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[05/13/2008, 20:40] Changing CEOs is a Saavy Business Move

When I read Inertia Beverage’s announcement of a change of CEO it was not only interesting but actually a very wise move by the current CEO and a friend of mine Paul Mabray.  I don’t want to get into a long post on my business philosophy but I thought I should post a short commentary as I saw some conversation breaking out that made it seem as if this was a negative thing.

I know many times press releases put alot of spin on a bad situation to make it seem like a good one.  I know because part of my role in various marketing jobs had been to do just that and I always put out the story before someone makes a "scoop" and spins it negatively first.  Thats just good PR.

But I view Paul’s announcement differently.  I’ve been in High-Tech since the 1980’s even before I was in college (when I was working for a software retail company).  But more importantly, my view is shaped by something my mentor, Don McKinney, imparted on me when I first moved to Silicon Valley.  Basically, if you want your company to really succeed you first have to recognize that the company will require different CEOs and RARELY does the same person have the personality to be all of these.

  1. the "$0 to $10M" CEO - this CEO thrives on the startup situation.  Risk taker, entrepreneurial, big-game hunter, and business developer (as well as visionary and marketeer), this CEO is usually one for the founders.  The key here is to have a sales person in this role and drive the initial products to be customer-oriented with a saavy product team.  This CEO recognizes that getting A+ players on the team is more important then having the right structure or hierarchy.
  2. the "$10M to $100M" CEO - This CEO can take those first few BIG customers and nourish them such that they can be cash cows for the company.  At the same time he/she starts to pull in trusted sales and business development folks as well as marketing folks to compliment development and empowers them to do their job.  What can happen to a company that may cause it to fail is if CEO #1 thinks he/she is CEO #2 but isn’t really and has trouble either getting help to create new business, create a polished brand, or both because he/she still thinks he/she has all the best ideas and no one else can do it for them.  Its the beginning of scaling the company.
  3. the "$100M to $1B" CEO - This CEO recognizes that the company is going to go BIG TIME and needs processes that allow the organization to scale.  Oh the dreaded "P" word, but its true.  At this point, customer care is still job #1, but setting up the structure to scale operations is becoming more and more important and this CEO needs to allow that to go to a professional A+ COO type.  Again, failure can happen here when a CEO doesn’t appreciate what an operationally oriented person’s value is (i.e. can make the organization scale in ways the CEO never dreamed up).  This CEO also has to be able to attract the investment levels that typically the founding CEO doesn’t have access to.  This is usually when you see a CEO finally step aside but it can be too late.
  4. the "$1B to $10B" CEO - Now your talking about the professional CEO that you see at the top of Cisco, GE, and companies like that.  Charismatic and oozing leadership that can rival Bill Clinton in his prime.  This CEO still focuses on his top customers but there usually are so many that the top 10 are likely the only he/she gets to visit.  This CEO could be very very smart but is really removed from day-to-day so is fed development information and status from a staff of A+ lieutenants but likely has a big company filled almost 50% with B players (inevitable at this size).  The hope is that CEO #3 created solid enough processes that the company will thrive and compensate for some incompetence that has inevitably creeped into the the ranks of the company.

Thats the idea in a nutshell.  You can move the revenue bands up and down a little but this is generally true.  I had this wisdom passed on to me in the early 1990s and I’ve seen it proven out time and time again.  What I see in the Inertia announcement is a smart man that wants to see his company do great things.  But I say "smart man" because from my conversations with him, he intuitively sensed he wasn’t CEO #2 or #3, checked his ego at the door, and did the right thing.  He’s still working in there directing strategy and given his history in the wine business thats probably a good move.

The employees of Inertia should be excited.  As a Silicon Valley veteran, I can tell you more often then not that a move like this initiated by the CEO prevented this from happening later in your lives when the Board of Directors forces this decision (and they always do) because the CEO isn’t scaling the company for the big time.

Cheers!

hunter valley
hunter valley


[04/09/2008, 09:05] Wines recently reviewed in The Wine Front ...

If you're not a subscriber to The Wine Front you don't get to see the reviews that are added to the site on most days. In the past seven days the following wines have been reviewed in the Subscriber Only section of this website.

hunter valleyAmon Ra Barossa Valley Unfiltered Shiraz 2006
Barking Owl Cabernet Sauvignon Merlot 2005
Barking Owl
Shiraz Viognier 2005
Calulu Park Yarra Valley Pinot Noir 2006
Clonakilla Canberra District Ballinderry 2006
Clonakilla Hilltops Shiraz 2007
Clonakilla Murrumbateman Syrah 2006

Fools Bay Beached Barossa Shiraz Cabernet 2006
Fools Bay Dusty's Desire Shiraz 2006
Giant Steps Yarra Valley Tarraford Vineyard Pinot Noir 2006
Gipsie Jack Langhorne Creek Shiraz 2006

Gralyn Margaret River Cabernet Shiraz 2005
Gralyn Margaret River Racy Red 2007
Gralyn Margaret River Reserve Shiraz 2005
Gralyn Unoaked Cabernet Sauvignon 2007
Hollick Coonawarra Cabernet Sauvignon 2004
Hollick Coonawarra Sparkling Merlot 2006
Hollick Wrattonbully Hollaia Sangiovese Cabernet Sauvignon 2005
Hollick Wrattonbully Shiraz 2004
Hollick Wrattonbully Tempranillo 2006
Massena The Moonlight Run 2006
Massena The Eleventh Hour 2006
Massena Howling Dog 2006
Mr Riggs Viognier 2007
Mr Riggs Yacca Paddock Tempranillo 2006
Mr Riggs Shiraz Viognier 2006
Mr Riggs McLaren Vale Shiraz 2006

Ravensworth Hunter Valley Shiraz 2007
Ravensworth Murrumbateman Marsanne 2007
Ravensworth Murrumbateman Sangiovese 2007
Ravensworth Murrumbateman Viognier 2007
hunter valleyShelmerdine Yarra Valley Pinot Noir 2007
Shelmerdine Yarra Valley Sauvignon 2007
Shingleback McLaren Vale Shiraz 2005
Tyrrell's Wines Double Barrel McLaren Vale Shiraz 2005

Wickhams Road Gippsland Chardonnay 2007
Wickhams Road Yarra Valley Chardonnay 2007
Yering Station Yarra Valley Reserve Pinot Noir 2006
Yering Station Yarra Valley Reserve Shiraz Viognier 2006

For subscription details to The Wine Front click here.

[01/01/2008, 05:36] Good Living Show: Australian Regional Shiraz Masterclass

This was the third masterclass I attended at this event.

The five wines were served blind, with the only information provided that they were Shiraz and each was from a different region. Wines were revealed at the end of the tasting.

Wirra Wirra Woodhenge Shiraz 2004
Crimson colour. Perfumed with violets, and rich chocolate and vanilla oak. The palate is bold as well, lots of big, ripe fruit depth. Thought that this may be Barossa but it turned out to be McLaren Vale.
88/100

Tin Shed Shiraz Melting Pot 2004
Inky black colour. Chocolate, cassis, raspberry jam and some prunes. Palate is jammy and very ripe with some spice in the background. Guessed at Heathcote but was way off as it is from the Eden Valley.
85/100

Rymill Shiraz 2002
Deep colour. Nose is dreadful, barnyard, medicinal and raw meats. Palate is a bit better but not by much. Guessed Coonawarra correctly.
78/100

Cheviot Bridge Pyrenees Shiraz 2003
Crimson coloured. Spice, violets, red berries and a hint of oak on the nose. Smooth, well balanced palate. A pleasant, drinkable wine. Figured on cool climate so I thought it may be Yarra Valley, but I was wrong.
87/100

Bimbadgen Shiraz 2005
Burgundy coloured. Nose is fairly subdued, some spice and earth. Palate carries across the spice and earth characters. Medium bodied, decent length, just not very exciting. Correctly picked it as Hunter Valley.
86/100






 



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