In the second part of our interview with Patrick Bero, CEO/CFO of the Detroit Regional Convention Facility Authority, we get a better look at the business and financial side of Cobo’s reinvention.
Patrick shared a really interesting tidbit about the market demand for Cobo’s bonds being three times higher than what was available while the City of Detroit was in bankruptcy. Surprising, right? That’s around the 19:25 mark - but don’t just scan ahead to that! There is so much more to this story.
QUOTE IT
“Long time customers tend to get taken for granted.” (3:55)
“If you embrace competition, that tends to keep you sharp. Organizations that try to shield themselves from competition are the ones that in the long run end up having more difficulty.” (20:57)
DIG IN
Patrick describes around the 5:00 mark how a shift in customer expectations pointed to an unsustainable business model.
At 14:55 we learn how Patrick helped transform Cobo’s headline risk into a reinvention story that allowed the DRCFA to meet the capital needs of doing business in an unconventional way.
TAKEAWAYS
1 -You can only cut back and reduce so much; instead commit your resources to things that will deliver a return.
2 - Establish a level of trust and transparency with your members/customers then demonstrate a commitment to those values every chance you get.
3 - An effective board offers fundamental principles and a strategic vision to enable staff to execute.
4 - Survey the market, and don’t forget to include the people who have taken their business elsewhere.
5 - Asking simple questions opens up the path to new solutions.
