MEMBERTOU FIRST NATION: Building the Band and Building the Brand

Transcription

1 MEMBERTOU FIRST NATION: Building the Band and Building the Brand Keith G. Brown, Ph.D. Vice President, Development Associate Professor, School of Business Cape Breton University Phone: (902) Fax: (902) Joanne Pyke, MBA Assistant Professor, School of Business Cape Breton University Phone: (902) Fax: (902)

2 MEMBERTOU FIRST NATION: Building the Band and Building the Brand 1 On July 18, 2006, the front page headline of the Cape Breton Post, in bold type, announced, Membertou, CEO part company Bernd Christmas stated there were philosophical differences on plans for further growth and development and that his resignation is effective September 1, Chief Paul was emotional in his public thank you to Mr. Christmas and thanked him effusively for his contribution to the community growth. Chief Paul recruited Christmas to support his vision and new image for Membertou. He is now faced with new concerns amidst Christmas s departure. With his departure, the brand image portrayed and personified by Membertou s CEO may be lost or be difficult to replicate. Background Membertou First Nation has a population of approximately 1100 residents (See Exhibit 1). This reserve was developed in 1915 and was originally located along a main artery, Kings Road in Sydney, Nova Scotia. Known then as the Kings Road Reserve, residents remained at this location until Some citizens of Sydney did not want a Mi kmaq community on the periphery of Sydney and by an order from the Exchequer Court of Canada the settlers were relocated to their current area. 2 Membertou First Nation is one of the few First Nation Communities within an urban setting. Historically, the City of Sydney and Membertou have had a usually benign relationship. Residents of Membertou lived in their community, went to high school in Sydney and few worked in their home community. How times have changed. One of the largest sustained commercial building booms in Sydney has been in Membertou, which is removed from the downtown of Sydney and more than 500 of Membertou s 1100 residents now work for Membertou s businesses and operations. There are the beginning signs of affluence taking root in Membertou which may have some residents of Sydney looking with jealously towards the development while others celebrate the success. During the past decade or so, Membertou has undergone a dramatic change from a state of economic despair to one of economic prosperity. The key players in the successful economic development and branding of Membertou are Chief Terry Paul and CEO, Bernd Christmas. They have taken Membertou from its former position of financial hardship to its current situation as 1 Acknowledgement, Nathan MacKinnon, Cape Breton University student researcher. 2 Scott, Jacquelyn Thayer Doing Business With The Devil. Halifax, NS: Atlantic Institute for Market Research.

3 one of the most economically sound First Nation communities in Canada. Over the past eleven years, Membertou s budget has grown exponentially from $4 million to $65 million today. The Membertou Model has been highly publicized within the federal government, First Nations Communities, business publications and through a broad range of media. Bernd Christmas was a regular presenter or key note speaker nationally on the business conference presentation circuit, and he and Chief Paul were and continue to be much sought after participants in aboriginal economic policy review. Bernd Christmas, Terry Paul and the Membertou Miracle were seen as synonymous. Bernd Christmas Chief Executive Officer Key Players Bernd Christmas has been CEO for more than a decade. Chief Terry Paul targeted Christmas as someone who could make a difference at Membertou and convinced him to take on this position in Chief Paul wanted him to be a spokesperson for Membertou and saw Christmas as an asset to branding Membertou. The first Mi'kmaq to become a lawyer in Canada, Bernd Christmas obtained his law degree in 1991 from York University in Toronto as a graduate of the Osgoode Hall Law School. Christmas previously worked on Bay Street, Toronto with Lang Michener where he implemented the firm s aboriginal law practice group and specialized in corporate/commercial and aboriginal law. Bernd Christmas, as a child of a military family who moved often within Canada, did not reside or grow up in Membertou. From his past experiences, Christmas was accustomed to negotiating deals with government and business officials. Focusing on partnerships, joint ventures and exploring new opportunities. Membertou Development Corporation under Mr. Christmas' leadership, fulfilled many of its goal of creating wealth, prosperity and employment for the Membertou First Nation. Chief Terry Paul

4 Chief Paul has been recently re-elected Membertou s Chief for the 21 st year. The message that has been sent to Chief Paul from his community is clear- the redevelopment of Membertou is working and the community is supportive of his direction. In his formative years, like many young Mi kmaq before him, he journeyed to the United States in search of work. He became aware of some of the developmental work that Boston area universities were doing with First Nation communities in the areas. This early introduction was to have a lasting effect on Chief Paul s views of his community and possible future development. Chief Paul is a corporate strategist dealing with government and business officials. He is the face of the people and key negotiator between Membertou, non-aboriginal communities and federal, provincial and municipal governments. His vision for Membertou of self sufficiency has been at the core of the community s journey towards economic prosperity. Dan Christmas Senior Advisor Although Dan Christmas takes a less visible role in media relations, he is still a very skilled negotiator and bridges the gap between middle-management and the Aboriginal community. Christmas, born in Membertou, is the Senior Advisor for non-aboriginal partners in government and business. Christmas also represents the Band on the Mi kmaq Treaty Rights Committee, and serves on the Union of Nova Scotia Indians Technical Committee. 3 Chief and Band Council Membertou s Band is comprised of competent managers and residents of Membertou. The Band s activities rest in the hands of the Chief and Council operating like a Board of Directors of a commercial organization (See Exhibit 2). There are divisional managers at Membertou who have assumed a problem-solving role. Band members are encouraged to consult these managers, using the Chief and Council as their last resort to resolve issues. The same Chief and Council have occupied most of these roles at Membertou for over twenty years. Membertou Development Corporation Membertou s Tangible Brand Elements 3 Scott, Jacquelyn Thayer Doing Business With The Devil. Halifax, NS: Atlantic Institute for Market Research.

5 Membertou Development Corporation is the new banner name under which all other operations occur. Its name is the cornerstone of Membertou s relationships with its customers. Its name sets the attitude and tone for Membertou and connects the corporate name with developing goods and services Membertou can provide. ISO 9001 Compliant Membertou has become the first aboriginal community in Canada to become ISO 9001:2000 compliant. This designation has opened many doors for this small community and has allowed Membertou to explore business opportunities in various industries that otherwise would not have been possible. This ISO standardization is recognized worldwide as the benchmark of quality management systems. The decision to pursue and obtain the ISO 9001 rating was a clear attempt to speak the language of business. Membertou was clear with its messaging; we are open for business, we are professional, we are accountable and our two worlds are compatible. Corporate Office Location The establishment of Membertou s Corporate Offices at Purdy s Wharf Tower on the Halifax waterfront was another important evolution of the development of a strong brand image for Membertou. Located on the 17th floor in this prestigious office building, Membertou announced to the corporate world that it is ready to do business and ready to meet executives in the provincial capital. Conversely, the CEO s office in Membertou is located in an aging band administration office which is in stark contrast to the plethora of new building within Membertou. These two locations are perhaps a paradigm of the two Membertous. One is sleek, modern and professional, while the other is somewhat dated and worn. The construction boom has clustered several similarly designed buildings which would be at home in any prosperous Canadian city, adjacent to aging homes and small retail outlets. One entrance to the community goes directly to the new area while the other enters the older residential/commercial section. Recent media stories have reported on Membertou s strategy to develop a connector road, through Membertou, connecting two of Sydney s busiest arteries. There is the potential of bringing substantially increased traffic through the community. The new Membertou is one of professional opportunity and material purchasing power for those actively participating in the redevelopment, juxtaposed with social issues common to other First Nation Communities for those not able or willing to become a participant of corporate Membertou. Infrastructure

6 The Membertou Trade and Convention Centre was the first major building constructed at Membertou. This $4 million project opened its doors for business, July This building houses Mescalaro s Steak House and Grill, a banquet hall which seats over 400, several meeting rooms, administrative offices and an Aboriginal gift shop Petroglyps. Other Departments/Divisions Over the past number of years, the Band administration has developed thirteen departments. Most of these divisions operate under direct governance by the Chief and Council. The departments include human resources, health services, education and youth services, finance, social services, public works, corporate (quality management and geomatics), fisheries, retail, gaming, food services, tourism and conventions. Corporate Partnerships Membertou has been aggressive in pursuing partnerships, joint ventures and new opportunities with government. Such relationships include: Lockheed Martin Canada, Sodexho Canada, Clearwater Fine Foods, SNC Lavalin, Grant Thornton, Jacques Whitford, Techlink Entertainment, and the Laurentian Group. Direct ownership of Membertou Geomatics Consultants (MGC) provides GIS services, with access to several other corporate partners of the Membertou Corporate Division in technology and engineering fields. MGC has been involved with international land management projects such as the Jamaica Cadastral Conversion project, and local projects such the Wentworth Ski Hill and the community of Membertou. The MGC offers a range of services such as data capture, analysis & manipulation, community planning, photogrammetry and 3D visualization. MGC has now undertaken the development of a First Nation Community GIS. It is designed as a decision making tool and an information platform for First Nation communities. Membertou FM On March 27, 2003, Membertou s application to establish an FM Radio station broadcasting to the Sydney market was approved. The station, broadcasting popular music, also presents First Nation music, community information and effectively brings Membertou into the broader Sydney community. Promotional Material Membertou s logo and slogan appear on all of its promotional material. The eagle which is symbolic of Aboriginal culture is depicted in the circle below. The slogan Membertou, Welcoming the World signifies Membertou is open for business and ready and able to work with government and corporate entities. Membertou s consistent use of its logo identifies its brands and conveys an overall corporate image. The name and slogan are easy to recognize and one that evokes positive feelings about doing business with this small Aboriginal community. The image Membertou portrays in its logo and slogan is one of originality and stresses a unique position we are Aboriginal and we welcome the business world!

7 Web site The website was designed to provide information for both residents of Membertou, the general public and potential corporate clients. The website provides links to Community Events, Community News, Departments, Staff Directory, Photo Gallery, Financial Statements, Employment, Guest Book and Community Forum. Information on the website is outdated with the last financial statements from 2005 ( The Membertou Trade and Convention has its own website to promote special events, Mescalaro s Restaurant and the on site gift shop- Petroglyphs (

8 Brochures High gloss print brochures advertise special events the Membertou Trade and Convention Centre provides, such as wedding and Christmas party packages, rooms for meetings, banquet halls for conventions, and a weekly Lobster Ceilidh where meals are prepared and enjoyed amidst live musical entertainment. These brochures can be found at local businesses and on site at the convention centre. Travel Guide Membertou has purchased ads in Cape Breton Travel Guide, a small high gloss magazine highlighting special events and tourist attractions. On one page Membertou has three small ads promoting Mescalero s Restaurant, Petroglyphs (on site craft store) and the weekly Lobster Ceilidh. A separate full page ad, highlights the restaurant, Mescalero s an open grill and steak house. These travel guides are available from local businesses and tourist centres. Annual Report Membertou s goal as outlined in its annual report, is to provide transparency, collaboration, communication and excellence in its business dealings and governance. Provided in this report are yearly audited financial statements and an overview of business divisions and departments accomplishments to date. Included are opening messages from Chief Terrance Paul, CEO Bernd Christmas and Senior Advisor Dan Christmas outlining Membertou s achievements and future plans. The annual report is available to interested parties upon request. Local Newspaper Periodically, Membertou s advertisements appear in the local newspaper highlighting special concerts and events taking place at the Membertou Trade and Convention Centre or at Mescalaro s Restaurant. These advertisements would reach approximately 35,000 Cape Breton Post subscribers. Local Radio Stations Advertisements for special concerts and events, taking place at the convention centre, can be heard weeks prior to the event on local radio stations. A local population of 120,000 could possibly tune in to these radio advertisements.

9 Signage Located on the Trans Canada highway, prior to the exit for Membertou, a large sign has been erected, with logo and tag line. The sign, on a very busy Sydney highway increases awareness and strengthens the brand image. However, there is no visible signage on the main artery in Sydney, Alexandra Street, which leads to Membertou. Corporate Leaders Membertou s Intangible Brand Elements "Membertou has terrific leadership in three dynamic individuals. Chief Terrance Paul, Dan Christmas, who is senior advisor to the chief and council of the band, and Bernd Christmas," said Owen Fitzgerald. As director of the YMCA Entrepreneur Centre of Cape Breton, Fitzgerald partnered with the leadership of the Membertou First Nation in 2005 to fulfill a growing need for entrepreneur training and small business development in the area. Corporate Culture Bernd Christmas believed in what Membertou was capable of accomplishing. "We -- the Band -- believe there are four pillars to developing an indigenous economy," he says. "Conservation, sustainability, innovation and success. These are our mottos. They combine the old, traditional values of the Mi'kmaq people with the new: know-how, innovation, and thinking outside the box." Media Reports Bernd Christmas has been a key participant as one of the faces of Membertou for the media, always taking the high road to present a positive image of Membertou. Christmas says he has been conscious to present alternatives and potential collaborations rather than confrontation on issues of importance to Membertou. There has been a clear goal to brand Membertou as a First Nation Community ready to solidify partnerships with government and business. Location of Company The brand image portrayed is the ability to maintain positive relationships with residents of Membertou and the corporate world. Corporate offices are upscale and located in the province s capital for business dealing, however with a local office and living quarters, Christmas was able to maintain local visibility and conduct business dealings at Membertou, as well.

10 The Road Ahead Chief Paul, in interviews following the resignation of Bernd Christmas, stated that perhaps it was time to pause and give further thought to the next phase of Membertou s growth and to do so before a Chief Executive Officer is hired. He knows it will be a difficult task to replace former CEO Bernd Christmas, who was instrumental in leading Membertou from an economically depressed community with 90% unemployment to a corporation involved in lucrative business dealings, now employing over half of Membertou s working population. Chief Paul and his staff have always walked a very fine line to project a professional image to corporations while supporting their cultural integrity to Membertou residents. Paul knows this on-going concern needs to be embraced by the new CEO, as Membertou forges ahead with other development plans, business partnerships and the reinvestment of profits to meet community objectives. Chief Paul cannot lose site of the original vision he had for his community and people. He wants Membertou to continue growing and be economically sustainable. However, without a CEO at the helm he is faced with a void in his leadership team. Who, if anyone, has the skill, knowledge and background to replace Bernd Christmas and maintain the brand image built up over the past ten years, while keeping the best interests of Membertou and its residents in the forefront? Membertou has established a Brand identity that has relied strongly upon Bernd Christmas as its personification. Chief Paul is now tasked with forging ahead on economic development issues while maintaining and building brand integrity. Questions: 1. If you were Chief Paul, how would you balance his need to hire a new CEO who has a strong economic development mandate with the need to have the brand strengthened and protected? 2. Do you believe the development of Brand Membertou was established to support the growth of the community or that the growth of the community established the brand? 3. As Brand Manager for Membertou, how would you strengthen the brand? What would be some of your first actions? 4. Are there unique characteristics one must consider in the development of a First Nation brand? Substantiate your answer.