Over the last few weeks the rhetoric has heated up and various groups have been stepping up their lobbying of government about what they perceive should be happening in IT procurement in Ottawa.

All of this has a backdrop that includes, but is not limited to:

Ø Accusations of bid-rigging against seven local companies, and fourteen individuals related to those companies and others.
Ø Polar opposite opinions, and strong lobbying efforts by protagonists about the correct approach to the outsourcing of major contracts
Ø Lawsuits by losing contractors
Ø Political intervention in the process
Ø A procurement arm of the government that is under more scrutiny than most of us would care to live with … and trying to do the right thing.
Ø Accusations by “the big guys” that the smaller staff augmentation companies bring no value to the equation
Ø Accusations by the “little guys” that jobs will be lost in droves

The supercharged atmosphere puts increased pressure on everyone to “protect their turf” and on the procurement guys have to operate under a moicroscope … not fun for anyone!

Is there substance to all this rhetoric … or is it a reaction to the fact that competing factions are getting more and more heated? Are the different group protecting their own positions … or is there some truth here?

Like most situations there are many sides to this argument and there is some truth, and some myth in all of it. At the end of the day what has to prevail is common sense and what is good for the Canadian tax payer.

Here is Kevin’s take on the questions of the day!

Question 1. Should the government award mega-contracts to one winner in each of the four “pillar” contracts of the Shared Services initiative?

NO … for several reasons:

Ø I have yet to see an impact analysis by the government that would show the affect of awarding these contracts … they have had ten years to understand this, and it would be just plain wrong to proceed with no understanding of the impact.
Ø The Canadian government and the very large companies have not got a great track record of success with mega projects. The list of “failures” is long … and I am not pointing fingers, I think by their nature these projects are doomed to failure. (That could be the subject of its own blog entry).
Ø The award of one mega project that puts all the eggs in one basket is just too risky … even IF the companies involved had a great track record. Why would you do that? Spread the risk!
Ø The lack of competition WILL mean that the government will NOT reap financial reward from these mega projects.
Ø Even the “big guys” have to realize they will also be losers in a winner takes all scenario … if Bell Canada wins the network contract what happens to Telus, Allstream, Rogers et al?

My solution would be to take each of these “pillars” and award several large contracts under each “pillar” … spread the wealth and the risk. The contracts would be large enough to provide the “big guys” with some meaty projects, the Crown would get competition and if one failed there would be other successes to point at.

Question 2. What about the SMEs? Will there be a mass loss of jobs?

NO … there will be some loss of jobs and an impact on those companies that only operate in this market, which will be a hard loss to the local economy. Those people who do the work through the small guys today may well end up working for the “big guys” … or we may see some jobs lost to offshore solutions, which would be a worst case for Canada scenario. An impact analysis would give us clearer answers on this impact and there may also be ways that the government can provide some protection to the SMEs.

Question 3. Do the staff augmentation companies bring no value to the Canadian economy?

Rubbish!

Staff augmentation companies have a value proposition that is a huge part of the economic success of our nation. There is not a single large entity that doesn’t take advantage of the flexible workforce associated with staff augmentation. Whether it is armies of “muscle” to tackle peaks in demand, or teams of IT specialists to fill out project teams the value is clear.
We provide fast access to a skilled workforce that is larger than any single entity in Canada … and at very competitive pricing.
We manage the administrative burden of the large flexible workforce and offer our clients protection from the risks associated with co-employment.
Many of the large successful companies started from humble beginning as a staff augmentation company or independent contractor company.
The intellectual property created by many companies was delivered with input from contract resources.
The staff augmentation companies provide profits and taxes into the Canadian tax coffers, not some far away headquarters in another country.
Staff augmentation companies support our own staff, the communities in which we operate and are huge contributors to charities and non-profits.
Some of the largest companies in the world are staff augmentation companies … Manpower, Adecco and Randstad are successful multinational giants.

How will we get the right answer?

The right answer comes from a collaborative approach with all stakeholders bringing something to the table. Those stakeholders who feel they are threatened will protect themselves and that has led to the rhetoric … we need all parties to have input, and hopefully that is what is happening now.

The weather here in Toronto (and back in Ottawa) was very nice today … a warm, sunny day which always gets me feeling positive.

Why is that?

Spring is a time of renewal, it is a time when the Winter starts to feel like it is done and gone (although don’t tell that to my Calgary friends). The buds are starting to show and that amazing period of growth happens. When I arrived from the UK 27 years ago I was astounded at just how fast things grow in the Spring here, the grass goes from brown to bright green in what seems like an overnight spurt … the trees bloom and fill out and before you know it everything looks lush.

If only our economy could rebound in the same way … but I am feeling some confidence that the “Winter of our economic recession” is almost done! Just like the weather, there are signs of recovery and growth .. the markets have pickup up significantly in the last few weeks and we are seeing signs that companies are considering new projects. The orders are coming in and clients are making decisions again.

Maybe if we ALL think positive while we enjoy the warming weather it WILL spill over into the other parts of our life!

Are you ALL listening … POSITIVE THOUGHTS ONLY!!!!!

I have been writing this blog for more than three years now, the first blog entry was in January 2006. In that time I have posted 710 entries of which more than 440 have some relation to personal development … I guess you could be forgiven for suggesting that I’m pretty opinionated on the subject!

It is important to recognize your own strengths and weaknesses, and often when I write a blog entry it is based upon research or some article that I have read. I try to add my own perspective or throw in some of my experience and make the entry more personal. It does not however mean that I am an expert on the subject … or even any good at it!

One of the things that I am really bad at … is relaxing!

I am acutely aware that I am writing this entry on a Sunday morning at the office … which I have been doing ever since we started the company back in 1996.

When people ask me what I do for relaxation I talk about my motorbike; I used to mention soccer but now I have accepted it is a thing of the past and talk about my exercise regime; I also talk about reading.

The reality is that I SUCK at relaxing!

The demands of running a business are pretty significant, and switching off that little voice reminding me of the “tasks”, commitments and issues of the business just doesn’t go away easily.

I try the techniques … make lists so the brain doesn’t need to focus on them. That’s nice but you can’t make lists that address the unknowns of the economy, of major client changes, legislative issues or our changing world.

I try to take my own advice … worry about the things you can change, let the other stuff go! I’m pretty good at that most of the time, but sometimes there are just so many “balls in the air” it is nearly impossible to forget about the “issues”.

I take up hobbies … but business travel, or work priorities tend to get in the way.

I can look up relaxation on Google and find a ton of hits, a definition on Wikipedia, a reference to spas and getaways, some references to yoga … on and on. I’ve tried spas, done yoga and they don’t work for me.

So is there an alternative to relaxing? For me, it has to be taking my mind off work, which means it needs to be something that fits into my schedule, needs to be active enough that my mind needs to focus on it, rather than wander … and here I am back to the motorbike, exercise and reading a good novel!

Riding the bike required TOTAL concentration … most road users really don’t SEE bikes, bikes can accelerate quickly INTO or OUT OF trouble, so a wandering mind is not going to work.

Exercising vigorously is a great way to focus the mind on a goal … that is not necessarily business related. It makes me feel physically good, releases endorphins and allows me some grace from work.

I enjoy reading a good novel, but rarely find a time when I can do that … other than on vacation. So maybe I need to vacation more!

As I get older I can really relate to the hobbies people have that help then to relax … activities that I may well have “dissed” in the past do make sense, I just haven’t reached the point where I think they will work for me. I can’t see myself pottering about the “garden”, or golfing or collecting stamps … but I CAN see why other people like those things.

I guess I’ll find my answers, but meanwhile … back to work!

I subscribe to Soundview Executive Summaries, as I have mentioned many times before … a fantastic way to read a lot of business books and zone in on the few that you really want to buy, and spend time to read in depth. The service provides 8 page summaries of the books, with the main points in a condensed 20 minute read.

This month Soundview produced a bonus 13 page report about recessions, which referenced many management books that give advice for these times. The report ended with the three timeless truths about recessions.

1. Recessions happen … economists suggest that there have been seven in the last fifty years, 1960, 1969, 1973, 1980, 1981, 1990 and 2001. They can last as short as a few months (the 1980 recession lasted only 8 months) or much longer (the 1981 recession lasted 17 months). The dynamic and complicated economic environment in which we operate today really suggests that recessions are inevitable!

2. Recessions are PAINFUL! Nobody needs to tell us that, we are all living it! The economic uncertainty is crippling even to formerly strong companies. In this recession for instance January 26, 2009 is known as blood Monday because of the unprecedented number of layoffs that happened that day … amounting to about 71,400 jobs in the US alone.

3. The good news is that recessions end … and every recession has ended with good times for those companies that weather the storm. Economists are expecting an upturn in the economy in the second half of 2009 and that is almost here … so perhaps we don’t have that much longer to hold on!

Fittingly, the article ends with a quote from a great leader, Martin Luther King: “The ultimate measure of a man is not where he stands in moments of comfort and convenience, but where he stands at times of challenges and controversy“

Hang in there … and keep smiling!

We all need a lift every now and then … whether it is the markets, the economy, personal troubles, work troubles or just “the blues” EVERYONE could benefit from a boost!

This is your boost for the day!!!!!!!!!!

One of the first things you should do is to Count Your Blessings! I wrote a blog entry on this subject not that long ago with some suggestions, but basically some time spent on only positive stuff in your life (and there is lots of it) will always make you feel better!

Once you start this positive trend you will be Looking for the Good in Life, another blog entry of mine that references some of Kit Grant’s musings. The reality is that we are all capable of deciding our own mood, of determining our own destiny … take a read.

One of the best ways to feel good is to “hang with” Positive People. Seek them out, stay away from the negative influences in your life and get “infected” by the enthusiasm of the positive people you know.

Now that you are thinking good thoughts, feeling good and have been positively influenced by your positive friends YOU need to be Nice to Everyone! The act of being a NICE person will make you feel better. In fact it fits right in with John Izzo’s thoughts about the Five Secrets You Must Discover Before You Die. One of those secrets is to GIVE, unconditionally and without expectation … and it WILL make you feel good. Giving can mean time, money or just support … all of it means something to the receiver, and that is what counts.

I wrote a blog entry about what to do if you are Having a Bad Day … and really its the same if you are having a bad week, bad month or bad year … you have to be nice to yourself and do all of the above.

Treat yourself … take a few minutes and browse through these links, it will give you lots of ideas that can help you shake the blues!

SMILE … ITS CONTAGIOUS!

The economy is bad … did you notice?
Unemployment levels are increasing daily!
Companies are cutting salaries, imposing reduced work weeks, removing benefits and generally buckling down to make it through a tough economic time.
We are all a little (lot?) more stressed than we were a year ago!

Can you imagine what it must be like to be asking for money right now?

Charities and non-profits are under even more pressure at times like these … there is more demand on the food banks, the shelters and all the agencies. Increased stress means more violence in the home, more runaways, more homeless and more battered spouses.

Most if us that still have an income are watching our pennies, maybe cutting back on non-essentials and perhaps foregoing some luxuries. It would be a terrible thing if we cut back on our charitable giving. These organizations NEED our support more than ever and they are a part of our society and we need to dig deep and do what we can to help.

So give a little more; help out that homeless person, buy them a coffee and a donut; give the person in the wheelchair a loonie; drop some food off for the foodbank and give a few extra dollars to your charity of choice.

Remember that under different circumstances it could be us, or even our loved ones, looking for help!

The rumour mill has been rampant around the sale of Sun Microsystems, but the front runner through the process has always been IBM. Even when their first offer was rejected the “buzz” was that IBM was trying to get Sun for the best possible price and surely a compromise would be reached. Seemingly from nowhere, which shows how good Oracle is at keeping a secret, Larry Ellison’s company paid $7.4 Billion to buy Sun.

I read an article today that suggests Steve Ballmer from Microsoft was having trouble understanding why Oracle would buy Sun … I’m guessing that he’s just playing head games with Larry Ellison!

To me there are at least three reasons why Oracle bought Sun …

The first reason is the same reason that they have bought Siebel, BEA, Peoplesoft, Hyperion and in fact a total of more than 50 companies since 2005 … because they want to be a dominant player in the World. Larry Ellison has a huge ego, Oracle has been a super successful company by anyone’s evaluation and world dominance is probably a reasonable goal in Mr. Ellison’s mind!

Secondly, the trend in recent years has been the merging of hardware, software and services into one entity … with IBM as the model of success. One of the more recent examples of this was HP’s merger with EDS, bringing two of the world’s largest players together into a “full service solutions” company. I think we will see Oracle make some more strategic moves in the hardware arena to strengthen that part of its business, but ultimately clients will be able to buy an Oracle solution … end to end!

The third reason I think Oracle bought Sun was Java. Larry Ellison will want to make money from Java, it is everywhere and he will find a way to maximize his ROI from such a valuable asset.

Bets on his next acquisitions?

A browser maybe … Yahoo, Firefox?
A PDA company … RIM, Palm?
More hardware or storage … EMC?

Its fun to play the acquisition guessing game, but companies like Oracle are taking full advantage of the economic downturn to strengthen their offerings and position for super growth as the economy recovers. It will be an interesting case study for MBA students in the years to come.

A friend of mine sent me a link to an article about the value of volunteers to the Canadian (and of course any country’s) economy. The article was written in preparation for national Volunteer week that is coming up next week April 19-25.

Back in June 2007 I had written a blog entry about the benefits of volunteering, including some of the reasons why I volunteer on a number of boards and charities.

Lately, particularly as the economy tightens and running a business gets harder by the minute I second guess the enormous amount of time that I put in on volunteer activities. Having said that I still recognize, like the article above talks about, that there is a big need for volunteers, and if I don’t do it then who will?

There are however a few pet peeves I have around the volunteer world … which I thought I would share.

1. Those long winded meetings that don’t result in action! Hey I’m a type-A business guy what can I say?
2. Schedules that are made, committed to and then changed … its hard to keep moving schedules when I also have a business to run.
3. People (usually NOT other volunteers) who give me a hard time because they might have done something differently … IF they were doing the volunteer role!
4. In my fundraising role I hate those people that make me feel like I am begging!
5. Those people and organizations that take my volunteerism for granted … not something that happens often, but it happens.
6. People with opinions, who are unwilling to “jump in” and help.
7. The silent people who benefit from all the work and effort (particularly the industry association) but who don’t contribute.
8. The people who can well afford to give a little, or even a lot, but who avoid their responsibility.

All of these pet peeves shrink to insignificance in comparison to the satisfaction achieved in giving back. It feels good to know you are making a difference! It is also inspiring to work with the amazing people in the volunteer sector. These bright, committed and energized people devote their lives to the non-profit sector and it is fun to work with them.

So … next time a volunteer asks you for help, or for a donation or for ANYTHING, remember they are a volunteer! You don’t need to give … but you DO need to be gentle with them!

Back in November I wrote an entry called What To Do in a Recession … providing some basic advice to all employees about increasing their “employ ability”.

I have written about the subject several times and in various ways since that time. The most recent blog entry was called Its Tough Out There … and it gave some very tough messages from a well know management consultant and author, Tom Peters.

The reality is that success today is no different than success a year ago … what is different is the environment in which you are operating. When I wrote some Thoughts on Achieving Success in October 2008, the ideas there would be no different if I had written it five years ago. Having said that it is probably more important than ever to take those thoughts to heart and to create an action plan that you can execute!

Here are my observations:

Most people (please excuse the generalization … unless you fall into this category) are slow to accept change. If they don’t believe that they must change then they will do the same thing tomorrow that they did today and which they have been doing for the last number of years! I call these people dinosaurs … and I’m sure you can figure out why.

Most people (another generalization) that intellectually understand change is required, (a) don’t know where to start, (b) are not self-motivated enough to do anything about it; and/or (c) are too lazy to make the effort.

Those people that are willing to change and who actually DO SOMETHING about it, will be the winners, the survivors and the people who will reap rewards when the economy recovers.

Ask yourself some basic questions:

1. Am I bringing TRUE value to my employer? Am I putting in a fair effort every day? Am I efficient at what I do?
2. Is my attitude good? Am I a positive force in the workplace … or am I a whiner, complainer, back-stabber or any other kind of negative influence?
3. Could I get better … and am I doing something about it? Am I meeting my sales targets … if not am I figuring out why? Am I delivering good reports/code/whatever deliverable … if not, am I asking for advice, taking courses, investing in myself?
4. Does my job look the same today as it did a year ago?

These could be indicators that your job is in jeopardy, but also hints about what you might do to turn that around.

Some time ago I wrote a blog entry about Lifelong Learning. It might just be one of the keys to get you out of your rut! It could be the one idea that saves your job. As a business owner and entrepreneur I am always impressed by people that invest in themselves. I am underwhelmed by those people who just coast through their lives without opening a book, taking a course or striving to get better.

IF you could agree with me that by investing in your own development will pay back many times over, then just do it! Devote time every day (your own time) to reading about your industry. Take courses that will help you in your career. Get involved in your industry association. Join networking groups like Toastmasters, the Chamber of Commerce etc.

Here is a truth that I hope you never experience … a lot more people will lose their jobs in Canada in the coming months! Do everything you can to make sure you are not one of them!

After twelve years of running a business, through boom times and tough times, I think I have a pretty pragmatic outlook on the job. Every now and then through this blog I have provided some glimpses into my world as a CEO and owner of a small business.

When I have written about this subject I have tried to be realistic, because the thought of being a business owner is appealling to many people … until they realise everything that goes along with it!

I wrote a blog entry called So … You Think You Want Your Own Business, which talked about some of the risks associated with business ownership. In September 2008 I talked about risk again, in addition to the year end process in That Business Owner Feeling . In Thoughts on Achieving Success I talked about what people might need to do in order to be successful and potentially own their own business … assuming they still want to, after reading this blog!

Today I thought I would talk about one of the toughest parts of being a business owner, its also a tough thing for any manager … letting people go.

People will probably be the number one or number two challenge in most businesses, and maybe financing would be high on that list. You can’t have a successful business if you don’t have good people … and people, being human, will cause you all kinds of grief! (I know because despite some opinions, I am one of them). Because of that human factor there are a myriad of reasons why, as a business owner or a manager, we are faced with the prospect of letting people go.

There will be clear cut occasions where some action, attitude or even inaction makes it a cut and dried decision. We still agonise over it despite the clarity that it is absolutely the right decision. The conversation is tough, and could become confrontational or quite the opposite. The emotion is high and anticipation of a bad scene is cause for a sleepless night or two. IF you are a “thinker” then you will worry about the person’s family, their future and how they might cope. You will likely be a little generous with the “package” and hope that everyone moves on quickly.

More often than not the decision is not so clear cut. The person is not performing as well as they should, or personal circumstances have caused their performance to drop. You may invest time (often more than you should) in corrective actions, in working to fix the problems. Almost inevitably the decision needs to be made … and here you are again with sleepless nights. You second guess the decisions, you may even postpone it a few times, but in the end you have the “deed” to perform.

In the current economic climate many companies are “downsizing” to reduce costs as a strategy to keep the company healthy. Its a necessary business decision, but is probably one of the hardest meetings to have. These are good people, who under normal circumstances would not be let go, but economic circumstances force a decision. Again, there are plenty of good business reasons for the decision but it affects human beings and that is hard on them which weighs heavily on the manager or business owner who makes those decisions.

Over the course of twelve years I have had many of these meetings. I once flew West on a “red eye” to let someone go and flew back on the next evenings “red eye” in order to be back in Ottawa for meetings. I have had confrontations where we were seconds from calling the police, I have had meetings where I have been sure to have a few of the larger members of the team around … just in case. I have been verbally abused and physically threatened, and I have had people break down in tears and others beg to keep their jobs. Most people are very professional, they are almost always hurt and a little confused, but they hold it together and leave with dignity.

In every case I am affected. I feel their pain. I feel my own disappointment and failure that I wasn’t able to make it work, or that we hired a wrong person which wastes their time and ours. I worry about their next steps and I am sometimes a little concerned for my own safety.

Invariably the decision is the right one for all concerned … sometimes they are in the wrong job, sometimes they just need a serious wake-up call, sometimes they just need a change.

Intellectually I know these decisions are right, but these situations still get under my skin.

Just one more responsibility of a business owner.