Operational Scalability: Brendan McKee of Silver Therapeutics On How To Set Up Systems, Procedures, And People To Prepare A Business To Scale
Seek advice from respected individuals in your industry/market. Story: I regularly engage with companies and brands that I admire, both within and outside the cannabis industry. Recently, our board of directors helped us identify our value creation plan concerning our organization’s potential paths forward.
In today’s fast-paced business environment, scalability is not just a buzzword; it’s a necessity. Entrepreneurs often get trapped in the daily grind of running their businesses, neglecting to put in place the systems, procedures, and people needed for sustainable growth. Without this foundation, companies hit bottlenecks, suffer inefficiencies, and face the risk of stalling or failing. This series aims to delve deep into the intricacies of operational scalability. How do you set up a framework that can adapt to growing customer demands? What are the crucial procedures that can streamline business operations? How do you build a team that can take on increasing responsibilities while maintaining a high standard of performance?
In this interview series, we are talking to CEOs, Founders, Operations Managers Consultants, Academics, Tech leaders & HR professionals, who share lessons from their experience about “How To Set Up Systems, Procedures, And People To Prepare A Business To Scale”. As part of this series, we had the pleasure of interviewing Brendan McKee.
Brendan is the Co-Founder, CFO & COO of Silver Therapeutics, New England’s premier cannabis curator and multi-state operator. As an avid consumer and advocate of cannabis for over 20 years, Brendan entered the legal cannabis market in 2017 with a vertical medical license and transitioned to adult use sales in 2019. He opened and operated one of the first adult use dispensaries in Massachusetts and has since opened Silver Therapeutics dispensary locations across Maine, Massachusetts and Vermont.
Thank you so much for your time! I know that you are a very busy person. Our readers would love to “get to know you” a bit better. Can you tell us a bit about your ‘backstory’ and how you got started?
I grew up in a family moving business just outside of Boston and was fortunate enough to attend and play football at Amherst College, where I was able to use cannabis as a recovery tool since I wasn’t drug tested. After college, I played one season in the European Football League and then transitioned to finance at Merrill Lynch and Brown Brothers Harriman. I quickly realized that it was important for me to build something that would help people. Once I gave my notice at BBH, I went back into the health and wellness space as one of the original members of InnerCity Weightlifting in Boston. During that time, I also founded a fully licensed and sanctioned MMA corporate fight league and was the matchmaker for 30+ matches over two years. Eventually, I went all-in on the Massachusetts medical cannabis program in 2017, and the rest is history.
It has been said that our mistakes can be our greatest teachers. Can you share a story about the funniest mistake you made when you were first starting? Can you tell us what lesson you learned from that?
We grossly underestimated the vault space needed at our first location. It was comically inadequate, and I still thank my Williamstown team more than five years later for navigating that challenge. We had to take multiple deliveries daily because the vault was so small. Thank you, Williamstown team!
What do you think makes your company stand out? Can you share a story?
We always go above and beyond for our team members and our customers. In the beginning, I was handling all of our emails, online inquiries, social channels, etc. I was obsessed with responding to everyone and everything, getting ahead of any potential issues. As a result, we received a lot of positive reviews and customer loyalty.
One time, I was working at the check-in desk on July 4th, and we closed early for the holiday. As I was locking up, a group of hikers cruised in and really needed some goodies for their journey. I opened back up and took care of them. It was awesome knowing I made their hike on the Appalachian Trail that much better.
You are a successful business leader. Which three character traits do you think were most instrumental to your success? Can you please share a story or example for each?
Resiliency. Compassion. Curiosity.
Resiliency: Whether you’re opening your first or twentieth cannabis retail store, you need to be resilient. Hurdles will keep coming, and everything is a moving target. If you get discouraged, you need to stay resilient and keep moving forward.
Compassion: You need to be empathetic and put yourself in other people’s shoes. It’s a lot easier to be kind, and it is much more effective when leading a company.
Curiosity: If you aren’t curious and constantly learning, you will be left behind, especially in the cannabis industry. I’m always attending seminars, joining webinars, and connecting with industry leaders so that I can learn and apply new knowledge to my business.
Leadership often entails making difficult decisions or hard choices between two apparently good paths. Can you share a story with us about a hard decision or choice you had to make as a leader? I’m curious to understand how these challenges have shaped your leadership.
My decisions are always based on what I think is best for our team and the organization as a whole. We are a privately owned craft MSO with thin margins, so it was always challenging to provide healthcare and benefits for our team. Having to make the decision to not offer these until recently was very hard for me. I’m grateful that these offerings are now available to our entire organization.
Thank you for all that. Let’s now turn to the main focus of our discussion about Operational Scalability. In order to make sure that we are all on the same page, let’s begin with a simple definition. What does Operational Scalability mean to you?
Operational Scalability means that we have the systems and SOPs in place to open dispensaries anywhere in an efficient manner.
Which types of business can most benefit from investing in Operational Scalability?
I genuinely can not think of a business that wouldn’t benefit from investing in operational scalability. Is this a trick question?
Why is it so important for a business to invest time, energy, and resources into Operational Scalability?
If you are looking to grow and scale your business, you need systems in place to make it happen. Developing these systems takes time and, in the case of the cannabis industry, they constantly evolve based on the markets you operate in. Regulatory changes are always evolving, and you need to have the structure in place to adjust, adapt, and remain compliant. If you build your people up, they will grow into bigger roles and could possibly transition to a new organization. When that happens, you need to be able to promote from within or bring someone in from the outside and provide the systems and playbook for them to be successful.
In contrast, what happens to a business that does not invest time, energy, and resources into Operational Scalability?
If you fail to plan, you plan to fail. A business that does not invest time, energy, and resources into Operational Scalability will constantly hit a glass ceiling, face bottlenecks, and fumble anytime an opportunity for growth presents itself.
Can you please share a story from your experience about how a business grew dramatically when they worked on their Operational Scalability?
We handle flower packaging and preroll production in-house and have been able to scale it significantly once we implemented proper SOPs and systems. Before doing so, we simply tracked it in Dutchie and Headset, and we were generally satisfied. It wasn’t until we really started to delve into the data, set new expectations for unit production, and tracked it week over week that we saw meaningful month-over-month growth. As a result, our products are the number one selling items across all of our locations.
Here is the primary question of our discussion. Based on your experience and success, what are the “Five Most Important Things A Business Leader Should Do To Set Up Systems, Procedures, And People To Prepare A Business To Scale”? If you can, please share a story or an example for each.
- Seek advice from respected individuals in your industry/market. Story: I regularly engage with companies and brands that I admire, both within and outside the cannabis industry. Recently, our board of directors helped us identify our value creation plan concerning our organization’s potential paths forward.
- Surround yourself with individuals who are more intelligent than you. Story: Many of my friends surpass me in intelligence, and I leverage their expertise when making personal or professional decisions. Your circle greatly influences you, so choose your associates wisely.
- Involve your team members in the development of systems and procedures. Story: Following recent personnel changes at our Williamstown store, we convened with managers, shift leaders, and production staff to discuss and agree upon our future operating procedures.
- Maintain a commitment to continuous learning. Story: I dedicate time to attend 4–6 webinars or meetings weekly covering topics such as marketing strategies, tax optimization, CFO reporting, COO responsibilities, and the evaluation of new platforms. Additionally, I regularly meet with existing vendors to ensure we maximize the benefits of their services, leveraging their expertise for optimal platform utilization.
- Invest in your personnel. Story: We prioritize listening to and supporting our team members, understanding that their satisfaction directly impacts customer care. Though criticized for being overly compassionate, I prioritize fostering an environment where team members can thrive. For instance, one team member has been part of six of our location openings and was able to purchase their first home while working with us. Such successes reaffirm the significance of our approach.
What are some common misconceptions businesses have about scaling? Can you please explain?
People often assume that growth automatically translates to increased revenue and profitability. However, free net cash flow can diminish rapidly as markets evolve and price compression sets in. I always advocate for maintaining a lean and efficient operation, regardless of the number of locations you manage. It’s crucial to plan accordingly to stay relevant and sustain business operations.
How do you keep your team motivated during periods of rapid growth or change?
Money. Money motivates. It’s that simple. Along with money comes acknowledgment. Pay your people what they are worth and acknowledge their wins. If you do that, you are doing better than 90% of operators out there.
Can you please give us your favorite “Life Lesson Quote”? Can you share how that was relevant to you in your life?
Luck favors the prepared.
I actually don’t believe in luck, but I believe that working hard and being prepared will create opportunities, which can sometimes feel like luck. The universe will reward you if you keep moving forward despite any obstacles or hardships.
You are a person of great influence. If you could start a movement that would bring the most amount of good to the most amount of people, what would that be? You never know what your idea can trigger. 🙂
Fix our food system. Fix our education system. Create more political parties. Legalize cannabis in every state and release anyone who is currently incarcerated for a cannabis-related crime. Put power back in the hands of people who care about one another. I know that’s a lot. I could keep going…
How can our readers further follow your work online?
I’m easily found on LinkedIn, and am working on more content for this particular platform. Oh, and you guessed it, I will be launching a podcast in 2024! Across both platforms, I will talk about my work and personal life, as well as the steps we are taking to create and identify the value and meaning within our work. I’m also working towards becoming a firefighter and will be sharing my journey with anyone willing to follow.
Thank you so much for sharing these important insights. We wish you continued success and good health!
Thank you! I’m incredibly grateful for your time and consideration.
Operational Scalability: Brendan McKee of Silver Therapeutics On How To Set Up Systems, Procedures… was originally published in Authority Magazine on Medium, where people are continuing the conversation by highlighting and responding to this story.