LOOKING AHEADA Conversation with Peter Larkin and Joe SheridanQA+A NEW ERA BEGINS NOW FOR NGA, with a leadership team of demonstrated experience and abilities, in building our membership, and instreng<strong>the</strong>ning recognition of our unique role in serving <strong>the</strong> needs and ambitions of <strong>the</strong> independent retailer.Following <strong>the</strong> trail of Tom Zaucha and 25 chairmen since NGA’s inception in 1982, are Joseph Sheridan, Chairman, and Peter Larkin, President & CEO.Their comments here, taken from a joint inter<strong>view</strong> in August, not only highlight <strong>the</strong> sharp professional capability each brings <strong>to</strong> his NGA responsibility, butalso reflect <strong>the</strong> respect and cordiality that each holds for <strong>the</strong> o<strong>the</strong>r. Toge<strong>the</strong>r, <strong>the</strong> two offer <strong>the</strong> promise of creating a new environment of accomplishment,stimulating a new growth of NGA.BY OSCAR KATOVNGA Does <strong>the</strong> phrase “entrepreneurial spirit”have <strong>the</strong> same impact <strong>to</strong>day as it did whenNARGUS and CFDA joined <strong>to</strong>ge<strong>the</strong>r <strong>to</strong> createNGA, 30 years ago? Joe, that phrase hasstrength and significance for you, because 30years later, you used that line in your openingremarks at <strong>the</strong> 2012 NGA Show: “It’s <strong>the</strong>entrepreneurial spirit of its members that makesNGA different from all o<strong>the</strong>r food industrytrade associations. There’s energy <strong>the</strong>re, thatcan’t be replicated.”JOE As an independent opera<strong>to</strong>r and anentrepreneur, as opposed <strong>to</strong> a chain opera<strong>to</strong>ror manufacturer where you have more of acorporate perspective, but as an entrepreneur- everything that you do is personal. It’s aboutyour family, your family’s prosperity and everythingthat you’ve accomplished as a family.There’s a premise that goes with entrepreneurism,that entrepreneurs love <strong>to</strong> win. But <strong>the</strong>truth is <strong>the</strong>y hate <strong>to</strong> lose even more. I thinkthis is very important because it <strong>to</strong>uches onthat personal aspect of business.You know, in a lot of ways Wakefern is likeNGA; <strong>the</strong>re are so many parallels. We’re madeup of 47 families, some big, some small, justlike NGA – some big and some small. We havefirst-generation, second-generation, thirdgeneration,fourth-generation just like NGA.You have different levels of family intimacyinvolved in <strong>the</strong> business. Each entrepreneur is asoloist at Wakefern in <strong>the</strong>ir own right but whenWakefern under <strong>the</strong> trademark of Shoprite gets<strong>to</strong>ge<strong>the</strong>r, we call it a symphony of soloists. Sowhen we’re playing, we’re playing as a groupand we make great music.But it’s based upon a buildup – a very granularbuildup – from excellence and <strong>the</strong> communityintimacy that occurs at <strong>the</strong> local levelwith <strong>the</strong> family and <strong>the</strong> entrepreneurial spiritright where <strong>the</strong> cus<strong>to</strong>mer is; aggregated up in<strong>to</strong>a larger entity called Wakefern. This parallel <strong>to</strong>NGA is almost uncanny. Here you have a seriesof entrepreneurs that run an association calledNGA, in that <strong>the</strong> association should be able <strong>to</strong>provide détente against some of <strong>the</strong> macro forcesthat are always impacting family businesses.NGA So <strong>the</strong>re still is <strong>the</strong> need <strong>to</strong> pay attention<strong>to</strong> <strong>the</strong> basics, such as attracting new members?How do you see that happening in next thirtyyears?PETER It is important for us <strong>to</strong> listen <strong>to</strong> ourcurrent members <strong>to</strong> learn what <strong>the</strong>y want from<strong>the</strong>ir association. Once you listen, you need<strong>to</strong> respond <strong>to</strong> stay relevant. It is a changingindustry as we all know, and we always must besure <strong>to</strong> clearly articulate <strong>the</strong> value propositionand what return members can expect for <strong>the</strong>irinvestment in dues dollars and time commitments<strong>to</strong> NGA. Then we can convey thatvalue proposition, <strong>to</strong> potential members andour association will grow.I think <strong>the</strong>re is no one better positioned <strong>to</strong>recruit new members than those who have been<strong>the</strong> loyal members of this organization for <strong>the</strong>past 30 years. We need <strong>to</strong> equip our memberswith <strong>the</strong> materials <strong>the</strong>y need <strong>to</strong> go out andspread <strong>the</strong> word – <strong>to</strong> carry that value propositionmessage forward.NGA Joe, during your time as chairman, whathas been <strong>the</strong> most important issue or initiativethat NGA has undertaken?JOE I would say we’re in a period now wherealmost all trade associations are questioning<strong>the</strong>ir purpose, because <strong>the</strong> reason <strong>the</strong>y werecreated may or may not still be a core value<strong>to</strong> its members. I think NGA has an ability<strong>to</strong> engage members for governmental actionbecause of its members across all <strong>the</strong> states.Independents have more access than <strong>the</strong> largechains often do in getting in front of <strong>the</strong>irrepresentatives. NGA is uniquely positioned<strong>to</strong> represent, in a very cogent and influentialfashion, <strong>the</strong> issues of <strong>the</strong> entrepreneur and <strong>the</strong>family business <strong>to</strong> government.I think what’s important is this; it’s <strong>the</strong>members of NGA, not NGA itself, making <strong>the</strong>contacts. This is a member-driven organization.This is what makes NGA unique from<strong>the</strong> o<strong>the</strong>rs. It’s <strong>the</strong> members of NGA that have<strong>the</strong> intimacy with <strong>the</strong> decision makers andregula<strong>to</strong>rs, backed by a professional staff atNGA that can put <strong>the</strong> message out <strong>the</strong>re in avery clear and cogent fashion. So I would say<strong>the</strong> most important thing we’re working onnow is identifying those issues – and <strong>the</strong>y’reperpetually changing – and moving those issueson behalf of family businesses in front of <strong>the</strong>government and dealing with <strong>the</strong> impact. Thereare some big moving targets out <strong>the</strong>re tha<strong>to</strong>ften fall on <strong>the</strong> back of family businesses. Thepurpose of NGA is great because that is one of<strong>the</strong> macro-forces impacting all small businessesthat we’re able <strong>to</strong> go out and represent it in avery personal fashion.PETER Just <strong>to</strong> put a finer point on that; <strong>to</strong>day,as we speak, <strong>the</strong> tax issues that are pending inCongress are incredibly impactful <strong>to</strong> small businessesand independent grocers and our memberswant <strong>to</strong> have a voice in that debate. That’s exactlywhat NGA is doing. We are following <strong>the</strong> taxissues, we are actively engaged in <strong>the</strong> tax issues.20 | NATIONAL GROCERS ASSOCIATION WWW.NATIONALGROCERS.ORG
INTERVIEWThe tax issues impact members in differentways depending on <strong>the</strong>ir corporate structure.But regardless of <strong>the</strong> differences you put allour members <strong>to</strong>ge<strong>the</strong>r – we speak with onevoice. We know exactly <strong>the</strong> direction we want<strong>to</strong> head; we know what’s important whe<strong>the</strong>rits estate taxes, taxes for pass-through entities,or various tax credits used by small business.In addition <strong>to</strong> tax issues, we are operating in alegislative environment where labor issues areof <strong>the</strong> utmost importance. Our members want<strong>to</strong> have a voice and we give it <strong>to</strong> <strong>the</strong>m.Where it really becomes important is ourability <strong>to</strong> generate grassroots support. It’s obviousthat members of Congress would ra<strong>the</strong>r hearfrom <strong>the</strong>ir constituents than from paid lobbyistsin Washing<strong>to</strong>n, DC. We demonstrate this on amonthly, sometimes weekly, basis when we sendout action alerts. And I’ll tell you, people respond.We get hundreds and hundreds, sometimes thousandsof letters generated <strong>to</strong> Capi<strong>to</strong>l Hill on anygiven issue and it’s coming from all 50 states.NGA That speaks very well for <strong>the</strong> foundationof NGA, with grassroots as a key fac<strong>to</strong>r in <strong>the</strong>success. Moving forward, what do you think is<strong>the</strong> most important issue facing <strong>the</strong> association?JOE I think that NGA, like all trade associations,has <strong>to</strong> make sure that <strong>the</strong>y’re – <strong>the</strong>re’s aterm in <strong>the</strong> book Servant Leadership, “primusinter pares” – “first amongst equals”. I don’tthink NGA should be <strong>the</strong> lead on every issue.I think it should choose where it’s going <strong>to</strong> be<strong>the</strong> lead and where it should be in support, orin collaboration with o<strong>the</strong>r trade associations.Then in turn, you establish your priorities andgo after <strong>the</strong>m. But that means you can’t leadon every issue. It’s that some things are betteroff in collaboration, so you’re a voice of <strong>the</strong>industry, large and small.PETER That is a great point Joe; we use a veryactive and broad-based government relationscommittee <strong>to</strong> help us focus on which issues aremost important <strong>to</strong> <strong>the</strong> independent retailer.While <strong>the</strong>re may be 100 issues that we have <strong>to</strong>deal with here in Washing<strong>to</strong>n, we’ve used <strong>the</strong>government relations committee <strong>to</strong> go through<strong>the</strong> list and prioritize every single issue. So foreach issue, we know which one we’re taking<strong>the</strong> lead on, which one we’re collaborating andworking with o<strong>the</strong>rs on. We only have a certainbandwidth here in terms of number of staff andexpertise, and we don’t have <strong>the</strong> luxury of havingspecific industry experts on staff like someorganizations do. So we’re working <strong>to</strong>ge<strong>the</strong>rwith o<strong>the</strong>r industry association on a variety ofissues, but taking <strong>the</strong> lead on those that are mostimportant <strong>to</strong> <strong>the</strong> independents and wholesalers.There is such a powerfuland inherent pride <strong>to</strong>be part of a familybusiness, and <strong>to</strong> be par<strong>to</strong>f a bigger fam ily calledNGA. It’s something thatyou have <strong>to</strong> believe in.NGA One of <strong>the</strong> highlights for NGA membersis <strong>the</strong> annual NGA Show and <strong>the</strong> chance for<strong>the</strong>m all <strong>to</strong> ga<strong>the</strong>r <strong>to</strong>ge<strong>the</strong>r. With such a diversegroup <strong>to</strong> provide for, how do you address <strong>the</strong>needs of members when formulating <strong>the</strong> conten<strong>to</strong>f <strong>the</strong> NGA Show? How do you continue<strong>to</strong> make it must-attend event year after year?PETER Well, we’ve used <strong>the</strong> words “stayingrelevant” a couple of times and I believe <strong>the</strong>reason that our trade show is still relevant isbecause for many of our members, this is <strong>the</strong>only trade show <strong>the</strong>y attend. The NGA Showfocuses on <strong>the</strong>m, and addresses <strong>the</strong>ir educationalneeds, and provides an opportunity <strong>to</strong>see new products and services.JOE I’d like <strong>to</strong> give you one more, and Peter’s<strong>to</strong>uching it a little bit on <strong>the</strong> Show. The NGAShow is emotional.PETER Yes.JOE It’s emotional. I mean, whe<strong>the</strong>r it’s from<strong>the</strong> Pledge of Allegiance or <strong>the</strong> Star-SpangledBanner, <strong>to</strong> <strong>the</strong> nature of <strong>the</strong> speakers, I thinkit’s powerful how NGA connects emotion <strong>to</strong>business context.Because <strong>the</strong>re’s a hidden pride that just layslatent. An entrepreneur never wants <strong>to</strong> tip<strong>the</strong>ir hand as <strong>to</strong> how well <strong>the</strong>y’re doing becauseyou never know; <strong>the</strong>y always have this fear oftax or a locust s<strong>to</strong>rm or <strong>the</strong> next thing thatcould happen <strong>to</strong> <strong>the</strong> business. So you neverget <strong>to</strong>o big for your britches. But <strong>the</strong>re is sucha powerful and inherent pride <strong>to</strong> be part of afamily business, and <strong>to</strong> be part of a bigger familycalled NGA. It’s something that you have <strong>to</strong>believe in. That comes from <strong>the</strong> nature of <strong>the</strong>members <strong>the</strong>mselves. I think that when you’reat <strong>the</strong> Show, you feel an immense pride aboutbeing part of NGA. I think NGA is as hot andas in-tune now as it was when it started. Likeall organizations, it goes through <strong>the</strong> cycle ofups and downs, it is relevant, it is on target,and it is focused on its growth.NGA Any final thoughts or memories youwant <strong>to</strong> share with <strong>the</strong> membership on 30 yearsof representing independent grocers?JOE I’ll give you a ra<strong>the</strong>r unique one. Everynow and <strong>the</strong>n you get a chance <strong>to</strong> go deep ona specific project and you learn a lot about <strong>the</strong>o<strong>the</strong>r people working on <strong>the</strong> project with you,and about <strong>the</strong> organization itself. For me, itwas <strong>the</strong> search <strong>to</strong> replace a founding leader likeTom Zaucha. And how do you do that? Howdo you have a succession plan for <strong>the</strong> leaderof <strong>the</strong> organization that allows you <strong>to</strong> honorall that was accomplished in <strong>the</strong> past, and yetmake <strong>the</strong> moves in order <strong>to</strong> go forward in<strong>the</strong> future? You have <strong>to</strong> identify what are <strong>the</strong>characteristics that you want, who are <strong>the</strong> bestpeople <strong>to</strong> do that and <strong>the</strong>n do that as a sharedexperience between o<strong>the</strong>r people on <strong>the</strong> searchcommittee, backed up by Board feedback.I found that <strong>the</strong> search that resulted in <strong>the</strong>hiring of Peter <strong>to</strong> be almost like a renewal ofvows for NGA. When we wound up with atalented person like Peter, it reflected what <strong>the</strong>members were looking for in such a way that<strong>the</strong>re’s a level of perpetual engagement – andit’s increasing. It was a singular experienceduring my time at NGA and it allows me<strong>to</strong> have faith that <strong>the</strong> energy and time that Iwill commit as Chairman will in fact, pay off.Because <strong>the</strong>re will be a staff that will be able<strong>to</strong> do it, facilitate it, lead it, and make surethat <strong>the</strong>re’s <strong>to</strong>tal engagement by <strong>the</strong> rest of <strong>the</strong>NGA membership.PETER Now you see why he’s ourChairman.30TH ANNIVERSARY THE COMMEMORATIVE ISSUE | 21