Roundtable Series: South Florida CEOs ready to embrace ...€¦ · These were the main issues...
9
Wragg & Casas | Strategic Communications March 16, 2018 Roundtable Series: South Florida CEOs ready to embrace innovation in uncertain economic times By: Brian Bandell Even the most successful CEOs are reluctant to predict where the economy is heading over the long term, but it’s clear that disruptive technologies will continue to throw curveballs at companies. From Uber and Airbnb to e-commerce and bitcoin, innovative products can threaten traditional business and create new money-making opportunities. Company leaders must balance investing in cutting-edge technology with the health of the corporate balance sheet, understanding that a recession can occur when least expected. In the end, it comes down to leadership. If a CEO can strongly motivate employees and build a team that develops new ideas, the company stands a better chance to endure both good and bad times. These were the main issues discussed by 11 South Florida CEOs at the Business Journal’s CEO Roundtable on March 2. Sponsored by Comcast Business, the panel was moderated by Editor-in-Chief Mel Meléndez at the SFBJ’s Miami office. It is part of the Business Journal’s ongoing Roundtable Series, where CEOs, CFOs and HR directors shed light on salient topics of interest to our readers.
Transcript of Roundtable Series: South Florida CEOs ready to embrace ...€¦ · These were the main issues...
Wragg&Casas|StrategicCommunications
March16,2018
RoundtableSeries:SouthFloridaCEOsreadytoembraceinnovationinuncertaineconomictimes
By:BrianBandell
EventhemostsuccessfulCEOsarereluctanttopredictwheretheeconomyisheadingoverthelongterm,butit’sclearthatdisruptivetechnologieswillcontinuetothrowcurveballsatcompanies.
FromUberandAirbnbtoe-commerceandbitcoin,innovativeproductscanthreatentraditionalbusinessandcreatenewmoney-makingopportunities.Companyleadersmustbalanceinvestingincutting-edgetechnologywiththehealthofthecorporatebalancesheet,understandingthatarecessioncanoccurwhenleastexpected.
Intheend,itcomesdowntoleadership.IfaCEOcanstronglymotivateemployeesandbuildateamthatdevelopsnewideas,thecompanystandsabetterchancetoendurebothgoodandbadtimes.
Thesewerethemainissuesdiscussedby11SouthFloridaCEOsattheBusinessJournal’sCEORoundtableonMarch2.SponsoredbyComcastBusiness,thepanelwasmoderatedbyEditor-in-ChiefMelMeléndezattheSFBJ’sMiamioffice.ItispartoftheBusinessJournal’songoingRoundtableSeries,whereCEOs,CFOsandHRdirectorsshedlightonsalienttopicsofinteresttoourreaders.
2Roundtable Series: South Florida CEOs ready to embrace innovation in uncertain economic times
Wragg&Casas|StrategicCommunications
CEORoundtable031618MeetthePanel
TonyL.Argiz
ChairmanandCEO,MBAF
1450BrickellAve.,18thfloor,Miami33131
(305)373-5500
IssaAsad
CEO,QLinkWirelessLLC/QuadrantHoldings
499E.SheridanSt.,Suite400,DaniaBeach33004
(954)482-4255
TonyCho
PresidentandCEO,Metro1
120N.E.27thSt.,Suite200,Miami33137
(305)909-6775
Wragg&Casas|StrategicCommunications
March16,2018
AdrianEsquivel
Chiefexpert,TECKpert
2100CoralWay,PH701,Miami33145
(786)393-5826
IgnacioGarcia-Menocal
CEO,GroveBayHospitality
2640S.BayshoreDive,Suite302,Miami33133
(786)866-9854
CalixtoGarcia-Velez
ExecutiveVP,FirstBankFlorida
701WaterfordWay,Suite800,Miami33126
(305)280-0060
MarkJ.Gemignani
CEO,DominionAG
President,DominionBuilders
4942LeJeuneRoad,Suite203,CoralGables33146
(305)661-2700
WendyKallergis
PresidentandCEO,GreaterMiamiandtheBeachesHotelAssociation
1674MeridianAve.,Suite420,MiamiBeach33139
4Roundtable Series: South Florida CEOs ready to embrace innovation in uncertain economic times
Wragg&Casas|StrategicCommunications
(305)531-3553
AlanB.Levan
ChairmanandCEO,BBXCapitalCorp.
Chairman,BluegreenCorp.
401E.LasOlasBlvd.,FortLauderdale33301
(954)940-4000
DevMotwani
PresidentandCEO,MerrimacVentures
2434E.LasOlasBlvd.,FortLauderdale33301
(954)522-6556
JimmyTate
President,TateCapital
1175N.E.125thSt.,Suite102,NorthMiami33161
(305)891-1107
Companyleadersprepareforshiftsintheeconomy
TheGreatRecessionwasofficiallydeclaredoverin2009,buttheeconomicdevastationlingeredlongenoughtokeepitfreshinthemindsofmanySouthFloridaCEOs.
Thetri-countyregion,likemuchoftheU.S.,hasexperiencedprosperityforaboutfiveyears.Withconsistentjobgrowth,risingrealestatepricesandhighersalesformanycompanies,there’salottocelebrate.
ButwhilelocalCEOsremainoptimisticabouttheeconomy’soutlook,theyrememberthatdownturnscancomeswiftly–andwhenthey’releastexpected.
TonyL.Argiz,chairmanandCEOofMiami-basedaccountingfirmMBAF,saidfederaltaxcutsshouldboosteconomicgrowthinSouthFloridathisyearandin2019.Still,theunemploymentrateissolow
Wragg&Casas|StrategicCommunications
March16,2018
thatit’sbeendifficulttofindemployees.Companiesmustofferhigherwagesandbenefitstoretaintalentinthiscompetitiveenvironment,hesaid.
ThefederaltaxcutsallowedDaniaBeach-basedQLinkWirelessLLCtohire80peopleinthepastthreemonths,saidIssaAsad,CEOofthewirelessserviceprovider.Thehardestpositionstofillaretechnologyworkers,headded.
Whilealloftheeconomicindicatorsappearstrong,realestatedeveloperJimmyTate,presidentofMiami-basedTateCapital,saidhehasanuneasy“gut”feelingthatsomethingisn’tright.So,he’skeepinghiscompanylean,justincase.
“Youhavetobesmartanddecreaseinventoryandincreasecapitalreserves,”Tatesaid.“2008taughtusitcanhappenquicklyandalotofexternalforcescancomeintoplay.Youneedlotsofcashtoprotectyourself.”
ThatextralevelofcashcertainlyhelpedGroveBayHospitalityoverthepasttwoyears.Thecompany,whichownsrestaurantsincludingAmericanHarvest,StiltsvilleandGlass&Vine,sawalossofdinersduetotheZikavirusscareandHurricaneIrma,butitstillpaidemployeesbecauseitwasfinanciallyprepared,saidIgnacioGarcia-Menocal,CEOoftheMiami-basedcompany.
BBXCapitalCorp.(NYSE:BBX)ChairmanandCEOAlanB.LevanguidedhiscompanythroughtheGreatRecession,althoughthatrequiredsellingoffBankAtlanticandsomeotherbusinesses.NowtheFortLauderdale-basedcompanyisonagrowthspurt,acquiringavarietyofbusinesses,fromchocolatestopizzatorealestatedevelopment.
Levaniswellawarethatanotherdownturncouldcomeatanytime.
“Wesurvivedthelastrecession,butwedidn’thavealotofextracasharoundtotakeadvantageofopportunities,”Levansaid.“Thistime,weexpecttosurviveitandbewell-stockedwithreservestotakeadvantageoftheopportunities.”
There’salreadybeenaslowdownincommercialrealestatedeals,asmanysellershaveunrealisticexpectationsonpricing,saidTonyCho,CEOofMiami-basedbrokerageanddeveloperMetro1.AfterarapidincreaseinpricesinMiami’surbancoreinrecentyears,sellersexpectthatvalueswillcontinuegrowingatsimilarlevels.Theproblemisthatlendershavebeenmoreconservativeinfinancingdeals,sotherehavebeenstandstillsinmanynegotiations,hesaid.
“Ifthe[FederalReserve]raisesrates,thatwillhaveadramaticimpact,”Chosaid.“Theyaresoaddictedtothislow-rateenvironment,whichisnotsustainable.”
Politicscanalsomakewavesintheeconomy,especiallywhenitimpactstheinternationalcommercethatSouthFloridadependson.
DevMotwani,presidentandCEOofFortLauderdale-basedrealestatedeveloperMerrimacVentures,saidforeignbuyershavebeenahugesourceofcondopurchasesthroughoutSouthFlorida.Recently,onehigh-endforeignbuyerexpressedconcernthatachangeinU.S.immigrationlawswouldmakeitdifficultforhimtobringhisfamilywithhimtotheU.S.
“Peopleareturnedoffbytherhetoricandnotfeelingwelcome,”Motwanisaid.
6Roundtable Series: South Florida CEOs ready to embrace innovation in uncertain economic times
Wragg&Casas|StrategicCommunications
Inthebankingworld,internationaldepositorsfeeltheirmoneyisn’twelcomeintheUnitedStatesbecausethefinancialregulationsaresoburdensome,saidCalixtoGarcia-Velez,executiveVPofFirstBankFlorida,theMiami-baseddivisionofFirstBankPuertoRico(NYSE:FBP).Internationaldepositscanbeusedtomakeloanslocally,soreducingthisimportantsourceofcashslowsthegrowthofbanks,headded.
Ifacompanycouldbeadverselyimpactedbypoliticsorregulations,it’simportantthatexecutivesspeakup,someoftheCEOssaid,addingthattheimmigrationrhetoriccouldadverselyimpacttourismandotherbigindustriesinSouthFlorida.
WithabouthalfofMiami-DadeCountyvisitorscomingfrominternationalmarketsandmanyofthelocalhospitalityworkersbeingimmigrants,WendyKallergis,presidentandCEOoftheGreaterMiamiandtheBeachesHotelAssociation,saidithasbeenpassionatelysupportingallowing“dreamer”immigrantsandthosewithtemporaryprotectedstatustostay,astheyareanimportantpartofthehospitalityworkforce.
CEOsdon’tfeardisruption,theyadapt
Ifanew,disruptivetechnologyisemerging,theworstthingforaCEOtodowouldbeignoreit–especiallyifitdirectlyimpactstheirbusiness.
Traditionalindustriesoftentrytothrowuproadblocksthatstopinnovativecompetitorsintheirtracks,butthatrarelyworksifthepublicembracesthenewtechnology.Thinkofthelegalandpoliticalmethodsusedagainstdigital/streamingmusic,ride-sharingandhome-sharing.Nomatterwhatjudgesorpoliticianssaid,itwasnearlyimpossibletoblockdigitalcommerce.
Evenifadisruptivetechnologydoesn’tcompetewithanindustrydirectly,itcouldhavemajorramificationsforit.Forinstance,manyrealestatedevelopersarechanginghowtheydesignprojectsinresponsetoride-sharingandtheanticipationofdriverlesscars.
“Theword‘disruption’shouldscareusalltodeath,”saidAlanB.Levan,chairmanandCEOofFortLauderdale-basedBBXCapitalCorp.(NYSE:BBX)andchairmanofBluegreenCorp.(NYSE:BXG).“Uberdisruptedtaxis.Airbnbismakingprogressagainsttraditionalhospitality.AmazonistotallydisruptingWalmart,andWalmartisthelargestcompanyintheworld.”
Insomecases,jumpingintoinnovativetechnologyearlycangiveacompanyahugeadvantage.
MarkJ.Gemignani,presidentofDominionBuilders,startedDominionAGtoserveasageneralcontractorforindoorgrowhousesthatwereproliferatingaroundthenationformedicalmarijuanaproduction.He’skeepingacloseeyeonnewbuildingtechnologies,suchas3-Dprintingofentirestructures,becausetheymightbringdowncosts.
Startingoutasadisruptorisn’teasy.
QLinkWirelessprovidesfreesmartphonesandlow-costwirelessservicetopeoplewhoqualifyforfederalassistance.Whenthecompanylaunchedin2011,ittookalongtimetopersuadetheFCCtoapproveitsbusinessplan,anditcouldn’tsecureventurecapitalfinancing,CEOIssaAsadsaid.Theprincipalsinvestedtheirmoney.Nowthey’repullinginabout$200millioninrevenueayear,withnocreditlines,hesaid.
“Millennialsarenotlookingforthestatusquoorthedinosaurwayofdoingbusiness,”Asadsaid.“Youmustretoolyourbusiness.It’saboutlookingforwardandnotbeingantiquated.”
Wragg&Casas|StrategicCommunications
March16,2018
SouthFlorida’spositionasagatewaytointernationalbusinessmakesinnovationintechnologyevenmoreimportant.
AdrianEsquivel,chiefexpertofMiami-basedconsulting,softwaredevelopmentandonlinesupportfirmTECKpert,saidmanySouthAmericancompaniesarefastertoembracedisruptivetechnologies,suchasblockchainanddigitalcurrencies.HeoftendrawsonideashefindsoverseasandappliesthemtotheU.S.
TECKpertregularlycarvesoutawholedayandallowsateamofemployeestodevelopanewconceptorpieceoftechnology.Evenifthatproductisn’tusable,attheendoftheday,itfostersinspirationandcreatesanopportunitytolearnsomethingnew,hesaid.
LevansaidmanyofthebestideasatBBXcomefromitsyoungestemployees.It’simportantthatseniorexecutiveslistentomillennialsandnotdrownouttheirvoices,headded.
“Ihiremillennialsandkeepthemaroundallthetimeandrunideasbythem,”saidDevMotwani,presidentandCEOofFortLauderdale-baseddeveloperMerrimacVentures.“Thepaceofchangeisthepaceoftheirlife.”
Trueleadershipcan’tbebought,topexecutivessay
WhenTonyChofoundedhisrealestatebrokerageatage26,hethoughttheemployeeswouldloyallyfollowhisdirectionsbecausehepaidthem.Butthatwasn’tthecase–atall.
Noonewilllistentoyousimplybecauseyousigntheirpaycheck,saidCho,presidentandCEOofMiami-basedMetro1.Youmustearntheirrespect.
IfemployeesfollowyousimplybecauseyouhavetheCEOtitle,thenthey’lldothebareminimumtogetby,saidIgnacioGarcia-Menocal,CEOofMiami-basedrestaurantgroupGroveBayHospitality.Peoplewillworkmuchharderforleaderswhodisplayshonestyandintegrity,andshowtheyhavethebestinterestsofemployeesinmind,hesaid.
TheCEOsstressedthatrecognizingemployeesforgoodwork,whetherwithbonusesorawards,helpsimprovemorale.Thebossshouldencourageemployeesofalllevelstospeaktheirminds,sovisittheirdesksoftenandconsiderchangingtheworkplacetoan“openoffice”format,theCEOssaid.Mostimportant:Don’tplaceyourselfinanivorytowerwhereyoucan’tbereached.
AccordingtoasurveyofworkersbyKollective,62percentexpectface-to-facecommunicationwiththeCEO.Justunderhalfofthosesurveyedweresatisfiedwiththelevelofcommunicationfromtheexecutiveteam.
JimmyTate,CEOofNorthMiami-basedTateCapital,saidoneofthefirstthingshedidafterbuyingtheBahiaMarFortLauderdaleBeachhotelwasspeakwiththeemployees–everyonefromthehousekeeperstothedishwashers–abouthowtoimproveservice.
“Thebigthingishumility,”saidTonyL.Argiz,chairmanandCEOofaccountingfirmMBAF.“Whateveryoudoinlife,youhavetocareaboutpeopleandcareaboutthecommunity.Youarenevergoingtobebetterthanyourpeople.Theyaretheoneswhomakeupyourcompany.”
8Roundtable Series: South Florida CEOs ready to embrace innovation in uncertain economic times
Wragg&Casas|StrategicCommunications
It’salsoimportantthataCEOhastheproperperspective.Whenengagedinthedailygrind,itcanbedifficulttoseethebigpictureandunderstandhowthingscouldbedonebetter.
CalixtoGarcia-Velez,executiveVPofFirstBankFloridainMiami,saidhedoeshisbestthinkingwhileonvacation.
“Findthetimetodedicatetothinkingandhelptheteamthinkabouttwoorthreeyearsfromnow,”hesaid.
QUOTABLES
What’sthebestthingaboutbeingaleader?
•TonyArgiz,MBAF:Whenemployeesbuyahomeandeducatetheirkidsatgooduniversities,youknowyouhavebeensuccessful.
•IgnacioGarcia-Menocal,GroveBayHospitality:AserverwhowaswithusforsevenyearstoldmeMonday:“Isavedenoughmoneytobuymyownhouse.”Thisisaguywithahigh-schooleducation.Iwassuperproudofhim.
•WendyKallergis,GreaterMiamiandtheBeachesHotelAssociation:Igettotalktocolleaguesacrossthecountry.It’sexcitingbecauseitwillstrengthenourvoice,aswell.
What’sbeenthebiggestsurpriseofbeingaCEO?
•DevMotwani,MerrimacVentures:Howharditistofindgoodtalent.
•CalixtoGarcia-Velez,FirstBankFlorida:Therewardingnatureoftheimpactyouhaveonpeople’slives.
•MarkJ.Gemignani,DominionAG:Peoplearen’talwayswhattheyseemtobe.Ifyouhaveagutfeelingaboutavendororaclientoranemployee,yourgutfeelingisusuallyright.
WhatwastheworstadviceyoueverreceivedasaCEO?
•CalixtoGarcia-Velez:Itisverylonelyatthetop.Ifoundthatnottobetrueatall.
•AdrianEsquivel,TECKpert:In2010,don’tbuyBitcoin.
•DevMotwani:Thatasmallerorganizationwasagoodwaytooperateanditkeptmefromhiringkeypositions.It’sthepeoplethatgrowanorganization.
•IssaAsad,QLinkWireless:Tooutsourcecertainstaffing.Ihatedhavingitremovedfromtheoffice.Inoutsourcing,yougetwhatyoupayfor.
Istheresomethingyouwishyouhaddonedifferently?
•AlanB.Levan,BBXCapitalCorp.:Iwoulddoittheexactsameway,includingtheconferencecallthatcostmea10-yearbattlewiththeSEC.
•IgnacioGarcia-Menocal:Hiringkeypositionsearlier.
Wragg&Casas|StrategicCommunications
March16,2018
•CalixtoGarcia-Velez:Embracingtechnologyanddisruptiveinnovationsoonerinmyindustry.
https://www.bizjournals.com/southflorida/news/2018/03/15/ceo-roundtable-03-16-2018.html
