September 5-7, 2018 St. Pete Beach, Florida. Building Tomorrow s Leaders Today. The Organizational Impacts of Legalized Marijuana in Washington State

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1 LEADERSHIP SUMMIT September 5-7, 2018 St. Pete Beach, Florida Building Tomorrow s Leaders Today The Organizational Impacts of Legalized Marijuana in Washington State Deputy Chief Steve Johnson Washington State Liquor and Cannabis Control

2 The Organizational Impacts of Legalized Marijuana in Washington State 2018 IPTM Leadership Summit September 6th St. Pete Beach, FL Deputy Chief Steve Johnson, Washington State Liquor & Cannabis Board

3 A Little History Initiative 1183 Privatization of Liquor in 2011 Legalization of Recreational Marijuana 2012 First license issued in 2012 First retail store opened 2014 Medical Marijuana Responsibilities Restructured 2015 Development of Tobacco Tax Unit 2015 Vapor Team 2016

4 Leadership Concepts* Model the Way Find your voice by clarifying your personal values Set the example by aligning actions with shared values Inspire Shared Vision Envision the future by imagining and enabling possibilities while finding a common purpose Challenge the Process Search for opportunities by seeking innovative ways to change, grow, and improve Experiment and take risks by constantly generating small wins and learning from mistakes Enable Others to Act Foster collaboration by promoting cooperative goals and building trust Strengthen others by sharing power and discretion Encourage the Heart Recognize contributions by showing appreciation for individuals excellence Celebrate the values and victories by creating a spirit of community *The Leadership Challenge 6 th Ed. J.M. Kouzes & B.Z. Posner (2017)

5 Recreational Marijuana Legalized & Regulated Fiscal analysis done with 100 producers 100 processors and 350 stores The inclusion of medical marijuana added more stores 528 retail stores licensed 1500 producers and processors Two years to implement Development of Washington Administrative Code (WAC) establishing governing regulatory provisions Legislative changes Staffing changes Community meetings around the state Weekly public Board meetings

6 Agency Growth 72% Growth in commissioned staff From 99 officers and first line supervisors to 171 Administrative support, midlevel management, and command staff neglected Current budget request submitted asking for an increase Recruiting Retention Training Tools and Equipment

7 Impact on Local Law Enforcement Marijuana legalized under the premise that it would free up local law enforcement Crime will go down Officers can focus on other crimes No funding increase needed Minimal engagement in rule making process

8 The Illicit Market Wholesale vs. Retail Wholesale Avg. $/g Retail Avg. $/g Retail Avg. $/g (with excise tax) Average Price per Gram $12.50 $12.00 $11.50 $11.00 $10.50 $10.00 $9.50 $9.00 $8.50 $8.00 $7.50 $7.00 $6.50 $6.00 $5.50 $ /27/15 4/20/16 11/25/16 September 2017 Avg. Price Wholesale = $2.40/g Retail = $5.20/g Retail w/excise tax = $7.12/g Over $4 million in daily sales 4/20/17 $4.50 $4.00 $3.50 $3.00 $2.50 $2.00 $1.50 $1.00

9 The Illicit Market

10 Impact on Impaired Driving Percentage of Washington Drivers THC-positive Before and After Recreational Marijuana Sales 25% Increase in THC-positive drivers among daytime drivers 22.2% 20% 17.5% 19.8% 18.4% 19.4% 19.4% 21.4% 15% 14.5% 14.6% Statistically significant changes 10% 9.2% 7.8% 5% 5.3% 0% Wave 1 (pre-sales) Wave 2 (six mos. Post-sales) Wave 3 (one year post-sales) Daytime (significant) Over 5ng per se (significant) All Times Nighttime

11 Total # of impaired driving cases received for blood testing Percentage of total cases testing positive for THC (at or above 1 ng) , % , % , % , % , % , % , % , % Data from the WA State Tox Lab, through October 2016

12 Impact on Impaired Driving Rising Frequency of Poly-Drug Drivers in Fatal Crashes THC Only Alcohol Only One Drug Only (not Alcohol or THC) Poly-Drug (Any combination of the other categories)

13 Internal Change Management Name change Change in the organization s mission Create a climate for change Establish a sense of urgency Create the guiding coalition Develop a change vision System changes Enforcement vs Regulatory responsibilities Enforcement What s the law Regulatory What s reasonable Line vs Administration Managing the gray Policy updates Engage and Enable the Whole Organization Communicate the vision for buy-in Empower broad-based action Generate short-term wins Implement and sustain change Never let up Incorporate change into the culture

14 External Change Management Initiative written to appeal to multiple groups Subgroups of licensees Medical marijuana patients Working with other state agencies Moratorium areas

15 Organizational Performance Measurements Establish long term and short term goals Youth access = Compliance checks and Poison Control Data Diversion = Seed to sale tracking system and Non-Retail MJ Unit License Integrity Communicate your goals to everyone in the organization Tell people Write them down Identify specific activities that move you towards each goal Start with a limited number What gets measured gets done

16 Organizational Performance Measurements Have a plan/process for finding a problem s root cause Scan Analysis Respond Assess (Evaluate) = (SARA) grasp Plan Do Check Adjust = (gpdca) What data are you going to collect and how are you going to use it to measure your performance towards each goal Establish a baseline Evaluate your performance on a regular schedule

17 Professional Performance Measurements Know your personal values Set goals Plan activities that move you towards your goals Make time to evaluate your progress Ask others for input

18 Things to Remember You make a difference Credibility is the foundation of leadership Values drive commitment Focusing on future sets leaders apart You can t do it alone Trust rules Challenge is the crucible for greatness You either lead by example or you don t lead at all The best leaders are the best learners Leadership is an affair of the heart The Truth About Leadership the No-Fads, Heart-of-the-matter Facts You Need to know. J.M. Kouzes & B.Z. Posner (2010)

19 Questions

20 Contact Information Deputy Chief Steve Johnson Washington State Liquor and Cannabis Board 3000 Pacific Ave. SE PO Box Olympia, WA (360)