nacsonline.com
NACS
SHOW
ISSUE
THE ASSOCIATION FOR CONVENIENCE & FUEL RETAILING OCTOBER 2015
THE NACS CHAIRMEN: STEVE LOEH...
86 OCTOBER 2015 nacsonline.com
FINDING THELEADERSHIP IDENTIFICATION AND TRAINING IS A CRITICAL COMPONENT OF
NACS Magazine OCTOBER 2015 87
BY JERRY SOVERINSKY
LEADERSUCCESSION PLANNING FOR BUSINESSES, NO MATTER HOW STRONG THE FAMIL...
88 OCTOBER 2015 nacsonline.com
henJapanesetemplebuilderKongoGumi
shut its doors for the last time in 2006, it marked the
e...
90 OCTOBER 2015 nacsonline.com
Wood began as general counsel for Wawa, moving
upthroughavarietyofpositionsbeforebecomingit...
92 OCTOBER 2015 nacsonline.com
vision,” Benu said. “We’re a culture of self-
development and merit-based career advancemen...
of 6

NACS Finding the Leader_Oct 2015 Issue SBenu

Published on: Mar 3, 2016
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Transcripts - NACS Finding the Leader_Oct 2015 Issue SBenu

  • 1. nacsonline.com NACS SHOW ISSUE THE ASSOCIATION FOR CONVENIENCE & FUEL RETAILING OCTOBER 2015 THE NACS CHAIRMEN: STEVE LOEHR AND JACK KOFDARALI H EALTH A N D CO N V ENIEN C E C LLIDE 8STEPS TO A MORE SECURE NETWORK STRATEGIESFOR ZONING APPROVALS New research shows opportunities for capturing shoppers who want better-for-you options.
  • 2. 86 OCTOBER 2015 nacsonline.com FINDING THELEADERSHIP IDENTIFICATION AND TRAINING IS A CRITICAL COMPONENT OF
  • 3. NACS Magazine OCTOBER 2015 87 BY JERRY SOVERINSKY LEADERSUCCESSION PLANNING FOR BUSINESSES, NO MATTER HOW STRONG THE FAMILY TIES.
  • 4. 88 OCTOBER 2015 nacsonline.com henJapanesetemplebuilderKongoGumi shut its doors for the last time in 2006, it marked the end of the world’s longest running family business. Founded in 578, the 1,400-year-old company suc- cumbed to what Bloomberg Business would later iden- tifyasacommonfailureamongcompanies,regardless ofage:Itneglectedtocreateaflexiblesuccessionpolicy. Indeed, despite the company’s willingness to look beyondtheoldestsonwhenpassingdownleadership control (the company even once—out of 40 genera- tions—looked to a daughter!), it never considered non-family members when planning for the future leadershipofthecompany. Andsowhendemandfortemplesdeclinedaboutthe sametimethefamilyhadaccumulatedsubstantialdebt, itclosed. Convenience store owners can learn much from Kongo Gumi. While the pressure of sustaining a 40-generation family is still centuries away even for the most tenured c-store operation, the dilemma of succession planning is—or should be—a crucial concern. For in an industry dominated by family participation,whowillleadthecompanyhasprofound implicationsforitslong-termviabilityandsuccess. Wawa Looks Beyond the Family WhenRichardWoodJr.beganworkingforhisfamily businessonJune1,1970,hewasentering—somewhat reluctantly—a business that was 95% held by family members. “I hemmed and hawed about coming to workatWawa,Iwasn’tsureaboutgettinginvolvedin a family company, even though my son already workedthere,”Woodsaid. Asarecentlymergedentityoftwodisparatefamily companies—a textile business that began in 1850 and a dairy that was founded in 1922—Wawa was a familybusinesswithsprawlingownershipinterests. “The family hardly knew the number of shares they owned, much less where their stock certificates were,”Woodsaid. NACS offers leadership programs and events that can help you identify and train qualified existing and up-and-coming leaders in your company: • NACS Leadership Challenge: Designed for district managers and supervisors, the six-month program features classroom instruction, coaching, a business project and online support, all aimed at improving leadership skills for high-level store personnel. • NACSExecutiveLeadershipProgramatCornell:Gearedtowardmid-tosenior-level retail managers, this program (endowed by PepsiCo Inc.) provides advanced training for those assuming leadership positions at retail companies. • NACS Financial Leadership Program at Wharton: This intensive, five-day program (endowed by American Express) is offered to high-potential executives who have been selected by their companies to acquire advanced insights in finance. • NACSMarketingLeadershipProgramatKellogg:Thisprogram(endowedbyAltria) is for mid- to senior-level marketing executives looking to enhance their understanding of branding, consumer experience and analytics. Formoreinformationontheseprogramsvisitnacsonline.com/leadership. HANDS-ON TRAINING
  • 5. 90 OCTOBER 2015 nacsonline.com Wood began as general counsel for Wawa, moving upthroughavarietyofpositionsbeforebecomingits chief executive in 1977, a position he would hold for more than a quarter of a century. (Wood also served asthechairmanofNACSin1985.) After a decade as Wawa’s helm, Wood began think- ing about a succession plan. “At that point, I was thinking that a family member would do it,” he said. “In fact, I made an effort in that regard in 1990.” But withcomplexfamilydynamicsandcompetinginter- ests at play,heeventuallyadoptedadifferentmindset. “Everyfamilymemberhadaninterest[inthecompa- ny] in a trust that my great grandfather set up in 1922,”Woodsaid.“Someofthemhadsharesoutright. …While it might have been nice [to select a family successor],itjustwasn’tgoingtowork.” Helping to convince Wood of the practicality of selecting a non-family member successor was a Boardthatincludedimpartial,non-familymembers. “Intheearly1970s,[mycousin]Grahamhadgonetoa seminar that advised executives to find Board members who weren’t just management, friends or company lawyers. You can always get advice from thosepeople.” WiththefullsupportofitsBoard,Wawaappointed itsfirstnon-familymemberleader,HowardStoeckel, as its CEO in 2004, a natural progression for the ex- ecutive who began working for the company in 1987. “Howard came to work for us as a vice president of human resources and he moved over to marketing in 1989,” Wood said. “He clearly was a leader. He was by farthestrongestmemberofourmanagementteam.” It was a consensus choice for the company, and Stoeckel built successfully on the work of his prede- cessor. “Howard did a much better job that I did and serveduntil2012,”Woodsaid. TheneedtolookoutsidethefamilytoleadWawais shared by Woods’ family members, who meet annu- ally at a beneficiary meeting. “There has been a con- vergence in feeling that this is a family company but yet an investment,” Wood said. “The reaction of the familytooutsidemembersisthattheywanttogetthe best person possible to grow their share holdings. With Howard, they respected him. There was recog- nitionthatheisagreatleader.” Leaders in Training WhiletheleadershippathforWawahasgrownsome- whatorganicallyfortheprivatelyheldcompany,pub- licly traded Delek US Holdings Inc. has implemented an enterprise-level, leadership training program for itsMAPCObrandofconveniencestores. “Wefeelitisourpeoplewhodriveoursuccessasan organization and who have made our company cul- ture so robust,” said Stace Benu, senior management of talent for Brentwood, Tennessee-based MAPCO, in explaining the importance of leadership training. “Our leadership team feels that it is important to in- vest time, effort and resources to develop our current department heads and operations leadership. That is where the idea for MAPCO’s Career Path Program andLeadershipEssentialsprogramoriginated.” Developedoverthepastfewyearsandintegrating corecompetenciesfoundamongitsmostsuccessful operators, Career Path Program (CPP) is designed to build a consistent model of leadership success at existing and future store locations. Easier said thandone. “Our largest challenge was taking the concept of developing our people internally and creating a structure that could successfully support our “Our leaders are building our future leaders.”
  • 6. 92 OCTOBER 2015 nacsonline.com vision,” Benu said. “We’re a culture of self- development and merit-based career advancement. It felt right for our organization to put the path to career growth right into our employees’ hands. We created the Career Path Program to give our employees control and opportunity to take the next stepandadvancetheircareers.” MAPCO’s CPP development phase included tap- pingintoitsalreadysuccessfulManagerMentornet- work, which trains store managers. “The Manager Mentornetworkinstantlybecameanintegralpartof the Career Path Program serving as our primary source of promotable talent into development roles, such as our new store opening coordinator and field trainer,aswellasourpromotionstodistrictmanager,” Benu said. “Currently, all of our development roles and sixteen of our district managers were previously partofourManagerMentornetwork.” Theprocessdoesn’tendthere.Aspartofthecompa- ny’s continued skills and leadership training, its man- agers participate in basic and advanced management coursesatthecompany’sheadquarters.Themulti-day programprovidesintensivetrainingintosystemsanal- ysis and situational leadership. Collectively with the company’s Manager Mentor network, they form the foundationofMAPCO’sCareerPathProgram. To ensure that its leaders maintain their requisite skills, MAPCO has a clearly defined documentation process to measure leadership success, a process that Benu said is working. “We have garnered great results showing internal store level management promotions 64% YTD, increased from 39% the prior year, and MAPCO leadership and Support Center rolespromoting58%internallyYTD.” In addition to CPP, MAPCO launched its Leader- ship Essentials program last year, which includes MBA-level leadership-focused classes presented by Belmont University professors. “Leadership Essen- tials has become the development curriculum of op- erations leadership (district manager and above) as well as executive-sponsored members of the corpo- ratesupportcenter,”Benusaid. In its first year of operation, Leadership Essentials isalreadydeliveringtangiblebenefitstothecompany. “Ithasproducedresultssuchaslowerturnoverinthe operations leadership and support center ranks, the creation and completion of individual development plans,andthehighestnumberofinternalpromotions in company history. Our leaders are building our futureleaders.” Timely and Relevant Even if your company doesn’t approach the store count of Wawa and MAPCO, succession planning— including executive leadership training—remains a relevant pursuit. No doubt, you have a strong emo- tional and monetary investment in your company, and leadership training is integral to a strategic tran- sition plan. For instance, if you’re a first generation owner who likes to build, sell and move on to other ventures,leadershiptrainingisnecessarytoreassure prospectivebuyersthatsuccessionwillbesuccessful. That’s an especially timely consideration, in light of current economic conditions. “The M&A [merg- ers and acquisition] market today provides many an opportunity for inspection,” said Kay Segal, senior partner,BusinessAcceleratorTeam.“Asaresult,the opportunity to buy and sell has and continues to be heightened… A thoughtful, succession planning process that as- sessesalloptions—familyleadership,outsideleaders takingonkeyrolesorthecompanybuyingorselling— istantamounttothriving.”   Jerry Soverinsky is a Chicago-based freelance writer. He’salsoaNACSMagazinecontributingwriter. “It felt right to put the path to career growth in our employees’ hands.”

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