Roots vs Suits: Is a cannabis culture clash inevitable
Smarten up, people.
To a casual observer, the cannabis industry appears to be imploding. It’s not but I’ve never seen the above industry archetypes turn on each other with such anger and distrust. Firms that can’t manage this conflict are doomed to fail.
To Illuminate this divide, consider this hypothetical conversation:
Root: Greedy capitalists have ruined our noble industry.
Suit: Socialism much? We aren’t all greedy. It was us who brought in the critical capital to build large-scale, compliant and professional companies.
Root: You mean those publicly-listed LPs and MSOs that produce lousy weed and seek to monopolize their markets? Suits are only in this to make a quick buck. They never respected the cannabis community, who have toiled in the shadows for decades and paid the price during the ‘War on Drugs’.
Suit: Its 2022, not 1970. Cannabis is now a capital-intensive, consumer packaged good. Companies need to be managed that way.
Root: You think because you marketed spirits or Mr. Clean you have a clue? If your valuations are any indication (and you guys like metrics), your approach sucks.
Suit: Time to be real. The moment cannabis was legalized - which is what you wanted - then all the rules changed. Need I remind you of the cost of building capacity, ensuring compliance and creating trusted consumer brands. And spare us the hypocrisy. The illicit market is profit-seeking, and produce their share of inferior weed laced with who knows what.
Root: This industry will get back on the right track when we are back in charge, again, and the pump n dumpers move onto to destroying crypto and psychedelics.
Suit: Thanks for your contribution. Now, please move along and let the adults take over.
Sound familiar? It is two partisans arrogantly talking over each other and ignoring the other’s arguments.
Will these competing worldviews ever come together? It has to. Here’s why:
Tough times will force compromise – We are at the beginning of a painful economic downturn unseen since 2008; plenty of other storm clouds loom on the horizon. That soothing balm – easy, inexpensive capital plus juicy margins – is a thing of the past. Difficult operating and financial choices will need to be made and implemented, together.
Hybrid approaches are emerging – Enough data and best practices have emerged over the last 3+ years to classify cannabis as a unique industry, not a CPG or beverage alcohol copy-cat. Successful leadership
styles are emerging, combining the passion and art of the Roots with the business rigour and realism of the Suits.
After working with 150+ cannabis clients one thing is clear to me: nobody has all the answers. Pundits and operators would be mindful of Charles Darwin’s sage words: Ignorance more frequently begets confidence than does knowledge.
#roots #suits #legacy #community #culture #organizationaldevelopment