Passion vs Performance Management
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The document discusses the essential role of passion and performance management leadership in building successful entrepreneurial businesses, particularly in the natural foods industry. It highlights the characteristics of entrepreneurs, the balance required between passion and performance management, and provides examples of successful companies that exemplify this balance. Key points include that companies with high passion and effective performance management are more likely to achieve long-term growth and retain talent.
Passion vs Performance Management
- 1. CORNELL ENTREPRENEURSHIP REVISED FOR OSC2 WHAT IT TAKES TO BUILD A NATURAL FOODS BRAND LARA JACKLE DICKINSON JGSM ‘94
- 2. Passion & performancemanagement 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
- 3. 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
- 4. 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
- 5. The Energy Bar Story $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 1990 1995 2000 2005 2014 Revenues($MM) Balance Bar Clif Bar Power Bar Acquired
- 6. Passion vs. Performance Management Clif $50 m Balance $120 m Power $60 m Balance $69 m Power $150 m Clif $400 m 2000 2013 Passion Perf. Mgmt. ++ +++ +++ ++ ++ + Passion Perf. Mgmt. + + +++ +++ +++ +++ Lara Jackle Dickinson NPM Leadership & Growth Tools
- 7. Lets take a look more broadly at the industry….
- 8. 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
- 9. Passion and performance management at high culture/high performancecompany– Cornell alums – 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
- 10. Passion and performance management at rising star companies – Cornell alums “Owner mentality is emphasized over and over again. People come here because 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
- 11. Iconic brands maintain passion/authentic values and continuously develop performancemanagementprocess Passion Rising Stars Iconic Brands (300 M+) Duds Established Cash Cows Performance Management Leadership Lara Jackle Dickinson NPM Leadership & Growth Tools
- 12. Key features of companies with passion and performance management leadership Passion 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