What is the Formula for a Great Cannabis Business?

We all know about the need to have quality products, low cost, and motivated employees.

But then comes the hard part...

HOW DO YOU ACHIEVE THESE LOFTY GOALS?

💡 To really be great you need to look deep, below the waterline to the underlying values of the organization. These are the ingredients that foster ‘Built to Last” companies.

I have been a consultant and advisor to 220+ cannabis firms of various sizes and structures, plus scores of pharmaceutical, CPG and manufacturing businesses.

💰 Weed companies that outperform their peers - I’m talking top decile performers - do so because they have inculcated certain values, principles and tenets into their culture.

Here are 3 of those bedrock values:

1️⃣ Openness to the Outside

Most canna-businesses are 'me-too' companies trapped in an echo chamber. Some are consumed by inane industry debates and are cynical about outsiders and their ideas. They do so at their peril.

Leveraging proven ideas, innovations & practices from outside cannabis is critical to driving continuous improvement across the value chain, avoiding strategic blind spots, and quickly capitalizing on key trends & developments.

Being ‘open’ is a mindset as well as proactive action such as studying world class firms, deeply engaging with your suppliers, and understanding transformational business & IT trends.

2️⃣ Discipline

You have limited time, resources, and capital. And no matter how good your firm is, you won’t win everywhere. Success often comes down to making adroit, often painful choices – and sticking to them.

Strategically, pick a lane around how you will compete and where. Ignore the distractions and fads. Strategic choices should be grounded in solid analysis, and include performance tracking, and plan recalibration if necessary.

Being a disciplined operator also means things like hiring with caution, employing good financial controls & budgeting processes and being consistently on brand in your marketing.

3️⃣ Ownership Thinking

Most staff engagement ‘happy talk’ is ineffective. And, passion for weed is insufficient.

Great firms (there are some in cannabis) understand what drives high productivity and commitment. Employees who think like ‘owners’ act like owners i.e. they are more innovative and collaborative, and less cavalier with cost.

Creating an ‘owners’ mindset is not easy. It has broad implications around management practices, org structure and roles & responsibilities.

Push down decision rights to the lowest appropriate level. Share as much data as possible. Communicate honestly and with substance. Incentivize through compensation and other valued rewards.

I help leadership teams solve difficult strategic, cost & organizational problems and capitalize on growth opportunities.

#strategy #culture #performance #builtolast #ownershipthinking