Despite recession, record number of nominations in survey
Financial Post
Canada's most-admired corporate cultures are outperforming the rest -- despite the economic downturn -- say executives at Waterstone Human Capital.
"The performance of Canada's 10 Most Admired Corporate Cultures of 2009, in terms of three-year compounded annual revenue growth, has significantly outpaced the S&P/ TSX by an average of over 300% --or three times," says Marty Parker, managing director of Waterstone Human Capital, a Toronto-based executive search and human capital consulting firm that has been running the program since 2005. The TSX/S&P compound annual growth rate from December 2005 to December 2008 was 3.8%; for the same period, the CAGR for Canada's 10 Most Admired Corporate Cultures of 2009 was 12%.
"This proves that an outstanding corporate culture has a significant impact on performance, and that culture is an incredibly valuable asset," says Mr. Parker.
A wide range of organizations made this year's list, including: Telus Corp.; Fairmont Hotels and Resorts; industrial supplier Acklands-Grainger Inc.; human resource solutions provider Ceridian Canada; coffee retailer Starbucks Coffee Canada; and Medavie Blue Cross, a Moncton, N.B.-based organization that provides health and life insurance products as well as ambulance services in New Brunswick, Nova Scotia and Prince Edward Island.
The Canada's 10 program begins annually in the spring with Waterstone's Canadian Corporate Culture Study, a survey of 500 senior Canadian executives. At the end of the questionnaire, respondents are asked to nominate Canadian organizations they most admired in terms of having a corporate culture that impacts performance.
Mr. Parker says that despite the recession, this year's survey led to a record number of nominations -- more than 400 -- as well as double the number of organizations that went through with the formal submission, and became finalists, over the previous year.
"This year's data reflects the market correction of 2008," says Mr. Parker. "What this tells us is that if an organization's culture is strong, even with a major downturn, it outperforms "Our Canada's 10 reflects these findings," says Mr. Parker. "The reason these organizations are outperforming is because of phenomenal leadership and because of the commitment -- from the top -- to aligning corporate culture. These leaders are focused on behaviour. And behaviour drives results."
Mr. Parker says GoodLife Fitness is a prime example of how a leader can drive behaviour and shape a culture within an organization.
"The retail fitness business is extremely tough, but GoodLife has come up right through the middle," says Mr. Parker. "Part of the reason they're doing so well is because of the values they hold as an organization. Their CEO and founder, David Patch-ell-Evans, is the main driver behind GoodLife's well-defined culture."
"Patch," as he is known to his employees, ensures each new associate receives a copy of his book, Living the Good Life: Your Guide to Health and Success. The organization also conducts culture audits at regular intervals.
For the first time this year, Waterstone has developed four special category awards for organizations that have achieved exceptional performance in their respective sectors. Recipients are: Mount Sinai Hospital (Most Admired Corporate Culture -- Public Sector), Enbridge Inc. (Most Admired Corporate Culture -- Energy and Natural Resources), Workopolis (Most Admired Corporate Culture--Best Emerging Organization) and Whole Foods Market (Most Admired Corporate Culture --The Green Award).
The 2009 winners will be feted at an awards gala in Toronto on Feb. 1. the majority of its peers. In effect, many of these organizations understand that their corporate culture represents a strategic competitive advantage."
Results of the 2009 Canadian Corporate Culture Study show that 88% of respondents believe their current leadership has led to the evolution of their organization's corporate culture. In addition, 82% of respondents said that "leading by example" is a key strategy used to align culture. Furthermore, when it comes to hiring, 75% of executives surveyed said that cultural fit is more important than necessary skills.
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WINNERS
ACKLANDS-GRAINGER INC.
Sean O'Brien, president
Canada's largest distributor of industrial supplies, safety supplies and fastener products, with 155 branches across Canada, five distribution centres and more than 2,200 team members.
Canadian head office, Richmond Hill, Ont.
AVIVA INSURANCE COMPANY OF CANADA
Robin Spencer, president and CEO
One of the leading property and casualty insurance groups in Canada, providing home, automobile and business insurance and premier claims service to more than three million customers. 3,300 employees, 40 locations, more than 3,000 independent broker partners in Canada. Canadian head office, Scarborough, Ont.
CERIDIAN CANADA LTD.
Dave MacKay, president
Human resources solutions provider with 40,000 Canadian customers. Part of Ceridian Corp., a global business services company with 8,776 employees
Canadian head office in Winnipeg
CORUS ENTERTAINMENT
John Cassaday, president and CEO
Market leader in specialty television and radio, with assets in pay television, advertising services, television broadcasting, children's book publishing and children's animation. Brands include YTV, Treehouse, W Network and HBO Canada and radio stations CKNW, CKOI and Q107. Corporate head office in Toronto
FAIRMONT HOTELS AND RESORTS
Tom Storey, president
Portfolio includes 56 world-class hotels, with plans to develop more than 30 new properties in the coming years. Hotels include iconic landmarks such as Fairmont Le Chateau Frontenac in Quebec City and London's The Savoy. Owned by Fairmont Raffles Hotels International.
Canadian head office in Toronto
GOODLIFE FITNESS
David Patchell-Evans, founder and CEO
100% Canadian-owned fitness company, founded in 1979. More than 190 clubs across Canada. Currently employs 8,000 associates and has more than 550,000 members. Corporate head office in London, Ont.
MEDAVIE BLUE CROSS
Pierre-Yves Julien, president and CEO
Provides health, travel, life and income-replacement products to group and individual customers and administers various provincial and federal government-sponsored health programs. Manages ambulance services in New Brunswick, Nova Scotia and Prince Edward Island. Corporate head office in Moncton, N.B.
STARBUCKS COFFEE CANADA
Colin Moore, president
The leading retailer, roaster and brand of specialty coffee in the world, with more than 6,000 retail locations. First store opened in Canada in 1996. To date, more than 400 company-operated stores and over 100 licensed concept stores across the country. Corporate head office in Toronto
TELUS CORP.
Darren Entwistle, president and CEO
A leading national telecommunications company in Canada, with 11.6 million customer connections including 6.2 million wireless subscribers, 4.2 million wireline network access lines, and 1.2 million Internet subscribers. Provides a wide range of communications products and services including data, Internet protocol, voice, entertainment and video.
Corporate head office in Burnaby, B. C.
WALMART CANADA
David Cheesewright, president and CEO
Operates 313 retail outlets nationwide and serves more than one million customers daily. Employs more than 77,000 Canadians. Established in Canada in 1994 with the acquisition of the 122-store Woolco division of Woolworth Canada.
Corporate head office in Mississauga, Ont.
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SPECIAL CATEGORY AWARD RECIPIENTS
MOST ADMIRED CORPORATE CULTURE -- PUBLIC SECTOR
MOUNT SINAI HOSPITAL Joseph Mapa, president and CEO
Internationally recognized, 472-bed acute care academic health sciences centre affiliated with the University of Toronto. Known for excellence in the provision of compassionate patient care, innovative education, and leading-edge research. Located in Toronto
MOST ADMIRED CORPORATE CULTURE -- ENERGY AND NATURAL RESOURCES
ENBRIDGE INC.
Patrick Daniel, president and CEO
Leader in energy transportation and distribution in North America and internationally. Employs about 6,000 people, primarily in Canada and the United States.
Corporate head office in Calgary.
MOST ADMIRED CORPORATE CULTURE -- BEST EMERGING ORGANIZATION
WORKOPOLIS
Gabriel Bouchard, president Canada's Biggest Job Site with more than 3.7 million candidates visit every month. Provides a fully bilingual suite of industry-leading products and solutions. 160 staff in nine offices across Canada. Corporate head office in Toronto
MOST ADMIRED CORPORATE CULTURE -- THE GREEN AWARD
WHOLE FOODS MARKET Christina Minardi, president, north-east region
The world's leading natural and organic foods supermarket. Has more than 270 stores in the United States, Canada and the United Kingdom. Employs more than 50,000 Team Members worldwide.
Six locations in Canada, four stores in Vancouver and two in the Greater Toronto Area.
