BC Business
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There are the undeniable B.C. business leaders who make an obvious choice for the BCBusiness Power List.
There are the undeniable business leaders who make an obvious choice for the BCBusiness Power List. Could anyone deny that Jimmy Pattison, who built a $5.5-billion empire from a car dealership, is the top dog in retail? Or that Geoffrey Ballard, once named “hero of the planet” by Time magazine, is the leader in environmental technology? But our poll of insiders reveals some unexpected names. For example, mention biotech, and Julia Levy is the obvious choice as industry leader. But few outside of the biotech community realize that there would be no QLT success story without the marketing acumen of its current president and CEO, Robert Butchofsky. Yes, Levy invented Visudyne and brought it to commercial production. But if doctors weren’t aware that age-related macular degeneration is the leading cause of blindness in people over 55, and that Visudyne was, at the time of its release, the only available drug treatment, QLT would still be just another struggling biotech. In mining, Teck Cominco CEO Don Lindsay would seem an obvious choice, simply due to the headline factor: his foiled bid to acquire Inco was all over the news last summer and he remains on the acquisition trail. But few outsiders realize that it was Teck director David Thompson who reshaped the B.C. mining industry in the 1980s and ’90s, and laid the groundwork for Teck Cominco’s dominance today. These power brokers have not only left their mark on B.C.’s economy, they have put this province on the world map. Thanks to some of the innovators and visionaries profiled here, B.C. is the world leader in fuel cells and computer games; we have set the standard for community planning and resort development; and industry leaders across Canada look to B.C. for guidance in mining and forestry. The following tell the stories behind the power driving this economy. Click to view a section INFORMATION TECHNOLOGY BIOTECHNOLOGY FILM & NEW MEDIA REAL ESTATE & DEVELOPMENT MINING TECH & ENVIRONMENTAL RETAIL FORESTRY TOURISM & HOSPITALITY INFORMATION TECHNOLOGY Bob Bailey, president and CEO, PMC-Sierra Bob Bailey represents the B.C.-California connection in this year’s list of most influential business leaders (see also Paul Lee, president of Electronic Arts). The head of PMC-Sierra is a veteran of the local tech industry, having guided the chip maker from its early days as a spin-off of BC Tel’s R&D division, through a U.S. acquisition, and then engineering a successful comeback from the tech crash of 2001. Bailey joined the company in 1993, when it was known as Pacific Microelectronic Centre, a business division of BC Tel’s MPR Teltech R&D division. In 1994, Bailey engineered the company’s acquisition by Sierra Semiconductor of Santa Clara, California, which subsequently changed its name to PMC-Sierra. Today, the company’s operations remain headquartered in Burnaby, while its corporate head office is in Santa Clara. Bailey splits his time between both locations. In 2005, the company sold US$291 million worth of computer chips used in broadband communications and storage. Bailey took a considerable risk when joining PMC-Sierra in 1993. At the time, he was heading a US$500-million business for AT&T Microelectronics, while PMC-Sierra’s sales were approximately US$2 million. Since taking the helm, he has engineered two spectacular success stories. First, he built PMC-Sierra into a major player in the communications chip industry, taking the company to US$694.6 million in sales in 2000. Then he structured a comeback, following an industry-wide collapse in 2001. In 2002, PMC revenue had fallen to US$218 million, and the stock price had gone from US$225 a share at its peak in 2000 to below US$3. A big part of the company’s successful turnaround is due to a shift of focus to Asian markets. The company posted US$206 million in revenue in the first six months of 2006, and its stock price has rebounded slightly to the US$7 level. The company expects that over half of its revenue this year will come from Asian markets, because it started concentrating on developing Asian distribution channels three years ago, anticipating the larger demands from these countries. Bailey brings a background in both science and finance to his role at PMC-Sierra. He has an electrical engineering degree from the University of Bridgeport in Connecticut and an MBA from the University of Dallas. He spent 10 years with Texas Instruments after completing his MBA and before joining PMC-Sierra, he was VP of application-specific integrated circuits at AT&T’s Microelectronics Unit. RUNNERS UP Daniel Friedmann, president and CEO, MacDonald, Dettwiler & Associates Ltd. “Daniel Friedmann has shown outstanding performance in his role as CEO. He has put together a diversified team that has placed MDA in a class of its own internationally.” Iraj Pourian, president and CEO, Sierra Systems Group Inc. “Mr. Pourian is one of the best project managers in the systems business in Canada. This is exactly what Sierra Systems needs to compete in a tough industry with the likes of IBM and others.” Jason Cohenour, CEO, Sierra Wireless Inc. “Mr. Cohenour always has a focus grounded in the belief in the potential of wireless to change the world. That ¬fundamental belief in what he does is probably why he is so influential in the wireless industry in B.C.” BIOTECHNOLOGY Robert Butchofsky, president and CEO, QLT Inc. Hands up: how many of you know the leading cause of blindness in people over 55? Astonishingly enough, if you were to pose the question to a random sample of BCBusiness readers, chances are pretty good that at least a few would be quick to identify the arcane medical condition: age-related macular degeneration (AMD). And inseparable from our recognition of the condition is the name of its treatment: Visudyne. The fact that the terminology is so firmly engrained in our minds is due largely to Robert Butchofsky, who oversaw marketing for QLT when Visudyne was launched in 2000. QLT is, of course, the anchor of B.C.’s biotech industry, and founder Julia Levy has been deservedly enshrined in local ¬business legend as the scientist-entrepreneur who showed the rest of the industry that it is possible to translate a promising drug discovery into a profitable company. [pagebreak] But despite the brilliant science and the years of hard work that it took to develop its lead drug Visudyne, without a market for that drug, QLT would be just another blip on the biotech radar. It was Robert Butchofsky who publicized the drug’s commercial application and helped convince doctors worldwide of Visudyne’s effectiveness. Butchofsky was QLT ’s senior director of ocular marketing in 2000, when Visudyne became the first therapeutic treatment approved worldwide for AMD. He was instrumental in a comprehensive program aimed at enhancing awareness of AMD and promoting its early detection. Thanks to those marketing efforts, the first commercial launch of a B.C.-developed drug therapy was an immense success, racking up US$98 million in sales in the first 12 months. Butchofsky was no stranger to drugs with popular commercial applications when he joined QLT in 1998. He had previously spent eight years at Allergan Inc., where he was involved in marketing Botox. He joined QLT as the associate director of ocular marketing, and following the success of the Visudyne launch he was promoted to senior VP of marketing and sales in early 2005, before taking the reins as president and CEO in February 2006. Survey respondents identify Butchofsky’s unique combination of science, marketing and business savvy as the key attributes behind his success. One points to his range of expertise in dermatology, neurology and ophthalmology, in addition to his obvious marketing acumen. “His role in developing one of B.C.’s only profitable biotech companies must be recognized,” the respondent concludes. RUNNERS UP Willilam Hunter, president and CEO, Angiotech Pharmaceuticals Inc. “Bill is simply an accomplished scientist and business person. He is smart, he is agile and he is capable of managing the research process to its maximum.” Kenneth Galbraith, chair and interim CEO, Anormed Inc. “Kenneth Galbraith is perhaps the most prolific biotech executive in B.C. He sits on the boards of Angiotech and Cardiome and has contributed immensely to the community through his role at the BC Biotechnology Alliance and the Canadian Bacterial Diseases Network.” Simon Sutcliffe, president, BC Cancer Agency “Since joining the BC Cancer Agency in 2000, Simon Sutcliffe has demonstrated an uncanny ability to manage a wide range of stakeholders and make the BC Cancer Agency Canada’s leading cancer research and advocacy institution.” TECH & NEW MEDIA Paul Lee, president Worldwide Studios, Electronic Arts What’s a Vancouver boy doing heading up development and production at the world’s largest developer of electronic games? With 2006 revenue of US$2.9 billion, Electronic Arts far outpaces the competition, and at just 42, Lee oversees operations at Electronic Arts studios around the world, including locations in Los Angeles, London, Tokyo and Shanghai. Each of the company’s nine studios has its own manager responsible for overseeing creative development of the next crop of games and for meeting the industry’s notoriously punishing deadlines. And each studio manager reports to Lee. When Lee completed a commerce degree at UBC in 1987, computer games did not figure in his career plans. He ¬headed to Windsor, Ontario, where he worked as an investment ¬manager for Chrysler Canada. However, he soon found himself back in Vancouver helping out his high-school buddy, Don Mattrick. Mattrick had started Distinctive Software, a developer of games for personal computers. The company was struggling, despite having come up with Test Drive, a popular car-racing game for personal computers in the pre-Windows days of the DOS operating system. Lee, a chartered financial analyst, helped structure the sale of Distinctive to California-based Electronic Arts for US$11 million in 1991, and stayed on to work alongside Mattrick. Lee served as GM of Electronic Arts Canada and VP and COO, before taking over as president of worldwide studios when Mattrick stepped down in September 2005. Lee served as co-chair of the Premier’s Technology Council from its inception in 2001 through 2005, and remains a member today. RUNNERS UP Warren Franklin, CEO, Rainmaker LP “Warren recognizes value in everything: location, talent, technology, marketing and production. It is this recognition and his ability to derive value from people and capital that has made Rainmaker such a powerful force in the animation sector in B.C.” Chris Bartleman, partner & executive producer, Studio B Productions “Chris brings over 20 years of experience to the animation industry in B.C., going back to the days of paper animation. The industry has seen major transformation since the early ’80s, and Chris has been a crucial part of its development.” Stephen Hegyes, partner, Brightlight Pictures “Brightlight has produced 15 feature films since its inception and Stephen has been instrumental in its success as a production house. What is significant about Stephen is his emphasis on different genres, and he definitely does not shy away from controversy.” REAL ESTATE & DEVELOPMENT Terry Hui, president and CEO, Concord Pacific Group Inc. These days, it takes a certain amount of pull just to get an extension built on your backyard deck. A friendly relationship with your banker is definitely an asset, and it helps if someone at city hall can give you a call when there’s a lull in the queue at the permit desk. Then, of course, there’s labour: if your sister-in-law’s friend’s brother’s handyman isn’t available, it might be another year before you’ll be hosting that backyard barbecue. Magnify that by about a billion, and you’ve got an idea of the hurdles Terry Hui has had to negotiate in rebuilding Vancouver’s north False Creek skyline over the past 15 years. As one survey respondent comments, “Terry is a details guy, and I guess that comes from his fix-it days in the past. That is an important asset when you are dealing in the billions of dollars. Sometimes details are what make or break a project in this business.” The 41-year-old president and CEO of Concord Pacific Group is credited with guiding the single biggest development in Vancouver’s history. When it is completed, the Concord Pacific Place project on the former Expo 86 site will include 9,100 residential units, plus retail and commercial space, on 204 acres of downtown land. Estimates of the value of the project range from $5 billion to $7 billion. [pagebreak] Known for his close relationship with Li Ka-Shing – some refer to him as the Hong Kong billionaire’s emissary in Vancouver – Hui is often credited with unleashing the flood of Hong Kong development money that came to Vancouver in the 1990s. Hui made the Li Ka-Shing connection at the University of California, where Victor Li, son of Li Ka-Shing, was bunking with a high-school buddy of Hui’s. When he moved back to Vancouver, Hui co-founded software developer Multiactive Technologies, while maintaining a side interest in real estate through his connection with the Li family. (Multiactive would become Maximizer Software Inc., of which Hui remains chair today.) The Hui family would increase its stake in the privately held Concord Pacific, until finally owning the company today. Concord’s megaprojects aren’t limited to Vancouver. Hui is also overseeing the $1.5-billion Concord City Place development in Toronto. RUNNERS UP Eva Lee Kwok, CEO, Amara International Investment Corp. “Eva’s influence extends well beyond real estate. She hobnobs with some of the biggest people in the country. That is because of her hard-working nature and her willingness to learn from others.” Michael Audain, chair, Polygon Homes “Michael has not only built so many homes in B.C., he has also contributed tremendously to the arts. He even has a foundation that supports the arts all over the country.” Peeter Wesik, president, ParkLane Homes “In the development business, the top guy usually has his or her hands in everything to make sure that projects are fulfilled. In Peeter’s case, he empowers his employees and has built a strong team around him.” MINING David Thompson, director, former president and CEO, Teck Cominco Ltd. While current Teck Cominco president and CEO Don Lindsay faces some momentous decisions in today’s environment of global mega-mergers, it is director and former president and CEO David Thompson who many consider the architect of the international mining giant that Teck Cominco has become. Thompson joined the company then known as Teck Inc. in 1980 as CFO, and was named president of Cominco in 1995. He would hold that position through the merger of Teck and Cominco in 2001, stepping down as head of Teck Cominco in 2005. During that time, he reshaped B.C.’s mining industry. He was a key architect in Teck’s purchase of a major stake in Cominco from Canadian Pacific in 1986, and then stickhandled complex negotiations that turned Canada’s fragmented coal industry into a dominant world player through the consolidation of six mines into a single operating entity: the Elk Valley Coal Partnership. As CEO of Cominco in the late 1990s, Thompson saw the company through a down cycle in commodities markets, setting the stage to capitalize on the boom that would emerge early in the new century. Initiatives during this time included the purchase of a zinc and lead mine in Washington in 1996, and overseeing the $150-million upgrade of Cominco’s Trail smelter. Today, Teck Cominco Ltd. is a major Canadian mining company with interests in 13 producing mines in Canada, the U.S. and Peru, and a new underground gold mine starting production in 2006. But survey respondents lauded Thompson for far more than his business acumen. He is repeatedly singled out for his down-to-earth manner, with one respondent commenting that Thompson is “just an overall approachable guy,” adding that “he will hear you out, no matter where in the totem pole you stand.” Coupled with his personable manner, Thompson is praised for his concern for the environment and the communities where Teck Cominco operates. He was the driving force behind Teck Cominco’s Charter of Corporate Responsibility, and he is largely credited with earning the company’s many awards, including Developer of the Year in 2004 from the Prospectors and Developers Association of Canada; and Excellence in Mine Development in 2005 from the B.C. and Yukon Chamber of Mines. RUNNERS UP Don Lindsay, president and CEO, Teck Cominco “Don has brought an investment-banking culture to the mining sector in B.C., and that has really transformed the mining sector in B.C. and made it an international player.” Rob Franklin, former chair, Placer Dome Franklin headed up the special committee struck to evaluate Barrick Gold Corp.’s bid to buy Placer. Robert Friedland, chair, Ivanhoe Mines Ltd. “Robert is a calculated risk-taker. He will push his point of view to the edge but if, in the final analysis, he is convinced that an investment will be money losing, he will back off. Admitting mistakes is something that does not come easily in the mining sector.” TECH & ENVIROMENTAL Geoffrey Ballard, chair, General Hydrogen; co-founder, Ballard Power Systems “Geoff Ballard is the father of fuel-cell technology and its application in business. Need I say more?” That comment from one of our survey respondents sums up the enormous influence Geoffrey Ballard has had not only on B.C.’s cluster of fuel-cell companies, but on the international race to commercialize an alternative to fossil-fuel-burning engines and lead-acid batteries. Innovation, perseverance and determination are the qualities most often cited by respondents in describing Ballard. The man who shared Time magazine’s 1999 “Hero for the Planet” designation has doggedly pursued his vision of a ¬planet without smog. The international attention Ballard brought to Vancouver has translated to unequalled influence, both provincially and federally. During the formative years of Ballard Power Systems, Ballard commanded the attention of a succession of premiers. “He certainly had support from whatever flavour the government was, because it was hard not to support what he was trying to do,” recalls Ballard Power co-founder Paul Howard. “He would get access because they wanted to know what he was doing, and it reflected well on the senior levels of government.” That influence included convincing the province to fund development of a fuel-cell bus, billed as “the world’s first zero-emission vehicle,” which took its inaugural spin around the block in 1993. Ballard’s influence during those formative years of B.C.’s fuel-cell industry ¬extended beyond provincial borders. “I have sat in on groups with Jean Chrétien where he and Chrétien would carry on the dialogue,” recalls Howard. “I can’t say they were buddies, but they would put their feet up and chat.” Commercial production of a fuel-cell car remains an elusive goal today, and Ballard shareholders haven’t always been impressed with the company’s performance; its stock soared to the $175 range in 2000 and today languishes below $10. But regardless of the company’s fortunes, a local industry has grown from Ballard’s innovation and determination. “Ballard pioneered the sector in the early ’80s,” notes John Tak, president of industry association Fuel Cells Canada. He points out that there are now more than 2,000 employees in the sector in Canada, about 1,400 of them in B.C. Angstrom Power Inc. president and chief technology officer Ged McLean attributes his company’s origins to a University of Victoria research project that Ballard was ¬instrumental in founding in 1993. “What came out of that program was a remarkable number of young people who have gone from the University of Victoria into a number of companies associated with the fuel-cell cluster, and responsible at least in part for the creation of a number of companies,” McLean explains. [pagebreak] RUNNERS UP Bruce Aitken, president and CEO, Methanex Corp. “Bruce Aitken is known to be a driver. He drives himself and expects nothing less from his team. He rewards them handsomely for their hard work and it shows in the company’s performance.” David Demers, CEO, Westport Innovations Inc. “David has a truly international outlook to the business. He knows that the application of Westport’s technology must come into play in emerging markets and he is fearless about going into these markets.” Mossadiq Umedaly, chair, Xantrex Technology Inc. “Umedaly is just so passionate about what he does. It is hard to find that among executives these days. Most are guns for hire. Mossadiq is an entrepreneur through and through and has a lot at stake personally in this company.” RETAIL Jimmy Pattison, president and CEO, Jim Pattison Group One survey respondent commented that Jimmy Pattison “is the most powerful person in B.C. It’s his money.” There is no contesting the fact that Pattison is rich and that money buys influence. Canadian Business ranks Pattison fifth on its Rich 100 list, with an estimated net worth of $4.5 billion. And when you own a 150-foot yacht, complete with helicopter, it’s easy enough to include such influential figures as George Bush Sr., John Major and Time Inc. CEO Ann Moore among your sailing companions. But it’s more than just his money that commands respect; it’s also his legendary blunt talk and decisive management style. More than one respondent singled out a “strong personality” as Pattison’s most admirable quality, and one described Pattison’s business strategy succinctly: “He knows what he wants and goes and gets it.” Examples of his “strong personality” are the stuff of urban legend: he fires the worst-performing salesperson at the end of every month and locks the boardroom door at the precise minute meetings are scheduled to begin. Pattison himself may be the source of these legends; he has certainly done nothing to dispel them. Going out and getting what he wants has been Pattison’s business plan since the day, in 1961, when he bought his first Vancouver car dealership, having worked his way up from car washer and, later, salesman. The acquisitions have continued unabated ever since and show no sign of letting up. Today, the conglomerate that bears his name owns 15 car dealerships and more than 100 grocery stores, not to mention companies involved in, among other things, tourist attractions, illuminated signs, fish processing, TV and radio broadcasting, periodical distribution, packaging and financial services. While his influence extends far beyond the retail sector, it’s there that Pattison got his start. He often tells the story of walking the dusty roads of Saskatchewan as a boy, peddling everything from seeds to pots and pans from door to door. And it was selling cars that got him started in the business world. At the age of 78, Pattison shows no sign of easing up on the throttle. He continues to report daily to Pattison Group headquarters in downtown Vancouver, overseeing the empire that generates annual sales of $6.1 billion and employs 28,000. RUNNERS UP Brandt Louie, president and CEO, H.Y. Louie Co. “Brandt Louie has a presence few business people do. He is a strategic thinker and a people’s person at the same time. He also has a sense of humour that is legendary.” Michael Korenberg, director, Jim Pattison Group “Jim Pattison relies on Mike Korenberg for the day-to-day management of the Pattison group. I have seen Mike in action. Very powerful individual.” Chip Wilson, chair, Lululemon Athletica Wilson founded the yoga gear retailer in 1998 and sold a minority interest to a private equity firm this year for $225 million. FORESTRY Jim Shepherd, president and CEO, Canfor Corp. In the face of seemingly intract-able crises in the forestry sector in recent years, Jim Shepherd took a leadership role by making decisions, and then throwing Canfor’s considerable resources behind implementing much-needed solutions. Shepherd was named president and CEO of Canfor in 2004, following Canfor’s acquisition of Slocan Forest Products Ltd., where he had also served as president and CEO. His tenure initially fell under the shadow of his outspoken predecessor, David Emerson, but Shepherd lost no time in making his own mark on the company. No. 1 on the list of industry woes when Shepherd stepped into the top office at Canfor was the softwood lumber dispute with the U.S. Shepherd was one of the first forestry CEOs in Canada to speak out in favour of the Harper government’s negotiated settlement – a controversial stance, given the success of a string of legal decisions in Canada’s favour. At the same time that he was championing the softwood agreement, Shepherd refused to back down on the legal front, vowing to pursue Canfor’s claim against the U.S. until a settlement is ratified. One survey respondent summed up the industry’s respect for Shepherd’s leading position in the softwood dispute: “Throughout the litigation and negotiations around the softwood lumber deal, Jim Shepherd was rock solid. He has shown that we cannot back down during negotiations, but at the same time have to be realistic about what we can achieve as an industry in Canada.” Shepherd also refused to stand by and wait for government or industry association solutions to the other major industry crisis: dwindling access to international markets. He oversaw the purchase of New South Companies, a group of southern U.S. pine mills and a trading company that gave Canfor improved access to the U.S. Even more significant were Shepherd’s decisive moves to improve Canfor’s access to Asian markets. In partnership with China’s government, he oversaw the development of a curriculum at a Shanghai trade school aimed at training construction workers in the use of dimension lumber. The first class graduated last August. Shepherd also oversaw the consolidation of six Vancouver sorting facilities into one, with the specific intent of catering to the Japanese desire for pristine lumber, unmarked by repeated handling. A telling indicator of Shepherd’s influence both provincially and federally is his appointment to international advisory boards. He was ap¬pointed by the Harper government as the forestry industry’s only representative on a trade panel with the U.S. and Mexico, and by Gordon Campbell’s government to its Asia-Pacific advisory board. RUNNERS UP Hank Ketcham, president and CEO, West Fraser Timber Co. Ltd. “The Ketcham family has contributed so much to B.C. Henry has followed this distinguished tradition. He’s a visionary and will always have the interests of employees and the province first and foremost.” [pagebreak] Russ Horner, president and CEO, Catalyst Paper Corp. “Russ is not your typical forest industry executive. He is very well travelled and knows the future of the industry in B.C. lies outside of North America. He has moved to make Catalyst Paper a leading integrated paper producer in the world.” David Emerson, federal trade minister “Despite what everyone has to say about Mr. Emerson, I think that he has an inner desire to serve people. I think that is what causes him to keep on plugging away in his portfolio.” TOURISM & HOSPITALITY Joe Houssian, president and CEO, Intrawest Corp. “Spotting value,” along with “persistence and determination” are qualities frequently singled out by survey respondents when describing the ¬secrets to Joe Houssian’s success. He was ¬prescient indeed when he transitioned his real-estate company to a resort developer and operator with the purchase of Blackcomb in 1986. Within 20 years, Intrawest would parlay that single asset into a multibillion-dollar resort conglomerate that would command $2.8 billion in a private sale last August. When Houssian founded Intrawest in 1976 with his cousin, Mohammed Faris, it was an urban residential and commercial real-¬estate development firm. A decade later, Houssian would see an opportunity at Blackcomb, which was being developed by Aspen Skiing Corp. At the time, the village at the base of Blackcomb was just beginning to take shape and Whistler was a competing mountain a few kilometres down the highway. In addition to investing millions in state-of-the-art ski lifts, Intrawest invested $25 million in facilities at the base of Blackcomb. In 1997, it all came together when Intrawest bought Whistler Mountain, creating the Whistler Blackcomb Ski Resort. In 1999, it became the first North American resort to record more than two million skier visits. Intrawest’s success in developing Whistler Blackcomb garnered considerable attention in the resort-development industry, and the company formed partnerships to repeat the success elsewhere. Other resort developments that bear the Intrawest stamp include Keystone in Colorado and Squaw Valley in California. Through the ’90s, while proceeding with the development of Blackcomb, Intrawest ¬acquired interests in a number of ski resorts, ¬including Quebec’s Mont Tremblant and such U.S. destinations as Copper Mountain in Colorado and Mammoth Mountain in California. The company has since diversified into four-season resorts, owning or operating 25 golf courses and developing a resort property on the Hawaiian island of Kauai. Today, Intrawest operates nine mountain resorts in North America and owns one in France. Intrawest reported revenue of US$1.61 billion in the fiscal year ending June 30, 2006. RUNNERS UP John Furlong, CEO, Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games “John Furlong will and has done more for B.C. tourism than any other person in history. John’s commitment and his ability to manage a diverse range of stakeholders is what is going to make Vancouver’s Olympics a success.” Larry Berg, president and C