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Small to medium-sized businesses generate big returns for the Canadian economy.

Defined as businesses with fewer than 100 employees, SMEs constitute about 98% of all businesses in Canada providing employment opportunities to millions of Canadians and make up 48% of our gross domestic product.

According to Statistics Canada, businesses with one to 19 employees provide employment for nearly 30% of the country’s working population and three out of four Canadian businesses have less than 10 employees.  Locally, 70% of the workforce in Cambridge is employed by small businesses with less than 10 employees, according to the City of Cambridge website. 

Taking this into consideration it is fitting that Oct. 20-26 has been deemed Small Business Week to coincide with Small Business Month, providing the Cambridge Chamber of Commerce the chance to not only celebrate SMEs but offer them a unique learning opportunity thanks to our Small Business Summit: Embracing Transformation for Future Success. 

“Local SMEs play such a significant role in the economic fabric of our community and this summit is a great way to provide their operators with actionable insights and strategies to create even more success,” says Cambridge Chamber President and CEO Greg Durocher. “The summit will focus on embracing transformation which is something all businesses need to consider given the current economic climate.”

The Small Business Summit – being held Oct. 23 at Tapestry Hall - features three expert speakers who will explore a variety of topics, including AI and automation, diversification strategies, as well as community engagement and corporate social responsibility.

Also featured is a 90-minute virtual experience entitled ‘Spark’ that outlines for viewers the stages surrounding transforming an idea into action.

Summit speakers and topics include:

Building a Resilient Business Model:  Diversification strategies to withstand market fluctuations

Yohaan Tommy, MNP partner, will share his knowledge surrounding delivering measurable financial results, revenue growth and sales, and supply chain management as well as how to conduct business process reviews to improve operations.

​Adopting AI and Automation: Practical applications of AI in small business operations and automation tools to streamline workflows

Atif Khan, Vice President, AI & Data Science at Messagepoint, has extensive experience in cutting edge AI research and big data technologies regarding solving challenges and will share his expertise on AI, information systems as well as data privacy and security.

​Community Engagement and Corporate Social Responsibility: Building a business that gives back to the community 

Brittany Silveira, Marketing Manager at Grosche International Inc., will share her insights on this topic and the impact of CSR on brand reputation and customer loyalty. 

​'Spark’

Spark is a 90-minute virtual experience that will highlight for participants the five stages of transforming an idea into action, including a critical component that is the difference between failure and success on a new goal. The presentation features teaching and interactive exercises that will serve participants’ newest goal or project.

Click here to attend our Small Business Summit: Embracing Transformation for Future Success. The summit runs from 9 a.m. to 2 p.m. Wednesday, Oct. 23 at Tapestry Hall.

In business, teamwork is more crucial than ever. When employees work together effectively, they not only enhance productivity but also foster innovation and create a positive work atmosphere. 

For business leaders, inspiring employees to function as a cohesive unit requires a blend of vision, communication, interpersonal skills, and more importantly, the ability to identify when work is needed to ensure this cohesion is maintained.

“When you begin to notice more people are spending time talking about each other, rather than to each other, it’s a sign there is trouble on the team,” says leadership expert Julie Dupont of Reimagine Leadership, adding not all work colleagues are going to get along, despite the fact it creates a more positive working environment.

“Ideally, they still need to respect each other and work together productively.”

She says a lack of trust plays a key part of creating an inefficient work situation as employees begin to direct more time and energy at protecting themselves, rather than focusing on doing their best work.

“They may start to spend all their time thinking ‘How am I going to say this in the meeting?’, rather than ‘How am I going to move this meeting forward?’,” says Julie. “When people aren’t on high impact teams or interested in their team’s success so much as they are protecting themselves, then you’re not getting the same level performance. That’s very inefficient and productivity and profitability suffers.”

Transparent communication

Inspiring employees to work as a team is in ongoing process that requires dedication, empathy, and strategic planning, especially at the beginning.

“If you’re lucky enough to build your team, you want to hire for those emotional intelligence skills right off the bat,” recommends Julie. “So often, when we’re looking at resumes, we look at all those technical skills and abilities and past experiences, but we’re not thinking about ‘Do they have the social skills to fit well on this team? Are they a pleasure to be around?’.”

Effective teamwork hinges on open and transparent communication and leaders should encourage a culture where team members feel comfortable sharing ideas, feedback, and concerns. Regular team meetings, open-door policies, and collaborative tools can facilitate better communication. Also, listening actively and valuing each member’s input not only improves decision-making but also builds trust and mutual respect among team members.

Julie encourages leaders to ensure their employees learn to ‘fight fair’ by giving them the skills they need to engage with each other proactively and productively. 

“This can prevent the blowouts and the spread of underground toxins because you’re dealing with things and teaching them to deal with things right away, instead of noticing something that seems ‘off’ and ignoring it.”

Ongoing training important

Leadership is not just about giving orders; it’s about setting an example. When leaders demonstrate the values and behaviours they expect from their team, they build credibility and respect.

For instance, showing a collaborative spirit, being open to feedback, and displaying a strong work ethic can inspire employees to mirror these traits. Authenticity and consistency in actions are vital - employees are more likely to follow a leader who walks the talk.

This may require ongoing training for leaders, says Julie, noting there are many resources available to assist them in developing their leadership skills and that asking for feedback – either anonymously or via a third-party interview - is a great way to ensure they are on the right path.

“How are you perceived? How do people see you as a leader? What are those skills strengths you have that you should really leverage?” she says. “There are different ways to get the feedback safely and that’s going to be important.”

Key strategies to build an effective team:

• Set Clear Goals: Clearly define the team's objectives. Understanding the purpose and desired outcomes helps in aligning individual efforts towards a common goal.
• Clarify Roles and Responsibilities: Each team member should have a well-defined role that leverages their strengths. This prevents overlap and ensures accountability.
• Assess Skills and Strengths: Identify employees with the necessary skills, experience, and complementary strengths. Diverse skill sets within a team can enhance problem-solving and innovation.
• Consider Team Dynamics: Evaluate interpersonal skills and cultural fit. Effective communication, empathy, and the ability to collaborate are essential traits for team members.
• Encourage Open Communication: Create an environment where team members feel comfortable sharing ideas, feedback, and concerns. Transparency builds trust and facilitates problem-solving.
• Promote Mutual Respect: Cultivate a culture of respect and inclusion. Recognize and value each team member's contributions, and address conflicts promptly and constructively.
• Offer Training and Development: Invest in continuous learning opportunities to enhance team members' skills and knowledge. This can include workshops, courses, or on-the-job training.
• Ensure Access to Tools: Provide the necessary tools and technology to support the team’s work. Efficient tools can streamline processes and improve productivity.
• Facilitate Team-building Activities: Organize activities that promote team bonding and trust. This can range from informal social gatherings to structured team-building exercises.
• Promote Cross-functional Collaboration: Encourage collaboration across different departments. This can bring in fresh perspectives and improve innovation.
• Establish Performance Metrics: Define clear performance indicators to measure team success. Regularly review these metrics to track progress and identify areas for improvement.
• Provide Constructive Feedback: Offer regular feedback that is specific, actionable, and positive. Acknowledge successes and provide guidance on how to address challenges.
• Delegate Authority: Empower team members by delegating decision-making authority. This fosters a sense of ownership and responsibility.
• Motivate and Recognize: Recognize and reward achievements. Public acknowledgment and incentives can boost morale and motivate the team to excel.
• Be Open to Change: Stay adaptable to changing circumstances and be open to refining team strategies as needed. Flexibility ensures the team can navigate challenges effectively.
• Encourage Innovation: Foster an environment where creativity is valued. Encourage team members to suggest new ideas and take calculated risks.
• Demonstrate Leadership Qualities: Exhibit qualities such as integrity, resilience, and empathy. A leader who models these behaviors sets a standard for the team.
• Be Approachable: Maintain an open-door policy where team members feel comfortable approaching you with issues or suggestions. Being accessible helps in building a supportive team environment.

Assisting small and medium-sized manufacturers is critical for several reasons, including economic growth, innovation, job creation, and regional development. 

By investing in their success, governments, industry leaders, and policymakers can help create a more inclusive, dynamic, and sustainable manufacturing sector that benefits not only individual businesses but also the broader economy and society at large.

According to the City of Cambridge’s website, the manufacturing sector accounts for approximately 22% of the city’s labour force and includes more than 500 businesses and employs more than 15,000 people. In Waterloo Region, more than 17.5% of residents in total are employed in the sector making it the fourth largest manufacturing centre in Canada.

The Cambridge Chamber of Commerce has long since recognized the vital role these SMEs play in our community and as an organization that champions momentum to spark economic growth has developed a new program in partnership with Toyota Motor Manufacturing Canada (TMMC) to assist them. 

Entitled Manufacturing SkillUp for SMEs, this six-part learning opportunity led by a team of industry experts focuses on a variety of topics important to small and medium-sized manufacturers.

These include AI integration, supply chain dynamics, mastering customer service, bridging cultures in the workplace, precision advancement, and developing a Kaizen strategy. 

Productivity lagging in Canada

The program is available to both Cambridge Chamber members and non-members throughout Waterloo Region.

Cambridge Chamber of Commerce President and CEO Greg Durocher said the launch of the program comes at the right moment considering Canada’s productivity continues to lag.

According to a recent Financial Post article referencing Statistics Canada data, labour productivity at Canadian businesses has declined for two consecutive quarters, after a 0.3 per cent drop in the first quarter of 2024, with 11 of the 16 main industries recording declines. At an annual rate, productivity in Canada – which has been lagging for decades - fell by 0.7 per cent and since 2019 has declined 0.5 per cent. 

“We thought it would be a good idea for us to develop a program for small and medium-sized manufacturers and advanced manufacturing firms so they are able to learn leading edge technologies and leading-edge performances that can make them a better and stronger player in the international market,” says Greg, noting the Chamber provides a variety of programming to find the path towards successful solutions. “Through the pandemic we found a lot of SMEs were turning to the Chamber for advice, direction and guidance.”

Manufacturing SkillUp for SMEs begins in October with a session at the TMMC facility on Fountain Street North entitled ‘Crafting a Kaizen Strategy’ and features a tour of the plant. The remaining five sessions will run monthly into March of 2025.

Click here to learn more. 

Series Topics

October - Crafting a Kaizen Strategy: Embracing Continuous Improvement for Lasting Success (Includes a Toyota Tour)

November - Integrating AI into Daily Operations: Transforming the Future of Work

December - Mastering Customer Service Excellence: Elevating Standards for Business Success

January, 2025 - Bridging Cultures: Mastering Intercultural Communication in the Manufacturing Workplace

February, 2025 - Mastering Supply Chain Dynamics: Insights from TPS and TMMC Practices

March, 2025 - Advancing Precision: Upskilling Employees in Cutting-Edge CNC Machining Techniques.

Sometimes, yes only sometimes, do I feel sorry for elected officials at all levels. Now is one of those times, however, I also firmly believe it is their own doing. Some of the problems the Chamber and our colleagues provincewide and nationwide are dealing with right now is ensuring that all the issues related to businesses can get highlighted and dealt with.

The reason I say much of this is of their own doing is because, in fact, it is either the action government officials have taken, or it’s their inaction. This is, without question, a result of simply not paying attention to what is happening in the world of business. 

Earlier this year, our former Past Board Chair Kristen Danson and I converged on Queen’s Park in Toronto for the Ontario Chamber network’s annual ‘Advocacy Day’ event. This was a time for us to meet with senior government officials and lay out the issues and solutions they can implement to assist businesses.

While this is extremely valuable and important, this is often just the beginning of the process. The wheels of government turn very, very slowly; Ontario Premier Doug has said this to me personally and that he is as frustrated as many of us are as well. 

At some point, however, we need to get our provincial and federal governments to act, and act as quickly as we need them to act. 

Connecting people is our job

Local governments are not any different, which is what I hear nearly daily from a business owner, contractor, or developer who is in the process to get some of the simplest answers out of City Hall. These answers can often take far too long and require correction. In some ways, I think politicians need to stay out of the way because they often slow the process down, but at the same time should be involved to insist on immediate action.

Another vital job we have as a Chamber is connecting people. You see, no one has ever purchased a major product or service from a company. You don’t buy a car from the manufacturer; you buy it from the salesperson at the dealership.

People are the endearing element in the equation of sustainable economic prosperity. So, we embark down the path routinely by creating programs and events that centre on connecting one another.

Among these is our new Chamber Circles mentoring program which enlightens participants on connecting and benefiting from each other's experiences and knowledge. As well, our staff regularly facilitates meetings with buyers and sellers to ensure that everyone understands we all do business with people we know, like and trust. 

And finally, bringing our community together in these ways, working hard on behalf of our business community and the broader community to find solutions to our problems is at the core of our existence in this community.

It is why we’ve had 100 successful years of building, fostering, influencing, and leading our community in many different directions. We connect, we influence, we drive, we solve, and we are committed to you and this community today. We expect to be here for at least another 100 years, ringing a bell which tolls for you, too.

- Cambridge Chamber of Commerce President and CEO Greg Durocher

In the competitive landscape of modern business, having a strategic plan is essential for long-term success. 

A strategic plan serves as a roadmap, guiding an organization toward its goals and ensuring that every action taken is aligned with its overall vision, mission, and core values, which are foundational to all subsequent planning and decision-making processes. 

By defining these elements, an organization can ensure that all employees understand the overarching goals and are working cohesively towards the same objectives. This unified focus prevents efforts from being scattered and ensures that resources are allocated efficiently.

But determining when the right time is for an organization to review and update its strategic plan is something that leadership should always keep in mind, suggests Peter Wright, President of The Planning Group. 

“If you have a strategy that you’re going to grow in this particular direction and all of a sudden the world around you is changing from a competitive perspective, then you need to be able to adapt to that,” he says. “A strategic plan really never lasts for more than three years.”

Peter recommends never leaving a plan ‘on the shelf’ during that time, and depending on the industry, supports a refresh within at least a year, followed by a performance review on a quarterly basis.

Planning establishes benchmarks

“Most of the companies we deal with are on a good trajectory already, with good leaders and customers who trust them,” he says, adding most companies can advance with ongoing operational improvements but that good strategic planning can help them advance even further. “The very act of planning should take you to a new place where you wouldn’t have arrived otherwise.”

A good strategic plan also establishes benchmarks and key performance indicators (KPIs) that are essential for measuring progress. By setting specific, measurable goals, organizations can track their performance over time and make informed adjustments as needed. This continuous monitoring and evaluation process ensures that the organization remains on track to achieve its long-term objectives and can respond swiftly to any deviations. 

Organizations that operate without a strategic plan often find themselves reacting to changes and challenges as they arise. This reactive approach can lead to hasty decisions that may not align with long-term goals. Conversely, a strategic plan allows an organization to anticipate changes, identify potential obstacles, and develop strategies to mitigate risks. This proactive stance enables businesses to navigate uncertainties with confidence and agility.

Surprisingly, Peter says the benefits of updating a strategic plan may not be obvious to many business leaders, and that some go through the process because they feel it’s expected.

“A lot of our clients come to us under the assumption they want to change their strategic plan because they just always do a strategic plan,” he says.

Plan should focus on the future

A strategic plan is not just a document but a vital tool that guides an organization toward its future goals. It provides direction and focus, enables proactive management, ensures efficient resource allocation, facilitates performance measurement, boosts employee engagement, and secures a competitive advantage.

For any organization aiming for sustained success, investing time and effort into developing or updating a comprehensive strategic plan is indispensable and doesn’t have to be an insurmountable task, says Peter.

“With our clients, we’re always trying to set the bar at a place that will scare them a bit, but not so much so they say, ‘that’s aspirational and we’re not actually meant to get there’,” he says, adding a good plan should always focus on a specific, tangible, practical and measurable view of the future.

In terms of the process itself, Peter says businesses often get bogged down in creating or updating a strategic plan that is too detailed which can sour the whole experience. 

“We often mistake detail for rigor, so we make these processes so detailed and put so much detail into a strategy that’s never going to come to fruition, and then it does become a big chore,” he says. “It shouldn’t be a chore. It should be something that excites and enthuses people.”

Reviewing a strategic plan is crucial for a business due to several key reasons:

• Adapting to Changes in the External Environment: Markets, technologies, regulations, and competitive landscapes are constantly evolving. Regular reviews ensure that the strategic plan remains relevant and aligned with external changes.
• Monitoring Progress and Performance: Reviewing the strategic plan allows a business to assess its progress against its goals and objectives. This helps in identifying what is working well and what areas need improvement or adjustment.
• Resource Allocation: As priorities shift or new opportunities arise, it may be necessary to reallocate resources (financial, human, technological) to better support strategic initiatives. Regular reviews facilitate effective resource management.
• Risk Management: By continually evaluating the strategic plan, a business can identify and mitigate potential risks. This proactive approach helps in avoiding or minimizing disruptions.
• Alignment and Communication: Regular reviews ensure that all stakeholders, including employees, management, and investors, are aligned with the strategic direction of the company. This enhances communication and fosters a cohesive effort towards common goals.
• Competitive Advantage: Staying ahead of competitors often requires agility and responsiveness. Regularly reviewing and updating the strategic plan allows a business to capitalize on new opportunities and maintain a competitive edge.
• Innovation and Improvement: The review process encourages a culture of continuous improvement and innovation. It provides an opportunity to incorporate new ideas, technologies, and best practices into the strategic plan.
• Financial Health: Strategic reviews often include financial performance assessments, ensuring that the business is on track to meet its financial goals and can make necessary adjustments to improve profitability and sustainability.
• Stakeholder Confidence: Demonstrating a commitment to regular strategic planning reviews can build confidence among investors, partners, and customers, showcasing the business's dedication to strategic growth and stability.
• Employee Engagement and Motivation: Involving employees in the review process can increase their engagement and motivation, as they see how their efforts contribute to the overall success of the business.

A large majority of Canadian businesses are sluggish when it comes to the adoption of Generative Artificial Intelligence (Gen AI), according to the results of a recent report by the Canadian Chamber of Commerce’s Business Data Lab (BDL).

The 38-page report details how a multitude of barriers, along with a lack of trust in the new technology, could impede the adoption levels needed to improve Canada’s economic growth.

Locally, the report shows that 11% of businesses in Kitchener-Waterloo and Cambridge are "using", or "planning to use" Gen AI, compared to 18% in Toronto or 15% in Ottawa. 

The report, Prompting Productivity: Generative AI Adoption by Canadian Businesses, underscores how Gen AI (referring to Large Language Models bases and the practical applications built on top of them) can help tackle one of the most significant economic challenges facing Canadian prosperity and standard of life — low productivity — while also exploring what is holding Canadian businesses back from adopting AI technologies.

The results detailed in the report, compiled from a survey of 13,327 businesses in January and February of this year, shows that larger businesses are nearly twice as likely to adopt Gen AI compared to smaller businesses. Overall, the data shows that one in seven businesses (roughly 14%) – mostly larger businesses and industries with highly educated workers – are Gen AI adopters. 

Patrick Gill, BDL's Senior Director of Operations and Partnerships, and the report's lead author, says he's surprised more small businesses haven't been embracing this new technology. 

“I’ve never run into a small business owner who wasn’t run off their feet and wearing multiple hats or wish they could replicate themselves,” he says. “But that’s the nice thing about this tool. With little or at no cost a small business owner or team can leverage this to fill in some of their existing skills gaps.”

According to the report, the top three industries adopting AI includes information & culture (31%), professional services (28%), and finance and insurance (23%). The two lowest to adopt are agriculture, forestry, and fishing (8%) and construction (7%).

Building trust an issue

Patrick says historically, larger businesses usually face more barriers adopting new technologies due to the fact their operations are more complicated and often have technology ‘stacked’ on top of each other.

“Smaller businesses usually face less of a challenge,” he says. “Their biggest challenge has usually been ‘Do I have the money right now to invest in a new technology?.”

Besides potential costs, trust is also a key issue.

“Public trust and the perception of AI will definitely play a crucial role in the adoption of the technology going forward,” says Patrick, noting a survey released last year indicated that Canada was the third most pessimistic country in the world and that only 38% of Canadians view AI in a positive light, slightly ahead of those in the U.S. and France.

Patrick says the Business Data Lab report also indicates that people are nervous about what the adoption of Gen AI will mean for their jobs and notes most agree change will come in the way they conduct their jobs, versus losing them outright.

“Right now, the technology is predominantly being used to augment workers’ abilities and not to replace them entirely,” he says, adding many are looking at Gen AI as a tool that can accelerate production and improve quality and services in effort to reduce costs. “That’s incredibly important during this time of a high-cost operating environment.”

From a global perspective as interest in Gen AI continues to grow, the report indicates that Canadian businesses need to move fast to gain a competitive advantage over global competitors. Low productivity and business investment puts Canadians’ prosperity and living standards at risk and its GDP per capita is now significantly below the U.S. and the OECD (Organisation for Economic Co-operation and Development) average.

Businesses must ‘innovate or die’

“Gen AI is a generational opportunity to boost Canadian productivity at a time when our performance is steadily headed in the wrong direction. The time to prompt productivity and act is now. Canadian businesses must innovate or die, and that means embracing Gen AI,” says Patrick. “While adoption has begun in every industry, it’s likely not fast enough for Canada to be competitive on the global stage, especially since three in four Canadian businesses still haven’t tried Gen AI yet.”

Based on two adoption scenarios (“fast” and “slow”), the Canadian Chamber of Commerce’s BDL projects that Gen AI adoption by Canadian businesses will reach a tipping point of 50% in the next three to six years.  This may seem fast but is probably not fast enough to keep pace with global leaders. Businesses in the U.S., China and several European countries are investing heavily in AI, likely outpacing Canadian investment.

“Those who move first basically set the standards and capture the largest market share,” says Patrick. “And everyone else is perennially playing catch up.”

He hopes the findings in the BDL report may gently ‘nudge’ businesses into more experimentation when it comes to adopting Gen AI. 

“There are so many low costs and no cost options available, so experiment and give it a try,” says Patrick, explaining how AI can assist with creating emails, marketing, and promotional content, and well as new visuals. “Use and test it and eventually you’ll find a way.”

Click here to the read the report.

Key findings from the report

• Roughly 1 in 7 Canadian businesses (14%) are early Gen AI adopters. They are found within every Canadian industry and region, but are more likely to be exporters, larger businesses, industries with highly educated workers or emerging enterprises.
• Larger businesses are nearly twice as likely to use Gen AI than small businesses.
• 18% of Ontario businesses are ‘already using’ or ‘plan to use’ Gen AI (Toronto rate was 18%, while KW-Cambridge was 11%).
• On its current trajectory, Gen AI adoption by Canadian businesses could reach a tipping in the next 3 to 6 years — likely too slow to keep pace with global competitors.
• Depending on the rate of adoption, Gen AI could grow Canada’s productivity between 1% and 6% over the next decade.
• The factor of “trust” will be important for future adoption, with public interest and acceptance of AI likely being positively correlated with countries’ business adoption rates. Global IPSOS surveys reveal that Canadians are less knowledgeable and more nervous about AI than citizens of most other countries.
• Most businesses using Gen AI are predominately looking to accelerate content creation (69%) and automate work without job cuts (46%).
• Interestingly, replacing workers is not the primary driver of adoption, with only 1 in 8 businesses (13%) that use Gen AI cite its value for replacing employees. 
• Roughly 3 in 10 businesses cite hiring skilled employees and access to finance as top challenges to adopting new technologies.
• Almost 3 in 4 Canadian businesses (73%) have not even considered using Gen AI yet.
• Public interest and perception of the technology are likely additional major barriers to adoption by businesses. 
• It is recommended that Canadian businesses move fast to adopt Gen AI to gain a competitive advantage over global competitors. This means starting with small-scale pilot projects to validate the feasibility and impact of Gen AI before gradually expand to larger initiatives based on successful proofs of concept, all while training and preparing employees for its adoption.
• For its part, government can support Gen AI adoption by upskilling workers, setting adoption targets, tapping the private sector, and among other actions, ensuring regulation is proportionate and risk based.

Recommendations for business

Innovate or die: Canadian businesses need to move fast to gain a competitive advantage over global competitors. With Gen AI so accessible and applicable for every type of business, there is little excuse for Canadian businesses to sit on the sidelines. 

Pilot projects that measure uplift: Start with small pilot projects to validate the feasibility and impact of Gen AI. Compare metrics (e.g., efficiency, costs savings and revenue generation) before and after its implementation.

Change management and employee training: Prepare employees for the adoption of Gen AI. Provide training sessions, workshops, and resources to help them understand the technology and develop new workflows. 

Strategic alignment: Align Gen AI adoption with overall strategic goals. Identify where Gen AI can enhance existing processes, improve customer experience, or drive innovation. 

Data infrastructure and governance: Invest in robust data infrastructure and governance practices. High-quality data is essential for training Gen AI models. Ensure data privacy, security, and compliance. 

Talent acquisition and retention: Attract and retain talent skilled in Gen AI. Recruit data scientists, machine learning engineers and domain experts who can develop and deploy Gen AI solutions. 

Investment in cloud infrastructure: Leverage cloud platforms for scalable computing power. Cloud services facilitate model training, deployment, and maintenance, allowing businesses to experiment and iterate efficiently. 

Leverage public resources: Move faster by basing policies on the federal government’s Guide on the use of Gen AI or tapping available funding, such as the NRC’s (National Research Council of Canada) IRAP AI Assist Program.

The health and well-being of its operator or owner is a critical, yet often overlooked element in the day-to-day operations any business. Many small and medium-sized enterprises (SMEs) and even some larger businesses hinge on the vision, leadership, and daily involvement of their owners.

But what happens if the owner suddenly falls ill and is unable to fulfill their role? It’s a situation, says Linda Braga, that many business owners do not think about.

“It’s not even at the forefront,” says Linda, Business & Executive Development Specialist with LMI Canada, which has provided leadership development for more than 50 years. “I think there is a real lack of awareness because no one wants to think about facing an imminent illness.”

In fact, according to a recent StatCan figure, only 15% of business owners actually have a contingency plan in place for themselves in the event of illness.

“That’s very surprising,” says Linda. “In light of what happened with the pandemic and contingency planning, it is something that leaders should have in place.”

A contingency plan serves as a blueprint for maintaining operations when the owner is incapacitated. It outlines clear procedures and assigns responsibilities to other key team members to ensure that the business continues to run smoothly. This foresight helps prevent disruptions that can lead to lost revenue, decreased customer satisfaction, and potential long-term damage to the company’s reputation.

Demonstrating resiliency

“We know that in leadership resilience is the theme and having a contingency plan is just demonstrating a company’s resilience to ensure that they are not going to be impacted in a negative way,” says Linda, adding that for many leaders, their business is essentially their ‘babies’. “Wouldn’t you want to ensure if something happens that it is going to be taken care of?”

She believes fear of showing any vulnerability is not necessarily the reason many business leaders appear to be hesitant to put plans in place, but pertains more to a time management issue.

“They are just so busy with everything that they’re doing. It’s not their priority,” says Linda, adding some fully trust their team will be there to ensure the business continues to smoothly operate and leave no plan in place. “They have to realize when it’s not written in stone or a procedure that’s written out it can create ambiguity and lead to decision paralysis with the leaders and management that’s left behind.”

She says knowing there is a plan in place can significantly reduce stress and anxiety for the owner, their family, and the entire organization. It provides peace of mind that the business can withstand unforeseen challenges, allowing everyone to focus on recovery and continuity rather than crisis management.

“If you’re dealing with an emergency, why would you want to add any additional stress?” says Linda. “All of your top-level management should have a contingency plan in place.”

By preparing for the unexpected, businesses can safeguard their operations, protect their stakeholders, and ensure long-term sustainability. Every business, regardless of size, should invest time and resources into developing a robust contingency plan, securing its future against looming uncertainties.

Preparing for a scenario where the business owner suddenly falls ill and must take a leave of absence is crucial for ensuring the continuity and stability of the business. Here are several strategies a business can implement to be well-prepared for such a situation:

1. Develop a Comprehensive Succession Plan

This involves identifying key personnel who can step in temporarily and ensuring they are adequately trained.  The plan should include:

• Designation of Interim Leadership: Appoint a trusted individual or a committee who can take over the owner’s responsibilities. This person or group should be well-versed in the business operations and decision-making processes.
• Role Clarity: Clearly define the roles and responsibilities of the interim leaders to prevent any confusion or overlap of duties.
• Emergency Contact List: Maintain an updated list of key contacts such as legal advisors, financial consultants, and major clients or suppliers.

2. Document Key Processes and Procedures

Having detailed documentation of all critical business processes is essential. This should include:

• Standard Operating Procedures (SOPs): Document daily operations, workflows, and procedures for all key functions.
• Financial Protocols: Outline how to handle financial transactions, payroll, and accounts payable/receivable.
• Client and Vendor Information: Keep an up-to-date list of clients, vendors, and contracts with detailed notes on ongoing projects and relationships.

3. Implement Robust Communication Systems

Ensure there are systems in place for seamless internal and external communication:

• Crisis Communication Plan: Develop a communication strategy for informing employees, clients, and stakeholders about the situation and how it will be managed.
• Delegation of Authority: Clearly communicate the hierarchy and decision-making process to all employees.
• Regular Updates: Establish regular check-ins and updates to keep everyone informed about the business status.

4. Leverage Technology

Utilize technology to maintain business operations smoothly:

• Project Management Tools: Use tools like Trello, Asana, or Monday.com to keep track of ongoing projects and tasks.
• Cloud Storage: Ensure all important documents and data are stored securely in the cloud, accessible to the interim leaders.
• Remote Access: Set up secure remote access to critical business systems so that management can operate from any location if necessary.

5. Financial Preparedness

Ensure the business is financially prepared to handle the owner’s absence:

• Emergency Fund: Maintain a reserve fund to cover unexpected expenses during the transition period.
• Insurance: Consider business interruption insurance and key person insurance to mitigate financial risks.

6. Legal and Administrative Measures

Take care of legal and administrative preparations:

• Power of Attorney: Assign a trusted individual with the power of attorney to make legal and financial decisions on behalf of the owner.
• Review Legal Documents: Regularly review and update legal documents such as partnership agreements, bylaws, and contracts to reflect the succession plan.

7. Training and Development

Invest in continuous training and development of employees:

• Cross-Training: Train employees to handle multiple roles and responsibilities to ensure versatility.
• Leadership Development: Develop leadership skills within the team to prepare them for taking on higher responsibilities if needed.

Dealing with toxicity in the workplace can be detrimental to employee morale, productivity, and overall organizational success. 

For business leaders, addressing this issue requires a combination of empathy, clear communication, and proactive measures to foster a more positive and supportive work environment.

“Ultimately, it’s going to affect your bottom line because you’re going to spend a ton of money on recruiting talent because you’re going to have a revolving door,” says Carrie Thomas, a human resources expert and founder of Nimbus HR Solutions Group.

It's essential to identify the root causes of toxicity within the workplace. It can stem from various sources, such as authoritarian leadership styles, irresponsible behaviour of employees and managers, unrealistic performance expectations, lack of transparency, or a history of punitive actions. By understanding the underlying factors contributing to fear, leaders can develop targeted strategies to address them effectively.

“You have to find a balance. How do you maintain your employees and give them some input on things?” says Carrie. “But that’s where trust comes from. Change comes from the speed of trust.”

Address issues promptly

However, finding that trust can be difficult when leaders are faced with challenging issues surrounding time theft and absenteeism, especially after many businesses introduced hybrid work schedules. Employers must address these issues promptly and effectively to maintain a healthy work environment and ensure the smooth functioning of their operations.

“You have to nip the bad behaviour in the bud,” says Carrie, noting that inaction can easily demoralize other employees. “You can put policies in place because if one person burns that bridge it’s going to make it crummy for everyone else and the leader will have to deal with it.”

To offset potential issues that can lead to a toxic environment, she recommends leaders take a closer examination of the work culture which may require immediate attention and says creating an employee engagement survey can be a good starting point.

“If employees chose not to answer, that immediately tells me you have a culture of fear in your workplace because they don’t want to speak up,” says Carrie, adding in this situation HR assistance may likely be required. “But you have to ensure the HR person can handle the situation in a confidential and professional manner that follows the rules on how you handle an investigation or a complaint because there are laws pertaining to no retaliation.”

As well, she also suggests leaders visit the work review site Glassdoor to get a sense of what may be taking place at their company.

Good mechanisms needed

“I remember saying at the beginning of COVID, the businesses that will come through this is because their success in retaining people will solely be based on how they treated their staff during the pandemic,” says Carrie. “So, there are a lot of employers right now saying they can’t find anyone. But if you weren’t kind to your employees then, nobody will want to work for you. I call it the ‘tainted talent pool’. If people see a job continuously posted, they’re not going to want to touch it.”

She notes the ‘new’ generation of employees in the field are not apt to remaining in a job if they deem the work environment as toxic.

“Sometimes they may try and discuss their issues once, or even twice, with an employer but if they see no change, then they’re gone,” says Carrie, adding addressing concerns is imperative for leaders.

As well, she says having good mechanisms in place such as weekly one on one meetings are good vehicles to diffuse potential issues before they start affecting the entire team, especially when others may see their co-workers not adhering to the rules.

“I always say leadership is a shared responsibility,” says Carrie, adding ‘skip level’ meetings with a higher level of management may also be required to solve some of these issues. “But this falls in line with an open-door policy and being honest and transparent.”

A few key issues business leaders may encounter when dealing with a toxic work environment:

Decreased Employee Morale and Engagement: Toxic work environments can lead to decreased morale and disengagement among employees. This can manifest as increased absenteeism, lower productivity, and higher turnover rates, all of which can have a negative impact on the company's bottom line.

Negative Organizational Culture: Toxicity often stems from underlying cultural issues within the organization. Changing entrenched cultural norms and behaviors can be difficult and requires sustained effort from leadership to promote a more positive and inclusive culture.

Legal and Reputational Risks: Inappropriate behaviour such as harassment or discrimination can expose the company to legal liability and damage its reputation. Leaders must take swift and decisive action to address such issues and prevent them from escalating.

Loss of Talent: Talented employees may choose to leave the organization if they feel unsupported or mistreated in a toxic work environment. Losing key talent can disrupt business operations and hinder long-term growth and success.

Difficulty Attracting New Talent: A reputation for being a toxic workplace can make it challenging to attract top talent. Potential candidates may be wary of joining a company with a negative work environment, leading to difficulties in recruiting skilled individuals.

Impact on Leadership Credibility: Leaders who fail to address issues related to toxicity may lose credibility and trust among their employees. This can undermine their ability to lead effectively and diminish their influence within the organization.

Productivity Loss: Toxic work environments can impede productivity as employees may be preoccupied with workplace conflicts or feel demotivated to perform their best. This can result in missed deadlines, decreased quality of work, and ultimately, reduced profitability for the company.

Resistance to Change: Addressing toxicity often requires implementing changes to organizational policies, procedures, and cultural norms. Resistance to change from employees who are comfortable with the status quo can hinder efforts to create a healthier work environment.

In the dynamic landscape of modern business, where competition is fierce and innovation is paramount, the role of effective leadership cannot be overstated. Among the many responsibilities of business leaders, one crucial aspect often stands out: conducting performance management reviews. These periodic evaluations of employee performance are not merely administrative tasks but essential components of a thriving organizational culture.

“People really need to have those conversations because quite often they’re operating in a vacuum,” says Debra Burke, Head of Client Success at HR2 Business Solutions, adding most people believe they are doing a good job and take pride in their work. "And in the absence of any feedback to the contrary, they go about their merry way with that. But you just can’t come around and surprise people afterwards if you haven’t had those conversation with them.”

Performance management reviews provide a structured mechanism for evaluating employee contributions and aligning them with organizational goals. By assessing individual performance against predefined objectives, leaders can gauge the effectiveness of their workforce in driving the company's mission forward.

This evaluation helps identify high performers who deserve recognition and rewards, as well as areas where improvement or additional support may be needed. Such insights enable leaders to make informed decisions regarding talent development, resource allocation, and strategic planning.

But how a manager or leader initiates the process should be done in a positive way, says Debra.

“When you say, ‘performance review’, sometimes I feel we can go down a negative road,” she says. “It has mixed messages for people, especially those who have had really bad experiences with those kinds of things. I prefer performance conversations.”

Setting clear expectations vital

Debra believes that employees want a clear understanding of how their performance is being viewed, especially when it may relate to compensation or promotions, and when they know that their work will be evaluated regularly and objectively, they are more likely to stay focused, motivated, and committed to achieving excellence.

By setting clear expectations and providing constructive feedback, leaders empower their teams to take ownership of their roles and strive for continuous improvement. This culture of accountability not only enhances individual performance but also cultivates a sense of trust and camaraderie among colleagues.

“Having those conversations is absolutely critical and managers and leaders need to get better at them because to be honest, many are not,” says Debra, adding some may lack the necessary training. “When you become a manager or move into a leadership role, it’s certainly not everyone’s forte to be very adept at having those difficult conversations.”

She says it’s easy to offer praise, but that performance conversations can be much more nuanced when it comes to outlining potential strengths and weaknesses. 

“At a minimum, the conversation should be about growth and where you want the role to grow and how do you help guide and mentor them, and what path they should be on,” says Debra. “A lot of times, the problem with people who don’t have performance conversations at all is that they don’t know what the expectations are, so there is a big gap or void, and they may not find out until it’s too late and a termination may be involved.”

Managers and leaders too busy

She recommends ongoing performance conversations can be far more effective and beneficial – especially for managers - rather than scheduling annual or even quarterly meetings.

“The No. 1 reason performance conversations are avoided is because managers and leaders are just too busy, especially if they take this on as a once-a-year project. Even half year or quarterly meetings can suddenly become a time management issue,” she says. “If you’re giving feedback on performance on a regular basis, where people are being guided and informed, it’s not a big scary thing. Even when there might be poor performance involved, you can accomplish it in ways where people are really receptive to it.”

Debra says a conversational approach can take a lot of the problematic parts out of the process for the leaders as well as the individuals, providing it’s done in a compassionate and empathetic manner.

“There should be some element of careful language and the potential for opportunities to help because sometimes you might have to provide feedback to someone who won’t have the skills set to make those changes unless you actually help put those things in place for them,” she says, adding there are tools available to help leaders who may not have the natural ability to have those difficult conversations. “I feel like conversations don’t happen as easily and as compassionately, or maybe as kind as they used to.”

Tips for business leaders to enhance their performance management practices:

Set Clear Expectations: Clearly define performance expectations for each role within the organization. This includes outlining key responsibilities, goals, and performance indicators. When expectations are transparent, employees understand what is expected of them, leading to better performance outcomes.

Regular Feedback: Provide regular and constructive feedback to employees regarding their performance. Feedback should be specific, timely, and focused on both strengths and areas for improvement. Encourage open communication and dialogue to address any concerns and provide support for development.

Goal Setting: Collaboratively set SMART (Specific, Measurable, Achievable, Relevant, Time-bound) goals with employees to align individual objectives with organizational goals. Regularly review progress towards these goals and adjust as necessary to ensure they remain relevant and achievable.

Performance Reviews: Conduct periodic performance reviews to assess employee progress, provide feedback, and identify development opportunities. Performance reviews should be conducted in a supportive and objective manner, focusing on accomplishments, challenges, and future goals.

Recognition and Rewards: Recognize and reward employees for their contributions and achievements. This can take the form of monetary incentives, promotions, or simply verbal recognition. Acknowledging employee efforts boosts morale and motivation, leading to increased engagement and productivity.

Training and Development: Provide opportunities for continuous learning and growth to empower employees to reach their full potential. Development initiatives should be aligned with both individual and organizational goals.

Performance Improvement Plans: When performance falls below expectations, work collaboratively with employees to develop performance improvement plans. Clearly outline areas for improvement, set measurable goals, and provide support and resources to facilitate progress. Monitor performance closely and provide ongoing feedback and coaching throughout the improvement process.

Data-Driven Insights: Utilize data and analytics to gain insights into employee performance trends and patterns. Analyzing performance metrics can help identify areas of strength and weakness, inform decision-making, and drive continuous improvement efforts.

Employee Engagement: Foster a culture of employee engagement and empowerment by involving employees in decision-making processes, soliciting feedback, and recognizing their contributions. Engaged employees are more committed, motivated, and likely to perform at their best.

Continuous Monitoring and Adaptation: Regularly review and refine performance management strategies based on feedback, evolving business needs, and industry trends to ensure effectiveness and relevance.

Business failure, while often seen as a setback, can contradictory be a catalyst for growth and success in the long run. Although it may bring disappointment and financial loss initially, failure has the potential to foster resilience, learning, and innovation, ultimately paving the way for future accomplishments.

“Failing is the first attempt at learning,” says Ken Zelazny, owner of Cambridge-based Z2K Business Solutions Inc., which provides executive coaching to assist small and medium-sized businesses. 

Now semi-retired, the long-time business consultant has been involved with his own entrepreneurial ventures over the years which he admits have not always worked out and readily shares those experiences with his clients.

“I have learned a lot and talk about those failures during my coaching sessions with people and say, ‘Here’s what happened to me when I did that’,” he says, adding that type of honest approach can assist them in their decision-making process. “At the end of the day it’s not where I want you to go, but where do you want to go.”

Failure offers entrepreneurs a unique opportunity to assess what went wrong, identify weaknesses in their business model, and learn from mistakes.

By analyzing the causes of failure, entrepreneurs can gain insights into areas such as market demand, customer preferences, operational inefficiencies, and financial management. These insights enable them to refine their strategies, adapt their approaches, and make more informed decisions in future ventures.

Ken agrees and says conducting a ‘post-mortem’ is a helpful course of action for business leaders to take when a venture doesn’t work out.

Failure can foster innovation

“Talk about what didn’t work, and what did work, or why did it work? People don’t stop to think about those things as well,” he says. “There are lots of key lessons when a business owner does fail but the point is not to get disturbed by it and find out what did you learn from it?”

Failure fosters innovation and creativity. When conventional approaches prove unsuccessful, entrepreneurs are compelled to think outside the box, explore new ideas, and experiment with alternative solutions. Failure encourages risk-taking and experimentation, pushing entrepreneurs out of their comfort zones and encouraging them to embrace change and innovation. 

This is something many successful business leaders have experienced, including James Dyson, creator of Dyson, Four Seasons Hotels founder Isadore ‘Issy’ Sharp, Boston Pizza co-owner Jim Trevling, FedEX founder Fred Smith and American industrialist and business magnate Henry Ford.

“Some of the most predominant businesspeople in the world have gone bankrupt at least three or four times,” says Ken. “They’ve lost businesses, but they bounce back.”

He recommends clients create a detailed contingency or ‘disaster’ plan to offset potential pitfalls down the road, should their business venture suddenly start to flounder but stresses it should not deter them from focusing on their goals.

“I’m not suggesting this plan will be something you take down from the shelf and read every day,” says Ken. “But you have to be pragmatic because you have a fiduciary responsibility to your organization, especially when you’re employing people.”

He says similar to preparing a business plan, the ‘disaster’ plan should be fluid to accommodate potential changes.

Disaster planning essential

“When you write a business plan, you may have to pivot because things are going to change, no question. Your vision changes and the economy changes,” says Ken. “It’s the same thing with your disaster plan.”

He also recommends that business owners communicate with their employees, especially when plans are changing.

“It’s kind of like a marriage. When you stop communicating things can go south very quickly,” says Ken. “We don’t communicate enough in any business.”

While business failure may be accompanied by disappointment and hardship, it also holds the potential for growth and resilience. By embracing failure as a natural part of the entrepreneurial process and leveraging the lessons learned, entrepreneurs can transform setbacks into opportunities, ultimately emerging stronger, wiser, and more determined to succeed.

“If you love what you do, again, it’s a whole different situation,” says Ken, noting a positive mindset is vital. “I work with clients all the time who have the mindset of ‘I get to go to work’, and not, ‘I have to go to work’.”

Here are some tips for business owners to navigate and cope with failure:

Acknowledge and Accept Failure: Recognize that failure is a natural part of the entrepreneurial journey. Avoid denial or blame-shifting, and instead, accept responsibility for what went wrong. Acknowledging failure is the first step towards learning from it.

Reflect and Learn: Analyze what went wrong, identify any mistakes or missteps, and extract valuable lessons from the experience. This introspection will provide insights that can inform future decision-making and business strategies.

Seek Support: Don't shoulder the burden of failure alone. Reach out to mentors, fellow entrepreneurs, or a trusted support network for guidance and encouragement. Sharing your experiences with others who have faced similar challenges can provide valuable perspective and emotional support.

Focus on Solutions: Instead of dwelling on past failures, channel your energy into finding solutions and moving forward. Develop a concrete plan of action to address the issues that led to failure and implement corrective measures. Stay proactive and focused on rebuilding and improving your business.

Maintain a Positive Mindset: Cultivate a positive attitude and resilience in the face of setbacks. View failure as an opportunity for growth and learning rather than a reflection of your worth or abilities as an entrepreneur. Stay optimistic and determined to overcome obstacles and achieve success.

Adapt and Pivot: Be willing to adapt your business model, strategies, or goals based on the lessons learned from failure. Embrace flexibility and innovation, and don't be afraid to pivot in response to changing market conditions or feedback from customers.

Take Care of Yourself: Prioritize self-care and well-being by maintaining a healthy work-life balance, exercising regularly, and seeking activities that bring you joy and relaxation. Taking care of yourself mentally and physically will help you bounce back stronger from failure.

Stay Persistent: Perseverance is key to overcoming failure and achieving long-term success. Stay committed to your goals and vision, even in the face of adversity. Remember that setbacks are temporary, and every failure brings you one step closer to eventual success.