Five Top Characteristics of Top Cannabis Executives

The Uniqueness of the Cannabis Industry

Several high-profile CEOs who cross over into the cannabis sector are often left in shock in the first few months. This is true even after they’ve achieved significant exploits in other established industries. This is because the traditional business rules just don’t work in the cannabis sector.

Executives in this new industry must come to terms with the challenges of each marketplace. They must also consider how it influences their decision-making process. Each state-legal market, for example, comes with its fair share of challenges such as:

• Consumer demographic
• Banking dynamic
• Licensing structure
• Market history
• Regulatory setting
• Government authority

Imagine a scenario where a leader is steering through these potential bottlenecks without the knowledge of what to do next. Well, the business may end up grappling with poor returns. Or worse, it may face hefty fines from the regulator in cases of a regulatory violation. This ultimately pushes a lot of leaders out of the industry because they are unable to grasp these differences and challenges.

That being said, here are some of the vital characteristics that every top cannabis executive must possess:

1. Versatility

A key leadership attribute that defines every successful CEO in the cannabis industry is versatility or the ability to adapt. The emerging weed industry is heavily regulated. This means it is laden with constant rules and regulations. Cannabis is still illegal under federal law and classified as a schedule 1 substance.

For this reason, the new industry regulations may pose myriad business operational challenges. Therefore, a good executive must be able to quickly adapt and work around any new regulations. This calls for leaders who can outwit the unknown constantly.

Apart from the industry regulations, a lot of innovative products are flooding the weed sector. For example, cashless ATMs are now the go-to option for cannabis payments. This is the best alternative, especially with the fact that banks and credit cards want nothing to do with cannabis companies. This is a perfect example as to why leaders should advance and pick new technologies as called for by new situations.

2. Empathy

Irrespective of the industry, empathy is a key skill for any leader. And nowhere is this skill more necessary than in the cannabis industry. This is because the cannabis space is notorious for high employee turnover. And to stem this problem, a leader should empathize with staff and address problems like stress and burnout. By doing so, the leader can forge a more unified team that works in harmony. This makes the employees feel appreciated and understood.

Empathy also comes in handy when a leader is trying to understand the customer base and establish connections in the cannabis community. The motivations and needs of a senior pot user in a medical state, for example, will differ from those of a younger user looking for a mind-blowing high. Therefore, the best way to create experiences that contribute to meaningful connections is for leaders to understand their community. This, in turn, requires empathy.

Moreover, senior executives should mentor and improve existing talent. Leaders who mentor others more often than not attract other talented employees to their company.

3. Integrity

Integrity is a top leadership skill. This is because employees are motivated to work for an ethical leader. Likewise, ethical companies want to do business with like-minded companies. For this reason, the top leadership of Cannabusinesses should ensure their businesses are built on the platform of integrity and compliance. An ethical cannabis leader will ensure that all the company’s products are lab-tested. This will build consumer trust in the safety and legality of the said products.

4. Pragmatism

Some leaders are idealistic, while others are pragmatic. Idealistic leaders often formulate the vision of the preferred outcome. They aren’t specifically focused on the process of getting there, but rather concentrate on the end goal only.

On the other hand, pragmatic leadership is focused on every step leading to the ultimate goal. Take, for instance, the steps of implementing seed-to-sale software to achieve regulatory compliance. The cannabis sector needs more pragmatic leaders who are hands-on in every project.

5. Innovative

Lastly, leadership in the cannabis industry needs to be innovative. This doesn’t mean technological innovation, like creating an app. Being an innovative cannabis executive means analyzing a problem from a different angle. This is followed by the use of unique strategies to resolve existing complications.

As earlier stated, the cannabis marketplace is constantly changing. And therefore, new rules and regulations are being introduced to achieve compliance. A worldwide pandemic like Covid-19, for example, can either ruin or make a cannabis business. It just takes an innovative leader to formulate the right strategies. And turn the situation around in favor of their business.

The Bottom Line

Executives running cannabusinesses should expect a totally different ball game from other established industries. The industry is young and unique. Thus, a cannabis business needs leadership with the aforementioned skill-set to reach its massive potential.