INSTITUTE OF MASTERS OF WINE SYMPOSIUM 2018, LOGRONO SPAIN

CURATING AN
ADAPTIVE WINE BUSINESS
TODAYS SESSION
▸ Strong organisations are deeply reflective. They know their
mission and core values. This allows them to adapt and
make choices efficiently as the environment changes

▸ Forces of Change
▸ The Nature of Change
▸ Ways Forward
INSTITUTE OF MASTERS OF WINE SYMPOSIUM 2018, LOGRONO SPAIN

FORCES OF CHANGE
1. WHAT HAPPENED TO TAYLOR SWIFT’S
ONLINE COMPETITION FOR HER PLAY AT
YOUR SCHOOL …
a) It broke the internet

b) It was hacked by stalkers

c) Who is Taylor Swift and what does her wine taste like?

d) It was won by a school for the deaf

2. BY 2020, 213 MILLION OF THESE WILL BE
SOLD..
a) Rolling Stone Albums

b) Wearables

c) Fidget Spinners

d) “Oprah for President” Caps

3. THE CARNEGIE INSTITUTE HAS
DETERMINED WHAT % OF YOUR FINANCIAL
SUCCESS IS DUE TO YOUR TECHNICAL
KNOWLEDGE
a) Its about 80%

b) Its about 50%

c) Its about 25% ( if in doubt pick C in multiple choice)

d) It is less than 25% ( that’s disturbing)

4. WHICH OF THESE WILL
YIELD YOUR ORGANISATION
THE BEST OPERATING
PROFIT …
a) A 1% increase in price

b) A 1% increase in volume

c) A 1% decrease in fixed costs

d) A 1% decrease in variable costs

4. WHICH OF THESE WILL YIELD YOUR
ORGANISATION THE BEST OPERATING
PROFIT …
10
Impact on Operating Profit of a 1% Shift In …
9

4 8.7
3
5.9
2

2.8
1
1.8
0

Price Variable Cost Volume Fixed Cost

5. WHICH OF THESE WOULD GIVES
YOU THE BEST RETURN ON A $1000
INVESTMENT IN JANUARY 2010
a) Apple

b) Netflix

c) Domino’s Pizza

d) Amazon
6. IWSR ESTIMATES GLOBAL WINE
MARKET VALUES AT $224B IN 2021.
HOW BIG WILL CHINA & THE US BE …
a) $23b and $45b respectively

b) $45b and $23b respectively

c) Depends on Trump and the nuclear arsenals.

d) Similar sized – about $34b each.

7. WHAT
IS
HAPPEN
ING
HERE ?
8. WHICH OF THESE IS NOT IN THE 3 TOP
“REQUIRED” SKILLS IDENTIFIED BY THE
WORLD ECONOMIC FORUM FOR 2020
a) Complex problem solving

b) Critical thinking

c) Creativity

d) Emotional Intelligence
INSTITUTE OF MASTERS OF WINE SYMPOSIUM 2018, LOGRONO SPAIN

THE NATURE OF CHANGE

FIAT DODGE DART PORSCHE CAYENNE
2012 – 2016. LAUNCHED OVER A DECADE
AGO.
NEW PRODUCTION FACILITIES
RADICAL DEPARTURE IN
BIG ADVERTISING BUDGET DESIGN.

NOW DEFUNCT. NOW 50% OF PORSCHE PROFIT

THE SIGMOID CURVE
LONDON
TUBE MAP
1932
LONDON
TUBE MAP
1933
INSTITUTE OF MASTERS OF WINE SYMPOSIUM 2018, LOGRONO SPAIN

WAYS FORWARD
CAN
TECHNOLOGY
WORK BESIDE
US TO BUILD
NEW
EXPERIENCE
CAN WE
RETHINK WHAT
OUR VINEYARD
ASSETS MIGHT
REALLY BE
ABLE TO
OFFER?
CAN WE RESET OUR CONSUMER MODELS TO
BETTER COMMUNICATE ….
CAN WE RESET OUR
ORGANSISATION?
• NEW STRUCTURE
• LIVED VISION
• EMBRACING NEW
MODELS OF
WORKING
CAN WE RESET OUR
ORGANSISATION?
• NEW STRUCTURE
• LIVED VISION
• EMBRACING NEW
MODELS OF
WORKING
CAN WE RESET OUR
ORGANSISATION?
• NEW STRUCTURE
• LIVED VISION
• EMBRACING NEW
MODELS OF
WORKING
CAN WE RESET OUR
ORGANSISATION?
• NEW STRUCTURE
• LIVED VISION
• EMBRACING NEW
MODELS OF
WORKING
YOUR ORGANISATION
▸ When did you last have a real review about what drives your
team?

▸ How aligned is your team really?

▸ What role can you play to reset for change, resilience and
adaptablity.
WHAT MIGHT A “BEST IN CLASS”
ADAPTIVE WINERY BRAND LOOK LIKE ?

▸ They price with significant planning and care

▸ They can define their brands role for a retailer in the category or restaurant or store

▸ They are constantly learning and sharing about its existing and potential customers.
Even better if you talk to those that left.

▸ They celebrate experience above all. They Invite their customers into their “community’.
They do it in an easy digitally savvy way. They probably do the same type of thing with
their retailer partners
WHAT MIGHT A “BEST IN CLASS”
ADAPTIVE WINE BUSINESS LOOK LIKE?

▸ They have a flat organisational model

▸ They have a set of core values and mission that as large a pool of staff as possible have
created and identify with. It’s honoured in decision making.

▸ Teams work on issues and projects rather than functions

▸ Teams are led with intellectual humility, care and encouragement. Failure is celebrated.

▸ Individuals are rewarded directly in line with the core values and mission
“Change management would not be the industry it
is if organizations were changing. Change
management is huge precisely because
organizations are not fundamentally changing”

Zuboff, S. & Maxmin, J. (2002) The Support Economy: Why Corporations are Failing
Individuals and the Next Episode of Capitalism. New York: Allen Lane, p.21.
 Web | michaelwaltonconsulting.com
Email | michael@michaelwaltonconsulting.com
WH GORE
▸ Everyone should know everyone
▸ Anyone can talk directly with anyone
▸ Project-based. Not functional
▸ Teams decide bonuses based on contributions – past,
present and future
SEMCO
▸ Extreme internal democracy
▸ Dynamic, open and changeable
LINCOLN ELECTRIC
▸ Major focus on “social capital”
▸ Special focus on trust.
WISETECH
▸ Core values and mission
▸ Enshrined in key “slogans” for testing behaviour and choices
internally
REFERENCES:
▸ World Economic Forum | The Future of Jobs 2016

▸ Charles Handy | The Second Curve 2016

▸ Zawada et al | The Price Advantage

▸ Also :

▸ IWSR, IDC , Carnegie Institute, Forbes, Vincast

FRAGMENTED FRAGMENTED
SMALL DEMOGRAPHICS MORE DEMOGRAPHICS
OLD & NEW
LOW TECH HIGH TECH
SIMPLE MARKETS COMPLEX MARKETS
SIMPLE MARKETING & COMPLEX MARKETING
ALONE PARTNERED
ONE WAY MANY WAYS AT ONCE
SIMPLE CAREERS DYNAMIC CAREERS
EXPERIENCE MATTERS EXPERIENCE MATTERS
THE QUIZ

CONSUMER CONFIDENCE

▸ Who has the highest level of consumer confidence?

A. New Zealand

B. United States

C. United Kingdom

D. Australia
5 COUNTRY CONSUMER SNAPSHOT
CONSUMER % SAY POSITVE % SAY A GOOD TREND
CONFIDENCE ABOUT THEIR FINANCES TIME TO BUY
THINGS
AUSTRALIA 91 51 42 ➡
NEW ZEALAND 103 58 48 ⬆
UNITED 102 53 53 ➡
KINGDOM
UNITED STATES 123 70 63 ⬆
CHINA 108 61 51 ➡
THE QUIZ

WHAT HAPPENS NEXT. US RETAIL STORE CLOSURES …

A. Trend continues –
less store closures

B. Trend Stops –
Closures at 2015
levels

C. Trend Reverses –
Back to Historically
High Levels of
4500-600 stores

D. Something Much
Worse
THE QUIZ

WHAT HAPPENS NEXT. US RETAIL STORE CLOSURES …

 WHAT IS HAPPENING HERE?

A. An old man has forgotten his name and why he came

here

B. One woman is working the right time to say she slept

with her friends husband

C. They are all eating in a supermarket

D. They are at the local cafe

UNITED STATES
▸ Consumer Confidence strong

▸ Significant retail disruption - both online & bricks & mortar

▸ Wine growth over 4%

▸ Rose, Prosecco, Sauvignon Blanc fastest growing varietals.

▸ NZ the largest driver of Sauvignon Blanc & the largest growth driver in imported wines (+15%)

▸ NZ average price premium is 38% ( $11.28 to 8.15)

FRAGMENTED FRAGMENTED
SMALL DEMOGRAPHICS MORE DEMOGRAPHICS
OLD & NEW
LOW TECH HIGH TECH
SIMPLE MARKETS COMPLEX MARKETS
SIMPLE MARKETING & COMPLEX MARKETING
ALONE PARTNERED
ONE WAY MANY WAYS AT ONCE
SIMPLE CAREERS DYNAMIC CAREERS
EXPERIENCE MATTERS EXPERIENCE MATTERS