Holistic approach to growth builds successful companies, communities – and economies

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While public companies garner the majority of news coverage, it is private businesses – from behemoths such as Jim Pattison Group and McCain Foods to the newest tech startup – that quietly drive the Canadian economy and create jobs.

Unlike their public counterparts, which must deliver results to shareholders every quarter, private businesses have more freedom to look at a longer horizon. "When you hear about companies in the press, the focus is often on quarterly earnings reports or revenue growth – by necessity, on the short term," says Bill Brushett, national clients and services partner with Grant Thornton LLP, a professional-services firm.  "I would challenge anyone to find a private business owner who thinks that way."

This is just one reason why private business owners are able to "drive growth in a much more holistic way," explains Mr. Brushett. "They're not only thinking about next year, but often about the business under the next generation of leadership."

One of the starting points for successful holistic growth among private businesses is an awareness that they are not separate from the communities in which they operate, says Perrin Beatty, president and CEO of the Canadian Chamber of Commerce.

Companies that adopt this approach help enrich the quality of life and culture of local, national and global communities, he says.

"They tend to do better financially as well, by building relationships with customers, suppliers and other stakeholders that drive value for them down the line," adds Mr. Beatty.

On a state visit with Governor-General David Johnston to Ghana and Botswana in 2013, for example, Mr. Beatty saw this principle in action on a Canadian mine site. "We heard from members of the local community about the way the mining company consulted with them in making development decisions. As a result of that process, people in the community reported that they felt they were part of the project," he recalls. "These efforts build lasting relationships that are beneficial to everyone involved."

Closer to home, Toronto-based Canaccede Financial Group Ltd. has successfully grown its core revenues by strategically "investing in the right people and technology at the right time, even when the need preceded the income," says Scott Coffin, president of the company's investment services division.

Launched in 2008, Canaccede buys and manages consumer loans and credit card accounts from other financial institutions. "It's critical for us to be selective about the markets we choose to participate in, and to be very disciplined about the investments we make," says Mr. Coffin.

One of Canaccede's new endeavours, a consumer-lending division, has been almost four years in the making. "It's a long investment cycle," he points out. "In its simplest expression, a consumer-lending business requires marketing strategies and technology platforms, as well as the right types of lending solutions and products."

For entrepreneurial firms that "may not be operating from the most efficient capital base," it's also essential to attract the right lenders, he explains. In order to do so, "we've worked closely with Grant Thornton and our lenders, from the beginning, to constantly improve our financial-management discipline and reporting processes, adopting accounting standards long before that was required."

O'Regan Automotive Group in Nova Scotia also demonstrates the benefits of long-term strategic growth, says Mr. Brushett. The third-generation family company, launched in small-town Nova Scotia in 1915, now employs more than 700 people in the Halifax-Dartmouth region.

"We're always looking for operating synergies, such as centralizing our used-car reconditioning and contact centres," says Sean O'Regan, the company president.

O'Regan Automotive also developed proprietary software to leverage the size of its organization, which benefits its customers. "If someone wants to trade in a Chevy truck for a new Toyota, for example, our Chevrolet dealerships can bid on it electronically, and put together the best possible deal for the client," says Mr. O'Regan.

Being responsive to market demand has also been important in the company's success, he adds. "Due to the franchise nature of our operations, we're very much a new-car business. But as demand for used cars has increased, we developed our own 'Green Light' used-car reconditioning and certification. We've also gone into the non-reconditioned, wholesale market in a big way over the last years."

The result, he reports, is a 15 per cent annual increase in used car sales, with a 20 per cent gain expected last year.

One of the foundations of the company's success is investing in its employees, for example by employing two full-time training professionals and treating all managers "like business owners," says Mr. O'Regan.

Starting about 13 years ago, the company began including all managers in dealer-development events, and sharing all financial information and reporting with them. "It's added about 40 per cent to our bottom line," he reports.

Such strategic, holistic growth is an approach that strengthens businesses and Canada's economy over the long term, as well as improving the communities in which the businesses operate, adds Mr. Beatty. "It's something we should be celebrating more."

Private business owners are able to "drive growth in a much more holistic way. They're not only thinking about next year, but often about the business under the next generation of leadership."

New award honoured strategic success among private business

Unlike public companies, private businesses rarely get a chance to celebrate their strategic excellence. This is something that the Canadian Chamber of Commerce and Grant Thornton LLP aim to change, with the Private Business Growth Award that was launched in 2013.

The prize recognizes privately held Canadian businesses with annual revenues of $5-million or more that are successful at creating growth "beyond the top or bottom line."

"Companies committed to achieving long-term success must look strategically across all core aspects of their business to fully achieve their objectives," says Phil Noble, executive partner and chief executive officer at Grant Thornton.

There are eight measures of success considered for the new award:

Innovation, including new ways of working;

Product and service development;

Expansion into new domestic or international markets;

Development of people and culture;

Improvements in the efficiency and effectiveness of internal processes;

Improvements in stakeholder relations;

Improvements in financial measures or governance;

Leadership through a combination of both reason and instinct to grow the business.

"Growth isn't always about being bigger, it's about being better," says Perrin Beatty, president and CEO of the Canadian Chamber of Commerce. "To continue to strengthen the Canadian economy, we believe businesses must be encouraged to think beyond the next quarter's results."

Finalists for the award were welcomed as the guests of honour at a gala dinner at the Royal York Hotel in Toronto on November 19, 2013, where the winner was announced.

The winning business had its accomplishments highlighted on the Private Business Growth Award website, in print advertisements and in a news release. In addition, it received a one-year complimentary membership to the Canadian Chamber of Commerce as well as accounting and/or advisory services from Grant Thornton valued at $10,000.

"As a professional-services firm, Grant Thornton is very focused on serving private business in Canada, and has been for many years," say Bill Brushett, national clients and services partner at the company. "Every day, our people get to see great, successful companies in action. It's really inspiring."

From market to market and city to city, private businesses drive economic activity, he adds. "In partnership with the Chambers of Commerce, which are in every major city and town across the country, we felt it would be a great idea to celebrate their strategic achievements and success."

This content was produced by The Globe and Mail's advertising department, in consultation with Grant Thornton. The Globe's editorial department was not involved in its creation.