roundtable series: south florida ceos ready to embrace ...€¦ · these were the main issues...
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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
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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
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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.
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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.”
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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
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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.
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March16,2018
•CalixtoGarcia-Velez:Embracingtechnologyanddisruptiveinnovationsoonerinmyindustry.
https://www.bizjournals.com/southflorida/news/2018/03/15/ceo-roundtable-03-16-2018.html