I spent a good part of last week unplugged from my iPhone and emails while immersed in a Grinnell Leadership program last week. While a bit disconcerting at first, I learned to live in the moment and focus on myself and my thoughts about leadership. While no earth-shattering insights have emerged, I do have more awareness of thoughts, feelings, patterns and behaviors within myself and those around me. And that, according to John Grinnell, is a critical leadership skill in this day and age.
Let me try to explain what I think John means by offering my observation from watching recent episodes of Mad Men on AMC. For those of you who have not been near a TV in the last 5 years, Mad Men is a TV show that takes place in a fictional New York advertising agency in the 1960's. It follows the trials and tribulations of Don Draper, one of the principals in the firm, and how he deals with a world that is rapidly changing around him. One of the things you learn about Don is that he holds to a rigid world view that puts him above all others and causes him to behave in a way that subordinates and intimidates those around him.
I think the appeal of the show is that it harks back to a seemingly simpler time when men were in positions of unquestioned authority and got what they wanted based on their station in life. And as many male viewers who would like to be in Don Draper's shoes today, there are probably very few viewers, male or female, who would in good conscience choose to be a direct report of Don Draper's. Why is that? I believe that in this modern age, men and women (especially) have many options who they work for and the types of environments they work in. Furthermore, technology and communication have made information flow very fast and more transparent. People chose whom they wish to follow and learn very quickly to avoid leaders who lack integrity or character.
So before you mix that whiskey sour and start channeling your inner Don Draper at the office, think carefully how he would cope in this era of team-oriented, self-actualizing and socially responsible employees - he would go ...absolutely mad(!).
Wednesday, September 29, 2010
Wednesday, September 22, 2010
The Best Little Non-profit and VC firm You've Never Heard of
Last week I attended the SJF Summit on the New Green Economy, organized by the SJF Institute, a nonprofit organization that also has a VC fund (SJF Ventures) associated with it. Formerly known as Sustainable Jobs Fund Advisory Services, the newly re-branded SJF Institute has plans to (in their own words) "connect, inspire, and accelerate sustainable entrepreneurs and the fields that support them." As I understand it, SJF Institute is the non-profit arm that supports sustainable entrepreneurship through research reports and conferences and SJF Ventures is the VC fund that is investing in companies that are committed to help improve the environment, through recycling, conservation or renewable energy.
This conference, held in Durham, NC, was the second annual SJF summit and again focused on the innovations and jobs being created in the green economy. Although the US economy is still finding its way out of recession and environmental legislation has stalled in Congress, there was still plenty of optimism about the future of green innovation, as evidenced by the large number of private equity funds and a smattering of successful "green entrepreneurs" in attendance at the meeting.
My take home message from the summit is that for green energy companies with mature technologies and proven value, there is good money waiting to be deployed. However, the jury is still out as to what is the most efficient and profitable business model for companies to grow and prosper in the new green economy.
This conference, held in Durham, NC, was the second annual SJF summit and again focused on the innovations and jobs being created in the green economy. Although the US economy is still finding its way out of recession and environmental legislation has stalled in Congress, there was still plenty of optimism about the future of green innovation, as evidenced by the large number of private equity funds and a smattering of successful "green entrepreneurs" in attendance at the meeting.
My take home message from the summit is that for green energy companies with mature technologies and proven value, there is good money waiting to be deployed. However, the jury is still out as to what is the most efficient and profitable business model for companies to grow and prosper in the new green economy.
Tuesday, September 14, 2010
Brazil’s Golden Harvest
This week BRI’s Market Development Manager Juan Carlos Rosa-Medina explores the recent developments in the Brazilian agricultural economy.
As the US and European economies face an uncertain future, more and more companies in those areas are looking to emerging countries for international expansion. Brazil in particular has been in the spotlight for its recent rapid growth and its leading industrial players such as Petrobras and Embraer, but behind all that there has been shrewd strategic thinking from its institutions and businesses. So here are two main lessons, albeit with more of an agribusiness slant, that we can learn from Brazil:
1. Invest in sustainable growth. Embrapa, the Brazilian Agricultural Research Corporation, has played a key role to convert Brazil’s once unproductive soil into the source of some of the world’s most productive farmland. They have done this by painstakingly adding nutrients to the soil to improve productivity, leveraging genetics to produce grasslands for their cattle, and adapting foreign crops to their local environment. Their model has been so successful that they have already surpassed the agricultural output of other Latin American countries and are a closing in on American production of crops such as soybeans.
2. Strengthen your base and reach out. According to the Yale Center for the Study of Globalization, Brazil has turned into the only Latin American net foreign investor because of the convergence of political stability, market oriented reforms, and macroeconomic soundness. This environment has increased competitiveness among Brazilian companies, which are now looking outside their territory to expand. A few examples include Brazilian company JBS, which acquired the US Beef production division of Smithfield Farms in 2008 and the poultry producer Pilgrim’s Pride in 2009, making it the world’s largest meat producer; Brasil Foods, the merger of Sadia and Perdigao, hold equal or bigger market capitalization than US-based Tyson and Hormel Foods, and the purchase of Burger King at a 46% premium by the Brazilian investment firm 3G Capital show Brazilian businesses flexing their economic muscles.
But running counter to real innovation and scalable business growth is a culture of informal markets that is endemic in Latin American businesses and society. The Brazilian expression “jeitinho”, for example, is usually associated with working around the rules by leveraging personal connections and favors to get things done. Thus, the challenge going forward for Brazil as it steps onto the world’s stage, will be how to transition to a more formal economy that will be increasingly trusted and respected by her growing number of trading partners from abroad.
As the US and European economies face an uncertain future, more and more companies in those areas are looking to emerging countries for international expansion. Brazil in particular has been in the spotlight for its recent rapid growth and its leading industrial players such as Petrobras and Embraer, but behind all that there has been shrewd strategic thinking from its institutions and businesses. So here are two main lessons, albeit with more of an agribusiness slant, that we can learn from Brazil:
1. Invest in sustainable growth. Embrapa, the Brazilian Agricultural Research Corporation, has played a key role to convert Brazil’s once unproductive soil into the source of some of the world’s most productive farmland. They have done this by painstakingly adding nutrients to the soil to improve productivity, leveraging genetics to produce grasslands for their cattle, and adapting foreign crops to their local environment. Their model has been so successful that they have already surpassed the agricultural output of other Latin American countries and are a closing in on American production of crops such as soybeans.
2. Strengthen your base and reach out. According to the Yale Center for the Study of Globalization, Brazil has turned into the only Latin American net foreign investor because of the convergence of political stability, market oriented reforms, and macroeconomic soundness. This environment has increased competitiveness among Brazilian companies, which are now looking outside their territory to expand. A few examples include Brazilian company JBS, which acquired the US Beef production division of Smithfield Farms in 2008 and the poultry producer Pilgrim’s Pride in 2009, making it the world’s largest meat producer; Brasil Foods, the merger of Sadia and Perdigao, hold equal or bigger market capitalization than US-based Tyson and Hormel Foods, and the purchase of Burger King at a 46% premium by the Brazilian investment firm 3G Capital show Brazilian businesses flexing their economic muscles.
But running counter to real innovation and scalable business growth is a culture of informal markets that is endemic in Latin American businesses and society. The Brazilian expression “jeitinho”, for example, is usually associated with working around the rules by leveraging personal connections and favors to get things done. Thus, the challenge going forward for Brazil as it steps onto the world’s stage, will be how to transition to a more formal economy that will be increasingly trusted and respected by her growing number of trading partners from abroad.
Tuesday, September 7, 2010
NCSU Poultry Science Department Head Weighs in on the Future of Poultry
For this week’s blog, we interviewed Dr. Sam Pardue, head of the Poultry Science Department at NC State University. Dr. Pardue shared with us his insights on the challenges faced by the modern poultry industry and how academia might be able to help meet those challenges now and in the future.
BRI Blog: What do you see are the challenges for the poultry industry?
First, increasing output under high cost pressure. By 2030 we have to double the amount of food we produce for an ever growing world population, and poultry is at the top of the list as a protein source given its low cost and high quality relative to other livestock such as swine and cattle. At the same time, the industry will face increasing pressure on cost. According to the agricultural statistics firm Agristats, feed costs have increased from 51% of farmers’ input costs in 2000 to 62% in 2009 and the costs continue to rise as a result of increasing demand for feedstuffs.
Second, given this situation, there is going to be an increased pressure to use non-traditional feedstuffs to decrease costs. As conventional feedstuffs such as corn and soybean increase in price, other alternative feedstuffs will be used and enzymes will play an increasingly important role to maximize the nutritional value of these feedstuffs. Also, sooner or later producers will have to rethink the formula that least cost formulation equals maximal profit, and that finding creative ways to extend their brands to the grocer’s shelves can also maximize profit.
Third, poultry companies will have to make greater effort on their public relations. The recent salmonella outbreak is just one example of how a few bad players can harm an entire industry. Not so long ago events like this caused bankruptcies in the beef industry. Producers will need to invest in more traceability in their supply chains while also educating consumers that organic farming is not the answer to meet the global demands for poultry production. Nowadays, consumers are not only interested about price, but also on the quality and safety of the products they consume. The industry cannot close their doors to more alternatives, but it also has to tell consumers why their products are safe.
BRI Blog: What do you see is the role of academia given these challenges?
We have to convince the best and brightest students that there is a career in agriculture and that they could have a fulfilling experience in the industry. However, as a result of shrinking budgets and smaller class sizes, few of our fellow academic units have been able to survive as independent departments. In the 1960s there were forty independent departments of poultry science in the US, now there are only six. In the past, every industrial farm complex had a scientist on staff; now because of integration and better communications, there are fewer of those positions in these large companies. Regardless of industry trends, it is the responsibility of academia to train future industry leaders and to do research that will drive innovation in the future of the industry.
BRI Blog: What do you see are the challenges for the poultry industry?
First, increasing output under high cost pressure. By 2030 we have to double the amount of food we produce for an ever growing world population, and poultry is at the top of the list as a protein source given its low cost and high quality relative to other livestock such as swine and cattle. At the same time, the industry will face increasing pressure on cost. According to the agricultural statistics firm Agristats, feed costs have increased from 51% of farmers’ input costs in 2000 to 62% in 2009 and the costs continue to rise as a result of increasing demand for feedstuffs.
Second, given this situation, there is going to be an increased pressure to use non-traditional feedstuffs to decrease costs. As conventional feedstuffs such as corn and soybean increase in price, other alternative feedstuffs will be used and enzymes will play an increasingly important role to maximize the nutritional value of these feedstuffs. Also, sooner or later producers will have to rethink the formula that least cost formulation equals maximal profit, and that finding creative ways to extend their brands to the grocer’s shelves can also maximize profit.
Third, poultry companies will have to make greater effort on their public relations. The recent salmonella outbreak is just one example of how a few bad players can harm an entire industry. Not so long ago events like this caused bankruptcies in the beef industry. Producers will need to invest in more traceability in their supply chains while also educating consumers that organic farming is not the answer to meet the global demands for poultry production. Nowadays, consumers are not only interested about price, but also on the quality and safety of the products they consume. The industry cannot close their doors to more alternatives, but it also has to tell consumers why their products are safe.
BRI Blog: What do you see is the role of academia given these challenges?
We have to convince the best and brightest students that there is a career in agriculture and that they could have a fulfilling experience in the industry. However, as a result of shrinking budgets and smaller class sizes, few of our fellow academic units have been able to survive as independent departments. In the 1960s there were forty independent departments of poultry science in the US, now there are only six. In the past, every industrial farm complex had a scientist on staff; now because of integration and better communications, there are fewer of those positions in these large companies. Regardless of industry trends, it is the responsibility of academia to train future industry leaders and to do research that will drive innovation in the future of the industry.
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