passion vs performance management
TRANSCRIPT
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
Rev
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$M
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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
PassionPerf.
Mgmt.
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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