4 Traits Every Cannabis Manager Must Follow “Leadership and learning are indispensable to each other” John F. Kennedy Building top-down managerial competencies is one of the most important but least acknowledged cannabis issues right now. Possible reforms aside, 2024 is shaping up - correctly - as the year of operational acceleration. There’s a simple equation in business: better managers = better financial performance. However, like many things in cannabis that is easier said than done. Some impressive McKinsey research can help. In 2014, the firm surveyed 189,000 people across 81 diverse organizations to determine which frontline manager skills & traits correlated with leadership and organizational success. McKinsey found that the secret to developing winning leaders and businesses is through encouraging the following 4 traits. (I will apply them to the challenges found in most cannabis companies): 1. Operate with a strong results orientation Virtually every cannabis firm needs to keep driving down costs and upping its operational game in terms of production efficiencies, brand building and employee engagement. To do this, leaders must choose and manage against the right metrics, tighten departmental & business unit alignment, and drive down accountability to the appropriate level. Successful managers are also priority-setters and sticklers around plan execution. 2. Be supportive Many cannabis companies have already banked the easy operational wins. Achieving even better performance (e.g, increased productivity, more innovation and better decision making) will require more effort spent on collaboration, mentoring and training. Managers should also be modeling professionalism and transparency in all interactions. All of these ‘soft skills’ must be a part of every manager’s tool kit. 3. Solve problems efficiently Running a successful cannabis business is about solving a myriad of small operational problems and putting in the analytical effort to crack bigger, more strategic ones. Unfortunately, most companies and managers are ill equipped to do this because of a lack of skills, time, and problem-solving techniques, not to mention a failure to properly leverage data. Effective problem-solving must be a foundational management skill. 4. Value different perspectives This notion should be self-evident but sadly is not in many teams and Board Rooms I know. The ‘roots vs suits’ rift is but one expression of the hubris and blind spots plaguing many firms. If one wants to make progress, the fix is relatively straightforward: hire for more diversity (of all types), insist on frank & open conversations, and reinforce empathetic managers. Cannabis businesses need strong frontline managers who can also nurture the next generation. These 4 traits are a good, foundational place to start.

Posted by Mitchell Osak at 2024-04-23 15:53:07 UTC