ENTREPRENEUR: THE INNOVATORS Delivering a better world

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financial post photo PROJEX co-founder Barry Brad says the company�s new approach has saved clients millions of dollars. (CALGARY HERALD)

In many ways it's the classic entrepreneur story. Barry Brad and Robert Zunti launched Calgary-based PROJEX Technologies in 2000 after seeing a need for a more flexible, innovative engineering firm to serve Alberta's energy industry better. A little more than a year ago, the company expanded its vision from delivering better engineering solutions to developing a better world through innovation. The change came from some deep internal assessments and the realization Canada's energy sector needs to get better in order to compete globally. "We recognize these shifts are happening and we also realized that while there is no one set formula to introduce new thought and innovation to an organization, the foundation for us is with our vision. It's everything we do." It's also what could lead to breakthrough change. Mary Teresa Bitti spoke with Brad about the evolution of PROJEX and the energy business and how the company is driving innovation.

Q Why was a change in vision important to help take the company to its next stage of growth?

A It was the evolution of what we were doing, where we were going and having a pretty good read and pulse of what was going on in the market. PROJEX delivers engineering services to the Alberta energy industry. We changed our company vision to focus on innovation so we could fully contribute to the next wave of development that is about to happen. Our clients have some very large projects, and before they commit that capital, they need to be sure they are being as efficient as possible. It takes an innovation-based culture in the company to create the right environment to ask different questions and bring new ideas to the table. It has only been a couple years since we made this change and we have already saved clients hundreds of millions of dollars.

Q How does your change in vision translate into day-to-day operations?

A There is a change happening in the industry, one that needs to happen as we become more and more focused on our global footprint to supply energy to the world. Our approach to providing the best solution is to partner with our clients to deliver breakthrough benefits. Expanding the vision stimulated different questions about our processes and our customers' processes, what was done in the past and how we can do things better. Our clients are very knowledgeable about their business and they are great at making sure we understand their business objectives, not just the tactics of a specific project. Once we have that context, we can start to work on ideas that our clients can use immediately on the project and then apply to other projects, so the efficiency gains create a compounding benefit on their cost reductions. We focus on the areas of the projects that can create the biggest impact in the shortest amount of time. The key ingredient for us is that we have the right questions to ask that drive the innovative ideas and we have the right collaborative process internally to capture and implement those ideas.

Q How do you define innovation?

A We define innovation as a new idea or approach that has a measurable benefit for our clients' business.

Q How do you drive innovation through the organization?

A We bring it up in our discussions and the activities we're working on for our clients and how we manage our business. We reward it. We embrace it. We value it. Everyone is very clear on the objectives. Our people are strong, independent-thinking, talented engineers and we want to provide the resources and challenges and opportunities that allow them to thrive. Innovation is everyone's job at PROJEX. It's part of our DNA. We want to challenge the status quo. Our clients trust people who have good ideas and can prove them, and specifically if they can prove them with measurable change inside the business and industry.

Q Why was it important to create an innovation group?

A Ideas have to be focused. If everything is a priority, nothing is a priority. You have to find common themes for change, higher-value items, and to make sure those discussions happen across the company. Sometimes we see themes develop across multiple projects, and you want to use that to apply levered change to multiple clients. That's how industry change is going to happen.

Q PROJEX has been working on a large R&D project that is entering a commercialization phase. Could you tell us more about the project, what it means for the industry, and more specifically for PROJEX?

A We are very excited about this. We have offices in Calgary and Halifax. We asked both offices to collaborate on an industry-wide problem that many of our clients face. That problem is how to control the cost, schedule and quality of their well pads and facility construction. As development continues to grow, our capacity to have that work completed on-site or in Alberta is dropping. It is becoming more economical to build off-site and drop more turnkey products into the field to be connected instead of constructed. We put together a really eclectic group of engineers with different backgrounds to work on this. Over the course of the last year, we have created numerous significant innovations to the design of the well pads in particular, that are ready to commercialize. It has taken millions of dollars in R&D to get it to this point and we are now ready to go to the fabrication shops with an RFP. It's a new revenue stream that allows us to add higher value in the supply chain. It will be ready and available this year.

Q How do you see PROJEX evolving from here?

A As the country has become more aware of our approach, we are seeing a higher quality of applicants from all over Canada. We love that because it means we are going to continue to get a mix of experience and backgrounds. People want interesting, challenging work, and lots of it. Some clients have recognized this change and we are seeing even more collaboration between the teams because of it. If you respect someone's thinking, you tend to want to talk to them more. It's a simple concept but hard to do well. It has taken us years to get to this point.

-- Financial Post

A JOINT VENTURE WITH BDC

Insight:

Right talent mix drives

success

Attracting and retaining quality employees is essential to the success of any organization.

"Having access to good talent should rank high on the agenda of any business owner," says Gina Gale, vice-president, financing and consulting, at the Business Development Bank of Canada. Competition for top performers is intense in today's tight labour market, she says, and employers need to respond by increasing their human resources efforts. "If you have the right people who are aligned with your business objectives and vision, you can focus on the longer-term business strategy," Gale says.

She says the search for talented employees should be extensive, covering various generations, diverse backgrounds, geographic areas and existing and potential new employees. "Recruiting young employees is key because Canada's demographic is changing," she says. Social media such as Facebook can be useful in this regard. "Employers should be embracing social media because it can attract a wider pool of candidates and give a much broader geographic reach. Spread your net widely, market your company and build its presence in your own community."

Greater visibility and an emphasis on networking are likely to increase the interest of potential employees she says. She also highlights the value of loyal employees as "one of the greatest referral source of people that are going to fit into the company's culture." Another key aspect of a successful human resources strategy is focusing on the training and development of current staff. "Training should be at the top of your priority list," she says. "Know your talent pool and use existing employees where you can. By developing your internal employee base and accessing the skills within the organization, top performers will feel they have a career path and be engaged in the organization."

Retention of quality employees is another important part of the equation. This is achieved in part by "growing your own employees, making sure they get feedback and have the means to assess their performance quickly. Employees who feel positive are more likely to be motivated." The integration of new employees is equally important, she says. "Don't underestimate the importance of an effective on-boarding process. Spread orientation activities over several months to keep them engaged. Make sure they feel part of the team and understand the organization." Most effective of all in overcoming potential labour shortages, she says, is ensuring the business empowers its staff and offers a collaborative, positive working environment. "The bottom line is that people have to enjoy their place of work. They like to join and stay in an organization that is growing when they are growing with it," Gale says. "The employer of choice has to build a public image, be able to compete for top talent, compensate employees appropriately and include different generations of employees."

-- Financial Post

Republished from the Winnipeg Free Press print edition March 12, 2013 B7