Reasons for Success

The Cambridge Bay Co-op has one of the most viable operations of its type because of the volume of business it generates through the strong support of the community. It is a major presence in the community as an employer and promotes circulation of money in the community through its patronage funds. Bill Lyall has had a continuing positive influence on the operations of the Co-op. He promotes a friendly, family-type atmosphere with his employees and customers.
Bill comments on the success of the Co-op. "The Native lifestyle works very much around co-operation so that the community will survive. For example, we share meat amongst our extended family. The Co-op banks on the support of the community for it’s continued success."
Bill also notes, "Every part of this organization complements the other." The restaurant and bakery complement the hotel business. Customers staying at the hotel are encouraged to shop at the retail outlet. The retail store provides a needed service to the community, which is complemented by the arts and craft centre. The fishery provides a means of livelihood for individuals following a traditional lifestyle or who want seasonal employment, while also meeting a demand in the marketplace for arctic char. The cable system provides a service that meets a desire of local Co-op members.
It seems to be in the community's economic interests that the Co-op businesses succeed. Bill notes, "In the first five days of opening the fish plant, we made out cheques for over $11,000. With the other businesses, the Co-op contributes a lot to the local economy with a payroll of about $10,000 every two weeks. Patronage refund cheques are another example of money staying in the community and benefiting local members."
Bill tries to follow a philosophy of personal service.
"I know the people that shop with us personally and I always try to greet them or help someone out who might be short of cash one month. It's just temporary, so I think that kind of help goes a long way in a small community. I try to keep our staff happy and I encourage our staff to treat our customers well. We listen to everyone's suggestions on how to improve our service, but everybody has to work together to have a successful business. If I have a good manager, I try to keep at arm's length from their activities and only become involved if they ask for help. This policy does tend to keep good people here. By giving somebody full authority, they know you trust them and they try harder to make it work.

If someone is sick or wants extra time off, we try to have that flexibility in every part of the Co-op, as long as we have a little notice. My job is to make sure everything works right. I work a seven-day week because I always try to have a firsthand look at everything that is happening. I still enjoy my job and the best part is being around people. Nothing else really counts but people. Another big satisfaction is when everything is working like clockwork and everybody is pulling together.
The community benefits in other ways from the presence of the Co-op. It is very common for the Co-op to donate food or raffle items to local classes or community events. Bill notes, "We have never refused anybody yet." Another project sees the history and philosophy governing co-ops taught in the local schools from a curriculum developed by ACL.

Areas for Improvement

The areas for improvement are mainly human resources and administrative procedure. Bills sees a need for help at the senior management level and for a more educated labour pool. John also sees a need for strong management to fill several open positions and for streamlining operations and redefining responsibilities to increase productivity. These efforts would be enhanced by office computerization.
Bill is very busy running the local operation and meeting his ACL duties. He sees a need for one or two additional general managers to help oversee operations. As discussed in the previous section on staffing, a better workforce would benefit the Co-op's business ventures. Grade 6 is the highest education level held by current staff in the Co-op, except among management.
John identifies a need for strong management to move into two unfilled positions in the retail outlet. He explains, "Strong management is needed in order to maintain the retail operation's viability. There are confusion and wasted efforts among staff, which can be remedied by good management. We want to make operations easier so more responsibilities are shared and better productivity is achieved."
He continues, "All administrative work is done by hand. If somebody comes in for the value of their shares, it is very time-consuming to give them an answer. Computerized checkouts would remedy that situation and also help with inventory control. Pricing merchandise would be improved and we wouldn't have to go through countless files to do an invoice."

Environmental Friendliness

Bill feels that Native people have been raised to be aware of the environment and minimize any negative impact. He sees that more people are becoming aware of the need for better methods of garbage disposal and better filtration for sewage disposal in the community.

Bill states, "I think that we have been leaders in Cambridge Bay for bringing in biodegradable materials. We're always looking at new products, especially to replace plastic bags. I must say that disposable diapers are one of the worst pollutants in the Arctic. I see a lot of diapers out on the tundra when I go hunting." Another item of note is that by keeping the fishery going for the shortest period of time possible, the Co-op is minimizing any waste products, which might create pollution for the community.

Sustainability of the Business

After weathering the slump of the 1980s, Bill is cautiously optimistic about their chances of surviving another economic downturn. He states, "I've got to go through a slump to know if we could survive because people don't spend money. They always have to buy groceries though. We may not suffer as much, but we would suffer."

Future Development

Any plans for future expansion would be contingent on the impact of competition and the availability of skilled labour. Additional services in the short term, might include a pizza or fast-food outlet in the store or hotel. In the long term, a new retail outlet and hotel expansion are possible. Bill explains, "The building which houses our retail operations is ten years old now, and buildings don't last long with the type of weather that we have here. The board of directors are looking for a new piece of land to build a store and perhaps a daycare centre. We may expand the hotel, but we have to see the impact that the new hotels will have on our business first."
Bill has no firm plans for the future but he knows he will always support the Co-op, at least as a member. He plans to retire someday.
"I've been with the Co-op almost ten years. I took on a challenge that I think has come to an end because the business is successful. I would say get out while everything is working right and then if they get in trouble, they can call me in to help with it. I'm getting to that age when I have to look for something else rather than doing this all the time. I might start a tour operation and live off the land. I like fishing, hunting, and walking. I want to do something that interests me because there are a lot of parties and you could end up an alcoholic quickly. I really don't want that for myself.
I think we have people in place who have the ability to continue operations. However even when you cultivate people as successors, you never know what you going to get until they takeover. I've seen many problems, not only in the co-op system but in other Native organizations, where new people take advantage of their positions."


Summary and Conclusions

The Northwest Territories' experiment into co-operatives has proven to be successful over more than thirty years of operations. There were obstacles to overcome, and these eliminated some of the weaker co-ops, but in 1991 the co-operative movement is thriving in the territory. A major employer and recycler of capital in local communities, the forty-one co-operatives in the territory seem to be meeting their objective as a means of independence and self-determination for Native people.
Native people are the main source of labour for local co-operatives and the movement has been inspirational and a matter of pride for Northern people. Although co-ops must compete with the government in attracting skilled employees, they offer fellow community members the chance for employment in traditional and modern pursuits.
The Ikaluktutiak Co-op in Cambridge Bay is one of the movement's success stories. Under the leadership of Bill Lyall, it has become one of the largest co-operatives.

With a payroll over $456,000, this co-op provides employment for twenty-seven full-time staff and an additional forty or fifty people during the summer. By offering personal service and products at reasonable prices, the Co-op has built up community support over the years. Close to 50% of the local community are members of the Co-op and benefit from patronage refunds amounting $325,000 in 1990, a significant proportion of net profits. Nine local community members volunteer to assist in the management of the Co-op's businesses as board directors. Through the Board of Directors and the annual meeting, the quality of services is constantly under review and steps are taken to remedy any problems which may arise. Input is also sought from members about new products or services they would like to see added to the Co-op. Bill has been instrumental in promoting friendly, personal service to customers and supportive policies for employees. Good employees are well treated and given responsibility and flexibility for time off. Employees who require discipline are dealt with fairly but

will be asked to leave if the problems are not resolved within a reasonable period of time. Another policy worth noting is the Co-op's concern for environmentally friendly products and its leadership role taken in this regard. In a recession, the types of services offered at the retail outlet would remain necessities while the hotel might face a decline in a business. In any case, the lessons learned from the recession in the early 1980s will likely see the Co-op through any economic downturn.
The future looks bright for the Cambridge Bay Co-op. Expansion plans for products and services are being contemplated, including a fast-food outlet, a new retail store building, and an extension to the hotel. Bill's role may change in the future, although he will always support the Co-op as a member. He has been active at the local and territorial levels for a number of years and he may decide to move onto other projects. In any case, he feels confident that there are skilled people who would be able to take up the duties of president without any difficulty.