Vanguard Magazine

40 JUNE/JULY 2017 www.vanguardcanada.com g gAME ChANGER See the full interview online Q What is your role in your different companies today? Three years ago, I hired a chief operating officer (COO) overseeing all three com- panies, and this has changed my focus significantly. Rather than getting involved in the day-to-day problem solving, I am focused on strategy, planning and net- working within the defence and aerospace industries. I am on the board of the Ca- nadian Defence and Security Industry of Canada (CADSI) and recently joined the SME committee of the Aerospace Indus- try Association of Canada (AIAC). I con- tinue to oversee the financing and bank- ing arrangements for the group. Q What was your worst moment? Early in my career, I worked as a business development officer for a packaging com- pany. Part of my training was to accom- pany senior sales personnel on sales calls. On one such call, I called a competitor's product "cheap." Thinking I would get an excellent review from the sales associ- ate, I got raked over the coals for using the word cheap. The lesson, you never refer to a competitor's product as cheap or inferior; you stress the advantages of your own. Q Step back and analyze your own journey; what is the takeaway you want to give to our audience? In my twenty-five years at Tulmar, I have experienced many business cycles. You must never give up and manage the busi- ness through all sorts of things. A few years back, I did an acquisition designed to ver- tically integrate one of our defence capa- bilities. For many reasons, the acquisition went badly, resulting in a very precarious situation for both me and the business. However, I learned from the experience, and the management team at Tulmar is more robust than ever as they worked tire- lessly to rebound from the misstep. Had we had a well-developed and purposeful strategic and operating plan we would never have undertaken the acquisition. In hindsight, it was neither strategic nor accretive to our core business. I encour- age all entrepreneurs to invest the time and energy to create and follow a strategic plan backed by an annual operating plan to guide execution. Q What people or organizations do you believe best embody the innovation mindset? The high-tech industry has an incredible mantra of innovation. It permeates the industry from the unbridled thinking of high-tech entrepreneurs to the investment capital that follows them. The industry's tolerance for failure in the hope of big wins and breakthrough innovation is sec- ond to none. The accomplishments of in- novators like Steve Jobs and Elon Musk are truly remarkable game changers for society, to say nothing of the economic impact. And these are but two examples of the thousands if not hundreds of thou- sands of high-tech innovators, each of whom embraces innovation and the risk of failure or reward of success that comes with it. If we could bring a fraction of this to traditional industries and manufactur- ing, just imagine the outcome. Q What are some of the biggest impediments to innovation for your organization or industry sector? The lack of tolerance for risk through the government procurement process is a significant innovation constraint. Typi- cally, government requests for proposal or tenders are highly prescriptive, leaving little or no room for innovative proposals or alternative solutions. The procurement process relies heavily on internal govern- ment innovation, sometimes in consulta- tion with industry, which makes it difficult for small and medium-sized enterprises to contribute. Q How has innovation become engrained in your organization's culture, and how it is optimized? Tulmar has some traditional products that have not changed much over the years so the innovation theme is recent for us. We have made it a point to hire young and in- novative engineering personnel to replace personnel that have recently retired. The use of IRAP funding has also assisted in pushing our R&D program. Through my tours of the shop floor to my executive team meetings, I'm hearing talk of inno- vation. The willingness to set aside budget and resources to innovate is permeating through our organization, which is a tes- tament to the strategic agenda we've set to innovate throughout the business. Q What is your parting piece of advice? Focus on the team. With the right people and a solid strategic direction, success is inevitable. To transition a business, founders must be prepared to "let go." This means building a team that can be trusted and empowered to execute on the strategic direction. To do this, founders must first take the time to "work on the business" and not just "in the business." Barney Bangs Owner and President Tulmar SafeTy SySTemS Inc.

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