Slow Leadership in practice

If you want a wonderful example of the principles of Slow Leadership being used—and creating a spectacular and highly-regarded business in the process—you have to read this article by Bob Sutton titled: “Zingerman’s: A Civilized Workplace.”

Based on both a New York Times piece, and his own personal experience, Bob will introduce you to what has been described as “The Coolest Small Company in America.”

Look at this:

But neither the festivities nor the variety would have been possible if Zingerman’s co-founder, Paul Saginaw, had not dragged his business partner, Ari Weinzweig, to a bench in front of the deli about 15 years ago and demanded that they start thinking about where they wanted their business to wind up. Mr. Weinzweig was reluctant to break away from his routine of running the deli, then generating about $6 million a year in sales, to brainstorm. But Mr. Saginaw insisted. Two years later, the result was a vision for what they hoped to achieve by 2009 — well beyond the 5-year or even 10-year plans that most businesses scope out for themselves.

Is that taking the long-term view or what?

How about this attitude to business? The deli’s prices approach New York levels and yet Zingerman’s profit margins are extremely thin. Why is that? Because of the company’s total commitment to high-quality products.

The price difference between regular turkey and free range isn’t just 20 percent higher, it’s three times as much,” Grace Singleton, who manages the deli, said. “Could we do something different? Sure. Would it be authentic and feel as great? No.”

Zingerman’s shares its financial picture with its employees, pays good salaries and wages, gives generous vacation time (as much as six weeks after 20 years), plus health and dental care and food discounts. Full-time employees also receive “gain sharing,” if their part of the company exceeds its annual business plan. Could the owners increase their profits and make that bottom line look better if they took the Circuit City approach and paid as little as possible? Sure. Would that be “authentic and feel as great,” if they did? No way. Would they stay a great business and “The Coolest Small Company in America?” What do you think?

Here’s what the owners say about today’s business shibboleth, profit:

The structure also helps explain why margins remain low even as revenue has risen. To pay employees, support local producers and contribute to the community, “a big piece of it is charging enough money,” Mr. Weinzweig said. But Mr. Saginaw said profit, in itself, was not Zingerman’s motivation. “We’ve had dozens and dozens of opportunities to franchise, sell the name, take the check and walk away,” Mr. Saginaw said. Instead, Mr. Weinzweig said, the idea was to create a special experience. “Our goal in 2020 is to leave our world better than it was when we came here,” he said.

If every business took that viewpoint, our world would be transformed. There would be just as much prosperity and economic growth, but all would share in it, instead of some getting all the gourmet meals and others having to make do with water and dry bread.

If a company takes the long-term view, stays committed to quality and honesty, and treats its employees in a civilized way, what more can anyone ask of it?

As Bob says in his article:

After living in Silicon Valley so long, where there is so much greed, and just about everyone seems focused on squeezing every cent [out] of everyone around them -- employees, customers, suppliers -- Zingerman’s is a refreshing reminder that financial greed isn’t always the first priority for every owner and manager.

Long may Zingerman’s prosper!

Sign up for our Email Newsletter

Technorati tags: slow leadership civilized work corporate culture long-term viewpoint making a difference