I tend to read a few publications that are reliable and deliver compelling and accurate information on the Cannabis industry. According to a recent article in “Cannabis Management Review” there are 3 priorities C-level executives in the Cannabis industry should be focusing on as we move into 2024. With the current operational environment facing margin compression, slower growth in older markets, and limited access to capital, CEO’s and other C-level executives need to be focused on the following.
1 – Clarify value proposition
CEOs of a Cannabis companies need to clarify the what, why and where they compete and how to deliver their value proposition. Any analysis should include a ‘build vs buy’ decision to take advantage of outsourcing opportunities.
2 – Examine and reevaluate corporate culture
Cannabis Company CEOs need to examine their corporate culture to reveal flawed cultures that result in high turnover, recruiting problems, and poor brand reputations. Flawed cultures also uncover issues of low productivity and innovation. CEOs must consistently model desired behaviors and make the necessary fixes to the organizational design and operating practices. Addressing deep issues may also require sustained change management activities and leadership swaps.
3 – Revenue management
Maximizing available revenue is a prerequisite to enhancing margins. This is a two-part effort. First, look for ways to reduce revenue leakages such as unauthorized discounting or clients short-paying invoices. Moreover, find opportunities to raise prices where pricing does not align with your delivered value proposition or competitiveness. Part two is about maximizing cash flow through improved credit policies, faster AR collections and better inventory management. Implementing these ‘blocking and tackling’ practices can no longer be deferred.
Conclusion
Yes, companies have additional or other mission-critical needs. However, plenty of research shows that firms cannot execute well on more than 3 priorities given day-to-day immediate demands.
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