Morrison Fall 2022 Newsletter

SOFTWARE TRANSITIONS: A FACT OF BUSINESS LIFE

Morrison Principals Brent Morrison and Ana Klein discuss the challenges of software transitions and how they can impact your business.

CORTO OLIVE:

INNOVATION AND A FRESH START

Rooted in Italian heritage, Corto Olive Company has produced high quality, fresh, extra virgin olive oil (EVOO) since 2005. Made exclusively from California-grown olives, the oil is expertly crafted by the company’s master miller to achieve a bright flavor profile that professional chefs have relied on for more than a decade.

Corto Olive Company was founded by Dino Cortopassi, a well-known fixture in California food and agribusiness. Born to Italian immigrants in 1937 in Stockton, California, Cortopassi passed away in February 2022, confident in the strong family-oriented organization he had built.

Calabrian Chili and Yuzu Citrus, created by crushing and cold-extracting fall harvested olives simultaneously with fresh seasonal ingredients. And for foodies and the truly adventurous, Corto offers regular virtual online educational tasting experiences. Reserve your spot and you’ll receive a tasting kit and instructions shortly before your scheduled guided tasting experience.

GETTING TO KNOW JEFF BOIAN

Learn more about Jeff Boian, Morrison’s People Solutions Manager.

Similar to great wines, different olive varietals bring their own distinct flavor characteristics to olive oil. Corto’s master miller balances the art and science of olive oil crafting to create exceptional products. The time and care taken evaluating, measuring, and tasting each batch ensures that consumers, chefs, and restaurateurs can count on fresh and distinctively flavorful oils.

Dino Cortopassi was heavily influenced by his Italian heritage, including a love for agriculture, food, and olive oil. His success was not without challenges; after graduating from Stockton High School in 1954 on a vocational track, Cortopassi contracted rheumatic fever, damaging his heart. He was warned to “go lightly” by his doctor, but that wasn’t in his nature and he subsequently suffered a mild heart attack. When doctors told him he must slow down his physical activity or risk his life, he took the advice of his future father-in-law and enrolled in the agriculture program at University of California, Davis.

After graduating in 1958, Cortopassi began farming with a modest, rented 65-acre

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There is always something new happening so catch up on the latest news from our clients and colleagues.

Corto is known for its fresh and innovative products. Their TRULY® 100% EVOO is made from olives harvested in their prime, cold-extracted, then sealed in unique oxygen-free packaging to maintain freshness. Their La Padella® Sauté Oil is a blend crafted for high-heat sautéing without compromising the olive oil flavor. Combining olive, rice bran, avocado, and grapeseed oils, La Padella® is made to take the heat. Corto’s Argumato-Method Box Set offers two seasoned olive oils,

Amerigo Cortopassi, age 19, working in the artichoke fields. 1920s, Santa Cruz, CA

SOFTWARE TRANSITIONS:

A FACT OF BUSINESS LIFE

Business software transitions are about as old as business software itself. Companies and the environments in which they operate change, as do the options available, leading to inevitable changes in systems. However, we have recently observed an uptick in the number of organizations that are considering or transitioning to other software options.

Members of the Morrison team have worked with software transitions going back to the early and mid-1980s when many companies were making their first move from all paper accounting. Some were installing computers for the first time. And while a lot has changed, there have been a number of constants that should be considered in making a smooth and effective transition.

DRIVERS:

We see a number of reasons for the growth in software transitions, but an informal survey of clients and others indicate a few key drivers:

1. OBSOLESCENCE. Unlike fine wine, software does not age well. Software obsolescence comes faster than it once did, with frequent upgrades and options geared at specific needs. Let’s face it: typewriters didn’t change much after the invention of the electric machine, nor did pen and paper, but software and cloud options do. We ran across an article suggesting that software programming experience and education has a half-life of about three years; we’d guess it’s even shorter for software. That’s not to say that if you’ve used XYZ software for three years it’s time to change, but you should make sure that it’s a system that is continuously upgraded and improved by the provider.

2. MINIMAL OR NO SUPPORT. This can go hand in hand with obsolescence. As a program gets older the availability of support may decline or the version you are using may be simply discontinued. It may be straightforward to upgrade to the next version, but in other cases the changes can be so radical that for all practical purposes it is a completely different program.

3. EASE OF USE. Ease of use can be underlooked as a consideration when choosing software, and to be fair, some ease of use issues may not be obvious until you actually use it. We see software that has functions that sounded good when selected, but in practice proved not to be intuitive or to be clumsy to use. This may lead to underutilization of certain capabilities, or a cumbersome collection of software add-ins and other work-arounds.

4. LACK OF KEY CAPABILITIES. Perhaps the most common reason we hear for a software transition is a lack of key capabilities. For example, we work with many companies that process, assemble, or manufacture CPGs (consumer packaged goods) or other finished products, so tracking of inputs, work in process, spoilage, finished goods, etc., is critical. It is not uncommon for new or small businesses to start with QuickBooks, which is well-supported and user friendly. However, companies with critical manufacturing/processing costing needs may find themselves using workarounds or simply lacking key information. We know of companies that have hung onto software well past its suitability, but a breaking point will come if not addressed.

INDICATORS:

Most businesses look forward to a software transition about as much as a root canal, and understandably. The current situation may be painful, but they fear that the process will be excruciating, time consuming, and costly. It’s

common to ignore or put off the possibility of a change, but there are indicators (think of them as “symptoms”) that companies should look out for:

1. KEY INFORMATION NOT AVAILABLE. Information you need to guide critical decisions may simply be unavailable through your system, which ties back to what we often see in regard to lack of costing capabilities. Check first to be certain that the function you need is truly absent before going to add-ons or other work-arounds. We have seen cases where a function was available, but the organization was simply not aware of it and went on to implement unnecessary add-ons.

2. UNTIMELY INFORMATION. Information for decision making purposes is best served fresh. If a process is too cumbersome and time-consuming, it may be stale at best, and possibly worthless. If this is an ongoing issue, it’s time to look at options.

3. USE OF MULTIPLE ADD-ONS. Some addons are almost inevitable, for example to meet certain industry-specific needs. But if it’s beginning to look like Frankenstein’s ERP, with countless limbs and appendages bolted on to make things work, it’s time to reconsider.

4. EXCEL-ERATING. This is what we dub the stampeding creation of uncontrolled Excel workarounds by needy users. We see this when users, desperate for information, create their own Excel models simply because they know how and see no other options. Two or more people may try to create the same information, and will almost inevitably come up with different results.

There are more, but if you see any of these indicators in your organization, it is time to take a hard look at your systems.

QUICK WARNING SIGNS:

A detailed evaluation is necessary before choosing new software, but there are key signs that are relatively quick and simple to determine before taking the dive into the details. They include:

1. LOW NUMBER OF INSTALLATIONS. We have worked with organizations using software that has fewer than a hundred installations worldwide. Frankly, it may not be a whole lot more comforting if they have only a few thousand. The software may be fine to start with, but it will often be underdeveloped due to low user input and because the size and income of the software company isn’t sufficient to provide adequate ongoing support or development. Smaller companies are also more vulnerable to economic downturns and other issues. Let’s face it: SAP, NetSuite (Oracle), and Microsoft Dynamics aren’t going anywhere, and if they do another software giant would snatch them up and life would go on.

2. SPECIALIZED SOFTWARE. Be careful when considering very industry-specific software. We have seen software specific to certain crops, to home delivery of farm products, and other niches. No doubt those businesses have their needs, but something that specialized is likely to have a small number of installations, and the providers will be vulnerable to anything that negatively impacts their industry niche.

3. SCALABILITY. It’s one thing to outgrow QuickBooks; most businesses past the Ma and Pa stage will get there at some point. It’s another thing to outgrow Sage. Unless you don’t think you’ll look much different over the next 10 years, make sure anything you consider can adapt with you to a reasonable extent. Software conversions can be necessary, but like a root canal, don’t plan to do more than you need to.

HOW TO APPROACH:

There is an old joke that there are six phases of a major project: 1) Wild enthusiasm; 2) Total confusion; 3) Fear and uncertainty; 4) Search for the guilty; 5) Punishment of the innocent, and; 6) Promotion of the uninvolved.

There can be tinges of this in a software conversion, but a well-planned approach can avoid the worst of it. There is a lot more to it than can be summed up in one short article, but following are some key steps:

1. GET THE RIGHT HELP. The software provider may offer resources, but for many situations you’ll need a good software tech firm specializing in the software you are transitioning to (and hopefully from). For the record, this is not Morrison and we are not a tech consultancy, but we can provide needed assistance as detailed below. We’ve seen companies try to stumble through transitions on their own, and it can be a bigger climb than anticipated. The right consultancy should be able to tailor their services to your needs.

2. START WITH A DETAILED ASSESSMENT OF YOUR NEEDS. This may seem obvious, but the best approach involves working with all user levels. It is a mistake to rely solely on executives, division heads, or managers. This is necessary for the big picture, but get direct feedback from users at all levels.

3. GET USER SUPPORT. This relates to the point above, but work to get the support of users at all levels. We have seen elements of transitions fail because the users weren’t sold in the first place.

4. PLAN, PLAN, PLAN—AND TAKE YOUR TIME. This means the transition may take longer than you’d like but it is critical to get it right. You wouldn’t rush a heart transplant, and an ERP conversion can be the business equivalent. We are aware of a major ERP transition for which the company was given only a few months; the old system was being unplugged on a set date and there was no moving it. Predictably, it was a fiasco. The issues were resolved over time and it was successful in the long-term, but years of challenges could have been avoided with better planning and transition time.

We can assist in interviewing users to determine their practical needs and concerns, assess reporting cycles (e.g., sales, expenses), identify audit points, determine lack of segregation of duties, and assist with other matters that could hamper a successful transition. We can help review the internal controls and procedures currently in place to avoid transferring less-than-ideal practices to a new system.

Clean-up and preparation is key, but there is often not enough internal staff availability to handle that along with everything else. We can help with both the planning and the day-to-day activities to avoid unnecessary disruptions.

You wouldn’t climb Mount Everest without a guide, and we can serve in that capacity in software transitions. A software transition can have a great impact on a company’s future. Make sure you plan and execute accordingly.

ABOUT THE AUTHORS

HOW MORRISON CAN

HELP: Morrison is not a software tech firm but a successful transition is also driven by an understanding of the needs of an organization compared to the options. We can assist in discussions with software providers to plan both the technical and practical help needed based on our work with the organization and experience with other transitions.

Brent Morrison and Ana Klein are principals at Morrison. Brent Morrison is Morrison’s founder and oversees strategy and implementation, practice development, infrastructure development, and both serves and oversees services to Morrison clients. Ana Klein oversees the Business & Accounting Advisory team, serving clients in industries including food, agribusiness, trade associations, manufacturing and processing, distribution, and the non-profit sector. Ana also oversees practice development for the B&A practice, including long-term strategy, identifying and implementing service options, training, implementation of appropriate technologies, and business growth. To get in touch with Brent or Ana visit www.morrisonco.net/contact.

parcel. That has grown to 7,000 acres today, with multiple partners, growing oil olives and other crops. Corto also contracts with outside growers to meet demand for its quality products, and is currently looking to contract an additional 3,000 to 4,000 acres of new or existing oil olives for its growing needs.

Honoring Dino Cortopassi‘s legacy, quality is the driving force at Corto. Using only top quality olive varieties grown for this purpose, Corto harvests their olives at peak freshness when they are green, with just a hint of violet. The oil is cold-extracted in their state-ofthe-art mill within 24 hours of harvest. By contrast, many imported olive oils use overripe fruit that lack the fresh flavor of Corto’s premium oils. The olive pomace byproduct of olive oil production (the skins and pits remaining after the oil is extracted) is repurposed as animal feed.

In addition to great taste, environmental sustainability is an important motivator at Corto. Their products are available in two sustainable packaging formats: 500 ml recyclable glass bottles and their FlavorLock™

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box. In addition to ensuring freshness and reducing quality degradation from light, air, and heat exposure, FlavorLock™ boxes have a significantly lower carbon footprint.

It is interesting to note that olives are an incredibly sustainable crop by their nature. They require very little water in comparison to many other tree crops. Additionally, olives sequester carbon, which refers to the capturing, removal, and storing of carbon dioxide from the atmosphere. According to the International Olive Council, the worldwide production of olive oil absorbs the amount of carbon produced by 20 million vehicles annually.

Corto further reduces carbon emissions by powering its mill with solar energy. Solar accounts for 100% of the mill’s energy usage in the summer months and 70% throughout the year. The company is also committed to conserving water, one of California’s most endangered resources. Moisture monitors and 100% drip irrigation are used to ensure that water is used as efficiently as possible. Corto’s oil olives

Amerigo showing young Dino the ropes on being a farmer. 1942, Lodi, CA

are grown in Super-High Density groves (approximately 680 trees per acre), further improving water efficiency. On average, Corto’s Super-High Density olives use 66% less water than leading California tree crops. Water used in the mill is recirculated to irrigate cover crops, which saves water and helps amend the soil and keep it healthy.

Morrison has been privileged to serve Corto Olive Company with interim fractional controller services and executive recruiting. We are always honored to work alongside innovative family-owned companies like Corto Olive Company.

CLIMATE-SMART CLIENTS

Pictured with Elevated Foods CEO Steve Brazeel (left) and USDA Undersecretary Robert Bonnie (right), Managing Principal, Toni Scott, joined our client Elevated Foods to celebrate the announcement of their $20 million grant award. Toni and the Morrison team worked with several clients to submit applications under the USDA Climate Smart Partnerships Program. A total of $170 million has been awarded to Morrison clients thus far, with further announcements pending. Great job to the Morrison team, and congratulations to Elevated Foods. We can’t wait to see your project unfold!

PRESENTS ANA KLEIN Morrison Principal, Ana Klein, presented to Chico Noon Rotary on her life and career with Sunsweet. Leading up from her upbringing as the daughter of farm workers, Ana became the youngest and first female CFO in Sunsweet history and later oversaw Sunsweet’s Chilean operations. We’re thrilled to have Ana as our principal overseeing the Business & Accounting Advisory practice line, and are so grateful for her leadership and vision at Morrison.

ROTARY

SPITFIRE GRILL

Morrison’s very own Regan Penning put on a great show at the Chico Theater Company as Shelby, the kind and generous friend who helps out in the musical “Spitfire Grill.” To support Regan, the team showed up in full force to cheer Regan on during her spectacular performance. She acts, she sings, she writes grants, what can’t she do? Great job Regan, we loved your show!

TEE UP AT TOPGOLF!

The Morrison team loves to celebrate together, especially when it comes to birthdays. Celebrating all our June birthday babies, the team headed to TopGolf, where we enjoyed a bit of friendly competition and pranked Toni with our Hawaiian shirts (ask her how she feels about Hawaiian shirts). Happy birthday to Mayra, Daniel, Ann, and Michelle!

GETTING TO KNOW JEFF BOIAN

Jeff Boian manages Morrison’s People Solutions practice area, serving clients in industries including agribusiness, manufacturing and processing, distribution, and non-profit. Focusing on executive recruiting, organizational development, outsourced and interim human resources management, and human resources advisement, Jeff’s expertise includes organizational leadership, career strategy, leadership training, and professional development.

Prior to Morrison, Jeff served as Vice President, Education & Professional Development, for California & Nevada Credit Union Leagues. In that role he led the overall planning, development, budgeting, and execution of select strategy, programming, and initiatives for over 230 credit unions in California and Nevada. He previously served as Associate Director for Career Strategy for the Drucker School of Management at Claremont Graduate University, and in multiple leadership roles at Azusa Pacific University.

Jeff holds a master of arts degree in organizational leadership from Azusa Pacific College and is a member of the Society for Human Resource Management. Additionally, he holds graduate certificates in Organizational Development & Change and Career & Life Planning, among others. Jeff is a Myers-Briggs Type Indicator Certified Practitioner, a Certified Master of Career Services by the National Career Development Association, and holds a certificate in Strengths Based Leadership and Management from Noel Academy. He previously had his own consulting practice focused on organizational development.

Q&A WITH JEFF

WHAT WOULD BE ON THE GAG REEL OF YOUR LIFE?

Jokes. Lots of bad dad jokes.

WHAT IS YOUR FAVORITE BOOK AND WHY?

Prayer and the Art of Volkswagen Maintenance—it inspired me to buy a hunk-of-junk VW bus in college and drive around the country, looking for places I could help in whatever capacity was needed.

IF YOU COULD TIME TRAVEL, WHEN WOULD YOU GO?

My day of birth. That would be so meta to be there on the day I was born. I mean, I was there, but to be there twice?! Whoa. Mind blowing.

WHAT IS THE BEST PIECE OF ADVICE YOU’VE RECEIVED?

If someone asks you to do something that you’ve never done before, say yes … and figure it out.

WHEN YOU’RE HAVING A BAD DAY, WHAT DO YOU DO TO MAKE YOURSELF FEEL BETTER?

If it’s possible, I like to go for a long walk or a run or ride my bike for a while. Just to get outside and clear my mind. I also enjoy talking with my wife about what made the day challenging. Talking it out always seems to help make things better.

WHAT’S YOUR FAVORITE FOOD AND WHY?

Mango. And Rice Cakes. Especially Lundberg Family Farms Rice Cakes. Growing up, my family said that they thought they tasted like cardboard. I loved them then and love them even more now.

WHAT’S YOUR FAVORITE CHILDHOOD BOOK?

Good Night Moon.

CLIENT

The Morrison Client Corner is a regular feature of our newsletter. Here, you’ll find updates on what a number of our clients are up to, their achievements and milestones, and the generally great things happening in their companies or organizations.

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If you’re a client of ours, we’d love to stay up to date with what is going on within your organization and invite you to share your highlights in this space. Feel free to send any press releases, newsletters, or happenings to Michelle at mgenova@morrisonco.net.

FARMERS BREWING TAPROOM OPENS

Morrison client Farmers Brewing Co. recently opened the doors to their newly built Restaurant and Taproom in Chico California. Morrison was delighted to be an early guest of the restaurant and thoroughly enjoyed Crazy Nachos, burgers, and of course beer! An extension of their original taproom in their brewery in Princeton, CA, the Chico Taproom prominently features an incredible outdoor seating area, a retail shop, and over 40 beer taps. We are delighted at the success of Farmers Brewing’s new venture, and the team is all too excited to enjoy many more lunches on the patio.

PACIFIC COAST PRODUCERS WELCOMES MATT STRONG AS NEW CEO

Pacific Coast Producers recently named Matt Strong as its CEO. Matt previously served Pacific Coast Producers in positions including VP of Finance & CFO and VP of Foodservice & Sales. Morrison Founder and Principal Brent Morrison first met Matt when Brent was short of cash at a city parking lot. Matt, noticing the problem, chipped in $4 to cover the fee. Not knowing each other, they later found they were attending the same conference and struck up a conversation and a friendship. Needless to say, we are ecstatic for Pacific Coast Producers as they could not have found a better leader than Matt.

SECRETARY ROSS CONGRATULATES SONOMA COUNTY’S LEADERSHIP GRADUATES

In early 2022, the Sonoma County Grape Growers Foundation launched a leadership academy for vineyard employees and recently produced their first class of graduates! Recognized by California Department of Food and Agriculture Secretary, Karen Ross, the fifteen graduates attended eight half-day classes and two field trips designed to enhance their leadership skills. These courses included topics covering HR, communications, conflict resolution, financial literacy, wine production, and much more. The graduates are primed to lead the wine industry forward, and we look forward to seeing this program continue to produce quality leaders for the California Wine Industry.