But what would Ottawa actually do differently? Details were scarce, and traditional business think tanks, dominated by global companies, tended to stay silent.

But one voice made itself heard. Just days after the release of Trump’s National Security Strategy, the Council of Canadian Innovators (CCI) fired back with a layered plan for building a domestic technology industry that could free the country from foreign tech platforms and build Canadian prosperity.

Founded in 2015 by two energetic tech leaders – former BlackBerry co-CEO Jim Balsillie and venture capitalist John Ruffolo, then CEO of OMERS Ventures – the CCI provides a voice for more than 150 independent tech companies. Rather than ceding control of Canada’s digital infrastructure to foreign multinationals, CCI aims to build a community of more ambitious homegrown tech firms that put Canada first.

CCI’s letter urged the government to focus on new export markets and embedding value-added innovation into traditional exports such as resources, energy and food. Ottawa should convene industry advisory groups to help guide these new trade negotiations, the letter argued, and promote made-in-Canada tech platforms.

“Canada needs to decide whether we will be strategic participants or a vassal state to global tech giants,” CCI CEO Patrick Searle said in a statement. The new U.S. security strategy, he said, proves that in today’s markets, intellectual property, AI and quantum computing, and new defence technologies aren’t just important business breakthroughs, but “national security assets.”

With the United States adopting a winner-take-all manifesto, Searle says, “Canada needs to respond with urgency, clarity, and a domestic strategy built around sovereign capability.”

Rick Spence is the editor-at-large at Corporate Knights. He is based in Toronto.

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Complex overlapping forces, such as the pandemic, war, migration and energy scarcity, are transforming the world in as yet unknown ways. Today’s leaders need to be collaborative, communicative and agile to be effective in this landscape – soft skills are now essential skills to thrive.

But too many of today’s corporate leaders continue to cling to leadership practices from a bygone era, leaning into archetypes that are ill suited to addressing the world we live in today – highly networked, and rapidly evolving.

Henry Ford and John Rockefeller were influential figures in shaping modern management of big business in the 1910s. This first wave of corporate leaders operated their companies with an autocratic style, viewing lower-level managers and workers as extensions of their own will.

In today’s fast-changing world, the contributions of employees are indispensable, and relying predominantly on top-down decision-making processes results in long delays or inaction. Instead, there is a growing trend toward distributed leadership models that catalyze and empower collective action rather than control and direct it. These people are systems leaders and can drive change.

Systems leadership combines familiar skills such as subject expertise, strategy, program management, coalition-building and collaboration in new and different ways to create systemic transformation that leads to tangible change. It’s a leadership model that acknowledges the complexity of modern society and the interconnectedness of various systems. It allows leaders to identify the root causes of problems and work toward sustainable solutions that address multiple issues at once.

Take Kate Bingham, for example. She left her job as a venture capitalist in July 2020 to head the U.K.’s Vaccine Taskforce, realizing quickly that “we had one shot to get it right and no time.” Without a playbook to guide her, she ordered vaccines from seven developers instead of the EU’s vaccine-buying group, with no certainty that even one of them would work. Bypassing established contracting procedures, she struck “creative” deals, as the government later reported. She was, of course, criticized – but her approach enabled Britain to secure large vaccine supplies and get people vaccinated.

Under Satya Nadella’s leadership, Microsoft has undergone a transformation from a traditional software company to a cloud-based technology leader. One of the hallmarks of Nadella’s leadership style is his focus on empowering employees to take risks and innovate. He has emphasized the importance of creating a culture of learning, where employees are encouraged to experiment and learn from failure. This approach has led to the development of innovative products and services, such as Microsoft Teams, which became a vital tool for remote work during the COVID-19 pandemic. Microsoft has achieved record growth and profitability, with the company’s stock price increasing more than 500% since Nadella became CEO in 2014.

Too many of today’s corporate leaders continue to cling to leadership practices from a bygone era, leaning into archetypes that are ill suited to addressing the world we live in today.

In the past, business leaders focused solely on serving shareholders and the bottom line. Since they were often making up the rules for nascent industries that didn’t have them, the pioneering bosses relied on decisiveness and self-confidence to plot their course through uncharted waters. And, of course, they had an impact. Ford is credited with developing the modern assembly line and mass-production techniques. He is also known for his commitment to paying his workers a living wage, which he believed would increase their productivity and loyalty to the company. Rockefeller was able to dominate the oil industry and become one of the most powerful men in America. However, his ruthless tactics were controversial  and ultimately led to increased government regulation of business practices.

In the 1980s and 1990s, it was General Electric CEO Jack Welch who put his indelible stamp on how to lead. He took the company from one that only sold appliances and light bulbs to a booming multinational corporation with multiple product lines. Business schools were erected teaching the “Welch Way.” However, the toxic results-oriented culture he created at GE contributed to its eventual downfall. In recent years, many have questioned Welch’s strategy, leadership style and legacy. Was he really a CEO that today’s emerging business leaders should emulate?

Today, having a high-performing, profitable company isn’t enough. In the boardroom, there’s a broader set of concerns that includes sustainability; climate change; equity, diversity and inclusion; and an overall commitment to responsible leadership.

While there is recognition from global corporate leaders that many of the forces we are facing have far-reaching impacts, they continue to be viewed through a predominantly business-oriented lens. The environment, for example, continues to be treated like an external variable that has the potential to affect the bottom line, rather than a resource that has value beyond quarterly reports. The pyramid-style hierarchies with the Welches of the world at the top need to be replaced by leadership models that feature flexible, flatter hierarchies that revolve around shared leadership built on a clear mission and purpose.

Leaders who can navigate complex landscapes with flexibility and creativity are much more likely to succeed than those who cling to outdated models of leadership. Doing this sounds simple and obvious, yet most find it difficult. We are experts at denying or minimizing a new reality: it isn’t all that significant, we tell ourselves, or it isn’t new, and besides, it won’t last very long, and then the comfortable status quo will resume.

Leaders who can navigate complex landscapes with flexibility and creativity are much more likely to succeed.

In times of heightened uncertainty, “leaders that embrace a consistent application of values stand out,” says Narinder Dhami of New Power Labs, a platform to flow capital more equitably. We may not know what lies ahead, but a leader creates trust and a sense of safety by behaving fairly and consistently connecting their actions to values. And because they are confronting new realities, they are also open to pivots and detours if necessary.

Mike McInerney, a former HR executive in corporate Canada and now co-founder of Rapid Alignment, argues that principle-based leaders “create greater, more trusting and communicative relationships that are required to move organizations forward when they are facing turbulent times.”

Traditional models of leadership are no longer sufficient to navigate the rapidly changing world we live in. As such, we must continue to identify and learn from leaders who have moved us through chaos with humanity. Leaders like Jacinda Ardern, the former prime minister of New Zealand, who showed the world that leading with compassion can deliver results. Ardern’s leadership style played a critical role in promoting healing and unity after 51 people were killed by a white supremacist at two mosques. Her focus on compassion, inclusivity and decisive action helped to build trust and confidence in her leadership, and her response to the crisis has been widely praised, both domestically and internationally. Her leadership style also highlights the importance of transparency and communication in times of crisis.

Systems leaders apply an unusual combination of skills and attributes. Like many of today’s leaders, they are smart, ambitious visionaries, with highly developed management and execution skills. But what sets them apart is how they use their “soft skills,” such as compassion and communication, to create inclusive environments where innovation and creativity thrive. These leaders don’t try to place complex issues in silos but take a networked approach and play the long game, placing an emphasis on creating trust, because business moves at the speed of trust.

Shilpa Tiwari is the co-founder of Isenzo, a boutique firm that takes a systems approach to ESG. 

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Dear Minister Bill Morneau,

As leaders of major corporations in Canada, we are focused on our country’s safe road to recovery. Canadians are experiencing significant economic hardship because of the COVID-19 pandemic – challenges that will continue for months and possibly years.

Around the world, countries have adopted unprecedented policies during this crisis. Canada’s federal and provincial governments have acted boldly and creatively with their emergency relief measures, with positive results. However, for a full-scale recovery, even bolder action will be needed.

We have the opportunity to emerge from this moment with a resilient economy that creates prosperity for more Canadians. We will get there by working together with all the industries that have led us to where we are as a nation today — from natural resources to telecommunications, manufacturing and financial services. We must build on and reinforce that foundation to set us up to thrive in the future. To get there, we must leverage our strengths and invest in our most promising assets that align with growing global markets. Canada already has a competitive advantage in four of them: low-carbon natural resource commodities, zero-emissions vehicles, smart buildings, and sustainably produced food. All are poised for explosive growth going forward.

On the natural resources front, Canada is a treasure trove for the low-carbon commodities that the world needs to decarbonize, and we are among the most carbon-efficient producers of those commodities. It’s well-known that we are the fourth largest oil producer in the world. It’s less well known that our vast supplies of bitumen are uniquely suited for producing carbon fibre for strong, lightweight materials that would be the top choice for manufacturing electric vehicles, and a host of other applications if we can crack the cost nut. Canada also generates more renewable electricity than any country except China, which creates a path for us to be a supplier of choice for the growing clean hydrogen market. In addition, Canada has an abundance of bio-based natural resources, the waste residues of which are ideal feedstock for renewable jet fuels, a market which is taking off.

On the vehicle front, we are a top-five exporter by value globally and a top-five producer of the minerals that are essential for battery production. We have the resources and industrial ecosystem to be a North American hub for battery production and zero emissions vehicles, including freight trucks and buses.

Looking at buildings, Canada is one of the world’s largest commercial landlords. Twelve of the top 50 real estate investors in the world are based in Canada, and we are recognized as global leaders in green building. With green renovations taking centre stage in recovery packages across the globe, Canadian real estate investors possess the know-how and property tech required to surf this long-term wave.

In food, Canada is the world’s fifth-largest agricultural exporter and is number one in pulses. By restoring soil carbon, we can feed a growing global appetite for sustainably sourced food, including plant protein.

If we invest in these tangible markets, it would also be a shot in the arm for Canada’s financial services and technology sectors. Toronto Finance International estimates there’s potential to grow annual revenues in low-carbon banking, insurance and investment by $110 billion in the next five years.

All of these markets are fast-growing but in a state of flux. Whether Canada becomes a supplier or a buyer in the coming decades depends on our decisions today.

Doing this will not be easy. It will require a significant burst of investment in the first couple of years buttressed with complimentary policies over the next five. Some will raise concerns about the costs, but if we learned anything from the last economic crisis, it’s that austerity is not a growth strategy, rather it leads to lost opportunities for people and businesses alike. Other countries have learned this lesson, and Canada’s industrial competitors will be investing boldly: South Korea is structuring its economic recovery plan as a “Green New Deal,” and the European Union is allocating 25% of its proposed €750 billion recovery package to green projects and strengthening connectivity networks.

We also recognize that building back better is an opportunity for all Canadians to work together. We need to engage broadly. This means forming meaningful partnerships with Indigenous communities in terms of equity ownership, employment, and procurement, and it also means breaking down systemic barriers that for too long have disproportionately held back women and people of colour.

Now is the time to be courageous and bold. We encourage governments to lead a collaborative and bold economic recovery building on the strengths of our existing economy and talent to capture the growth markets of the future.

As corporate leaders, we are committed to doing our part to build back better towards a more resilient — and inclusive — economy.

Sincerely,

Mike Andrade, CEO, Morgan Solar

Céline Bak, President, Analytica Advisors

Brian Bentz, CEO, Alectra Inc

Guy Bourbonnière, Vice President Trane Commercial HVAC – Eastern Canada, Trane Technologies

Christine Bergeron, Chief Member Services Officer, Vancouver City Savings Credit Union

Erica Brabon, Director, Energy & Sustainability, Black & McDonald

Kim Caron, President, Executive Mat Group

Jim Colthart, Chairman, C³ Global Technologies, Inc.  &  EnerSysNet Canada Inc.

Guthrie Cox, President, View Canada

Mike Crawley, CEO, Northland Power Inc

Darren Entwistle, CEO, Telus Corp

Jason Fitzsimmons, Chief Corporate Affairs and Customer Care Officer, Hydro One Ltd

Sabrina Geremia, Country Manager, Google Canada

Mike Gerbis, CEO, The Delphi Group

Michael Gonsalves, President, Carrier Enterprise

David Grinstead, CEO, Signify Canada

Anthony Haines, CEO, Toronto Hydro Corporation

Toby Heaps, CEO, Corporate Knights Inc.

Gord Hicks, CEO, BGIS

Matt Jamieson, CEO, Six Nations of the Grand River Development Corporation

Gord Johnston, CEO, Stantec Inc

Philippe Jetté, CEO, Cogeco Communications Inc

Faisal Kazi, CEO, Siemens Canada

Melissa Kennedy, EVP, Chief Legal Officer & Public Affairs, Sun Life Financial Inc

Laura Kilcrease, CEO, Alberta Innovates

Mark Little, CEO, Suncor Energy Inc

Marcelo Lu, President, BASF Canada

Karn Manhas, CEO, Terramera

Alex Lau, VP, Golden Properties Ltd

Don Lindsay, CEO, Teck Resources Ltd

Michael McCain, CEO, Maple Leaf Foods Inc

Carol McGlogan, CEO, Electro-Federation Canada

Dermot McMorrow, General Manager – HVAC Division, Mitsubishi Electric Sales Canada Inc.

Paul Mertes, CEO, Circuit Meter

Terri Lynn Morrison, Director of Strategic Partnerships, Indigenous Clean Energy

Thomas Mueller, CEO, Canada Green Building Council

Derek Nighbor, CEO, Forest Products Association of Canada

Nathalie Palladitcheff, CEO, Ivanhoé Cambridge

Josipa Petrunić, CEO, The Canadian Urban Transit Research & Innovation Consortium (CUTRIC)

Gregor Robertson, EVP, Nexii

Bill Strohecker, Country Managing Director, ABB Power Grids Canada

Sandra Stuart, CEO, HSBC Bank Canada

Ralph Torrie, President, Torrie Smith Associates

Susan Uthayakumar, CEO, Schneider Electric Canada

Nadeem Velani, EVP & CFO, Canadian Pacific Railway Ltd

Annette Verschuren, CEO, NRStor Inc.

Anthony Viel, Managing Partner and Chief Executive, Deloitte Canada

Tamara Vrooman, CEO, Vancouver City Savings Credit Union

Rob Wesseling, CEO, The Co-Operators

Dan Wicklum, CEO, The Transition Accelerator

Casey Witkowicz, CEO, RYCOM

Mary Ann Yule, CEO, HP Canada

Supportive quotes from business leaders

“The notion of ‘flattening the curve’ with coronavirus has taught us a valuable lesson when faced with a serious risk: act now or face dire consequences. It’s a similar warning with climate change, a seemingly slower moving problem when compared to COVID-19, but just as urgent for the present and future health of people and the planet.  This is why I believe investing in a bolder green initiatives is important.”

–Susan Uthayakumar, president, Schneider Electric Canada

We believe this crisis is an opportunity to reset our country’s assumptions, and to build a lower-carbon economy that also provides jobs and wealth for more people. That’s why Vancity is supporting Build Back Better. We believe a strong, prosperous economy requires strong local communities. As a member-owned, values-based financial institution, we’ve always put the needs of people and communities first. We believe that’s more important now than ever before.

–Christine Bergeron, incoming Interim CEO, VanCity

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