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Section II: Analysis of Program Activities by Strategic Outcome

Strategic Outcome #1 - Developed and diversified territorial economies that support prosperity for all Northerners.

Regarding the performance targets identified in the tables that follow for each Program Activity, during its first year of operation, CanNor developed a Performance Measurement Framework that includes indicators for measuring program performance.  With measures identified, CanNor is now able in its second year of operation, to establish baseline data and benchmarks for these measures.

 

Program Activity 1: Business Development

Program Activity Description

The Business Development program activity supports the growth and expansion of northern businesses, including small and medium enterprises, through training, advisory services, and grants and contributions.  The program activity’s objective is the encouragement of a competitive, diverse northern business sector with a strengthened capacity for innovation.

2010-11 Financial Resources ($ millions)

Planned Spending	Total Authorities	Actual Spending
6.2	6.2	1.6

2010-11 Human Resources (FTEs)

Planned	Actual	Difference
12	1	11

Expected Results	Performance Indicators	Targets	Performance Status
Increased number of northern and Aboriginal businesses	Percentage of northern and Aboriginal individual- or community-owned businesses supported by the Agency that are still operating after two years	Targets will be established based on benchmarks developed in 2011–2012	Not Yet Assessed
Strengthened northern innovation and technology capacity and increased knowledge base	Number of successfully completed studies and projects funded by CanNor Number of plans adopted involving: (a) expanded technology; or (b) expanded knowledge	Targets will be established based on benchmarks developed in 2011–2012	Not Yet Assessed
Northern and Aboriginal entrepreneurs have increased access to funding	Amount of disbursements to northern and Aboriginal businesses and community development organizations Amount of investment leveraged by CanNor	Targets will be established based on benchmarks developed in 2011–2012	Not Yet Assessed
Increased uptake of economic opportunities in existing, expanding and emerging sectors	Progress achieved: percentage of program expenditures against targets	Targets will be established based on benchmarks developed in 2011–2012	Not Yet Assessed

Performance Summary and Analysis of Program Activity

Through this program activity, CanNor supported the growth and expansion of Aboriginal and northern businesses, including small and medium-sized enterprises.  The objective of this program activity is to encourage a competitive and diverse northern business sector with a strengthened capacity for innovation.  Through the Aboriginal Business Development Program, the Agency provided grants and contributions to support training and advisory services.  CanNor’s flagship program under this program activity is the Strategic Investments in Northern Economic Development (SINED). This program contributes funding, as well as other forms of support to the development of proposals that aim to strengthen economic drivers, diversify the economy, increase the participation of northerners in the economy and improve the coordination of federal programs. The program works with the territorial governments, Aboriginal organizations and the not-for-profit sector to promote economic development in the North.

CanNor implemented this program activity through the following sub-activities:

• Innovation and Knowledge;
• Entrepreneurship; and
• Sectoral Development.

To achieve the expected results for this program activity, the Agency undertook the following activities:

• Funding under SINED doubled in 2010–2011 from 2009–2010 levels of $8,157,000, with an extra $10 million for each of the remaining years of the program. In the reporting year, 89% of SINED funds were spent.  Investments under SINED are guided by territorial investment plans that received ministerial approval in August 2009. These plans are specific to the needs of each territory and target key economic development sectors such as geoscience, tourism, cultural industries, economic infrastructure, mining, oil and gas development, forestry, renewable energy, small and medium-sized enterprises, commercial and traditional harvesting, and capacity development.
• During 2010-2011, CanNor provided funding for business development opportunities for women and for small businesses as well as for youth entrepreneurship.  However, the Agency has not yet fully explored these areas in terms of economic development opportunities.

Lessons Learned

With the creation of CanNor and the adoption of Aboriginal economic development programming for the North, staff with experience in the delivery of both Aboriginal and northern economic development programs were transferred from AANDC to the new Agency.  The transfer of experienced staff proved to be invaluable and enabled a relatively seamless transition in terms of the program delivery in the North.

While programs were delivered successfully and northern stakeholders were not negatively impacted as a result of the transition from AANDC to CanNor, it became evident that there was an increasing need for clearer articulation of responsibilities from policy and business process development perspectives.  Efforts were initiated to align AANDC’s and CanNor’s respective policy activities related to economic development, particularly from an Aboriginal perspective.  Regarding business process development, a Memorandum of Understanding (MOU) between AANDC and CanNor was in place during 2010-2011 which provided critical support to CanNor. Another MOU is being developed for 2011-2012 that will better reflect internal operating functions and responsibilities for each organization.

 

Program Activity 2: Community Development

Program Activity Description

The Community Development program activity supports community-level investments in infrastructure and organizations, and individual-level investments in skills and capacity development.  The program activity’s objective is the establishment of economically sustainable northern communities with a high quality of life for residents.

2010-11 Financial Resources ($ millions)

Planned Spending	Total Authorities	Actual Spending
47.5	55.1	46.5

2010-11 Human Resources (FTEs)

Planned	Actual	Difference
27	15	12

Expected Results	Performance Indicators	Targets	Performance Status
Increased sustainability and well-being of northern communities	Four components of the Community Well-Being Index: income, education, housing, labour force participation	Targets will be established based on benchmarks developed in 2011–2012	Not Yet Assessed
Increased economic development benefits and opportunities for Aboriginal communities	Number of Canadian economic opportunities projects producing concrete economic employment benefit to date	Targets will be established based on benchmarks developed in 2011–2012	Not Yet Assessed
Improved employment conditions within communities with accompanying quality of life benefits	Number of communities with functioning professional, administrative, and institutional economic development capacity	Targets will be established based on benchmarks developed in 2011–2012	Not Yet Assessed
Northern communities benefit from improved infrastructure	Number of new and improved infrastructure elements successfully completed	Targets will be established based on benchmarks developed in 2011–2012	Not Yet Assessed

Performance Summary and Analysis of Program Activity

Through this program activity, CanNor supported:

• proposals from First Nation, Métis and Inuit entrepreneurs in the North, as well as from northern communities, Aboriginal businesses and financial organizations;
• community-level investments in infrastructure and organizations; and
• individual-level investments in skills and capacity development.

The program activity’s objective is the establishment of economically sustainable northern communities with a higher quality of life for residents. It supports economic development and diversification initiatives that help communities sustain their economies and adjust to changing economic circumstances.

As part of this program activity, CanNor supported the delivery of Human Resources and Skills Development Canada (HRSDC) skills training programs in the North. This included partnerships and projects under HRSDC administered funds, such as the Aboriginal Skills and Training Strategic Investment Fund and the Aboriginal Skills and Employment Partnerships program. Initiatives also included research and analysis of skills-related gaps and opportunities.

CanNor implemented this program activity through the following sub-activities:

• Aboriginal Economic Development;
• Community Adjustment;
• Capacity and Skills Development; and
• Infrastructure.

To achieve the expected results for this program activity, CanNor undertook the following activities:

• CanNor continued to work with the territories to identify eligible projects for funding and negotiate the related contribution agreements.
• CanNor worked to maximize benefits to communities under the Community Adjustment Fund (CAF) (program ended March 31, 2011).  The Firesmart program is an example of the funding provided under CAF.  The Firesmart program helps to prevent high-intensity wildland fires from destroying valuable forest resources and threatening the safety of people and infrastructure by modifying and removing volatile forest fuels around communities. Activities include brush and tree pruning, thinning, spacing, mulching, and complete removal of forest vegetation.
• CanNor worked closely with Aboriginal governments and organizations to understand and respond to the economic development needs of these groups in accordance with the new Federal Framework for Aboriginal Economic Development.
• CanNor implemented in the North, Canada’s strategy for official languages, the Roadmap for Canada’s Linguistic Duality 2008–2013: Acting for the Future. The Economic Development Initiative, funded by the Roadmap, and delivered by CanNor in the North, provided support for official language minority communities in the territories.
• For all existing and new economic development programs, CanNor sought to fully integrate a capacity and skills development component. This includes ensuring that there is awareness and understanding of economic development opportunities; knowledge of the resource cycle; and confidence to participate in the development of small to large projects.  It also includes fostering knowledge and skills to enable communities to undertake and realize their economic development goals and become promoters, participants, partners, and proponents in economic development projects

• CanNor continued its collaboration with Infrastructure Canada and the other regional development agencies to improve the delivery of national infrastructure programs.

Lessons Learned

New business management processes have been developed to help ensure consistency of program delivery across all Northern regions.  Increased standardization of operational processes and tools across all regions has helped to better meet the needs of proponents and ensure that all potential projects are given equal consideration in the approval process.

At this early stage of business processes development and reporting, intentions to complete development of items such as audit/evaluation plans may have been premature. A growing focus on operational reporting requirements is underway and will focus on integrating planning and reporting in ongoing improvements in operational effectiveness.

 

Program Activity 3: Policy, Advocacy and Coordination

Program Activity Description

The Policy, Advocacy and Coordination program activity supports research and analysis to guide programming and policy choices, the promotion of northern interests both inside and outside of the federal government, and the development of horizontal strategies, initiatives and projects to address economic development challenges in the North.

2010-11 Financial Resources ($ millions)

Planned Spending	Total Authorities	Actual Spending
5.5	5.6	3.8

2010-11 Human Resources (FTEs)

Planned	Actual	Difference
28	21	7

Expected Results	Performance Indicators	Targets	Performance Status
Increased consideration of northern business and community development interests in federal economic policies, programs and regulations	Number of meetings and forums jointly planned and executed in the North	Targets will be established based on benchmarks developed in 2011–2012	Not Yet Assessed
Development of partnerships and coordination of partners in addressing northern economic priorities	Number of partnerships focused on responding to shared northern economic priorities	Targets will be established based on benchmarks developed in 2011–2012	Not Yet Assessed
Better access to federal government economic development opportunities for northern communities, individuals and businesses	Number of successful referrals to other federal programs	Targets will be established based on benchmarks developed in 2011–2012	Not Yet Assessed
Major Northern projects managed through a coordinated whole-of-government approach	Number of projects coordinated by the Northern Projects Management Office	Targets will be established based on benchmarks developed in 2011–2012	Not Yet Assessed

Performance Summary and Analysis of Program Activity

Through this program activity, CanNor supported: research and analysis to provide evidence-based programming and policy choices, the promotion of northern interests both inside and outside the federal government, the development of horizontal strategies, initiatives and projects to address economic development opportunities and challenges in the North, the coordination of federal responsibilities throughout the regulatory cycle of resource development projects, and close collaboration with key players to advance northern economic development.

This program activity ensures that the Agency has the information and understanding needed to provide a balanced, regionally sensitive approach that addresses northern priorities, maximizes the Canada’s effectiveness in advancing economic development in the North, and supports the development and implementation of CanNor strategic directions and priorities.

To achieve the expected results for this program activity, the Agency undertook the following activities:

• The Northern Projects Management Office (NPMO), with its main office in Yellowknife, has been established as a core activity within CanNor. Launched in  May 2010 the NPMO developed tools to coordinate the work of all federal departments and agencies involved in natural resource development projects in the three territories and in the northern offshore, engaged with industry and industry associations on northern regulatory and development issues, integrated governance into existing structures of the Major Projects Management Office, and commenced project management on some of the major resource development projects in the territories. In addition, the NPMO continues to work with counterparts in AANDC to develop a process for coordinating Crown consultation on major projects. The NPMO employed a phased approach to start-up and became operational in the first half of the fiscal year, providing basic co‑ordination services. In the longer-term, the NPMO will have a role in identifying systemic issues in regulatory processes for consideration and resolution through regulatory improvement initiatives or other processes.
• The NPMO played a policy and coordination role for major resource and infrastructure development projects in the North by taking part in the Major Projects Deputy Ministers’ Committee. The NPMO, together with federal partners and Natural Resources Canada’s Major Projects Management Office, is identifying short- and long-term actions to improve the effectiveness of the regulatory system and building a coordinated approach to Aboriginal Crown consultations.
• In its coordination sub-activities, the NPMO has engaged industry, regulators and the northern boards, and tracked the progress of northern projects. In the future, the NPMO will hold the official Crown record of Aboriginal consultation.
• CanNor continues to work on developing and implementing its engagement strategy and marketing and outreach strategy to ensure ongoing stakeholder engagement. In engaging with Northerners, CanNor will further tailor its activities and programs to the unique needs of the North and the differing circumstances in each territory.
• The Agency worked on developing its strategic policy function, which includes: policy research and analysis in support of policy advice and new initiatives; conducting economic research and analysis and monitoring economic issues on an ongoing basis; advocating northern interests within the federal government; and developing the capacity to facilitate and enable the alignment of key federal government economic development activities in the North. While progress has been made in all of these areas, further work is needed in terms of capacity building in order for CanNor to fulfill its leadership role in this area.
• CanNor played the role of convenor by coordinating efforts with partners.  The Agency, in partnership with HRSDC, AANDC and the Privy Council Office (PCO), is a member of the steering committee for the Conference Board of Canada’s Center for the North. Until a lead role has been determined, members of the steering committee are working as equal partners. The Center conducts research and analysis of northern issues, which in turn is used by members to help inform on policy and decision making. The steering committee sets the research agenda for each year.  Also, in 2010-2011, CanNor and HRSDC took steps to enhance collaboration between federal economic development and labour market activities in the North by signing a Memorandum of Understanding (MOU) for the period 2010-2014, setting out ways to work together to strengthen cooperation on northern economic and skills development and ensure that existing and future programs are coordinated effectively.  In addition, CanNor worked with the National Economic Development Committee for Inuit Nunagat (NEDCIN) which is a collaborative committee created by an MOU between Inuit Land Claims Organizations and institutions and the federal government (CanNor and AANDC).  NEDCIN serves as a consultative body to CanNor on Aboriginal economic development policy and programs management.  The committee’s objective is to develop practical approaches to address Inuit-specific needs within federal policy and program arrangements.  .
• CanNor created an annual forum to bring together the senior leadership of the three Regional Federal Councils in the territories to discuss strategic issues and priorities common to the three territories and to foster collaborative working relationships. A key issue addressed in 2010–2011 was the capacity building challenges faced by organizations operating in the North.

Lessons Learned

Lessons were learned with respect to the Regional Federal Councils.  These Councils are collaborative networks of senior federal officials in the regions, whose goals are the ongoing improvement of regional issues management, integrated federal service to the public, and public sector management. The Regional Federal Councils play an important role as an executive forum and in integrated and improved service delivery, two-way communication with headquarters on regional perspectives and federal initiatives, and co-operation with other jurisdictions. At the time of CanNor’s establishment, the responsibility for housing the secretariat for the Federal Councils in the territories was shifted from AANDC to CanNor.  In 2010, CanNor met with the three councils to explore areas where the Agency could assist in furthering the work of Northern Federal Councils by identifying individual territorial initiatives.  While the Federal Councils identified individual initiatives unique to each territory, it was recognized that there is merit in taking a cohesive approach on pan-territorial initiatives as well.  One such pan-territorial project identified focuses on statistics that demonstrate the evolution and the current face of the North.

 

Program Activity 4: Internal Services

Program Activity Description

Internal Services are groups of related activities and resources that are administered to support the needs of programs and other corporate obligations of an organization. These groups are: Management and Oversight Services; Communications Services; Legal Services; Human Resources Management Services; Financial Management Services; Information Management Services; Information Technology Services; Real Property Services; Materiel Services; Acquisition Services; and Travel and Other Administrative Services. Internal Services include only those activities and resources that apply across an organization and not to those provided specifically to a program.

2010-11 Financial Resources ($ millions)

Planned Spending	Total Authorities	Actual Spending
1.8	2.3	12.4

2010-11 Human Resources (FTEs)

Planned	Actual	Difference
38	38	0

Expected Results	Performance Indicators	Targets	Performance Status
Public programs, as well as other internal services, operate more efficiently and effectively	Percentage of results meeting or exceeding targets for Governance and Support Management; Resource Management Services; and Asset Management Services	Targets will be established based on benchmarks developed in 2011–2012	Not Yet Assessed

Performance Summary and Analysis of Program Activity

For governance and support management, CanNor continued to develop and implement an effective corporate services model. With its resource management services, in an effort to strive for strong employee capacity and continuity, in 2010-2011 the Agency explored creative recruitment strategies. As an organization still getting off the ground, CanNor needed to ensure that it implemented the human resources cycle and integrated it with business plans.  The Agency also worked toward implementing core financial controls and verifying that financial processes were effective. Assistance was provided by the office of the Comptroller General in this process.  The Agency implemented a resource management cycle that supports decision making.  And, to ensure effective asset management services, CanNor implemented the asset management cycle and ensured that it also supported decision making.  CanNor received media coverage on nearly 300 separate occasions in 2010-2011, primarily as a result of communications activities including an average of more than six news releases per month and thirteen ministerial events during the year.  The Agency also made great strides with respect to accommodations.  Regional offices were established in all three of the territorial capitals and construction has begun on the Agency’s headquarters building in Iqaluit.

Lessons Learned

Significant risks and challenges were anticipated and identified, at the outset of the Agency’s creation, in terms of establishing, not only regional offices in each territory, but the headquarters in Iqaluit. An important lesson learned has been that the effort to establish a new federal entity is challenging in and of itself, but a new federal entity with its headquarters situated in the North presented even further challenges. Specifically, there were challenges associated with establishing and maintaining a sufficient and representative workforce with the appropriate skills to fill positions in the North.  There were logistical challenges related to the establishment of initial temporary offices, and then challenges associated with the construction of new office buildings.  These difficulties included getting construction material to the North, finding skilled labourers for the construction, and the short building season in the North. 

The effort and work required to establish the Agency and to get it up and running was somewhat underestimated. While steps were taken to help mitigate these risks and challenges by entering into a Memorandum of Understanding (MOU) with AANDC in order to obtain support as the Agency’s systems, processes, offices, and staff complement were being developed, the level of work and the difficulties that the Agency encountered were nonetheless substantial. While CanNor works towards organizational maturity, the Agency has renewed the MOU with AANDC to continue the valuable support that is being provided.  CanNor has also developed relationships with the other regional development agencies in an effort to benefit from their lessons learned. 

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