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Don Wehby: GraceKennedy's new CEO points the way ahead
BY AL EDWARDS
Friday, October 14, 2011
IT has been said for years that among the underlying failures of corporate Jamaica has been succession planning and an inability to outline a plan that goes beyond the next quarter. That cannot be said of GraceKennedy. Under the guidance of its mercurial former CEO Douglas Orane, Don Wehby has been groomed for the top job for more than a decade. In fact it was Orane, who recognised his abilities, appointing him as Chief Financial Officer (CFO) when Wehby was just 32.
At this particular juncture in the country's history, there is a clarion call for leadership from a younger generation. Grey-haired armchair warriors have seen their time come and go and must now be consigned to a dignified retirement, making way for a younger, fresher and more energetic perspective. Andrew Holness at just 39 is set to become the youngest prime minister in Jamaica's history, while the Opposition is pushing forward its own stars for the next generation including Julian Robinson, Lisa Hanna, Peter Bunting and Mark Golding.
The new CEO of GraceKennedy Don Wehby.
WEHBY… the group will now concentrate on its food and financial services divisions
The new CEO of GraceKennedy Don Wehby.
#slideshowtoggler, #slideshowtoggler a, #slideshowtoggler img {filter:none !important;zoom:normal !important}
1/2 
On the world political stage, the likes of Barack Obama, David Cameron and Julia Gillard of Australia are relatively young leaders, all under 52. In the corporate world, Steve Jobs of Apple recently passed at 56, having founded his company 35 years ago. Jeffrey Immelt succeeded Jack Welsh at General Electric at 44 in 2000. Today he is 56, having spent 11 years in the top job. The social networking site Facebook was formed by Mark Zuckerberg in 2005. Today, at 27, he serves as its president and CEO. American economist and central banker Timothy Geithner was appointed as United States Secretary of the Treasury in 2009 at the age of 48. Indra Nooyi became President and CFO of PepsiCo at 45 back in 2000, rising to the CEO position six years later.
At 47, Wehby's ascension is timely. He is now a part of this corporate zeitgeist and will make GraceKennedy a 21st century corporation with a footprint across the entire globe. For years he has been acknowledged as the crown prince of GraceKennedy and been identified as one to watch. Jamaican Prime Minister Bruce Golding realised his talents and co-opted his services, bringing Wehby into the Ministry of Finance for a two-year period in 2007 to lend it greater credibility. His management style has reaped results and he has positioned the financial division as a force within the sector. When Don Wehby took over Grace's Financial Services Division in 1998, it turned a profit of about J$150 million. Four years later he increased it to J$390 million with the division accounting for 29 per cent of Grace's total revenue. In fact it continues to be a regular major contributor to group revenues.
The four rally drivers
So where does Don Wehby want to take GraceKennedy after having been handed the baton by Douglas Orane? Speaking with Caribbean Business Report from Grace's downtown Kingston headquarters on Harbour Street, the new CEO who was appointed in July of this year said: "The aim now is to maximise shareholder value. Our current return on equity (ROE) is now under 10 per cent and we are determined with our new executive team to take it to 20 per cent over the next couple of years. We have now established four strategic themes or rally drivers. The first is sustainable growth and innovation. Secondly, to become more consumer-centric, thirdly look to increase our operational efficiency. The fourth rally driver is to create and drive performance and our culture."
GraceKennedy's CEO further added that the Group will now concentrate on its food and financial services divisions. Its food division provides the leading food brands in Jamaica. It has its own supermarket chain, HiLo, and distributes world brands to third parties. It will now be investing heavily in its factories, putting in new lines. The International Foods Division will now be split into East and West zones. In 2007, Grace made a significant investment in the United Kingdom and the company there is doing well. It will now create an export division within the UK company to service Europe. Here it will be placing Grace foods in supermarkets in France, Germany, Prague and Holland, among other countries. Its Nourishment brand and sauces will grace supermarket shelves in Europe. In Mexico it will push its coconut water product and will be looking to export to Africa, more specifically Ghana.
Expanding beyond Jamaica
In the United Kingdom, Grace products can be found in all the mainstream supermarkets like Tesco, Sainsburys, Asda and Waitrose. "I spent January of this year in the UK and I was encouraged to find mainstream consumers there picking up our products. What that says to me is that our brand-building initiative is now crossing over to the mainstream. When you look at the United States, our main focus over recent years has been the Caribbean Diaspora. We have been concentrating on the East coast, Washington DC, New York and south Florida.
However, we made a decision based on research to make the most of the potential for Grace products on the West coast. What is showing up is that the Hispanic community is beginning to choose our products due in part to the fact that it has similar tastes to Caribbean people. We are rolling out our strategic plan to ramp up our sales on the West coast of the United States and I think that will make a huge difference. We are leading in this area with our spices, sauces, coconut water, our Nourishment drink and Tropical Rhythms," said Wehby. He will also be looking to extract more from Grace's product development arm. Last year about 70 new products were launched. This unit has produced a new juice called Chillin'.
Financial services
As far as the financial services division is concerned, Wehby recognises that its main markets are going to be Jamaica and the English-speaking Caribbean. There are plans to put a large branch of First Global Bank in downtown Kingston sometime in January next year. He believes there will be a renaissance in downtown Kingston with Digicel moving its world headquarters there and other businesses keen to relocate there. Grace is looking at the old Myrtle Bank property right now which should provide a good customer base. "If you look at the banking and financial services sector I think it is fair to say that the real growth is going to come by the use of technology.
In anticipation of this we are investing US$6 million in a new leading banking software program called Oracle FLEXCUBE. This will help us increase operational efficiency and the customer experience in our banks.
In the near future I think the point of contact with your bank will come through the mobile handset. I am predicting that pretty soon we will all have a mobile wallet which will see people putting funds on their mobile phone and being able to make purchases by using handsets. First Global is looking at this very seriously because it will become the way of the future."
First Global bank has sought to introduce a number of innovations. It has revived the practice of Saturday opening by a commercial bank (NCB used to do this years ago). It has also extended its opening hours to 7.00 pm during the week, thus giving the professional classes the option of conducting banking business after work hours on their way home. This has proved very successful for First Global.
A few years ago Grace made an investment in the merchant bank Signia which is part of the Cave Shepherd Group based in Barbados. Wehby says it has given the Group an excellent return on its capital. This was part of its strategy to grow its financial services business in the English-speaking Caribbean and Jamaica.
Money transfer business
Its money services business also enjoys a presence in the Caribbean. Together with Western Union they are placed in Trinidad, Guyana and in the eastern Caribbean. The prediction of a double-dip recession in the United States is something to keep an eye on and may well hamper further growth of this business arm.
Commenting on the impact of the global financial downturn in 2008, Wehby said: "The downturn in 2008/09 saw a marginal impact on our businesses. I conducted some research on it which revealed that out of every dollar sent back home, between 80 and 90 per cent is used for consumption purposes. What that says to me is that family members in the Diaspora see it as an obligation to send money to their relatives because it is imperative that they can access necessary resources. They need funds for everyday living and to help send their children to school.
The traditional remittances through the Western Union network are a little more robust than we may think based on the research I spoke to." Bill Express continues to perform well and the contract it won for JPS billings is undoubtedly a feather in its cap. GraceKennedy is now refurbishing and renovating some of the locations in order to make them more customer-friendly.
The general insurance business, Jamaica International Insurance Company (JIIC), has been affected by the Jamaica Debt Exchange as well as the entire industry in Jamaica as they rely on investment income for their bread and butter. In fact in many cases that accounts for more than 70 per cent of their revenues. JIIC has decided to focus more upon the underwriting side of the business. Earnings for the second quarter of 2011 are up 26 per cent on the same quarter of 2010.
Part II next week
Read more: http://www.jamaicaobserver.com/busin...#ixzz1ao8r91Y4
BY AL EDWARDS
Friday, October 14, 2011
IT has been said for years that among the underlying failures of corporate Jamaica has been succession planning and an inability to outline a plan that goes beyond the next quarter. That cannot be said of GraceKennedy. Under the guidance of its mercurial former CEO Douglas Orane, Don Wehby has been groomed for the top job for more than a decade. In fact it was Orane, who recognised his abilities, appointing him as Chief Financial Officer (CFO) when Wehby was just 32.
At this particular juncture in the country's history, there is a clarion call for leadership from a younger generation. Grey-haired armchair warriors have seen their time come and go and must now be consigned to a dignified retirement, making way for a younger, fresher and more energetic perspective. Andrew Holness at just 39 is set to become the youngest prime minister in Jamaica's history, while the Opposition is pushing forward its own stars for the next generation including Julian Robinson, Lisa Hanna, Peter Bunting and Mark Golding.
The new CEO of GraceKennedy Don Wehby.
WEHBY… the group will now concentrate on its food and financial services divisions
The new CEO of GraceKennedy Don Wehby.#slideshowtoggler, #slideshowtoggler a, #slideshowtoggler img {filter:none !important;zoom:normal !important}
1/2 On the world political stage, the likes of Barack Obama, David Cameron and Julia Gillard of Australia are relatively young leaders, all under 52. In the corporate world, Steve Jobs of Apple recently passed at 56, having founded his company 35 years ago. Jeffrey Immelt succeeded Jack Welsh at General Electric at 44 in 2000. Today he is 56, having spent 11 years in the top job. The social networking site Facebook was formed by Mark Zuckerberg in 2005. Today, at 27, he serves as its president and CEO. American economist and central banker Timothy Geithner was appointed as United States Secretary of the Treasury in 2009 at the age of 48. Indra Nooyi became President and CFO of PepsiCo at 45 back in 2000, rising to the CEO position six years later.
At 47, Wehby's ascension is timely. He is now a part of this corporate zeitgeist and will make GraceKennedy a 21st century corporation with a footprint across the entire globe. For years he has been acknowledged as the crown prince of GraceKennedy and been identified as one to watch. Jamaican Prime Minister Bruce Golding realised his talents and co-opted his services, bringing Wehby into the Ministry of Finance for a two-year period in 2007 to lend it greater credibility. His management style has reaped results and he has positioned the financial division as a force within the sector. When Don Wehby took over Grace's Financial Services Division in 1998, it turned a profit of about J$150 million. Four years later he increased it to J$390 million with the division accounting for 29 per cent of Grace's total revenue. In fact it continues to be a regular major contributor to group revenues.
The four rally drivers
So where does Don Wehby want to take GraceKennedy after having been handed the baton by Douglas Orane? Speaking with Caribbean Business Report from Grace's downtown Kingston headquarters on Harbour Street, the new CEO who was appointed in July of this year said: "The aim now is to maximise shareholder value. Our current return on equity (ROE) is now under 10 per cent and we are determined with our new executive team to take it to 20 per cent over the next couple of years. We have now established four strategic themes or rally drivers. The first is sustainable growth and innovation. Secondly, to become more consumer-centric, thirdly look to increase our operational efficiency. The fourth rally driver is to create and drive performance and our culture."
GraceKennedy's CEO further added that the Group will now concentrate on its food and financial services divisions. Its food division provides the leading food brands in Jamaica. It has its own supermarket chain, HiLo, and distributes world brands to third parties. It will now be investing heavily in its factories, putting in new lines. The International Foods Division will now be split into East and West zones. In 2007, Grace made a significant investment in the United Kingdom and the company there is doing well. It will now create an export division within the UK company to service Europe. Here it will be placing Grace foods in supermarkets in France, Germany, Prague and Holland, among other countries. Its Nourishment brand and sauces will grace supermarket shelves in Europe. In Mexico it will push its coconut water product and will be looking to export to Africa, more specifically Ghana.
Expanding beyond Jamaica
In the United Kingdom, Grace products can be found in all the mainstream supermarkets like Tesco, Sainsburys, Asda and Waitrose. "I spent January of this year in the UK and I was encouraged to find mainstream consumers there picking up our products. What that says to me is that our brand-building initiative is now crossing over to the mainstream. When you look at the United States, our main focus over recent years has been the Caribbean Diaspora. We have been concentrating on the East coast, Washington DC, New York and south Florida.
However, we made a decision based on research to make the most of the potential for Grace products on the West coast. What is showing up is that the Hispanic community is beginning to choose our products due in part to the fact that it has similar tastes to Caribbean people. We are rolling out our strategic plan to ramp up our sales on the West coast of the United States and I think that will make a huge difference. We are leading in this area with our spices, sauces, coconut water, our Nourishment drink and Tropical Rhythms," said Wehby. He will also be looking to extract more from Grace's product development arm. Last year about 70 new products were launched. This unit has produced a new juice called Chillin'.
Financial services
As far as the financial services division is concerned, Wehby recognises that its main markets are going to be Jamaica and the English-speaking Caribbean. There are plans to put a large branch of First Global Bank in downtown Kingston sometime in January next year. He believes there will be a renaissance in downtown Kingston with Digicel moving its world headquarters there and other businesses keen to relocate there. Grace is looking at the old Myrtle Bank property right now which should provide a good customer base. "If you look at the banking and financial services sector I think it is fair to say that the real growth is going to come by the use of technology.
In anticipation of this we are investing US$6 million in a new leading banking software program called Oracle FLEXCUBE. This will help us increase operational efficiency and the customer experience in our banks.
In the near future I think the point of contact with your bank will come through the mobile handset. I am predicting that pretty soon we will all have a mobile wallet which will see people putting funds on their mobile phone and being able to make purchases by using handsets. First Global is looking at this very seriously because it will become the way of the future."
First Global bank has sought to introduce a number of innovations. It has revived the practice of Saturday opening by a commercial bank (NCB used to do this years ago). It has also extended its opening hours to 7.00 pm during the week, thus giving the professional classes the option of conducting banking business after work hours on their way home. This has proved very successful for First Global.
A few years ago Grace made an investment in the merchant bank Signia which is part of the Cave Shepherd Group based in Barbados. Wehby says it has given the Group an excellent return on its capital. This was part of its strategy to grow its financial services business in the English-speaking Caribbean and Jamaica.
Money transfer business
Its money services business also enjoys a presence in the Caribbean. Together with Western Union they are placed in Trinidad, Guyana and in the eastern Caribbean. The prediction of a double-dip recession in the United States is something to keep an eye on and may well hamper further growth of this business arm.
Commenting on the impact of the global financial downturn in 2008, Wehby said: "The downturn in 2008/09 saw a marginal impact on our businesses. I conducted some research on it which revealed that out of every dollar sent back home, between 80 and 90 per cent is used for consumption purposes. What that says to me is that family members in the Diaspora see it as an obligation to send money to their relatives because it is imperative that they can access necessary resources. They need funds for everyday living and to help send their children to school.
The traditional remittances through the Western Union network are a little more robust than we may think based on the research I spoke to." Bill Express continues to perform well and the contract it won for JPS billings is undoubtedly a feather in its cap. GraceKennedy is now refurbishing and renovating some of the locations in order to make them more customer-friendly.
The general insurance business, Jamaica International Insurance Company (JIIC), has been affected by the Jamaica Debt Exchange as well as the entire industry in Jamaica as they rely on investment income for their bread and butter. In fact in many cases that accounts for more than 70 per cent of their revenues. JIIC has decided to focus more upon the underwriting side of the business. Earnings for the second quarter of 2011 are up 26 per cent on the same quarter of 2010.
Part II next week
Read more: http://www.jamaicaobserver.com/busin...#ixzz1ao8r91Y4
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