Morrison Newsletter - Spring 2022

Page 1

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.

WWW.MORRISONCO.NET

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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10 Landing Circle, Suite 5 Chico, California 95973

SACRAMENTO, CA

PERMIT #1890

5 3 0 . 8 9 3 . 4 7 6 4 • W W W. M O R R I S O N CO. N E T BUSINESS & ACCOUNTING ADVISORY • PEOPLE SOLUTIONS • GR ANTS

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


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