its business within the geographic area(s) where the virus is most widespread: currently, China.  Whether a company is impacted due to cancellations and travel advisories or by virtue of decreased demand, it still translates into revenue loss, some of which may have been counted as “sold” before the sale actually occurred (something that tends to happen in the routine of business, or due to the enthusiasm of “counting chickens before they have hatched”).  Delays associated with shipments out of China can leave companies abroad scrambling for stock and materials that are integral to manufacturing products and generating sales.

In what can be characterized as a confusing, vicious circle, what are business leaders to do?  Companies that have planned for disruption in their supply chain and distribution channels may be much further ahead, in terms of identifying alternate suppliers and routes; these are not areas to be researched in times of crisis.  The need for business continuity is an example of why identifying various paths forward in advance is so critical, especially to the key aspects of a company’s operations.  Although doing so may not fully resolve every issue, it helps to mitigate the risk and damage that can occur, something that is particularly valuable in times of prolonged disruption.

Business leaders do not always have the time and skillset to work through this important contingency planning, so it is important to remember that advisors can help; it might just be one of the best investments that a company can make.

We will be monitoring these stories in the coming days and weeks.  Thanks for watching and see you again soon, CBC!

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December 16, 2019  by

MEDIA: CBC News Network Weekend Business Panel (December, 2019)

Closing out 2019 in studio for the CBC News Network Weekend Business Panel, alongside Sherena Hussain and Natasha Fatah (aka The Women in Blue!).

Here’s what was on our Holiday Season menu:

  • New NAFTA Reaches the Finish Line:  As Canada, the US, and Mexico agree to some final revisions, what are the next steps for New NAFTA?  What does it mean for Canadian companies?
  • Compensation Rules for Flight Delays Kick In:  Air travel passengers in Canada will now have the potential for compensation in the event of some flight delays, but will it be meaningful?
  • More Ontario Cannabis Shops on the Way:  Removing the cap on the number of cannabis shops in Ontario might be an opportunity to better meet market demand, but are there other important considerations?

Negotiation of a new trade deal between Canada, the US, and Mexico has been unfolding over the past year and a half and has not been an easy task.  Given that Democrats control the House in the US, they were in a position to push for revision in order to support ratification and the countries were able to find agreement around clauses pertaining to dispute resolution, environmental, prescription drug, and labour provisions.  In particular, Mexico will have to take steps to improve the labour environment in that country, an area that has been contentious, given its ability to provide an inexpensive workforce and displace jobs.  Deals are one thing; it will be interesting, however, to see how well implementation occurs, once all countries have ratified what is effectively NAFTA 2.1.

Speaking from experience, we live in a world where air travelers tend to feel like they have no rights, especially in those moments when they are not treated particularly well (cue to the herding cattle analogy).  Air travelers are essentially at the mercy of airlines when delays happen, as there are limited alternative to get from one location to another.  Effective December 15, 2019, airlines will now have to compensate passengers in delay situations that are within their control, guidelines that likely have Canadians wondering if they are worth much, in practical terms.  It is important for passengers to know their rights when traveling, keep track of travel documentation, and ask airlines for clarification, when needed.  From a fairness perspective, good communication and transparency are important, however, too many of us know what it is like to be delayed in an airport with little in the way of information sharing.

As the cannabis industry continues to evolve, Ontario’s decision to remove the cap on retail shops is an area to watch.  Although studies indicate market demand, successfully operating a company is something that is quite different.  Business leaders too often make the mistake of thinking that a product alone makes a company, when nothing could be further from the truth.  We can all think of stores, restaurants, or coffee shops that opened too many locations, only to have to retrench to a more appropriate number; this type of downsizing can be onerous and expensive.  The same mistakes could be made here; this time, with a highly regulated product that requires special attention of its own.

As 2019 comes to a close, it’s a good time to be thankful for this past year.  It has been my pleasure to appear on the CBC News Network Weekend Business Panel, work that is both fun and a privilege.  Thanks for watching and see you in 2020, a year that is sure to bring a host of interesting developments, to say the least; stay tuned!

 

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