DETAILED SURVEY FINDINGS

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1 Ottawa s Executive Talent Assessment Project (ETAP) Learning from today's leaders to attract and grow tomorrow s talent. DETAILED SURVEY FINDINGS FINAL REPORT Prepared by: Invest Ottawa October 2014

2 Table of Contents Table of Contents...1 Executive Summary...2 Key Findings at a Glance...3 Setting the Context...9 Research Highlights... 9 Detailed Findings from the 2012 Survey RESEARCH UPDATE New Findings in Fall ETAP Survey Background & Methodology Background Methodology Comparative Analyses Senior Leader Snapshot (Who Responded to the Survey) Positions Held Key Demographics Where They Work Senior Leader Career Paths & Decisions Career Path Career Decisions Attracting & Retaining Executive Talent Difficulty Attracting/Retaining Executives Impact of Organization Factors on Attraction/Retention Challenges in Attraction and Retention Identifying Current & Future Talent Gaps for Leading in the Digital World Leading in a Digital World Responding to Technology A Closer Look at Ottawa's "C-Suites" Who Responded to this Section Senior Executive Team Snapshot & Hiring Trends Reasons for Attrition and Losing Senior Talent Level of Difficulty Filling Positions Key Skills Gaps Key Considerations & Conclusions Considerations Moving Forward Final Conclusions DETAILED SURVEY FINDINGS FINAL REPORT October 30,

3 Executive Summary In the fall of 2012, 39 Ottawa CEOs responded to a Preliminary Study to explore perceptions around attracting and retaining executives in Ottawa. The study found that the majority were currently experiencing difficulty in recruiting and retaining strong senior leaders, and even more (69%) were concerned about meeting their recruitment needs for the future. They also reported potential issues around retaining strong candidates for senior leadership positions, citing concern about losing senior leaders to organizations outside Ottawa. In 2014, as part of the broader Ottawa Executive Talent Assessment Project (ETAP), Invest Ottawa and the City of Ottawa conducted a broad, comprehensive C-suite survey to tap into expert opinions around current and future leadership and management capacity and talent gaps. The ETAP project is funded by Employment Ontario and guided by a CEO Advisory Board. Given the concern cited in 2012 regarding talent attraction and retention, the 2014 survey was designed to gain further insight into Ottawa executives views on attraction and retention; it also aimed to assess how Ottawa performs as a magnet for talent. Because of the focus on executives more broadly, the 109 survey participants included both CEOs and those on their senior leadership teams. The 2014 survey was structured to provide insight into these key areas: Senior Leader Snapshot (Who Responded to the Survey) Senior Leader Career Paths & Decisions Attracting & Retaining Executive Talent Identifying Current & Future Talent Gaps for Leading in the Digital World A Closer Look at Ottawa's "C Suites" The 2014 findings supported those of the preliminary study, showing similar concerns around executive talent retention and current executive leadership and technical skills for leading in the digital world. Although fewer CEOs reported current difficulty in attracting and retaining strong candidates than in 2012, the findings still point to a serious concern, with 58% of CEOs forecasting difficulty in the future. The perceived gap in technological skills required in the digital world widened (with 59% feeling their team had the required skills vs. 67% in 2012). The ETAP study found that having a Strong pool of available talent was one of the top-rated factors in terms of importance to career decisions, with the CEO respondents ranking it as number three. This was not seen as an area of strength for Ottawa, pointing to a need to address this issue. At the same time, however, Ottawa was considered to be performing well with regard to many of the other factors which could be leveraged to attract and retain senior talent. Respondent demographics point to a real concern around pending retirements, especially for CEOs (with one-third aged 55 or over) and in the public sector (where 43% of respondents were 55 or over). These findings point to a challenge around replacing retiring executive talent, particularly in the public sector where there was less talent in the pipeline and where senior leaders had more advanced degrees and language requirements than their private sector counterparts. DETAILED SURVEY FINDINGS FINAL REPORT October 30,

4 Key Findings at a Glance ETAP Survey - Learning from Today's Leaders Senior Leader Snapshot (Who Responded to the Survey) WHAT THEY DO GENDER AGE LEVEL OF EDUCATION WHERE THEY WORK 46% were owners/co-owners rather than employees 41% were executives in Financial, communication and other business services 22% were female (20% of CEOs vs. 25% of senior leaders) Females are better-represented in the public sector (30% of respondents versus 17% in the private sector) 71% were 45 and over, with 28% between 55 and 64 years Only 29% were under 45, with only 7% in the under 35 years age group CEOs (vs. Senior leaders) tended to be older (81% were 45 and over) Public sector respondents were older than their private sector colleagues, with 43% falling in the 55 to 64 years age group Potential lack of leaders in the pipeline, especially in the public sector 44% held advanced degrees (Master s or PhD) CEOs and those in the public sector were more likely than Senior leaders and those in the private sector to hold advanced degrees 1 in 10 indicated a College Diploma as their highest level of education 20% of those in the private sector held a College or secondary school diploma as their highest level of education 23% indicated that they work in Professional, Scientific & Technical Services 12% identified Educational Services and 11% identified Public Administration as their industry sector Public Administration was under-represented in our survey (compared to overall Ottawa numbers) while Professional, Scientific & Technical Services was over-represented One-third (34%) indicated that they worked in organizations with 500+ employees, while 25% worked in organizations with 20 to 49 employees Vast majority (84%) were from organizations headquartered in Ottawa DETAILED SURVEY FINDINGS FINAL REPORT October 30,

5 Senior Leader Career Paths & Decisions CAREER PATH 32% came from another organization within Ottawa while 31% created their current position Only 16% were recruited from outside of Ottawa 3 out of 4 (78%) stayed within the same industry sector when they were recruited to their current position 58% indicated that fluency in both official languages was either required (26%) or an asset (32%), with 42% saying it was not a factor 54% of those in the public sector indicated fluency in both official languages as a requirement, versus only 12% in the private sector FACTORS IN ACCEPTING JOB OFFER 91% rated Reputation of organization and Opportunity for personal growth as important or very important factors 87% cited Location as important or very important Language requirements and Opportunity for a change in career were seen as the least important factors Desire to make a difference was the most important factor for CEOs, while Reputation of the organization topped the list for Senior leaders Desire to make a difference was also the most important factor for public sector respondents, while Opportunity for personal growth topped the list for those in the private sector KEY ATTRACTION CHARACTER- ISTICS What Ottawa does well is in line with what attracts our leaders 3 out of 4 top factors for importance were also ranked in the top 4 based on Ottawa's performance (Access to high quality healthcare, Access to outdoor/leisure activities, and Family friendliness) Strong pool of available talent made the list of top factors based on importance of factor to career decisions; it was also an area where Ottawa was seen as lagging (gap between Ottawa's performance and importance) Both CEOs and Senior leaders rated Ottawa s performance the highest for Access to outdoor/leisure activities; both groups rated Access to funding & capital the lowest Access to quality healthcare topped both the CEO and Senior leader lists in terms of importance to career decisions Career opportunities for executives made the top five on the importance dimension for Senior leaders, while ranking in the bottom five for CEOs Similar rankings across public and private sector for Ottawa's performance; some discrepancies on importance dimension, with Quality of municipal governance/services in the top five for public sector but in bottom five for private sector, while Networking opportunities was vice versa DETAILED SURVEY FINDINGS FINAL REPORT October 30,

6 Attracting & Retaining Executive Talent DIFFICULTY ATTRACTING/ RETAINING EXECUTIVES IMPACT OF ORGANIZATION FACTORS CHALLENGES 35% indicated that they are currently having difficulty attracting and retaining strong candidates for senior executive positions, while the majority of respondents (58%) anticipate having difficulty in the future Higher % of CEOs and public sector respondents reported difficulty recruiting senior executive talent, both now and in the future, than senior leaders or those in the private sector Fewer CEO respondents reported difficulty recruiting senior executive talent, both now and in the future, in the current study than in the 2012 study Reputation of organization and Colleagues with whom they would be working were seen as the organization factors having the most positive impact on respondents ability to attract/retain senior talent Language requirements and Compensation were seen as having the most negative impact overall, as well as being in the bottom three for all respondent groups (CEOs, Senior leaders, public sector and private sector respondents) Reputation of the organization was seen as having the most positive impact by both CEOs and Senior leaders Location was in the bottom three (negative) for CEOs, but not for Senior leaders Reputation of the organization and Opportunity for personal growth made the top three (positive) factors for both public and private sector respondents Location was in the bottom three for private sector respondents, while being in the top three for the public sector CEOs (public sector) cited difficulty attracting municipal executives approaching retirement, difficulty finding bilingual people, and the fact that national organizations don't necessarily need their senior leaders to work in Ottawa CEOs (private sector) cited difficulty for smaller companies in finding senior talent with small company mindset who will work for less pay, the fact that Ottawa is a government town with employee expectations and city services geared to a shorter work day, poor long-term career prospects, overstated second language requirements, and a lack of senior sales expertise locally Senior leaders (public sector) cited lack of opportunities because of size compared to Toronto and Vancouver, as well as a lack of resources and compensation for senior leaders compared to what is available elsewhere in Ottawa DETAILED SURVEY FINDINGS FINAL REPORT October 30,

7 Leading in the Digital World LEADING IN THE DIGITAL WORLD FIVE CRITICAL SUCCESS FACTORS KEY SKILLS & KNOWLEDGE REQUIRED RESPONDING TO TECHNOLOGY 63% felt that they have a good understanding of the skills that senior executives will need in the "changing world of work" and "digital economy A lower % of CEOs than senior leaders reported having a good understanding (60% vs. 66% respectively) A higher % of public sector than private sector respondents reported having a good understanding, with 70% and 59% indicating agreement respectively Forging valuable relationships and Transparent and authentic leadership were seen as areas of strength in terms of executive team ratings on the critical success factors in responding to the challenges of our evolving, digital world Capacity to manage and lead high-performing virtual teams was rated the lowest overall, as well as by Senior leaders and those in the public sector CEOs provided more positive ratings than Senior leaders on all factors Private sector respondents rated their performance in 4 out of 5 of the success factors more positively than those in the public sector CEOs and private sector respondents rated Transparent and authentic leadership the highest; Senior leaders and the public sector rated Forging valuable relationships with partners, consumers and entrepreneurs the highest "Social capital" - Maintaining valuable cross business networks and relationships had the lowest rating from CEOs and private sector respondents; it was also the only factor rated higher by the public than the private sector 56% felt their executive team has the leadership skills/knowledge to lead in the digital world; 49% felt they had the required technical skills/knowledge Only 39% of Senior leaders felt that their executives had the required technical skills and knowledge (compared to 56% of CEOs); ratings were similar between the two groups on the leadership component Public sector respondents showed less confidence in their executives' ability on both dimensions than those in the private sector, especially in terms of technical skills/knowledge (29% for public sector and 60% for private sector) 67% of the CEOs in 2012 felt that their executive team had the required technological skills and knowledge, compared to 56% of CEOs in 2014 Respondents felt that both the impact of technology and the response of their organization would be greater in the future than it is currently Current organizational response was seen as in line with current impact (51% and 49% rating as major/strong respectively) Future organizational response was seen as lagging behind future impact, with 72% indicating major impact and 65% reporting a strong response CEOs rated both current and future impact lower than Senior leaders, and both current and future response higher than Senior leaders Public sector rated both current and future impact higher than those in the private sector, while the two groups gave similar ratings on response, with both foreseeing a stronger response in the future DETAILED SURVEY FINDINGS FINAL REPORT October 30,

8 Leading in the Digital World cont'd EXECUTIVE SKILLS GAPS CEO (public sector) comments around: Clinical skills combined with strong managerial skills required We use almost no technology in our organization What evidence speaks to an executive skills gap? We need IT staff that are comfortable with the new technologies and overseeing the outsourcing of maintenance of old platforms and software CEO (private sector) comments around: Many experienced technical executives are weaker on the "sales" front and need these skills in smaller companies; we are insulated from the external, faster-moving private sector environment of other large cities Lack of focus on importance of growth and protection of intellectual property; engineers /managers do not focus on patenting and protecting IP Difficult to identify strong high tech business leadership (often Nortel-based, which is not well-matched to what new high tech SMEs need) Rate of change in technology and the ability to keep up and implement Need recognition and adoption of productivity-enhancing workplace collaboration technologies and a better engagement of younger employees Seasoned relationship-building is found within the older generation, who is lost on the technology side (from the "mom and pop" to government) A Closer Look at Ottawa's "C-Suites" SENIOR EXECUTIVE TEAM SNAPSHOT HIRING TRENDS 50 respondents to this set of questions (CEOs only) 292 people collectively on their senior executive teams Average of 5.84 team members per responding organization, with a range of responses from 1 to hires in past 3 years (43 hired within past year; 66 hired in past 1-3 years) 93 hires forecast over next 3 years (30 in next year; 63 in next 1-3 years) Average of 2.18 new hires per organization in past three years Average of 1.86 new hires per organization anticipated in next three years 78% indicated that the number of people on the senior executive teams had stayed the same or increased in the past three years; 35% showed an increase Only 4% predicted a decline in the next three years, with two-fifths (39%) indicating that they expected the size of the team to increase Private sector respondents reported more decreases in past three years, while having a more positive outlook to the next three years, (no private sector respondents forecasting cuts, while 13% of the public sector anticipated cuts) DETAILED SURVEY FINDINGS FINAL REPORT October 30,

9 Ottawa's "C-Suites" cont'd ATTRITION AND LOSING SENIOR TALENT LEVEL OF DIFFICULTY FILLING POSITIONS Retirement was cited by both groups as the most common reason for attrition in the short-term, followed closely by performance issue/ fit Private sector respondents cited performance issues/fit more often than those in the public sector VP Sales & Marketing was cited as the position most difficult to currently fill, as well as being anticipated to be the most difficult to fill in the future; followed by President and Chief Operating Officer Little agreement on how difficult it is to fill the positions of Chief Executive Officer and Chief Information Officer KEY SKILLS GAPS Public sector identified the following skills as difficult to find: Bilingualism, Communications and marketing, Financial management, Flexibility and adaptability, Sales, Project management, Strategic leadership, Versatility, Writing, Financial literacy, People/interpersonal, Conflict management, Empowerment, Innovation and change, Length of experience, Operations, Organizational planning, Self-management, Teamwork, Vision Digital Media, Technology, Drafting texts, Executive technological skills Private sector identified the following skills as difficult to find: Sales & Marketing (including within industry), Sales leadership, Technical sales, Marketing leadership in digital age, Worldwide and Defense & Security industry experience, Strategic business development Technology, Senior technical talent, Technology knowledge with experience, Technological skill fit, Understanding of technology delivered to customer Ability to lead and think strategically, Critical thinking Leadership with proven industry track record; Balanced leadership across business operations, financial, program performance and strategic vision Instilling corporate culture from parent company in in-country company Ability to coach, People skills, Communications, Finance and Admin Management of key projects, Organized, Good business understanding Motivated, Willingness to work hard/on weekends, Initiative Creative direction, Thinking outside of the box Specific skills: Chief Operating Officer, Embedded processor system design; Engineering, Experienced Content Designers and Mobile Application Store and Distribution Account Managers, Commercial Experience for Triple A content production and distribution, Technical sales for semiconductor and embedded software, Technology leadership in the Defense & security industry, Proven track record with US based investors, Cloud Computing/ Architecture, Data analytics, Development, Embedded vision algorithm development, Experience managing complex government contracts DETAILED SURVEY FINDINGS FINAL REPORT October 30,

10 Decline in executive jobs in Ottawa (2010 to 2015) ETAP Survey - Learning from Today's Leaders Setting the Context As Ottawa strives to excel in the digital world, a recent CEO survey points to the city s need to attract and retain key talent at the executive level. To find out where any talent gaps may be and what we can leverage to grow our future leaders, Ottawa's Executive Talent Assessment Project (ETAP) is going back to the source we want to hear from our city s executive leaders to help shape the future a future where Ottawa has the talent required to grow our capital. Research Highlights These research highlights were shared in an introductory document included with the survey invitation. WHERE WE ARE NOW - OTTAWA'S C-SUITES Ottawa s Executive Talent Assessment Project (ETAP) includes: A broad, comprehensive C-suite survey to tap into expert opinions around current and future leadership and management capacity and talent gaps, guided by a CEO Advisory Board. Digging deeper into the numbers to validate with our leaders what is happening across jobs and sectors, to explore the forecasts to 2020, and to compare Ottawa s C-suites to other cities. What our CEOs are Saying In Fall of 2012, 39 Ottawa CEOs responded to a Preliminary Study to explore perceptions around attracting and retaining executives in Ottawa. 51% Half of the CEOs indicated that they were currently experiencing difficulty in recruiting and retaining strong senior leaders. More than two-thirds were concerned about meeting their recruitment needs for the future. More than half of CEOs were concerned about retaining strong candidates for senior leadership positions. Of those concerned about retention, two-thirds were concerned about losing senior leaders to organizations outside Ottawa. 67% 69% 56% Who s in Ottawa s C Suites By accessing data from Economic Modelling Specialists (EMSI) Analyst tool, Invest Ottawa can get a rough view of the number of senior leader positions in Ottawa (defined as Legislators and Senior Managers by Statistics Canada) executives in Ottawa in 2012 Legislators Senior government managers and officials Financial, communications and other business services Health, education, social and community services Trade (retail & wholesale), broadcasting, other services* Construction, transportation, production and utilities 213 2,124 1, % % drop in Toronto * EMSI Analyst: Numbers below 100 cannot be considered accurate because of the small sample size in the Labour Force Survey. 33% Gap in technological skills required in digital world One-third identified a gap in technological skills of senior leaders required to play a leadership role in the digital world now and in the future Senior leader demographics Median age of Canadian senior leaders Average Canadian senior leader retirement age DETAILED SURVEY FINDINGS FINAL REPORT October 30,

11 LEARNING FROM OTHERS EXPLORING THE ISSUES Ottawa is not alone in looking to better understand the executive talent needed to navigate the global, digital landscape and how best to recruit and grow this talent. To guide the process that we are putting in place, our initial research focused on how other communities are exploring and addressing similar issues so that we can learn from their best practices, while adapting to what is unique to Ottawa. Ottawa s Executive Talent Assessment Project (ETAP) aims to: Learn globally and share locally to create a level knowledge playing field for stakeholders and leaders, to validate key findings and to explore the answers to questions important to Ottawa's leaders. Build the best talent solution for Ottawa, based on extensive research and executive leader consultations, with measurable recommendations and a clear plan for proposed next steps. Canadian Example The 2013 Calgary CEO Survey Price Waterhouse Coopers interviewed a wide variety of CEOs across the city in the summer of % 86% 65% Almost three-quarters anticipated changing their strategies for managing talent over the next 12 months. 86% were at least somewhat concerned about availability of important skills (only 63% of Canadian CEOs report concern). While 65% feel it is harder to find the right talent in Calgary than elsewhere, many point to retention as the biggest challenge. The right talent is viewed as people who have the experience required to fill high level positions; most Calgary CEOs report struggling to find and/or keep these people. Ottawa CEOs share this perception and we may be able to draw from Calgary s learnings. Excerpt from the Calgary report It takes 10 years to get 10 years of experience. There s a lot of great talent, but people are being put into positions where they can t succeed roles they aren t ready for. If you put them in senior roles, you really need to support them. Calgary-based CEO Global Example: Manchester Attracting & Retaining Innovative Entrepreneurs (2010) Northwest Development Agency commissioned a study that interviewed 43 innovative entrepreneurs; results show three strong parallels with the Ottawa landscape CEOs in Manchester, much like in Ottawa, have reported difficulties in attracting senior executive talent to their city. London and Toronto are viewed respectively as the other destination where most senior talent would choose to be located. Both cities have a huge graduate talent pool from post-secondary that should be leveraged to feed the talent demand. The study points to a need to ensure that the perceived lack of senior talent does not get blown out of proportion, as such exaggeration perpetuates the problem. The idea of building and fostering a strong entrepreneurial culture to address the issue is deserving of attention. Excerpt from the Manchester report Manchester is not perceived as having an existing mass of senior businesspeople, and this creates a further problem in terms of attracting such people. Innovative, entrepreneurial peoplestill seek to live and work in places where like-minded people reside. DETAILED SURVEY FINDINGS FINAL REPORT October 30,

12 FRAMING OUR SOLUTION EXPLORING WHERE WE NEED TO GO Our solution will be based on a solid, shared understanding of what Ottawa needs to do to attract executive talent and what skills these leaders must have. Our initial research draws out what we already know locally and what is happening globally. As we deepen this research, we will share key findings with Ottawa s executive leaders so that, together, we can create the best talent solution for our city. The need for a strong pool of talent in Ottawa... Both local and global research have shown that having a strong pool of talent is key to attracting business and leaders. When we are addressing Ottawa s ability to attract executive talent, we will be getting more bang for our buck as these solutions should also help us attract talent at all levels having this strong pool will, in itself, help us attract leaders to our city. #1 Top priority for business attraction is Availability of qualified labour The 2012 Ottawa Business Survey findings stated: A possible retooling of the available work force presents an important opportunity for employers, post-secondary institutions and the City to jointly pool resources to address this perceived gap. City of Ottawa Business Survey, 2012 #2 Ottawa s ranking in Canada as a City Magnet for university-educated migrants CBOC benchmarked what makes Canadian cities attractive to skilled workers and mobile populations and ranked 50 cities: Ottawa s success mirrors that of other capital cities... Ottawa excels in Innovation and Education and, apart from Health, scores well across all categories. Conference Board of Canada, with leaders who can respond to the changing world of work An understanding of the changing world of work is essential to effectively recruit future leaders with the right skills. A 2010 UK study with more than 200 executives conducted by the London School of Business highlighted the findings summarized here. Many point to the challenges and responses inherent to leading in a digital economy. 5 FORCES...changing work Technological developments Globalization Demographic changes Societal trends e.g., freelancing Low-carbon developments e.g., energy cost 3 SHIFTS IN WAY WE WORK BY 2025 Less about... Individual value = General skills Working as a competitive, isolated individual Focusing solely on a standard of living More about... Individual value = In-depth mastery Working collaboratively in a joined world Quality of experiences 5 KEY RESPONSES...required from leaders Transparent and authentic leadership High-performing virtual teams Valuable cross business networks & relationships Relationships with partners, consumers & entrepreneurs Flexible work arrangements DETAILED SURVEY FINDINGS FINAL REPORT October 30,

13 Detailed Findings from the 2012 Survey As mentioned in the Executive Summary, 39 Ottawa CEOs responded to a Preliminary Study in the fall of 2012 to explore perceptions around attracting and retaining executives in Ottawa. RECRUITING AND RETAINING STRONG TALENT Half (51%) of the respondents indicated that their organization was experiencing difficulty in recruiting and retaining strong candidates for senior leadership positions. When asked to look forward, more than two-thirds (69%) of respondents reported being concerned about meeting their recruitment needs for the future Survey - Difficulty recruiting and retaining strong candidates 2012 Survey - Concern about meeting recruitment needs for the future No 49% Yes 51% No 31% Yes 69% 39 respondents 39 respondents The majority (56%) also reported concern around retaining strong candidates for senior leadership positions, with two-thirds (67%) of those who responded "yes" citing concern about losing senior leaders to organizations outside Ottawa. 54% were concerned about losing them to other organizations within their sector, while 38% indicated concern about losing them to other sectors Survey - Concerned about retaining strong candidates for senior leadership positions No 44% Yes 56% 2012 Survey - If yes, are you concerned about losing them to: Organizations outside of Ottawa 67% Other sectors 38% Other organizations within my sector 54% 39 respondents 26 respondents DETAILED SURVEY FINDINGS FINAL REPORT October 30,

14 CHALLENGES IN RECRUITMENT AND RETENTION Respondents were asked to rate four factors in terms of how much they have contributed to their challenges in attracting and retaining candidates. Experience and skill sets of applicants was seen as the biggest contributor to challenges in attracting candidates, while Compensation was cited as the biggest challenge in retaining candidates Survey - Contributors to Challenges... Experience and skill sets of applicants Insufficient number of qualified applicants Compensation Location (i.e. Ottawa) Other Location was seen as contributing the least to challenges in both attracting and retaining candidates. Attracting candidates Retaining candidates 36 & 32 respondents Other Factors Contributing to Challenges Some respondents indicated other factors contributing to their challenges, especially in terms of attracting candidates; these are summarized below. Challenges in attracting candidates: Bilingual requirements Not willing to relocate but will commute Ottawa a great place to live but not a great place to be a leader Private sector candidates reluctant to move to public sector Small market size Erosion of "public sector" Conflict rules Spousal employment Challenges in retaining candidates Insufficient development/ advancement opportunities Conflict rules Spousal employment MOST DIFFICULT SENIOR STAFF POSITIONS TO FILL The responses indicated a significant list of skill sets that were difficult to find, including: CIO, CFO, CEO and senior operational positions Research scientists, auditors and HR professionals Senior project managers, senior marketing staff, senior trades VP sales, government affairs, communications Head office retail positions in buying, marketing and store operations Principals and superintendents of schools C-suite executives and VP-level globally experienced individuals in the Health Sciences DETAILED SURVEY FINDINGS FINAL REPORT October 30,

15 WHAT LOCAL ORGANIZATIONS COULD DO COLLECTIVELY TO INCREASE THE POOL OF QUALIFIED CANDIDATES Suggestions included: Fostering exchanges at the senior level, including between public and private sector Setting up welcoming and networking opportunities where senior leaders in the community would be present who would be willing to share their experiences combined with peer level programs and events Ottawa needs to do a better job of promoting itself as being more than a civil service city and to extol the many virtues of living in this community Ottawa needs to be seen as a business-friendly city that welcomes new leaders based on their talent rather than on their political connections; talent needs to be appreciated Developing an active spousal employment program TECHNOLOGICAL SKILLS TO LEAD IN THE DIGITAL WORLD Two-thirds of respondents (67%) indicated that they feel that candidates or current senior leaders have sufficient technological skills to play a leadership role in the digital world, both now and in the future. A couple of respondents selected both "Yes" and "No" for the future component of the question; otherwise, the numbers were the same across the two components Survey - Candidates/senior leaders have sufficient technological skills to lead in digital world 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Now 67% 33% Future 67% 6% 28% Yes Yes/No No 36 respondents * 2 respondents seleccted both YES and NO In the comments provided, technological skills were noted as an imperative for the future and, in many cases, there were gaps to be filled in the skill set of existing senior staff if they are to thrive in the new digital world. Some felt that the public sector was lagging behind the private sector in this regard. A few respondents pointed to other leadership skills/behaviours as being equally or more important in some cases (i.e., technical people needing good "people" skills) and one felt that the importance of technology tended to be overstated. It should be noted that our new research also points to the importance of both technical and other leadership skills that are coming to the forefront in the digital world (i.e., transparent and authentic leadership, leading high-performing virtual teams, etc.). DETAILED SURVEY FINDINGS FINAL REPORT October 30,

16 ETAP Survey - Learning from Today's Leaders STUDY CONCLUSIONS The preliminary study drew several key conclusions. Ottawa needs to raise its national and international profile and stress that it is as welcoming to business as it has always been to government. Ottawa also needs to get its major media outlets onside so that they too promote the positive aspects of living in this great city, rather than just reporting the latest bad news from the government and beyond. Ottawa could be seen as a leader in setting up professional programs to ensure that our senior leaders are well prepared for the future (the digital world) and, in doing so, encourage these leaders to inculcate the same kinds of initiatives in their own organizations. While the need for improved technological skills will continue to increase, there is also a great need for other skills such as problem solving, team building and fostering positive human interactions. There is a need for the public and private sectors located in this city to work together to address these changes so that the local economy can continue to grow and prosper to the benefit of all. RESEARCH UPDATE New Findings in Fall 2014 Further research was undertaken in fall 2014 to supplement the earlier findings. The need for a strong pool of talent in Ottawa... Findings from 2014 studies continue to point to the need for a strong pool of talent as key to attracting business and leaders. #1 Top barrier to doing business in Ottawa is Access to skilled workforce Ottawa's Chamber of Commerce launched an Ottawa Business Confidence Survey in December 2013, resurveying in June % of respondents indicated that there were barriers to doing business in Ottawa (up 18% from the December 2013 numbers). Of these, 37% identified Access to skilled workforce as a barrier to doing business in Ottawa (up from 20% in 2013). A Ottawa is one of only six Canadian cities to earn an A grade in attracting newcomers CBOC benchmarked what makes Canadian cities attractive to skilled workers and mobile populations and ranked 50 cities in this third City Magnets study: Each of these six cities offers a unique combination of attributes that add up to a great place to live. Ottawa s appeal can be traced back to solid results in four key categories: society, education, innovation, and economy. Ottawa Business Confidence Survey, 2014 Conference Board of Canada, with leaders who can respond to the changing world of work 2014 research continues to point to key skills required to lead in the digital world and emerging workplace. PWC Annual Global CEO Survey (2014) Must provide digital tools for communication and training, as well as conditions that promote autonomy The rise of the networked society has already made it much easier to operate virtually. Younger generations, in particular, want flat and flexible structures; expect to influence the decision-making processes of the companies that employ them; and often prefer to work outside a conventional office setting. Engagement and value fit are paramount as employees have easy access to global audience Deloitte: 2014 Human Capital Trends Four urgent issues emerged and one common priority Our research shows a significant gap between the urgency of the talent and leadership issues leaders face today and their organizations readiness to respond. On every critical issue leadership, retention and engagement, learning and development, analytics executives recognize the need to take action, but express reservations about their team s ability to deliver results. DETAILED SURVEY FINDINGS A collaborative management style, with leaders highly skilled in assembling teams and resolving conflict 1. Leadership 2. Retention and engagement 3. Reskilling of human resources 4. Talent acquisition and access FINAL REPORT October 30, 2014 #1 Every industry sees LEADERSHIP as its top priority 15

17 ETAP Survey Background & Methodology As discussed in the introduction, a key component of Ottawa's Executive Talent Assessment Project is: A broad, comprehensive C-suite survey to tap into expert opinions around current and future leadership and management capacity and talent gaps, guided by a CEO Advisory Board. Background Given the concern cited in 2012 regarding talent retention, the 2014 survey was designed to gain further insight into Ottawa executives views on attraction and retention; it also aimed to assess how Ottawa as a city performs as a magnet for talent. Because of this focus on the broader attraction and retention components, we expanded the survey beyond CEOs to include those on their senior executive teams. One section of the survey (A Closer Look at Ottawa's C-Suites) was included for CEOs only. Methodology This initiative has been guided by a Core Project Team including members from Invest Ottawa and the City of Ottawa, as well as a CEO Advisory Board. The initial survey questions were developed with the Core Project Team, and validated with members of the CEO Advisory Group. Several members of the CEO Advisory Board completed the survey in a "test run" in March. Minor modifications were made based on their feedback and the survey was launched in April From April to June 2014, the ETAP group ran an online survey to solicit input from Ottawa's industry leaders on the current and anticipated future state of executive talent in the city. With distribution in both English and French through Invest Ottawa, City of Ottawa and the Ottawa Business Journal, the initiative garnered responses from 99 CEOs and senior leaders across the city. An additional push into the Public Administration sector was undertaken by the City of Ottawa in September; this garnered an additional 10 respondents, making a total of 109 respondents to the survey. Comparative Analyses Where it makes sense (and where the data was available), we make comparisons throughout this survey to see if there are any significant differences by respondent group. CEOs or equivalents versus senior leaders. Public sector versus private sector (grouping Public Administration and traditional "MUSH sector" respondents under "public sector" and, in some cases, based on position title provided where an industry sector was not indicated) survey findings versus 2012 preliminary study findings. DETAILED SURVEY FINDINGS FINAL REPORT October 30,

18 Senior Leader Snapshot (Who Responded to the Survey) Sixty percent of the respondents identified themselves as CEOs or equivalent, defined as "the leader of your organization's senior executive team in Ottawa (e.g., CEO, President, Deputy Minister)", or provided a job title that indicated they were such. The survey also looked at other key areas to get a full picture of who was responding, including: What they do (Nature of role, Sample job titles, Occupation grouping) Who they are (Gender, Age group, Level of education) Where they work (Size of organization, Type of organization, Industry sector) Positions Held NATURE OF ROLE Respondents were fairly evenly split between being employees and being owners/co-owners of their current organization, with 46% indicating that they are owner/co-owner. Chart 1: Nature of Role in Organization Employee 54% Owner/ co-owner 46% 108 respondents SAMPLE JOB TITLES CEO or similar (41 respondents) CEO; President & CEO; Founder/CEO; Co-CEO President; Executive Director; Business owner Manager and Business owner Chiefs, Directors & Partners (36 respondents) Chief Strategist; Chief Strategy Officer; CIO CHRO; CTO; COO; Medical Officer of Health Senior Managing Director; Managing Partner Director General; Director of Education Directors; Key Account Director Vice President/General Managers (21 respondents) Executive VP and CFO; Corporate VP; AVP Human Resources; AVP, Financial Resources VP Eastern Canada; VP of Marketing VP, Strategy & Organizational Development VP, Business Operations & Development VP Finance; VP, Operations; VP, Government Affairs VP, Commercial Market Services; General Managers Other Titles Program Coordinator; Counsellor/Advisor City Manager; Dean; Fire Chief; Lawyer; Manager Business Excellence Manager; Senior Manager DETAILED SURVEY FINDINGS FINAL REPORT October 30,

19 OCCUPATION GROUPING We asked respondents to indicate to which HRSDC Occupation Group they belonged. HRDSC defines senior leader positions in the Occupation Grouping Legislators and Senior Managers. This grouping is broken down into the following six occupations (based on the 4-digit NOC codes). Close to half (41%) indicated that they were executives in Financial, communication and other business services. Chart 2: Occupation Group (based on HRSDC NOC codes) 24% 1% 15% Legislators Senior government managers and officials 4% 15% 41% Executive, Financial, communications and other business services Executive, Health, education, social and community services Executive, Construction, transportation, production and utilities Executive, Trade (retail and wholesale), broadcasting and other services n.e.c. 109 respondents Comparative Analysis A comparison of survey participants occupation groupings to the occupation groupings of all senior leader positions in Ottawa in to determine whether our sample is representative - points to two discrepancies: Under-representation in the survey of Senior government managers and officials (15% vs. 49%) Over-representation of the Executive, Trade (retail and wholesale), broadcasting and other services not elsewhere classified (24% vs. 0.3%). Chart 3: Survey Respondents vs. Ottawa Overall Legislators Senior government managers and officials Executive, Financial, communications and other business services Executive, Health, education, social and community services Executive, Construction, transportation, production and utilities Executive, Trade (retail and wholesale), broadcasting and other services n.e.c. 0% 20% 40% 60% 1% 5% 5% 5% 0.3% 15% 15% 10% 24% 31% 41% 49% Survey respondents Ottawa overall Source: EMSI Analyst data, Labour Market Ottawa, 2014 DETAILED SURVEY FINDINGS FINAL REPORT October 30,

20 In further analysis of the raw data, comparing industry sector to the occupation grouping for the same respondent, there seems to be a lack of clarity around the appropriate occupation group. For instance, in some cases job titles and sectors identified in the survey seemed to relate to the Senior government managers and officials category, but respondents had indicated other occupation groups. A large number of respondents selected Executive, Trade (retail and wholesale), broadcasting and other services n.e.c. This percentage is much higher than expected, based on the comparison to the Ottawa numbers (which show 0.3% for this category). A possible explanation for this is that when respondents were not sure which group to select, they chose this response because the category includes other services not elsewhere classified. For comparative analyses, we have grouped Public Administration and "MUSH" sector respondents under Public Sector (32% of respondents) and the remaining respondents (68%) under Private sector Key Demographics 82 respondents completed the Demographic questions at the end of the survey. GENDER Close to one-quarter (22%) of respondents were female. This is in line with Statistics Canada's 2011 data showing that 22.9% of all senior management positions in Canada are held by women. Based on the 2011 National Household Survey, one-third (33%) of senior management positions in Ottawa are held by women. Comparative Analyses CEOs vs. Senior Leaders One-fifth (20%) of those who indicated that they were CEOs or equivalents were female, while 25% of senior leaders responding to the demographic questions were female. Public vs. Private Sector 30% of those in the public sector were female, while only 17% of those in the private sector were female. Female Male Chart 4: Demographics (Gender) 20% 25% Female 22% 80% 75% Male 78% Chart 5: Gender - CEOs vs. Senior Leaders Female Male 0% 50% 100% Chart 6: Sector - Public vs. Private 30% 17% 70% 83% 82 respondents CEO or equivalent Senior leader 82 respondents Public Private 0% 50% 100% 82 respondents DETAILED SURVEY FINDINGS FINAL REPORT October 30,

21 AGE GROUP More than two-thirds (71%) of respondents were 45 and over, with 28% in the 55 to 64 years age group. Less than one-third (29%) were under 45, with only 7% in the under 35 years age group. These numbers map extremely well against the 2011 NHS Survey data for Ottawa, which show a virtually identical breakdown of senior leaders by age group, with the exception of 22% in the 55 to 64 years category and 6% being 65 years or over (our survey did not capture any respondents over 65). Chart 7: Demographics (Age Group) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 7% 22% 43% 28% Under 35 years 35 to 44 years 45 to 54 years 55 to 64 years 65 to 74 years 75 years and over 82 respondents These statistics point to a potential lack of younger leaders in the pipeline to fill key senior positions as the aging leaders retire in the coming years. In 2010, Statistics Canada reported that the national average retirement age for senior leaders is 61. Based on this average, we can expect more than onequarter of Ottawa s current senior leaders to retire in the next 5 years. Comparative Analyses CEOs vs. Senior Leaders The CEO group tended to be older, with one-third aged 55 to % were 45 or over, compared to 58% of senior leaders. 36% of senior leaders fell in the 35 to 44 years age group, compared to only 11% of CEOs. However, a higher proportion of CEOs than senior leaders fell in the under 35 years category (9% vs. 6%). Public vs. Private Sector Respondents in the public sector tended to be older than their private sector counterparts, with 43% in the 55 to 64 years age group. 39% of private sector respondents were under 45, versus only 14% of the public sector. Chart 8: Age Group - CEOs vs. Senior Leaders 75 years and over 0% 0% 65 to 74 years 0% 0% 55 to 64 years 33% CEO or equivalent 22% 48% Senior leader 45 to 54 years 36% 35 to 44 years 11% 36% Under 35 years 9% 6% 0% 20% 40% 60% 82 respondents 75 years and over 65 to 74 years 55 to 64 years 45 to 54 years 35 to 44 years Under 35 years Chart 9: Age Group - Public vs. Private 0% 0% 0% 0% 19% 7% 31% 7% 8% 43% 43% 42% Public Private 0% 20% 40% 60% 82 respondents DETAILED SURVEY FINDINGS FINAL REPORT October 30,

22 LEVEL OF EDUCATION Slightly fewer than half (44%) of respondents indicated that their highest level of education was an advanced degree - a Master s or a PhD, with 6% reporting a PhD. The number of respondents who identified Bachelor s degree as their highest level of education (42%) was very similar to the number of respondents who identified Master s degree (38%). One in ten (10%) reported College Diploma, while only 4% of respondents reported a Secondary school diploma as their highest level of education. Chart 10: Demographics (Level of Education) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 4% 10% 42% 38% 6% Secondary school diploma College diploma Bachelors degree Masters degree PhD degree 81 respondents Comparative Analyses CEOs vs. Senior Leaders More CEOs than Senior leaders hold advanced degrees, with almost half (48%) having a Master s or PhD degree (versus 40% of Senior leaders). Senior leaders were more likely to have a Bachelors degree as their highest level of education (46% vs. 39% of CEOs), with a similar proportion of both groups indicating a College diploma or Secondary school diploma as their highest level of education. Public vs. Private Sector Those in the public sector were more likely to have advanced degrees, with more than half (57%) having a Master s or PhD degree (versus 37% of those in the private sector). One-fifth (20%) of those in the private sector held a College or secondary school diploma as their highest level of education. Chart 11: Education - CEOs vs. Senior Leaders PhD degree 9% 3% Masters degree 39% 37% CEO or equivalent Bachelors degree 39% 46% Senior leader College diploma 9% 11% Secondary school 4% 3% 0% 20% 40% 60% 81 respondents Chart 12: Education - Public vs. Private PhD degree 10% 4% Masters degree 47% 33% Public Bachelors degree 40% 43% Private College diploma 3% 14% Secondary school 0% 6% 0% 20% 40% 60% 81 respondents DETAILED SURVEY FINDINGS FINAL REPORT October 30,

23 Where They Work INDUSTRY SECTOR We asked respondents to indicate the industry sector (based on Industry Canada s NAICS codes) in which they are employed. It should be noted that only 75 of the respondents answered this question. Of those who responded, close to one-quarter (23%) indicated that they work in Professional, Scientific & Technical Services, while 12% identified Educational Services and 11% identified Public Administration as their industry sector. No respondents indicated they were in the following sectors: Wholesale Trade; Retail Trade; Construction; Agriculture, Forestry, Fishing & Hunting; Administrative & Support, Waste Management & Remediation Services; and Mining, Quarrying, and Oil & Gas Extraction. Chart 13: Industry Sector (based on NAICS codes) Professional, Scientific and Technical Services Educational Services Public Administration 5% 7% 8% 1% 1% 5% 4% 3% 3% 8% 9% 23% 11% 12% Health Care and Social Assistance Finance and Insurance Other Services (except Public Administration) Information and Cultural Industries Accommodation and Food Services Arts, Entertainment and Recreation Transportation and Warehousing Manufacturing Real Estate and Rental and Leasing Management of Companies and Enterprises Utilities 75 respondents DETAILED SURVEY FINDINGS FINAL REPORT October 30,

24 Comparative Analysis A comparison of survey findings to the number of senior leader jobs in Ottawa in 2013 by industry grouping - to determine whether our sample is representative - points to two major discrepancies: Under-representation in the survey of Public administration (11% vs. 54%) Over-representation of the Professional, Scientific & Technical Services (23% vs. 14%), as well as Educational Services (12% vs. 2%). However, if we compare the survey data to the overall number of jobs in Ottawa per industry sector, they are generally more closely aligned. We felt it was important to look at this component as well because sample sizes below 500 (i.e., most senior leader occupations) in the Labour Force Survey reduce data integrity. Chart 14: Survey Respondents vs. Jobs in Ottawa by Industry Sector Professional, Scientific and Technical Services Educational Services Public Administration Health Care and Social Assistance Finance and Insurance Other Services (except Public Administration) Information and Cultural Industries Accommodation and Food Services Arts, Entertainment and Recreation Transportation and Warehousing Manufacturing Real Estate and Rental and Leasing Management of Companies and Enterprises Utilities Administrative and Support, Waste Management and Remediation Services Construction Retail Trade Wholesale Trade 0% 20% 40% 60% 14% 10% 12% 2% 7% 11% 9% 2% 10% 8% 4% 3% 8% 9% 5% 7% 1% 2% 5% 0% 6% 5% 0% 2% 4% 1% 3% 3% 1% 3% 3% 4% 2% 1% 2% 0% 1% 0% 0% 0% 4% 5% 0% 2% 5% 0% 0% 10% 0% 0% 3% 20% 23% 54% Survey Respondents Senior Leader Jobs (Ottawa) All Jobs (Ottawa) Source: EMSI Analyst data, Labour Market Ottawa, 2014 DETAILED SURVEY FINDINGS FINAL REPORT October 30,

25 As with the occupation groupings (see Chart 2), there may also be a lack of clarity around industry sectors. For example, in perusing the job titles, one would expect to see more respondents identifying themselves as working in Public Administration. Regardless of some potential confusion on the part of respondents, it seems that Public Administration, in particular, is somewhat under-represented in this initial survey. This may in part be due to hesitation by Federal Government executives to respond to surveys in the current political climate. A large number (23%) of respondents selected Professional, Scientific & Technical Services. This percentage is much higher than expected, based on the comparison to the Ottawa numbers. However, it is likely that this reflects the nature of the distribution list that was used by Invest Ottawa to circulate the survey. Additional Comments Given potential confusion regarding industry sectors and emerging cross-sector industries, we gave respondents the opportunity to clarify their sector if they were unsure where it fit (for instance, Information Technology organizations could fall under Professional, Scientific & Technical Services or Information & Cultural Industries - it is not a stand-alone sector as defined by Industry Canada). 19 respondents further clarified their sector, as per below. It should be noted that many of these respondents did not indicate to which industry sector they belonged. Defense and Security Industry Delivery and Transportation Federal Crown Corporation in the International Trade sector Fire Services Government / Defense Contractor with programs supporting Canadian Forces - Systems Integration of complex systems, subsystems, products ICT / Information Technology (X4) Semiconductor technology development and licensing and software licensing Intellectual property Marketing and Communications Meetings and Events Municipal government (X2) Passenger transportation Security & Emergency Services Technology products (system level) DETAILED SURVEY FINDINGS FINAL REPORT October 30,

26 SIZE OF ORGANIZATION One-third of respondents (34%) indicated that they worked in organizations with 500+ employees, while 25% worked in organizations with 20 to 49 employees. Chart 15: Organization Size 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 5% 2%7% 25% 6% 10% 11% 34% 1 to 4 employees 5 to 9 employees 10 to 19 employees 20 to 49 employees 50 to 99 employees 100 to 199 employees 200 to 499 employees 500+ employees 83 respondents Comparative Analysis While the survey numbers do not align with the overall Ottawa picture, this may be partly due to the fact that broadening the survey to all "C-suite" leaders allowed for multiple responses from the same organization. Understanding issues in large organizations could be seen as key, however, because of the sheer number of employees; a "fail" in leadership of a large organization will impact a greater proportion of the city's workforce. TYPE OF ORGANIZATION The vast majority (84%) of respondents were from organizations headquartered in Ottawa, with only 11% being subsidiaries with headquarters elsewhere in Canada. Only 5% were from a subsidiary with headquarters outside Canada. No data is available to compare to the overall Ottawa breakdown. Chart 16: Survey Respondents vs. Ottawa Overall 1 to 4 employees 5 to 9 employees 10 to 19 employees 20 to 49 employees 50 to 99 employees 100 to 199 employees 200 to 499 employees 500+ employees Chart 17: Type of Organization 11% 5% 0% 20% 40% 60% 5% 2% 19% 7% 13% 25% 9% 6% 3% 10% 1% 11% 1% 34% 0.4% 84% 54% Survey Respondents Ottawa overall (CBP, Jun 2014) Source: Canadian Business Patterns, June 2014 Headquartered in Ottawa A subsidiary (with headquarters elsewhere in Canada) A subsidiary (with headquarters outside Canada) 83 respondents DETAILED SURVEY FINDINGS FINAL REPORT October 30,

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