In the head-office sweepstakes, two very different global trends are blowing Vancouver and B.C.’s way. In some countries, protectionism is shutting down the welcome. And around the globe, international companies are seeking to disaggregate – that is, to spread their expertise and talent around for economy-of-scale reasons.
As evidenced by Vancouver and B.C.’s position at the top of rankings as a business-friendly jurisdiction, we have what international firms want: highly educated and talented people; strategic geography and proximity to large and expanding markets; low taxes; connected multicultural people and communities; solid infrastructure; and knowledgeable, supportive business ecosystems. In fact, says Dawn Sutherland, president of the recently arrived Maple Leaf Education North America (whose parent company delivers the B.C. education curriculum in China), “pretty much whatever you need, those resources are available for you.”
So, we should be a natural to promote worldwide. Head offices play an important role in building an economy that has greater and better job growth, higher wages and more trade, and encourages investments in infrastructure, innovation and social services to reach the province’s full potential.
And many people are out doing just that. There’s just one challenge: they’re not doing enough of it collaboratively with one voice.
“To be more effective, we should all be marketing our often unknown advantages and strengths in tandem,” says Greg D’Avignon, chair of HQ Vancouver, a joint initiative by the federal and provincial governments and Business Council of British Columbia to attract major international companies’ North American headquarters to our city and province.
“If a city delegation goes to Shanghai, and the province of B.C. and groups like HQ Vancouver and a federal minister goes to Shanghai, it should be seamless in terms of our brand, what people hear of our strengths, and the opportunities we express,” D’Avignon explains. “We’ll attract more companies, investment and facilitate more trade that will make all of B.C. more successful if we’re working together.”
As a collaborative model, he cites London, England, with its 33 districts (32 boroughs and the City of London) and 8.5 million population. That well-known and seemingly amorphous area has united in one entity, London & Partners, to shop London around the world.
“In B.C. we have to do the same – and HQ Vancouver is a platform to support all the good work numerous organizations and governments do to that end,” D’Avignon says. “As a small open trading economy with a lot to offer, we will compete more effectively with the world if we are not competing with one another or offering disconnected strategies that confuse businesses.”
HQ Vancouver: connecting, helping, supporting
In building that vital collaboration, HQ Vancouver has another model it can look to: itself. The 2015-established organization, with 57 firms now affiliated, is all about connecting, helping, supporting. As Maple Leaf’s Sutherland attests, the business ecosystem to which HQ Vancouver connects newly arrived global companies is absolutely key to settling in and succeeding: “For any new startup there are lots of challenges. You don’t want to feel isolated. HQ Vancouver helps you find your way through the myriad steps of becoming part of the business community. A big part of it is knowing who to go to for help and where to find services, and then just how to get connected. It can be very minor things like getting your office set up, to major issues related to regulation compliance and other structural elements of setting up a business.”
HQ Vancouver and dignitaries gather with companies establishing head offices in British Columbia (Mar 28, 2017)
A leading national law firm, McCarthy Tétrault, uses its strong local presence to support HQ Vancouver in helping companies settle here. Vancouver managing partner Sven Milelli notes both the advantages and challenges awaiting new arrivals: “Most companies deciding to establish headquarters in Vancouver will already have a general familiarity with the business and legal operating environment, including key corporate, tax and investment features. The challenges typically arise in relation to the transition from a ‘beachhead’ to a fully fledged headquarters, as the need to scale up all aspects of an operation may bump into constraints and in some cases require a reconsideration of how the business is structured locally.
“A common issue that companies face relates to expanding their local workforce, which in cases may be supplemented by executives and specialized talent from other jurisdictions. We help clients proactively navigate employment and immigration issues to assure a smooth transition, while educating them on local employment law and market practices – some of which may differ considerably from foreign laws and practices – to ensure their ability to attract and retain employees as they expand.”
From Sutherland’s perspective, the support of HQ Vancouver and its partners like McCarthy Tétrault reflect B.C.’s openness to outsiders coming in. “There’s a focus on creating very genuine relationships that then get built on over time; a very nice cultural reciprocation of experiences.” Maple Leaf is already planning to open a second school in B.C., she adds.
Attracting talent and staying green
The crumbling of the old, lone, ivory-tower head office concept is proving to be a talent-rich bonanza for our province, says D’Avignon. “The virtual and digital animation based in Vancouver is a great example. Microsoft’s head office is in Redmond, Washington, but their centre of excellence in virtual reality and some digital initiatives is here. You see it also with Sony Pictures Imageworks, which relocated its global headquarters here from California, and in the gaming industry, which now cites Vancouver as the global centre for digital effects in film and digital media. That’s a story founded on talent, both resident talent from great schools and programs here, but also talented people from around the world that can move to B.C. with greater ease and cultural acceptance and support.”
Then there’s B.C.’s major clean appeal. “We walk the talk in B.C. on climate leadership; 98% of our electricity comes from hydroelectric renewable energy,” says D’Avignon. “Companies increasingly want to reduce their carbon footprint. They can look to British Columbia to locate, in everything from cloud computing to digital aggregation. With companies managing large volumes of data, one of the biggest costs is energy, not just to power machines but to cool them. With the colder environment and clean energy, we can think about creating opportunities to attract firms who serve the world’s data and analysis needs.”
With all the above, Vancouver and B.C. add up to a winning mix – especially if the cooks get together in stirring the broth. “We’re at a pivotal time,” says D’Avignon. “HQ Vancouver and all of us collectively are doing some good work. We now need to increase our sophistication and effort even more, to be more collaborative and more focused if we’re going to compete and win in a pretty competitive global environment.”
To find out more about HQ Vancouver, visit its website. And find out how Vancouver and B.C. can meet your location objectives for a North American head office.
