Throw a challenge at Annette Verschuren. Any challenge. And you can be sure of one thing.

The tough lady from Cape Breton will take it on with clenched teeth and fire in her eyes, just as she has done throughout her life.

To Verschuren, the inspirational and outspoken president of Home Depot Canada, fighting adversity and meeting challenges head-on are a way of life.

During a childhood in Cape Breton, she fought serious health problems. As a business student at university, she fought a professor's stereotyping of women. In taking charge of a fledgling Home Depot Canada operation nine years ago, she battled to establish the home improvement retailer's foothold on Canadian turf that has since shown explosive growth in going from 19 to 120 stores.

Ken Kerr, Business Edge
President Annette Verschuren sees herself as merely a cog in the wheel of Home Depot. What sets the company apart, she says, is its gifted staff.

Now, there's word of a challenge from a giant U.S. home improvement retailer horning in on the turf in which Home Depot Canada holds the dominant position (Rona is the other major player).

Lowe's, meet Annette Verschuren.

1. What did you dream about during a childhood milking cows on your parents' farm in Cape Breton?

"To find a way not to milk cows anymore (laughing). It was cold those mornings milking cows, but putting my face against the udder of the cow was sometimes the warmest part of the day. It was great experience for me because I had to work hard as a kid. Now, one of the things I'm not afraid of is work - and I think that comes from my childhood upbringing. I always dream big. I remember telling my mother when I was seven years old that I was going to be a president. I didn't know what a president was. But I always had aspirations of being in a leadership position, even at that young age."

2. How do you think the serious health problems of your youth might have contributed to your character and life's perspective?

"I think it had a great impact. I had four operations on my kidneys between the ages of 15 and 21. What that did for me is help me appreciate life extraordinarily. I wake up every morning with the most positive attitude because I'm so happy to be alive. I was very sick and spent as much as six months in the hospital. That gave me time to focus. I was nurtured by a wonderful family that really supported me. When I have a bad day, I think about being in the recovery room and waking up after an operation, and it helps me put things in perspective. When you talk about people falling to the bottom of the barrel, I'll tell you, at that point in my life, I was at the bottom of my barrel. It's good to have that foundation on which to grow, and it has given me a lot of strength. The kidneys have regenerated almost completely and I'm in great condition now. I just have to take a mild blood-pressure pill. I was on antibiotics until I was 43, but I've been off them for five years now."

3. What were your career aspirations?

"I started in university (at St. Francis Xavier) in an arts program because my counsellors all said I should be a teacher or a nurse. I started talking to a friend who was taking a business course and I started to explore the idea of taking business. Mid-term, I decided to switch into business and I never told my parents. I immediately just fell in love with the business courses and did really well. So, that was really the first big risk I took and it really impacted my life. My life is full of risks."

4. What was your response when that university professor told you that you weren't cut out for business?

"I didn't listen. He told me I should go into secretarial arts because that was a more appropriate place for women to go. I was so motivated after that. I was determined to prove him wrong, which I did. He is passed on now, but he did see my success in my career."

5. In establishing yourself in business, what obstacles did you encounter because of your gender?

"There were a lot of obstacles, but I didn't realize that would happen until I left home. My parents were Dutch people with very liberal views about their children and I never felt I was ever treated any differently than my brothers. But then when I got into the business world, it was very different. (In one job), it was a shocker. But with my positive attitude, I wasn't going to let people suck me into the negatives and I have never let that happen. I feel sorry for people that need to discriminate and treat people differently. They're the ones who are going to lose at the end of the day. I used that as a tool to motivate me, influence change and be positive. I never let people get me down. I'm an aggressive lady who wants to get things and I'm an achiever. And that doesn't always fit well with everybody. I've had many bosses in my career, and I can happily say that every one of them would give me a positive response. I work through issues, I can find ways in which to collaborate, I can find common ground and move forward. I think that's because of my experience farming, my experience in coal mining and my experience in the tobacco industry with Imasco. I've been in some very tough male'-dominated businesses and I've survived."

6. Do you sometimes wonder why there are so few women running large companies in Canada?

"Yes. Look, part of it has to do with the choices that women need to make. Women are extremely good at it, but you have to give up a lot. It's a big commitment for men, too. There haven't been enough women in the pipeline. People need to take much greater risks with women and push them forward more quickly. In the Canadian operation of Home Depot, we've made great strides in getting women into merchandising positions where there haven't been many women and other positions that have been totally male-dominated. They've doing extraordinarily well. The mix of men and women is really important for me. Diversity makes the performance of your operations much richer. Whether it's diversity of female/male, whether it's diversity of age or whether it's diversity of colour of skin, etc., it's extraordinarily important to create an inclusive environment so everybody can contribute. And because we (women) have been the nurturers of our children more than our male counterparts, we can create that environment in the business setting. It's unfortunate, though, that there aren't enough women running major companies today. Women are going into small business in droves but many of them have decided they don't want the corporate life, and part of the reason they don't want it is that they feel they haven't been treated fairly."

7. Who's the business leader you most admire?

"I think more in terms of companies. Shell Canada is a great company that is doing good work in the environment. I'm very impressed with (CEO) Clive Mather. He's a progressive leader. He really understands what he needs to do for his company and he has a great sense of customer (understanding).

"I also think there are great leaders outside of business, like Frank McKenna (Canada's ambassador to the U.S.). I admire people who have courage and really challenge change and do things differently. Loblaw (the grocery retailer) is a great company in terms of the retail business and the leadership of Richard Currie (former president of Loblaw) is second to none. Leadership that has a balance including social responsibilities is extremely important today. There has to be much more transparency in leadership and much more progressive action in terms of working together with governments to help our communities go forward."

8. What do you remember about the Home Depot Canada that you joined as president in 1996?

"In 1996, it was scary, to be perfectly honest. No. 1, I was the first woman to ever be hired (by Home Depot) in an operating position. I was also the first outsider to be hired. I didn't know the business, so I had to learn as I took on the position. It was quite frightening. It was very entrepreneurial, in some ways positive and in some ways negative. It was cowboy days. The (parent company) was so successful, but the Canadian operation was really struggling and they (parent company) were very frustrated with the Canadian operation. It was the worst operating division in the company then and I'm extraordinarily proud to say that today the Canadian operation is one of the strongest-performing divisions in the enterprise and has been for the last three years."

9. So what was wrong with the operation when you joined it?

"I think the associates, the people that worked for us, didn't believe in the company. There were a lot of disgruntled employees, a lot of people that were very unhappy. And there were some systems and practices that didn't make sense. So it was a challenge at the time. It was a learning experience and I had the advantage of helping them get through that. What I did was spend a lot of time in the stores talking to the associates and learning the business. Then, I very quickly got the right team in place. That was key. The talent that I surround myself with is my success. It's not me. I happen to create an environment where people can make decisions, and where team'-work and collaboration is encouraged. The year I started we were supposed to open five stores, but we didn't open them because the company was afraid to move forward. What we really had to do was improve the profitability. In the second year I was here, the improvement was phenomenal. We just got people involved in turning this thing around and getting them to take ownership of the company. It's been quite a ride. It's been a top-line growth of enormous amounts, about an average of 25 per cent annually, and the bottom line has been great. We have technology, we have stores, we have bricks and mortar and we merchandize, but so does everybody else.

At the end of the day, it's all about people. Our job is to get people to lead, get them to become part of the decision-making process, get them to drive change and create the right environment for the customer."

10. What style of management has contributed to that turnaround and growth?

"I'm very aggressive, I really challenge my team. They have a lot more in them than they think they do and my style is to celebrate the great successes and deal with negatives privately. I have enormous respect for the people with whom I surround myself and I think my style is one that is nurturing, encourages people and gets them to perform at very high levels."

11. Have you had to change your management style much over the years?

"I think I've grown enormously. Leaders today that don't grow while staying in the same position don't make it, in my opinion. I've relied more on my team to run my business. I was a bit of a Pied Piper when I started, but now I've got a whole team of Pied Pipers. And you learn very quickly that it doesn't matter whether you know the answer to the question and it doesn't matter whether you think you know the business. What really matters is that the people that you surround yourself with and they surround themselves with know the answers. So the biggest thing I've learned is that I'm but one cog in the wheel and my job is to delegate, hold people responsible, give them ownership, give them clarity of vision and clear strategies, and hold them accountable. And all that can be done in a positive way."

12. How do you feel about the plans by Lowe's to invade the Canadian market?

"We respect all of our competitors, including Lowe's, but operating organically in Canada's major markets like Toronto is going to be a very difficult task. Our Canadian operation has been serving the unique needs of Canadians for almost 11 years and that is a key strategic advantage for us. Lowe's is going to have a difficult challenge in this country as we have a number of sharp retailers in this extremely competitive marketplace."

13. What's your strategy in growing the business?

"It's critically important to enhance the businesses that we have and there's also lots of room to grow in our country. What we're doing now is opening a number of 80,000-sq.-ft stores and a few 60,000-sq.-ft. stores as well. We need to adjust to our communities. One size does not fit all. So it's important to produce concepts and distribution centres that fit the various regions and demographics of our country. We're also expanding the supply side of the business. For instance, we've just made an acquisition of Litemor out of Montreal, a commercial lighting company. That part of the business is very fragmented and we see enormous opportunities there and we're looking for more acquisitions."

14. Are you seeing any signs of the strong home renovation market subsiding?

"No. It's strong. People are still investing strongly in their homes. And there may be a shift with new housing starts diminishing somewhat. But the home renovation market is extraordinarily strong and that's the key to our business. We really focus on the renovation market."

15. What happens when the renovation-happy Baby Boomers are too old to renovate?

"We provide them with expert installations. We have a great installation business within our business. We install roofs, we install gutters, we install floors and we install kitchens.

"There are many Baby Boomers that don't want to do it anymore, so that has become an enormously growing market with about a 40-per-cent increase year over year. In our business, you have to take advantage of the trends of the customer. You have to know and understand them."

16. A lot of retailers are notorious for lousy working conditions.

How is it different at Home Depot Canada?

"Well, we're a happy bunch. We have fun because, No. 1, we pay better and we have better benefits. We are not so structured. We're a bit entrepreneurial, so people can be more creative in our stores in terms of leadership. Our leaders are good leaders and they motivate our people as opposed to diminishing them. Our success has a lot to do with the culture that has been created in our company and the culture that has made Home Depot great. Our average pay is very high because we hire plumbers, electricians, tradespeople and designers who are obviously paid more than a typical retail person."

17. What's your best advice for a young business student who has been told by her professor that she isn't cut out for the business world?

"Don't listen to your professor. And be motivated by his negative attitude, because you can conquer everything if you decide to do it. I am totally inspired by people. I'll be visiting a couple of stores today and it will make my day because I get to interact with wonderful people that are contributing to the company and that are growing in positions. It's so gratifying watching kids come up and become managers. I'm so convinced that if you create a positive environment, the productivity of your people can improve so dramatically. You also have to have discipline, you have to have process and you have to have good planning and all of that. But create a motivating environment and you can change the world. Mentoring is a big part of my job."

18. What kind of a shopper are you and do you shop at Wal-Mart?

"I learned how to shop when I was three years old with my mother. I'm shrewd. I don't want to pay too much for anything. I love quality. I don't have a lot of time but I still do homework before I make a decision on shopping. I shop at Wal-Mart. Absolutely. I learned from these guys. I shop at Loblaw's. I shop wherever I can because if you don't open your mind to new ways of doing things, you'll never get to where you want to be."

19. How do you see your career evolving with Home Depot?

"I speak a bit of Dutch and I also speak a bit of French. And so I've always had the inclination to do something international (with the parent company). That's sort of my interest in terms of the company. If it expands overseas, I'd love to be a part of that. I'm very happy with Home Depot. It's a company that has been so supportive and has nurtured me. I like working for Bob Nardelli (CEO of Home Depot). He's a fine guy to work with and someone for whom I have an enormous amount of respect."

20. What's your life's next great challenge beyond business?

"I'm a person who is really concerned about the environment. I work hard within my business and outside of my business to help that. I am also on the board of Habitat For Humanity. I feel a big responsibility to give back and I've been doing it while I'm working and I need to continue to do that. I am concerned about what the developed countries and the undeveloped countries are doing to their planet. And we have to find ways to stop the way we're ruining it."

Annette Verschuren

* Title: President, Home Depot Canada; President, Home Depot Expo Design Center.

* Born/Raised/Age: North Sydney, N.S./48.

* Education: Bachelor of business administration, St. Francis Xavier University (Antigonish, N.S.).

* Career: Verschuren has been president of Home Depot Canada since 1996. Prior to that, she was president and co-owner of Michael's of Canada (1992-96). She has also worked at Imasco (VP, corporate development), the Canada Development Investment Corp.

(executive VP) and the Cape Breton Development Corp. (development officer).

* Accolades: Verschuren recently received the Canadian Retail Council's award as retailer of the year for her corporate leadership and human and charitable contributions. She was also a recipient of the Canada 125 medal.

* Moonlighting: Verschuren is a board member of the Canadian Council of Chief Executives and Habitat For Humanity Canada.

* Favourite escape from work: Airplanes.

* Pastimes: Tennis, reading, running, golf.

* Last book read: Blink: The Power of Thinking Without Thinking by Malcolm Gladwell.

Home Depot of Canada Inc.

* Profile: Home Depot of Canada is Canada's largest home improvement retailer with 120 superstores and plans to expand by adding 18 new locations this year. It is owned by Atlanta-based Home Depot, a publicly traded company on the New York Stock Exchange (HD).

* Headlines: Home Depot Canada recently acquired LiteMor Distributors, Canada's largest commercial lighting distributor.

* Stats: Home Depot stores offer 40,000-50,000 products for do-it-yourselfers and home improvement and building maintenance professionals.

* Website: www.homedepot.ca

* Head Office: 1 Concorde Gate, Suite 900, Toronto, M3C 4H9.

* Phone: 416-609-0852.

(Gyle Konotopetz can be reached at gyle@businessedge.ca)