What is Winning in Cannabis and Hemp?
I always begin with this question in facilitated client strategy sessions. This simple query almost always triggers passionate debate and a myriad of answers, such as:
Winning is…
* Market share leadership
* High customer satisfaction
* Producing the highest quality products
* Hitting target EBITDA
* Not losing, all the above or ‘I’m not sure’
Depending on your business philosophy, these answers may be good, bad, or incomplete.
If you can’t align on what is ‘winning’, how good will be your strategy and plan to get there?
To wit, a firm that defines winning as being the market share leader will devote more capital to production assets while a company that wants to be a sought after niche player will focus their attention on innovation and branding. The differences go even deeper into choices around recruiting, vendor selection and employee engagement.
I employ a 4-part thinking framework to help teams answer the above question. Sports is a great metaphor for business, so I will invoke the sentiments of some champions:
(1) What is your 'winning' aspiration or objective?
People and organizations need a motivating aspiration. For champion figure skater Nancy Kerrigan “It was never about winning medals or being famous.”
Business is constant warfighting; battles will be won and lost. Your aspiration keeps you going.
(2) What are the goals that flows from your objective?
Managers need to be practical, make data-driven decisions and keep score for key stakeholders. Your goals are numerical targets that demonstrate what winning is for your firm.
(3) How will you measure your results?
Metrics & KPIs - but only the right ones plus not too many of them - are needed to track whether you are losing or winning.
(4) Who are the key stakeholders in your business, and how are they impacted by your definition of ‘winning’?
Many investors, for example, think winning is about profit, share price and maximizing shareholder value.
To Pittsburgh Steeler owner, Art Rooney winning was prosaic: “The biggest thrill wasn’t in winning on Sunday but in meeting the payroll on Monday.”
After you deliberate and align on these things its time to move on to analysis, strategy development & planning and execution.
This process is no less critical and should not be shortchanged. According to basketball coach Bobby Knight, “The key is not the will to win… everybody has that. It is the will to prepare to win that is important.”
Finally, do you have a mechanism for re-evaluation and learning? Babe Ruth famously said: “Yesterday’s home runs don’t win today’s games.” Things almost never go according to plan. Conditions change. Assumptions are often wrong.
Cannabis is increasingly all about reinvention.
Call me. I help leadership teams solve difficult strategic, cost & organizational problems and capitalize on growth opportunities.
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