Atlantic Links - Atlantic Business Magazine

CURRENT ISSUE VOLUME 19 NO. 4 JULY/AUGUST 2008

Excerpts from the Atlantic Links section of the November/December issue of Atlantic Business Magazine:

Where will your next CEO come from?

Is it better to promote leaders from within or recruit new talent from without? It's a tough question for businesses undergoing a changing of the guard, a question to which Scott MacMillan—Mount Saint Vincent University prof, author, motivational speaker and martial arts instructor—has a zen-like response: the solution lies hidden within the question.

MacMillan says that hiring an outsider to head up an established company is usually a red flag that significant organizational change is on the horizon. "You promote internally when you want stability or a continuation of the status quo," he says. "Change is easier to enact when you're coming in without baggage and aren't in danger of 'betraying' your friends. When a new, unknown person is recruited to a leadership position, the hiring is often situation specific, such as a corporate turnaround or for substantial cost-cutting. They are hired to perform a specific task and then they tend to move on."

For those companies which do promote from within, MacMillan cautions that someone who has been a good long-term second-in-command may not have the same success in the top position. "You really have to know and understand the skill set of the individual, as well as their limitations." He also warns against promoting existing problems by hiring someone who is too similar to the outgoing leader. "We tend to hire people similar to ourselves," he says. "You need to be aware of that if you're hoping the new leader will introduce substantial changes to the organization."

MacMillan has one final word of advice, but this time it's for people hoping to get promoted up the corporate ladder. "Once you step into that new role, you're no longer one of the gang," he says. "You're not their buddy any more; you're in a position of authority. Your staff should respect you, but you can't expect them to like you."

Pulp Fiction Becomes Reality

What is little more than a pipe dream for many pulp mills, is quickly becoming reality for AV Nackawic. The wood pulp producer in Nackawic, New Brunswick is fast becoming a rising phoenix for forestry in the province. When many mills are shutting down all across North America, this one is expanding—most recently to the tune of $35 million. So, what's their secret? A whole new process and an entirely new market: viscose fiber for making rayon fabrics. In addition to adding capacity to the mill, the expansion will add technology that turns waste into energy; enough to reduce the mill's grid dependence by half, plus an annual output of 35 million litres of automobile-grade ethanol.

The Winner's Circle

Brent McGrath was confident about the investment. Yet, even he could not have imagined a two-year-old colt purchased for $40,000 would set a world record time of 1.49.3 and win the $1-million Metro Pace at Mohawk race track this past September by cruising under the line two lengths ahead of the rest of the field.

Earnings of $2-3 million next year are not unexpected; the colt has already won more than $680,000. After that, there are real profits to be made. Somebeachsomewhere has breeders on both sides of the Canada-U.S. border jockeying to stand the colt at stud for an estimated $5-million or so. Not bad for a $40,000 investment.

Nova Scotia Inventors Win International Prize

The Economist Innovation award is a prestigious international prize from The Economist magazine that recognizes the people who have contributed to the development of new products, processes and markets in seven areas: computing and telecommunications, social and economic innovation, energy and the environment, business processes, bioscience and consumer products. Dr. Abdullah Kirumira and Hermes Chan won this year's bioscience award for their work with rapid diagnostic HIV testing. Kirumira and Chan developed the world's first HIV test capable of producing results within 30 seconds.

Six crack Top 100

Half a dozen Atlantic Canadian companies have been included in this year's list of Canada's Top 100 Employers. Compiled by Mediacorp Canada Inc. and published in Maclean's magazine, the list recognizes companies with exceptional employee benefits and working conditions. The award-winning companies are: North Atlantic Refining Ltd.; Halifax Herald Ltd.; Jacques Whitford Ltd.; NB Power Holding Corporation; Keane Canada Inc.; Diagnostic Chemicals Ltd..

Technology with Teeth

Cathexis, a small 15-person privately-held advanced technology company based in St. John's, NL, has developed the world's first mobile RFID reader with Bluetooth. Translated into plain English, that means they have created a portable, wireless device that can read and store tremendous amounts of information saved on microchips. Company CEO, Steven Taylor, says that RFID is the next generation of tagging and tracking technology, a technology that is more reliable, more secure and more user-friendly than bar codes. While Taylor expects he will see serious competition in the market for mobile RFID readers within the next 12 to 18 months, for the moment he and Cathexis are ahead of the trend.

The above excerpt was taken from the most recent issue of Atlantic Business Magazine. Our complete editorial content is available in print form only. To receive a free subscription to Atlantic Business Magazine, click HERE.

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