My friend and colleague, Steve Fredricks, President of Turrentine Brokerage, Trusted and Strategic Advisors to Growers, Wineries, and Financiers in the wine industry, did a terrific job at this year's Wine Industry Financial Symposium, Competing in a Rapidly Changing Global Wine Market.[pullquote]The Turrentine Wine Business Wheel of Fortune is the gold standard for…
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Why is this so hard? We find ourselves entrenched in the quagmire of a lingering and painful recession … more companies than ever need stronger financial management … and yet so many of them remain painfully slow to recognize it. Sure, many have trimmed costs and are paying closer attention to nickels and dimes, but few of them have a comprehensive financial strategy.
So, in some misguided way, I guess it feels good to have some company … because the need for financial discipline was a common refrain among wine industry cognoscenti at this year’s Symposium, Competing in a Rapidly Changing Global Wine Market. The economic shock waves of the last 24 months have rocked the wine industry, dragging many of its members, in some cases kicking and screaming … into an era where professional management and greater financial discipline are demanding front row seats alongside the entrepreneurs and artisans that have reigned over the California wine industry
[pullquote]Stronger financial management is overdue in the California wine industry.[/pullquote]
Building a bridge between the financial community and the wine industry is one of the founding precepts of the Wine Industry Financial Symposium formed in 1992. Last Monday, I was privileged to lead a 90 minute workshop devoted to Practical Strategies to Improve Cash Flow, in which I shared a few “diamonds in the rough” about how to get more juice into your bank account … and how the California wine businesses can integrate Strategic Finance into their everyday business decision making.
During the preceding From Survival to Prosperity – Strategies for Transition session, (more…)
[pullquote] Double V - the deadly duo of Big Volatility and Little Visibility.[/pullquote] A recent WSJ opinion piece nicely summarizes the quagmire of uncertainty that plagues American business. I'm pretty tired of all of the "credit-starved businesses" stories presented like medieval alchemy ... fix this and you've found gold ...…
In Cash for Chocolate, WSJ outlines several creative ways to raise funds for those of you looking for an innovative solution. I like the idea of "chocolate bonds" where you receive a box of chocolates every month as part of your investment return, or receive a "grocery discount" when investing in a…
I’m sure this will be a popular post … but set aside your emotions for a moment about the BP disaster… and consider the insistence by the federal government that an independent agency take over the claims resulting from the oil spill, purportedly overriding BP’s authority, and that of the other 12 entities on board the oil platform, in those matters. The suggested prototype is the independent examiner appointed to handle claims resulting from the events of 9/11 … but recognize that those events were NOT directly caused by a legal entity with rights and responsibilities and shareholders, or that was subject to a myriad of legitimate national and international governing bodies.
Who should decide how much to pay whom for oil spill claims?
What I wonder is whether BP … in most cases, any corporation … shouldn’t have some rights and control over the claims paid from funds ultimately belonging to their shareholders? Take special note that in BPs case, a powerful example of the global economy in which we live, 18 million British citizens own stock in BP, many of them retirees.
Emotions are running high and many people would prefer to see BP hanging from the nearest rafter. At the same time, shouldn’t a company be allowed to settle claims in a fair and reasonable manner? There are plenty of ways in which individuals and organizations can seek redress if they disagree on the results, either through appeal or in claims or civil courts if a reasonable settlement cannot be made.
What paperwork? (more…)
Those of you who are willing to admit … or deserving … of wearing this crown have probably stumbled down the staircase more than once trying to exert your control over every fiber of the carpet beneath your feet.
Researchers have found that when test subjects are even subliminally exposed to the name of a person they believe is “controlling”, they unconsciously do the OPPOSITE of hard work. It seems that people value their freedom “so much so that even an unconscious memory of a controlling person stimulates a behavioral reaction.”
Combine this with The Productivity Paradox and the work done at Sony Pictures to focus more on employee energy management rather than time management, (more…)
Someone recently told me that they’re bored by finance. “Don’t distract me with strategic finance stuff, just let me run my business the way I know how.”
“No problem,” I said, “if you’ll just answer one question. What if the way you’re running it is causing increasing strain on your financial resources, cash flow is dwindling and you’re destroying market value every year. Do you care about any of that?”
“Of course, I do, but when sales start picking up again, all of that will go away and my EBITDA will return to normal levels.”
“Really?” I said. “How do you know that?”
“That’s the way it’s always worked.”
“Have you had any problems with your banking relationship?” (more…)
The North Bay Business Journal, a publication of the New York Times, is a weekly business newspaper which covers the North Bay area of San Francisco – from the Golden Gate bridge north, including the Wine Country of Sonoma and Napa counties.
This page provides the Print-Friendly Version of the article, as published.
Any related materials or articles referenced in the column, or otherwise applicable, will also be referenced below:
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Article published -November 30 2009
“Strive not to be a success, but rather to be of value.”
– Albert Einstein
Last time I presented the dichotomy of two opposing cultures and posed the question: If measured by financial performance, how can dramatically different organizations be equally successful? In this continuing series, we’ll explore some of the combinations and permutations of sound business principles and cultural patterns that often collide within an organization’s walls.
In many ways, it doesn’t seem fair that both charitable and churlish cultures can thrive. It’s easy to embrace the benevolent culture created by Sid Rich (we’ll call it Company South, “S” for Sid) as profiled in my last column.
That company deserves to be successful. Wouldn’t it be great if that was the company I worked for? Contrarily, when you look across the aisle at the rough and tumble world of Company North (“N” for Nasty), highlighted by temper tantrums, public floggings and a petulant devotion to spending a dime on anything, we’re either glad we’re not working there … or wishing we didn’t.
Some powerful lessons are evident as we compare and contrast these companies, their styles and culture, although some lessons are not very inviting. (more…)