SessionSix
ACaseStudy:
TheOsoyoosIndianBandDevelopmentCorporation
DrManleyA.Begay,Jr
16November2019
Part1:Context
Part2:TheStory
Part3:ThePlayers
Part4:LessonsLearned
TheOsoyoosStory
TheOsoyoosIndianBandispartoftheOkanaganFirstNation.
SituatedinoneofCanada’spremieragriculturalandtourismregions,Osoyooshas32,000acreswhichofferopportunitiesinagriculture,eco‐tourism,commercial,industrial,andresidentialdevelopments.
Before1990,theOsoyoosIndianBand(OIB)lookedlikemanyotherIndigenousnations:
Fewcommunity‐ownedbusinesses,littleproductive
economicactivityontheirlands,fewjobs,highunemployment,etc.
Part1:Context
By1995,theBandhadtransformeditssituation.
InFY2006,itsbusinessesearned$14.7million(nowover$20
million),nearlyseventimestheamountofmoneyitreceivedfrom
theCanadiangovernment.
Part1:Context
Today,itsbusinessassetsareworthmorethan$21million.
Asaresult,theBandhasgeneratedmorejobsthanthereareBandmembersavailabletodo
thework– over1,000jobs.
Part1:Context(cont.)
HowDidThisHappen?
Itwasnotallsmoothsailing.Asrecentlyas1991,INACdeclared
OIBinsolvent.
Butovertheyears,OIBhasmadeaseriesofdecisionsandtakenaseriesofactionsthathave
transformeditsowneconomy.
TheOIBeconomywasbasedlargelyonBandOffice
employmentandsomeINAC‐controlledleasingtonon‐Indigenousoperators.
Butchangewasinthewind.
Part2:TheStory(1960sto1980s)
GettingItsFeetWetNewinitiatives– vineyardleases,
winery,golfcourse,Bandtakeoverofcampgroundmanagement,anda
constructioncompany– werethestartofanefforttogrowaproductive
economywiththeBanditselfinthedriver’sseat.
Part2:TheStory(1960sto1980s)(cont.)
EconomicActivity EmploymentinBandofficejobs Newlandleases(Brightswinery,golfcourse,campground,etc.) Vineyardoperationbegins(growinggrapesforAndresWinery) Bandlaunchesaconstructioncompanytobuildhousingontheirland
Part2:TheStory(1960sto1980s)(cont.)
PreparingforSustainableDevelopment
OIBbegantomovemoreaggressivelytotakeoverenterprisesonitslandsandidentifynew
businessopportunities.
Moreimportantly,andwithassistancefromINAC,itbegantoinvestinbuildingfinancialmanagementskillandcapacityandasharedcommunityvisionofthefutureitwantedto
create.
Part2:TheStory(mid1980stomid1990s)
EconomicActivity Strategicvisioning Tookovermanagementofgolfcourse Tookovertaxationofnon‐Indigenousleasesandbusinesses Formedeconomicdevelopmentcommittee Investedinskillsdevelopment Jointrealestateventurefailed,buttaughtgoodlessons
Part2:TheStory(mid1980stomid1990s)(cont.)
ManagingChallenge:NewStructuresandOrganizations
OIBcontinuedtoemphasizebusinessdevelopmentandenternewbusinesses.ButmostofitsbusinesseswereoperatedasdepartmentsofBandgovernment.
TheirbudgetswerepartoftheBandbudget.
Itwasdifficulttodistinguishfundedincomefromself‐generatedrevenueortokeepaclearfocusonbusiness
profits.
Aneworganizationalstructurewasneeded.
Part2:TheStory(mid‐1990stotoday)
TheBirthofOIBDCandtheGoalofSelf‐Sufficiency
In1998theBandreplaceditscommitteeoverseeingeconomicdevelopmentwith
theOsoyoosIndianBandDevelopmentCorporation(OIBDC),awhollyownedcorporationdesignedto
manageitsbusinesseswithaclearfocusonperformanceandprofits.
Thecorporation’sfinancesandmanagementareseparatefromOIBadministration.
Part2:TheStory(mid‐1990stotoday)
• Nk’MipCanyonDesertGolfCourse
• Nk’MipCampgroundandRVPark
• Nk’MipVineyards• Nk’MipConstruction• OsoyoosIndianBandHoldings
• Nk’MipConvenienceStore
• SpiritRidgeVineyardResortandSpa
• SonoraDunesGolfCourse
• OliverReadi‐Mix• Nk’MipCellars• Nk’MipDesertCulturalCenter…
Part2:TheStory(mid‐1990stotoday)
AnExplosionofEnterprises
…andmorebusinesses…
OsoyoosIndianBandDevelopmentCorporation
NIK’MIP
ConstructionVineyards
CellarsDaycare
OliverRedi‐MixSenkulmenBusinessPark
GasBar&ConvenienceStoresCampground&RVParkDesertCulturalCentreCanyonDesertResort
MountBaldySkiCorporationSonoraDunesGolfCourse
HoldingCorporationCanyonDesertGolfCourseGolfCourse
ConferenceCentreSpiritRidgeVineyardResort&Spa
NK’MIPVINEYARDS&CELLARS
NorthAmerica’sfirstAboriginalownedandoperatedwinery.
Nk’MipVineyardsisgrowingqualityfruitforawardwinningwines.OneofthelargestvineyardacreagesintheOkanaganValleywithover300acresofprimeviniferathatwerefirstplantedin1968.Varietalsinclude:CabernetSauvignon,Merlot,PinotNoir,PinotBlanc,PinotGris,CabernetFranc,SauvignonBlanc,andChardonnay.
Part3:
ThePlayers
“IproudlyintroducetheOsoyoosIndianBandDevelopmentCorporationanditsbusinesses.Visitourbusinessesandjoinusinstrengtheningtheeconomyandlifestyle
oftheSouthOkanagan.”
ChiefClarenceLouie,CEO
Part3:ThePlayers
Part3:ThePlayers(current)
ChiefandCouncilandCEO
Councillor–VeronicaMcGinnis
Councillor–NathanMcGinnis
Councillor–LeonaBapitise Councillor–
JustinHall
Councillor–SammyJoLouie
AWARDSJanuary2003 — ChiefClarenceLouielisted asoneofMacLean’sMagazine’s ”Top50CanadianstoWatch”.2002 AboriginalTourismBCawardedChiefLouiethe“InspirationalLeadershipAward”.2001—ChiefLouiewasappointedtotheAboriginalBusinessCanadaBoardandmostrecentlywasappointedViceChairofthisBoard.2000 — ClarencewaschosentojointheGovernorGeneralofCanadainthe2000leadershiptour.2000— theAdvancementofNativeDevelopmentOfficers(CANDO)namedChiefLouiethe“EconomicDeveloperoftheYear”.1999 — hereceivedtheAboriginalBusinessLeaderAward fromAllNationsTrustandDevelopmentCorporation.
ChiefLouie’seffortshavebeenwidelyrecognizedinCanadaandtheUnited
States.
AWARDS(cont.)December2011—ChiefLouiewasarecipientofthe2011BCAboriginalBusinessAwardforIndividualAchievementDecember2010—ChiefClarenceLouiewasnamedoneoftworecipientsofthe2011AboriginalBusinessHallofFame inTorontofromtheCanadianCouncilforAboriginalBusiness2008—ChiefClarenceLouiereceivedtheErnst&YoungawardforEntrepreneuroftheYearJune2006— ChiefLouiewaspresentedwiththeOrderofBritishColumbia,theprovince’shighesthonorforoutstandingachievement.April2004— theNationalAboriginalAchievementFoundationpresentedClarencewiththeawardfor“BusinessandCommunityDevelopment”.TheNationalAboriginalAchievementAwards representthehighesthonortheAboriginalCommunitybestowsuponitsownachievers.2003— theUSDepartmentofStateselectedClarenceas1of6FirstNationrepresentativestoparticipateina2‐weektour ofsuccessfulAmericanIndiantribes.
ChiefLouie’seffortshavebeenwidely
recognizedinCanadaandtheUnitedStates.
Whatarethemostimportanteventsinthisstory?
Aretheytheonesthatgetthemostpublicity?
Whendidtheimportantworkgetdone?
Part4:LessonsLearned
KeyEvents• AgradualshifttowardmanagingBand’sownresources
• Majorinvestmentsinimprovingfinancialmanagementskillsandsystems
• Top‐qualityoutsideadviceandconsultantswithprovensuccessinbusiness
• Avisioningexercisethatwoncommunitysupportforanentrepreneurialstrategytoimprovecommunitywelfare
• Financingbyleveraginglandassets• TheorganizationalshifttoOIBDC• Hiringfull‐time,experiencedCOOandCFO
Part4:LessonsLearned
WhatDidtheCreationofOIBDCAccomplish?
• RemovedbusinessesfromOIB’sadministrativestructure
• Gaveeachbusinessaseparatefinancialstructure,facilitatingtracking,accountability,transparency
• Gainedbettercontrolovermoneythroughbudget‐basedmanagementforeachbusiness
• MadeiteasierforoutsideinvestorstointeractwithOIB
• Helpedkeepfocusonprofits• Helpedinsulatebusinessfrompoliticalinterference
Part4:LessonsLearned
SomeKeystoOIB’sSuccess?
• TheStructureofGovernance– Checksandbalances– Aneffectivebureaucracy– TheorganizationofOIBDC– Clearvisionandmission
Part4:LessonsLearned
• Leadership– Vision– LongevityofChiefandCouncil– Councilwillingnesstotakeinformedrisks– Integrity
OSOYOOSINDIANBANDDEVELOPMENTCORPORATIONVisionStatement
Toachieveself‐reliancethrougheconomicdevelopmentandtopreservetheFirstNationculturethroughthecreationofjobs
onourlandsforfuturegenerations.
MissionStatementTheOsoyoosIndianBandiscommittedtobeoneofthemajoreconomicgeneratorsintheSouth OkanaganbyincreasingitsSelf‐GeneratedRevenueby50%to27‐30%millionperyear,
whilefurtherfocusingoncapacitybuildingintheDevelopmentCorporationandgeneralBand.TheOsoyoosIndianBandwillachievethisbybeingentrepreneurial,prudentinvestors,educators,andmentorstoitsmembershipoftheOsoyoos
IndianBandCommunityandBusinessCommunity,whilebeingviewedasprofessionalpractitioners,whoaregoodbusiness
peopleandhardworking.
PROPERTYTAXATION
In2001theChiefandCounciloftheOsoyoosIndianBand(OIB)enactedtaxjurisdictionoverOIBreservelandstherebytakinganimportantsteptowardsself‐reliance.In2006theFirstNationStatisticalManagementActwaspassedinParliament,thisFederallegislationallowstheFirstNationtobecometaxingauthorityforpropertyonReserve.ThisalsoallowstheOsoyoosIndianBandtoborrowfromissuingdebenturesintheopenfinancialmarketforpurposesofInfrastructuredevelopmentforsocialandeconomicdevelopmentneeds.
OIB’staxationdepartmentisresponsibleforthecollectionofpropertytaxesfromleasedlandsoccupiedbynon‐bandmembers.Taxrevenueisusedtopayfortheservicesprovidedtotheresidentsoncommercialproperties,suchasfireprotection,water&sewerinfrastructure,androadmaintenance.
ContributionsofQualityManagementtoOIB’sSuccess?
Part4:LessonsLearned
• Strategicalignmentwithoverallgoals
• Soundfinancialpractices
• Duediligenceandcarefulplanning
• Strategicuseofprofits
• Anunrestrictedsearchforexpertise
• ProfessionalEmployeerelations
• Willingnesstotakerisks
• Marketingandbranding
• Smartfinancing
CommunityRelationshipsatOIB
• Communityeducation• Gettingcommunityinput• Keepingcommunityinformedofbusinessfactsandfigures
• Linkingcitizenbenefitstobusinessperformance
• Engagementasequalswiththenon‐Indigenouscommunity
Part4:LessonsLearned
ButItNeverEnds…
OngoingChallengesatOIB
• Thebusiness‐politicsmixatbothcouncilandmanagementlevels
• Thechallengeofleadershipsuccession• Thechallengeofgrowingmanagers• Attitudesandentitlement
Part4:LessonsLearned
RecentBusinessActivitiesOIBHOLDINGSCORPORATION
(LandLeases)TheOsoyoosIndianBandownsover
32,000acresofsomeofthemostdesirableurbanindustrialcommerciallandinthe
SouthOkanagan.Corporations,entrepreneursandBandownedbusinessescapitalizeontheeconomicdevelopmentpotential.Establishedleasesinclude:
VincorInternational,SpiritRidgeVineyardResortandSpa,SonoraDunesGolfCourse,CherryGroveModularHomePark;aswellasagriculturalleasesinexcessof1,000acres,representingover20%ofthegrapeproductioninBC:VincorInternational
(Winery),MissionHillWinery,BurrowingOwlVineyards.
NK’MIPCORNER
BritishColumbia’slargestgasstation
andconveniencestoreownedandoperatedbytheOsoyoosIndian
Band.
CANYONDESERTRESORTAcommunityunlikeanyother,CanyonDesertResortwillbethefirstfullyintegrateddestinationresortintheOliverarea,with450residences,villasandsuites.Asafivephaseproject,thisyear‐roundvacationspotwillbebuiltaround
theexisting18‐holeNk’MipCanyonDesertGolfCourseand
willincludeBeachfrontResidences,GolfResidences,BeachLodgesandGolfLodges.ThesecondphaseoftheprojectwillincludetheCanyonDesert
Inn,afull‐servicesuiteshotelwithconferencefacilities,pool,spa,
restaurantandwinebar.
OsoyoosIndianBandwinsbidforfirstprovincialjailonreservelandMacleans.ca
PostedonSeptember17,2013byadmin
byaanationtalkonSeptember16,2013ChiefwantsmorejobstrainingforAboriginalinmates
September16,2013
In2007,ChiefClarenceLouie,theno‐nonsenseleaderofBritishColumbia’sOsoyoosIndianBand,wasappointedtoafive‐personfederalpanelreviewingtheoperationsoftheCorrectionalServiceofCanada.Therewasmuchthattroubledhim,ashetouredfederalpenitentiaries.Hewasdistressed,buthardlysurprised,bytheoverrepresentationofFirstNationsandotherAboriginaloffendersinprison.MostanyonefromaFirstNationscommunityhasafriendorrelativewhohasdonejailtime,hesaidinaninterview.Butwhatfrustratedhim,inthatcontext,wasthemushymorassofwell‐meaning“Aboriginal”programstohealandempower,ortofindone’sinnerwarrior.
“That’swhatpissedmeoff,whenIsawtheprogrammingtheyweredoing:sweathouse,sweathouse,sweathouse,allthathealingandculturalstuff,”hesays.“There’snothingwrongwithspiritualitytoadegree,buttheyweredoingtoomuchofitandnotenoughemploymentandtraining,likeweldersorcarpentersorelectricians.IwanttoseeFirstNationsprogramsbasedaroundjobs.”
Thestudywasnotedandfiledinthegrandtraditionoftaskforcereports.ButLouiehastakenhiscaseforreformagiantstepfurther.Heandthe500‐memberbandhavegoneintotheprisonbusiness.Thebandbeatoutseveralcontenderstowinprovincialapprovaltolocateanew378‐cellOkanaganCorrectionalCentreonitsreservelands.The$200‐millionprojectwillgeneratesome500directand500indirectjobs,onceconstructionbeginsnextyear.Thehigh‐securityprison,expectedtoopenin2016,willemploy240staffandcreatemanymorespinoffjobs.
“Rulesaremoreimportantthanresources”
AFirstNationwithsoundstructuresandgoodrulesof
governanceandfewresourceswilldobetter,inthelongrun,thanaFirstNationwithlotsofresourcesbutanineffectiveorincompetent
governancesystem.
“Economicdevelopmentisfirstandforemostapolitical
problem”
Untilthepoliticalchallengeofgovernanceissolved,economic
assetsandresourcesareunlikelytopayoff.
Inshort,botheconomicandcommunitydevelopmentarea
governance challenges.
TheTaskisNation‐Building