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Bo Burlingham - Small Giants: Companies That Choose to Be Great Instead of Big

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Bo Burlingham Small Giants: Companies That Choose to Be Great Instead of Big
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Its an axiom of business that great companies grow their revenues and profits year after year. Yet quietly, under the radar, a small number of companies have rejected the pressure of endless growth to focus on more satisfying business goals. Goals like being great at what they do . . . creating a great place to work . . . providing great customer service . . . making great contributions to their communities . . . and finding great ways to lead their lives.

In Small Giants, veteran journalist Bo Burlingham takes us deep inside fourteen remarkable companies that have chosen to march to their own drummer. They include Anchor Brewing, the original microbrewer; CitiStorage Inc., the premier independent records-storage business; Clif Bar & Co., maker of organic energy bars and other nutrition foods; Righteous Babe Records, the record company founded by singer-songwriter Ani DiFranco; Union Square Hospitality Group, the company of restaurateur Danny Meyer; and Zingermans Community of Businesses, including the world-famous Zingermans Deli of Ann Arbor.

Burlingham shows how the leaders of these small giants recognized the full range of choices they had about the type of company they could create. And he shows how we can all benefit by questioning the usual definitions of business success. In his new afterward, Burlingham reflects on the similarities and learning lessons from the small giants he covers in the book.

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SMALL GIANTS

Picture 1

SMALL GIANTS

Companies That
Choose to Be Great
Instead of Big

BO BURLINGHAM

PORTFOLIO

PORTFOLIO

Published by the Penguin Group

Penguin Group (USA) Inc., 375 Hudson Street, New York, New York 10014, U.S.A.

Penguin Group (Canada), 90 Eglinton Avenue East, Suite 700, Toronto, Ontario, Canada M4P 2Y3

(a division of Pearson Penguin Canada Inc.)

Penguin Books Ltd, 80 Strand, London WC2R 0RL, England

Penguin Ireland, 25 St. Stephens Green, Dublin 2, Ireland

(a division of Penguin Books Ltd)

Penguin Books Australia Ltd, 250 Camberwell Road, Camberwell, Victoria 3124,

Australia (a division of Pearson Australia Group Pty Ltd)

Penguin Books India Pvt Ltd, 11 Community Centre, Panchsheel Park,

New Delhi110 017, India

Penguin Group (NZ), Cnr Airborne and Rosedale Roads, Albany, Auckland 1310,

New Zealand (a division of Pearson New Zealand Ltd)

Penguin Books (South Africa) (Pty) Ltd, 24 Sturdee Avenue, Rosebank,

Johannesburg 2196, South Africa


Penguin Books Ltd, Registered Offices: 80 Strand, London WC2R 0RL, England


Copyright Bo Burlingham, 2005

All rights reserved


Publishers Note

This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional services. If you require legal advice or other expert assistance, you should seek the services of a competent professional.


LIBRARY OF CONGRESS CATALOGING-IN-PUBLICATION DATA

Burlingham, Bo.

Small giants: companies that choose to be great instead of big / Bo Burlingham.
p. cm.

Includes index.

ISBN: 978-1-1011-9138-5
Small businessUnited StatesManagement. 2. Private companiesUnited States Management. 3. Close corporationsUnited StatesManagement. 4. Success in business United States. I. Title.


HD62.7.B835 2005
658.4'09dc22 2005051487


Without limiting the rights under copyright reserved above, no part of this publication may be reproduced, stored in or introduced into a retrieval system, or transmitted, in any form or by any means (electronic, mechanical, photocopying, recording or otherwise), without the prior written permission of both the copyright owner and the above publisher of this book.


The scanning, uploading, and distribution of this book via the Internet or via any other means without the permission of the publisher is illegal and punishable by law. Please purchase only authorized electronic editions and do not participate in or encourage electronic piracy of copyrightable materials. Your support of the authors rights is appreciated.

For my grandson,
Owen Dimitri Burlingham,
and any others who, by the grace of God,
will join us in the future

ACKNOWLEDGMENTS

Movies have credits, and books have acknowledgments, but I feel as though many of the people involved in the production of this one deserve something moresay, a standing ovation. Lets start with the people who came up with the idea. Credit for that goes to Patrick Nolan, the director of trade paperback sales for Penguin, who had the original inspiration, and Adrian Zackheim, founder and publisher of the Portfolio division of Penguin, who contacted me after reading a cover story I had written in Inc. magazine on Zingermans, entitled The Coolest Small Company in America. He said he saw the possibility of a book growing out of the article. I didnt get it at first, but I agreed to meet with him. Over breakfast at Pershing Square Restaurant in Manhattan, he articulated the idea so clearly and so brilliantly that, by the time I left, my involvement was a foregone conclusion. After conferring with my wife, Lisa, and my literary-agent-head-cheerleader-guardian-angel, Jill Kneerim, I got started.

By then, a whole bunch of other people had already had an impact on what would eventually become Small Giants: former Inc . editor in chief George Gendron, who had assigned the Zingermans article and helped guide me through the research; Leigh Buchanan, whod edited the piece; and Georges successor, John Koten, whod put it on the cover with a particularly catchy cover linenot to mention Ari Weinzweig, Paul Saginaw, and their colleagues at Zingermans, including Maggie Bayless, Dave Carson, Frank Carollo, Amy Emberling, Holly Firmin, Mo Frechette, Stas Kazmierski, Ron Maurer, Todd Wickstrom, and Lynn Yates. Subsequently both Ari and George played crucial roles in helping me think through the themes of the book and identify companies I should look at. George, in particular, came through (as he always has) with those incisive observations at crucial moments that are the mark of a great editor. In addition, I received much valuable support and advice from Jack Stack, CEO of SRC Holdings Corp. (formerly Springfield ReManufacturing Corp.), my mentor and sometime coauthor, as well as numerous other friends, relatives, and colleagues, including Peter Carpenter, John Case, Susan Donovan, John Ellis the elder, John R. Ellis the younger, Richard Fried, Gary Heil, Michael Hopkins, Joe Knight, Joel Kotkin, Sara Noble, John ONeil, Bill Palmer, and Greg Wittstock.

Norm Brodsky, another mentor and sometime coauthor, contributed on several different levels. He suggested companies to look at; he helped flesh out themes; he gave me important feedback at various stages of the process; and his company, CitiStorage, turned out to be a prime example of a small giant, something I didnt realize when I started. Among those who helped me realize it were his colleagues at CitiStorage, including Brad Clinton, Peter Gunderson, Mike Harper, Bruce Howard, Manny Jimenez Sam Kaplan, Noelle Keating, Patty Lightfoot, Patti Kanner Post, Louis Weiner, and lastbut far from leastElaine Brodsky.

The first person I actually interviewed for the book was Gary Erickson of Clif Bar Inc., who immediately turned the tables on me, asking me a series of questions that helped get me on the right track from the start. He was able to do it because he was in the midst of writing his own book, Raising the Bar, which addressed many of the same issues I would wind up grappling with. Dean Mayer and Leslie Henrichsen were of great help as well, serving early on as guides through the wonderful world of Clif Bar.

As it turned out, the Erickson interview was just the beginning of one of the most stimulating, uplifting, thoroughly enjoyable reporting episodes of my career. Never have I had the opportunity to hang out with so many interesting people at so many fascinating companies, one right after the other. If youve already read the book, you know what Im talking about, and you can easily imagine why the experience was exhilarating. Here I would simply like to give credit to the people who helped make the reporting phase so much fun:

  • at Anchor Brewing in San Francisco: John Dannerbeck, Fritz Maytag, and Linda Rowe
  • at ECCO in Boise, Idaho: Karen Campbell, Rob Corrigan, Michelle Howard, Todd Mansfield, Bob Ohlson, Mike Pironi, Mike Scoll, Chris Thompson, Jim Thompson, Richard Vinson, and Ed Zimmer
  • at Hammerhead Productions in Studio City, California: Thad Beier, Dan Chuba, and Jamie Dixon
  • at New Hope Contracting in Dorchester, Massachusetts: Chris Howell, Rob Moreno, Chris Painten, Gene Pettiford, Danny Power, Peter Power, and Steve Quinn
  • at O. C. Tanner Co. in Salt Lake City: Adrian Gostick, Kent Murdock, Gary Peterson, and Shauna Raso
  • at Reell Precision Manufacturing in St. Paul, Minnesota: Bob Carlson, Jim Grubs, George Moroz, Joy Moroz, Bob Wahlstedt, and Steve Wikstrom
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