| In that
November snowstorm, it took Progress publisher Neville
Gilfoy and me two tries to drive from Halifax to the
Ignite Summit in Saint John, N.B. The conference was
designed to allow managers of the region’s technology
companies to focus on what entrepreneurs can do to
stimulate growth. Pardon the metaphor, but the technology
sector itself is a storm. It changes the landscape.
It destroys and it also creates.
So maybe it shouldn’t be surprising that top
managers in this sector aren’t just smart and
creative but also passionate, strong, and agile. They
have enough ego to execute but also enough humility
tounderstand their markets.
The session on access to capital introduced me to
Brian Flood, who, as founder of Q1 Labs, lived on
airplanes courting venture capitalists. For Votemail
Express, his second high-tech venture, he is back
on airplanes; this time his focus is China. We need
a collegial approach in our region, he said. We can
profit from our senior business mentors like Arthur
Irving and Gerry Pond (an organizer of the conference).
Get everyone to chip in.
In California the VCs are fighting to get deals, Flood
added. They have massive funds and no deal flow. His
advice: start in California and work your way back.
UNB produces talented kids, but they are petrified
to start their own businesses. They can’t get
funding, whereas a Stanford engineering grad can get
half a million dollars for a start-up. The Valley
has billions to invest. “I’m a rarity,”
said Flood.“I’m the guy who made it out
of Alcatraz.”
VCs understand the markets, said Jamie Nicoll of PricewaterhouseCoopers.
Drop the sense of entitlement that the dollars should
come to us. Get on the plane and go to Toronto, Montreal,
the United States.
Getting the provinces to work together would be better
than the present competitive approach, said Tony Van
Bommel of the BDC. Two provinces asked if New Brunswick-based
Q1 Labs could move. My goodness!
Kevin Francis talked about co-operation. A Cape Bretoner
with degrees from St. Francis Xavier and Saint Mary’s
universities, when he became CEO of Xerox Canada he
made Saint John a major base for the company. Now
he’s doing the same thing as CEO of Center Beam,
which is based in San Jose, Calif. Atlantic Canada
should have an office in Silicon Valley, he said.
The Valley is hungry for deals. We need to promote
ourselves with a high degree of focus.
“You can also relocate an existing Silicon Valley
company here, as I did, ”said Francis. There
is a race for Silicon Valley-based investments to
move offshore.
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We have a credible
case here: lower costs, higher retention, incredible
telecom. We are a hidden jewel. Our case is compelling,
but it has to be told to the Valley.
Raise money when you don’t need it, said Joe
Catalfamo of BCE Capital. Look for a product to sell
globally. Then find good sales guys—hunters
who want to make money. They will seek out the large
markets. At the session on access to markets, Steven
Palmer of Whitehill Technologies told about attracting
an experienced U.S. salesperson: You need raw-meat
aggression when you are face-to-face in the U.S. market.
You need to be able to take failure and rejection.
Build the killbox (define your market), said moderator
Michael O’Neil of IDC Canada.
Anger spilled out from several panelists about the
lack of direct flights between Atlantic Canada and
the U.S. Atlantic Canada is hard to access by plane,
which is a competitive disadvantage when you want
to sell or raise money.
The challenge for the technology industry is how
to “scale,” how to grow faster than your
competitors amid the uncertainty of constant change.
This was the message that Francis gave in his keynote
speech and when I spoke to him later. Employees can’t
deal with confusion, Francis said. Managers must be
clear, concise, and consistent. His model is the inverted
pyramid that turns conventional management on its
head. At the top is the customer, who runs the company.
Next come the frontline staff. It is up to the managers
below to support the staff. The CEO is at the bottom,
trying to support everyone. Manager as coach is his
model.
Business today is an endless effort to do everything
cheaper and faster, he said. The essence of speed
is getting rid of management slowdowns. Be direct.
Get feedback. Employees want straight talk.
The key for managers in Atlantic Canada is to liberate
the minds of their people, Francis added. He quoted
opening speaker Frank McKenna, who said that the Net
is either a threat or an opportunity, and we must
make it an opportunity. McKenna also stressed that
the region needs people, and therefore an immigration
policy designed for Atlantic Canada and faster certification
of skilled immigrants. McKenna had spoken about urgency.
A strong technology sector is away to keep talented
young people and attract talented immigrants. The
train is leaving the station. Inaction is deadly.
One day seems much like the rest, until a sudden
storm transforms the landscape. The technology industry
is a storm. It destroys and it also creates. Our region
has what it takes to be a creative force. But will
it happen? It is up to us. |