2001 spring branding

T h e A l u m n i M a g a z i n e o f t h e R o t m a n S c h o o l o f M a n a g e m e n t

S p r i n g / S u m m e r 2 0 0 1

Management

MAKING YOUR MARK

Branding as Business

Strategy: Roger Martin

David Dunne on Branding

Canada

Is Brand Leveraging

Going Too Far?

Join Author Malcolm Gladwell at

Rotman Life-LongLearning

People Are Talking About...The Consolidation ParadigmCompiled by Karen Christensen

4

26

Rotman Management is the magazine for alumni and friends of the Joseph L. Rotman School of Management, University of Toronto • Spring/Summer 2001 • PUBLISHER: KateEccles, Assistant Dean, Advancement, and Chief Marketing Officer • EDITOR: Karen A. Christensen • CONTRIBUTORS: Steve Arenburg, Laurence Booth, David Dunne, RogerMartin, John Mason, Ken McGuffin, Sridhar Moorthy • DESIGN: De-Ann DeGraaf/James Ireland Design Inc. • COVER: Kevin Kelly • PHOTOGRAPHY: Jim Allen, LauraArsié, Edward Gajdel, Kevin Kelly, Ken McGuffin, Peter Thompson • ILLUSTRATION: Greg Stevenson/i2i Art • PRINTING: Harmony Printing Limited • Copyright 2001 • Allrights reserved. • To submit a change of address, please write, call, e-mail or fax your newaddress to: Rotman Management, Joseph L. Rotman School of Management, 105 St. GeorgeStreet, Toronto, ON, M5S 3E6, TELEPHONE: 416.978.0240, FAX: 416.978.1373, E-mail:[email protected] • Visit the Rotman School’s Web site at www.rotman.utoronto.ca

32

31

Contents

11

18

16

5

From the Dean

Branding CanadaBy Professor David Dunne

20 Branding Question PeriodWith alumni, faculty and friends

Pushing the Limits:When Brand Leveraging

Goes Too FarBy Professor Sridar Moorthy

The IncreasingComplexity of Bank Brands

By Professor Laurence Booth

28The Power ofPartnerships

By John Mason

News BriefsBy Karen Christensen and Ken McGuffin

38 Alumni on the MoveBy Karen Christensen

41 Class Notes

47 Rotman Life-Long Learning 2001

Campaign Update:Great Minds forGreat Business

30 Upcoming Events

Branding as Business Strategy

By Dean Roger Martin

{ R O T M A N M A N A G E M E N T } 3

4 { S P R I N G / S U M M E R 2 0 0 1 }

A brand is a metaphorical story that connectswith a fundamental human need to make sense of things at a ‘higher level’.Your brandmanifests your company’s culture, businessstrategy, and history — translating that to your community in a powerful symbolic form.In this issue, the Rotman community putsbranding under the microscope, in an attemptto answer the question: What, in the year2001, is a brand, and how does it relate tocompetitive advantage?

As Assistant Dean Kate Eccles and I satdown recently to discuss branding, the impor-tance of building authentic organizations cameup again and again as a central element in successful branding.The result of our conver-sation is summarized in Branding as BusinessStrategy (opposite.)

Is today’s rash of mergers and alliances theappropriate strategy for firms to remain glob-ally competitive? One thing is certain — itbrings branding issues to the fore as corporatecultures and visions mesh — and sometimesclash — in record numbers. In January,

the annual student-run MBA Business Conference tackled this issue. Highlights ofThe Consolidation Paradigm: The Pathto Global Competitiveness? appear onpage 11.

Is it possible — or necessary — to brand acountry? And if so — what is Canada’s brand?David Dunne gives his opinion in BrandingCanada: It Will Take More Than a MapleLeaf, on page 16.

Leveraging a brand means using the initialbrand platform to move into other opportuni-ties. In some cases, companies attempt to leverage their brand by moving into unrelatedproduct areas. Is this a good idea? Manny Rotman Chair in Marketing Sridhar Moorthygives his perspective on page 18.

Banks aren’t what they used to be. On page 26, Professor Laurence Booth looks at how their expansion into non-traditionalactivities puts modern pressures on their well-established brands.

As is our custom, we’ve opened up thebranding question to Rotman alumni, donors,

students and friends. Their thoughts can befound throughout this issue and in BrandingQuestion Period on page 20.And on pages 38to 40, we profile three Rotman brand warriersin Alumni on the Move.

Of course we couldn’t create a brandingissue without examining our own brand. Onpage 8, Karen Christensen looks at the Rotman brand and what it is coming to meanin today’s business education marketplace. ForRotman alumni, we hope it symbolizes an integrative approach to business thinking,access to a life-long community for your support, education and competitive advantage,and a community that can serve you through-out your career by providing the latest businessdialogue, research, and thinking to help youadvance. In short, we want your Rotmandegree to be “warrantied for life”.

We are building the Rotman brand withpassion and commitment, but ultimately you— our alumni, donors, friends and studentsare the best symbol of what the brand reallymeans.We are proud to share your story. RM

From the Dean

today’s increasingly competitive marketplace, the ability to brand your

company, product, or service is a critical determinant of the ability to

compete.Many people think of a brand as a logo — putting a “picture”

on a product or service as a finishing touch before taking it to market. But as

we discover in this issue of Rotman Management, a brand is much more than that.

IN

B r a n d i n g t o c o m p e t eby Dean Roger Martin

PHO

TOG

RA

PHY:

JIMA

LLEN

Branding is part art, part science. It is intangible, visceral, emotional,

personal, cultural, and very hard to build. In this article, Dean Roger Martin

and Assistant Dean Kate Eccles argue that branding isn’t about advertising

and PR, it’s about how your firm is fundamentally going to compete.

t’s not your father’s Oldsmobile”. Most of usremember this campaign — a series of cleverand compelling General Motors ads designed toaddress a worrying trend: The buyer profile of

one of GM’s key divisions was aging. As sales keptdrifting downward, GM relaunched the Oldsmobilebrand in 1988 with a ubiquitous ad campaigndesigned to capture a new generation.

Many of us recall the high production values of these ads, which ran in various iterations for over a decade. Celebrity father-child pairs like

William Shatner and his daughter, traversing thegeneration gap through a shared commitment tothe Oldsmobile brand.

Why, then, after years of brand bodywork, didGeneral Motors make the decision last Decemberto phase out the Oldsmobile — the oldest automo-tive brand in America?

Well, it turned out it was your father’s Oldsmo-bile after all.

The Oldsmobile ads may have amused sampleconsumers in focus groups, but they did nothing to

I


PHO

TOG

RA

PHY:K

EVIN

KELLY

as business strategyBRANDING

provide real customers witha compelling reason to buythe cars. In a last-ditch effortto resurrect the brand,Oldsmobile hired a new addirector a couple of monthsbefore the announcement.Why, even with this chang-ing of the guard, couldn’tthey produce ads that werecompelling to customers?

The truth is:The Oldsmobile demise wasn’tdue to ineffective advertising. It was becauseyou can’t stand for something that you aren’t.

THE GOLDEN THREAD

In an age of accelerating product proliferation,enormous customer choice, and growing clutter and clamor in the marketplace, a greatbrand is a necessity, not a luxury.

People tend to think branding is a straight-forward final step of a strategy: Figure out whatyou are going to do and then brand it.As thoughyou could “brand” your firm as an afterthought,hire an ad agency to “brand” your product, orchange ad directors to resurrect a dying brand.

The truth is that a brand is a synoptic, inte-grative view of the firm, and is completely central to business strategy. As much as any-thing, a brand stands for an attitude, a way ofcompeting. Indeed, one could go as far as tocall it culture. In the final analysis, you can’t“get” a brand.You have to “be” a brand.

Many people equate branding with logos,but that would be too narrow a definition. Alogo is a symbol, but a brand is a story. Brandsare about passion, commitment, and meaning,not about what the label looks like on thesupermarket shelf.

Your brand is a “golden thread” that runsthrough everything your firm is about, connect-ing your strategy, your history, your corporateculture, directly to the heart of your consumer.

Branding is partly about storytelling andmeaning, but it’s also about authenticity. It’sabout the ability to really connect to the heartof the consumer, and about your willingness tokeep promises — to your employees, yourcustomers, and the communities in which yourcompany operates.

Some would try to pro-mote a brand that is inconsis-tent with what consumersactually experience.They thinkthat if only they can get some-one to draw the right pictures,to make the right commer-cials, to have the right PRfirm, consumers will say theright things in focus groupsand buy their products.

But the truth is, a brand becomes what consumers see, not what the firm wants it to be. The phase out of GM’s Oldsmobile division illustrates how difficult it can be to resurrect a brand — even one with a century of history — once it has fallen out of favour and no longer delivers authentically tothe consumer.

To build brand equity, a company needs todo two things — distinguish its product fromothers in the market, and align what it saysabout its brand in advertising and marketingwith what it actually delivers — both of whichOldsmobile failed to do.

BUILDING AN AUTHENTIC ORGANIZATION

A brand isn’t just what the customer experi-ences. It’s everything that a company’s vendors,employees, and board members touch.Companies need to rethink who defines theirbrand.The power of marketing and advertisingdirectors is declining. As service becomes animportant part of the brand experience,employees in customer service and distributionbecome just as important to the brand as themarketing and communications departments.For Sleep Country Canada, the brand is asmuch about the booty-clad deliverymen as theubiquitous radio advertisements.The separationof marketing, research, advertising and cus-tomer service into silos no longer makes sense.

Your brand is a manifestation of your culture— the hearts of your people and what theystand for as individuals.The heart of what yourfirm is prepared to promise. The only way tohave a really strong brand, therefore, is to havean authentic organization.

The Four Seasons — a great Canadian com-pany with 50 hotels in 22 countries — under-stands this well.These hotels do not compete

6 { S P R I N G / S U M M E R 2 0 0 1 }

With billions of dollars loaned, traded, and

transacted globally every day, millions of dollars

are potentially at risk at any given moment in time.

Having pioneered a way to proactively measure

and manage risk by determining the total exposure

of a financial institution across all of its global

activities, Algorithmics software is now at the

heart of risk management for more than 120 lead-

ing banks, asset managers and corporations in

26 countries.

Since its inception 12 years ago, Algorithmics

has evolved from an idea, to a name, to a team

of dedicated people, to an identity, to products,

and finally, to a state of “brand magic”, according

to its President and CEO, Ron Dembo. Dembo

spoke about his company’s brand at the Rotman

Entrepreneurial Design Workshop held last

November. “When a brand transcends into some-

thing that people recognize, identify with, need,

and ultimately choose as a result of its identity,

branding magic has been made. I believe the

Algorithmics brand has reached that place.”

“When I started this company, I could have

taken the approach that we would be just another

tech company, rushing product to market and

paying little heed to aesthetic sensibility, brand

development, culture and art.” Instead, Dembo

decided to build a company that would lead the

industry both in research and development, and in

thought leadership. To do so, he had to build an

aesthetic, a culture, a community — “all those

things which define a brand, that supercede a

‘business as usual’ approach.”

Making striking design a priority has had an

incredible impact on the Algorithmics brand,

says Dembo. “We’ve relied heavily on strong, yet

simplistic design, metaphor, and a primary colour

palate. “ As a result, the company’s corporate

identity, advertisements, and collateral materials

appeal to universal sensibilities. “Consistently

Branding Case Study: Algorithmics Inc.

with the best hotels in the world on the basis ofbetter facilities, better real estate, or the mag-nificent physical structures of the world’s oldest grand luxury hotels.Their competitivestrategy — and what the brand has come tosymbolize — is impeccable and unforgettablecustomer service.

Yet, Chairman and CEO Isadore Sharpdoesn’t have a “customer service” department.Why? Because everybody who works at a FourSeasons hotel is automatically in the customerservice business. On the recent opening oftheir newest property in New York City, thecompany reviewed 30,000 applications, andinterviewed 3,000 people, in order to fill 400positions.They take the selection of those whowill “be” the brand seriously.

The Four Seasons recruiters aren’t lookingfor people who have necessarily worked in

hotels before — they’re looking for those whoare going to love serving their customers, whoare respectful and empathetic — those whounderstand what the Four Seasons banner standsfor and who want to become part of that tribe.

In exchange, this authentic brand providesgreat opportunities for those who fit the brand

profile. Four Seasons employees, unlike manyin their competitors’ hotels, receive moretraining, have unprecedented opportunities tobe promoted within their organization, andhave a lower turnover rate by far than theindustry average. Four Seasons understands

The Role of Identity in Branding

As you stroll through the grocery aisles,plucking items from the shelves and fillingup your cart, telling one brand from anotheris relatively easy. It’s unlikely you would accidentally reach for a box of Kellogg’s Cornflakes when you’re looking for KraftPeanut Butter. When it comes to consumerproducts, we remember logos, slogans,and the colors and packaging associated with them. But for more complex entities,such as large organizations or educationalinstitutions, branding can be much morecomplicated. Two of the key things that

define an organization’s brand are its identityand the way in which people identify with it.

Rotman alumnus Blake Ashforth(BCom ‘80, PhD ‘86), currently teaching at theUniversity of Arizona, is a leading researcherin the area of Organizational Identity (OI). Hecalls OI “the soul of an organization”. Definingan organization’s identity requires identifyingthe qualities that make it distinctive from itscompetitors. To survive and thrive, every entity, whether it be an organization, group, orinstitution, must formulate an answer to thequestion, “Who am I?”

Another key concept in defining an organization’s brand is identification, whichis people’s perception of ‘oneness with’ or‘belongingness to’ the organization. We allwant to think we’re part of something biggerthan ourselves. Organizations that manifestthat sensibility create the emotional contextpeople need to locate themselves in a largerexperience. People who strongly identifywith an organization incorporate some of whatthey believe to be distinctive and enduringabout it into their own self-concept.

Research shows that employee involvementis a key component in building reputation for a company, creating an attractive image for it, and promoting identification with it.Ashforth and his colleagues have found thatstrong identification is linked to the likelihoodthat members will externally promote theorganization and contribute to it financially.Identification is also said to directly affectemployee decision-making and understanding.

— Jelena Zikic, PhD Candidate in

Organizational Behavior,

Rotman School of Management


excellent design has become one of the hallmarks

of our brand and, I believe, speaks to the superiority

of the solutions we offer.”

But it takes more than strong design to create a

successful brand. “Equally important is that we’ve

managed to create products that people want, and

have priced them at a level perceived as ‘value

for money’. Choosing appropriate promotional

vehicles and ensuring the right sales channels

is also critical.” In the case of

Algorithmics and most other suc-

cessful brands, says Dembo, the

people in the company and the

corporate culture are also a critical

component of brand building. “A huge part of our

success has been as a result of ‘the company we

keep’. Our people are critical to our unique and

distinct brand.”

With 500 employees speaking 22 languages

in 16 offices worldwide, Algorithmics is truly a

global village. “We recognize and celebrate this

unique and extraordinary cultural diversification

— and I know that our customers do as well.”

Customers are made to feel as though Algorithmics

staff are not only ‘speaking their language’ in a

literal sense, but that they also feel their cultural,

political, and social needs are being understood

and addressed. “That’s a big part of who we are,”

says Dembo.

continued on page 9

Ron Dembo, President and CEO of Algorithmics Inc.

How did the Rotman School manage to become the

most often-quoted business school in the country,

despite a minimal advertising budget and a one-person

media department? The answer: radical marketing.

The term ‘radical marketing’ was coined by

Sam Hill of Booz-Allen & Hamilton to describe the

unorthodox publicity approach often adopted by

successful entrepreneurs who must establish their

brands under significant resource constraints.

Radical marketers relate differently to their

customers than traditional marketers do. They aspire

to be in tune emotionally with their customer base,

which allows them to glean superior marketing insight

without spending millions of dollars on market

research and focus groups. They are more focused on

the big picture — growth and expansion — than

short-term profits. Examples of radical marketers

include: Harley-Davidson; Madonna; The Grateful

Dead; Oprah Winfrey’s “Harpo Productions”, and

Virgin Atlantic.

With the arrival of Dean Roger Martin in

September of 1998, U of T’s School of Management

was ready to embark on a period of unprecedented

growth and renewal, pursuing an ambitious goal to

rank among the top ten business schools in the world

within seven to ten years. Far behind the top business

schools in both scale and resources, Rotman could not

expect to compete by merely replicating successful

models of the leading schools.

“We adopted a school-wide strategy to pursue

uniqueness, not replication — distinctiveness, not

predictability,” says Martin. “To win, the School has to

act simultaneously across a range of key dimensions

to create a system of intersecting and mutually

reinforcing advantages that will lock in our competi-

tive position and make it difficult for others to replicate

our distinctiveness.” One element of that system is

radical marketing.

“Radical marketers are driven by a dream that

borders on obsession,” says Kate Eccles, Assistant

Dean, Advancement and Chief Marketing Officer.

“They are frequently hindered by limited financial

8 { S P R I N G / S U M M E R 2 0 0 1 }

The Radical Rotman Brand

Radical Marketing 101:

• The CEO’s image is consistent with

the brand.

• Advertising is used only in very minimal,

targeted ways. If used at all, it’s a

“content blast” with a specific message

and purpose, not a continuous stream

of general image advertising.

• Marketing focuses on creating strong

visceral ties with specific target audiences,

creating a sense of a “club” or a community

of consumers.

• Publicity is the top mass market external

relations tool, used strategically to position

the brand, with the CEO as the central

media player.

• “Market research” is minimal: Close

consumer ties provide needed information

and feedback is continual and built into

day-to-day operations.

• Staff and constituents are energized

and act for the brand as “passionate

missionaries.”

• Marketing mix is unorthodox, but the

organization is absolutely obsessive

about brand integrity.

that its brand is about the customer experi-ence. They also know that the ‘goldenthread’ is delicate and easily broken —by not having the right people at the customer interface, their brand wouldbecome meaningless.

The best brands are polarizing — theysacrifice alignment to the hearts of some,to speak deeply to the hearts of others.Porsche, for example, maintains an authen-tic connection to a narrow band of car buyers — those who want only the best.Porsche’s brand promise is that their firm

is populated by engineer car fanatics who drivethe cars with speed and rapture, and careintensely about quality. The notion is that theraison d’etre for the Porsche family and theengineers who work with it is the desire tobuild cars that are good enough for themselves— the idea that the firm’s own employees areits most demanding customers.

Virtually anything is brandable and offersan opportunity to create a frame of mind thatis unique. A product line — like Oldsmobile— is something that is produced to functionand exist in reality. A brand has meaningbeyond functionality and exists in people’s

resources, but are inspired by a belief in their product.

At the Rotman School, we operate with significantly

less resources than our top-ten competitors, all of

whom have significantly more marketing staff than

we do, and huge budgets for outsourcing advertising,

PR, communications and special events. As a small

community, we have to think differently — we have

to be radical if we are to achieve ambitious goals.”

The first step in executing the marketing plan was

to develop the three Rotman vision points: Global

Competitiveness, Integrative Thinking, and the Value

of One. As well, the School needed a visual and

graphic identity. Enter Bruce Mau Design, which

created the now-familiar Rotman wordmark and

devised a complete graphic standards manual. Mau

developed the strong, dynamic “look” and colour

palette which is now used for all Rotman publications,

Web sites, advertisements and signage.

“It was vital that the Dean’s vision be positioned

within a strong and coherent brand, and that the

School’s goals and objectives be clearly communicated

to internal and external constituencies,” says Eccles.

“By having a clear competitive strategy and story,

represented by consistent visual symbolism, we have

attempted to create a billboarding effect for the

Rotman brand across all public activities, media and

communications strategies.”

“The brand is helping us draw an ever-expanding

circle of top business people to the School, and is

helping to enhance our recruitment and fundraising

activities,” says Martin. “People are really starting to

understand what we stand for.”

Eccles adds: “The Rotman brand doesn’t live in

the marketing-communications department, but is

represented by everyone in the Rotman community

— alumni, students, faculty, staff, donors and friends.

Everyone has been a part of this effort — and we

really are beginning to get this tribal sense that

together, we comprise a community that is doing

something really great. One of the challenges we

face moving forward is to continue to be obsessive

about our brand integrity, ensuring that we think very

strategically about what ‘products’ the Rotman brand

will offer, ensuring the brand is not diluted by poten-

tially lucrative, but off-strategy offerings.”

— Karen Christensen

Choosing to put your name on an institutionis a deeply personal and difficult choice.You are putting your name in the hands ofothers (the people you’re partnering with.)Seeing my name in the newspapers, on TV,and on the Rotman building itself reinforcesthe desire for the realization of my personaldream: to see the U of T create an interna-tionally-recognized, quality school to trainyoung people for our country.

In the beginning, my wife Sandy and Igave money to help create the dream, butwhat’s happened is that the tables have turned— the Rotman School of Management hasprovided us with pride and satisfaction inthe School’s reputation for excellence.

Sandy and I have developed a sense ofaffinity and connection with everyone associated with the School — students,alumni, faculty and staff members, and welook forward to every single interaction that occurs, not only at the School, but on the streets ofNorth America and Europe.The School has become a gracious custodian of our name and weare immensely proud of our association with it, and in particular with Dean Roger Martin andhis wife Nancy, both of whom share our dream and desire to make it come true.

— Joseph L. Rotman (MCom ‘60)


continued from page 7

When Your Name Becomes a Brand

minds. Branding is not advertising. Great brandsreach out with a kind of powerful connectingexperience that transcends the product. Greatbrands are personal.They become an integralpart of people’s lives by forging emotional con-nections. Coke is nostalgia. Coke tells stories.

Nike, Disney, IBM, Levi’s, McDonald’s,Sony, Xerox, Kleenex — these are the powerbrands. Each has created a distinctive product,consistent delivery, alignment between commu-nications and delivery, plus, perhaps mostimportantly, personality and presence. They

create an emotional bond that grows out oftheir personality.

Successful diversified brands must also findand constantly reinforce the unifying factorthat defines them.Virgin moved from airlinesinto financial services and cola drinks — ahighly diversified product line. But what’simportant about Virgin isn’t which productsthey produce.The “golden thread” is the idea ofVirgin as a fun and exciting company, which issomewhat of a rebel against the system.

Companies should be careful about how far

they attempt to stretch their brands.They needto do their homework, to talk to customersabout which product categories are a good fitwith their brand and which ones just don’tcompute. By moving into categories such ashardware and home furnishings, many believeAmazon has gone too far — and that its brandwill soon mean nothing more than “big”.

THE HEART OF THE ORGANIZATION

A brand is forever being refined by the entitythat brought it to life. It reflects the culturethat thrives in an organization and is reflectedby its employees.What is most critical is puttingthe brand at the heart of the organization.Thisis how an organization differentiates itself fromcompetitors and builds customer and employeeloyalty. In short, it’s how a firm competes anddifferentiates itself in the marketplace. RM

The Rotman School’s brand doesn’t exist in isolation — it also fits

within the ongoing parent brand of the University of Toronto. The

U of T brand colours and associated “Great Minds for a Great Future”

campaign were developed over the last four years by a team of

U of T communicators headed by Director of Public Relations Sue

Bloch-Nevitte, including Assistant Dean Kate Eccles and designer

James Ireland of Toronto’s James Ireland Design Inc.

“As we evolved the Rotman brand, we wanted to capitalize on one

of our most important brand assets — our position within Canada’s

leading research university,” says Eccles.

James Ireland continues to work closely with the Rotman School,

having inherited Rotman Management last spring and as the design spon-

sor for this year’s Canadian Woman Entrepreneur of the Year Awards.

“The graphic logo created by Bruce Mau fits very well within the

symbolism and messaging of the overall U of T brand. If I can get every

designer working for the University to think dark blue and matching

typefaces, we will be on the right track. Most importantly, design has to

be a collaborative venture,” says Ireland.

10 { S P R I N G / S U M M E R 2 0 0 1 }

What is most critical is putting the brand at the heart of the

organization. This is how an organization differentiates itself

from competitors and builds customer and employee loyalty.

Joining a Family of Brands

People are talking about...People are talking about...


“What’s behind the urge to merge? Economiesof scale, greater reach, new capabilities. Butthe path to consolidation is often a ‘boulevardof broken dreams’. Once they merge, 60 percent of companies underperform, while 80per cent never actually deliver the goods aspromised. So why risk it? Because the over-whelming perception is ‘grow or die’, and thetendency is to consolidate in order to grow.Sometimes, consolidation efforts fail because acompany ‘kisses a toad’, hoping to turn it into aprince — but a toad is always a toad. Poor execution is also a killer — culture clashes, lossof customer focus (Air Canada comes to mind.)Building a unified culture is not easy, and manydeals fail as a result. New models created bythe Internet are driving consolidation activity.Some of the brightest possibilities for conquestof size and scale lie in ‘E-enablement’, which isabout making the Web the central nervous system of your company. Cisco and Nortel haveshown how companies can succeed by bringingthe Internet to the centre of their business.

Doing so allows a huge company to act andlook like a corner store — giving the same personalized attention to customers. This is a new capability. The new model sees the convergence of Connectivity, Commerce, andContent (C3). The new shapers will use C3 totheir advantage: BCE, AOL/Time Warner,Seagrams/Vivendi. It’s all about bringing C3

together to serve your customer.The Internetallows a company to be what it needs to be to succeed in the New Economy: agile,responsive and lean.”— Michael Sabia, President, BCE andVice-Chairman, Corporate, Bell Canada

ith the unprecedented rate of change in the business world today, are mergers

and alliances an appropriate strategy for firms to remain globally competitive?

Leaders from some of the world’s top corporations examined this question at the

annual student-organized MBA Business Conference on January 26th at the Rotman

School. Following are some highlights of The Consolidation Paradigm:A Path toGlobal Competitiveness? For a complete list of speakers,see page 15.

T h e C o n s o l i d a t i o n Pa r a d i g mcompiled by Karen Christensen

Building a unified culture

is not easy, and many

deals fail as a result.

W

PHO

TOG

RA

PHY :

P ET

ERT

HO

MPS

ON

12 { S P R I N G / S U M M E R 2 0 0 1 }

“Relationship capital is what’s driving consoli-dation. Companies must figure out how to leverage the latest technology to build relationships with their customers. Customer loyalty is the single greatest concern for CEOstoday, because it brings big returns. But it isexpensive.The 80/20 rule holds true: compa-nies must provide the best possible (and mostexpensive) customer service to the 20 per centof clients who give them the most business.The key is to surprise people, to exceed theirexpectations. For instance, on a Web site, the

top customers might have access to options notvisible to other customers — things like a “Talkto someone” button.This is the way things aregoing on the Web. Companies must learn howto create, maintain and grow client relation-ships.They must learn to leverage technologyto provide better service to more people at alower cost. They must figure out what makestheir customers tick.At Personus, we recognizethat all of our employees have relationshipswith customers, so all of their ideas matter.The further you are from the customer, themore out of touch you are.When building rela-tionship capital is the key, you must empowerall of your employees to make decisions.”— Bobby John (BASc ‘97), ExecutiveVice President and Founder, Personus

The key is to surprise people,

to exceed their expectations.

“If a company wants to grow, it has two choices:build or buy. That is, grow organically bybuilding the business, or acquire another busi-ness. In evaluating potential acquisitions, themost important thing to examine during thedue diligence process is the company’s culture.Everything else can be in line — the financial

and legal aspects canbe drum-tight, butif the cultures don’tmix — the mergeris doomed to fail-ure. One of theshining examples ofhow to acquire suc-cessfully is Cisco,which has made

more than 50 acquisitions in the past sevenyears alone. In their quest to provide end-to-end service, their acquisitions have been cho-sen strategically, integrating technology andpeople seamlessly. When consolidationoccurs, if the cultures don’t mesh, the peoplewill leave. This is the key challenge for tech-nology companies, because their value is basedon people. Although you can never know forsure what will mesh, you can definitely tellwhat won’t. Careful site audits must be per-formed, because what is acceptable at onecompany might not be at another — forinstance, open concept environments, dogswalking around the office. The minute theclosing takes place on the deal, the integrationof cultures begins. And it must be done swift-

ly, hooking up the tech-nologies and people of thetwo companies as quicklyas possible.”— Andrew Muroff,President, SoftQuad

Although you can

never know for sure what

will mesh, you can

definitely tell what won’t.

“At Liberty, we wanted to make sure wedidn’t lose what made us successful as theresult of our growth. And it all camedown to people. Retaining your peopleand investing in them is absolutely critical.However, you have to recognize that thingschange and evolve, so you have to learnfrom each experience.You have to developthe processes and tools to repeat past suc-cesses so that your future endeavors aremore predictable in terms of the output.”— Larry Baldachin (EMBA ‘94),President, Liberty TechnologyServices Ltd.; Rotman e-ExecutiveIn Residence

“Back in 1994, it became clear that CIBCWorld Markets had grown as much as it couldin Canada, a country that represents less thanthree per cent of the world’s capital markets.So we came up with a new strategy, with somechallenging goals: The integration of corpo-rate and investment banking, the growth and

integration of our merchant banking expert-ise, and a concerted push into the U.S.TodayCIBC World Markets is a full-service NorthAmerican investment bank with a tradition ofsuccess in Canada and a fast-growing trackrecord in the U.S. For example, in the secondhalf of 2000, we placed third overall in numberof equity financings in the U.S. — quite anaccomplishment for a platform that is abouttwo years old.”— David Kassie,Vice-Chairman,CIBC, and Chief Executive Officer,CIBC World Markets


“Leadership is at the very core of successfulconsolidation. That’s why there is often achange in leadership at the top after amerger or acquisition, because you needpeople that can implement the change ofculture - or do whatever has to be done tomake the business succeed.”— Teri Brown (EMBA ‘88),National Director, Growth &Development,Watson Wyatt

“There are currently 67 mutual fund companiesoffering more than 3,000 funds in Canada.Thisis far too many. There are few new clients —the number of people who own funds will notgrow. I believe that in the future we’ll see fouror five mutual fund companies dominate themarket. Global, shared dominance is the ulti-mate goal for our organization. Unless a mutualfund company can find a special niche, it mustgrow or be acquired.You have to either be agreat manufacturer of mutual funds or a greatdistributor, but you can’t be good at both.Youmust differentiate yourself from your competi-tors. At AIM, it’s how we treat people in ourbusiness relationships that counts. We get

involved in ‘coopetition’ — we talk to ourcompetitors about how we can make the piebigger for all of us and grow the industry.”— Ken McCord, Senior Vice President,Investment Strategy & Communication,AIM Funds Management Inc.

Unless a mutual fund

company can find

a special niche, it must

grow or be acquired.

It became clear that CIBC

World Markets had grown as

much as it could in Canada…

14 { S P R I N G / S U M M E R 2 0 0 1 }

“Three types of options can be embedded instrategic acquisitions:1. Growth options — which might allow a

company to undertake activity a later datethat would contribute to growth. Nortel’sacquisition of Bay Networks demonstratesthe value of growth options.Another exam-ple is Seagram’s entry into media space.

2. Flexibility options — whereby a companyacquires an asset that can be used in differ-ent ways. This provides flexibility down-stream for the company to diversify orrealize value out of that asset in differentways. These options usually increase invalue in an uncertain marketplace. Anexample of flexibility options is the acquisi-tion of life insurance companies by banks.They don’t know for sure what the regula-tors are going to allow over time. But bybuying life insurance companies, they’veacquired an option to leverage data base

mining and/or integrated retail marketinglater on if allowed.

3. Divestiture options — the most basic typeof options, these are embedded in mostacquisitions. An example is the way inwhich Nortel is selling off pieces of manyof its acquired businesses (mostly manu-facturing). When making an acquisition,it’s important to consider whether it is ‘aone-time bet’, or the first in a series of sev-eral bets that are going to be key to yourcompany’s strategy. Incorporating option

values into acquisition decisions is a goodway to understand the potential to createvalue through those future options.You’restill left with the problem of how youexercise those options to create value. Ifall you do is pay for the potential, but you don’t manage your acquisitions as aportfolio of options, then you increaseyour chances for failure.”

— Kenneth W. Smith, Senior VicePresident, Cap Gemini Ernst & Young.

When making an acquisition,it’s important to consider

whether it is ‘a one-time bet’, or the first in a series of bets

that are going to be key to your company’s strategy.

“The success of Research in Motion in the two-way data market is a direct result of the strategic partnerships we’ve developed. Prod-ucts like our handheld, wireless e-mail device,“Blackberry”, have allowed us to become anenabler for our partners, which includeIBM/Lotus, Compaq, and AOL. Our strategyis to enable the wireless component of theirofferings, not to contend with their core busi-nesses.The benefit to us is the instant credibili-ty of association with these companies as wellas the ability to leverage their considerableresources and channels.”— Dennis Kavelman, Chief FinancialOfficer, Research in Motion Ltd.

Our success is a direct result

of the strategic partnerships

we’ve developed.


SPEAKERS:

Larry Baldachin (EMBA‘94) is President andfounder of Liberty Technology Services Ltd. Lastfall, he was elected to the Board of Directors ofthe Rotman Alumni Association and was recentlyappointed e-Executive in Residence at the RotmanSchool. For details, see page 35.

Teri Brown (EMBA‘88) is National Director,Growth & Development at Watson Wyatt.

Jim Coutts (EMBA‘99) is President of Coutts &Co. Inc. Last Fall, he was elected to the Board ofDirectors of the Rotman Alumni Association.

Bobby John (BASc‘97) is Executive Vice Presi-dent and co-founder of Personus, which offersstrategic planning, user experience design, appli-cation development, and logistics management.

Marianne Harris is Managing Director ofInvestment Banking and Head of the FinancialInstitutions Group Canada, Merrill Lynch.

David Kassie is Vice-Chairman, CIBC, andChief Executive Officer, CIBC World Markets.He is also Chairman of CIBC Capital Partners.

Dennis Kavelman is Chief Financial Officer atResearch in Motion, a world leader in the mobilecommunications market whose products includethe the BlackBerry™ wireless e-mail solution.

Ken McCord is Senior Vice President, Invest-ment Strategy & Communication, AIM FundsManagement Inc.

Andrew Muroff is President of SoftQuad, aninternationally-recognized developer of XMLenabling technologies and commerce solutionsfor e-business.

Michael Sabia (BCom‘76) is President of BCEand Vice-Chairman, Corporate of Bell Canada.

Kenneth W. Smith is Senior Vice President,Cap Gemini Ernst & Young. He heads up theStrategy Practice in Canada.

Jim Coutts (MBA ‘99) moderated a panel discussion aboutthe challenges of doing business in today’s increasingly glob-al environment. Participating on the panel were Class of2001 MBA candidates Belinda Dusbaba, MannySingh,Scott Rutherford,Denise Yu,Helen Pogrin,and Norm Jackson (not in photo), all of whom haveaccepted jobs outside of Canada.

“With the Daimler/Chrysler consolidation,the cultural fit was very difficult. Theyoverestimated their targets and the markethas punished them severely. Especially inthe last year, the market has been veryhard on companies that don’t meet theirtargets after an acquisition. Because ofthis, you see a lot of senior managementteams pulling back. In an auction environ-ment, companies focus on how much theycan pay, whether they can win, what theycan tell the market about what synergiesthey will achieve. It’s usually done in a rel-atively short time frame, and is very com-petitive.When it comes to actual integra-tion execution, the day after a deal is made

and the teams are merged, they startimplementing it. This is when all thepotential problems of consolidation — thecultural aspects, the ‘soft’ aspects — cometo the fore.”— Marianne Harris, ManagingDirector of Investment Bankingand Head of the FinancialInstitutions Group Canada,Merrill Lynch

The market has beenvery hard on companies

that don’t meet their targets after an acquisition.

16 { S P R I N G / S U M M E R 2 0 0 1 }

BRANDING CANADA:it will take more than a maple leaf

You know the old joke: in Heaven, thefood is French, the police are British,the lovers are Italian, the engineers are

German and the whole place is run by theSwiss. In Hell, the food is British, the policeare German, the lovers are Swiss, the engineersare French and the whole place is run by Italians. Like it or not, we have images ofcountries, sometimes favourable, sometimesnot. These images, or “country brands”, cangive countries an advantage — or a disadvantage— in international trade, and branding coun-tries has become a hot concept.Yet the processof branding is much more comprehensive thanmost people appreciate.

Country branding is hot for good reason.There is ample evidence that the country aproduct comes from can be a strong influenceon consumers. One only needs to think of Italian suits, French champagne, German cars orJapanese cameras to appreciate the association ofquality with specific countries for specific typesof goods. Study after study shows that countryof origin can influence attitudes to products ingeneral from that country, to product classes,and to specific brands. Country of origin caneven be a stronger influence on consumers thandetailed information about the product.

Similarly, investors can be influenced bycountry brands.Whether a country even makes

it onto investors’ radar screenswill be influenced by their intu-itive beliefs about its investmentclimate. Its reputation for inno-vativeness, the quality of itsworkforce and its quality of life,along with economic factors likegrowth and taxes, will all influencewhether money is invested or plantslocated there.

Another way of putting this is: ifinvestors don’t have a better reason toinvest in Canada, we will be forced to givethem tax breaks, at great cost to the economy.So having a positive international image isessential if we want to be anything other than abargain-basement location.

Unfortunately, Canada’s reputation abroadleaves something to be desired. Last year, theCanada Asia Foundation conducted a survey ofAsians’ opinions of several countries.To Asians,Canada is a land of beautiful lakes and courteous,friendly people, but it does not produce high-quality products or have advanced technology.In the minds of the Asian business community,at least, Canada is a great place to retire, but notsuch a great place to do business. Ouch.

The same goes for Canada’s image in theU.S. Many readers will be familiar with RickMercer’s weekly “Talking to Americans” spoof

on CBC’s This Hour Has22 Minutes, in which he plays up Americans’ignorance of all things Canadian.The parody isuncomfortably close to reality. According to astudy conducted for the Department of ForeignAffairs in April 2000, Americans have littleinterest in Canada. It is primarily seen as a pristine wilderness, populated by nice, laid-back people — perhaps too nice and laid backto be successful in business.

These results have created concern in government circles, and branding has come to the attention of Rideau Hall. In the recent Speech from the Throne, GovernorGeneral Adrienne Clarkson articulated the government’s intention to launch a brandingstrategy to raise awareness of the advantages of

Rotman Marketing Professor David Dunne says

investing in our brand will give Canada a

competitive advantage in the new world order.

ILLUST

RAT

ION:©

GR

EGS

TEV

ENSO

N/I2

IART


investing in Canada. International Trade Minister Pierre Pettigrew recently said that “we must imprint the maple leaf on theconsciousness of the world as a symbol of lead-ership in the new economy”. Industry MinisterJohn Manley was also quoted as saying thatCanada’s international image is hurting itschances of attracting high-tech investment,at least from the U.S.

Yet all this talk of branding is not a panaceafor Canada’s ills. Done properly, brandingrequires a long-term perspective and strategicthinking. Communicating Canada’s advantages,by imprinting the maple leaf everywhere or byother means, is only a small part of the process.Building a brand is an all-encompassing effortthat tries to ensure that every target investor orcustomer has the right kind of experience ofCanada. In other words,you have to walk the talk.

Several countries have climbed on thebranding bandwagon, some at great cost. Inthe U.K., “branding Britain” has been the subject of public discussion for a number ofyears. Research over the years has shown thatBritain’s image abroad could be compared tothat of a gentlemen’s club: “Aging, elitist and a bastion of conservative and traditional values”, in the words of one researcher. Britainwas no longer relevant to the values of thepresent generation.

While the British government’s brandingefforts are laudable, they are unlikely to makemuch difference. To begin with, attitudes tocountries can be very firmly entrenchedbecause they have been formed and reinforcedover centuries.This is not helped by many yearsof advertising associating Britain with royalty,beefeaters and quaint pubs. To expect a newname, logo and advertising to reverse this is tocredit marketers with almost magical powers.

More importantly, people believe Britain isstodgy because this fits with their experienceor that of people they know. If travellers to theU.K. actually find it aging and elitist, or if theyencounter British companies who appear to fitthis description, their prejudices will be rein-forced.To make a real difference to attitudes,the British government needs to do more than

say that Britain is modern and upbeat: it needsto demonstrate it.

Advertising agency Ogilvy and Mather has aterm for this:The 360-degree brand.The ideais that every experience the consumer has ofyour brand, positive or negative, builds up tosome overall evaluation of the brand. So a company needs to control (as much as possible)every point of contact between its brand andthe consumer. Starbucks, for example, has carried its brand values of “creating upliftingmoments for people every day” into everyactivity it undertakes as a company, from theroasting and blending of coffee beans to theselection of retail locations, to the choice ofmusic played in the stores.

This is a tough challenge for countries, andan especially tough one for a country as diverseas Canada. Nevertheless, it has been done.Thesuccess of Ireland’s economy in recent years isnot, as many assume, due to its tax incentives,but to its long-term strategy of improving itsinvestment climate. With a highly educated,English-speaking workforce, cooperationbetween government and unions, and a desir-able location close to the continent, Ireland’sbrand image has flipped from “impoverishedand backward” to the “Celtic tiger”, the mostdynamic economy in Europe.

For a Canadian branding strategy to work, thefocus needs to be on creating a new reality ratherthan “marketing” Canada better. Since just aboutevery country wants to be seen as innovative,

Canada, to be successful, will need a concertedeffort not only to improve, but to be recog-nized as better than its competitors. Specifically,Canada should keep the following guidelines inmind as it pursues its branding strategy:

Understand Target Customers: Like allsuccessful brands, we need to start with anunderstanding of who our target market is, andwhat they need and value.Attitudes to Canadavary considerably around the world, and different regional strategies may be requiredto change them.

Articulate a Value Proposition: Beclear on what we want to represent, how it fitswith target customers’ needs, and how itmakes us better than competitors. Thisrequires agreement between different levels ofgovernment and industry sectors — a majorchallenge, but a worthwhile one.

Focus on Quality, not “Marketing”:Develop products, and investment programs,that meet target customers’ needs. Use advertising and promotion to bring them totheir attention.

Be Consistent: Stay with the program:don’t make radical changes over time, andmake sure all communications deliver the samefundamental message.

Canada must invest in its brand if it wants toremain a player in international trade andinvestment.To do so, we need a comprehensivestrategy and a clear, long-term vision – not justan advertising campaign. RM

Is Canada a brand yet?

Obviously not. The secret of any successful brand is that it instantly projects a simple but accurate image.

Take the latest TV series announced by Vancouver’s Lions Gate Films: “Who Wants to Date A Hooter

Girl?” Not much doubt about the brand on that dubious brain-wave. Canada? Try to define it.

Sir Wilfrid Laurier, our greatest prime minister, had a shot at it in 1911. “I am a Canadian,” he pro-

claimed. “Canada has been the inspiration of my life. I have had before me a pillar of fire by night and

a pillar of cloud by day, a policy of true Canadianism, of moderation and conciliation.” Huh? Maybe

the novelist Robertson Davies got it right when he wrote: “You don’t love Canada; you are part of

Canada, and that’s that.” In fact, even if Canada is not a brand, it does brand you, because you know

you’re not anything else, and you fight like hell to preserve your ill-defined identity.

— Peter C. Newman (BA ‘50, MCom ‘54), Senior Contributing Editor, Maclean’s

18 { S P R I N G / S U M M E R 2 0 0 1 }

Question: What do sweatpants and hiking boots have in common withmultivitamins and plane tickets? The

answer: nothing — but Roots, the successfulCanadian activewear retailer, is betting you’llbuy theirs anyway.

To the surprise of many of its customers,Roots recently announced plans to expandfrom its familiar product lines into Roots Multivitamins and Roots Air. And they aren’tthe only ones moving into uncharted territory:Amazon.com isn’t just the planet’s biggestbookstore anymore — it now also sells musicCDs, health and beauty aids, hardware, elec-tronics, and toys online.

What could possibly make a successfulcompany take such a gamble? Do such brandextensions make sense? And if so, are therelimits to how far a brand can be stretched?

When extending a brand name into a newproduct category, a firm is banking on severalthings. First, that it will get some awarenessfor its new products “on the cheap,” avoiding

one of the most costly steps in establishing anew product (getting its name “out there”).

A second potential draw of brand extensionis that the new product’s perceived quality is‘signaled’ by the established brand’s equity,which reduces the consumer’s risk of tryingthe new product.What some companies over-look is that consumers won’t try the new prod-uct unless there is a basis for a ‘signal’ from theold product to the new one.

In the case of Amazon.com, the ‘new prod-ucts’ are really just an extension of existingservices. Why should Amazon.com, the elec-tronics vendor, perform like Amazon.com, thebookseller? Presumably, because “retailing isretailing.” Whether you’re selling books orelectronics, the basic processes are the same,and if you’ve mastered one type of retailing,you’ve mastered the other — at least this isAmazon’s viewpoint.

Recent research suggests another basis forthe signaling effect: the possibility of the newproduct damaging the brand by not living up to

the inherited standards, hurting other productsbearing the same brand name, and forsakingthe opportunity to leverage the brand’s equity in future extensions. In other words,brand equity can be transferred from oneproduct to another if there is a possibility of “collateral damage” from poorly executedtransfers: Effectively, the possibility of collateral damage is a “bond” posted by thebrand to assure consumers that the firm is notextending the brand ‘willy nilly’ — that adequate care has been exercised by the firm tomake sure that the new product upholds thebrand’s reputation.

One example of collateral damage from afailed brand extension is the case of the Audi5000. In 1986, it was alleged that the car had“sudden acceleration” problems. Not only didAudi 5000’s sales suffer for several years, butthe entire Audi product line suffered as well— despite the fact that it was later proven thatthe “sudden acceleration” was actually causedby driver error.

when brand leveraginggoes too far

Brand leveraging is big news, says Manny Rotman Chair

in Marketing Sridhar Moorthy. But companies must tread

lightly into uncharted territory, or they risk wiping

out years of hard-earned brand equity.

PUSHING THELIMITS:


An example in which no collateral damageresulted from a failed brand extension is thecase of Crystal Pepsi, introduced in 1992 as a“clear cola” version of the well-known softdrink. Although the new product didn’t lastlong, its failure doesn’t seem to have hurt anyof the established Pepsi products.

These two examples suggest an importantlesson: Failure of a brand in one product

category will hurt the brand in another prod-uct category only if

1. there is some common technology ormanagerial practice underlying the twoproduct categories, linking quality in onewith quality in the other, and

2. there is some uncertainty about thebrand’s performance in the other prod-uct category.

In the Audi case, consumers could reason-ably expect that a common technology pervades all Audi cars. And consumers cannever be entirely sure about car safety. In thecase of Pepsi, however, the second conditionwas not met: consumers could easily verifythat the old Pepsi products still performedaccording to expectations.

In the case of Roots, both the multivitaminand the airline will no doubt benefit from the“free” name recognition they are inheriting. Butwhy should a consumer expect Roots Air orRoots Multivitamins to perform as well asRoots shoes or Roots jackets? Managing an air-line (or multivitamins) business is significantlydifferent from managing an apparel business.There are few if any “technological linkages”involved. In fact, the companies “making”Roots Multivitamins and Roots Air are onlylicensing the Roots name.

If Roots Air or Roots Multivitamins performpoorly — say, the airline doesn’t live up to itsservice commitments — will this damage theother products bearing the Roots name? Ibelieve this scenario is closer to the CrystalPepsi scenario than the Audi 5000 scenario.Established Roots products are not going tosuffer from the possible failure of Roots Air orRoots Multivitamins. By the same token, theyare not going to lend much brand equity to theairline or the multivitamin either.

In the case of Amazon.com, however, thereis a real possibility of collateral damage fromthe failure of any of its myriad retail businesses.And paradoxically, that is what makes thebrand extension work in the first place.

Are there any reasons not to extend abrand? Consider the following examples. InNorth America in the mid-1980s, HondaMotor Company introduced Acura as a newbrand name in the car category, even though it already had a successful brand in Honda.Similarly,Toyota introduced Lexus, instead ofextending the well-known Toyota brand name.What might be the reasons behind Honda andToyota incurring the tremendous expendituresthat they did to establish new brands?

In this case the answer is positioning differ-ences between the old brand and what the newcars were to stand for. For brand extensions towork, a common positioning strategy shouldunderlie all products and services bearing thesame brand name. Otherwise, one manifesta-tion of the brand will be working at cross-purposes with another, weakening the entirebrand. Even though Honda was a quality brandname, it stood for “functional transportation.”Ditto for Toyota. These new cars, however,were to be positioned as “luxury” automobiles.And in order to accomplish that these car companies had to start with a clean slate.

How far can a brand be extended? If wewere only concerned about getting “awarenesson the cheap,” there would be no limit. Butthe possibility of collateral damage from weakextensions and the difficulty of maintainingconsistent positioning over a large number ofdisparate products puts a practical limit to howfar one can go. Ultimately, a brand extendedover many products becomes unwieldy, inco-herent, and a shaky house of cards. RM

Ultimately, a brand extended

over many products becomes

unwieldy, incoherent, and

a shaky house of cards.

20 { S P R I N G / S U M M E R 2 0 0 1 }

BRANDING

QSome people feel that the focushas shifted from the “uniqueselling proposition” (USP) to the

“unique communication proposition” -whereby the message creates the benefitof the product in the mind of the con-sumer. Is there too much emphasis onthe idea behind the product these days?

AMcLuhan used to say that “The onlypeople who actually read the ads arethose who have just bought the prod-

uct”. The whole process of advertising andbranding is and always has been guided (as hasthe whole economy) by emotions.

Reading the ad after rather than before buyingthe product is the act of recognition, makingsense of the object because it is seen again in adifferent light. Reading the ad is the act of closure with the object.The relevance of whatis said in the ad is quite beside the point, sincethere is never enough room in the copy to doanything else but give an idea about it. Is themessage the medium in advertising ? Absolutely.Advertising is generally quite innocent of anycontent or substance. Its’ job is not to informbut to create desire.

There is as much danger of inflationary disproportion between the real thing and its representation in the ad as there is in aneconomy that rarely stops to consider issues ofproductivity when giving value to process andinvesting in it. As for quality, we get thatthrough the reality checks of competition.

Quality sells quality — not advertising.— Prof. Derrick De Kerckhove,Director,The McLuhan Program in Culture and Technology,University of Toronto

Karen Christensen poses key questions to select

Rotman alumni, faculty, students and friends.

The whole process of

advertising and branding

is, and always has been,

guided by emotions.

Prof. Derrick De Kerckhove

question period


AIn the future, emotional and even spiritual values will be attached toproducts and services.The market for

feelings will eclipse the market for strictly tan-gible items. Nike, for example, sells nearlythree-quarters of its running shoes to non-jog-gers, because they evoke dreams of eternalyouth, fame and triumph. During the 21stCentury, the demand for such “fairy tales” willexpand faster than any other market segment.— Peter C. Newman (BA ‘50, MCom ‘54),Senior Contributing Editor, Maclean’s

AAs a result of technological advancesand economies of scale, most productshave become highly competitive both

in quality and price. One way to address thisnew paradigm is through branding strategiesdesigned to create strong consumer associa-tions with a particular brand. However, Iwould argue that the USP remains a strong differentiator, especially when it creates a significant perception of difference between aproduct and its competitors.The next step is toleverage the USP through its brand identity,which includes product scope and attributes,quality/value, uses/users, brand personality,customer/brand relationships, visual imageand metaphors, and brand heritage. In thelong-term, a strong USP cannot provide astand-alone answer.

For instance, “ We make products that makebabies feel good” is a strong value propositionadvocated by the Johnson & Johnson baby careline. It involves not only the functional benefitsof their products, but also significant emotional

content.And yet, as much as this proposition isstrong and appealing, it cannot stand alone. It is little more than good bait to attract newaudiences — or a reinforcing message for exist-ing ones. However, this USP is reinforced bythe brand’s heritage and by the power of theiconic Johnson & Johnson logo, a symbol oftrust, safety and quality, which has remainedconsistent for over a hundred years.— Diana Flaminzeanu, EMBA 17,student in “Branding in the NewEconomy”; Director, Program Development, Health Care ExecutiveEducation, Rotman School

AI do not believe that USPs or UCP’shave usurped the importance of qualityproducts. More than ever, quality is

the minimum price of entry into most, if notall, competitive markets. Consumers may notexplicitly request quality, but they certainlyexpect it. In many examples of great brands,the value proposition is in large part responsiblefor the brand’s success. Although the valueproposition largely communicates intangibleattributes responding to targeted consumerneeds, it also references and represents theactual product or the service being communi-cated. For example, an integrated message inthe value proposition of a Pontiac vehicle is to“build excitement”, and the products in thePontiac lineup reflect these attributes throughtheir styling and performance. Quality is a given.Drivers want excitement and performance,but they still expect the utmost quality as well.

Perceived quality may in fact differ fromactual quality for a variety of reasons: a previoushistory of poor quality; achieving quality onattributes that are not important to the con-sumer; or consumers not knowing how to

properly evaluate quality for a product. Inthese situations, a clear and powerful valueproposition helps to ‘bridge the gap’ and formalize the expectation. Nonetheless, oncethe quality cues are understood and experi-enced, actual quality is expected and will notbe superseded simply by a strong communica-tion of the value proposition. Quality willalways be one of the primary elements forbuilding brand equity.— Esther Bucci, EMBA 17, student in “Branding in the New Economy”;District Sales Manager, GeneralMotors of Canada

QHow is branding different onthe Web?

AAdvertising, promotion, public relationsand most other aspects of corporatecommunications are archaic concepts.

They exploited unidirectional, one-to-manyand one-size-fits-all media to communicate“messages” to faceless, powerless customers.In the digital economy, the business web iseclipsing the vertically-integrated corporationas the basic tool to create customer value andshareholder wealth. Companies are using theInternet to mesh their energies with suppliers,distributors, and customers. Products are nowmass customized, service intensive and infusedwith the knowledge and the individual tastes ofcustomers. Customers are using the Internetto co-create products and services. Productsare becoming experiences. The old industrialapproaches to product definition and marketingdie. The business web upends control. Cus-tomers have access to near-perfect information

The market for feelings

will eclipse the market

for strictly tangible items.

Peter C. Newman

22 { S P R I N G / S U M M E R 2 0 0 1 }

about products and power shifts towards them.Customers, no longer external entities, par-ticipate in a firm’s b-web through multidirec-tional, one-to-one and highly tailoredcommunications media.They now control themarketing mix, choosing the medium and themessage. Rather than receiving broadcastimages, they do the casting. Rather than gettingmessages from earnest PR professionals, theycreate “public opinion” online with one anoth-er. The brand is changing from an image or“word in the mind” to a two-way relationshipwhere real value becomes much more impor-tant.You can’t make garbage smell like roses inthis new environment.

Internet-enabled relationships are nowassets. This “relationship capital” accumulatesand provides a new foundation for marketingand sales revenue. A firm’s ability to engagecustomers, suppliers, and other partners inmutually beneficial value exchanges determinesits relationship capital.While the virtue of deeprelationships was always self-evident in theory,in reality it wasn’t practical. But now the ubiq-uitous, cheap and interactive Net, coupledwith enormous low-cost databases, enablesproducers to develop a meaningful direct relationship with each customer. Sellers andbuyers have ongoing dialogue.As the power of

mass communications declines, replacedby the power of the interactive media andtherefore the consumer, brand loyaltiesfor informed and value-conscious pur-chasers are based increasingly on value.— Don Tapscott, Chair of Digital4Sight and co-author of DigitalCapital:Harnessing the Power ofBusiness Webs

AOn the Web, brand loyalty is rooted inproviding customers with an outstand-ing experience and lifestyle change

which they cannot get anywhere else. Buildingan online brand involves a complex set ofexperiences and interactions between compa-nies and their customers. In order to fulfilltoday’s online demands, companies must suc-cessfully extend their customer experience andbrand across the Web. Those that manage toeffectively transfer both their business modeland their brand strategy to the Web will bene-fit the most.

A brand and its accompanying experienceand lifestyle are developed gradually over time.The recent surge of dot-com companiesattempted to accelerate the time-frame inwhich a brand is developed, seeking to buildloyalty in a matter of months rather than years.In all but a few notable cases, they failed.Thefirst-mover advantage for dot-com brands hasturned out to be similar to the first-moveradvantage in a game of chess: Being the firstmover on the Web is important, but it hardlydetermines the outcome of the whole game.The principles of building a powerful brandhave not changed. Time, market research,adaptability, quality service and the commit-

ment to create a world-famous customer expe-rience every time — these remain the founda-tion of every successful business. The mostrecognized brands online today were builtaround a strong and established business modeland an experience that actually changed thecustomer’s lifestyle.— Nigel Stokes (MBA ’85),Chairman, President and CEO,DataMirror Corporation

QIs it possible to create a ‘sus-tainable identity’ in an environ-ment where companies must

continually reinvent and revitalize themessages behind their brands?

ASustainable corporate brands are rarebecause we live at a time when changeis measured in nanoseconds. Shift

happens.The smart companies will attempt tocreate a sustainable quality of the environmentwithin which their brands keep being modern-ized.That’s about the best they can expect. Cus-tomer and client loyalty must be earned. Daily.— Peter C. Newman (BA ’50,MCom ’54), Senior Contributing Editor, Maclean’s

ACompanies like Federal Express,Harley-Davidson and Disney can anddo create “sustainable identities”.They

all have many competitors offering qualityproducts, yet are able to command a premiumin the marketplace year after year. In the midstof change, the best companies identify and con-sistently perform the key activities that lead to

(Customers) now control the

marketing mix, choosing the

medium and the message.

Don Tapscott

PHO

TOG

RA

PHY:E

DW

AR

DG

AJD

EL

business and branding success. They under-stand the unique value propositions they offer,and develop business systems to support andreinforce those value propositions.— Gary Ryan, EMBA 17, student in “Branding in the New Economy”;Director, Rehab and Paramedical Services, Southlake Regional HealthCentre (Newmarket)

QMany companies think theyhave a brand when what theyactually have is name recogni-

tion. When does a name become abrand?

AA brand has a distinct culture associatedwith it — an experience for the cus-tomer or owner.The brand tells a story

about the product, whereas a name is just atitle, for phonetic, visual and cognitive appealthat facilitates recognition. A name becomes abrand when it has a unique image associatedwith it that sets it apart from its competitors.When that image comes to life, the brand hasequity. How much depends on how strong,consistent and memorable that brand identityis. Brand creation can be achieved through an

integrated marketing communicationsapproach, which effectively creates the storybehind the name, heightens consumer involve-ment and builds equity for the brand.— Lila Janakievski, MBA Candidate2001;Vice President, Rotman Marketing Club

QWhen firms form alliances andbrand consolidation occurs,what makes for a good part-

nership?

AGood partnerships in anything requirea number of things to succeed: mutualappreciation for the other’s strengths;

recognition and acknowledgment of weaknesses;willingness on both sides to really make thecommitment; and, as the inevitable conflictsemerge, an ability to remember the initial rea-sons for the decision to partner. All of thisapplies to firms forming alliances and the con-solidation of brands. Ideally, companies wouldhave similar values, brands would have similarperceptions in the market.The classic ‘1 plus 1equals 3’ should be present, and it should beeasy for the consumer to see a natural connec-tion between the firms or products that benefits

the customer, not just the firms.The inten-tion for alliances is always to improve thesituation for both firms. But brand consoli-dation can be difficult for those who are notdirectly controlling the actions. Animproved situation for the firm will notnecessarily be perceived as an improved

situation for the people who work there. Manyemployees have difficulty with change and willadopt an “us vs. them”, “before vs. now” viewof things. Since the employees of the firm mustconvey the value of the consolidated brand tothe customer, it is crucial that they believe in thevalue of the alliance.As politics and stress factorsemerge during partnering, there must be aforum for addressing employee concerns quickly- before they grow into insoluble differences.—Jane Tattersall, President,TattersallSound Inc.;Winner, 2000 CanadianWoman Entrepreneur of the YearAward for “Impact on Local Economy”

QWhat are some of the specificthings a company can do toimprove its online experience

and thereby enhance its brand?

AImproving the online experiencemeans providing relevant content andconvenience for users, whether they

are searching for information or shoppingonline. In Canada, the likelihood of developingbrand loyalty on the Web increases if the offering is customized for Canadian consumers.Too often, especially on Canadian versions ofU.S. sites, the content appears to be specific toCanada, but as soon as you start to drill down,what you find is U.S. content. Relevant Canadiancontent will go a long way to building ongoingrelationships.

A good site lets first-time visitors identifythemselves and begins to build a relationshipwith a helping hand: Extra navigational assis-tance along the way, clear policies and serviceguarantees, and perhaps special promotionaloffers. Since many consumers continue to harbor security and privacy concerns, onlineretailers need to counter these through explicitguarantees, free credit card insurance, or byproviding a toll-free number that consumerscan use to call in their credit card information.

Though not directly part of the actualonline “purchase” experience, fulfillment is akey part of the overall experience.To address thecontinued dissatisfaction of Canadian consumerswith fulfillment, retailers need to provide fast,

As politics and stress

factors emerge during

partnering, there must be

a forum for addressing

employee concerns quickly –

before they grow into

insoluble differences.

Jane Tattersall


24 { S P R I N G / S U M M E R 2 0 0 1 }

reliable, and predictable service.They need tooffer various options for timing, delivery costand location, and be able to communicate thestatus of a consumer’s order at each stage ofthe process. Online retailers need to offer aclear and flexible return process - for example,by providing something as straightforward asan address label and return pouch with eachdelivery. Customer satisfaction alone won’tguarantee profitability, but satisfied customersare more loyal, buy more, and recommendsites they like to others.They help attract morevaluable customers, creating a continuing ‘vir-tuous circle’. Our research shows that con-sumers are purchasing more online than everbefore, and intend to purchase even more inthe future. Successful brands will recognize thepower of consumer satisfaction and focus onthe delivery of a robust end-to-end experiencefor both new and experienced shoppers.—Jill Black (MBA ‘80),Vice President,Support Team Leader,E-Commerce Practice,The BostonConsulting Group and Director,Rotman Alumni Association Board

ACustomers will only return to a site ifit offers a valuable, timely product,and if it is easy to navigate and inform-

ative. The best sites build customer retentionby providing links to other relevant sites, cal-endars of events, online discussions, access to

real people, and the opportunity to receive e-mail updates. But the lack of e-commerce prof-it in today’s markets is forcing companies tore-evaluate their Web strategies. Companiesare finding it increasingly difficult — and cost-ly, to keep driving customers to their site.Thischallenge promises to become ever greater aswireless mediums permit companies and con-sumers increased Internet access. Not all com-panies will have sufficient brand strength togenerate repeat visits. David Kenny andJohn Marshall, writing in the December,2000 issue of Harvard Business Review, recom-mend that those companies adopt “contextualmarketing” to build contextual customer rela-tionships, by delivering their message to cus-tomers at their ‘point of need’ rather thanfocusing on a destination Web site. Getting tothe right customer, with the right message, atthe right time may well define the next wave ofInternet strategies.— Gail Garland (EMBA ‘93) Partner,Meadwell & Associates and Director,Rotman Alumni Association Board

QWhat can companiesdo to keep their brandvital over the long haul?

ATo have longevity, a brandmust be customer-centric.You have to understand your

customer; make sure what you pro-vide meets a real need; ensure thatthe brand stands for something that isrelevant to the customer; and plan todeliver on that. It must be an end-to-

end process. It’s not just about acquiring thecustomer, or marketing the product — it’sabout the total experience the customer has.That’s what really defines your brand.You mustalso make sure that the brand lives within theteam that services your customer:The agentsthat answer the phone; the marketing personwho’s trying to acquire customers; the salesagent who contacts people to sign them up forthe service. Brand consistency throughout theend-to-end service is a huge challenge - andone companies must attack with rigor.The keyis to get your brand essence down to some-thing that is powerful both internally andexternally, and that allows people to rallyaround it, so that when it’s stated, it’s clearlyunderstood. For example, at FedEx — thebrand’s essence is very simple: “next day deliv-ery”. It is clear to the customer, and to theemployee — and they know what they have todo to make it happen.— Pat Tremaine (EMBA ‘97),Vice President, Bell Sympatico(see profile of Pat on page 40)

In Canada, the likelihood

of developing brand loyalty

on the Web increases if the

offering is customized for

Canadian consumers.

Jill Black

PHO

TOG

RA

PHY:JIM

ALLEN


QIn her book No Logo, NaomiKlein says that “the success ofbranding is about the failure of

social institutions. We are looking tobrands for poetry and spirituality,because we’re not getting those thingsfrom our communities or each other.” Isthis an overstatement?

AAbsolutely. But it is also a beautifulthought and a genuine outcry fromsomeone who demands an ethical

understanding of business practices. Our socialinstitutions are not so much failing as searchingfor their bearings. Much of the traditional asso-ciation between ethical behavior and religiousfaith has lost credibility without a definiteground for replacing it. In the sudden expan-sion of the material by the virtual, institutionslose ground and identity. Brands take over asthe signposts of meaning.At one time, the crosswas a brand. But there are too many differentpeople in the global family to impose the crossthe way the Christian world did in the past.Globalization is supported by brands andbranding the same way that the whole masseconomy was created and supported by TV.Globalization is generally misunderstood byeverybody - except by Thomas L. Friedman(author of The Lexus and the Olive Tree) - as anissue of the economy.The economy is unques-tionably relevant to globalization, but it is onlythe emergent dynamic of the exchangesbetween different cultures and people whohave lost the protection of distance and thenecessary time interval to make sense of theirnew context and their new dimension (that ofthe planet itself.)

Globalization is first and foremost an issueof psychology.The village isn’t any more “glob-al” today than it was in McLuhan’s time, but weare. Each one of us is global, something that the

protestors don’t understand any better thanthe protested. The success of branding is notowed to its commercial value, but to the factthat it provides a common global content forvery different people across the planet to makesense of their newfound togetherness.You canwear the same clothes and see the samemovies, so yes, it’s true, you share the samespace. Instead of cursing brands, NaomiKlein would do well to bless them, becausethey provide a cognitive interval to the collec-tive consciousness of everybody at once underthe relentless pressure of electronic implosion.We need globalism in the same way that wehave needed civism in the past.Without somecommon references, we would simply contin-ue to kill each other as we have done histori-cally. Our brands are virtual, like our minds.They are just as necessary globally as the wordswe use locally.They help us to make sense at atime when religious and political institutionsare indeed questioned - and for good reasons.Brands are shortcuts to reality, but they are notthe reality itself.As for the poetry and spiritu-ality of brands, that’s a lovely idea.They replaceprayer.— Prof. Derrick De Kerckhove,Director,The McLuhan Program in Culture and Technology,University of Toronto

QWhat are the some of thebranding challenges of thefuture?

ALooking ahead, we believe wirelesssmart devices will be a new mediumof commerce and thus the next media

in which to extend your brand. It’s not a mat-ter of ‘if’ but ‘how soon.’ Companies will befaced with trying to win customer loyalty in aneven more aggressive mobile commercemodel. Ultimately, it is critical to establish a

strong presence as a business first, providing avalue-added experience and a positive changeto the customer’s lifestyle. Companies can thenconvey the strength of that brand and experi-ence across all the media at their disposal,including the Web and wireless devices. Thiskind of adaptable, multi-channel brandingstrategy, together with a commitment to excel-lence in customer service and support, willhelp your business ensure long-term stabilityand success.— Nigel Stokes (MBA ‘85),Chairman, President and CEO,DataMirror Corporation

Wireless smart devices

will be the next media in

which to extend your brand.

Nigel Stokes

26 { S P R I N G / S U M M E R 2 0 0 1 }

complexity of bank brands

Twenty years ago, our financial system wasmuch less complicated than it is today.Its four pillars co-existed peacefully and

independently: Banks looked after our short-term financing needs such as chequing accountsand short-term loans; trust companies lookedafter long term needs such as real estate financ-ing; insurance companies managed the risks wewere exposed to — death, bad health and dis-ability; and brokerage firms looked after ourwealth management needs, such as equityinvestments, acting as our agents in the capitalmarkets. The system was easy to understandand to regulate, because each of the four pillarswas independent and had its own regulator.

Defining ‘what is a bank?’ was relatively easyto do. Banks were regulated according to sched-ules A and B of the Bank Act in terms of reserverequirements, capital adequacy, ownershiprestrictions, and deposit insurance. The sameregulations applied to all banks. The financialsystem was organized in this way to promotethe professionalism of the individuals operatingin it and to promote competition across thefunctional areas. It also helped reduce conflicts ofinterest and the potential for fraud.The policy

objective was to increase public confidence inthe financial system and the reputations of themajor players. That is, to help the banks buildtheir brands.

In the 1980s, investment dealers all but dis-appeared as independent companies.The RoyalBank bought Dominion Securities. ScotiaBankbought McLeod, Young, Weir and Co. CIBCbought Wood Gundy, and the Bank of Montrealbought Nesbitt Thomson.A few years later, thetrust companies, for all intents and purposes,disappeared.The last holdout — Canada Trust— was finally bought by Toronto Dominion.Before that, National Trust and Royal Trust hadalso fallen to the banks. Not content to offeronly two of the financial system’s four pillars,the Royal Bank tried to buy London Life,before being outbid.The rest of the insurancesector was off limits, since the companies werelargely owned by their policy holders. Howev-er, since they have now mostly “demutualised”,it is only a matter of time before they becomebank-owned as well.

Change was — and is — inevitable.Faced withtechnology that allows products to be duplicatedby different types of companies, policy makers

in Ottawa and Queen’s Park have allowed fortoday’s dramatic consolidation of the Canadianfinancial system. They have opted to sanctionmergers across different sectors of the financialsystem (‘conglomerate’), rather than mergerswithin sectors (‘horizontal’). And the severechallenges to bank brands, built up so method-ically over the years, are beginning to show.

We all know what branding means when wetalk about tangible goods. If you make Brand Xbeer, all you have to do is associate it withattractive people having a good time, and a significant number of consumers will chooseyour brand at the Brewers Retail.This is despitethe fact that, in taste test after taste test, mostconsumers are not able pick out their ‘favouritebeer’ from amongst its competitors. Similarly,we see stunning visuals of drivers off-roading intheir four-by-fours in the pristine wilderness,despite the fact that most four-by-fours nevergo off road, and seem to be used mostly to pickup cases of Brand X at the beer store!

However, financial services are not tangiblegoods, they are intangibles.And they’re not theonly ones.The electricity provided by Hydro,or the cable provided by Rogers, can both be

CIT Chair in Structured Finance Professor Laurence Booth explains

that by entering into non-traditional areas, banks are not only

complicating their identities, they may be risking their brands.

THE INCREASING

PHO

TOG

RA

PHY:JIM

ALLEN


seen as intangible services too.The difference isthat when you flip a switch and the light doesn’tgo on, or your TV doesn’t work, you knowthere’s a problem.Whereas when a conflict ofinterest occurs in the markets and your agentadvances his own interests instead of yours,you will likely never know. With financial services, most of the time performance is non-verifiable. The nature of the financial system as a market for mostly non-verifiablepromises is of course why it is so heavily regu-lated, and why regulators have been so loath tochange the method of regulation.

As the definition of ‘what is a bank’ getsbroader, bank brands become more and moresusceptible to damage. Last summer, RT CapitalManagement Inc. (previously Royal Trust), thevehicle for pension and institutional asset management services at Royal Bank of Canada,was involved in a scandal whereby senior tradersbought a few shares in thinly traded stocks at theend of the month so that the last closing pricewas at the higher ask price. The high closingprice effectively revalued their end-of-monthportfolio value, increasing their performanceand possibly their commissions.As the ‘motherbrand’, Royal Bank was forced to issue a publicapology, citing in part that “Over the past 130years, Royal Bank has built its business based onintegrity, trust, and always placing the interestsof our clients first.” After a barrage of negative

publicity, RT Capitalpaid a $3 million penaltyto the Ontario SecuritiesCommission, and beefedup its procedures for

supervising fund managers. But the story doesn’tend there.

In early March, Royal Bank announced itwould sell RT Capital Management Inc. RTChairman Michael Wilson, a former federalfinance minister, said last summer’s debacle wasnot the reason for the sale, claiming the companyis not equipped to give pension plans the serv-ice they need now that they can invest up to 30per cent of their assets abroad. “We have got tobuild up a foreign investment capacity quicklybecause clients are telling us that is what theywant. Clients are looking for something wedon’t have in this organization,” he told theToronto Star.

Banks continue to put their brand names onfundamentally non-bank operations. WoodGundy has become CIBC World Markets, andMcLeod,Young, Weir Co. has become ScotiaCapital.All are having to deal with the ensuingconflicts that emerge in visions and values.Anyone familiar with the chartered banksknows that the culture of traditional banking isrelationship-based. Although it may come as asurprise to some, the banks are genuinely interested in maintaining long-term relation-ships with their clients. Investment banking, incontrast, is deal-driven. Salaries are largelybased on commissions, and to generate commissions you have to cut deals. Puttingthese two diverse factions together and unifying

their vision with one brand is no easy task.Little wonder that there has been tension of late at the middle and senior levels in the banks.

The extension of a bank’s brand to cover a range of financial services has powerful implications. For consumers, it means that theunbiased professionalism that they have cometo expect from bankers has been extended intonon-bank areas.When a bank financial advisordraws up a financial plan and recommends taking out a home mortgage and investing in the equity market (as mine did) an unsophis-ticated client might assume that this is an example of the bank’s professionalism, ratherthan an obvious conflict of interest.When themarkets are strong, these problems may notsurface.However, as the markets slow and peoplelook for scapegoats for poor performance,the banks are in a vulnerable position: Brandextension can quickly lead to brand weakness.

What the banks need to do is strengthentheir brands, which in terms of financial markets, is synonomous with a reputation forhonesty, integrity, fair dealing, and putting theirclients’ interests first. Financial service firmsneed to be, and generally are, more ethical thanmost firms, since they live by their reputations,but it is time for the banks to put common poli-cies into place across all their functional areas.Reputations and bank brands are like chains:they are only as strong as their weakest links.Professor Laurence Booth holds the CIT Chair inStructured Finance at the Rotman School. He drinkscheap beer, drives a six-year-old Ford, and has neverbeen off-road in his life. - ed.

RM

Policy makers in Ottawa and

Queen’s Park have allowed for

today’s dramatic consolidation of

the Canadian financial system.

28 { S P R I N G / S U M M E R 2 0 0 1 }

of partnershipsTHEPOWER

The dozen police officers gathered at theRotman School were unaccustomed tomeeting at a university.Yet thanks to the

work of these members of the Ontario Asso-ciation of Chiefs of Police (OACP), a selectgroup of law enforcement professionals willbecome very familiar with the Rotman School.

This spring, about 20 hand-picked membersof the command teams from major policeforces across Ontario will trade their desk jobsfor classrooms and begin the Police Leader-ship Program, one of the latest ExecutivePrograms designed and delivered by the Rotman School.

The Police Leadership Program is part of aseries of executive-level learning opportunitiesthat the Rotman School has recently developedin partnership with a variety of industry associa-tions and organizations. Rotman’s partnersrange from Harvard University, to theHuman Resources Professionals Associ-ation of Ontario (HRPAO), to the OntarioAerospace Council. All share a commonvalue with the Rotman School — a recognitionof the importance of life-long learning forhigh-achieving professionals.

“Our plan is to grow our Executive Programportfolio by seeking like-minded organizationsthat want to work with a world-recognized

business school at Canada’s top university,”explains Michael Hartmann, ManagingDirector of Rotman’s Executive Programs.

The department now operates more than15 programs, including the Executive andGlobal Executive MBA degree programs,Understanding the New World of Health Care,advanced programs in human resources and

strategic change, and a growing number of customized and professional programs forindustry groups and individual corporate clients.

“What differentiates us in the executiveeducation marketplace is that we establish programs in partnership with organizationsthat are recognized leaders in their fields,” saysHartmann. “That makes us very selective and

John Mason shows how the Rotman School is adding value to

its Executive Programs by co-branding with recognized leaders

in a wide variety of fields, leveraging the reputations of

both partner organizations.

At the Understanding the New World of Health Care Program in 2000 were, from left, program director Dr. Miles Shore, Harvard Medical School; guest instructor Dr. David Naylor,

U of T Faculty of Medicine; and program directors Dr. Martin McKneally, Department of Surgery and U of T Joint Centre for Bioethics; and Rotman Professor Joseph D’ Cruz.


ensures a high-quality learning experience forour program participants.”

“By co-branding our programs, we areleveraging the high reputations of both theRotman School and the partner organizations,”he adds. “This builds stronger overall awarenessof both brands.”

Among the Rotman School’s first co-brandedprograms was the Advanced Program inHuman Resources Management, createdjointly with the Human Resources ProfessionalsAssociation of Ontario (HRPAO) more than adecade ago. Rotman Professor Dan Ondrack,the program’s academic director and a pastHRPAO vice president, designed the four-module curriculum with two main objectives:To ensure HRPAO members could earn theacademic qualifications for their HR certifica-tion, and to make the learning relevant toexperienced HR professionals.

“By working with the Rotman School, theHRPAO knows that program participants arebenefiting from the latest applied knowledge in our profession and that our members are achieving consistently-high standards intheir professional development,” says DanStapleton, CEO of the HRPAO. “Having theprogram designed to minimize disruptions toparticipants’ careers is another major advantageto our members.”

Understanding The New World ofHealth Care is a leadership course for seniorclinicians and top administrators. Harvard

University designed and delivered the originalprogram in the U.S. When Harvard decided to offer a Canadian version of its popular program, organizers chose the Rotman Schoolas its partner.

“We also wanted to ensure the programbenefited from the full range of expertise available through the University of Toronto andinvited the Department of Health Administra-tion and the Joint Centre for Bioethics to joinas program partners,” says Joseph D’Cruz,academic director of the health care programand professor of strategic management at Rotman. “The combination of Harvard and theU of T has attracted some of Canada’s top medical professionals to the program.”

Participants in the Global Executive MBA(GEMBA), the second-year option within theExecutive MBA program, also benefit frompartnerships Rotman has forged with academicinstitutions beyond North America.

In Europe, USW in Germany and LIMAKin Austria are Rotman partners that play hostto the GEMBA international study module thattakes place each spring. In addition, qualifiedstudents from USW and LIMAK, along withthose from Business School São Paulo (BSP),Rotman’s associate partner in Brazil’s largest city,join Canadian students in the GEMBA class tocreate a truly global learning experience.

Co-branding internationally puts the U of Tand Rotman names in front of an entirely newaudience, Hartmann says. “Executives are

proud to attend a program delivered with thestamp of the Rotman School and the University,”he says. “It adds legitimacy to their develop-ment because we have a world reputation foracademic rigour.”

Hartmann expects the Rotman brand willcontinue to share the stage, and the classroom,with leading organizations. “Co-branding is away to foster effective, long-term relation-ships.That helps our faculty develop a deeperunderstanding of business practices, whichleads to new research and insights into futuremanagement issues,” says Hartmann. “It alsoattracts today’s high-achievers to our programs,either for a formal degree, or a recognizedprofessional certificate.”

Deputy Police Chief Ron Bain of the PeelRegional Police chaired the OACP trainingcommittee. His committee developed the lead-ership program with the Rotman School.

Bain, a 28-year police force veteran whohad to go abroad to get his police managementtraining, notes that the Rotman program marksthe first time police officers have been able totake such courses in Canada.

“We knew that we could do something inOntario that is modelled on the U.K. courseand the FBI School in the states,” Bain recentlytold The Globe and Mail. By working with theRotman School, the OACP was able to gainthe expertise required to design a program forits members that integrates business, interper-sonal and leadership skills. RM

Signing the Police Leadership Program(PLP) agreement on December 11 at the Rotman School are, seated from left, Jim Fisher, Associate Dean, ExecutivePrograms, Rotman School and Bill Malpass,Executive Director, Ontario Association ofChiefs of Police (OACP). Standing from left,Professor Joseph D’Cruz, Academic Director,PLP; Chief Bruce Davis, President, OACP; and Deputy Chief Ron Bain, Chair of TrainingSub-Committee, OACP.

Upcoming EventsUpcoming Events

30 { S P R I N G / S U M M E R 2 0 0 1 }

JUNERotman Life-Long Learning 2001June 1, 2001 8:30 am–3:00 pm, Fleck Atrium THEME: “Integrative Thinking II: Uncovering the Hidden Pieces”LECTURERS: See the line-up on the back cover and the inside back cover COST: Complimentary for all Rotman School alumniCONTACT: Register on-line at www.rotman.utoronto.ca/alumni.htmQUESTIONS: E-mail [email protected] Tel: (416) 978-0240

Understanding the New World of Health Care –A Course for Health Care Leaders on ManagingCanada’s Health Care SystemsJune 10 to 15, 2001, Executive Education CentreCOST: $4500 plus GSTINSTRUCTORS AND TOPICS: See the line-up at www.rotman.utoronto.ca/exec.htmCONTACT: Tel: (416) 978-4441, Fax: (416) 971-2866, E-mail: [email protected]

AUG.Friends of Rotman Golf Day 2001August 23, 2001, Noon-8:00 pm, Cedar Brae Golf and Country Club, 6431 Steeles Avenue East, ScarboroughCOST: Find out online atwww.rotman.utoronto.ca/news/events.htm CONTACT: Register on-line at www.rotman.utoronto.ca/news/events.htmQUESTIONS: E-mail [email protected] Tel: (416) 978-0240

SEPT.Rotman E-Biz ForumSeptember 24, 2001, 5:00 to 7:00 pm, Fleck AtriumSPEAKER: Lawrence Pentland, President, DellCanada and Vice President and General Manager,Americas International, Dell Computer CorporationTOPIC: TBACOST: $95 per personCONTACT: Register on-line at www.rotman.utoronto.ca/news/events.htmQUESTIONS: E-mail [email protected] Tel: (416) 978-0240A limited number of complimentary tickets areavailable for current Rotman MBA, MMPA andPhD students

Make change happenAcquire the skills and expertise you need to win in today’s fast-paced business world.

The Rotman School of Management at the University of Toronto is a leader in executive learning for HR professionals. Our intenseand comprehensive learning programs build and sharpen the abilities that HR professionals need to succeed. We are now accepting applications for the following Executive Programs:

Advanced Program in Human Resources ManagementCanada’s most comprehensive executive certificate program in senior HR management. A partner program with the HRPAO.

Advanced Program in Managing Strategic ChangeFor executives and HR professionals who plan, manage andlead organizational change initiatives.

The Rotman School also provides customized corporate programs and the prestigious Executive MBA. For full details and applicationinformation on any of these programs, contact:

The Rotman School of Management, Executive ProgramsUniversity of Toronto, 105 St. George St., Toronto, ON, M5S 3E6Tel: (416) 978 4441 E-mail: [email protected]: (416) 971 2866 Web Site: www.rotman.utoronto.ca

Executive Programs


G r e a t M i n d s f o r G r e a t B u s i n e s s

Campaign UpdateCampaign Update

The critical need for Canadian companiesto see beyond their own borders in orderto compete globally is a key component in

the creation of a new endowed chair in compet-itiveness and prosperity at the Rotman School.

Made possible by a gift from Douglas andRuth Grant, the Chair in Competitivenessand Prosperity will reside within the Centrefor Global Competitiveness, one of the leadresearch centres at the Rotman School. Theannual income generated by this gift will besupplemented by funds from the CanadaResearch Chairs (CRC) Program, enabling thesupport of a senior scholar.

Robert J. Birgeneau, president of theUniversity of Toronto, says that the chair marksa new era in funding at the university. “Thisdonation from the Grants and funding throughthe Government of Canada’s inspired CRCprogram is proof-positive of how the privateand public sectors can together play a leadingrole in retaining the country’s best academicbrains. The work of the chairholder will alsohave a far-reaching impact, contributing to the overall competitiveness of the Canadianeconomy and helping to enhance our interna-tional standing amongst our trading partners.”

The Chair will focuson the development anddissemination of innova-tive strategies to enhancethe competitiveness ofboth regions and nations.The chairholder will be an international scholarin competitiveness issues and will study transi-tions and trends in the nature of competitionand the process of globalization.The Chair willalso be dedicated to creating and disseminatingresearch on competitiveness policy in Canada’spublic and private sectors.

“There is a strong sense throughout thenation that Canada is at a crossroads,” saysRoger Martin, dean of the Rotman School.“While the lack of a federal deficit, low interestrates and low inflation are positive indicators,Canada’s standard of living has declined dramatically over the last nine years. The Canadian dollar, which stood at 87 cents in 1991,fell to 65 cents by mid-1998 and has remained atthe 65 to 69 cent range ever since.” Martin says ininternational terms, this represents a cut in payin excess of 20 per cent for all Canadians.

“Just as corporations cannot be expected to win without a defined strategy, Canada will

not win in the global economy unless we pursue innovation and upgrade our productivity,”he explains. “This gift will play an importantrole in improving Canada’s chance for long-term prosperity.”

The University of Toronto was allocated271 Canada Research Chairs in 2000 — themost of any institution in Canada — whichwill be established strategically across a rangeof research fields over the next four years, clus-tered in areas of academic priority.The clusterswill cross over disciplines, faculties and grantingcouncil jurisdictions and be organized around acommon research agenda or build on currentresearch strengths. RM

Competitivenessand prosperitychair established

Douglas and Ruth Grant are pictured with Dean Roger Martin at a recognition event

celebrating their generous gift.

32 { S P R I N G 2 0 0 1 }

News Briefs By Karen Christensen and Ken McGuffin

Innovation Takes Centre Stage at Rotman E-Biz ForumsCanada’s big banks have to stoptaking advantage of people’s lackof knowledge and treat their cus-tomers better, says Chairman andCEO of E-Trade Technologies Inc.Doug Steiner, who spoke at theRotman E-Biz Forum on November27th. If they don’t, they will loseout to some of the new entrants inthe investing game, which includePresident’s Choice Financial,E*Trade, Charles Schwab andWal-Mart. In a presentationcalled, “You Too Can Own aFinancial Institution: How Tech-

nology is Wrecking the Club,”Steiner talked about how to winin financial services.

Banks have to stop competingwith each other, and start satisfy-ing their customers, he says.“Thirty-six per cent of Canadianinvestors now invest on their own.People are taking the control awayfrom the big banks using the toolsof technology.” His advice to BankCEO’s? “Stop relying on customerstupidity to build an effective busi-ness.” Steiner says it won’t be longbefore someone creates a sort of“Napster” for investing, wherepeople can trade funds in the sameway they currently trade MP3

music files. “If the banks don’twant to become dinosaurs,” saysSteiner, “they better wake up, andfast.”The October event was spon-sored by the Toronto StockExchange.

The January 29th Rotman E-BizForum, sponsored by MDC Corpo-ration Inc. and Davis & Henderson,featured Jeff Rushton(MBA ‘89), President,Americas, at Netigy Cor-poration. Rushton’s pres-entation was called, “AreYou E-Ready? The EnablingInfrastructure Required toMake E-Business RealBusiness.”

“What a difference a year makes,”Rushton began. “Just over a yearago, we were poised for the tradi-tional economy to be crushed bythe New Economy, for dot-comsto become the new Sears, GeneralElectric, and Wal-Mart.”This tech-nology-driven “field of dreams”was not to be, says Rushton, as

Pictured (clockwise, from top right), are Rotman E-Biz Forum presenter Doug Steiner; presenter Jim Balsillie; and above from left to right, sponsor Sanford McFarlane, Chairman and CEO,

Davis & Henderson Ltd., Dean Roger Martin, presenter Jeff Rushton, and sponsor Miles Nadal,Chairman, President and CEO of MDC Corporation.


witnessed by the huge drop in dot-com stocks over the past while.Thegood news, he says, is that “busi-ness fundamentals are now drivingthe new digital economy. Truetransformation can — and is —happening, as enabling infrastruc-ture, converged networks and digital information is changing cus-tomer and supplier interactions,and the very nature of the productsand services we consume .”

Despite current stock marketvolatility, market opportunitiesare still very much alive in e-com-merce, he says. “Effectively seizingthem will require real-time exe-cution and agility, best-of-breedoutsourcing, and ‘converged cus-tomer service’ — customer serv-ice that is consistently available,not only after a sale has occurred.”

What’s next for e-commerce?According to Rushton, “We willsoon witness the true convergenceof voice, video, and data, whichwill create entirely new possibili-ties - and industries. Customerdemands are going to go throughthe roof.” Other trends to lookout for are mass customizationthrough digital information andmajor reductions in transactioncosts. Rushton’s favorite quoteabout the New Economy comescourtesy of Intel Chairman AndyGrove: “Only the paranoid sur-vive.” This is true, says Rushton,“because all e-business advantagesare truly only temporary.”

The February Rotman E-BizForum, also sponsored by MDCCorporation and Davis & Hender-son, featured Jim Balsillie,Chairman and Co-CEO ofResearch in Motion Limited,based in Waterloo, Ontario.Founded in 1984, RIM made adecision in 1992 to place all itsbets on the convergence of mobil-ity and digital data — despite thefact that most people thought itwas irrelevant at the time.

Now recognized globally forits Blackberry Wireless Hand-helds™, which are “Always on,Always Connected”, RIM hasemerged as a world leader in themobile communications market,with technology that is about twoyears ahead of its competition.TheBlackberry ‘wireless wallets’ arean example of technology that re-writes value propositions, saysBalsillie. “In addition to providingtwo-way messaging, they willsoon allow for ‘digital identifica-tion’, and with all the banks head-ed towards wireless, they will alsobecome portable ATMs.”

Although the wireless walletwill yield a multitude of newapplications and service opportu-nities, it’s really more about serv-ice than technology. Balsillieexplains: “RIM wirelessly enablesthe strategies of others.We are nota portal, not an ISP, not a carrier -we support other companies’ soft-ware and hardware.”These “other

companies” include IBM, Oracle,Microsoft, and Sun Microsystems,to name a few. “Our goal is toentrench and extend what thesecompanies are already doing.”

Balsillie also believes e-mail isbecoming the epicenter of control.“Everything is moving towardstwo-way data, and Java will be atthe heart of e-commerce and themobile Internet.”Wireless devices,standards, and applications mustintegrate and evolve with theInternet. “The rate of change isonly going to accelerate.”

Rotman Students Win 2nd Spirit AwardFor the second consecutive year,Rotman students have won theUnited Way of Greater Toronto’sSpirit Award for Best StudentCampaign at a Post-Sec-ondary Institution. Led by

Class of 2001 candidates BarclayHancock and Michelle Stin-son, students raised more than$11,000 during the Fall 2000campaign. Last year’s studentcampaign — the first ever for theRotman School — raised $6,000.

“The Spirit Award honourspeople who have demonstratedoutstanding commitment andenthusiasm to our fundraisingcampaign.They are key to our suc-cess. Without them, there wouldbe no way,” says former UnitedWay President Anne Golden.

Kathleen Saddington ofExecutive Programs and AnnArmstrong, lecturer in Organi-zational Behaviour, spearheaded thecampaign for the Rotman commu-nity as a whole (including students,faculty and staff) raising more than$54,000.“We were thrilled to sur-pass our initial target of $40,000,”

continued on page 34

In cooperation with the World Bank Institute and the Institute of Urban

Economics of Moscow, the International Tax Program (ITP) of Rotman’s

Institute for International Business has undertaken to develop a training

program on intergovernmental and local finance for Russia. Financed by

the Canadian International Development Agency (CIDA), the aim of this

program is to provide training for both analysts and officials involved in

intergovernmental fiscal relations in Russia. Although the course will ulti-

mately be delivered in Russia in some 30 ‘oblasts’ (regions) throughout

the country, much of the original course material will be developed by

Canadian experts working in close collaboration with both the World

Bank Institute, which has substantial experience in delivering training in

these areas around the world, and with the Institute of Urban Economics,

a leading institution in this field which was originally established with the

support of the Urban Institute of Washington, D.C. The Canadian effort

will be directed by Richard Bird, co-director of the International Tax

Program, with the support of other faculty from Toronto and elsewhere,

including Enid Slack of the U of T’s Department of Geography, Francois

Vaillancourt of the Université de Montreal, Ken McKenzie of the

University of Calgary, and Harry Kitchen of Trent University.

IIB Conducts Training in Russia

says Armstrong. “Thanks to every-one in the Rotman communitywho made a difference, either bydonating funds or participating inone of our events.”

Fundraisers included a CNTower Climb, a coffee & book sale,and a bingo game featuring prizesdonated by Harold Ho, a Part-Time MBA student who workswith Benchmark Hospitality Ser-vices, and the Community ServicesClub.“Many staff members steppedup to the plate to help run theseevents. We couldn’t have done it

without them,” says Armstrong.Among those who pitched in

were Lee Benson, SheldonChow, Jim Fisher, AmphonKeo-Khamdhi,Gerri LaForme,Nadine Kharabian, and GabyKampouris. For the first timethis year, donations could be madeonline, thanks to the RotmanSchool’s participation in the Unit-ed Way @ Work pilot project.Rotman was one of only 10 testworkplaces in Toronto.

“So many people helped makethis campaign a success. I am

proud of their efforts, which arean important aspect of what theRotman School stands for,” saysDean Roger Martin.

Celebrating Excellence inResearch and TeachingA prestigious professor of opera-tions management and an assistantprofessor of finance are the win-ners of Rotman’s Roger Martinand Nancy Lang Awards forExcellence in Research andTeaching.

Oded Berman, professor ofoperations management, receivedthis year’s Award for Excellence inResearch. During his career, Prof.Berman has published more than110 refereed articles and has con-tributed to several books in hisfield. He is an associate editor ofthe journals Management Science,Operations Research and Transporta-tion Science, and a member of theeditorial board of Computers andOperations Research and the Journalof Service Research. His mainresearch interests include opera-tions management in the serviceindustry, logistics and softwarereliability. He has also served asAssociate Dean, Programs at theRotman School. Prof. Bermanreceived his PhD in 1978 fromMIT and has been at the Universityof Toronto since 1990.

Assistant Professor of FinanceAlexandra MacKay receivedthe Award for Excellence inTeaching. Prof. MacKay has taughtat both the undergraduate andgraduate levels, including coursesin financial engineering in theRotman MBA program. She hasconsistently won praise from bothcolleagues and students for herleadership in the classroom. Herresearch interests include fixed

34 { S P R I N G 2 0 0 1 }

PHO

TOG

RA

PHY:K

ENM

CGU

FFIN

Professors Oded Berman and Alexandra MacKay receive their Awards for Excellence in Research and Teaching from Dean Roger Martin.

What's the best way to reach the Rotman Community of more than 16,000 businesspeople?

Advertise in Rotman ManagementFull-page, colour ad - inside covers ........$ 1,330.00

Full-page, colour ad ...........................$ 1,000.00

Full-page, black & white......................$ 700.00

Half-page, colour ad...........................$ 800.00

Half-page, black & white .....................$ 560.00

Book your space now for our special Fall 2001 Competitiveness issue!Contact Karen Christensen at 416.946.5919 or via e-mail: [email protected]

income markets, term structureestimation, embedded options,pension funds, and accounting forderivatives. Recent work by Prof.MacKay has been published by (oris under review at) several majorfinance academic journals, includ-ing the Canadian Investment Review,the European Finance Review, andthe Journal of Banking and Finance.Prof. MacKay holds a PhD fromYork University. She joined theUniversity of Toronto in 1996.

These awards were establishedin 1999 by a generous donationfrom Dean Roger Martin andhis wife, Nancy Lang. Their purpose is to recognize andencourage faculty research andteaching activities.

Capital Markets Adapt to New Economy Like regular companies, stockexchanges will have to find com-petitive niches in order to survivein the New Economy, says Paul

Halpern,Toronto Stock ExchangeChair in Capital Markets and Pro-fessor of Finance. Halpern was theco-lead speaker at the U of T Cap-ital Markets Institute’s FramingConference in November. Heshared the podium with JeffMacIntosh, Associate Directorof the Capital Markets Instituteand Professor of Law, who dis-cussed “Perspectives on VentureCapital and Securities Regulation.”

Halpern told guests that stockexchanges are facing many of thesame challenges as regular compa-nies when it comes to consolida-tion and branding. “Competitionhas increased both domesticallyand internationally,” he says, “andthe unthinkable has occurred inthe organized stock exchangearea: Consolidation, eitherthrough hostile takeovers, merg-ers and acquisitions, or joint ven-tures and strategic alliances.” Likeeveryone else, stock exchangesmust determine what their com-petitive advantages are in attract-

ing listings and trading. “What wewill see is exchanges competingon listing fees, quality of services,level of regulation, integrity of themarket, and technology.With theexistence of economies of scale,especially in technology, anincrease in size through alliancesis essential.”

Also speaking at the confer-ence were Doug Steiner, Chair-man and CEO of E*Trade Canada,who discussed “Exchanges,Alliances and Technology:What isNecessary for Canadian EconomicGrowth?”; David Samuel, Man-aging Director of Mosaic VenturePartners, who asked, “How CanCapital Markets Work Better forSmall Cap/High TechnologyCompanies?”; Jack Mintz, Pres-ident and CEO, C.D. Howe Insti-tute and Rotman’s ArthurAnderson Professor of Taxation,who spoke on “Taxation and theImpact on Capital Markets andTheir Performance”; and RandallPowley, Chief Economist with

the Ontario Securities Commis-sion, who discussed “Liquidity inCapital Markets”.

Session chairs included DeanRoger Martin; Ron Daniels,Dean of the U of T’s Faculty ofLaw; Eric Kirzner, Rotman professor of finance; and MarkWeisdorf, vice president, privatemarket investments, CPP Invest-ment Board. Many of the confer-ence presentations are available onthe Capital Markets Institute Website, at www.rotman.utoronto-.ca/cmi, under the “News andEvents” section. The next CMI seminar on “Mutual FundGovernance” is scheduled forMarch 2001.

e-Business e-Executive Joins RotmanThe founder of one of Canada’sleading e-business consulting andintegrative services companies hasbeen appointed Rotman’s e-Execu-tive in residence.Larry Baldachin(EMBA ‘94), president and founderof Liberty Technology ServicesLtd., is the first person to hold thisnewly-created position.

“Larry will bring to the RotmanSchool cutting-edge strategic


The Financial Times 2001 ranking of internationalbusiness schools was released on January 22nd .This year, 100 schools from around the worldwere included in the ranking. Nine Canadian business schools were included, which is goodnews for the Canadian B-School industry.

The Rotman School ranked 46th this year. Forthe first time, the School was included in the tophalf of the survey. In numerical terms, Rotman isfive positions lower than last year, but the positionrelative to Rotman’s global competitors continuesto rise.An additional 25 schools were added to thisyear’s survey. Of note, only a few points separate alarge number of schools, including Rotman, belowthe leading 15 schools.

For the second consecutive year, the Rotman

School, was ranked as one of the top ten businessschools for finance in the world, based an recom-mendations by alumni. The complete surveyresults can be found at www.ft.com.

“The ranking shows that we are on track butwe will need to continue to push ahead on ourambitious five-year plan. It will take time for thesechanges to be reflected. Much of the FT’s rankingis based on information dating back as far as five years ago, long before we began to moveaggressively forward,” says Dean Roger Martin.“Therefore the ranking is not an up-to-date snapshot of the true progress and momentum that we have achieved in the past three years.Weknow that the marketplace is responding positivelyto our changes.”

Financial Times says Rotman Still Top Ten in Finance

continued on page 36

Do you know astellar femaleentrepreneur?

Nominate her for aCanadian Woman

Entrepreneur of the Year Award

at www.cweya.com!

knowledge of the New Economyat a time when we are striving tore-invent business education,” saysDean Roger Martin. “I am alsodelighted that an alumnus on theleading edge of the New Economywas able to step into this position.Throughout his career, Larry

has shown the type of innovativeleadership that is so essential toCanada’s future prosperity.”

In his new role, Baldachin,who also serves as a director onthe Rotman School Alumni Board,will help enhance the RotmanSchool’s e-commerce strategy,providing advice both inside and

outside the classroom. In additionto helping Rotman to develop itse-commerce curriculum, Baldachinwill assist the School in enhancingthe online community and net-work for students, faculty, andalumni through the School’s various Web projects.

As president and founder of

Liberty Technology Services Ltd.,Baldachin is the driving forcebehind the strategic direction andcorporate development of thecompany. He will continue to steerthe dramatic growth of Liberty fol-lowing the recent acquisition ofLiberty by Norigen Communications.

Under Baldachin’s leadership,Liberty grew from CompugenProfessional Services Ltd. becom-ing an independent company inJanuary of 1999. His strong under-standing of the technology marketand experience in operations andmanagement information systemshave been key components in Liberty’s success to date.

Prior to founding Liberty, Bal-dachin was the chief operatingofficer (COO) at Compugen Systems Ltd., where he oversawall national operations includingsales, marketing, human resources,technical services and professionalservices. He was promoted toCOO of Compugen in 1998 aftersuccessfully holding a number of positions at the company,including vice president of salesand marketing.

Encouraging Women in ManagementAn initiative by female MBA stu-dents to encourage more womento enroll in the program attractedover 120 potential and currentstudents, faculty and alumni to theRotman School on March 14th.

The Rotman Women inManagement Associationhopes the informal receptionhelped potential female studentsdiscover the value of pursuing anMBA. Event organizers ElizaMcDougall (MBA/LLB‘01) and

36 { S P R I N G 2 0 0 1 }

President Robert Birgeneau was welcomed to his new post by the

Hong Kong Alumni Association at areception hosted by Patrick Fung Yuk-

Bun (MBA ‘73) in Hong Kong inOctober. Birgeneau presented Patrick

and Evelyn Yee-Fun Man (PhD ‘97OISE/UT) with Arbor Awards, con-

ferred a month earlier in Toronto to rec-ognize outstanding personal service byU of T alumni volunteers. Pictured, from

left, are Jon Dellandrea, U of T’s vicepresident and chief development offi-cer; Patrick Fung Yuk-Bun; Evelyn Yee-

Fun Man; and President Birgeneau.

Hong Kong Alumni Welcome President Birgeneau

Decision-makers who lead and implement organizational change initiatives will be attendingthe seventh offering of the Advanced Programin Managing Strategic Change (APMSC)beginning October 21st at the Rotman School.Since the program’s launch in 1997, 150 seniormanagers and executives, from the private and public sectors, have completed the four-module curriculum.

The only executive-level certificate programof its kind in Canada, the program is designed toteach participants how to put the latest strategicchange concepts into action in their workplaces.Organizations ranging from Kraft Canada,to Royal Bank, to the United Way of GreaterToronto, have used the APMSC experience tolaunch new products, improve business processes,and accelerate response times.

“The program changed the way we manage

change,” says Ed Martin, a recent programgraduate, who works in Winnipeg for StandardAero, one of the world’s largest gas turbinerepair companies servicing the aerospace industry.“Before, we’d launch a change initiative, withoutthinking through the entire process. I now under-stand that creating a sense of urgency before theproject begins is very important,” he says.

Program instructors, who include Rotman faculty and experienced consultants, also act asmentors to help participants manage their individual change initiatives. “The learningbecomes very real when participants apply thecourse material to their own jobs,” says AnneKemp, one of the APMSC directors. For infor-mation about this program, please contact theRotman School’s Executive Programs office at416-978-4441 or visit www.rotman.utoronto.-ca/execprog/edev/msc.htm.

Larry Baldachin (cont'd)

Learning to Lead and Implement Change

Catherine Ward (MBA‘01) saidthe evening provided an informalatmosphere in which womencould meet with female students,graduates, and faculty of the Rotman MBA program.

“It was an opportunity forwomen who may have never considered enrolling in an MBAprogram to ask questions aboutthe degree itself and the careeropportunities it can lead to,”says McDougall.

The open house was the first

of two events during March sponsored by the Women in Management Association. OnMarch 23rd, the sixth annualWomen in Management Confer-ence was held featuring LornaBorenstein, General Manager,eBay Canada as the keynote speaker,with introductory remarks bySusan Black, Vice President,Canada, Catalyst Inc.The RotmanWomen in Management Associ-ation can be reached [email protected] RM


The first class to reap the benefits of Rotman’s redesigned Part-Time MBA Program, which allows busy working professionalsto acquire an MBA in an unprecedented three years, is set tobegin in May. To date, 52 students are enrolled, and with an average GMAT score of 644, this Part-Time MBA class reflectsRotman’s elite cohort of great minds.

The class averages seven years of work experience and encom-passes a broad range of industry experience, including packagedgoods, finance, IT, and consulting. “This influx of a select group ofindividuals who are actively engaged in the business world contributes significantly to Rotman’s already rich and vibrantlearning community,” says Program Director Harvey Kolodny.

The redesigned portion of the program focuses on the secondyear of study, which will begin with a required core of five courses,plus a Capstone field project, which students will complete as acohort. In the last part of the second year, students will choosefrom one of three new career streams: Corporate Finance/Invest-ment Banking; E-Business/Marketing; and Entrepreneurship/New Ventures.

“The beauty of this program is that ambitious working profes-sionals seeking a world-class academic experience can enjoy all thebenefits of the Rotman community, while continuing to work fulltime,” says Kolodny.

A reception was held in January to welcome the new part-timeclass to Rotman. In addition to meeting their future classmates,students mingled with staff and faculty, and took part in orienta-tion exercises.

Like its full-time counterpart, the Part-Time MBA programwill emphasize integrative thinking — the ability to look beyondtraditional business disciplines and approach problems in a holisticmanner.The program will also continue to emphasize team-basedlearning and the strong class cohesiveness that is the hallmark ofRotman MBA programs.

“The Part-Time MBA is a unique opportunity to learn as you work, and work as you learn,” says Kolodny. If you know ofsomeone who would be interested in learning more about theprogram, please have them call 416-946-7443, or send an e-mailto [email protected] deadline for applicationsto the program beginning in May of 2002 is January 14, 2002.

Redesigned Part-Time Program Set To Start

Dr. William Waters (left) addressesguests at the second annual

William Waters EMBA AlumniDinner, held February 22nd at

the Rotman School. More than 150 graduates from as far back

as EMBA 1 (1985) attended this year’s dinner, named in

Dr. Waters’ honour as a result of his valued contribution to the

Executive MBA program and hisinfluence on the lives of countlessalumni. Dr. Waters (BA ‘60, MBA

‘62) was the first academic directorof the program and taught businessat U of T for 35 years. He is also a

major benefactor to the Universityand the Rotman School. Pictured

above at the dinner are Tanya vanBiesen (EMBA 16), EMBA Program

Manager Anna Hoy, and Boon Tan (EMBA 16).

38 { S P R I N G / S U M M E R 2 0 0 1 }

Alumni on the moveAlumni on the move

Marty Rothstein (MBA ‘64) knows branding. A decorated veteran of the advertising business and a pioneer of industryconsolidation, he spent many years in the trenches, helping

build MacLaren Advertising (now known as MacLaren McCann) intoone of the world’s leading advertising conglomerates.

What makes for a successful brand? According to Marty, “greatbrands have the ability to satisfy the consumer beyond just the functional attributes of the product.And of course, in most cases, theyare unique and superior products.”

After 30 years in the advertising trenches, Marty has moved on to anew venture with an entrepreneurial flair. Hisnew company, Centrsource, is capitalizing onthe experience economy, new technology,and the age of interactive multimedia to create a revolutionary new portal that evolvestraditional media advertising into a targeted,one-on-one direct marketing tool. Marty isexecutive vice president and chief operatingofficer of Centrsource. His partner BobWestrope invented the idea.

Here’s how it works. Say you’re reading The Globe and Mail, and yousee an advertisement for Volvo. In the corner of the ad, you spot a Centrsource logo and a locator number.You now have a choice to make:“You can go to the Volvo dealer in person; call the 1-800 number andpotentially get stuck in endless audio menus; go to the Volvo Web siteand risk getting lost after 20 or 30 clicks. Or, you can go to Centrsource,either on your PC, laptop, or handheld device,” explains Marty.

Upon arriving at the site, you will be asked for the ad’s locator num-ber, and a menu will appear, allowing you to select from the followingoptions: ‘More information’; ‘Have a qualified sales rep call me onThursday night’;‘Print out the special-offer coupon offered in the ad’;‘Book me for a test drive later this week’; or ‘Purchase the advertisedcar in silver’. “Your transaction is complete, and you’ve only been on theCentrsource site for about 45 seconds.”

Marty has no illusions that every customer will choose to do businessthis way. “Our business model is based on one or two per cent of consumers choosing this option. But, as any direct marketer knows, thatis still very substantial.”

Thanks to technology, the power is no longer in the hands of theadvertiser, or the channel of distribution, says Marty. “At Centrsource,we work for the consumer,” he says, “even though they don’t pay us.

That’s the way it is now.”What if Volvo doesn’t show up for the test drive you’ve booked for

Thursday at 8:00 pm? “You contact us, and we advocate on your behalf,not Volvo’s. If they don’t perform, they definitely won’t last on our site.”

Until now, gauging the effectiveness of advertising has really been “hitand miss,” according to Marty. “This is why Centrsource is so powerful,and why I was attracted to it,” he says. “When you click on that logo,you’ve basically told everyone in the mix that the advertising worked.”

At the moment, Marty is looking for financing. “We’ve been in business a year and have spent $4 million preparing our systems, to thepoint that we can now demonstrate the product. We’re currently working on securing the next phase of our funding, and hope to launchin the fall of 2001. “

In addition to his business endeavors, Marty spent 11 years as volunteer president of the Heart and Stroke Foundation of Ontario.When he’s not devising inventive new ways to reach consumers, heenjoys traveling and going to the movies. “My wife and I are off to theCarolinas in April, and will also be spending a week in Florida with mygrandkids.” One of his favorite hobbies is photography. “When I travel,I try to capture the mood, history, and uniqueness of each place I visit in photographs.” RM

MARTY ROTHSTEIN:LEADER OF THE PACKBy Karen Christensen

[“Great brands have the

ability to satisfy the consumer

beyond just the functional

attributes of the product”

It’s 10:00 pm in Hong Kong (9:00 am Toronto time), but Daisy Ho’sday isn’t over yet.This busy working mother has been kind enough toslot in some time to chat long-distance with Rotman Management

about her current activities and the challenges of maintaining a unifiedbrand for her diversified company.

As deputy managing director and CFO at Shun Tak Group Holdings,a leading Hong Kong-based conglomerate, Daisy (MBA ‘90) is familiarwith the challenges of managing a diversified brand. Shun Tak operatesfour core businesses — shipping, real estate, hospitality, and invest-ments. Daisy joined the company in January of 1994 and was namedexecutive director in October of that year. In June of 1999, she becamethe Group’s deputy managing director, and was appointed chief financialofficer the following October.

Besides participating in strate-gic planning and development forall four of the company’s corebusinesses, Daisy is also responsi-ble for overall financial policy-making activities and propertyinvestment. In addition to herMBA, she holds a Bachelor’sDegree in Marketing from the University of Southern California.

Established in 1972, Shun Tak built its reputation in the shippingindustry, which remains its flagship business. “Our company has beenthe market leader for almost 30 years in providing fast, reliable 24-hourpassenger ferry service between Hong Kong and Macau,” says Daisy.“Our unique value proposition is that our core expertise is in shipping.”Daisy says the hallmarks of the Shun Tak brand are “a strong customerorientation, frequent, efficient service, and dependability.”

Back in the 1980s, in response to the growth of the Southern Chinaand Hong Kong economies, Shun Tak initiated a long-term program ofdiversification. “First, we moved into tourism-related industries,” shesays, “such as hotels and restaurants, and then into real estate.”

The company’s 1999 merger with China Travel — its only competitoron the Hong Kong-Macau ferry route — was a very positive move, saysDaisy. “Neither of us could achieve economy of scale on our own. Bothcompanies were hurting. After the merger, there were concerns thatbecause we had become a ‘monopoly’ on the Hong Kong-Macau route,we would not feel compelled to provide the same high-level service.”Instead, the consolidated company made a concerted effort to providebetter service than ever before. “And our customers noticed. Over therecent Chinese New Year, we broke records.” The combined serviceoperates under a modern new brand name — “TurboJET”.

Shun Tak has managed to successfully leverageits brand across its diversified businesses, and thecompany continues to take on new challenges.“We

are currently building our first major residential complex —which willinclude 2,200 units in six towers. In the past, we have only worked on onebuilding at a time, so this is a major step for us.” Shun Tak is partnering withthree other companies on the project, one of which is one of Hong Kong’smost respected builders. “They are perceived as being the best in China,and we have a shared vision with them.That helps reassure people.”

One of Daisy’s proudest achievements was raising $1.9 billion for a Shun Tak Group loan in 1999. “Raising such an amount was no easytask at the time, given the dire economic conditions in Southeast Asia.Most of the banks were very illiquid due to a dramatic increase indefaults.They were very concerned about lending money, which madeit a major challenge.”

When she’s not working, Daisy enjoys spending as much time as possible with her two young daughters — six-year-old Beatrice andthree-year-old Gillian. Despite her hectic schedule, she manages to findtime to retain her Rotman School connections. Daisy is past-presidentof the U of T’s Hong Kong Alumni Association and still actively partici-pates in local alumni initiatives. In addition, she chairs the Hong KongFoundation Scholarship selection committee, which has raised $7 mil-lion in scholarship funds. “I think it’s important to stay connected withthe School.The University has a lot to offer - even for alumni who liveon the other side of the world!” RM

DAISY HO:MAKING DIVERSIFICATION WORKBy Karen Christensen


[ “The Shun Tak brand is known

for its strong customer orientation,

efficient service, and dependability.”

40 { S P R I N G / S U M M E R 2 0 0 1 }

ASVice President of Bell Sympatico, Pat Tremaine (EMBA‘97) is a key custodian of one of Canada’s biggest andbest-known brands. But we’re not talking about the

bureaucratic, predictable Ma Bell of yore.Today’s Bell is agile and verymuch a player in the New Economy.

Once known simply as “the telephone company,” today’s Bell coversmuch wider territory, most of it of the high-tech variety. Its currentincarnations include Bell Mobility (wireless telephones), Bell Actimedia (e-commerce solutions), Bell Expressvu (satellite TV),Bell Nexxia (broadband solutions), and Bell Zinc (a business-to-business portal).

In a business climate dominated by consoli-dation, Bell is at the center of the action. One ofits most ambitious initiatives is Bell Globemedia,which owns Canada’s National Newspaper, TheGlobe and Mail, and CTV, Canada’s leading private broadcaster, and operates a total of 18Internet portals. “With this convergence, we’llhave even more to offer our customers in termsof content,” says Pat.

The developments keep coming at breakneck speed. “We recentlyannounced plans to develop a new technology that will integrate high-speed Internet access (Digital Subscriber Line, or DSL) with satellitetelevision and enhanced digital storage,” says Pat. “The services will bedelivered via an Internet gateway connected through Bell’s DSL serviceand an enhanced television set top box. By integrating these capabilities,Bell ExpressVu customers will be able to access the Internet from theirtelevision; send and receive e-mail; chat online; use instant messaging;obtain interactive information on the broadcast programs that they are watching; as well as play games, download content and create customized programming.”

Bell Sympatico is Canada’s leading internet service provider (ISP)and largest portal, providing customers with both connectivity and con-tent. Pat manages the connectivity piece of the Internet for Bell, includ-ing “the marketing, the operations, the end-to-end business unit.” Alltolled, she oversees about 2,500 employees. “When you combine ourdial-up product with our high-speed product, we’re servicing almost800,000 subscribers.We’re selling two things: connectivity and service.”

Is there a golden thread that weaves all the Bell brands together?“The history and reliability of Bell are something all our brands get toleverage. Having the established and trustworthy Bell name alongsideSympatico is especially important when you’re dealing with new technologies, which can often be uncertain.”Another thing all the brandscan draw on is the large scope of services Bell offers. “We’re in the connectivity, commerce and content business, and what the Bell brand

stands for is the trusted ability to provide these product and serviceofferings for our customers — whether they be residential or business.”

Making the transition from “the telephone company” to a leading-edge telecommunications giant hasn’t been easy. “Our brand’s image is evolving to be more relevant, with resonance for today’s technologi-cally-savvy customer.We are developing so may products and servicestoday that are not at all ‘Ma Bell’.”

“With all of the consolidation happening recently, we’ve entered anew frontier in branding,” says Pat. “Our acquisition of The Globe andMail and CTV is all about trying to pull things together in a way thatmake sense for consumers.” But because each of these is a powerfulbrand unto itself, these activities can lead to huge branding dilemmas.“What comes out the other end will be very interesting. It’s a dynamicand exciting place to be right now.”

Pat takes great pride in the accomplishments of her Sympatico team.“We’ve been able to do phenomenal things in the past year.We’ve gonefrom 51,000 high-speed customers to 264,000.When you realize thatthis team didn’t exist a year ago — that’s pretty amazing.”

In her spare time, Pat golfs (“but not well”), is an amateur photogra-pher, and reads a lot — usually something escapist in nature.A few yearsback, she entered an amateur photography contest judged by the photographers at Look magazine, and to her great surprise, placed third.She also loves taking road trips with her husband. “We’ve driven toSouth Carolina,Texas,Washington D.C., the Mid-West.We usually gofor a week or two, without planning where we’re going in advance —we just take off and see where the road takes us.” RM

PAT TREMAINE:THE EVOLUTION OF ‘MA BELL’By Karen Christensen

[ “With all of the consolidation

happening recently, we’ve entered

a new frontier in branding.”


Class Notes

MBA FULL & PART TIME

Class Champion,MBA Full Time:Cam Fellman [email protected]

Class Champion,MBA Full Time:Hank Bulmash [email protected]

REUNION ALERT: A reunionfor the Class of ‘75 is beingplanned for August 24, 2001 inToronto. Contact John McFarlaneat [email protected] or KimTan at [email protected] fordetails.

Sam Lum has moved to HongKong to take up a senior positionat a subsidiary of HutchisonWhampoa and Credit Suisse First Boston.

Carol Nickle has been appoint-ed vice president of client servic-es at INEA Corporation, a lead-ing provider of next-generation,enterprise analytics applicationsoftware. Previously, Carol spenteight years at CIBC, leading tothe position of head of productand market strategies for theGlobal Private Banking and Trustdivision. She also spent nine yearsat Wood Gundy Inc., where she

was involved in financing, merg-ers and acquisitions, and financialadvisory services in the NorthAmerican and European markets.

Class Champion,MBA Full Time:Danny Sui Keung Chau [email protected]

Kenneth W. Smith leads the Strategy & Transformationpractice of Cap Gemini Ernst &Young. His work focuses on issues of corporate development,including business strategy,mergers, acquisitions, alliances,value-based portfolio develop-ment, and change management.In addition to his MBA, he holdsa B.Sc. in Mathematics from YorkUniversity and an M.Sc. and PhDin Mathematics from the U of T.

Class Champion,MBA Part Time:John [email protected]

Class Champion,MBA Part Time:Larry Green [email protected]

Class Champion,MBA Full Time:Nick [email protected]

Class Champion,MBA Part Time:Darlene Varaleau [email protected]

Darlene Varaleau has launchedher own venture, Power ProjectsInc., which assists companies inimplementing their strategiesthrough effective project leader-ship…Enrique Lopez is adirector with the corporatefinance and investment division of PricewaterhouseCoopers inToronto…Suzi Manara isworking with Allergan and travel-ing throughout the U.S., “ignor-ing her MBA pub nights”, accord-ing to Darlene…Kwihwa Sonhas accepted a position at StateStreet Trust Co. in Japan.

Class Champion,MBA Full Time:Christine Wong [email protected]

Class Champion,MBA Part Time:Ann [email protected]

Susanne Laperle has beennamed senior vice president of human resources at ExportDevelopment Corporation(EDC). Prior to this, she was vice president of humanresources and communicationswith Dylex Limited. Susanne isbased at EDC headquarters inOttawa. EDC is a self-fundingCrown corporation that helpsCanadian exporters compete

and succeed in foreign markets by providing insurance, financing,and guarantees.

Dave Soulliere has beennamed vice president and chieffinancial officer of The WhiteBarn Candle Company, whichwas launched in 1999 as thenewest brand in the IntimateBrands portfolio. IntimateBrands, Inc. is the leading specialty retailer of intimateapparal, beauty and personal careproducts through the Victoria’sSecret and Bath & Body Worksbrands. Dave previously workedfor Frito-Lay in financial manage-ment, and prior to that, was senior manager of mergers andacquisitions at Nortel. He, his wifeShelley and their two childrenwill reside in central Ohio.

Class Champion,MBA Full Time:Burke [email protected]

James Appleyard is vice president of business develop-ment at Home Trust. Home TrustCompany is the wholly-ownedsubsidiary of Home CapitalGroup Inc. (TSE: HCG.B) “HomeCapital has enjoyed considerablesuccess of late,” says James. “It has the highest return on equityof any financial institution inCanada, and the price of thestock has doubled over the past18 months!” Prior to joiningHome Trust, James worked forPattern Discovery Software

1997

1996

1995

1990

1989

1986

1982

1977

1976

1975

1974

1965

Systems Ltd., an early-stageinternet technology companybased in Waterloo, Ontario. He isvery active in community service,having spent three years on theboard of directors of the Homesfor Tomorrow Society, which provides not-for-profit housing in Regent Park in Toronto. He isalso involved with the CanadianMerit Scholarship Foundation,which provides university schol-arships to top high school gradu-ates from across Canada. Jamesalso co-taught a Rotman secondyear MBA course this winterwith fellow alum Philip King,entitled “E-Business Strategies.”

Class Champion,MBA Full Time:Natasha Samuels [email protected]

Drew Ness is pleased toannounce the birth of ThomasEdwin Ness, born February 5th.Thomas joins big sister Emma,who’s showering her little broth-er with affection - so far.WifeLorraine is doing well.

After four “amazing years” inCanada, Juan Carlos Torreshas decided to move back toMexico, and has accepted a posi-tion as business unit manager forZest brand soap. He’s enjoyingbeing back home, but says hemisses the quality of life he had in Toronto. “As you can imagine,Mexico City is chaotic. I lookforward to seeing any of myclassmates who come throughtown, and to sharing a few tequilas with them,” he says.

Class Champion,MBA Full Time:Lenore [email protected]

Class Champion,MBA Part Time:Kariné Marwood kmarwood@scorecardsystems-com

Boris Illetschko is a consult-ant with Management Engineers,based in Dusseldorf, Germany.Previously, he worked withPricewaterhouseCoopers inBerlin. In his spare time, Borisenjoys traveling throughoutEurope on the weekends.

Kariné Marwood has beenappointed vice president of marketing for “a small but grow-ing”Toronto-based firm calledScorecard Systems Inc.The company provides reporting andanalysis solutions for telecommu-nications companies across NorthAmerica. For example, it helpswireless phone carriers count the precise number of phonesthey have sold, “which is trickierthan it sounds,” she says. Clientsinclude AT&T, Clearnet, BellExpressVu, and Sprint PCS.Kariné’s responsibilities includepromotions, PR, and Web sitemanagement.

Class Champion,MBA Full Time:Mitchell [email protected]

Class Champion,MBA Part Time:Lisa [email protected]

COMBINED LLB/MBA

Mark Dubowitz has beennamed general manager, Europeanoperations, and director of

international development atFloNetwork Inc. Previously,Mark worked for Ventures West,a $400 million venture capitalfirm, where he focused on soft-ware and communications deals.He also served as interim COO at a seed-stage Israeli biotechcompany engaged in the develop-ment of fusion protein therapeu-tics, which was sold to BostonLife Sciences, Inc. Mark has alsoworked in corporate law inToronto and Tel Aviv at Torys and Yigal Arnon & Co., and is a member of the Ontario Bar.FloNetwork, formerly MediaSynergy, is an e-marketingApplication Service Provider(ASP) specializing in permission-based Internet direct marketingand communications services.The company was recently namedone of the top 50 fastest-growingtechnology companies in Canadaby Deloitte Touche Tohmatsu.

COMMERCE

Class Champion:Murray [email protected]

REUNION ALERT: A reunionfor the Class of ‘66 is planned forTuesday, May 29th at Windows,in the Four Seasons Hotel inToronto, beginning at 6:30 pm.The event is for classmates andteachers only (not significant others). RSVP to Bob Kiddat [email protected]. Ifyou don’t have e-mail, you canfax him at 905-278-7901.Theorganizers (Bob, Gerry Slanand Marty Wasserman) arelooking for a couple of otherclassmates to help with last-minute logistics - if you can help, please let Bob know.

John Slattery is executive vicepresident, finance and chief finan-cial officer of Universe2U Inc.Prior to joining the company,John was vice president, financeof a CDN$750 million NorthAmerican supplier of metal building products. Universe2U(www.universe2u.com) providestelecommunications access solu-tions to communities, communi-cations carriers, building ownersand corporate and governmentcustomers in North America.

Cathy Kerzner (formerlyBamber) has been promoted to assistant vice president of newbusiness for North America atWyeth-Ayerst Pharmaceuticals.Previously, she was executivedirector, European operations.Cathy is based in St. Davids,Pennsylvania, where she has lived since 1996.

Class Champion:Mike [email protected]

Class Champion:Merzana [email protected]

EXECUTIVE MBA

Class Champion:Bob [email protected]

James Courtney is presidentof Denali InterConneXions NAInc., a consultancy that providesbusiness development and businessplanning services for high-techcompanies, based in Mississauga.

1985

1998

1996

1986

1975

1966

1955

1995

2001

2000

1999

1998

42 { S P R I N G 2 0 0 1 }

Prior to joining Denali in 1996,he spent six years - one of them in Los Angeles - withQuarterdeck Corporation,a PC utility software company.

David Davidson is managingdirector at Beacon Group AdvisorsInc. Beacon is a new venturecomprised of former NewcrestCapital and Deutsche Bank part-ners that is dedicated to advisoryand research activities related tothe resource industries. Prior tostarting up Beacon, David waswith Newcrest Capital as partnerand managing director for threeyears, before it was acquired byTD Securities last fall.

Chad Hanna is president ofThe Sunnybrook Foundation, oneof three foundations associatedwith the Sunnybrook & Women’sCollege Health Science Centre, alarge teaching hospital in Toronto.For the last three years, Chad hasbeen responsible for raising over$1,000,000 per month to fund a number of Hospital programs,research and teaching priorities.Sunnybrook & Women’s plans to embark on a $100,000,000fundraising campaign in the near future. Over the last 20years, Chad has played a seniorfundraising and marketing rolewith a number of well knownCanadian charities: CovenantHouse Toronto, Ducks UnlimitedCanada and The MuscularDystrophy Association of Canada.

Class Champion:Simon Cooper [email protected]

Teri Brown is national directorof growth and development forWatson Wyatt Canada. She alsoconsults as a member of Watson

Wyatt’s mergers and acquisitionsteam. Prior to joining WatsonWyatt,Teri gained experience asa vice president with Canada’spremier health and life sciencescompany and as a Senior Advisorto a leading Canadian financialinstitution.Watson Wyatt provides consulting services inthe areas of employee benefits,human resources technologies,and human capital management.

Simon Cooper has been namedpresident and chief operating officer of Ritz-Carlton Hotel Co.Previously, he was president ofMarriott Lodging Canada, head-quartered in Toronto. MarriottInternational acquired the Ritz-Carlton chain in 1995.

Class Champion:Peter [email protected]

Class Champion:J.P. Sabourinc/o [email protected]

Chris Cahill was appointedpresident & chief operating officer of Fairmont Hotels &Resorts (formerly CanadianPacific Hotels) in January 1998.He is executive vice presidentand trustee of Legacy Hotels Real Estate Investment Trust(“Legacy”) as well as a member of the board of directors of DeltaHotels. Before his appointment tothe position of president & COO,Mr. Cahill held the positions ofexecutive vice president, and vicepresident of sales, CanadianPacific Hotels.

Mark Cairns has been presidentof his own real estate advisoryfirm, Edev Inc., for the past fiveyears. Prior to that, he worked

with Canadian Pacific Limited,first at Marathon Realty, and thenat CP Rail Properties Group.Based in Toronto, Edev offersservices in commerical develop-ment management, project man-agement, transaction counselling,brownfield development, assetacquisitions and dispositions,and development approvals.

John Gartner is owner andproprietor of Simcoe Manor, acountry inn in Niagara-on-the-Lake, Ontario. “We are locatedon an acre of property, with One Mile Creek meanderingthrough our gardens,” says John.“Guests are just steps away to thetheatre, shopping, golf, and thelake.” For more information, visitthe inn’s website at www.bbcana-da.com/simcoemanner.html or call 905-468-3854. “I’ll bepleased to offer a discount toRotman alumni,” says John.

Class Champion:Mark [email protected]

REUNION ALERT: ClassChampion Mark Foote reportsthat a ten-year reunion is in theworks. Contact him via e-mail fordetails (address above.)

Warren Libby has been namedpresident of Syngenta CropProtection Canada, based inGuelph, Ontario. Previously, hewas president of Novartis CropProtection Canada Inc. Syngentawas formed on January 1, 2001through the global merger ofNovartis Crop Protection,Novartis Seeds, and Zeneca Agro.Syngenta is the world’s leadingagribusiness company, operatingacross all major areas of crop pro-tection and seeds, with more than20,000 employees worldwide.

Class Champion:Chris Hill [email protected]

REUNION ALERT: The Classof ‘92 is gearing up to celebrateits tenth anniversary. A reunioncommittee has been established,and ideas are welcome! Pleasecontact one of the committeemembers: Chris Hill([email protected]),Wilma Jacobs([email protected]),Bill Fields ([email protected]),Scott Dudgeon([email protected]) or Margaret Smith([email protected]).

Chris Mahoney survived lastsummer’s fatal tornado in PineLake, Alberta. Along with hiswife and daughter, he was visitingcousins at a campground whenthe storm hit. He and his familyavoided injury.

Mary Tate recently left herposition as executive coordinatorof the Workforce InformationNetwork (WIN) Project at the Ontario Government’sManagement Board Secretariat, aposition she had held since 1997.The project involved the creationof a government-wide humanresource management informa-tion system, which has now beenimplemented in all ministries.The project recently won theShowcase Ontario DiamondAward for technology innovationand organizational transforma-tion. In late March, Mary joinedthe Ministry of Consumer andBusiness Services as AssistantDeputy Minister, StrategicCorporate Support Services.

1992

19911990

1989

1988

1987


44 { S P R I N G 2 0 0 1 }

Class Champion:Gail Garland [email protected]

R. Bruce Douglas is presidentof York-Simcoe Mailing, anauthorized dealer of NeopostMailing Equipment. “This smallbusiness was started in January of 1999 as a part-time venture forme and my wife, her sister, andone full-time technician,” saysBruce. “We sell and servicepostage meters, mailing machines,and folding-inserting equipment.”Prior to starting this venture,Bruce worked for Neopost

Canada for 20 years. Neopostdesigns, delivers and services highquality mailing & document han-dling systems. Bruce started out as a junior sales representative and ended up as president ofNeopost’s Canadian operations.He also sits on the board of direc-tors of Neopost Leasing. Bruce is based in Newmarket.

Patti Elliott-Spencer is a senior consultant with HemsonConsulting, which focuses onmunicipal finance. She has beenwith the company since 1998.Prior to that, she was a stay-at-home mom for a year-and-a-half.

Her son is now almost seven.“He was growing up so fast that I wanted to spend more timewith him,” she says. She currentlylives in Mississauga and worksprimarily from home, commut-ing when necessary to Hemson’soffice in downtown Toronto.

Class Champion:Andrew [email protected]

Class Champion:Jim [email protected]

Dennis Christiansen is general manager, customer service management at BellNexxia. He was promoted intothis role in April, 2000. Prior to this, he had a 19-year careerwithin the BCE family of compa-nies, holding positions in sales,marketing, project management,change management, strategicinitiatives management, and ITdevelopment. He is based inToronto but has national andinternational accountabilities.Outside of work, he enjoyssports, music, reading, personalinvesting, travel and exploringnew experiences.

1995

1994

1993

ASAs of April 30, 2001, the latest incarnation of Impact ConsultingGroup will open its doors to the community. This year’s team,consisting of MBA 2002 candidates (pictured, from left) Sean Sofin,Jamie Stiff, Randal Slavens, and President Danielle Denomy, islooking forward to a challenging and productive year.

The partners each bring uniqueskills and backgrounds to the Impactteam. Their combined experienceincludes marketing strategy, manage-ment consulting, Internet entrepre-neurship, legal practice, and logisticsmanagement in the healthcare sector.

Housed right inside the RotmanSchool, Impact is well positioned toexploit the valuable set of tools offeredin the building. In addition to the state-of-the-art research facilities, the Impactteam has year-round access to theexpertise offered by the RotmanSchool’s renowned faculty.These uniqueresources allow Impact to provideclients with integrated, dynamic, andlow-cost solutions.

For more information, visit Impact’s Web site atwww.rotman.utoronto.ca/impact or phone 416-978-4343. Alterna-tively, drop by the Impact office in Room 159 of the Rotman School,adjacent to the Fleck Atrium.

IMPACT2001/2002INTRODUCING:


Tom McGowan recentlyformed a new company, CanadianRadiation Oncology Services,which has opened a new eveningradiation clinic, operating out ofthe Sunnybrook Regional CancerCentre in Toronto.Tom was pre-viously executive vice presidentof Cancer Care Ontario.

Deborah Swail was recentlypromoted to vice president,human resources for systems andoperations at the Bank of NovaScotia.

Class Champion:Jon [email protected]

Malcolm Eade is general manager at Johnson & JohnsonMedical Products (JJMP) inMarkham, Ontario. Previously,he was director of sales and marketing for Ethicon EndoSurgery, a JJMP company.Malcolm has completed two Ironman Triathalons.

Ferdinand Oliver Porscheis president and CEO of PorscheDesign Management GMBH &Co., based in Austria.

Class Champion:Jennifer [email protected]

Lee Jones is president ofPinchin Environmental Ltd., anenvironmental firm which pro-vides consulting services relatedto health and safety, hazardousmaterials, and emissions associat-ed with the operation, renova-tion, or demolition of industrial,commercial, and institutionalfacilities. Lee joined Pinchin in1985 and was appointed presi-

dent in February 2000.He is currently a director ofEnvironmental AbatementCouncil of Ontario (EACO),and is an accredited member ofthe Association of ArchitecturalTechnologists of Ontario(MAATO.)

Class Champion:Ashok [email protected]

Ron Fabbro has accepted theposition of director, new businessdevelopment at Zimmerman &Partners Advertising, based in Fort Lauderdale, Florida.Previously, he was a senior advisor with Rapp CollinsWorldwide, New York, based in Toronto.

Charles Hall is vice presidentof business development atCaseMed KnowledgeManagement, based in Brampton.CaseMed is a start-up companyspecializing in Web-based knowl-edge management services andrelated software development.Prior to this, he was vice presi-dent of the Silhouette Division of ISG Technologies (now CedaraSoftware). Charles also spent ten years developing software at MDS Sciex and IBM Canada.

Class Champion:Mo Mauri [email protected]

Alan Chan is national salesdirector for GlaxoSmithKlineChina, based in Shanghai. Heassumed the position when hewas transferred back to Chinafrom Glaxo Wellcome Canada inOctober, 2000, after completinga three-year secondment to the

company’s Canadian subsidiary.GlaxoSmithKline is one of theworld’s leading research-basedpharmaceutical and healthcarecompanies, “committed toimproving the quality of humanlife by enabling people to domore, feel better, and live longer.”

Edward Chen is a managementconsultant in the health carepractice of McKinsey & Companyin Florham Park, New Jersey.He joined the firm July 2000after having spent 11 years as aphysician with Partners HealthCare and Massachusetts GeneralHospital in Boston, MA. Edwardis board certified in anesthesiolo-gy and was on the faculty atHarvard Medical School, wherehe also received his M.D. degree.He is also a violinist, having per-formed with various music festi-vals and orchestras in the U.S.and Europe.

Craig McLennan has beennamed vice president, communi-ty strategy at CannectCommunications Inc., an inte-grated communications provider.Prior to joining Cannect, Craigwas sales vice president of carrierservices at AT&T Canada. Lastyear, Cannect acquired DelphiSolutions Holdings Inc. ofMarkham, Ontario. Delphi is one of the largest providers oftelecommunications systems andassociated services to businessesacross Canada.

Co-Class Champions:Jennifer [email protected]

Bruce [email protected] Lawson is working oncontract with a communications

consulting firm called Navigator,which combines political strate-gies and opinion research tech-niques to measure, monitor,and move stakeholder opinion in corporate settings.

CLASS OF 2000QUICK TAKES: SafeerAhmed and his wife recentlyhad a baby… David Chalk hasmoved to Vancouver to work onCanadian Spring Water’s homeand office delivery strategy forthe Asian market… RaduCriveanu is contemplating anoffer in New York City… AzamFoda recently got a promotionat Hummingbird… RobertGerden is working at Nortel insecurity…Heida Mani is incharge of Inco’s e-commercestrategy, and is pregnant with hersecond child…CalvinMcDonald is working withGalen Weston on Loblaw’s e-commerce strategy. He and wifeAndrea are expecting a child thisspring…Lore McGuirerecently bought a new house…Karalee Close is working withBoston Consulting Group inToronto…Ravi Nookala hasbeen promoted to managingdirector at Sony Canada…Amer Rasul got married inNovember…Marcy Saxe-Braithwaite has moved toVancouver to become vice presi-dent of nursing at one of the city’sbig teaching hospitals… Tanyavan Biesen’s search practice attmp Executive Search is boom-ing…Penny Weeks’ company,Home Ticket Network, is fullyfunded and she is now overseeingthe technology phase, hoping tolaunch a pilot this summer.

Matthew DeChellis is a project manager at Netegrity in Toronto. He and his wife are

2000

1999

1998

1997

1996

46 { S P R I N G 2 0 0 1 }

expecting their first child in May.Netegrity is a global e-commerceinfrastructure company that provides solutions for securelymanaging and personalizing business-to-business, business-to-consumer, and intranet portals.

Donna de Winter is directorof finance and administrationwith Platform ComputingCorporation. Prior to that, shewas vice president of finance at Digital Processing Systems,where she completed a takeoverof the company, and chief finan-cial officer at Polyphalt, whereshe assisted in closing a takeoverbefore leaving the company.Located in Markham, Ontario,Platform Computing Corporationis a world leader in distributedresource management (DRM)software. Platform’s products,

LSF Suite and SiteAssure Suite,enable some of the world’s mostcreative companies to maximizethe productivity potential of theirpeople, computing resources andprocesses.Their strategic part-ners include Compaq, HP, IBM,and Sun Microsystems.

GEMBA (GLOBALEXECUTIVE MBA)

Class Champion:Nancy Dudgeon [email protected]

Keep Us Posted!

Send us the latest on yourpersonal and professionalachievements via E-mail:[email protected] Fax: 416.978.1373.

2000

“ With th is innovat ive redesign of our procurement process, they managed to shave $32 mi l l ion of f our annual expendi tures. Ingenious.”

THE NEW WAY OF DOING BUSINESS.P R O J E C T F I N A N C I A L P R O F E S S I O N A L S .

© R H I M a n a g e m e n t R e s o u r c e s

1.888.400.7474www.rhimr.com

Toronto / North York / Mississauga / Ottawa / Montréal / Calgary / Vancouver / Edmonton

Be a Class Act:Volunteer as aClass Champion

Class Champions ensuretheir classes remain activeand vibrant long aftergraduation and bring theRotman School and itsgraduates closer together.They help organizereunions, promote events,and keep track of theirclassmates’ activities forinclusion in the Class Notes section of RotmanManagement. To representyour graduating class,please contact the RotmanAlumni Office at (416)978-0240, or via E-mail [email protected]


2001AGENDA7:30-8:20 am Registration & Breakfast

8:20-8:30 am Welcome from the Dean

8:30-9:45 am Session 1“Integrative Thinking: Uncovering the Hidden Pieces”by Roger Martin, Dean and Professor of Strategy, Rotman School

9:45-10:00 am Coffee Break

10:00-11:15 am Session 2“Culture Matters: Understanding and Utilizing the HiddenDriver of Economic Prosperity” by Michael Fairbanks, Founderand Chair of On the Frontier; Global Leader and Innovator in ThirdWorld Development; Author, Plowing the Sea: Nurturing the Hidden Sourcesof Growth in the Hidden World (1997, Harvard Business School Press)

11:15 am-12:30 pm Session 3your choice of:A. “Branding Canada: It Takes More Than a Logo” by David

Dunne, Adjunct Assistant Professor of Marketing, Rotman School B. “Canadian Capital Markets and Economic Wealth: Do We

Have to Play in the Big Leagues?” by Paul Halpern, Professorof Finance and Toronto Stock Exchange Chair in Capital Markets,Rotman School

C. “How Governments Can Help Improve Competitiveness”by Jack Mintz, President and CEO, C.D. Howe Institute and Arthur Andersen Professor of Taxation, Rotman School

D. “Entering Foreign Markets: Strategies for Small Firms”by Becky Reuber, Associate Professor of Strategic Management,Rotman School

12:30-1:45 pm Lunch

1:45-3:00 pm Session 4“The Tipping Point: How Little Things Can Make a BigDifference” by Malcolm Gladwell, best-selling author of The TippingPoint (2000, Little, Brown) and staff writer of The New Yorker magazine

3:00-4:00 pm Cocktails

REGISTRATION DETAILS

Your Name

Degree & Year

What Industry are you in?

Job Title

Organization

Office Address

City

Province/State Code

Business Tel. Fax

E-Mail

Dietary Restrictions:

Where should we send your confirmation? ❑ Fax ❑ E-Mail

Which lecture will you attend during Session 3? ❑ A ❑ B ❑ C ❑ D

What time will you arrive?

What time will you leave?

Will you be staying for lunch?

Will you be staying for the reception?

Dress Code: Business casual

Fee: none (attendance restricted solely to Rotman School alumni)

Questions? E-mail Jack Thompson at [email protected] orcall him at (416) 978-0240

Location: Fleck Atrium (Ground Floor)

Parking: Underground Parking is available.The lot opens at 7:00 am.The entrance is just South of the Rotman School.

Registration Methods:Fax this page BY MAY 25th to (416) 978-1373Web register on-line BY MAY 25th at

www.rotman.utoronto.ca/alumni.htmMail this form BY MAY 25th to Office of Alumni Relations,

Rotman School, 105 St. George Street,Toronto, ON M5S 3E6

Rotman Life-Long Learning 2001“Integrative Thinking II: Uncovering the Hidden Pieces”

Friday, June 1, 2001Please complete all information below and fax this page to (416) 978-1373 or

register online at www.rotman.utoronto.ca/alumni.htm by May 25th. We will fax or e-mail you a confirmation.

AGENDA & REGISTRATION DETAILS

48 { S P R I N G / S U M M E R 2 0 0 1 }

105 St. George StreetToronto, Ontario, Canada M5S 3E6

Publication MailingAgreement Number 1608630

Rotman degrees are “warrantied for life”. Return to campus on June 1st to participate in Rotman Life-Long Learning 2001.This year’s stellar line-up of complimentary lectures focuses on “Integrative Thinking: Uncovering the Hidden Pieces”. We are pleased to offer the following presentations:

“Branding Canada: It Takes More Than a Logo” by David Dunne

“Culture Matters: Understanding and Utilizing the Hidden Driver of Economic Prosperity” by Michael Fairbanks

“The Tipping Point: How Little Things Can Make a Big Difference” by Malcolm Gladwell

“Canadian Capital Markets and Economic Wealth: Do We Have to Play in the Big Leagues?” by Paul Halpern

“Integrative Thinking: Uncovering the Hidden Pieces”by Roger Martin

“How Governments Can Help ImproveCompetitiveness” by Jack Mintz

“Entering Foreign Markets: Strategies for Small Firms”by Becky Reuber

20018:15 am to 3:00 pm

Rotman Life-Long Learning

Friday, June 1st

Read the full story on page 47 and confirm your attendance TODAY! To register online, visit our Web site atwww.rotman.utoronto.ca/alumni.htm or refer to page 47 for alternative registration methods. We look forwardto seeing you on June 1st!

2001 spring branding

Documents

e n t s p r i n g s

z i n e o f t h e r

n s c h o o

rotman school of management

successful branding

brand leveraginggoes

canadas brand

rotman community putsbranding