CORNELL ENTREPRENEURSHIP REVISED FOR OSC2

WHAT IT TAKES TO BUILD A NATURAL FOODS BRAND

LARA JACKLE DICKINSON

JGSM ‘94

Passion & performance management leadership

Both Passion and Performance management leadership are essential to the long term success of an entrepreneurial business

• Passion defined:

• Belief that idea and product are essential and right for people

• Drive to create a business over any other opportunity

• Insight into a consumer group or business

• Performance management leadership:

• Delivering against goals and strategy.

• Accountability to goals. MBO’s link bonuses to goals.

• Strong, well defined hiring process

• New product development process

• Recognition

• Regular team building activities

Right size Process to the company

Lara Jackle Dickinson NPM Leadership & Growth Tools

What do we know about Entrepreneurs?

Pros

• Creative• Innovative• High passion• Can see things other can not in

the marketplace• Commitment to ideas and

values• Opportunistic• Seize the moment• Do not take no for an answer• Charismatic• Great sales people

Cons

• Lack of process

• Not always great with numbers

• High control

• Reluctant to delegate

Lara Jackle Dickinson NPM Leadership & Growth Tools

What do we know about Entrepreneurs?

• High on passion; but often challenged on performance management leadership and long term planning

Lara Jackle Dickinson NPM Leadership & Growth Tools

The Energy Bar Story

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1990 1995 2000 2005 2014

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Balance Bar

Clif Bar

Power Bar

Acquired

Passion vs. Performance Management

Clif$50 m

Balance $120 m

Power $60 m

Balance $69 m

Power $150 m

Clif $400 m

20002013

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Lara Jackle Dickinson NPM Leadership & Growth Tools

Lets take a look more broadly at the industry….

Passionate, values driven brands hit a wall without ongoing performance management leadership

$10 – 20 MM Wall

Small, fast growth,

passionate, values

$0

High Passion, but low focus on performance management

Lara Jackle Dickinson NPM Leadership & Growth Tools

Passion and performance management at high culture/high performance company– Cornell alums

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All about making F’real a great place to work. “We spent at least 10 hours with every person before hiring and applied the Monday Test.” NO vacation policy. No Product compromises ever.” Jim Farrel, Founder & CEO

My first hire was VERY process driven because I am not. Bi-weekly meeting with everybody to review numbers; CEO actively looks for positive leadership example.

Lara Jackle Dickinson NPM Leadership & Growth Tools

Passion and performance management at rising star companies – Cornell alums

“Owner mentality is emphasized over and over again. People come herebecause they want to change things - in a big way. We give equity grants when folks demonstrate ownership. And we keep Music blasting 12 hrs/day”Josh Tetrick, Founder & CEO

“We have 2 goals we all work toward and every employee gets a 10% bonus if we achieve those goals.”

Lara Jackle Dickinson NPM Leadership & Growth Tools

Iconic brands maintain passion/authentic values and continuously develop performance management process

Passion

Rising Stars Iconic Brands (300 M+)

Duds Established Cash Cows

Performance Management Leadership Lara Jackle Dickinson NPM Leadership & Growth Tools

Key features of companies with passion and performance management leadershipPassion Vs. Performance profile

Key Features

High Passion, Low Performance Management

Long term growth cap, staff frustration due to lack of process, lose good people, lack of planning=vulnerable to challenge, quality control problems

Low Passion,High Performance management

Overly focused on system and process, lose connection and intuition for consumer insights, slow decision making, brand denigration, low staff retention

High Passion, High Performance

Iconic brand potential, continuous growth opportunity, high staff retention