Description
The Requisite Turnaround Michel David, Morton Grostern, Michel Lozeau February 21, 2014
INSERT PRESENTATION TITLE
MONTRÉAL: CITY-STATE
Canada's and Québec's Entrepreneurial Hub
Montréal: City-State Foundation
PO Box 26557, RPO Queen Mary
Montréal QC Canada H3X 4B1
[email protected]
www.montrealcitystate.ca
The Requisite Turnaround
Michel David, Morton Grostern, Michel Lozeau
February 21, 2014
The Requisite Turnaround © 2014 All rights reserved V.1 02-21-2014 2
Table of Contents
1
Why Montréal Needs to Be Reinvented
A. Montréal is a World Class City
B. But Suffers a Major Performance Gap
C. Radical Change is Required to Turn Around this Situation
3
2
Proposed Vision/Direction
A. Le Modèle Montréalais
B. What is a City-State?
6
3
Le Modèle Montréalais
A. Creating an Entrepreneurial Hub
B. Liberty: Bureaucracy is Killing Us
C. Cosmopolitan Culture
D. World Class Policies and Practices
9
4 This is a Big Change 15
5 Proposed Path 17
The Requisite Turnaround © 2014 All rights reserved V.1 02-21-2014
3
1. Why Montréal Needs to Be Reinvented
A. Montréal is a World Class City
• Montréal has more than enough world class assets to match any
comparable success stories (Manchester, Melbourne, Boston,
Philadelphia):
? Quality of life
? Bilingualism, multiculturalism
? Universities, world class centers of excellence
such as the Canadian Center for Architecture
? Aeronautical, pharmaceutical industries
? Intellectual property, creativity.
• In terms of reputation, Montréal is 18
th
out of 100 top cities in the world
(Toronto #2, Vancouver #14)
(1)
.
(1) Reputation Institute, 2013
The Requisite Turnaround © 2014 All rights reserved V.1 02-21-2014
4
1. Why Montréal Needs to Be Reinvented
B. But Suffers a Major Performance Gap
• Among North America's 25 largest cities, Montréal is the poorest
(PIB per capita).
• Montréal and/or Québec typically rank in the bottom half or the bottom
quartile of most published performance measures, ex. liberty,
entrepreneurship.
• If Montréal were to be equal to its comparable cities, it would have
to increase its current performance by 50% or more (Toronto, Calgary,
Vancouver).
The Requisite Turnaround © 2014 All rights reserved V.1 02-21-2014
5
1. Why Montréal Needs to Be Reinvented
C. Radical Change is Required to Turn Around this Situation
• The same system will produce the same
result.
• Incremental change means improving
from the current foundations.
Sometimes this is quite appropriate ?
"more or better of the same".
But eventually, the old game is over. ?
No amount of effort will yield significant
improvement.
• Radical change means starting from
new foundations. ? A new, "second"
curve.
This requires innovation, reinvention.
?
?
?
?
First curve/Second curve
The Requisite Turnaround © 2014 All rights reserved V.1 02-21-2014
6
• How could Montréal move away from its current baseline of decline
and create a new, "second curve"?
• First, by eliminating current value destroyers: Québec rules,
bureaucracy, unpredictability.
• Second, by pursuing a limited number of initiatives that will lead
to doubling our current performance:
? An entrepreneurial driven economy.
? Liberty ranking in the first quartile of North American jurisdictions.
? Leveraging our bilingualism and multiculturalism.
? Designing and implementing world class policies and processes.
• These four initiatives would make up the Modèle Montréalais.
2. Proposed Vision/Direction
A. Le Modèle Montréalais
The Requisite Turnaround © 2014 All rights reserved V.1 02-21-2014
7
• The third leg of the proposed vision is to acquire the structure which
permit Montréal to achieve its full potential: it needs a special status.
• There are many ways to define a special status for a city.
• We are using "City-State/Cité-État" to define the special conditions that
should be put in place in Montréal to suit its own strategy, its unique
culture and economy.
• There are other names that could be used such as special economic
zone or Charter City.
• Whatever the name, what is involved is a devolution of the powers that
are required to create an environment that supports Montréal's
economic and cultural goals.
2. Proposed Vision/Direction
B. What is a City-State? (1 of 2)
The Requisite Turnaround © 2014 All rights reserved V.1 02-21-2014
8
• In our project, Montréal is a vibrant part of Québec, it is not a separate
entity such as the City-States of Monaco, the Vatican and Singapore.
• However, stability of the arrangements going forward, must be
guaranteed, at the same level that would be in place if Montréal
was a new Canadian province.
2. Proposed Vision/Direction
B. What is a City-State? (2 of 2)
The Requisite Turnaround © 2014 All rights reserved V.1 02-21-2014
9
3. Le Modèle Montréalais
A. Create an Entrepreneurial Hub (1 of 2)
• Montréal's problem is economic, the "second curve" needs to be economic.
• Why entrepreneurship?
? Montréal has lost head offices and manufacturing.
? The remaining option is bootstrap i.e. entrepreneurship.
? This is open to all comers.
? It creates most jobs.
• The sweet spot for Montréal's entrepreneurial hub:
? Build on one of our key strengths: creative industries.
? Make this a prime mover for the entrepreneurial hub.
• Provides Montréal with a different positioning from other major Canadian
cities, unique:
? Toronto: Financial center
? Calgary: Energy
? Vancouver: Pacific Rim commerce
The Requisite Turnaround © 2014 All rights reserved V.1 02-21-2014
10
3. Le Modèle Montréalais
A. Create an Entrepreneurial Hub (2 of 2)
• Silicon Valley is the great success story in the creation
of an entrepreneurial hub.
• Many cities throughout the world are trying the emulate the success
of Silicon Valley… with varying degrees of success.
• Montréal is not one of them:
? Entrepreneurship is not a priority.
? Montréal recently was ranked 71
st
out of 103 Canadian cities for support
to entrepreneurs.
• A recent CROP survey (sponsored by Cogeco) shows that 50% of
francophone Québécois think the private sector is bad for the overall
quality of society.
A Long Way to Go
The Requisite Turnaround © 2014 All rights reserved V.1 02-21-2014
11
3. Le Modèle Montréalais
B. Liberty: Bureaucracy is Killing Us
• The direct relationship between liberty and prosperity has been fully
demonstrated (see Frazer Institute).
• Québec ranks 56
th
out of 60 North American jurisdictions for liberty,
or actually, non liberty.
• Table 1 next page presents some key components to create
an entrepreneurial hub.
• Montréal can or could meet most of them.
• Except one: bureaucracy.
The Requisite Turnaround © 2014 All rights reserved V.1 02-21-2014
Table 1 – Some Components of the Proposed Entrepreneurial Hub
12
Universities
World-class institutions of higher education that champion
research and foster commercial collaborations and spin-offs.
Funding
Availability of equity and debt, ranging from angels to venture
capital to private equity to stock markets to bank lenders.
The most important type of finance is patient capital – new
companies often take years to break through.
Immigration
Open borders for able students, executives and
entrepreneurs with particular abilities. Diversity boosts
innovation and job creation.
Lack of Corruption
A public and private sector where bribery and fraud are
relatively rare and readily punished.
Work Ethic
A culture that encourages the industrious and ambitious,
celebrates success and is not resentful towards wealth
creation.
Taxation
A bearable level of state extractions that encourages effort
and does not enviously punish those who take risks and work
hard. A tax code that is uncomplicated, predictable and
applied fairly.
Talent
Brainpower and technical expertise among the workforce.
Bright recruits should be willing to join start-ups, rather than
the security of working for the state or big corporations.
Role Models
Plenty of sound examples of self-made, high-achieving
entrepreneurs.
Infrastructure
Good quality transport systems, advanced mobile and
broadband communications, and a decent stock of office,
factory and warehouse facilities.
Restricted Bureaucracy
A manageable level of red tape that does not discourage
initiative or sap the energy of small companies, be it health
and safety or property planning.
The Requisite Turnaround © 2014 All rights reserved V.1 02-21-2014
13
3. Le Modèle Montréalais
C. Cosmopolitan Culture
• The global economy is far more rewarding than the local economy:
increasing diversity creates increasing wealth.
• A cosmopolitan culture is the key to penetrate the global economy.
• Montréal can play at this very well with its bilingualism of more than
80 ethnic groups.
• The Modèle Québécois goes in the other direction, it is local. This
makes it difficult, if not impossible for Montréal to be a global player.
The Requisite Turnaround © 2014 All rights reserved V.1 02-21-2014
14
• Most cities, including Montréal,
operate under policies and
procedures that were designed
a long time ago.
• Creating a city-state provides a once
in a life time opportunity to reinvent
these operating systems.
• Thus creating a truly world class
"smart" city.
• State-of-the-art processes will give
Montréal major attraction factors.
Some Areas
Ripe for Reinvention
3. Le Modèle Montréalais
D. World Class Policies and Practices
• Entrepreneurship
• Finance
• Governance
• Health
• Primary, secondary education
• Universities
• Labor markets
• Welfare
• Public security
• Community
The Requisite Turnaround © 2014 All rights reserved V.1 02-21-2014
15
4. This a Big Change
Levers Barriers
• These proposals are
supported by the vast
majority of Montrealers
(see Table 2).
• Montrealer's positive
attitude need to be
transformed into organized,
positive action.
• The Québécois must get
to understand that the
Montréalais project is
a win/win for all.
The Requisite Turnaround © 2014 All rights reserved V.1 02-21-2014
Having world class universities 98%
Having the best performing education system in Canada 96%
Streamlining and improving Montréal city's governance 95%
Having the best support for entrepreneurs in Canada 94%
Having the best performing health & welfare system in Canada 93%
Promoting Montréal's multicultural aspects 89%
Montréal should have more autonomy to make its own decisions in the future 81%
Making a clear and long-term commitment to the Canadian federation 80%
Guaranteeing full bilingual status 75%
Lowering business taxes to be the lowest in Canada by 1% 70%
Eliminating restrictive language measures 69%
Source: IPSOS Survey, July 2013
Table 2 –
Creating an Environment Where Entrepreneurs Can Prosper
16
The Requisite Turnaround © 2014 All rights reserved V.1 02-21-2014
5. Proposed Path (1 of 2)
17
• For this project to work, both Montréal and the Québec
government must see a positive outcome: it must be a win/win
outcome.
• The premier of Québec and the National Assembly have all the
powers required to make this happen.
• So, ideally, a strong Québec premier and a strong Montréal
mayor working together can make this happen.
• Let's remember that when asked, 74% of Montrealers are
in favour of Montréal having a special status.
• But the idea is latent, it needs to become a burning fire. Each
citizen must play an active role. This is what will make the
politicians move.
The Requisite Turnaround © 2014 All rights reserved V.1 02-21-2014
5. Proposed Path (2 of 2)
18
• Under this proposal, Montréal would have its own fiscal taxation
and social policy powers. This is an essential part of the Modèle
Montréalais. Toronto and its charter are a good model here.
• This is expected to create new prosperity. This will be shared
fairly between Montréal and the Province.
• This is a partnership to optimize the use of one of Québec's
most important asset: Montréal.
Deployment © 2013 Michel David All rights reserved V.2 11-27-2013 19
"There is nothing more difficult to take
in hand, more perilous to conduct, or
more uncertain in its success, than to
take the lead in the introduction of a
new order of things."
15th Century Statesman
The Requisite Turnaround © 2014 All rights reserved V.1 02-21-2014 Presentation – Concordia © 2014 Michel David All rights reserved V.1 02-06-2014
WILL
20
The future is open
It is only a question of…
doc_808782913.pdf
The Requisite Turnaround Michel David, Morton Grostern, Michel Lozeau February 21, 2014
INSERT PRESENTATION TITLE
MONTRÉAL: CITY-STATE
Canada's and Québec's Entrepreneurial Hub
Montréal: City-State Foundation
PO Box 26557, RPO Queen Mary
Montréal QC Canada H3X 4B1
[email protected]
www.montrealcitystate.ca
The Requisite Turnaround
Michel David, Morton Grostern, Michel Lozeau
February 21, 2014
The Requisite Turnaround © 2014 All rights reserved V.1 02-21-2014 2
Table of Contents
1
Why Montréal Needs to Be Reinvented
A. Montréal is a World Class City
B. But Suffers a Major Performance Gap
C. Radical Change is Required to Turn Around this Situation
3
2
Proposed Vision/Direction
A. Le Modèle Montréalais
B. What is a City-State?
6
3
Le Modèle Montréalais
A. Creating an Entrepreneurial Hub
B. Liberty: Bureaucracy is Killing Us
C. Cosmopolitan Culture
D. World Class Policies and Practices
9
4 This is a Big Change 15
5 Proposed Path 17
The Requisite Turnaround © 2014 All rights reserved V.1 02-21-2014
3
1. Why Montréal Needs to Be Reinvented
A. Montréal is a World Class City
• Montréal has more than enough world class assets to match any
comparable success stories (Manchester, Melbourne, Boston,
Philadelphia):
? Quality of life
? Bilingualism, multiculturalism
? Universities, world class centers of excellence
such as the Canadian Center for Architecture
? Aeronautical, pharmaceutical industries
? Intellectual property, creativity.
• In terms of reputation, Montréal is 18
th
out of 100 top cities in the world
(Toronto #2, Vancouver #14)
(1)
.
(1) Reputation Institute, 2013
The Requisite Turnaround © 2014 All rights reserved V.1 02-21-2014
4
1. Why Montréal Needs to Be Reinvented
B. But Suffers a Major Performance Gap
• Among North America's 25 largest cities, Montréal is the poorest
(PIB per capita).
• Montréal and/or Québec typically rank in the bottom half or the bottom
quartile of most published performance measures, ex. liberty,
entrepreneurship.
• If Montréal were to be equal to its comparable cities, it would have
to increase its current performance by 50% or more (Toronto, Calgary,
Vancouver).
The Requisite Turnaround © 2014 All rights reserved V.1 02-21-2014
5
1. Why Montréal Needs to Be Reinvented
C. Radical Change is Required to Turn Around this Situation
• The same system will produce the same
result.
• Incremental change means improving
from the current foundations.
Sometimes this is quite appropriate ?
"more or better of the same".
But eventually, the old game is over. ?
No amount of effort will yield significant
improvement.
• Radical change means starting from
new foundations. ? A new, "second"
curve.
This requires innovation, reinvention.
?
?
?
?
First curve/Second curve
The Requisite Turnaround © 2014 All rights reserved V.1 02-21-2014
6
• How could Montréal move away from its current baseline of decline
and create a new, "second curve"?
• First, by eliminating current value destroyers: Québec rules,
bureaucracy, unpredictability.
• Second, by pursuing a limited number of initiatives that will lead
to doubling our current performance:
? An entrepreneurial driven economy.
? Liberty ranking in the first quartile of North American jurisdictions.
? Leveraging our bilingualism and multiculturalism.
? Designing and implementing world class policies and processes.
• These four initiatives would make up the Modèle Montréalais.
2. Proposed Vision/Direction
A. Le Modèle Montréalais
The Requisite Turnaround © 2014 All rights reserved V.1 02-21-2014
7
• The third leg of the proposed vision is to acquire the structure which
permit Montréal to achieve its full potential: it needs a special status.
• There are many ways to define a special status for a city.
• We are using "City-State/Cité-État" to define the special conditions that
should be put in place in Montréal to suit its own strategy, its unique
culture and economy.
• There are other names that could be used such as special economic
zone or Charter City.
• Whatever the name, what is involved is a devolution of the powers that
are required to create an environment that supports Montréal's
economic and cultural goals.
2. Proposed Vision/Direction
B. What is a City-State? (1 of 2)
The Requisite Turnaround © 2014 All rights reserved V.1 02-21-2014
8
• In our project, Montréal is a vibrant part of Québec, it is not a separate
entity such as the City-States of Monaco, the Vatican and Singapore.
• However, stability of the arrangements going forward, must be
guaranteed, at the same level that would be in place if Montréal
was a new Canadian province.
2. Proposed Vision/Direction
B. What is a City-State? (2 of 2)
The Requisite Turnaround © 2014 All rights reserved V.1 02-21-2014
9
3. Le Modèle Montréalais
A. Create an Entrepreneurial Hub (1 of 2)
• Montréal's problem is economic, the "second curve" needs to be economic.
• Why entrepreneurship?
? Montréal has lost head offices and manufacturing.
? The remaining option is bootstrap i.e. entrepreneurship.
? This is open to all comers.
? It creates most jobs.
• The sweet spot for Montréal's entrepreneurial hub:
? Build on one of our key strengths: creative industries.
? Make this a prime mover for the entrepreneurial hub.
• Provides Montréal with a different positioning from other major Canadian
cities, unique:
? Toronto: Financial center
? Calgary: Energy
? Vancouver: Pacific Rim commerce
The Requisite Turnaround © 2014 All rights reserved V.1 02-21-2014
10
3. Le Modèle Montréalais
A. Create an Entrepreneurial Hub (2 of 2)
• Silicon Valley is the great success story in the creation
of an entrepreneurial hub.
• Many cities throughout the world are trying the emulate the success
of Silicon Valley… with varying degrees of success.
• Montréal is not one of them:
? Entrepreneurship is not a priority.
? Montréal recently was ranked 71
st
out of 103 Canadian cities for support
to entrepreneurs.
• A recent CROP survey (sponsored by Cogeco) shows that 50% of
francophone Québécois think the private sector is bad for the overall
quality of society.
A Long Way to Go
The Requisite Turnaround © 2014 All rights reserved V.1 02-21-2014
11
3. Le Modèle Montréalais
B. Liberty: Bureaucracy is Killing Us
• The direct relationship between liberty and prosperity has been fully
demonstrated (see Frazer Institute).
• Québec ranks 56
th
out of 60 North American jurisdictions for liberty,
or actually, non liberty.
• Table 1 next page presents some key components to create
an entrepreneurial hub.
• Montréal can or could meet most of them.
• Except one: bureaucracy.
The Requisite Turnaround © 2014 All rights reserved V.1 02-21-2014
Table 1 – Some Components of the Proposed Entrepreneurial Hub
12
Universities
World-class institutions of higher education that champion
research and foster commercial collaborations and spin-offs.
Funding
Availability of equity and debt, ranging from angels to venture
capital to private equity to stock markets to bank lenders.
The most important type of finance is patient capital – new
companies often take years to break through.
Immigration
Open borders for able students, executives and
entrepreneurs with particular abilities. Diversity boosts
innovation and job creation.
Lack of Corruption
A public and private sector where bribery and fraud are
relatively rare and readily punished.
Work Ethic
A culture that encourages the industrious and ambitious,
celebrates success and is not resentful towards wealth
creation.
Taxation
A bearable level of state extractions that encourages effort
and does not enviously punish those who take risks and work
hard. A tax code that is uncomplicated, predictable and
applied fairly.
Talent
Brainpower and technical expertise among the workforce.
Bright recruits should be willing to join start-ups, rather than
the security of working for the state or big corporations.
Role Models
Plenty of sound examples of self-made, high-achieving
entrepreneurs.
Infrastructure
Good quality transport systems, advanced mobile and
broadband communications, and a decent stock of office,
factory and warehouse facilities.
Restricted Bureaucracy
A manageable level of red tape that does not discourage
initiative or sap the energy of small companies, be it health
and safety or property planning.
The Requisite Turnaround © 2014 All rights reserved V.1 02-21-2014
13
3. Le Modèle Montréalais
C. Cosmopolitan Culture
• The global economy is far more rewarding than the local economy:
increasing diversity creates increasing wealth.
• A cosmopolitan culture is the key to penetrate the global economy.
• Montréal can play at this very well with its bilingualism of more than
80 ethnic groups.
• The Modèle Québécois goes in the other direction, it is local. This
makes it difficult, if not impossible for Montréal to be a global player.
The Requisite Turnaround © 2014 All rights reserved V.1 02-21-2014
14
• Most cities, including Montréal,
operate under policies and
procedures that were designed
a long time ago.
• Creating a city-state provides a once
in a life time opportunity to reinvent
these operating systems.
• Thus creating a truly world class
"smart" city.
• State-of-the-art processes will give
Montréal major attraction factors.
Some Areas
Ripe for Reinvention
3. Le Modèle Montréalais
D. World Class Policies and Practices
• Entrepreneurship
• Finance
• Governance
• Health
• Primary, secondary education
• Universities
• Labor markets
• Welfare
• Public security
• Community
The Requisite Turnaround © 2014 All rights reserved V.1 02-21-2014
15
4. This a Big Change
Levers Barriers
• These proposals are
supported by the vast
majority of Montrealers
(see Table 2).
• Montrealer's positive
attitude need to be
transformed into organized,
positive action.
• The Québécois must get
to understand that the
Montréalais project is
a win/win for all.
The Requisite Turnaround © 2014 All rights reserved V.1 02-21-2014
Having world class universities 98%
Having the best performing education system in Canada 96%
Streamlining and improving Montréal city's governance 95%
Having the best support for entrepreneurs in Canada 94%
Having the best performing health & welfare system in Canada 93%
Promoting Montréal's multicultural aspects 89%
Montréal should have more autonomy to make its own decisions in the future 81%
Making a clear and long-term commitment to the Canadian federation 80%
Guaranteeing full bilingual status 75%
Lowering business taxes to be the lowest in Canada by 1% 70%
Eliminating restrictive language measures 69%
Source: IPSOS Survey, July 2013
Table 2 –
Creating an Environment Where Entrepreneurs Can Prosper
16
The Requisite Turnaround © 2014 All rights reserved V.1 02-21-2014
5. Proposed Path (1 of 2)
17
• For this project to work, both Montréal and the Québec
government must see a positive outcome: it must be a win/win
outcome.
• The premier of Québec and the National Assembly have all the
powers required to make this happen.
• So, ideally, a strong Québec premier and a strong Montréal
mayor working together can make this happen.
• Let's remember that when asked, 74% of Montrealers are
in favour of Montréal having a special status.
• But the idea is latent, it needs to become a burning fire. Each
citizen must play an active role. This is what will make the
politicians move.
The Requisite Turnaround © 2014 All rights reserved V.1 02-21-2014
5. Proposed Path (2 of 2)
18
• Under this proposal, Montréal would have its own fiscal taxation
and social policy powers. This is an essential part of the Modèle
Montréalais. Toronto and its charter are a good model here.
• This is expected to create new prosperity. This will be shared
fairly between Montréal and the Province.
• This is a partnership to optimize the use of one of Québec's
most important asset: Montréal.
Deployment © 2013 Michel David All rights reserved V.2 11-27-2013 19
"There is nothing more difficult to take
in hand, more perilous to conduct, or
more uncertain in its success, than to
take the lead in the introduction of a
new order of things."
15th Century Statesman
The Requisite Turnaround © 2014 All rights reserved V.1 02-21-2014 Presentation – Concordia © 2014 Michel David All rights reserved V.1 02-06-2014
WILL
20
The future is open
It is only a question of…
doc_808782913.pdf