A.M. Worldwide Advisory

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Building a Great Business – Lessons from Wine Country

I have been visiting Washington’s Yakima Valley wine region for many years, hosted by my good friend, Kerry Shiels, and her parents, Kathy and Hugh. Kerry is the head winemaker of Côte Bonneville, her family winery, which makes award-winning estate-bottled wines with grapes from their own DuBrul Vineyard.

On a typical weekend trip, my exposure to the grape-growing and winemaking process was limited to a brief pleasant stroll through the vineyard, sampling the occasional grape, followed by an afternoon “tasting” copious quantities of their stellar wines.

The past two years have been a little different. Both years I have had the opportunity to spend a few weeks in October helping out during harvest. While it has been a thoroughly educational and enjoyable experience, it has also shown me that the foundational elements of building a successful business are universal. Three lessons stood out.

1.    Set a clear, aspirational mission

We all know what that looks like. Here’s a test. See if you can identify the company associated with each of these mission statements:

  1. “To be Earth’s most customer-centric company.”

  2. “To organize the world’s information and make it universally accessible and useful.”

  3. “To revolutionize space technology, with the ultimate goal of enabling people to live on other planets.”

  4. “To save people money so they can live better.”

I’m confident that you got at least three of them right. (Answers at the bottom of this post.)

Why does this matter? Because a clear mission statement unifies the organization around a specific goal. It becomes the lens through which you evaluate every decision, big and small.

Sam Walton’s frugality was legendary. But it became core to Walmart’s culture because it was intrinsically tied to the mission of saving money for its customers. 

Côte Bonneville’s is “to produce classically styled age-worthy wines that best express our spectacular site.” That translates to maximizing the expression of their excellent fruit and unique terroir in all its glorious variability. In the vineyard, that means each block – and indeed each row – is micromanaged in the growing season and each grape cluster is carefully selected during harvest. In the winery, it means that equipment is sized and designed to allow for fruit from different parts of the vineyard to be managed differentially. Notably, the mission also helps clarify what not to do. No filtering, no fining, only selective blending, and minimal manipulation. Because it’s all about showcasing the fruit and the site.

As you examine your own vision statement, ask yourself: Is it clear? Aspirational? Does it truly resonate with your customers and your employees? Do they “get” it?

2.    Set high standards 

We often hear about the tradeoff between price and quality. That is a false choice. The aim should be to provide the highest quality for the price. A Ferrari may cost more than a Civic. But the goal should always be to make the best car at its price point. And in that journey, obsessive attention to detail is a necessity, not a luxury.

During harvest, the vineyard crew selects only the best grapes: small berries, intense color and flavor, no sunburn, no raisining. The harvested grapes are then visually inspected and hand-sorted again to remove the last remaining unworthy clusters. In the winery, all equipment is obsessively cleaned and sanitized, and the team constantly communicates, triple-checking each other’s work to prevent tired mistakes. Fermentation data is measured twice daily. Only the best-quality barrels (French oak always!), bottles, and corks are acceptable. Labels are meticulously designed. Any finished product with even the slightest flaw or blemish is rejected. 

Côte Bonneville has built a broad and loyal customer base by never compromising on quality. In the pursuit of excellence, details matter.

3.    Get the best people

This sounds obvious. Of course you want to hire the best people. Kansas City’s NFL team paid Patrick Mahomes half a billion dollars earlier this year because they think he’s the best quarterback in the game.

But it’s not quite that simple. You can pay top dollar, but what happens when your competitor decides to pay top dollar plus one? You need to be able to attract, develop, retain, and reward talent. Here, your aspirational mission and your high standards (see #1 and #2 above) become critical.

Côte Bonneville’s stellar crew take immense pride their work. They exhibit a quiet swagger because they know they’re working to create a quality product. They are loyal (and competitive!) because they know they’re part of something special. And that makes them vocal stewards of quality at every step, from harvest to bottling, which only reinforces the virtuous cycle.

Getting the best people sometimes also means going outside your organization. Côte Bonneville has consulted and collaborated with some of the best minds in the business to learn, improve, and refine their operations. Business landscapes and business knowledge are constantly evolving. To be the best you have to set aside your ego and be willing to learn from the best.

In today’s hyper-competitive world, it is increasingly difficult to build a great business and sustain a competitive advantage. Whether you’re the CEO of a multi-billion-dollar global organization, a small, family-owned business, or a fast-growing startup, having a clear vision, setting high standards, and attracting and retaining great talent are foundational, and indeed self-reinforcing, in that effort. 

Answers:   1. Amazon   2. Google   3. SpaceX   4. Walmart