MEMBERTOU FIRST NATION: Building the

MEMBERTOU FIRST NATION: Building the Band and Building the Brand
Keith G. Brown, Ph.D.
Vice President, Development
Associate Professor, School of Business
Cape Breton University
Email: [email protected]
Phone: (902) 563-1859
Fax: (902) 563-1861
Joanne Pyke, MBA
Assistant Professor, School of Business
Cape Breton University
Email: [email protected]
Phone: (902) 563-1203
Fax: (902) 563-1913
MEMBERTOU FIRST NATION: Building the Band and Building the Brand1
On July 18, 2006, the front page headline of the Cape Breton Post, in bold type,
announced, “Membertou, CEO part company” Bernd Christmas stated there were philosophical
differences on plans for further growth and development and that his resignation is effective
September 1, 2006. Chief Paul was emotional in his public thank you to Mr. Christmas and
thanked him effusively for his contribution to the community growth. Chief Paul recruited
Christmas to support his vision and new image for Membertou. He is now faced with new
concerns amidst Christmas’s departure. With his departure, the brand image portrayed and
personified by Membertou’s CEO may be lost or be difficult to replicate.
Background
Membertou First Nation has a population of approximately 1100 residents (See Exhibit
1). This reserve was developed in 1915 and was originally located along a main artery, Kings
Road in Sydney, Nova Scotia. Known then as the Kings Road Reserve, residents remained at this
location until 1926. Some citizens of Sydney did not want a Mi’kmaq community on the
periphery of Sydney and by an order from the Exchequer Court of Canada the settlers were
relocated to their current area. 2
Membertou First Nation is one of the few First Nation Communities within an urban
setting. Historically, the City of Sydney and Membertou have had a usually benign relationship.
Residents of Membertou lived in their community, went to high school in Sydney and few
worked in their home community. How times have changed. One of the largest sustained
commercial building booms in Sydney has been in Membertou, which is removed from the
downtown of Sydney and more than 500 of Membertou’s 1100 residents now work for
Membertou’s businesses and operations. There are the beginning signs of affluence taking root in
Membertou which may have some residents of Sydney looking with jealously towards the
development while others celebrate the success.
During the past decade or so, Membertou has undergone a dramatic change from a state
of economic despair to one of economic prosperity. The key players in the successful economic
development and branding of Membertou are Chief Terry Paul and CEO, Bernd Christmas. They
have taken Membertou from its former position of financial hardship to its current situation as
1
Acknowledgement, Nathan MacKinnon, Cape Breton University student researcher.
Scott, Jacquelyn Thayer. 2004. Doing Business With The Devil. Halifax, NS: Atlantic Institute for Market
Research.
2
one of the most economically sound First Nation communities in Canada. Over the past eleven
years, Membertou’s budget has grown exponentially from $4 million to $65 million today.
The Membertou “Model” has been highly publicized within the federal government, First
Nations Communities, business publications and through a broad range of media. Bernd
Christmas was a regular presenter or key note speaker nationally on the business conference
presentation circuit, and he and Chief Paul were and continue to be much sought after participants
in aboriginal economic policy review. Bernd Christmas, Terry Paul and the ‘Membertou
Miracle” were seen as synonymous.
Key Players
Bernd Christmas – Chief Executive Officer
Bernd Christmas has been CEO for more than a decade. Chief Terry Paul targeted
Christmas as someone who could make a difference at Membertou and convinced him to take on
this position in 1994-95. Chief Paul wanted him to be a spokesperson for Membertou and saw
Christmas as an asset to branding Membertou. The first Mi'kmaq to become a lawyer in Canada,
Bernd Christmas obtained his law degree in 1991 from York University in Toronto as a graduate
of the Osgoode Hall Law School. Christmas previously worked on Bay Street, Toronto with Lang
Michener where he implemented the firm’s aboriginal law practice group and specialized in
corporate/commercial and aboriginal law. Bernd Christmas, as a child of a military family who
moved often within Canada, did not reside or grow up in Membertou.
From his past experiences, Christmas was accustomed to negotiating deals with
government and business officials. Focusing on partnerships, joint ventures and exploring new
opportunities. Membertou Development Corporation under Mr. Christmas' leadership, fulfilled
many of its goal of creating wealth, prosperity and employment for the Membertou First Nation.
Chief Terry Paul
Chief Paul has been recently re-elected Membertou’s Chief for the 21st year. The message
that has been sent to Chief Paul from his community is clear- the redevelopment of Membertou is
working and the community is supportive of his direction. In his formative years, like many
young Mi’kmaq before him, he journeyed to the United States in search of work. He became
aware of some of the developmental work that Boston area universities were doing with First
Nation communities in the areas. This early introduction was to have a lasting effect on Chief
Paul’s views of his community and possible future development.
Chief Paul is a corporate strategist dealing with government and business officials. He
is the “face of the people” and key negotiator between Membertou, non-Aboriginal communities
and federal, provincial and municipal governments. His vision for Membertou of self sufficiency
has been at the core of the community’s journey towards economic prosperity.
Dan Christmas – Senior Advisor
Although Dan Christmas takes a less visible role in media relations, he is still a very
skilled negotiator and bridges the gap between middle-management and the Aboriginal
community. Christmas, born in Membertou, is the Senior Advisor for non-Aboriginal partners in
government and business. Christmas also represents the Band on the Mi’kmaq Treaty Rights
Committee, and serves on the Union of Nova Scotia Indians’ Technical Committee. 3
Chief and Band Council
Membertou’s Band is comprised of competent managers and residents of Membertou.
The Band’s activities rest in the hands of the Chief and Council operating like a Board of
Directors of a commercial organization (See Exhibit 2). There are divisional managers at
Membertou who have assumed a problem-solving role. Band members are encouraged to consult
these managers, using the Chief and Council as their last resort to resolve issues. The same Chief
and Council have occupied most of these roles at Membertou for over twenty years.
Membertou’s Tangible Brand Elements
Membertou Development Corporation
3
Scott, Jacquelyn Thayer. 2004. Doing Business With The Devil. Halifax, NS: Atlantic Institute for Market
Research.
Membertou Development Corporation is the new banner name under which all other
operations occur. Its name is the cornerstone of Membertou’s relationships with its customers.
Its name sets the attitude and tone for Membertou and connects the corporate name with
developing goods and services Membertou can provide.
ISO 9001 Compliant
Membertou has become the first aboriginal community in Canada to become ISO
9001:2000 compliant. This designation has opened many doors for this small community and
has allowed Membertou to explore business opportunities in various industries that otherwise
would not have been possible. This ISO standardization is recognized worldwide as the
benchmark of quality management systems. The decision to pursue and obtain the ISO 9001
rating was a clear attempt to speak the language of business. Membertou was clear with its
messaging; we are open for business, we are professional, we are accountable and our two worlds
are compatible.
Corporate Office Location
The establishment of Membertou’s Corporate Offices at Purdy’s Wharf Tower on the
Halifax waterfront was another important evolution of the development of a strong brand image
for Membertou. Located on the 17th floor in this prestigious office building, Membertou
announced to the corporate world that it is ready to do business and ready to meet executives in
the provincial capital.
Conversely, the CEO’s office in Membertou is located in an aging band administration
office which is in stark contrast to the plethora of new building within Membertou. These two
locations are perhaps a paradigm of the two Membertous. One is sleek, modern and professional,
while the other is somewhat dated and worn. The construction boom has clustered several
similarly designed buildings which would be at home in any prosperous Canadian city, adjacent
to aging homes and small retail outlets. One entrance to the community goes directly to the “new
area” while the other enters the older residential/commercial section. Recent media stories have
reported on Membertou’s strategy to develop a connector road, through Membertou, connecting
two of Sydney’s busiest arteries. There is the potential of bringing substantially increased traffic
through the community. The new Membertou is one of professional opportunity and material
purchasing power for those actively participating in the redevelopment, juxtaposed with social
issues common to other First Nation Communities for those not able or willing to become a
participant of “corporate Membertou”.
Infrastructure
The Membertou Trade and Convention Centre was the first major building constructed at
Membertou. This $4 million project opened its doors for business, July 2003. This building
houses Mescalaro’s Steak House and Grill, a banquet hall which seats over 400, several meeting
rooms, administrative offices and an Aboriginal gift shop – Petroglyps.
Other Departments/Divisions
Over the past number of years, the Band administration has developed thirteen
departments. Most of these divisions operate under direct governance by the Chief and Council.
The departments include human resources, health services, education and youth services, finance,
social services, public works, corporate (quality management and geomatics), fisheries, retail,
gaming, food services, tourism and conventions.
Corporate Partnerships
Membertou has been aggressive in pursuing partnerships, joint ventures and new
opportunities with government. Such relationships include: Lockheed Martin Canada, Sodexho
Canada, Clearwater Fine Foods, SNC Lavalin, Grant Thornton, Jacques Whitford, Techlink
Entertainment, and the Laurentian Group.
Direct ownership of Membertou Geomatics Consultants (MGC) provides GIS services,
with access to several other corporate partners of the Membertou Corporate Division in
technology and engineering fields. MGC has been involved with international land management
projects such as the Jamaica Cadastral Conversion project, and local projects such the Wentworth
Ski Hill and the community of Membertou. The MGC offers a range of services such as data
capture, analysis & manipulation, community planning, photogrammetry and 3D visualization.
MGC has now undertaken the development of a First Nation Community GIS. It is designed as a
decision making tool and an information platform for First Nation communities.
Membertou FM
On March 27, 2003, Membertou’s application to establish an FM Radio station
broadcasting to the Sydney market was approved. The station, broadcasting popular music, also
presents First Nation music, community information and effectively brings Membertou into the
broader Sydney community.
Promotional Material
Membertou’s logo and slogan appear on all of its promotional material. The eagle which
is symbolic of Aboriginal culture is depicted in the circle below. The slogan “Membertou,
Welcoming the World” signifies Membertou is open for business and ready and able to work with
government and corporate entities. Membertou’s consistent use of its logo identifies its brands
and conveys an overall corporate image. The name and slogan are easy to recognize and one that
evokes positive feelings about doing business with this small Aboriginal community. The image
Membertou portrays in its logo and slogan is one of originality and stresses a unique position –
we are Aboriginal and we welcome the business world!
Web site
The website was designed to provide information for both residents of Membertou, the
general public and potential corporate clients. The website provides links to Community Events,
Community News, Departments, Staff Directory, Photo Gallery, Financial Statements,
Employment, Guest Book and Community Forum. Information on the website is outdated with
the last financial statements from 2005 (www.membertou.ca).
The Membertou Trade and Convention has its own website to promote special events,
Mescalaro’s Restaurant and the on site gift shop- Petroglyphs (www.membertoutcc.com).
Brochures
High gloss print brochures advertise special events the Membertou Trade and Convention
Centre provides, such as wedding and Christmas party packages, rooms for meetings, banquet
halls for conventions, and a weekly “Lobster Ceilidh” where meals are prepared and enjoyed
amidst live musical entertainment. These brochures can be found at local businesses and on site
at the convention centre.
Travel Guide
Membertou has purchased ads in “Cape Breton Travel Guide”, a small high gloss
magazine highlighting special events and tourist attractions. On one page Membertou has three
small ads promoting Mescalero’s Restaurant, Petroglyphs (on site craft store) and the weekly
“Lobster Ceilidh”. A separate full page ad, highlights the restaurant, “Mescalero’s” – an open
grill and steak house. These travel guides are available from local businesses and tourist centres.
Annual Report
Membertou’s goal as outlined in its annual report, is to provide transparency,
collaboration, communication and excellence in its business dealings and governance. Provided
in this report are yearly audited financial statements and an overview of business divisions’ and
departments’ accomplishments to date. Included are opening messages from Chief Terrance Paul,
CEO Bernd Christmas and Senior Advisor Dan Christmas outlining Membertou’s achievements
and future plans. The annual report is available to interested parties upon request.
Local Newspaper
Periodically, Membertou’s advertisements appear in the local newspaper highlighting
special concerts and events taking place at the Membertou Trade and Convention Centre or at
Mescalaro’s Restaurant. These advertisements would reach approximately 35,000 Cape Breton
Post subscribers.
Local Radio Stations
Advertisements for special concerts and events, taking place at the convention centre, can
be heard weeks prior to the event on local radio stations. A local population of 120,000 could
possibly tune in to these radio advertisements.
Signage
Located on the Trans Canada highway, prior to the exit for Membertou, a large sign has
been erected, with logo and tag line. The sign, on a very busy Sydney highway increases
awareness and strengthens the brand image. However, there is no visible signage on the main
artery in Sydney, Alexandra Street, which leads to Membertou.
Membertou’s Intangible Brand Elements
Corporate Leaders
"Membertou has terrific leadership in three dynamic individuals. Chief Terrance Paul,
Dan Christmas, who is senior advisor to the chief and council of the band, and Bernd Christmas,"
said Owen Fitzgerald. As director of the YMCA Entrepreneur Centre of Cape Breton, Fitzgerald
partnered with the leadership of the Membertou First Nation in 2005 to fulfill a growing need for
entrepreneur training and small business development in the area.
Corporate Culture
Bernd Christmas believed in what Membertou was capable of accomplishing. "We -- the
Band -- believe there are four pillars to developing an indigenous economy," he says.
"Conservation, sustainability, innovation and success. These are our mottos. They combine the
old, traditional values of the Mi'kmaq people with the new: know-how, innovation, and thinking
outside the box."
Media Reports
Bernd Christmas has been a key participant as one of the faces of Membertou for
the media, always taking the “high road” to present a positive image of Membertou. Christmas
says he has been conscious to present alternatives and potential collaborations rather than
confrontation on issues of importance to Membertou. There has been a clear goal to brand
Membertou as a First Nation Community ready to solidify partnerships with government and
business.
Location of Company
The brand image portrayed is the ability to maintain positive relationships with residents
of Membertou and the corporate world. Corporate offices are upscale and located in the
province’s capital for business dealing, however with a local office and living quarters, Christmas
was able to maintain local visibility and conduct business dealings at Membertou, as well.
The Road Ahead
Chief Paul, in interviews following the resignation of Bernd Christmas, stated that perhaps
it was time to pause and give further thought to the next phase of Membertou’s growth and to do
so before a Chief Executive Officer is hired. He knows it will be a difficult task to replace former
CEO Bernd Christmas, who was instrumental in leading Membertou from an economically
depressed community with 90% unemployment to a corporation involved in lucrative business
dealings, now employing over half of Membertou’s working population. Chief Paul and his staff
have always walked a very fine line to project a professional image to corporations while
supporting their cultural integrity to Membertou residents. Paul knows this on-going concern
needs to be embraced by the new CEO, as Membertou forges ahead with other development
plans, business partnerships and the reinvestment of profits to meet community objectives.
Chief Paul cannot lose site of the original vision he had for his community and people. He
wants Membertou to continue growing and be economically sustainable. However, without a
CEO at the helm he is faced with a void in his leadership team. Who, if anyone, has the skill,
knowledge and background to replace Bernd Christmas and maintain the brand image built up
over the past ten years, while keeping the best interests of Membertou and its residents in the
forefront?
Membertou has established a Brand identity that has relied strongly upon Bernd
Christmas as its personification. Chief Paul is now tasked with forging ahead on economic
development issues while maintaining and building brand integrity.
Questions:
1.
2.
3.
4.
If you were Chief Paul, how would you balance his need to hire a new CEO who has
a strong economic development mandate with the need to have the brand
strengthened and protected?
Do you believe the development of Brand Membertou was established to support the
growth of the community or that the growth of the community established the brand?
As Brand Manager for Membertou, how would you strengthen the brand? What
would be some of your first actions?
Are there unique characteristics one must consider in the development of a First
Nation brand? Substantiate your answer.