Building a Legacy in Business 9-28-2010

8/8/2019 Building a Legacy in Business 9-28-2010

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WEALTH & LEGACYWEALTH & LEGACYSEMINAR SERIESSEMINAR SERIES

Leadership & Legacy

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Leadership and Legacy

Randy M. Ataide

Professor of Entrepreneurship

Executive DirectorFermanian Business & Economic Institute of PLNU

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Introduction

It was 1964

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Were Beatle fans so

stupid that they didnt

realize they were

being taken?

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Introduction

Do we know our businesses and ourselves well

enough to create a genuine legacy?

What about if 2011 turns out to be not the

turning point for the economy but actually thelow point?

Are we prepared? 6


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Introduction

Overview of Presentation

1) A Tale of Peaches & Lost Legacies2) The New-New Reality of Business

3) The One Thing Your Company Must Do

4) Learning How to Fail5) Questions and Attempts at Answers

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A Cautionary Tale of People & Peaches

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600+ Packers in 1980

258 in 2002

115 in 2010

22,000,000 cases produced in 1971

56,000,000 cases produced in 200242,000,000 produced in 2010

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Per capita consumption decreased in fresh

tree fruit since 1970 and continues to drop

1998-2002 cost of production was $7.81 per

box and sales average $5.50-$7 per box

2010 cost of production was $9.75 per box

and sales average was $8.90 per box

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My point is that few industries and leaders care

as much about leaving a legacy than farmers.

We need to learn from them and their

experiences, regardless of our business type,sector, size and age.

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The New-New Reality

And to place this observation and knowledge

into our own particular context.

We must do this to preserve our own legacies.

Working hard is simply not enough any more.

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The New-New Reality

The reality is that we face much more

uncertaintythan certaintyright now.17


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The New-New Reality

Observation #1:

The economy has irrevocably changed, but what

will emerge is not clear.

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The New-New Reality

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The New-New Reality

Observation #2:

The business model is changing and it appears

to be highly entrepreneurial.

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The New-New Reality

The Enterprise of the Future

Source: IBM Global CEO Study 2008

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The New-New Reality

Observation #3:

Traditional management, leadership and

education principles are being challenged.

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The New-New Reality

The End of Management

How to Fix Business Schools

The System is Broken

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The New-New Reality

Observation #4:

The factors that damage most businesses are

fairly constant.

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Recurring Challenges

According to the Winmark Group the major

challenges for businesses are (in order of

importance):

1. Poor Planning

2. Improper utilization of their resources

3. Use of Capital

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Why do these issues constantly present

formidable challenges to businesses?

I would contend that it is because

most of them never really consider what

business they are really in.

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A quick test: What is it that your

company does that is:

Unique?

Understandable?

Transmittable?

Flexible?

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The One Thing Your Company Must Do

A 1993 article by Treacy & Wiersma from

Harvard Business Review argued that every

business needs to decide what are itsvalue disciplines.

These are the unique propositions that

a business brings to its customers. You mayknow them as value propositions.

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Traditionally, this was some

combination of quality and price. But this is

simply not enough any more.

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#1 Operational Excellence

Providing customers with reliableproducts, competitively priced, delivered

easily. This is a focus upon a particular

effective delivery system.

Think Wal-Mart or many franchises!

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#2 Customer Intimacy

Continued tailoring and modification ofproducts and services to fit an increasingly fine

definition of the customer.

Think Nordstroms, Frito Lay and service

companies that are keenly aware of the

lifetime value of a customer!31


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#3 Product Leadership

Companies that provide a continuousstream of new products and service. They

are creative, fast and seek innovation from all

sources.Think Apple, J & J and most 1st

generation entrepreneurial ventures!

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My counsel is that for companies in a

competitive world to fully achieve their

potential it should select a value discipline

first, and then plan, allocate resources, capital

and strategy upon the discipline.

And this discipline or combination ofdisciplines must be placed in the forum of

continued competitive movement.

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Learning How to Fail

Finally, leaders must learn how to fail.

This is counter-intuitive to

dominant theory

and practice.

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And the key toconstructive failure

is learning how to

fail fast.

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Failing fast involves personal & professional

capacity to:

Not confuse chatter with successBuild & hold to clear metrics

Early success is a great masker of reality

Define success and remind yourself of itDont be too emotionally involved

Talk about failure & how to thrive from it

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Conclusion

Action Items

1) Realize that working hard is not enough to build andpreserve a legacy.

2) Understand that the new-new business reality iscurrently unknown.

3) Recognize the signs of an emerging business modelin your own industry and space.

4) Determine your firms value discipline(s).5) Embrace smart failure to make your company and

personal leadership even better.

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Questions?

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The Fermanian Business &Economic Institute of PLNU

Contact Information:

[email protected](619) 849-2692

www.pointloma.edu/FBEI

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Building a Legacy in Business 9-28-2010