Since I started this series, I have received multiple emails of support from entrepreneurs – several of whom are “clients” of MaRS – and innovation practitioners. Here are some extracts:

I appreciate your courage to post your views (which I share) on the MaRS topic”  (from a university research commercialization specialist and entrepreneur)

“Being a client of MaRS, I share your sentiments, but wouldn’t do so in public (for the same reasons you mention)” (from a Toronto entrepreneur)

“I forwarded your site to some of my friends at MaRS. I’m finding it quite revealing to say the least!” (from a MaRS tenant)

“I saw your post on MaRS. I had heard the numbers, but had not had the link to them. Thank you.” (from an angel group member)

“MaRS is like the planet. It’s cold and distant. Apart from some educational sessions, it doesn’t do much for actual start-ups, yet it wants to control our galaxy. They should call it the Death Star.” (a Toronto entrepreneur)

“Can’t disagree with anything you are saying” (a long-time MaRS client)

“The story sounds interesting, and clearly quite relevant.” (from a national paper business columnist)

“They’re all so pompous and useless at MaRS, as if they’re running a NASA lab (…) If they had given that money to real entrepreneurs instead, they would have created more jobs and wealth” (from a Toronto entrepreneur)

“MaRS lacks any sort of accountability. Their impact is unknown because they don’t publish any relevant metric” (executive at another innovation hub)

In case you wonder, I received only one negative comment (see the update to my first post – showing that according to MaRS’s own statistics, each advisor works a total of 5 days per year to help entrepreneurs). In a way, it is disappointing. And no news from MaRS, which I imagine is making sure not to give this any publicity.

Note I am looking to inform relevant people in the political sphere about this issue, and I would welcome any suggestion as to whom might be appropriate. You can email me at gregboutin -AT- gmail.com.

On whistleblowing

A recurring theme in most of the emails of support communications is fear. There are many, many people agreeing that something is wrong with the MaRS approach, but most of them admit fearing the consequences on their reputation and revenue if they were to publicly express their thoughts.

There is something very wrong with our system if one can’t put forward valid concerns without feeling threatened. Being a whistleblower is rarely a career-enhancing move – but I’d argue that, when confronted to such a waste of dollars, raising concerns and asking questions is an ethical requirement. How can one go home and look at their kids in the eyes otherwise?

In the past few years I have done that a few times, so I am used to the label. Plus, I was born in France, which doesn’t help given the reputation. I guess I should have been a journalist, but I don’t write that well and I prefer to be actively involved in companies.

In 2003, while working shortly as an intern for a financial analysis firm in Richmond Hill, I discovered that Shell was misreporting their oil reserves. Told that to my boss, who chose to ignore it. Bad move: 6 months later, we had this.

Last year, I pointed out that the web app Twine lost 80-90% of its traffic after being flagged by Google. A number of us had mentioned the usability problems of the application, meeting a hostile response from the founder. After wasting $25M, Twine’s CEO was recently let go and the company’s resources “merged” with another company in the same investor’s portfolio. The investors could have saved a few millions, or even the whole venture, simply by listening to the concerns.

Hey, I’ve been wrong sometimes too (my recent RRSP investments in cleantech prove I can’t predict the future!), but the point is: raising relevant questions shouldn’t be punished, it should be rewarded. See financial crisis.

Wasted lives

There is a direct connection between wasted money and wasted lives. Between poor policies, indecent executive compensation, and poverty.  I have a picture I can’t take out of my head: when I was living in Manila, I saw a woman sleeping on a bridge, a baby in her arms, above the busiest highway in the city. I could contrast that with the opulence of the diplomats I worked with (for the record, I was making just a little over $1,300 per month as a trainee.)

Anyone getting a salary they don’t deserve is responsible for supporting the wrong system, a system that put that woman and her baby on that bridge. They will look the other way, make donations to feel better and find excuses for themselves, on how $470K per year is justified given this and that, how others make more, how the system requires them to make that much – but the only valid question is: all things considered, am I destroying value and human lives by taking more than my fair share?

In the case of MaRS, is the CEO’s obscene salary forcing some entrepreneurs to take a full-time job while starting their company? I know a number of such entrepreneurs in Toronto. Two of them just had babies. So cut MaRS CEO’s salary and give them the money instead – I assure you they will create more value.

Now, I am not suggesting we cap salaries or downsize all well-paying jobs. I am suggesting that there should be clear performance management and accountability, especially for large public-sector rewards whose value to the public constituency they are supposed to serve can be fuzzy.

And if we ever want to live in a true meritocracy, raising questions and protecting the whistleblowers is a must, not an option.

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Tags: commercialization, entrepreneurship, executive compensation, ontario, public policy