Reports and publications

For information on obtaining a complete copy of any of the reports listed here, please contact the Leadership and Management Development Council of BC by e-mail at info@leadershipmanagement.ca

2005
	Developing Small Business Management Skills in British Columbia (Executive summary)
1998
	Moving Forward Update (Executive summary)
	Youth Entrepreneurial Development Study (Executive summary)
1997
	Best Practices: Literature Review (Executive summary)
	Best Practices Study (Executive summary)
1996
	Overview of Mentoring and Existing Mentoring Programs (Executive summary)
1994
	Moving Forward: The Vision of B.C. Business (Executive summary)

Small businesses represent a significant part of B.C.’s economy. As of December 31, 2003, the latest period for which there were statistics at the time of this writing, there were 359,600 small businesses in B.C., representing 98 percent of all businesses in the province. They account for almost 30 per cent of the province’s Gross Domestic Product (GDP), ship approximately $9.4 billion worth of merchandise to international destination annually and employ close to one million British Columbians.

However, this segment of our economy faces significant challenges. Statistics indicate that more than 80% of new firms fail within their first ten years of operation. Many of these firms fail because their managers lack the experience, know-how, or vision to run their businesses. However, research also indicates that about four in every 10 firms could have avoided failure had they sought help in dealing with their managerial shortcomings.

Previous studies undertaken by the Leadership and Management Development Council of B.C. (LMDC) have revealed that there is a wide range of leadership and management skill development programs, services and resources available in B.C. The primary focus of this initiative has been:

• To explore which types of skill development programs and services offered by small business service providers are being accessed by small business owners;
• To better understand the extent to which these programs and services are meeting the needs of today’s entrepreneurs, and
• To identify what small business owners/operators feel are the most effective formats for delivering business management training.

• Eight focus group sessions conducted with small business owners and service providers
• Research to identify the types of small business training that are being delivered by small business service delivery agencies in B.C. and to determine which training models have been successful in meeting the skill development needs of small business;
• Research on successful group mentoring projects to determine what features of this model contribute to its popularity and effectiveness.

FINDINGS
The eight focus group sessions that were conducted as part of this initiative involved 139 participants comprised of a mix of small business owners/operators (87% of the participants), as well as representatives from a variety of small business service providers.

The focus group sessions were held in the following communities:

• Grand Forks
• Nelson
• Penticton
• Smithers
• Squamish
• Vernon

Management Challenges Identified
When asked to identify the most significant challenges entrepreneurs are facing in running their business, the most recurring themes were the following:

• Hiring/training/retaining qualified staff and other human resource management issues
• Managing growth/change
• Integration of technology
• Marketing in a competitive marketplace
• Access to capital and financial management
• Time management
• Dealing with legal / regulatory issues

Types of Training Pursued
Small business owners/operators appear to recognize the need to improve their leadership and management skills and they go about accessing the information they need in a variety of ways. The time they devote to obtaining assistance in dealing with their business challenges is done through the following channels:

• Business management courses offered by Community Futures
• Chamber of Commerce events (Super Host and networking lunches/breakfasts)
• Industry/sector association programs
• On-line workshops/information/tools
• Workshops offered by other agencies such as Tourism BC, Columbia Basin Trust, etc.
• Group mentoring
• One-on-one counseling

Views on the Provision of Skill Development Programming
The following is a summary of the views expressed by the focus group participants regarding skill development programming for entrepreneurs.

• 1. Entrepreneurs have a need for practical information that can be immediately applied
• 2. There is a lack of information on available resources
• 3. The Internet is an effective delivery mechanism for providing business information
• 4. Government support for training is needed
• 5. Partnerships between service providers are needed
• 6. Entrepreneurs have a strong interest in group/peer mentoring models

Recommended Actions
The following recommendations are offered:

• 1. More effort needs to be devoted to marketing the skill development programs and services that are available to B.C.’s entrepreneurs.
• 2. Greater collaboration needs to be fostered at the local level between the Chambers of Commerce, Community Futures Development Corporations, and the local community colleges in making entrepreneurial skill development one of their key focus areas.
• 3. Financial institutions and other agencies involved in providing small businesses with the capital to start or expand their business operations should require that the business plans that are submitted by entrepreneurs include a skill development component for the business owner.
• 4. Entrepreneurs expressed their appreciation for the Internet as a helpful mechanism for accessing the information they need. Service providers should therefore consider producing web-based programs/services/tools as part of their skill development programming. Also, an on-line directory that would catalogue the various business help-related websites and tools, by category of interest, is needed.
• 5. More research is needed that would shed light on the benefits that accrue to small business owners who pursue a well-designed skill development strategy.
• 6. Both the federal and provincial governments need to seriously consider providing small business owners with some form of financial assistance to offset the costs associated with the pursuit of management skill development.
• 7. More well-organized, high-caliber seminar series that can be delivered in rural communities are needed.
• 8. More peer mentoring groups should be established in regional centres and rural communities across British Columbia.

Out of that survey, an examination of current literature on these issues and the input from a team of experts, the 148 page final report, entitled "Moving Forward - The Vision of B.C. Business", was released in June 1994. Unlike most reports that sit quietly on a shelf gathering dust, the Moving Forward document contained a call to action and became an instrument for change. A number of activities have since occurred, including:

• Leadership & Management Development Council of B.C. – formed as a direct result of the Moving Forward project and dedicated to enhancing leadership and management skills here in B.C.;
  
  
• Presentations to key organizations by the original project leader, Ian MacLeod, to:
  --> Conference Board of Canada – conference on Regional Economic Development (Nanaimo, May 29, 1997);
  --> UBC Centre for Policy Studies in Education – seminar on "Human Resource Development in a Changing Economy" (August 21, 1996);
  --> Canadian Council for Small Business & Entrepreneurship - 14th Annual Conference (October 17, 1997);
  --> UBC Centre for Policy Studies in Education/National Research Council of Canada - panelist at workshop on "The Learning Organization and Innovation in SMEs – The Role of Organizations, Skills and Learning" (April 9, 1998);
  
  
• Input into or participation in a number of programs including:
  --> B.C.I.T. - employability skills project and Leadership Degree program;
  --> U.B.C. (A.M.S.) - 1995 conference on the future of post secondary education in B.C.;
  --> local education projects in certain communities;
  --> Literacy BC's Workplace Literacy Advisory Council;
  
  
• Classroom To Career Work Experience Program – due to, amongst other things, the Moving Forward Project it became clear to the B.C. Ministry of Education that Work Experience should be a mandatory part of high school education. The Ministry of Education approached the B.C. Chamber of Commerce for assistance. The result was the Classroom to Career Work Experience Program, a cooperative effort by the B.C. Chamber that included a public relations campaign and a simple "how to" manual that encouraged and assisted businesses who wanted to become involved.
  
  
• Central Okanagan Teacher Librarian Association - used the document in preparing a submission proposing the development of a course on information literacy in the Kelowna School District;
  
  
• Various Chambers throughout B.C. – have used the Moving Forward document as a resource when dealing with provincial issues, as a basis for orienting new Board members and as foundation in the development of seminars on key issues, including:
  
  --> The Victoria Chamber used the Moving Forward document consistently since its release and have found it extremely valuable in support of a number of position papers and correspondence with various levels of government;
  --> The Kitimat Chamber committed to getting more involved with local education. Subsequently they have:
      -----> worked with the Kitimat Community Skills Centre and local high schools, in conceiving and implementing locally-funded community skills centers;
      ----->established a program for high school students entitled, "Experience in Industry" where students from across B.C. visit Kitimat for four days and see not only the local industry but visit the local high school and work with an industry employee in the category of the student's choice;
      ----->been involved in high school presentations and entrepreneur 11 and 12 classes;
      ----->extended invitations to students to attend the local Chamber's business-member programs;
  --> The Abbotsford Chamber made the Moving Forward booklet available to local business development and training organizations, their business members and the local business community at large and used the publication to plan and develop seminars and workshops, promote training, seminars and conferences, and inform local media on certain key issues. The Abbotsford Chamber summed up local-chamber enthusiasm for Moving Forward this way: "We were pleased to participate in the original process and delighted you are considering an update to this project. Similar to the original project and in conjunction with other business service organizations, we would be pleased to participate in the Phase II Survey."
  The success of the original project was due mainly to the support and participation of many organizations. It represented a true cross section of business input because of the direct contact with B.C businesses in every sector and in every area of B.C.

Since the original survey in late 1993 there have been significant changes in the B.C. economy and business environment. We have formed a new team to update the Moving Forward project, have approached over 230 business and professional organisations and 137 local Chambers of Commerce and have distributed and received back a new survey of business. We are now in the process of determining whether the issues and their priority have changed and whether to revalidate or update the originally recommended actions.

Many local Chambers and business organizations/associations have already confirmed their support by distributing the questionnaires to their membership for the update of Moving Forward. Other individuals or groups have committed their future involvement in this project, once the results are in from the questionnaires.

We would like to thank all of those individuals and groups for assisting us to develop a platform on which to affect positive change for everyone affected by the BC economy. By working together we can make a difference. Thank you for your continued support and enthusiasm!

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Youth Entrepreneurial Development Study 1998
Executive Summary

Study to Identify Gaps in Youth Entrepreneurial Development in B.C.
The "BC Youth Entrepreneurship Advisory Committee" (BCYEAC) is made up of agencies in British Columbia that are involved with Youth Entrepreneur programs. The BCYEAC recognizes that the design and delivery of self-employment programs for youth should reflect the needs of young entrepreneurs, be easily accessible to them (physically and otherwise), and be delivered in a coherent, coordinated and seamless manner. In 1998, the Committee commissioned a study in order to explore the development of a joint youth entrepreneurship strategy that would address these issues.

The purpose of the youth entrepreneurial development study was to:

• conduct a situational analysis regarding the need for, supply of, and use of youth entrepreneurial programs and services;
• identify what gaps or barriers may exist that make it difficult for youth to obtain the assistance they require; and
• investigate options and develop recommendations regarding how the gaps may be filled, the barriers can be addressed, and the existing programming can be better integrated and coordinated.

The BCYEAC study involved several methods for collecting information from a variety of different sources, including literature reviews, telephone and face-to-face interviews, field trips to seven different communities, and focus groups representing both agencies and young entrepreneurs. The following is a sampling of some of the major findings and conclusions of the study:

• The supply of programs for entrepreneurial youth is increasing
• Demand for programs is strong and is expected to continue to grow
• Youth entrepreneurs are generally satisfied with the services they have received
• There is no single programming area where gaps could be said to exist across all areas of B.C.
• The nature and extent of the youth entrepreneurial program gaps vary from community to community based on the characteristics of those individual communities (ie: size and location, structure of local economy, focus and approach of delivery agencies, level of program coordination)
• Reflecting the increasing demand, there is a need to expand the services available to young entrepreneurs (eg: increase post-program contact, and entrepreneur emphasis within the school system)

The study also brought to light some of the factors that are key to the success of youth entrepreneurship programming. These include:

• Local control of program design and delivery
• A dedicated and trained staff (eg: enthusiasm of those working in this field), consistent program continuum, and a practical training component in program

The study presented recommendations to provide BCYEAC with options for action to improve the design, delivery and promotion of programs and services for young entrepreneurs. Some of the recommendations are outlined below:

• Hold a provincial conference as a means to encourage local representatives to form local committees and to design a comprehensive strategy
• Encourage the formation of youth entrepreneurship committees at the community level
• Designate and empower delivery agents in each community
• Ensure programs are flexible at the provincial level
• Increase the resources available in the regional centres
• Increase the use of technology to service-isolated centres
• Improve communication and coordination between the regions and central agencies
• Mix ages in training classes
• Ensure that programs are evaluated on long term results
• Increase the use of mentors
• Deliver programs in such a way that they build momentum
• Communication is key to progress. The variety and amount of activity in this area indicates that clients, program designers, delivery agents, the urban and rural areas need to be consulted and to be kept up to date on available resources and opportunities. This task requires a central, multi-agency committee like the BCYEAC.
  

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Best Practices: Literature Review 1997
Executive Summary

This literature review was commissioned by the Leadership and Management Development Council of British Columbia to review relevant research in order to better understand specific issues affecting the leadership and management capabilities of small and medium-sized enterprises (SMEs) in B.C. To conduct the review, the LMDCBC reviewed approximately 75 studies, contacted 30 individuals and organizations, and visited more than 50 Internet sites related to management development and/or small and medium enterprises. In addition to reviewing studies published in journals the LMDCBC made an effort to identify pertinent studies produced by government departments, private sector firms, business associations, or other sources. The review was used to identify any skill gaps or needs that may exist; and better understand how such gaps or needs might be addressed.

There are a number of significant gaps in the literature, particularly as it relates to conditions in British Columbia. For example:

• There are very few studies that measure management and leadership skills currently in place. We have virtually no information on the current skill level amongst SME owner/managers in British Columbia
• Although a great deal of literature is devoted to discussing how to address the gap in leadership and management skills in SMEs, few studies have evaluated the size or extent of this perceived gap. In general, the business community, training providers, and academics believe that businesses must develop their management skills in order to become or remain competitive. However, individual managers and owners do not perceive a pressing need to develop their own management skills.
• Much of the literature is based on the assumption that there is a relationship between level of management skill development and business performance. While this may very well be true, this linkage was not evident from any of the literature we reviewed. In fact, a few studies that did try to link business performance with a number of management practices found that, if anything, there is a negative correlation between management training and business performance. Surprisingly, there are very few studies that evaluate the value of management development to businesses.
• A great deal of management development literature is concerned with the design and delivery of management development programs and services. Again, we were surprised to find that there is almost no literature that evaluates the effectiveness of training and development alternatives. Despite the abundance of literature dealing with best practices and discussions of current practices, almost no empirical studies have been done. Virtually all of the studies reviewed were descriptive and relied on small, non-representative samples and anecdotal evidence for their conclusions.

Despite the limitations, we are able to draw the following conclusions regarding leadership and management development:

• The key skills needed for SME survival and success are seen to be a mixture of hard and soft skills.
• More than three-quarters of management learning currently takes place on-the-job.
• Including both formal and informal training, approximately one-half of the Canadian SMEs now provide some management training and an even greater proportion provide other kinds of training to some of their employees
• There are varying perceptions with respect to leadership and management skill gaps in small and medium-sized enterprises.
• The weakest areas of management development for SMEs are human resource management and strategic planning.
• The skills that SME managers are most interested in developing are mainly technical and functional.

There is a wide range of management and leadership development alternatives available to SME owner/managers in British Columbia.

• Benchmarking tools and diagnostic services.
• Counseling and consulting services.
• Information resources.
• Short courses.
• Universities and community colleges have a variety of small business management offerings ranging from individual courses to more comprehensive diploma and degree programs.

A variety of constraints on owner/managers conspire to prevent further development of their management and leadership skills.

Poor design, delivery or marketing of training and development alternatives also work to prevent further development of leadership and management skills.

A wide range of actions could be taken to promote management development for SMEs in British Columbia.

There are many interesting initiatives aimed at small business management development underway which BC business should be aware of

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Best Practices Study 1997
Executive Summary

The Best Practices Study was commissioned by the Leadership and Management Development Council of British Columbia to address one of the conclusions put forth in the Moving Forward report: that leadership and management of our businesses is both a strength of the B.C. economy and an area that needs development in order to become more competitive. The report is based on a literature review of best practices and innovative approaches in the United States, the United Kingdom and Australia.

In reviewing trends and best practices, it soon becomes apparent that the similarities across the countries reviewed far outweigh the differences. Trends and best practices that are common to most are:

• Reflecting the changing business environment, there is an increased focus on internationalism, technology, and innovation;
• The definition of management competencies has been broadened to include "soft skills" such as people skills, leadership skills, entrepreneurship, communication, and networking relationship building;
• Improving access to, and the appropriateness of, training for SME managers is a high priority for government and for training institutions.
• There is an increased emphasis on continuing education and life long learning as opposed to simply pre-career training;
• Training is shifting from lectures and management theory towards real-life cases and hands on experience.
• There is a movement towards delivering training on-site rather than at training institutions.
• Many of the training programs are being customized to include specific business issues and problems faced by the company as course material.

In each of the countries examined, it is recognized that there is considerable room for improvement in management training and skills development activities. Towards this end a number of initiatives have been developed in each of the countries reviewed. One of the major findings is that, with the exception of the Japanese model, most of the initiatives are transferable to British Columbia. The approaches that would appear to have the greatest applicability to B.C. are:

• Using the Internet to deliver and support management development activities.
• Establishing a provincial or national benchmarking service.
• Developing an on-line training program database.
• Establishing a mentoring program.
• Establishing an accreditation system for managers.
• Promoting evaluation and accreditation of programs and trainers.
• Establishing study tours.
• Promoting the use of new technologies.
• Promoting industry driven research and supporting the dissemination of the results of that research.
  

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Overview of Mentoring and Existing Mentoring Programs 1996
Executive Summary

Mentoring has the potential to play a significant role in enhancing and developing the leadership and management skills of small and medium-sized business owners and managers in British Columbia. As a learning and teaching tool, mentoring is by no means a new one. Many entrepreneurs have drawn informally upon the existing experiences and knowledge of those who have already "walked the path." It is probably the most ancient teaching method in history. In fact, the word "mentor" comes from Mentor, the name of the man who Odysseus, the King of Ithaca, asked to look after his son while he was at battle in the Trojan War.

The value of mentoring is a given. The question at stake, therefore, is not "Should we promote and encourage further mentoring among business owners?", but "How can we facilitate greater mentoring among business owners?"

The purpose of this study is to provide a launching pad from which to develop an effective strategy for promoting mentorship among entrepreneurs in British Columbia. Several programs from both Canada and the United States have been examined with respect to their structure, delivery and administration. The majority of those reviewed are aimed at entrepreneurs, but there are also some which are not and have been included simply to demonstrate alternative structure or delivery options.

This report was not intended to put forth recommendations as to which model would be most suited to development of a program for British Columbia. It is intended to provide a succinct overview of options, possibilities and design considerations.

Within the overview, four basic models for mentoring were determined:

• One-On-One Matching
• Advising/Counseling
• Group Mentoring
• Electronic Mentoring

Several existing programs have been examined individually under each of these categories. Information on each program was obtained through telephone interviews and a review of program materials.

While structure, delivery and administration are of primary importance, there are also other program design considerations that must be taken into account. Mentor training, for instance, is considered by some to be extremely important to the success of a program. Close monitoring of participants of a program is also a key to maintaining satisfied mentors and proteges.

Common problems encountered by mentoring programs were revealed through research and interviews to be:

• Lack of time commitment on the part of the mentors;
• More administration than anticipated;
• Mentor dissatisfaction (feeling that an exchange is too one-sided);
• Personality conflicts among participants;
• Apprehension by proteges to trust mentors;
• Fear of liability on the part of mentors; and
• Inability to cope with rapid uncontrolled program growth.
  

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Moving Forward: The Vision of B.C. Business 1994
Executive Summary

The world economy, and with it the economy of B.C., is going through a dramatic restructuring, one which we must adjust to or be left behind. That change creates new demands on business - demands which can only be met through cooperative efforts.

In the Moving Forward project we have taken a positive and proactive approach in looking at the real issues facing B.C. businesses and developing recommendations and actions to deal with those issues. Ultimately, our objective is to improve the economic conditions in which B.C. businesses operate and, in turn, improve the well-being of all British Columbians.

This project was commissioned in March 1993 as an initiative of the B.C. Chamber of Commerce. Seventy other business, industry, sectoral and professional organizations joined the project to develop a platform from which B.C. business could initiate action to enhance the economic well-being of the province. The results of the project very clearly demonstrate that there is a need to make substantial improvements to our business environment.

This report identifies many of the issues and challenges facing business and contains a statement of business principles around which all business planning can be measured. Most importantly, the report contains a series of recommendations for business and governments and perhaps other stakeholders in the economy, together with some specific action plans to implement those recommendations.

The project included five distinct parts:

• Questionnaires – Over 600 businesses, employing an estimated 140,000 people.
• Interviews – In-depth interviews of 22 business executives.
• Existing Expertise and Literature – An extensive review was made of existing literature.
• Final Report – The presentation of the study results.
• Organization Feedback and Final Conference – A draft of the final report was sent to all the business organizations involved in the province.

The report includes surprise findings such as :

• Management skills ranked number one as the most critical issue facing B.C. business.
• Only businesses with sales over $25 million considered global competition an issue, and even these businesses did not rank it as a top issue.A list of the top issues that BC businesses feel need to be addressed to make BC businesses more competitive.
• A series of general policy and business action recommendations following each of the 20 chapters.
• Priority lists provided by many industry organizations identifying issues, from an industry perspective, and their recommendations for responding to those issues.
• A series of action steps to work in conjunction with the structural and process/workplan.
  

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