Rod Bryden

Rick Norland has an anecdote he likes to tell to describe Rod Bryden's outlook on business, community and loyalty.

"Rod has a cottage in Cape Breton," begins Norland, a former colleague of Bryden's at SC Stormont and now partner at Ottawa-based Thorington Corp. "He will always buy groceries from this little corner store near the boat launch. He knows he's paying too much, but he continues to buy from that store. He is loyal to the store owner because he wants to ensure the convenience store will be there when he really needs it."

In a similar way, you could argue that Rod Bryden has been loyal to Ottawa over the years and, in return, the city has been good to him.

For more than a quarter century, the 59-year-old Bryden has left an indelible mark on Ottawa's business community. Beginning with his ownership of SHL Systemhouse in 1974, Bryden has played the part of ambitious leader of many high-profile enterprises, including World Heart Corp. and the Ottawa Senators. In between, the lifelong risk-taker has helped finance many companies through SC Stormont and owned or operated a number of high-tech ventures, such as Geovision VCI Controls, Xios and Computerland Canada.

Ironically, the Ottawa Business Journal's CEO of the Year came to Ottawa in 1969 to work for the public not private sector. Bryden's first job in the nation's capital was to help write government policy for the department of agriculture. Later, he became assistant deputy minister for the department of regional expansion, a job that included careful negotiations with the country's provincial governments. Little did he know that this experience would assist him a quarter century later as he fought for the financial viability of the Ottawa Senators.

'CREATURE OF HABIT'

Determined, driven and intelligent they are words often used to describe the New Brunswick native. For his part, Bryden credits his work ethic and determination to his grassroots upbringing.

"I'm probably a creature of habit," he says. "I grew up on a small farm in New Brunswick. The day was always spent on doing that which generated the income. You just get into the habit of thinking that's what the day is."

Just like his days on the farm, Bryden maintains that work ethic today. Aside from his duties with the Ottawa Senators, the Corel Centre, WorldHeart and SC Stormont, he also sits on the board of directors for Ecruiter.com, Gallium Software, Rebel.com and U.S.-based Luxury.com.

There is also a simple philosophy behind Bryden's approach to business that can be linked back to his rural roots. He sums up his business motto with one word: trust.

"Something that is a common thread in all the activities that I do is that I believe that trust of those who impact on your business is the basis of being able to succeed. If you don't have that, you may well do OK if everything goes fine. But there will be very little tolerance for mistakes."

This type of loyalty and trust in personal and business associates has allowed Bryden to cultivate long-lasting relationships. Those who know him best say he has a personal touch.

"Rod is a person of the people," says John Kelly, CEO of Rebel.com and a former business partner of Bryden's at SHL Systemhouse.

Still, working with a man with such high standards can keep people on their toes.

"He can be intimidating," says Norland. "He demands so much of himself and delivers so much himself. He demands excellence and puts a huge onus on delivering that. There is a clear hurdle as to what is good enough."

But Norland says those who are loyal to Bryden are rewarded in kind. That includes the city of Ottawa.

"When Rod believes in something, he will stand by that belief. One of those is that he wants this region to excel," says Norland.

"BEST INTERESTS AT HEART

In recent years, Bryden has arguably become one of Ottawa's biggest cheerleaders. From his involvement with The Ottawa Partnership (TOP) to his drive to keep NHL hockey in the nation's capital, Bryden has worked to make Ottawa a major North American business centre.

Bryden admits part of his devotion to Ottawa is because he's looking out for his best interests. After all, a strong Ottawa economy is good for both his Ottawa Senators and the Corel Centre. Still, there is a sense that he gets involved simply to give back to the city that has contributed to his success and to realize his vision of Ottawa as a world-class business centre. It was the latter goal that prompted him to become the co-chairman of TOP, a public-private sector partnership that is charged with guiding the city's economic development.

"The role in TOP wasn't analytically done in that I didn't sit down and calculate the percentage growth rate if I did or I didn't join. But it did seem to me that I couldn't be both betting on and cheering on dynamic growth in Ottawa and not do anything to try to achieve that."

Kirk Mandy, CEO of Mitel Corp. and a member of TOP, is happy Bryden accepted the challenge.

"The TOP initiative is a cross-section of government and private industry and the two bring to the table a diversity of views. Rod not only has a lot of connections, he brings a lot of credibility to the table," says Mandy.

During his 26 years in Ottawa's business community, Bryden has watched the city grow from a handful of high-tech firms (notably SHL Systemhouse and Mitel Corp.) to a critical mass of more than 1,000 technology-related companies. While this type of growth is impressive, Bryden says business leaders shouldn't pat themselves on the back just yet. The bulk of the work lies ahead.

"I think the biggest challenge for growth in Ottawa is that the business community maintains credibility with the public and with the elected members who represent the public," says Bryden. "They must continue to deliver growth and ensure that they will do that with sensitivity to environmental and quality issues."

Bryden likes to compare Ottawa's situation, albeit on a much larger scale, to the early days of the Quebec ski resort of Mont St. Anne.

"Somebody had to build a four-lane road to a hill in the middle of the woods on the basis that if you built a road there and a great ski resort, lots of people would come. We're not that far back. At the same time, our risk is that if the business community doesn't deliver results in both size, predictability and quality, the people won't believe it and the public representatives won't commit to build in advance of growth."

But is his message getting through to his business colleagues? Bryden worries that business leaders have resigned themselves to getting the short end of the stick when it comes to government funding.

"There is almost the resignation that Oh well, the services will always be inadequate, the political leadership will always act a little too slowly, but it won't be too bad.' The trouble is that the world is so competitive that if we are just not too bad' as a place to do business, we won't be good enough."

Bryden says the key to getting government support is by keeping the public informed.

"We have to recognize in business that, if we don't take the trouble to explain our case to the public, then they are not going to put the public capital into Ottawa anymore than the private sector will put in the investment capital in our business. We have to explain and constantly update on how we are progressing with our plan. That's what keeps the capital flowing through the stock market. I don't think the private sector has taken that very seriously, but I think they are starting to."

INSPIRED BY McCAIN BROTHERS

Although Bryden has become synonymous with Ottawa, he looks to New Brunswick for his long-time business influence. The McCain brothers, who established a name for themselves in the frozen food business, are an inspiration because of their success.

"They would certainly be an influence, in part, by example. It was, I'm sure to both of them, a huge disappointment that they had the personal dispute that divides them. But, for 29 years, they acted almost as one and built a very large business from a very modest beginning and in a tough segment of the industry."

In August 1999, Bryden solidified his relationship with Wallace McCain by privately transferring 93,137 common shares of WorldHeart to the 73-year-old chairman of McCain Foods Ltd.

Bryden has also developed strong relationships in this city, especially with Corel founder Michael Cowpland. Their business dealings began during Bryden's Systemhouse days and continue today. In fact, Cowpland was one of the original investors in WorldHeart.

Bryden says Cowpland and Newbridge founder Terry Matthews are his two biggest local influences, albeit from afar.

"They have been influences in the sense of seeing what they have been able to achieve and recognizing their ability to maintain the stability and strength of their organizations despite the fact that I'm sure that not everyday was a good day," says Bryden. "The fact that they have achieved that out of Ottawa and have been able to grow and establish national and international companies out of Ottawa encouraged me, as I expect it encouraged a lot of people."

BLACK MONDAY BRUISING

While Bryden is widely perceived as a successful businessman, he openly admits that some of his ventures ended in disappointment. Black Monday, for example, will forever be etched in his memory. On that day Oct. 19, 1987 the North American stock markets crashed. The result was a $115 million loss in one day.

Similarly, the sale of Kinburn Technologies, along with Bryden's ownership stake in SHL Systemhouse and Paperboard Industries Group, was another personal setback. He estimates the Kinburn sale eliminated another $100 million.

"It certainly was my own mistakes and financial structuring that brought about the need to sell Systemhouse and Paperboard," he recalls.

Bryden helped found SHL Systemhouse in 1974. Co-founders John Kelly (now CEO of Rebel.com) and Jack Davies provided funding and "sweat equity" and Bryden provided the other half of the financing.

Much of the funding from Bryden came from another endeavour called East Coast Investments. Bryden's partner was Patrick Foody, who later went on to found Ottawa-based Iogen Corp.

Over six years, SHL Systemhouse earned a reputation as one of the country's up-and-coming technology companies. In 1980, Bryden formed Kinburn Corp. Kinburn subsidiaries included technology-based companies Systemhouse, Geovision VCI Controls, Xios and Computerland Canada. Also in the mix was Paperboard Industries Group.

In 1988, the combined revenues for the Kinburn subsidiaries reached $1.4 billion. The company had nearly 9,000 employees in 230 locations across the globe.

By then, troubles at Systemhouse started affecting the entire Kinburn family. Kelly believes Systemhouse's struggles began shortly after it decided to go public in 1980.

"(Rod's) vision was good, but the pace of implementation was too aggressive," says Kelly.

While Systemhouse went about building products at a furious rate, demand sagged. As equity from its IPO ran out, Bryden kept the company afloat using money from Paperboard Industries.

Systemhouse lost close to $30 million in fiscal 1982, and was forced to write off $14 million dollars. Bryden, who was chairman, president and the largest shareholder of Systemhouse, searched for a large infusion of capital.

Cowpland came to the rescue with a cheque for $4 million, which he wrote after a late night visit from Bryden.

By the mid-1980s, Bryden left the day-to-day operations of Systemhouse, but he still held a stake in the company through his ownership of Kinburn.

Eventually, Kinburn collapsed because of Bryden's financial mistakes and defaulted on nearly $900 million in loans. Bryden was forced to sell Kinburn, his stake in Systemhouse and his beloved Paperboard Industries.

Has Bryden learned from his setback?

Kelly, who has known Bryden for 27 years, would answer that question with a "yes." Still, he sees Bryden as someone who takes big risks.

"(Systemhouse) has made him better at fulfilment. But if you are asking if he is now adverse to risk, I'd say no. Rod has learned some things, but it did not take away his passion for taking on meaningful challenges."

As for Bryden, he admits to reflecting on the Kinburn experience and wondering "what if?"

"I think my ability to do things in this marketplace would have been materially different if I had not made mistakes that caused those results. Certainly, the value that was built up and lost as a result of those financial transactions would have paid cash for the Corel Centre and funded the development of WorldHeart without the need for a public offering. So I think about that now and then, but not for long."

SHARE OF SUCCESS

Not all days have been like Black Monday. Bryden has certainly posted his share of successes. These include his ownership of the Ottawa Senators, the Corel Centre and WorldHeart. Bryden also helped launch SHL Systemhouse, which is now owned by Electronic Data Systems (EDS).

There are also the number of enterprises that he helped finance through SC Stormont, a company specializing in the management of complex corporate transactions.

It's interesting to note that one of his proudest achievements came through his involvement with a paper mill located just outside of Trenton.

In 1976, Trent Valley Paperboard Mills was in financial difficulty and its owner, Hugh Campbell, was looking for financing to not only keep the mill afloat, but to help build a new paper machine.

With funding from Bryden, the mill stayed open and became of division of Bryden-owned Paperboard Industries.

Though Bryden was forced to sell Paperboard in 1991, the mill remained alive and is now owned by Sonoco.

"I have no doubt that, if Hugh had not taken the initiative and I had not decided to help, there would not be 300-plus people working in a paper mill in Trenton. I don't know exactly what they would be doing. Either they would have left or would be working somewhere else," says Bryden.

Being a business icon comes with responsibilities and demands. One of them is being involved in charitable efforts. From the Ottawa Senators Foundation to the United Way, Bryden has offered his support to local causes.

"His vision of contributing to the community is not separated between business interests and charitable interests. It's all part of his vision of a healthy community with a high quality of life," says Michael Allen, president and executive director of the United Way of Ottawa-Carleton.

The United Way has been one of the biggest beneficiaries of Bryden's time.

Bryden notes that one of his greatest achievements in business was establishing Systemhouse, a company that set a high standard for social consciousness.

"In Ottawa, it has and still has 90 per cent participation in the United Way. (Systemhouse) was a company that succeeded commercially, but with a social conscience that was felt by everybody in the company," says Bryden.

For the past three years, Bryden has offered up the Corel Centre for the United Way's annual leadership skate with the Senators.

Bryden is also a member of the organization's leadership giving committee, a group that contributes more than $1,000 or more to the United Way. With Bryden's help, the committee has seen its contributions jump 35 per cent in each of the past two years. In fact, the United Way acknowledged Bryden's efforts last year by bestowing upon him its "Volunteer of the Year" award. This year, Bryden will help spearhead the United Way's major donors project for contributions of $10,000 or more.

Bryden says he is probably no different than many business leaders in the community.

"I believe a great many businesspeople take community service and charitable work very seriously, and put a lot of effort into it," says Bryden.

With so many commercial and community commitments, he admits that his time is sometimes stretched to the limit.

HELPFUL TO THE COMMUNITY

"I do believe that, on occasion, I allow myself to be more drawn into non-commercial activities than is good for my commercial activities. What I have to keep reminding myself and reminding others is that, if you are going to have influence or if you are going to share your influence or share your strength, you have to have influence and strength to share," says Bryden. "So the first thing you should really do every morning is be sure that you preserve the base of strength of which you can be helpful to the community."

There are times when his business day is dominated by non-commercial interests.

"I look at the end of the day, which may have started at six and ended at eleven, and ask how many hours of business have I got done? If the answer is not very many,' that will cause me to say I better stop that or I won't have any strength to share.' But charitable work is a very important part of life."

Bryden will turn 60 on March 13th of next year. He says his goals are to see the Senators flourish and WorldHeart's technology come to market. He smiles when mentioning his annual fall project the search for ownership partners in the Ottawa Senators Hockey Club.

"I would very much like to share the honour of owning this franchise," says Bryden in the midst of his annual sales pitch. "In fact, it's finally becoming a financial asset, which makes not sharing it less of a financial burden than it used to be. Being a part of it is more enticing than it used to be as well."

But Bryden's main goal for the foreseeable future will be WorldHeart.

The medical devices firm, which is developing a ventricular assist device for people with failing hearts, is expected to begin human clinical trials in mid-2001. Bryden would like to see the company become a commercial success.

"I'm very much focused on ensuring that WorldHeart really captures both its ability to contribute the medical benefits that it has the opportunity to do and captures a real dynamic leadership role in building a core of a life sciences industry in Ottawa," says Bryden. "I believe we have a chance to be for life sciences in Ottawa what Nortel was for the telecommunications industry."

Bryden will also continue to take risks even if the career risk-taker isn't sure it's always the right thing to do.

"I think it is more truth than fiction to say that I continue to do what I do because I never took the time to think about doing something else," says Bryden. "I'm virtually certain that, if I applied any of the academic training that I had in economics, I would conclude that it's not good marginal utility for me to keep investing dollars at risk. That's especially true when the risk is that I could lose (the dollars) and be much less comfortable in my old age.' If I made three times as much, I would be no more comfortable. I try not to analyze that too carefully because I know the conclusion that I would come to."

Whatever he does, Bryden is determined to succeed. Just ask his friends who praise his superior intellect.

"I think Rod is a brilliant financier and he can make things happen that virtually nobody else can in terms of financial structuring. The thing about Rod is that he is not intimidated by the big challenges. He takes them on, pulls them off and that's really admirable," says former Corel CEO Cowpland.

Denzil Doyle, another Ottawa business icon, says Bryden "is the clearest thinker that I have ever run into."

Kelly, Bryden's former SHL compatriot, says his old partner is "focused" and "very intelligent."

Bryden has heard all of the accolades before and he insists that his success in the past and future has less to do with intelligence than perseverance and trust.

"I think tenacity is probably my next most common characteristic in business after trust. I wish I could say genius' and I wish I could stay astuteness.' But the fact is I don't think that I'm a whole lot smarter than anybody else," says Bryden. "I have been fortunate enough, I think, to build a reasonable level of trust among those whose trust is important to my ability to succeed in business. I think it's a key part of why I am able to get my businesses to succeed."

( Note to Readers: This story was originally published in the OBJ in September 2000. )