Lexpert magazine features articles and columns on developments in legal practice management, deals and lawsuits of interest in Canada, the law and business issues of interest to legal professionals and businesses that purchase legal services.
Issue link: https://digital.carswellmedia.com/i/854329
12 LEXPERT MAGAZINE | JULY/AUGUST 2017 | RECENT DEVELOPMENTS IN BUSINESS LAW | operations was not yet complete. Bringing CBCF staff on board has helped the com- bined organization expedite some of that integration work, such as building consis- tent HR policies across the country and in- tegrating disparate systems and technolo- gies. Operationally, the new organization is still very much in the beginning phases of its transformation. As with any large-scale change, this will take some time. Lawrie: When I first met Lynne in 2016, our interim CEO, Anne Vezina, our CFO, Andy Wnek, and I had already begun to plan a significant restructuring targeting annual savings of more than $20 million. Most of that was achieved before Lynne joined in late January. Similarly, we had already reduced head count to below 800 from nearly 1,000 before the amalgama- tion. Following amalgamation, we con- tinued the reductions but did so while implementing a regionalization model, removing more duplication both within CCS provincial structures and between CCS and CBCF. We also centralized many functions and closed duplicative offices. Costs and head count have continued to decline on an aggregate basis. LEXPERT: What was your experience of working on this? Généreux: It was a unique experience to merge two large cancer charities and there was no precedent of this scope to my knowl- edge in Canada. It was important to pro- ceed as fast as possible and, while the par- ticipation of staff was crucial, we tried not to distract them from their core activities. Volunteers want to ensure continuity in the programs they were involved in, which of- ten are close to their hearts. Chambers: is was not a typical merger deal for the lawyers. Merging two large charities is very different than merging for- profit companies. In some respects we were really cutting new ground — that made it more interesting and fun for the lawyers. ere is always some degree of tension in any deal, including this one, but the tone was always professional and respectful. LEXPERT: Culturally, the not-for-profit sec- tor is not always known for its nimbleness. But this deal represents a shi. Will we be seeing more announcements like this? Lawrie: We have had preliminary conver- sations with several other charities about various forms of amalgamation or col- laboration. e guiding principles have to be efficiency and assuring we will continue to serve the stakeholders of each. ose are demanding standards. But they are actu- ally quite simple and logical. e premise is that, with higher efficiency and lower costs, we will be able to deliver more services and fund more research. Généreux: Nimbleness is precisely what we were targeting in the reorganization and the amalgamation. From the exterior, al- ready I have seen decisions being made at a faster pace. To me, it is a blend of merg- ing and improving your organization con- stantly, listening to the community and stakeholders, and addressing their con- cerns appropriately and in a timely manner. Chambers: A merger alone won't solve fi- nancial difficulties. ere has to be a strong desire from within to reduce costs and to create a strong platform for leveraging op- portunities. CCS has a strong footprint in communities where CBCF has less of a presence. e merger created an opportuni- ty for CBCF to leverage that footprint. And it gave CCS the opportunity to leverage CBCF programs. By pooling their research dollars, they are better positioned to sup- port the most promising projects. A merger may not be the answer for everyone, but it wouldn't surprise me to see more consoli- dation in the charitable sector in the years to come. [Ed. note: e Colorectal Cancer Association of Canada and Colon Cancer Canada amalgamated in late June to form Colorectal Cancer Canada.] (For a summary and full list of legal advisors, visit Lexpert.ca.) ON THE TREND Canadian Charity at a Glance Canadians charities, by definition, aren't about business, but they certainly are about revenue, in the form of donations. In 2016, according to the Canada Revenue Agency, some 86,000 organizations pulled in $15.7 billion in donations. Interestingly, the vast majority of those gifts, about 80 per cent, were directed to Canadian recipients. GRAPHIC BY DAVID DIAS; SOURCE: CANADA REVENUE AGENCY