Edmonton’s Greatest Decade is Now

As the year comes to a close and we look ahead with our resolutions, let’s vow to leave behind our criticism and resignation and commit to building a place of distinction, prosperity, and character.

Edmonton is on the cusp of its greatest decade – filled with unprecedented opportunity for youth and overflowing with unlimited prosperity for those willing to shift to a growth-oriented mindset. The next decade will see Edmonton as Canada’s:

  • Epicenter of artificial intelligence and life science innovation;
  • Nexus of the traditional and circular economies;
  • Heart of resource production and upgrading;
  • Hub for immigration and inclusion;
  • Centre for education and research excellence;
  • Archetype for affordability and social mobility; and
  • Leader for philanthropy and community connectedness.

Massive capital investments will continue to be made in the Edmonton region, building on Dow’s $11.5 billion net-zero ethylene cracking facility, Air Products’ $1.6 billon hydrogen facility, and paving the way for some of the largest Carbon Capture Utilization and Storage (CCUS) investments in North America. Net migration into the province will continue to drive consumption and the availability of labour. And our universities and colleges are accelerating the commercialization of highly skilled talent into the market.

No wonder the Conference Board of Canada anticipates that Edmonton’s growth will double the national average.

But wait.

Canada’s GDP is expected to drop from a paltry 1.2% growth in 2023 to a moribund 0.7% growth in 2024. Outperforming the national average can no longer be our goal. We can’t wake up every day and strive for mediocrity. This is our opportunity to lead, excel, and outperform.

To do so requires a shift in mindset – a 4% growth mindset – in everything we do. And an economic strategy that gets everyone pulling together in a unified direction.

I look forward to using this forum for some new thinking and writing – brainstorming and engagement – about opportunities and initiatives as to how Edmonton can take advantage of its greatest decade ahead.

Absence of Rankings

In the private sector, it’s pretty easy to know whether your organization is outperforming the others in your industry sector. It is easy to find out if you have better margins, or lower employee turnover, a lower costs structure or a better return on shareholder investment. Many private sector organizations are publicly listed companies that require transparency in financial performance and risk.  Many private sector organizations have articles written about their leaders, their techniques and their performance.  And, many private sector organizations strive hard to be included in published rankings that evaluate them on a multitude of performance metrics, including best performing, fastest growing, best places to work, and best corporate cultures.

As well, there are CEO learning forums like EO Entrepreneurs Organization, YPO Young President’s Organization, the MacKay Forums, TEC, Tiger Forums and many others that are all designed for CEOs of small, medium and large organizations to share their experiences, share performance data, and share tools and techniques with the sole goal of making each other better.

Does such a thing exist for leaders in the public service?

I know many public service leaders who join the organizations listed above, but they do so with a huge sense of guilt and consciousness, as they know that they are using taxpayer dollars to pay for the membership – a membership that includes a peer-to-peer platform for management education, leadership discovery, performance measurement sharing and implementation accountability.

Shame on them.  Shame on the President of the College, the General Manager of the Conference Centre, the Deputy Minister of the Department of Energy and the CEO of the Healthcare system for wanting to learn from the best, compare performance and techniques, and be accountable to one another for getting better. Shame on them for using part of their budgets for improving performance.

Madness. Madness I tell you.

We have dumbed down our public service, and we have done it to ourselves. We have scrutinized budgets, provided harsh opinion on expenditures, demanded lower salaries, and trashed public service leaders all over the front pages of the newspaper for doing anything slightly unusual.

We now live in an environment where elected officials condemn the actions of the administration, independent Boards of Directors are fired en masse. CEOs are held under “investigation” for months based on conjecture. Ombudsmen and whistleblower protection allow everything to be questioned. And senior executives have lost their privilege of an appropriate severance.

And what have we created? Not only a public service culture that is risk adverse, but also a culture in the public service which is scared to spend money on things that could actually improve performance. We have punitively and intentionally dumbed down our public service leaders to a level where all we should expect is mediocrity.

How sad.  How very, very sad.

You get what you pay for, I say. If you are not willing to pay a bit to take risks, to strive for performance improvement, to enable an award-worthy leader, then why would you ever expect to see anything different than what we are getting. Our current fascination with frugality is maybe constricting us to an era of underwhelming performance.

It’s time to bring out the rankings and allow our public service leaders to compete for awards, recognition and rankings. Yes, sometimes people roll their eyes at these accolades and dispute the methodology, the objectivity or accuracy of the assessments. I get it. But that cynicism should not stand in the way of the benefits, as I’m looking at the value of these awards and ranking for what they positively accomplish:

  1. They clearly identify the performance measures that matter, based on years of comparing company performance against one another;
  2. They objectively rank each company’s performance on individual measures, such that the company can learn areas of excellence and weakness, and what it will take to be best-in-class;
  3. They are often accompanied by an education and awards session for the finalists, where leaders can learn from leaders about how they achieved higher levels of performance;
  4. They allow organizations in a wide range of sectors to identify top performers, read about their stories, understand the leadership philosophies used to achieve the results, and compare their own organizations to the winners; and
  5. They allow the winning organizations to use these awards and rankings as badges of honor, to create pride within their own organizations and to create interest in potential employees who want to work for the industry’s best.

To improve performance, to be ranked, to show vulnerability, you have to put yourself out there – and that takes courage. Public sector leaders need rankings and forum groups, and they need them today.  Our public sector leaders need to start putting themselves out there, comparing themselves to their colleagues, making themselves better leaders, and improving performance.

That’s what we should expect of all our leaders, shouldn’t it?

Too Big To Function

Go back to early Chinese history, the Roman Empire, the writings of Karl Marx or Max Webster and you will find that bureaucracy has always existed. It exists at the family level with parental hierarchy. It exists in military regimes through command and formation. It exists in manufacturing plants with process and controls. And it exists in public service organizations through rules and risk management.

And it exists for good reason.

Traditionally, a bureaucracy establishes the most efficient and rational way to organize human activity through a series of standardized rules and processes deemed necessary to maintain order, control risk, limit irreverence and control messaging. It has been the administrative system that governs pretty much every large institution in our country. And until about 30 years ago, it was a relatively effective organizing mechanism and management structure.

But then our population curve and our technology adoption curve started to turn upwards, and our bureaucracies expanded to meet the needs of the expanding bureaucracies instead of meeting the need of their customers.

And the criticisms heightened. Bureaucracies were frequently blamed for longwinded processes, slow decision-making, unnecessary approval steps, inflexible procedures, absence of creativity, lack of organizational personality, lack of individual empathy, convoluted practices, political interference, and the inability to empower front line staff to solve problems.

Bureaucracies are a control-based and rules-based operating system, like Microsoft, when really the whole world just wants to be working with Apple.

Don’t get me wrong, Microsoft will always exist and bureaucracies will always exist. Microsoft had its day in the sun, and bureaucracies have had their day in the sun. Microsoft loosened its control, and bureaucracies must loosen their control. Microsoft underwent an excruciatingly painful and costly re-inventive change process, and it is time for bureaucracies to do so as well.

Yes, it is time.

The fundamental tenants of bureaucracy are rules, process, hierarchy and control – the very essence of centralized conformist management theory – and the antithesis of creativity, innovation, customization and flexibility demanded by today’s informed customers.

Most bureaucracies follow a standard formula: policy gets announced by politicians, strategy gets set at the top, directors control risk, managers supervise a portfolio of projects, tasks are given to front line workers who deal with the customers, and administrative coordinators schedule and record the activities. The whole bureaucratic system is set up to control power and authority, centralize knowledge and decision-making, eradicate all risk and invention, trickle down responsibility without authority, govern through processes and rules, and discount any accountability for results.

No wonder bureaucracies are riddled with ego, drama, politics, blame, turf and a large dose of CYA (cover your arse). Although bureaucracies are the most rational means for carrying out imperious control over human beings, left unfettered, bureaucracies create a work environment where tremendous human emotion is channeled toward internal energy-draining survival activities as opposed to toward external facing services.

Control environments have the ability to completely emasculate public service motivation.

This background needs to be understood by our elected officials that want change to happen, but are stumped as to where to start. Change cannot start from within, from someone who grew up in the bureaucracy, as that is all they know. Perpetuating the status quo is in their best interest, especially if they are nearing retirement, and culture will always suffer.

This is the unfortunate reality for some of our cities, government departments and institutions these days. And that is why I am writing about it. The system needs a leadership and cultural overhaul – and we have a generational window to start making it happen.

More to come …

Structure Follows Strategy

It has been a long time since Alberta had a Ministry of Economic Development & Trade, and it is long overdue. The announcement by Premier Notley last Thursday brought cheers from many across the province, as we can now establish focus and resources towards our most pressing economic issues:

  1. Building a culture of risk-taking and entrepreneurship in businesses big and small;
  2. Developing revenues, trade and investment from beyond our borders;
  3. Unlocking the value of our resource assets in mutually beneficial ways; and
  4. Leading an innovation system that is relevant and respected across Canada.

We have been talking about these four simple priorities for years as part of our provincial strategy; however, the ministerial structure never followed the strategy and past ministries lived through endless leadership changes and budget uncertainty.

This was a much needed change and, when led by a strong Minister, Deputy Minister and Premier’s Advisory Committee on the Economy, I believe we are now off to a great start.

The old models of economic development, diversification and innovation have not brought success or change, and I look forward to working with this new ministry to compete and win in today’s marketplace.

I am often hard on our government because I have high expectations. This is a timely and prudent move, and I compliment this kind of thoughtful stewardship.

I look forward to helping bring back our excellence.

Why Are We Waiting?

There’s a nervousness growing on the streets and in the conversations happening in our coffee shops across Alberta. There is concern and angst among people who are typically risk-takers, adventurers and entrepreneurs.

And it’s becoming infectious. And it’s becoming concerning.

Alberta has a long history of an unusual economy – filled with highs and lows, droughts and floods, journeys and discoveries. It’s been a land of opportunity between periods of hardship, and our culture of camaraderie and cooperation has prevailed when times were most tough. And we’ve always fought through it, together.

Optimism is a key virtue of living here, as is hard work. There is no room for entitlement, and pointing fingers and complaining leaves you sitting very alone. If something needs fixing, we fix it. If something needs doing, we do it. And if someone needs help, we help them. It’s pretty simple.

So why has developing a budget and a policy framework become so difficult?

In today’s world of economic uncertainty, our individuals, families, businesses, farmers and non-profits all need some help, some guidance, some direction in terms of what they can expect … such that they can plan and make decisions that positively affect their future.

Instead, we’re playing politics and waiting for a federal election before taking care of our own?

That’s certainly not the culture that’s made us successful. That’s certainly not how we build our province. And that’s certainly not any form of leadership.

People expect more. And when you can taste fear hovering in the air … people need action.

Let’s see some leadership and some action … please.