IN THIS ISSUE:
PLEASANT VALLEY FARMS EGGS-ACTLY THE BEST
DEFINE RISK BEFORE PIVOTING YOUR BUSINESS Founder & Principal Brent Morrison offers insight on defining risk with your team before pivoting your business.
No one knows who first asked that age-old
It doesn’t end there. Pleasant Valley Farms
question: “Which came first, the chicken
is
or the egg?” A quick Internet search
Farm Animal Care, a 501(c)(3) nonprofit
offers endless answers ranging from the
organization that is dedicated to improving
scientifically serious to punchlines. But
the lives of farm animals and expanding
for family-owned Pleasant Valley Farms
consumer awareness of humane farming
in Farmington, California, the answer is
practices. The Certified Humane® seal on
easy: Their chickens come first.
every carton assures consumers that the
Pleasant Valley Farms traces its roots back to 1962, when the family began supplying
MORRISON SNAPSHOTS
high
quality
eggs
to
surrounding
“Certified
Humane®”
by
Humane
company meets objective standards for the treatment of their birds. Pleasant
Valley
Farms’
eggs
are
also
Valley
California Shell Egg Food Safety Compliant
Check out some of our highlights from this
and retail stores throughout Northern
(“CA SEFS Compliant”), meaning the eggs
past season.
California. In 2005, the second generation
have gone through measures to reduce the
of the family acquired the company and
risk of salmonella that requires testing,
established what is now Pleasant Valley
vaccination, and a minimum amount of
Farms. Since that time, the company has
space per bird.
communities
in
the
Central
earned its reputation as a reliable, farm direct source of top quality eggs, selling through wholesale, direct store delivery (DSD), and warehouse delivery channels.
REFLECTING ON 20 YEARS Founder & Principal Brent Morrison shares his thoughts as Morrison celebrates 20 years.
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year. Pleasant Valley Farms is well ahead of the curve, with their operations having been cage-free since 2014. Cage-free is
Valley Farms today is a fully integrated
defined as a controlled environment for
operation. Chicks arrive the day after
egg-laying hens in which they are free to
hatching, giving the company full control
roam unrestricted. The birds must also be
over how they are fed, nurtured, and
provided areas that allow them to engage
cared for. The company operates its own
in natural behaviors such as scratch areas,
feed mill, enabling it to ensure their
perches, nest boxes, and dust bathing
birds receive a top quality diet that is
areas. In addition, their birds for organic
free from hormones, steroids, antibiotics,
production
and animal by-products. The company
outdoor areas.
on efforts to ensure the highest quality
Get caught up with our latest client news.
100 percent cage-free by January 1 of this
With more than 500,000 birds, Pleasant
strongly believes that their caring, hands-
CLIENT CORNER
California egg farmers were required to be
feed helps maintain a healthy flock and achieve the best quality eggs for their customers.
have
year-round
access
to
The impact of the egg industry in California is notable. According to the U.S. Poultry
CONTINUED ON PAGE 4
NEWSLETTER | SPRING 2022
Risk.
BEFORE PIVOTING YOUR BUSINESS, MAKE SURE YOUR TEAM HAS THE SAME DEFINITION OF
THREE WAYS TO HAVE THE CONVER SATION ABOUT RISK BEFORE PIVOTING YOUR BUSINESS The article originally appeared in Entrepreneur. Many companies today are undergoing some kind of pivot to survive, reach consumers in a chaotic environment, or reinvent their business model in an unprecedented digital economy.
Before they can make these changes, it’s critical for business leaders and their teams to connect about what risk means to them.
HOW IS RISK DEFINITION AFFECTING SMALL BUSINESSES POST-PANDEMIC?
WHY IS IT SO IMPORTANT TO ALIGN AROUND RISK DEFINITION BEFORE YOU PIVOT?
HOW TO PIVOT A BUSINESS WELL BY ALIGNING YOUR TEAM’S DEFINITIONS OF RISK
Be aware of the difference between risk
If your team doesn’t have a good working
Begin your business pivot on sure footing by
tolerance
is
knowledge of its risk biases before it sets
getting clear about the different definitions
present in every pivot. The perception of
out, decision-making will be fraught later
and tolerances for risk in your company.
that risk will determine how a team makes
on. Imagine you are pivoting your business
decisions. Sometimes, a low-risk tolerance
to add a new product line. Some members
or differences in what constitutes “risk” can
of the team might question this suggestion,
cause leaders to make ineffective decisions
hearing risk rather than opportunity. They’ll
and might hinder them from taking action.
hear: “Should we risk our current success
and
risk
definition.
Risk
For example, if a company is considering opportunities
to
expand
operations
as
COVID-19 restrictions ease, the risk of this pivot might seem greater to the particular
for something we’ve never done with a new, unproven product line?” Others will hear: “Should we pursue this opportunity to keep ahead of the competition?”
Here are three strategies that can help you have those initial conversations: 1. START WITH A PERCEIVED CHALLENGE Rather
than
jumping
straight
to
a
solution, start by asking questions about the challenge. For example, ask “We’re doing well with our core products but losing total market share to our main
decision maker who judges current operations
It is important to know that these different
competitor; how might we proceed?”
to be going fine. To this individual, an “if it
viewpoints exist in your company before you
rather than simply stating “We need to
ain’t broke” attitude reigns. They’ll avoid
begin planning your business pivot model.
introduce new products.”
making significant changes to the business
In fact, it might be useful to have these
plan for fear of trading an adequate status
different viewpoints present, because they
This allows all participants to frame the
quo for a potentially worse one. They view
will form different questions around the new
change as inherently risky.
product line possibilities. The team member
Another decision-maker, on the other hand, might view success as temporary and believe the current situation is not an indication of future success. They will feel like standing still is just waiting to get run over. In this case, they view not changing as inherently risky and pivoting the business as the lesser of two evils.
who sees change as vital might ask about the challenges of ensuring material supply and accessing processing facilities, whereas one who is hesitant to change might be concerned instead about diverting resources from core products and dilution of the brand image. Combining these concerns allows a team to share their risk definitions and come to a plan that more comprehensively addresses potential issues.
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question and possible solutions based on their own definitions of risk. You might not be able to accommodate everyone’s individual perspective, but a better initial understanding of the issue is likely to help gain more commitment to the ultimate decision.
1. DON’T ASSUME RISK TOLERANCE IS THE PROBLEM
2. CONSIDER THE COSTS OF INACTION Inaction can feel like the safest course,
By starting with the perceived challenge,
especially
as noted above, and encouraging open
members of the team putting their point
discussion, you will get a much better feel
across. But it’s important to consider and
for how the people involved both define
quantify the risks of not acting in this
and tolerate risk. Set aside your own
climate.
biases; for example, don’t automatically assume that one who sees your preferred approach as risky is simply risk-intolerant. That presumption makes another’s point of view too easy to dismiss without considering the true drivers behind it. It has been said that disagreement is useful in the early stages of the decision process, but not after a decision has been made. Don’t insist on consensus, but if all can speak freely during the process, you will be more likely to reach understanding and
commitment
despite
differences.
This approach is known as “disagree and commit,” a process favored by Jeff Bezos and other groundbreaking business leaders.
when
there
are
risk-averse
Take Kodak Co. as one example. It was the first to invent a digital camera in the ‘70s but failed to develop the technology at the time and eventually lost out when its patent expired and the market continued growing without it. If you fail to move forward, your competitors might advance without you and leave you in the dust. The cost of inaction can be dire, but you can avoid such a fate with an in-depth analysis of the pros and cons of staying the same. It will help you flush out differences in both risk tolerance and risk definition and allow the team to move forward with transparency.
Open discussion is more likely to result in
With almost all small businesses needing to
commitment even if some disagreements
pivot in order to survive and thrive in a rapidly
remain.
shifting world, aligning your team around what risk means is vital. Risk tolerance and risk definition are both necessary conversations to have before you start planning the nuts and bolts of your business pivot.
ABOUT THE AUTHOR Founder and Principal, Brent Morrison, founded Morrison in 2002. He has served in processing, agribusiness, distribution, manufacturing, and other companies as an executive and advisor since 1981. Brent oversees Morrison strategy
and
implementation,
infrastructure development, and both provides
and
oversees
services
to
Morrison clients. He brings special expertise
in
business
planning,
strategy, management, and financial analysis. To get in touch with Brent visit www.morrisonco.net/contact.
PLEASANT VALLEY FARMS, CONTINUED
& Egg Association, California is the 10th
Californians love eggs, and Pleasant Valley
largest egg producing state. In total, they
Farms offers white, brown, cage free, and
report that the California industry accounts
organic eggs. The Association of California
for more than 10,000 jobs, over $750 million
Egg
in wages, and boasts a total economic
consume about 300 eggs per year each for
impact of approximately $3.4 billion.
all uses. One hen produces about that much
It is safe to say that Pleasant Valley Farms is in egg country. San Joaquin County,
Farmers
notes
that
Californians
per year, so California alone needs about 40 million hens to keep up.
Just as the generations before them, they
where Pleasant Valley Farms is located,
As reported by United Egg Producers, per
are committed to working hard to supply
is a top ten agricultural county in both
capita consumption of eggs in the United
superior quality eggs.
California and the United States. According
States increased 15 percent over the past
to the California Department of Food and
20 years. There was an approximately 2
Agriculture, eggs are a top five crop in the
percent decrease in consumption in 2020
county.
attributed to a decrease in production caused by COVID-19 issues (e.g., labor, supply, and distribution). With these now easing, consumption may be expected to increase.
We are privileged at Morrison to serve Pleasant Valley Farms, providing support for their accounting and management team during a period of transition. Morrison’s work began during the first months of the pandemic, so has been largely remote. While having significant remote capacity prior to the pandemic, Morrison has added
The third generation of this family farm
to its abilities to serve clients both remotely
has begun to take over daily operations
and onsite as needed. We are honored to
and is diligently sustaining Pleasant Valley
work alongside innovative family-owned
Farm’s quality and guaranteed freshness.
companies such like Pleasant Valley Farms.
M O R R I S O N SNAPSH TS
BABY BOOM
BUTTE COUNTY FARM BUREAU ANNUAL DINNER
UNIFIED WINE & GRAPE SYMPOSIUM
Several members of the Morrison team were
The Morrison Grants team attended the 2022
baby in early May. Jessica and her husband
excited to attend Butte County Farm Bureau’s
Unified Wine & Grape Symposium where
Goran are expecting their second child at the
Annual Dinner. It was great to see so many
they had an opportunity to catch up with
end of May. And, Justin and his wife Natasha
familiar faces, catch up with old friends, and
Morrison clients and industry colleagues and
are expecting their third child in July. Our
meet new ones. Extra points to Regan and
learn about new issues facing the California
team is over the moon and simply can’t wait
her husband, Carlos, for their dance moves!
grapegrowing and winemaking industry.
to meet these little ones!
The Morrison family is growing! Janae and her husband Corey are expecting their first
NEWSLETTER | SPRING 2022
REFLECTIONS ON
20 YEARS
OF MORRISON
though I had been involved in hiring at past employers. After a period of doing a few recruitments a year, I got the idea to send out email blasts seeking candidates to contacts in our Customer Relationship Management (CRM) system – and found that we had unintentionally advertised the service. The additional requests for our unique, tailored approach to recruiting led to the starting of our People Solutions practice in 2016. Our first office in 2007 was a single room, perhaps 200 square feet. We moved into the building next door a year later, where we stayed until we outgrew it in 2012. When we moved to our current location we were one of three tenants. By 2016 we were able to occupy the
Like a lot of new businesses, Morrison began in a spare room of my home. It was February 1, 2002, and it was just me (not counting two rather unhelpful cats). To be honest, I had a fairly limited vision of what I wanted to do beyond using my experience to the benefit of clients.
entire building, allowing for growth without a move. This year we will be moving across the street to 1385 Ridgewood Drive, with over 5,000 square feet. I call it a “hand truck move,” but it will give us much needed space and more prominent presence and signage.
When I left my position as Chief Financial Officer at Sunsweet Growers, though, I got an unexpected parting gift: a contract to provide 750 hours of service over the first year. I at least had the foresight not to let it make me lazy, and immediately set about building a larger client base.
As exciting as this is, our 21st year is bringing much more. We are delighted to have Ana Klein, MBA, on the team, who is joining us as a Principal in May. Ana is the long-time Vice President and CFO at Sunsweet Growers, having served for nearly 23 years. I hired Ana during my tenure there, and she has been both a professional and
I made a list of about 200 people, then sent out a dozen or so letters
personal friend since. Ana will oversee our Business & Accounting
a week and made follow up calls to those I had mailed previously.
Advisory Services (B&A) group, working closely with B&A Manager
Arguably not the most sophisticated marketing plan, but I had to stop
Dean Pritchett.
halfway through the list as I had all I could handle. Soon after, I began subcontracting with other accountants and advisors to keep up.
We are also thankful to have been joined by Jeff Boian in March, who manages our People Solutions practice. Jeff has a master’s degree in
Running the business with subcontractors became a challenge. As
organizational leadership and brings a strong background in career
most had other clients, I had limited control over their time and
development, organizational development, and leadership training.
priorities. I suspected that I needed to hire, but was slow to pull the
Jeff also had his own consulting practice for several years and brings
trigger.
solid hands-on experience.
I finally had to admit that I had hit the limit with subcontractors.
I am thankful for all our current and past employees, with 15 now
I made my first hire, Geoff Chinnock, who served with us for a
on the Morrison team in Chico and the Sacramento area. And we
wonderful 14 years. This led to many more, including now Managing
are thankful for our clients, too many to mention, but we are ever
Principal Toni Scott and Consultant Tim Peters, CPA, who both
grateful to Agromillora California, Associated General Contractors of
started in 2011.
California, Blue Diamond Growers, California Olive Ranch, Challenge
My original intent was to provide business, financial, and accounting consulting and fractional services. But, a few months after I started, I attended a conference at which I heard about a grants program I thought would benefit many of the businesses I knew. I had never
Dairy, Crystal Creamery, Gorrill Ranch, Mariani Nut, Michigan Blueberry Growers, P31 Enterprises, Pacific Coast Producers, Pleasant Valley Farms, Sun Valley Rice, Taylor Brothers Farms, and Ventura Pacific Company, among others.
written a grant, but thought I had the basic writing, analytical, and
And Sunsweet. In a very real sense I feel I never left. They were
business skillsets. I approached a couple of companies and both gave
my last employer, my first client, and have been instrumental in
me a shot. And I learned that people are very happy when you get
Morrison becoming what it is today. Our thanks to Dane Lance,
them half a million dollars or so, and grants soon become a core part
Brendon Flynn, Harold Schenker, Art Driscoll, Brad Schuler, and
of our services. We now have a team of four working in that area.
many others.
Likewise, after filling interim positions I occasionally had requests
It’s not easy to break down 20 years into a few words, so I will simply
to help recruit permanent replacements. I hadn’t done that either,
end it with “thankful.” I know that the future will be even brighter.
2002
20 0 8
2012
2016
2022
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FOLLOW US
C L I E N T CORNER The Morrison Client Corner is a regular feature of our newsletter.
If you’re a client of ours, we’d love to stay up to date with what
Here, you’ll find updates on what a number of our clients are up to,
is going on within your organization and invite you to share your
their achievements and milestones, and the generally great things
highlights in this space. Feel free to send any press releases,
happening in their companies or organizations.
newsletters, or happenings to Michelle at mgenova@morrisonco.net.
FARM BUREAU MEMBER OF THE YEAR AWARD
CLIFF LITTLE ON CLIMATE CHANGE
FOOD SAFETY LEADERSHIP AWARD
Rob Ramay, owner of BidCal Inc., was
Corto Olive Co. President Cliff Little
Jeremy Travis, Vice President of Quality
recently
recently
Authority
& Technical Services at Hilmar Cheese
Farm Bureau Member of the Year Award.
Magazine how Corto is taking action
Company, Inc., was recently awarded
Rob was recognized for his ongoing
to
the
contributions
agricultural
practices. Reducing waste, upcycling,
Award during the International Dairy
community especially during COVID.
and water conservation are just a few
Foods Association Dairy forum. Using
In 2020, when the Silver Dollar Fair
of the sustainability strategies Corto
high-quality milk received from local
was derailed by the pandemic, he made
implements. With seven generations
independent
sure the Jr. Livestock Participants had
of farming knowledge and a visionary
Cheese serves customers in more than
an online platform to sell their market
use of modern agricultural technology,
50 countries from their state-of-the
animals. As a client of Morrison, we
Corto is primed to become a beacon of
art production facilities in California
have seen first-hand the qualities that
sustainability in the olive oil industry.
and Texas. With leaders like Jeremy
earned Rob this award, and we could
Morrison is blessed to have worked with
at the helm, it’s no wonder Hilmar is
not think of a more deserving person.
Corto Olive Co. and looks forward to their
a leading producer in dairy products.
Congratulations Rob!
continued
Congratulations Jeremy!
awarded
the
to
the
Butte
County
shared
increase
with
adoption
innovation
of
in
sustainable
sustainable
2022
Food
Safety
dairy
Leadership
farms,
Hilmar
agricultural practices.
WELCOME NEW CLIENTS
JAKS FARMING WWW.MORRISONCO.NET
NEWSLETTER | SPRING 2022