Cannabis Firms Need to Grow Up “The works must be conceived with fire in the soul but executed with clinical precision” Joan Miro The best way to achieve Miro’s precision in business is by fostering a professionally managed organization. ‘Professional’ is a broadly used and often misunderstood concept. In my view, it’s about strong management, effective day to day practices and targeting specific outcomes. Professionally run companies feature intangible norms like transparency and high standards as well as concrete things like SOPs and project management (PM) competencies. There is a good correlation between a company’s level of professionalism and market & financial success (on average). These firms tend to make better strategic decisions, have lower costs, and execute product initiatives with less operational and financial risk. Moreover, I have seen cannabis companies miss out on investment because they were perceived as ‘lacking maturity and institutionalized practices.’ Outside of cannabis, you would be hard-pressed to find a world-class firm that isn’t considered professional across most facets of its business. While most LPs and MSOs have been raising their games, 3 gaps stubbornly stick out: 1. A lack of PM support Cannabis companies are operationally complex and require a high level of compliance. Employing PM staff and practices are a proven means of getting initiatives executed well, on time and on budget. In larger MSOs and LPs, running a separate PMO (project management office) is useful to coordinate different projects, allocate resources, and report up to senior management. 2. Insufficient strategic planning Weed firms face a litany of threats and opportunities, many of which involve big, proactive financial bets. This environment necessitates understanding your consumer and market situation in real-time and frequently revisiting strategic assumptions. A formal planning mechanism driven by a cross-functional planning team is vital to ensure systematic thinking is always guiding your firm’s decisions. 3. No Corporate Credo A credo are the standards, values and behaviors expected of every worker. A company won’t operate professionally if their expectations aren’t defined and reinforced daily as well manifested through hiring practices, training schemes, and performance measurement systems. To be truly effective, professionalism needs to be baked into your culture - and that often requires change. There is, however, a risk of overdoing things which can lead to excessive bureaucracy and reduced staff empowerment. Cannabis firms also don’t want to lose their corporate superpowers like creative problem solving and passion. ‘Fit for purpose’ and practicality should be your organizational bywords.

Posted by Mitchell Osak at 2024-07-18 19:17:21 UTC