Entrepreneurship: Can You Handle It? NOSDA AGM 2015 April 16, 2015

Committed to safe and affordable housing that improves the quality of life for Ontarians. Who is HSC? Serving Ontario's 1,400+ social housing providers and 47 service managers: Manage buildings more effectively Improve the long-term sustainability of the physical assets Strategic business areas: Energy Services Insurance and Risk Management Asset Management and Renewal Information Technology Solutions Community and Business Partnerships

15-member stakeholder board Northern representatives on HSC Board: o Gary Scripnick (Chair) – Chair, NOSDA ; former City of Timmins Councillor o William Bradica – CAO, Thunder Bay DSSAB o Catherine Matheson – General Manager, Community Development, City of Greater Sudbury o Carol Conrad – CEO, Nipissing District Housing Corporation Strong Northern Representation

Today’s Social Housing Reality Aging infrastructure End of design life Huge, growing demand for new builds Billions needed for old and new Critical need that is not going away Government funding challenges

Sector Opportunities New enterprise: Development corporations, property management services Partnerships, alliances Leveraging assets: Redevelopment, land banks, market sales Northern Bond, Canadian Housing Bank Scale Up: Merge, acquire, capitalize on scale Run it like a business Foster innovation Entrepreneurship: Can YOU handle it?

Entrepreneurship = Risk Incremental: small improvements over time; e.g., process improvements, operational efficiencies Encourage creativity Rethinking rules Failure is okay Manage risk Fostering Entrepreneurship Disruptive : transformative, system change, new business models, new markets; e.g., Facebook, Amazon, AirBnB, Uber Less Risk More Risk

The UK Experience Orbit Group, UK 1980s: Thatcher upheaval 10k homes (1992) → 37k (2014) Cross subsidy model The Key: Commercial Revenue £177M annual turnover Capital markets By 2020: Build 12k new homes Profit for a purpose

Risk: The Dirty Word “ The biggest risk is not taking any risk... In a world that's changing really quickly, the only strategy that is guaranteed to fail is not taking risks." —Mark Zuckerberg, Founder, Facebook

The Path to Sector Entrepreneurship Risk taking Failure is ok Commercial enterprises Competition with private sector Profit for a purpose

Entrepreneurship: Can YOU handle it? What level of risk can you take? Does your culture allow for failure? Does your structure help or hinder? Is there a better way to foster entrepreneurship?

A Parting Thought “You never change things by fighting the existing reality. To change something, build a new model that makes the existing model obsolete” -- Buckminster Fuller, architect and inventor

Thank you © 2015 Housing Services Corporation Howie Wong CEO P: ext. 252 F: E: