Communication

In the Hot Seat: Handling Tough Questions Honestly

R1607J_BROSMIND-850x478Information exchange is integral to creating win-win deals, but it must be carefully managed. Disclose too much and your counterpart might take advantage of you; disclose too little and you miss opportunities to discover mutually beneficial trades. So what should you do when you’re asked a question that, if answered truthfully, would put you at a bargaining disadvantage?

WHAT NOT TO DO

Lie. You will be tempted to lie. Don’t. Setting aside ethical, moral, and legal arguments, if you get caught, it can damage your reputation and your relationship with your counterpart and potentially put the entire deal in peril. Research shows that many positive interactions are required to restore trust after a single breach, and breaches entailing deception are among the most difficult to recover from.

Palter. Another common but misguided approach is what Todd Rogers and colleagues call “paltering,” or using truthful statements to convey an inaccurate impression. The researchers give the example of former U.S. president Bill Clinton’s answer to a question about whether he’d had a sexual relationship with Monica Lewinsky: “There is not a sexual relationship—that is accurate.” Technically that statement was not a lie, because his involvement with Lewinsky was in the past. But research shows that people view such legalistic skirting of the truth as unfavorably as they view outright lying.

Abstain. A third common workaround is to abstain from answering the question. However, Kate Barasz, Michael Norton, and I have shown that this tactic leaves a worse impression than disclosing even extremely unsavory information. For example, in one study, participants viewed people who had confessed to frequently stealing items worth more than $100 as more trustworthy than those who had simply refused to answer the question.

WHAT TO DO

Redirect. In the short term, the strategies deployed by politicians, who routinely face tough, direct questions, can be instructive—particularly for one-shot negotiations (when you are unlikely to meet your counterpart again). A familiar tactic is to dodge the question by changing the subject to something seemingly related. As noted earlier, people are generally not very good at detecting dodges, so you have an opportunity to selectively disclose information of your choosing. A second strategy is to turn the tables and question the questioner. Responding in this way can deflect attention and enable you to take control of the topic.

Share carefully. If you’re playing a longer game, disclosure can work in your favor; it can foster trust and facilitate better outcomes through collaboration and joint problem solving. To avoid being exploited, however, negotiators should start small: Share a substantive but not critical piece of information. Only if your counterpart reciprocates should you continue the tit for tat; disclosure without reciprocation leaves you vulnerable to your counterpart’s value-claiming tactics.

 

Leslie K. John is an associate professor at Harvard Business School. Twitter: @lesliekjohn.

Careers in Wine

How Millennials are Changing the Wine Industry

Article from Wine Industry Advisor

While the precise dates governing the birth years for the biggest generation in history known as millennials vary, (somewhere between 1976 and 2004), there is no dispute that they love their wine. The first segment of this group hit legal drinking age in the early 2000s, as U.S. wine consumption surged. It has increased at a steady rate ever since. Millennials are responsible for nearly 27 percent of the total U.S. wine consumption, second only to baby boomers (born between 1946 and 1964) who account for nearly 42 percent.

Approximately 70 million millennials are currently age 21 and account for 30 percent of weekly wine drinkers. As the number of aging, wine-drinking boomers decreases, the millennial generation is stepping in to fill the wine buying slack — and marketers and industry experts can’t help but notice. This generation’s whole approach to wine is vastly different from those who have come before them.

Millennials are the first digital generation, and their technological fluency shapes their buying decisions. They
have grown up with instant, on-demand access to information, price comparisons and peer reviews. They don’t wait for a special occasion to drink wine, nor do they stash wine in a cellar for a decade like their boomer parents. Wine is used to relax, to socialize with friends or family, with or without meals, while cooking, while hiking, during wine tasting parties, and on vacations. A 2011 study of 467 millennials by the Wine Business Institute at Sonoma State University showed that this generation drinks wine as part of their informal, everyday life, and therefore in larger quantities than previous generations. The study suggested that “ by linking into these motivations of socialization, relaxation, and fun regarding wine, marketers will be able to relate better to Millennial desires.”

Millennials are not fans of slick advertising or pretentiousness, and want authenticity and transparency from winemakers. They want to know the unique story behind their wine, how it is grown, blended, and by whom. Critics’ scores and gold medals hold little weight for them; instead they’ll value what their friends are saying about the wine on social media.

These wine lovers are experimental and they crave adventure. Traditional wine and food pairing rules don’t concern them. The per bottle maximum they pay for a celebratory quaff hovers around $20, but the daily drinking comfort zone is closer to $10. Millennials are active and they want their wine to be just as mobile and portable. This marketing shift is a challenge that the wine industry appears to be excited to tackle.

Companies are increasingly allocating more of their marketing dollars to social media advertising, and interactive online marketing strategies. Wineries have created digital marketing divisions and director of social media positions. They maintain active and engaged roles on Facebook, throw Twitter parties, curate wine blogs, and produce tasting videos to keep the wine chat flowing 24/7. Wine apps allow users to shoot a photo of a wine label and immediately access descriptions and ratings, adding their own tasting notes to the database. The Wall Street Journal noted that when it comes to wine apps, “Sometimes it seems as if there are almost as many wine apps as there are wines.”

Millennials value the connectivity and networking benefits of in-person social settings — wine bars and festivals are thriving, and tasting groups are forming. Producers such as Gallo, owner of Barefoot Wines, sponsor face-to-face events, like the World Series of Beach Volleyball. Stephanie Gallo, VP of Marketing, draws her inspiration from Starbucks, “which brought a premium product — gourmet coffee — into the mass market.”

The yearning for authenticity and the desire to know where and how the products they eat and drink are sourced has spilled into wine packaging. Millennials value eco-conscious products, and alternative packaging is evolving to comply. The proliferation of premium-boxed wines that use recyclable materials is illustrative of just that.

The wine company Bota uses soy-based inks printed on recycled, unbleached Kraft paper, bound with cornstarch instead of glue. Many box wine producers use organic grapes from sustainable, fair practice farms in California, Washington and Italy. To quench the millennial thirst for information, producers are including more product information on packaging as well.

Several companies now offer single-serving wine pouches. All this experimentation pays off for wineries because approximately 85 percent of millennials are willing to purchase an unfamiliar brand, according to the Wine Market Council. Just as long as that brand offers them sufficient information, authenticity, convenience, and eco-friendly, portable adventure.

Careers in Wine

When Not Everyone Agrees With You

News From Napa…
As I am sure you have all heard and seen the images from Sundays 6.0 quake.  Thank you so much for all the calls and texts, and emails.  We were very lucky – the Benchmark family is safe and intact. We had a few few minor breakages, but overall we are grateful and our hearts and prayers go out to our neighbors and friends who did not fare as well.  

We wish a speedy recovery to our industry friends and families.
………………………………………………………………………………

When Not Everyone Agrees With You
The more invested we are in an idea, the more likely we are going to present an idea persuasively. And even if we do present it well, there will likely be some resistance to some or all aspects of it. How we react to resistance is a determining factor in both the growth of our ideas and ourselves.

What is there to do when not everyone agrees with you? You could rejoice at the evident diversity of perspectives, but realistically, you must remember that this is not a personal evaluation. Keep discussions objective and tightly anchored to the original idea.

Perhaps you feel very strongly about something. As situations become more qualitative than measurable, the ultimate redress may be impossible to define. As you may have previously noted, others will have their ideas and beliefs at least as strong from another perspective.  

Perhaps you have taken great pains in presenting an idea. Opening ideas up to questioning allows you to use the knowledge gained from experience and research to further elaborate on the merits of the issue. As you rationally express your points, you will learn more deeply about the subject, as well as increase your general ability to maintain a positive and productive attitude.

Careers in Wine

Sonoma County Winegrowers Announce New President

Sonoma County Wine Growers Announce NeKarissa Kruse says one of her top priorities when she assumes the position of president of the Sonoma County Winegrowers is to continue the joint marketing effort developed by the organization and the county’s vintners and tourism groups. Kruse, who had been hired as the Winegrowers’ marketing director in August 2012 has been picked by the group’s board to replace outgoing president Nick Frey, who will officially retire May 1. With the industry associations in Sonoma County already linked by the same marketing strategy, Kruse said the next step is to leverage that cooperation to elevate the reputation of the county’s wine and grape industry both nationally and internationally.

“What a win for the growers to have such a strong relationship with the vintners,” she said. Getting to know their neighbors Kruse will also continue to implement the group’s community outreach program to help Sonoma County residents who don’t work in the wine industry gain a better understanding of it. “They often don’t even know as much about our vineyards and wineries as our visitors,” she said. And while the county’s wine and grower groups have improved the region’s reputation in the wine trade and press, Kruse admitted the same isn’t necessarily true for the people living in the group’s own backyard.

“We haven’t done as good of a job of relating to our community,” she said. Some of the tension between growers and county residents has stemmed from vineyard development. Just recently, Sonoma County and conservation groups worked out a $24.5 million deal to preserve 19,652 acres of land, of which nearly 1,800 were to be developed into vineyards in a plan backed by the state employee retirement fund CalPERS, according to a report by the Santa Rosa, Calif., Press Democrat newspaper. Kruse said the proposal and deal were worked out well before her transition into the president position, but she views it as a “win-win” agreement for conservationists and growers. Simple supply and demand economics indicate there’s benefit to not having a large amount of new acreage getting planted with vines. Kruse said the winegrowers are focused on producing the highest quality fruit and improving the region’s reputation for fine wine. “It’s nice that it doesn’t have to go into development,” she said. Keeping the transition smooth Nick Frey joined the county’s grape growers association in 1999 and led the group through its reformation as a state commission in 2006. He will stay with the group through the end of the year to help ensure a smooth transition. When the change is complete, Kruse will oversee the roughly 1,800-member group, which recently changed its name from the Sonoma County Winegrape Commission to the Sonoma County Winegrowers. The organization has a small staff including a grower programs manager, winery and sponsor-relations manager and a part-time bookkeeper and part-time web developer. Growers pay $1.2 million to the group in assessments collected from grape sales.

“Karissa has been a great addition to the commission staff in just six months,” Frey said in a statement released by the group. “She is quick to learn and motivated to represent growers’ interests to the wine trade and local community. Karissa’s experience and energy are what is needed to continue moving the commission to new heights.” The promotion came at the end of an 18-month recruiting and succession-planning process, during which the group’s board identified Kruse as someone who could first help the group’s marketing efforts and then follow Frey.

Kruse earned a master’s degree in marketing and a bachelor’s in economics from the The Wharton School at the University of Pennsylvania. Prior to joining the winegrowers, Kruse worked for General Mills, Universal Studios and the Dairy Management Inc., a national marketing group for the U.S. dairy industry. Kruse came to Sonoma County in 2007 to purchase a vineyard and pursue a career in wine. She owns a 25-acre parcel in Bennett Valley AVA, of which 5 acres are planted to Syrah, Pinot Noir and Chardonnay. The grapes are used for Kruse’s Argot Wines, a company she owns with a partner. Kruse said she makes about 2,000 cases with fruit from her vineyard and also buys grapes from county growers. “I’m not just the president, I’m a client,” she said.

Original Article Here

Careers in Wine

Curiosty

The important thing is not to stop questioning… Never lose a holy curiosity. 
Albert Einstein

 

Curiosity is an important trait of a genius. I don’t think you can find an intellectual giant who is not a curious person. Thomas Edison, Leonardo da Vinci, Albert Einstein, Richard Feynman, they are all curious characters. Richard Feynman was especially known for his adventures which came from his curiosity.

2013 is a new year. A new time for all of us to discover what makes each of us unique and wonderful and how we pull that back into the universe.

In the Wine Industry, curiosity is the mainstay of our existence. Ask any Winemaker, if it wasn’t for curiosity wine would not be what it was is today. With the shrinking of the individual family wineries and the drive to recreate over and over again the same wine flavor profiles we may be losing what makes us special on many levels.  Not allowing ourselves to take the time to allow curiosity and discovery to take over we will lose what makes us special.

When looking at yourself or your team or your company…ask yourself, “Are you curious?”

If you discover that you have been in the weeds and lost your way to curious behavior..I have listed a few ways to take it back.  

But why is curiosity so important? Here are four reasons:

  1. It makes your mind active instead of passive
    Curious people always ask questions and search for answers in their minds. Their minds are always active. Since the mind is like a muscle which becomes stronger through continual exercise, the mental exercise caused by curiosity makes your mind stronger and stronger.
  2. It makes your mind observant of new ideas
    When you are curious about something, your mind expects and anticipates new ideas related to it. When the ideas come they will soon be recognized. Without curiosity, the ideas may pass right in front of you and yet you miss them because your mind is not prepared to recognize them. Just think, how many great ideas may have lost due to lack of curiosity?
  3. It opens up new worlds and possibilities
    By being curious you will be able to see new worlds and possibilities which are normally not visible. They are hidden behind the surface of normal life, and it takes a curious mind to look beneath the surface and discover these new worlds and possibilities.
  4. It brings excitement into your life
    The life of curious people is far from boring. It’s neither dull nor routine. There are always new things that attract their attention, there are always new ‘toys’ to play with. Instead of being bored, curious people have an adventurous life.

Now, knowing the importance of curiosity, here are some tips to develop it:

1. Keep an open mind

This is essential if you are to have a curious mind. Be open to learn, unlearn, and relearn. Some things you know and believe might be wrong, and you should be prepared to accept this possibility and change your mind.

2. Don’t take things as granted

If you just accept the world as it is without trying to dig deeper, you will certainly lose the ‘holy curiosity’. Never take things as granted. Try to dig deeper beneath the surface of what is around you.

3. Ask questions relentlessly

A sure way to dig deeper beneath the surface is asking questions: What is that? Why is it made that way?When was it made? Who invented it? Where does it come from? How does it work? What, why, when, who, where, and how are the best friends of curious people.

4. Don’t label something as boring

Whenever you label something as boring, you close one more door of possibilities. Curious people are unlikely to call something as boring. Instead, they always see it as a door to an exciting new world. Even if they don’t yet have time to explore it, they will leave the door open to be visited another time.

5. See learning as something fun

If you see learning as a burden, there’s no way you will want to dig deeper into anything. That will just make the burden heavier. But if you think of learning as something fun, you will naturally want to dig deeper. So look at life through the glasses of fun and excitement and enjoy the learning process..

6. Read diverse kinds of reading

Don’t spend too much time on just one world; take a look at another worlds. It will introduce you to the possibilities and excitement of the other worlds which may spark your interest to explore them further. One easy way to do this is through reading diverse kinds of reading. Try to pick a book or magazine on a new subject and let it feed your mind with the excitement of a new world.

 

 

 
Research

The New U.S. Wine Market

The U.S. wine market fell off a cliff in September 2008, and it is still hanging in mid-air.

Far more has changed in this market than the behavior of the American consumer: The companies that distribute and sell the vast majority of wines have dramatically changed the way they do business.

To begin to understand this new market, Stonebridge Research created its Fine Wine Trade Monitor in March 2010, with support from industry groups including Napa Valley Vintners, the Paso Robles Wine Country Alliance and South African Winegrowers, and with help from industry leaders across the country.

From March to June 2010, we conducted telephone conversations of one hour or more with more than 50 top managers in the wine trade: eight distributors, 17 independent wine retailers and 25 full-service restaurants (both chains and independents, including national accounts) in the top wine markets in the United States (New York, Boston, Miami, Atlanta, Washington, D.C., Chicago, Las Vegas/Reno, Dallas, Houston, Seattle, Los Angeles and San Francisco) and several smaller markets.

In each conversation, we asked:

  •  How has your wine market been, over the last 24 months?
  •  How have you adapted your business?
  •  What is selling and what isn’t?
  •  What moves wine in this marketand what doesn’t?
  •  What notable trends have you seen in consumer behavior?
  •  What has been the impact of changes in distributor business?
  •  What can – and should – producers do?
  •  What worries you about the future?In the process, we learned what exactly this new market was and how the trade – wholesale, retail, restaurant – has changed to adapt to the new economy.

BEYOND GROCERY STORE DATA

We know that Americans are still drinking wine. They are just paying less for it. Consumers have changed what they buy, what they are willing to pay for it, and particu- larly, where they buy it – with consequences for everyone in the wine business.

You may have read that not only are retail wine sales rising, so are wine prices at retail. But that is InfoScan data, which is primarily grocery and drug store data, in the states where wine can be sold in those channels. In late 2008 and early 2009, grocery stores closed out – at huge discounts – most of the higher-priced, small-production wines on their shelves. Pretty much everything else has been heavily discounted.

So what does it mean if those prices appear to be increasing? Either that discounts may be some- what smaller or that consumers are taking advantage of better wines being discounted.

So, wine prices are rising…from what?

Are wine prices recovering?

What is really going on out there?

RETAIL

Here are some basics on wine sales. In the “normal” market, before the recession, it would take about three months to move an inventory of wine at retail (described in the trade as a “turn rate” of four times a year). Some lesser-known or more expensive wines might take longer to move. Thus, much of the cost of wine in all parts of the market is the cost of holding inventory. That inventory turn rate for wine has now slipped to once a year: 12 months to move all but the strongest brands and biggest values. This happened at a time when credit was becoming scarce and more expensive.

From the third quarter of 2008 through the spring of 2010, retail wine sales revenue declined 15%- 20% in most parts of the country, while sales volume – the number of bottles sold – rose. Many retailers found they were “working twice as hard for less money.” Wine would only sell with large discounts – 30% being the norm – or a special event. Many retailers cut staff by as much as 20%. “Hand-selling” of wine was an expense few could continue to afford.

Retailers also responded by cutting inventory, by 20% or more. They swapped out wines costing more than $50 for wines under $20. Anything that didn’t move quickly was closed out. Imports were the first to go, then smaller producers, library wines, multiple vineyard-designates, all those “new varietals” – all gone. And if they haven’t seen you lately, you are probably one of the brands they cut.

If it looks like retail shelves became filled with large-volume brands, they were. Risk-averse consumers were reaching for not only less expensive wines, but familiar labels from large producers able to fund the promotional allowances and discounts needed to sell wine.

The only alternative to discounting that seems to work has been special events with winemakers. Vintners’ travel is up 30% or more.

We do a lot of consumer research at Stonebridge. A few years ago, price was a factor in wine purchases – one of several, along with brand, variety, ratings, the occasion when the wine would be served, etc. Wine was, to use a wonderful phrase from Yankelovich Partners’ study for the California Wine Institute in 2005, a “safe adventure” – consumers were excited about trying something new, even dangerous, in wine. Well, that’s over.

Today no one is quite sure what consumers want, other than price. At least at retail, they are not being adventurous. Not that they are being given much of an option, either, because there is less and less adventurous wine on the shelf.

RESTAURANTS

Restaurants have been much more creative in responding to this economy.

The year 2009 was the worst for U.S. restaurants in almost 40 years. Full-service restaurants were the hardest hit, with particular pain coming from the loss of corporate and expense-account business. The average check was down 15%- 20%, but the average wine sale was down 20%-50%. Wine sales were down far more than spirits or beer, which were seen as more economical alcoholic beverages.

Restaurants responded by adapting their menus to allow customers to “manage their spend” through increased choices in more price categories and flexible portion size, prix fixe meals, special offers, food sharing and small plates. And they have adapted their wine lists accordingly.

Customers have been turning toward wine by the glass for several years, but in 2009, the shift was drastic, from bottle purchases to a cocktail, followed by a glass of wine with dinner. Restaurateurs described their new business as “selling more wine to fewer people at lower prices.”

The “sweet spot” for wine bottle sales dropped to the $40-$60 range from $90 or more – and it hasn’t improved. We even began seeing “house wine” again, albeit of better quality than in years past. With wine sales slowing, restaurants began cutting new purchases, cutting lists and selling from inventory. They put the expensive wines on special and when they sold out, they were replenished with wines they could sell for $40 or less.

Inventory levels were cut, long- term, to reduce costs. Individual orders got smaller – cases became six-packs and six-packs became two bottles – to limit inventory exposure.

Restaurants have long expected to be able to re-order regularly, monthly or bimonthly, for their more active wines, which became more important as individual orders dropped in size.

With the wines they do offer, restaurants have taken a different road than retailers. They are looking for “esoteric” imports, new wines, small producers, wines not available at retail. The last thing customers need to see on a restaurant list is a wine they could have bought in the grocery store or (horror of hor- rors!) at Costco at a fraction of the price.

Thanks to creative wine lists and support from energized sommeliers and trained servers, consumers have regained some of their cour- age to experiment with wine, seeking new, affordable alternatives to the more expensive wines they used to order in restaurants. Thus, wine sales on premise have been shifting toward small-production imports: particularly Veneto whites and Rhône reds. Restaurant traffic was revived in much of the country in 2010. Corporate and private dining business is coming back — yet wine lists have not returned to their glory days.

With restaurants and retailers heading in different directions, how do you build a brand today?

DISTRIBUTION

Now we get to the distributors.

Think about it: The whole structure of the three-tier system depends on distributors holding inventory. Inventory costs have multiplied as turn rates collapsed. Restaurants cut their purchases by as much as 50% and many closed. Retailers cut orders. Inventory credit costs rose and conditions tightened.

Starting in late 2008, most dis- tributors started trimming everything that had not moved in 30-60 days. During the past 18 months, there were hundreds of closeouts, if not more, flooding the market at discounts to retailers and res- taurants of up to 80%. Accounts often could not find out where to buy many of their usual wines.

Distributors have since cut 20%-30% of brands from inventory, primarily slower-moving small producers, library wines, new brands and imports.

One sales director described distributors as “triaging” customers, with major national brands at the top and smaller brands on the third level, described as the “if you are lucky, we might return your phone call” customer group.

Distributors have targeted inventory for no more than 30-60 days, even if it means out-of-stocks. They are not holding inventory for mid- season re-orders. Allocations go out once or not at all.

In the long run, long after the consumer starts shopping again, it is these changes in distribution that will have the greatest impact on the U.S. wine market.

WHAT DOES THIS MEAN TO PRODUCERS?

First, few, if any, producers will be able to depend on wholesalers to simply take their production off their hands and find a market for it. This situation has been coming for several years, and producers have largely been in denial.

The most immediate impact is on producer cash flow.

Distributors are decreasing what they are willing to buy, and completely eliminating some brands. In September 2009, wineries began dumping inventory to distributors with discounts as high as 60%, after spending much of the year insisting they could not even moderately adjust the pricing they had built up during the boom years.

The idea was presumably to clear out inventory to enable a healthier market with the new vin- tage, yet the discounts continue.

The expectation that pricing would return to old levels is unlikely to be met. Trade and consumers who purchased wines earlier in the year, at higher prices, felt betrayed, and those brands are likely damaged for the long term with these customers.

Next is the realization that producers are indeed responsible for generating their own demand.

Vintners need to nurture their relationships with their accounts, understand what they can sell and be out in the market to provide the training and support sales.

Independent sales and marketing companies are proliferating, assisting producers who can’t afford a sales force, yet this also adds another layer of costs.

Wine companies are learning they need to manage their distributors, monitor their inventories to avoid out-of-stocks, keep an eye on pricing to avoid closeouts, keep tabs on warehouse situations and check on deliveries.

They must work harder to make sure they get paid, and to ensure their wines are valuable to their distributors.

Finally, it comes down to more rigorously managing the business of wine: building sales planning and inventory management capabilities, and understanding and controlling costs.

Most important is to protect and improve quality while tightening business practices.

There is already concern that wine quality may be compromised as vintners try to protect margins, a counter- productive strategy when consumers are discovering that good wine can be found at every price level.

Cost savings will have to come from improved business, financial and operations management, with retaining and improving wine quality a top priority. Or, in the words of one former large-company executive, “taking money out of process to put into quality.”

What other options are there for producers?

Consumer-direct sales have revived in some regions, making up for some of the lost trade markets. But as ShipCompliant data has shown, consumer-direct is still a small segment of wine sales. Most wine will continue to be sold through retailers and eating-and- drinking establiishments.

Attention is gradually focusing on the opportunities for direct-to- trade sales, through so-called clearing distributors. There is anecdotal evidence of distributors setting up clearing divisions to process three- tier paperwork for a fee, leaving actual sales and physical distribution to wine producers. Many of the new sales and marketing companies and brokers, started by distribution veterans, are developing comparable services.

Restaurateurs report that distributors are proposing to take orders for smaller wines they do not usually stock, if the trade commits to pay in advance and to take immediate delivery, so that no inventory costs are incurred.

I had a conversation several months ago with a friend in the industry who remarked, with a startled expression, that he had just realized that he usually said “supply and demand” and I say “demand and supply.” Perhaps, he suggested, that says something about the industry and the market today.

Sadly, selling wine has always been more difficult than making it. Today, it is definitely what a vintner needs to think about first.

Barbara Insel is president and CEO of Napa-based Stonebridge Research Group LLC, a leading strategic advisory and research firm servicing the wine industry. Insel has led major projects for the French Trade Ministry, Wine Institute, California Association of Winegrape Growers, Napa Val- ley Vintners and many others. To learn more about Stonebridge Fine Wine Trade Monitor, visit www.stonebridgeresearch.com or contact Insel at binsel@stonebridgeresearch.com. 

Luxury Wine

Drunk with Power

Drunk with PowerStanding in the low-ceilinged basement of a rundown Seattle bungalow, among the shiny steel vats and plastic tubing that constitute Animale winery, the wine merchant Jon Rimmerman swirled his glass, sniffed its bouquet, took a sip and moved his mouth around as if chewing. A fair-skinned, dapper and somewhat elfin man, Rimmerman wore Kelly green jeans, a lavender sweater and a black-and-white plaid sportcoat. Salt-and-pepper curls bushed out from under his Greek fisherman’s cap as he bent over a white plastic bucket. Spitting out a great purple jet of wine, Rimmerman signaled to the winemaker Matt Gubitosa that he could taste exactly one more vintage before leaving.

From the outside, Animale — named for Gubitosa’s dead but still-beloved cat, whose image has appeared on many Animale bottles — looked more like a methamphetamine lab than a winery, with an overgrown lawn, a faded gnome statue and reflective insulation covering all the basement windows. On the inside, Animale was clean and well lighted, with all proper licensing, classic R. & B. on the radio — “a little bit louder now!” — and a sleepy kitten.

“That’s the Dolcetto?” Rimmerman asked, as Gubitosa poured.

“Two thousand ten, yes. You need some pizza with that. I use cultivated yeast, but no mechanical anything.”

Rimmerman is the founder and sole owner of Garagiste, the world’s largest e-mail-based wine business. With 136,000 subscribers, Rimmerman says that Garagiste does, on average, $30 million in annual sales offered exclusively through his long, florid, self-mythologizing daily e-mails. “Dear Friends, somewhere along the path to wine-related enlightenment” began a recent one, which later evoked “the incredulous 1970s chemical salesman, dumping buckets of toxic pesticides” onto the vineyards of poor Chambertin, Margaux, Latour. “At some point, the land gives up. It must be resuscitated over decades to fully escape the poison (similar to smoking — the body eventually cleans itself and regenerates, but a certain scarring remains).” He then conjured lovely Sardinia, Europe’s “truest untouched terra firma,” source of the obscure 2011 Rigaterri Mirau — “Djarum cigarette in your glass . . . massive pine forest, clove, resin,” a “once-in-a-blue-moon” steal at $18.61 a bottle.

Despite Animale’s admirable smallness, Rimmerman was skeptical going in: only months earlier, Robert Parker’s Wine Advocate gave Gubitosa’s 2009 Petit Verdot a stellar 92-point rating; Rimmerman has built his reputation by differentiating his tastes from those of other critics, favoring the austere, eccentric and putatively authentic over what you might call the merely delicious. But now Rimmerman spit out another purple mouthful and said, with evident surprise, “That’s the most unusual wine.” He looked Gubitosa in the eye. “I mean, not to say whether it’s good or bad, like or don’t like.”

Gubitosa, a burly, thin-haired 50-something who works for the United States Environmental Protection Agency when he’s not cranking tunes, petting kittens and making fine wine, nodded. Point taken.

“But it has a personality.”

“Yeah, it’s not for everybody,” Gubitosa conceded.

“The pepper, it’s incredibly crushed on the nose and through the palate, with those hard tannins,” Rimmerman said. “There’s nothing fun about that.” This was a backhanded compliment. Wines of integrity — wines of “character and terroir,” to use Rimmerman’s term — aim not to please but to express what Rimmerman calls, in all seriousness, “vinous truth,” meaning the honest expression of a particular grape varietal, grown in a particular place, in a particular year. “People have distilled my life down to, He’s in pursuit of the truth, more broadly, in all things,” Rimmerman says.

Rimmerman shook Gubitosa’s hand, explaining that he had a flight booked for later that evening, over to the wine country of southeastern Washington, for a few more days of tasting. From there, Rimmerman had a flight booked to Washington, D.C., where his first East Coast warehouse is under construction. Rimmerman says he has spent about half of the last 15 years on the road, hunting wine and story in Europe, Australia, New Zealand, South Africa, South America, Turkey, Israel, three Canadian provinces, northern Mexico and 13 American states.

The vineyards of the Savoie, in the French Alps.

Photograph by Shira Young

Stepping into the Seattle downpour, Rimmerman trotted delicately across the sad lawn, climbed into the car and insisted that his personal preference — the question of whether or not he would drink Gubitosa’s wines in his own home — was irrelevant.

“What I’m trying to uncover is something that is culturally important or of the moment, which this definitely is,” Rimmerman said. “This is cutting-edge Washington State winemaking. So, first: Are the wines sound? And then, would people that read everything that I write, every day” — in those Garagiste e-mail offers — “be interested not just for the wine but for the story, the cats, the meth lab, the geologist, the maybe-no-woman-in-his-life. Would they like to kind of taste that story in the bottle.” The answer was maybe: Gubitosa’s wines were not “immediately crowd pleasing, but he was trying to make something real, that was not doctored.” In Rimmerman’s cosmology of the wine industry, which holds that a vast majority of wine on the U.S. market goes through industrial processing aimed at pleasing Robert Parker, this was high praise indeed.

Driving through Seattle’s streets, he rattled off various nicknames he claimed to have been given by unnamed others: “The Wine Whisperer. The Pied Piper of Wine. The Great and Powerful Vinous Oz. The (Real) Emperor of Wine. The Emperor Who Has Clothes. I’ll get you a list.”

“The Wine Whisperer” refers to Rimmerman’s conviction that he, along with his partner and their 6-year-old daughter, all have superhuman tasting powers that may or may not qualify them as what are called “supertasters,” a distinction thought to have a legitimate anatomical basis. In addition, Rimmerman will say that his daughter has a genetically enhanced tactile sense — that she is a kind of superfeeler — and that he, personally, by simply looking at a label, can recall the taste of any wine that has ever crossed his lips, a number running into the many tens of thousands. This is an aptitude that, he feels quite sure, even Parker cannot claim. “This is something that people have called a photographic memory of wine,” Rimmerman told me. “Or they’re not quite sure what it is. It hasn’t been categorized yet.”

Those two “Emperor” nicknames, playing off the Robert Parker biography “The Emperor of Wine,” evoke the doubtless pleasant fantasy that Rimmerman — despite being a salesman with no medium beyond his own marketing copy — might somehow displace Parker as the great American wine tastemaker. “I don’t think of myself as a retailer or an importer,” Rimmerman likes to say. “I think of myself as a writer and a conduit of culture.”

As we parked near Seattle’s deepwater cargo port, Rimmerman said he has also been called the J. Peterman of Wine, “being able to tell vivid stories in a catalog where people buy trunks from India they have no use for.” He tried to put all this together for me: “There is an aspect of J. Peterman. There is an aspect of Oz. There is an aspect of the Pied Piper leading people over the edge where they’ve never tasted before. But no one really knows who I am and how I do this. When other people try to copy what we do, I’m very floored by that. It’s wonderful, the admiration.”

Stepping into the rain, just then, he opened an unmarked door in a concrete wall and led me into his cavernous warehouse filled to the ceiling with countless cases of wine. His partner, Shira Young, stood nearby, a striking woman with jet-black hair, dark eyes, golden skin and a soothing and sensible demeanor that reflects well on the manic Rimmerman. She and one of their daughters, Gigi, hovered near a tall round table covered with olive oil both in bottles and on plates.

Rimmerman asked Gigi if she had tasted them.

Shira replied for her. “She tasted the entire table.”

Gigi did not look up; she was busy drawing her little hands through a plate of olive oil and then dreamily rubbing her fingers together.

Rimmerman with his partner, Shira, and their daughters, Gigi, 6, and Pip, 3, in the South of France.

Photograph by Shira Young

Garagiste, which gets its name from a French winemaking movement, has not advertised since its creation in 1996. Rimmerman built a Web site only two years ago. Before that, you had to hear about his list through a friend, copy the e-mail address, then send in a polite request to join — analogous, in some ways, to the nightclub without a name, creating desire precisely by its disinterest in attracting you. Even today, the Garagiste Web site — through which you can now sign up for the e-mail list — has no e-commerce function nor even a blog post of Rimmerman’s daily offers. You get the memo or you don’t, and Rimmerman rarely offers the same wine twice. Though he blackballs people who might buy in volume to resell — the words “no sales to retailers or wholesalers” appear in every e-mail offer — he claims that competitors skulk around the list nonetheless, under fake names, even sending him anonymous death threats demanding an end to his dangerously low prices on both inexpensive wines (he sells plenty for under $10 a bottle) and pricey ones, like his recent offer of 2009 Romanée Conti at $25,821 per 12-bottle case. (“Please limit requests to 1×12-pack per person,” said the accompanying order information, as if that were necessary.)

Rimmerman makes ordering easy enough, and also remarkably human: every offer says something like, “reply to this e-mail or send Nicki a note,” referring to his longtime assistant. But he also requires a tolerance for deferred gratification, shipping only twice a year, once in the spring and once in the fall, when Rimmerman says extreme heat or cold are less likely to destroy the wine in transit. In his wine offerings, he told me in a personal e-mail, he strives to reach his entire demographic simultaneously, “from Brooklyn ‘coolio’ (Williamsburg, Red Hook) to waning coolio (Park Slope) to Upper West Side to Scarsdale,” as he puts it, “with vastly different levels of disposable income.” Thus, obscure cheap wines for “the lowest-disposable-income group with the most cutting-edge knowledge of the wine world and the most time to spend on their computer (23-to-33-year-olds in Brooklyn, the Mission, Echo Park in L.A., etc.)” are offered in the same e-mail as wildly expensive ones, the whole thing stitched together by, say, “Beach Boys songs and bizarre, little-known facts or idiosyncrasies of Brian Wilson.”

Rimmerman was born in 1966 and raised on Chicago’s North Shore until his parents divorced and Rimmerman’s mother and stepfather took him to live in rural Wisconsin. He remained close to a father he describes, with characteristic brio, as a kind of supersalesman — claiming he invented commodities-trading algorithms “before computers,” created “one of the first pro-athlete management agencies” only to sell it before it became profitable, and helped the N.F.L. develop the whole idea of staging exhibition games overseas.

“He made millions and he lost millions and he was never afraid to go for it,” Rimmerman told me. “That’s definitely my personality and the impetus for Garagiste — no fear, believing in yourself.”

Garagiste itself emerged from an ad hoc wine-tasting club at the University of Wisconsin-Madison. After finals one year, Rimmerman and a few classmates celebrated by pooling money to buy a 1979 Krug Champagne and 1982 Dom Pérignon. “It was one of those ‘Oh, my God’ moments, there’s something of a higher order here,” he said. “I sat with those wines for 15 hours.”

It soon emerged among the group that Rimmerman had the most sensitive palate and a gift for spinning great stories about interesting wines, and it wasn’t long, he says, before he found himself faxing an informal wine letter to friends scattered around the country.

Three tips from Jon Rimmerman
for buying wine at your local shop.


AVOID THE MIDDLE

The eye-level rack at your market is usually dominated by shelf space “owned” by local distributors. Some of the top, smaller production examples are represented by tiny distributors that cannot pay slotting or marketing fees demanded by grocers for eye-level rack space. Beat them at their own game — look at top and bottom shelves or in poor visibility areas of a display — my gut tells me you will find a number of gems lying in wait.

 

ALCOHOL CAN FOOL YOU

High alcohol does not equal high interest. Alcohol can obfuscate the true nature and nuance of a wine — even with normally high-alcohol examples like Chateauneuf-du-Pape. Alcohol levels have risen to blackout levels over the last 10 to 15 years, spurred by a variety of sparks: a certain critic’s preference and possibly global warming. Don’t give in to the rise! Challenge yourself to look for reds under 14 percent and whites under 13 percent. My sweet spot is 12½ to 13½ percent for reds, 11½ to 12½ percent for dry whites.

 

TRUST OTHER DRINKERS

Use your smartphone to create a level playing field: community-based Web sites like Eric Levine’s CellarTracker (cellartracker.com) give you the opinions of your peers, those who have actually tasted the wine in question — not the opinion of a distributor or a magazine. You can easily pull them up while standing in front of a wall of a dozen unknown New Zealand sauvignon blancs, and all will start to make sense in a jiffy.

During Rimmerman’s years at DePaul University law school, he landed a summer job in Chicago, at the first American Starbucks outside Seattle. While jerking espresso and sweeping the floors there, he happened to meet the company’s founder, Howard Schultz.

“So I was part of the whole genesis of, whoa, what Starbucks was,” Rimmerman says. “I’ll never forget the incredible passion he had for a very simple idea that he was absolutely 100 percent certain would be important to the culture of the United States in the next 20 years.” Rimmerman says he learned from his time at Starbucks “the beauty of retail marketing, of conceptual ideology with consumer goods,” an idea that can be roughly translated as defining a crystal-clear brand identity and then ensuring that everything from the product to customer relations reinforces it.

Rimmerman was living in Seattle when his own simple idea fell into place. “That was right around the same time as the whole Seattle, Nirvana, Internet, you know, boom, of incredible creative energy,” he says, aligning his own origin story with those. “I met all these incredible, smart people inventing all these things called, like, Adobe. I mean, Bezos was running Amazon out of a garage. And everybody knew them!”

He realized he had the seeds of his own start-up in that wine letter. He’d already switched to e-mail, picking up several hundred new subscribers who often asked where to buy the wines. It was a no-brainer to start selling them. All he needed now, Rimmerman decided, was a clear sense of mission — a brand identity, in other words, centered on making the world a better place instead of just making a buck. Rimmerman claims that he made two lists — things he liked about the wine business, and things he did not — and decided that his company’s goal would be to transform the industry until his “don’t like” column was empty.

He’s a little vague about what was actually on those lists — you suspect that he has, to be generous, lost the originals. But he is consistent in characterizing his primary don’t-like: an intolerable gulf between winemakers and wine drinkers caused by a legally mandated separation of importers, distributors and retailers. “It’s one of the only systems in our country — women’s right to vote, all these things that have changed over time, the whole racial thing that happened in the ’60s — that the government never wanted to look at,” Rimmerman says.

By cutting out all those middlemen, Rimmerman could offer lower prices at higher profit margins, while becoming the “Sub Pop Records of the wine trade,” scouting talent and connecting old-school vintners to discriminating consumers. He could also be “the Erin Brockovich of the wine trade,” pointing out that pesticides have been found in bottled wines at every price point including world famous Bordeaux. In addition, many wineries use additives and processing agents like egg whites, milk, fish extract, animal gelatin (sorry, vegetarians), sugar, toasted oak powder, the color-enhancer Mega Purple and dimethyl dicarbonate, a chemical so toxic that merely inhaling it can be fatal. Bringing attention to all this, and to little guys doing it the old-fashioned way, Rimmerman appeals to the moral and intellectual vanity of his subscribers before even mentioning anything as tawdry as the per-bottle price. Only a chump would buy top-dollar status-symbol wines secretly saturated with chemicals instead of the far-cheaper real stuff favored by true insiders.

Rimmerman is neither the first nor the only wine merchant to have built a brand identity around the distinction between industrial and artisanal winemaking. Kermit Lynch, for example, a minor legend in the international wine trade from Berkeley, Calif., who says he has never heard of Rimmerman, has been importing French wines of this stripe since the 1970s. Then there is Chambers Street Wines, a brick-and-mortar retail shop in Manhattan that makes a comparable commitment to selling noninterventionist wines.

But Rimmerman has discovered some of the great noninterventionist standard-bearers, like Frank Cornelissen, who was toiling in obscurity high above the snow line on Sicily’s volcanic Mount Etna, before Rimmerman found him resurrecting abandoned vineyards and vinifying the juice in the strictest of Old World methods. According to Alder Yarrow, a Garagiste fan and author of the influential wine blog Vinography: “Cornelissen just takes a bunch of grapes, throws them in buckets, stomps them, comes back six months later and puts it in bottles. They are the most natural wines in the world.” The result is cloudy with visible sediment, and even prone to refermenting in the bottle. “But when they are good, they are unbelievable!” Yarrow says. “Rimmerman likes that kind of thing, wines that to most Americans are like eeuwee!”

Rimmerman considering a cask of Sagrantino in Montefalco, in central Italy.

Photograph by Shira Young

Of all the purported nicknames Rimmerman offers, the most telling may be “the Great and Powerful Vinous Oz” — celebrating, as it does, a certain Emerald City quality in Garagiste. Rimmerman has doubtless traveled around the world seeking great wine, but he also appears to find at least some through traditional distributors and importers — one of whom, asking to remain anonymous because he does business with Rimmerman, explained that Garagiste can be a convenient way to move a lot of inventory in a big hurry.

Alice Feiring, a New York-based wine writer, claims that Rimmerman has even discovered wines through her blog posts. (Rimmerman, who considers Feiring a fellow traveler, insists the timing of their discovery was merely coincidental.) “He’s not a tastemaker,” she says. “He is picking up on a trend. He is a businessman.” Feiring adds, however, that she knows “people who are very, very, very faithful to him, and give him a lot of money all the time.” Other industry insiders have told me similar things, raising one of the greater curiosities of the Garagiste phenomenon: Rimmerman’s act seems to appeal most powerfully to people with no illusion about how it works. David Schildknecht, for example — one of the most prominent wine writers in the world and a critic for The Wine Advocate, and therefore a man deluged with free wine samples — chuckled over the phone, saying: “I buy wine from him regularly. . . . .It’s pretty amusing to me.” Michael Terrien, a boutique Napa winemaker, calls Rimmerman’s daily e-mails “wine crack,” adding that he has to unsubscribe periodically to stop the financial hemorrhage.

Rimmerman’s personal theory about how it all works — how the Garagiste business model and those idiosyncratic e-mails compel such vigorous spending — fetishizes the human element, the obvious imperfections, like telling his administrative assistant to leave typos and grammatical errors in his e-mail offers — preserving the immediacy of his writing — and never including photographs. “Psychologically, it’s very important,” he says. “If I told you that story but you didn’t like the look of the label” — Animale’s cat, say — you might doubt the pitch. (“This is something I’ve carried for 18 years,” Rimmerman told me, as if confessing a terrible secret. “I’ve never told anybody this.”) He also cites a broader cultural shift working in his favor — “It’s almost like ‘everything old is new again,’ ” he wrote in a personal e-mail to me. “Or the music scene going back to turntables or . . . vintage 1960s tube amplifiers — people crave warmth, whether its auditory or in business, and eventually they come around to what makes them feel good, what keeps them warm — sensory or mentally.”

This idea of analog musical warmth is central to his thinking. In Walla Walla, Wash., after a long morning among the giant grain silos, vast wheat fields, not-so-vast vineyards, and smelly horse corrals of the area’s rural fringes, we stopped at the relatively elegant Waters Winery. Jamie Brown, a vintner who made a living selling bootleg concert CDs during the Seattle grunge scene of the 1990s, is now a sort of Falstaffian rocker/poet/artiste who has sold many wines through Rimmerman. Inside the barrel-aging chamber, Rimmerman tasted multiple vintages of Waters syrah and cabernet, free-associating toward a sales pitch: “This is cabernet sauvignon for cabernet sauvignon’s sake . . . not for oak’s influence, Napa Valley, prestige, Robert Parker.” He spat into a floor drain and took a second stab: “This is the Old World that has come to America. This is like Ellis Island in Washington State. How about that for a quote? That’s a big thing for me to say, because I’ve never found that anywhere.”

Four months later, offering a Waters syrah called Tremolo, Rimmerman instead wrote about Monteverdi inventing musical tremolo about 400 years ago. “He never could have imagined . . . Liszt would use it as a palpitating piano technique or Bo Diddley on the guitar. From Floyd Rose reinventing the double-locking wheel, to the classic blackface circuitry of early 1960s Fender Twin Reverb amps (or Vox AC30, Silvertone, etc.).” He followed this arguably absurd but possibly masterful massaging of his audience with a reassurance to all that Tremolo had an impeccable Old World anti-mainstream taste — “mineral salts . . . natural (ripe) acidity, 12.5% alcohol.” Then he took a quick detour into his global travels — “scurrying about on back roads in Turkey, Croatia, Ribeiro, Sicily” — and made a brief pause to make sure we all knew he really had been in Walla Walla, personally, shaking that winemaker’s hand. “When I first sampled it a few months ago with Jamie,” Rimmerman wrote of the wine, “I was so taken with its truth that I asked to put the offer out then and there (on my BlackBerry, in typical Garagiste fashion).”

I have no recollection of this exchange, nor of any whispered conversation between Rimmerman and Brown beyond my earshot. But Rimmerman swears it happened and, at $39.99 a bottle, it almost certainly doesn’t matter.

Daniel Duane is the author of “How to Cook Like a Man: A Memoir of Cookbook Obsession.”

Editor: Ilena Silverman

Careers in Wine

The Case for Executive Assistants

Among the most striking details of the corporate era depicted in the AMC series Mad Men, along with constant smoking and mid-day drinking, is the army of secretaries who populate Sterling Cooper, the 1960s ad agency featured in the show. The secretary of those days has gone the way of the carbon copy and been replaced by the executive assistant, now typically reserved for senior management. Technologies like e-mail, voice mail, mobile devices, and online calendars have allowed managers at all levels to operate with a greater degree of self-sufficiency. At the same time, companies have faced enormous pressure to cut costs, reduce head count, and flatten organizational structures. As a result, the numbers of assistants at lower corporate levels have dwindled in most corporations. That’s unfortunate, because effective assistants can make enormous contributions to productivity at all levels of the organization.

At very senior levels, the return on investment from a skilled assistant can be substantial. Consider a senior executive whose total compensation package is $1 million annually, who works with an assistant who earns $80,000. For the organization to break even, the assistant must make the executive 8% more productive than he or she would be working solo—for instance, the assistant needs to save the executive roughly five hours in a 60-hour workweek. In reality, good assistants save their bosses much more than that. They ensure that meetings begin on time with prep material delivered in advance. They optimize travel schedules and enable remote decision making, keeping projects on track. And they filter the distractions that can turn a manager into a reactive type who spends all day answering e-mail instead of a leader who proactively sets the organization’s agenda. As Robert Pozen writes in this issue: A top-notch assistant “is crucial to being productive.”

That’s true not only for top executives. In their zeal to cut administrative expenses, many companies have gone too far, leaving countless highly paid middle and upper managers to arrange their own travel, file expense reports, and schedule meetings. Some companies may be drawn to the notion of egalitarianism they believe this assistant-less structure represents—when workers see the boss loading paper into the copy machine, the theory goes, a “we’re all in this together” spirit is created. But as a management practice, the structure rarely makes economic sense. Generally speaking, work should be delegated to the lowest-cost employee who can do it well. Although companies have embraced this logic by outsourcing work to vendors or to operations abroad, back at headquarters they ignore it, forcing top talent to misuse their time. As a longtime recruiter for executive assistants, I’ve worked with many organizations suffering from the same problem: There’s too much administrative work and too few assistants to whom it can be assigned.

 

 

Granting middle managers access to an assistant—or shared resources—can give a quick boost to productivity even at lean, well-run companies. Firms should also think about the broader developmental benefits of providing assistants for up-and-coming managers. The real payoff may come when the manager arrives in a job a few levels up better prepared and habitually more productive. An experienced assistant can be particularly helpful if the manager is a new hire. The assistant becomes a crucial on-boarding resource, helping the manager read and understand the organizational culture, guiding him or her through its different (and difficult) personalities, and serving as a sounding board during the crucial acclimation. In this way, knowledgeable assistants are more than a productivity asset: They’re reverse mentors, using their experience to teach new executives how people are expected to behave at that level in the organization.

Getting the Most from Assistants

Two critical factors determine how well a manager utilizes an assistant. The first is the executive’s willingness to delegate pieces of his or her workload to the assistant. The second is the assistant’s willingness to stretch beyond his or her comfort zone to assume new responsibilities.

Delegating wisely.

The most effective executives think deeply about the pieces of their workload that can be taken on—or restructured to be partially taken on—by the assistant. Triaging and drafting replies to e-mails is a central task for virtually all assistants. Some executives have assistants listen in on phone calls in order to organize and follow up on action items. Today many assistants are taking on more-supervisory roles: They’re managing information flow, dealing with basic financial management, attending meetings, and doing more planning and organizing. Executives can help empower their assistants by making it clear to the organization that the assistant has real authority. The message the executive should convey is, “I trust this person to represent me and make decisions.”

Not every executive is well-suited for this type of delegating. Younger managers in particular have grown up with technology that encourages self-sufficiency. Some have become so accustomed to doing their own administrative tasks that they don’t communicate well with assistants. These managers should think of assistants as strategic assets and realize that part of their job is managing the relationship to get the highest possible return.

Stretching the limits.

Great assistants proactively look for ways to improve their skills. When I was the assistant to Pete Peterson, the former U.S. commerce secretary and head of Lehman Brothers, I took night classes in law, marketing, and presentations to burnish my skills. Today I see executive assistants learning new languages and technologies to improve their performance working for global corporations.

 

 

In my work, I frequently encounter world-class executive assistants. Loretta Sophocleous is the executive assistant to Roger Ferguson, the president and CEO of TIAA-CREF; her title is Director, Executive Office Operations. She manages teams. She leads meetings. Roger says that he runs many decisions past Loretta before he weighs in.

Another example is Noreen Denihan, whom I placed over 13 years ago as the executive assistant to Donald J. Gogel, the president and CEO of Clayton, Dubilier & Rice, LLC. According to Don, Noreen fills an informal leadership role, has an unparalleled ability to read complex settings, and can recognize and respond to challenging people and circumstances. “A spectacular executive assistant can defy the laws of the physical world,” Gogel says. “She [or he] can see around corners.”

Trudy Vitti is the executive assistant to Kevin Roberts, the CEO Worldwide of Saatchi & Saatchi. Often when you ask him a question, he’ll say, “Ask Trudy.” He travels for weeks at a time and says that he has utter confidence in Trudy to run the office in his absence.

Compared with managers in other countries, those in the United States do a better job of delegating important work to their assistants—and of treating them as a real part of the management team. Outside the United States, educational requirements for assistants are less intensive, salaries are lower, and the role is more typically described as personal assistant.

You can often tell a lot about an executive’s management style—and effectiveness—from the way he interacts with his assistant. Can the executive trust and delegate, or does he micromanage? Do assistants like working for her, or does she have a history of many assistants leaving quickly or being fired? Not every boss–assistant relationship is made in heaven, but an executive’s ability to manage conflicts with an assistant can be an important indicator of his overall ability to manage people.

Finding the Right Fit

Hiring the right assistant can be a challenge. In some ways, it’s trickier than filling traditional management positions, because personal chemistry and the one-on-one dynamic are so important—sometimes more so than skills or experience.

Expert assistants understand the unspoken needs and characteristics of the people with whom they work. They have high levels of emotional intelligence: They respond to subtle cues and react with situational appropriateness. They pay close attention to shifts in an executive’s behavior and temperament and understand that timing and judgment are the foundation of a smooth working relationship. A good assistant quickly learns what an executive needs, what his or her strengths and weaknesses are, what might trigger anger or stress, and how to best accommodate his or her personal style. Good matches are hard to come by: That’s the reason so many good assistants follow an executive from job to job.

After many years of debriefing assistants who’ve been fired, I’ve identified several factors that make for bad relationships. The most common missteps an assistant makes are misreading the corporate culture, failing to build bridges with other assistants, failing to ask enough questions about tasks, agreeing to take on too much work, and speaking to external parties without authorization. Bosses usually contribute to these deteriorating relationships by not being open in their communications or not being clear about expectations.

There’s an assistant I placed recently who’s having trouble developing the right relationship with her boss. The executive called me and said, “Melba, I expected her to read through these memos and then get them out very quickly to my managers. But she left them on my desk, didn’t call me over the weekend, and didn’t send them out.” I asked the assistant about it, and she said, “He didn’t tell me it was important—I can’t read someone’s mind.” But in fact, in this job you’re supposed to be able to read minds—or, at the very least, you’re supposed to ask questions.

Simply put, the best executive assistants are indispensable. Microsoft will never develop software that can calm a hysterical sales manager, avert a crisis by redrafting a poorly worded e-mail, smooth a customer’s ruffled feathers, and solve a looming HR issue—all within a single hour, and all without interrupting the manager to whom such problems might otherwise have proven a distraction. Executive assistants give companies and managers a human face. They’re troubleshooters, translators, help desk attendants, diplomats, human databases, travel consultants, amateur psychologists, and ambassadors to the inside and outside world.

After years of cutting back, companies can boost productivity by arming more managers with this kind of help—and executives who are fortunate enough to have a skilled assistant can benefit by finding ways to delegate higher-level work to him or her. Executive–assistant relationships are business partnerships: Strong ones are win-wins between smart people. In fact, they’re win-win-wins because ultimately the companies reap the benefits.

——————————

Melba J. Duncan is the president of The Duncan Group, a retained search and consulting firm specializing in senior management support resources, and the founder of the Duncan Leadership Institute, which offers training for administrative support staff. She is the author of The New Executive Assistant .

 

Careers in Wine

Follow a Career Passion? Let It Follow You

IN the spring of 2004, during my senior year of college, I faced a hard decision about my future career. I had a job offer from Microsoft and an acceptance letter from the computer science doctoral program at theMassachusetts Institute of Technology. I had also just handed in the manuscript for my first nonfiction book, which opened the option of becoming a full-time writer. These are three strikingly different career paths, and I had to choose which one was right for me.

Daniel Rosenbaum for The New York Times

Cal Newport, a computer science professor at Georgetown, says many people lack a “true calling” but have a sense of fulfillment that grows over time.

For many of my peers, this decision would have been fraught with anxiety. Growing up, we were told by guidance counselors, career advice books, the news media and others to “follow our passion.” This advice assumes that we all have a pre-existing passion waiting to be discovered. If we have the courage to discover this calling and to match it to our livelihood, the thinking goes, we’ll end up happy. If we lack this courage, we’ll end up bored and unfulfilled — or, worse, in law school.

To a small group of people, this advice makes sense, because they have a clear passion. Maybe they’ve always wanted to be doctors, writers, musicians and so on, and can’t imagine being anything else.

But this philosophy puts a lot of pressure on the rest of us — and demands long deliberation. If we’re not careful, it tells us, we may end up missing our true calling. And even after we make a choice, we’re still not free from its effects. Every time our work becomes hard, we are pushed toward an existential crisis, centered on what for many is an obnoxiously unanswerable question: “Is this what I’m really meant to be doing?” This constant doubt generates anxiety and chronic job-hopping.

As I considered my options during my senior year of college, I knew all about this Cult of Passion and its demands. But I chose to ignore it. The alternative career philosophy that drove me is based on this simple premise: The traits that lead people to love their work are general and have little to do with a job’s specifics. These traits include a sense of autonomy and the feeling that you’re good at what you do and are having an impact on the world. Decades of research on workplace motivation back this up. (Daniel Pink’s book “Drive” offers a nice summary of this literature.)

These traits can be found in many jobs, but they have to be earned. Building valuable skills is hard and takes time. For someone in a new position, the right question is not, “What is this job offering me?” but, instead, “What am I offering this job?”

RETURNING to my story, I decided after only minimal deliberation to go to M.I.T. True to my alternative career philosophy, I was confident that all three of my career options could be transformed into a source of passion, and this confidence freed me from worry about making a wrong choice. I ended up choosing M.I.T., mainly because of a slight preference for the East Coast, but I would have been equally content heading out to Microsoft’s headquarters near Seattle. Or, with the advance from my first book, I could have hunkered down in a quiet town to write.

During my initial years as a graduate student, I certainly didn’t enjoy an unshakable sense that I had found my true calling. The beginning of doctoral training can be rough. You’re not yet skilled enough to make contributions to the research literature, which can be frustrating. And at a place like M.I.T., you’re surrounded by brilliance, which can make you question whether you belong.

Had I subscribed to the “follow our passion” orthodoxy, I probably would have left during those first years, worried that I didn’t feel love for my work every day. But I knew that my sense of fulfillment would grow over time, as I became better at my job. So I worked hard, and, as my competence grew, so did my engagement.

Today, I’m a computer science professor at Georgetown University, and I love my job. The most important lesson I can draw from my experience is that this love has nothing to do with figuring out at an early age that I was meant to be a professor. There’s nothing special about my choosing this particular path. What mattered is what I did once I made my choice.

To other young people who constantly wonder if the grass might be greener on the other side of the occupational fence, I offer this advice: Passion is not something you follow. It’s something that will follow you as you put in the hard work to become valuable to the world.

Cal Newport is the author of “So Good They Can’t Ignore You.”

Luxury Wine

Recovery is upon us…that is if you are producing…

Financial Symposium attendees hear details of who benefits most from ongoing sales boom

 by Paul Franson

Napa, Calif.—The Wine Industry Financial Symposium held Monday and Tuesday was itself an indication of the health of the recovering wine business. Fully 330 lenders, growers, wine companies and suppliers attended the conference, up from 260 last year.

Vineyard executive David Freed started the symposium 21 years ago to improve communication between wine businesses and sources of capital. The only surprise this year was that more wine executives didn’t attend to gain valuable insights and rub elbows with bankers and other lenders who could make the difference between success and distress sales of their businesses.

Big three’ grew 8% Freed noted that domestic wine producers are increasingly splitting into two segments: the top 16 to 20 who are good at building brands and producing efficiently in volume, and the rest, whom he said “exist in the luxury space.”

He noted that the big three—Gallo, The Wine Group and Constellation—grew 8% on a huge base of 150 million cases. “They represent in real terms almost half the industry’s growth.” The next five players—Trinchero, Bronco, Treasury, Delicato and Kendall-Jackson—represent 51 million gallons and grew at 3.5%. “They were very successful, too,” Freed noted, with Trinchero doing an outstanding job.

He also noted that Kendall-Jackson had the lowest growth from that group, but conceded, “They seem to be managing for profitability.”

The next players—Don Sebastiani, J. Lohr, Bogle, Charles Krug (Peter Mondavi family), Diageo’s Beaulieu and Sterling, Korbel and Fetzer—grew 1.3%.

That doesn’t leave much for smaller wineries.

In a panel discussion of lender representatives, Perry DeLuca from the Wells Fargo Bank Wine Industry Group assessed winery growth, too. He noted that it’s tied to increased retail sales, U.S. wine exports and California winery shipments, all of which have long-term trends going up.

DeLuca said the top 10 wine companies produced 222 million cases in 2011, up 7% from 2010. These companies have been making acquisitions, mostly with cash, to buy vineyards and winemaking facilities. Interest rates are very low, so money in the bank earns little, and these cash-rich wineries are investing in assets as a more likely way to make money.

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