Sustainability spells success for elite Canadian companies

Best Managed program salutes companies across Canada with the country’s highest honour for ongoing business performance

TORONTO, December 13, 2006— They come in all shapes and sizes, from all regions across the country, representing a wide variety of industries. But the best of the best in Canadian business have one thing in common –sustained, superior performance over time.

Consistently maintaining success and achievement at the highest level has earned these leading companies inclusion in a distinguished group – the Best Managed program’s Platinum Club or Requalified membership.

Platinum Club members form an elite group of Canadian-owned and managed companies that consistently excel in every aspect of business. To become a Platinum Club member, companies must maintain their designation as one of Canada’s Best Managed Companies for a minimum of six consecutive years, subject to annual operational and financial review.

In addition to the 44 new Platinum Club members, 84 leading Canadian companies requalified in 2006 for the Best Managed designation by successfully meeting stringent operational and financial review requirements.

“Achieving the highest level of business performance over the long-term is only possible when organizations embrace a culture of aligning every activity and resource with building value for their stakeholders,” said Deloitte Partner with the Private Company Services Group, and National Leader of the Best Managed program, John Hughes. “Membership in these groups symbolizes the ultimate goal for any business – sustained high performance. All companies strive for business success; what distinguishes Platinum Club and Requalified members is their ability to sustain that success.”

Hughes points to the five most prominent common attributes these exceptional companies share which contribute to their success, including their ability to:

• Predict and adapt to the constantly changing domestic and global business environment
• Innovate and extend their value proposition to customers and talent
• Balance risks and opportunities with a strong balance sheet, enabling sustainability through unforeseen challenges
• Develop long-term executable strategies that leverage core skills
• Cultivate and preserve a sense of purpose, belonging and loyalty throughout the organization

The Best Managed program asked the 2006 Platinum Club and Requalified companies about their revenue growth plans. The vast majority named more than one strategy. Of those that specified, the significant majority (59%) plan to pursue domestic growth, while just over a third (36%) plan to drive revenue growth through international operations or expansion.  Acquisitions and alliances are the hottest future growth strategies cited by Platinum Club winners (51% and 56%, respectively). Technology is also at the centre of future growth plans (for 51%), followed by new product lines or new products (43% and 41% respectively). By far the most profound growth challenge these companies face is ‘finding qualified employees’ cited by 63% as a concern.

“The success of these companies – the best of the best – is an inspiration to all Canadian businesses,” said James McSherry, Executive Vice President and Managing Director, CIBC Commercial Banking. “Sustaining the highest level of business performance over the long-term is fraught with challenges. Only the fittest succeed in making the giant leap from small entrepreneurial operations to multi-million dollar enterprises, avoiding the many pitfalls along the way.”

About Canada’s Best Managed Companies

Established in 1993, Canada's 50 Best Managed Companies (Best Managed) is one of the country’s leading business awards program, recognizing excellence in Canadian-owned and managed companies with revenues over $10 million. Every year, hundreds of entrepreneurial companies compete for this designation in a rigorous and independent process that evaluates the caliber of their management abilities and practices. The awards are granted on three levels: 1) Best Managed winner (one of the 50 new winners selected each year), 2) Requalified member (repeat winners retain the Best Managed designation for two additional years, subject to annual operational and financial review), 3) Platinum Club member (winners that maintain Best Managed status for a minimum of six consecutive years.) Program sponsors are Deloitte, CIBC Commercial Banking, National Post, and Queen's School of Business. For further information, visit www.canadas50best.com.