Building A Legacy in Business 9-28-2010

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1
Leadership and Legacy
Randy M. Ataide
Professor of Entrepreneurship
Executive Director
Fermanian Business & Economic Institute of PLNU
2
Introduction
It was 1964͙
3
͞Were Beatle fans so

stupid that they didn͛t
realize they were
being taken?͟
4
5
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 the
low point?
Are we prepared? 6
Introduction
Overview of Presentation
1) A Tale of Peaches & Lost Legacies

2) The ͞New-New͟ Reality of Business
3) The One Thing Your Company Must Do
4) Learning How to Fail
5) Questions and Attempts at Answers
7
A Cautionary Tale of People & Peaches
8
9
§ 600+ Packers in 1980
258 in 2002
115 in 2010
§ 22,000,000 cases produced in 1971

56,000,000 cases produced in 2002
42,000,000 produced in 2010
10
§ 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
11
12
Did the result come about because farmers

aren͛t smart or don͛t work hard enough?
Is the history of the California tree fruit

industry an anomaly?
Can it happen elsewhere? In our businesses?

13
The past twenty years have irrevocably changed

the California agricultural industry, destroying
large numbers of family farms.
This despite that according to most research,

U.S. farm productivity grows at an annual rate
in excess of 3X that of the non-farm economy.
14
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.
15
The ͞New-New͟ 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.
16
The reality is that we face much more
þ than right now.

17
Observation #1:
The economy has irrevocably changed, but what

will emerge is not clear.
18
19
Observation #2:
The business model is changing and it appears

to be highly entrepreneurial.
20
The Enterprise of the Future
Source: IBM Global CEO Study 2008
21
Observation #3:
Traditional management, leadership and

education principles are being challenged.
22
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ý
ý
23
Observation #4:
The factors that damage most businesses are

fairly constant.
24
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
25
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
.
26
A quick test: What is it that your

company does that is:
§ Unique?
§Understandable?
§Transmittable?
§Flexible?
27
The One Thing Your Company Must Do
!" |# $%#

&'()&*( &
"()) %*
&!(!)+
These are the unique propositions that

a business brings to its customers. You may
know them as ͞value propositions.͟
28
Traditionally, this was some

combination of quality and price. But this is
simply not enough any more.
29
Ò

Providing customers with reliable
products, competitively priced, delivered
easily. This is a focus upon a particular
effective delivery system.
Think Wal-Mart or many franchises!

30
Òþ

Continued tailoring and modification of
products and services to fit an increasingly fine
definition of the customer.
Think Nordstrom͛s, Frito Lay and service

companies that are keenly aware of the
lifetime value of a customer!
31
Ò þ
Companies that provide a continuous
stream 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!
32
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 of
disciplines must be placed in the forum of
continued competitive movement.
33
Learning How to Fail
Finally, leaders must learn how to fail.
This is counter-
intuitive to
dominant theory
and practice.
34
And the key to

constructive failure
is learning how to
͞fail fast.͟
35
Failing fast involves personal & professional
capacity to:
§ Not confuse chatter with success
§ Build & hold to clear metrics
§ Early success is a great masker of reality
§ Define success and remind yourself of it
§ Don͛t be too emotionally involved
§ Talk about failure & how to thrive from it
36
Conclusion
Action Items
1) Realize that working hard is not enough to build and

preserve a legacy.
2) Understand that the ͞new-new͟ business reality is
currently unknown.
3) Recognize the signs of an emerging business model
in your own industry and space.
4) Determine your firm͛s value discipline(s).
5) Embrace ͞smart͟ failure to make your company and
personal leadership even better.
37
Questions?
38
Contact Information:
RandyAtaide@pointloma.edu
(619) 849-2692
www.pointloma.edu/FBEI

!"
39

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|  

͞Were Beatle fans so

Do we know our businesses and ourselves well

What about if 2011 turns out to be not the

1) A Tale of Peaches & Lost Legacies

§ 22,000,000 cases produced in 1971

§ Per capita consumption decreased in fresh

§ 1998-2002 cost of production was $7.81 per

§ 2010 cost of production was $9.75 per box

 Did the result come about because farmers

 Is the history of the California tree fruit

 Can it happen elsewhere? In our businesses?

The past twenty years have irrevocably changed

This despite that according to most research,

My point is that few industries and leaders care

We need to learn from them and their

And to place this observation and knowledge

We must do this to preserve our own legacies.

Working hard is simply not enough any more.

þ   than  right now.

The economy has irrevocably changed, but what

The business model is changing and it appears

Traditional management, leadership and

The factors that damage most businesses are

According to the Winmark Group the major

Why do these issues constantly present

I would contend that it is because

A quick test: What is it that your

 !" |# $%#

These are the unique propositions that

Traditionally, this was some

Think Wal-Mart or many franchises!

Òþ  

Think Nordstrom͛s, Frito Lay and service

My counsel is that for companies in a

And the key to

1) Realize that working hard is not enough to build and

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|

Did the result come about because farmers

Is the history of the California tree fruit

Can it happen elsewhere? In our businesses?

þ than right now.

!" |# $%#

Òþ