Small Giants

Are you ready to redefine success? "Small Giants" unveils a refreshing alternative to the relentless pursuit of growth at all costs. This isn't about becoming a corporate behemoth, but about building a deeply meaningful and exceptional business. Through captivating stories of companies that chose purpose over pure profit, you'll discover the power of building a culture of intimacy, fostering unwavering employee loyalty, and forging profound connections with your community. Prepare to be inspired by leaders who prioritize ethical considerations, embrace unconventional thinking, and understand that true success lies in the art of business, not just the bottom line. You'll gain practical insights into maintaining your company's unique 'mojo' through succession, navigating inevitable challenges, and adapting to change while staying true to your core values. This book offers a thought-provoking and emotionally resonant exploration of what it truly means to be a 'Small Giant' – a business that stands tall, not in size, but in impact, integrity, and enduring passion. Get ready to question conventional wisdom and embark on a journey to build a business that is not just successful, but truly extraordinary.

In this chapter of *Small Giants*, Bo Burlingham illuminates a pivotal moment faced by successful entrepreneurs: the choice of whether to relentlessly pursue growth or to deliberately remain small and exceptional. He begins with Fritz Maytag of Anchor Brewing, a man more captivated by the beauty of a small, well-crafted book than the allure of endless expansion. Anchor Brewing, once on the brink of collapse, had become a microbrewery pioneer, yet Maytag faced a capacity crisis, a siren song tempting him to go public and expand. But as Burlingham explains, Maytag paused, questioned, and ultimately chose to remain small, prizing the authenticity of his product and the quality of his company culture over unchecked growth. It’s a choice, Burlingham emphasizes, often unrecognized until it’s too late, subtly influenced by external pressures from advisors and media that equate size with success. The author then pivots to Gary Erickson of Clif Bar, poised to sell his company for a fortune, only to experience a visceral panic, a moment of clarity revealing the cost of sacrificing his company’s soul. Burlingham uses Erickson’s reversal to highlight the importance of aligning business decisions with personal values, even when faced with immense financial incentives. Next, Ari Weinzweig and Paul Saginaw of Zingermans Deli faced a similar crossroads, a debate over cloning their successful deli, a proposition that threatened the uniqueness Weinzweig so cherished. Their resolution, the Zingermans Community of Businesses, illustrates how growth can be redefined, prioritizing depth over breadth, local impact over national domination. Norm Brodsky's tale serves as a cautionary counterpoint, a messenger business owner blinded by the mirage of a $100 million company, leading to a disastrous acquisition and bankruptcy. Brodsky’s painful lesson underscores the need to understand one's motivations and risk tolerance, shifting from a focus on sales to a focus on people and profit. Finally, Danny Meyer of Union Square Hospitality Group exemplifies strategic growth, initially resisting expansion with strict criteria, then gradually embracing it while safeguarding his company's culture of enlightened hospitality. Meyer's journey reveals that growth, when aligned with core values and employee aspirations, can enhance rather than diminish a company's soul. Burlingham concludes by emphasizing that the choice to grow or not is a constant battle, a fight to preserve the essence of the business against the relentless pressures of the outside world; each entrepreneur must mindfully choose their path.

In "Small Giants," Bo Burlingham presents the story of Martin Babinec and TriNet Inc. as a cautionary tale about the pressures of growth. Babinec, initially seeking a small, independent lifestyle business, soon found himself on a roller coaster, grappling with demands he never anticipated. The narrative unveils a central tension: the struggle to maintain control and vision as external forces push for expansion. Babinec's early struggles, nearly bankrupt and buried in debt, paint a vivid picture of entrepreneurial desperation, a stark kitchen-table scene where tears blurred the lines of a failing business plan. His pivotal decision to target Silicon Valley startups, a counterintuitive move in the PEO world, highlights the first key insight: focus on high-value, referrable niches to survive initial scarcity. Securing that crucial $50,000 investment, while a lifeline, also marked the beginning of compromised independence, revealing that every infusion of capital comes with strings. Fritz Maytag's epiphany about capital-intensive businesses underscores the second insight: growth demands capital, often exceeding what profits can sustain, forcing entrepreneurs to cede equity. The chapter illuminates the Faustian bargain many founders face: rapid scaling necessitates outside investment, leading to a loss of control and a shift in priorities toward investor expectations. Burlingham then introduces the concept that even without external investors, internal pressures from employees and customers can compel growth, creating a dilemma where the desire to provide opportunities clashes with the founder's original vision. Jim Ansara's experience at Shawmut Design and Construction illustrates this, as does Bill Butler's struggle to stay small at W. L. Butler Construction, Inc., constantly battling market demands. The narrative gently shifts to explore the psychological toll of endless pursuit, with Jay Goltz's story serving as a stark reminder that the quest for bigger is not always better. Goltz's journey from a "biz kid" featured in Forbes to a recovering "entrepreneuraholic" underscores the insight: define success beyond conventional metrics of size and wealth to avoid the trap of endless expansion. The chapter concludes with Lily Booker's heartfelt appreciation, a moment that opens Goltz's eyes to the value he brings to his employees, reinforcing the insight: recognize and value the positive impact your business has on individuals, the 'starfish' you save, as a source of mojo and a measure of true success.

In Bo Burlingham's "Small Giants," the chapter "The Mona Lisa Principle" opens with the story of Ani DiFranco and her decision to relocate her music company, Righteous Babe, to a renovated church in Buffalo, New York, a city grappling with economic decline and a pervasive sense of hopelessness; this decision serves as a powerful example of the profound connection between small giant companies and their communities. Burlingham introduces the core tension: while many businesses prioritize growth and expansion, these exceptional companies deliberately root themselves in a specific place, understanding that their identity and success are intertwined with the local environment, and the author refers to Danny Meyer, who uses the analogy of the Mona Lisa to illustrate how context profoundly shapes perception and value, suggesting that a business, like a work of art, thrives when it's harmoniously integrated into its surroundings. One key insight emerges: cultivate a symbiotic relationship with your community, recognizing that the unique character of a place can significantly influence your business's identity and success, and Ari Weinzweig uses the French concept of "terroir" to further explain this idea, arguing that just as soil and climate affect the flavor of food, a community's spiritual terroir shapes a business's character. The narrative tension builds as Burlingham contrasts this community-focused approach with mass-produced businesses that strive to eliminate regional variations, and here it becomes clear that the small giants embrace their local quirks and use them to their advantage, fostering a sense of authenticity and connection that resonates with customers and employees alike. Another insight is revealed: prioritize depth of connection over breadth of expansion, understanding that a strong local presence can foster a unique and resilient business culture. Burlingham showcases examples like Zingermans in Ann Arbor and Anchor Brewing in San Francisco, businesses deeply woven into the fabric of their cities, and it becomes clear that these companies actively contribute to their communities, not as a marketing ploy, but as an integral part of their mission. The author emphasizes the importance of genuine, unheralded acts of charity, such as Anchor Brewing's matching employee donations, highlighting that these personal gestures foster a deeper sense of connection and loyalty. A further insight is that to build a business with lasting impact, one must commit to contributing to the well-being of the community, viewing it not as an obligation but as a source of joy and fulfillment. The emotional arc resolves as Burlingham circles back to Zingermans, illustrating how their deep community involvement has created a virtuous cycle of support and appreciation, and the small giants understand that their success is not just about profits, but about creating a positive impact on the lives of their neighbors, friends, and fellow citizens, fostering a sense of belonging and shared purpose. Finally, Burlingham suggests that the most enduring businesses are those that recognize the power of place, understanding that their roots run deep and their destinies are intertwined with the communities they serve, and these companies aren't just doing business; they're building something far more meaningful, a legacy of connection, contribution, and community pride, like a mighty tree whose roots nourish the soil and whose branches provide shelter for all. In essence, the chapter advocates for a more human-centered approach to business, one that values relationships, community, and a sense of place above all else.

In Bo Burlingham's exploration of 'Small Giants,' the chapter 'Ties That Bind' opens with Marilyn McDevitt Rubin's dining experience at Danny Meyer's Tabla, setting the stage to reveal Meyer's philosophy of enlightened hospitality. Meyer, as Burlingham illustrates, doesn't just aim for impeccable service, but an emotional connection where customers feel valued and understood, a concept he terms 'enlightened hospitality.' This approach, Tom Peters notes, stems from a 'not totally stupid obsession' that drives great companies. The author explains how Meyer distinguishes between teachable service skills and the innate emotional skill of making customers feel 'you're on their side,' hiring for empathy and training for technical skills. Burlingham then pivots to Clif Bar, showcasing how they foster intimacy through grassroots marketing, building direct relationships with consumers via events and sponsorships, prioritizing the emotional connection over mere sales volume. As Gary Erickson realized, companies lose their mojo when they forget the emotional connection with the consumer, concentrating instead on the process of business. CitiStorage, under Norm Brodsky's leadership, exemplifies another facet: creating a warm, upbeat corporate culture that extends to customer relationships. His wife, Elaine, champions customer service training for all employees, fostering a sense of shared purpose. CitiStorage illustrates that a positive internal culture radiates outward, influencing customer perception and loyalty. The narrative further transitions to ECCO, a backup alarm company, illustrating how it embraced customer intimacy by tailoring products to individual needs, adopting what Michael Treacy and Fred Wiersema term a 'value discipline'. Jim Thompson and Ed Zimmer fostered close relationships with distributors and vehicle makers, realizing that customer orientation was the right thing to do, and emphasizing that becoming customer intimate meant being able to provide customers with products that could serve a multiplicity of their needs, and to do it at a lower cost than anyone else in the market. Finally, the chapter culminates with Righteous Babe, Ani DiFranco's record label, where customer devotion is legendary, with fans actively protecting the company and staff responding to inquiries with handwritten notes. This level of dedication stems from a genuine belief in building an alternative to corporate culture. The author underscores that the intimate bonds aren't forged by those at the top, but by the managers and employees who embody the company's spirit. The chapter suggests that true success lies in prioritizing relationships and fostering a sense of community, even if it means putting the customer second, and that prioritizing relationships and fostering a sense of community builds lasting success, more powerful than fleeting transactions. It's about building a sense of common cause between the company, its employees, its customers, and suppliers, a sense of community that rests on integrity, professionalism, and direct human connection.

In Bo Burlingham's exploration of 'Small Giants,' he shines a light on the profound impact of intimacy within a company's culture, using the story of Michelle Howard at ECCO as a starting point. Howard, a dedicated employee and part-owner, embodies the spirit of a workplace where individuals feel valued and supported, a stark contrast to the impersonal nature of large corporations. Burlingham posits that a motivated workforce isn't merely about morale or compensation; it's about fostering a deep sense of belonging and psychic ownership. He introduces the concept of intimacy as the close relationship where employees trust that the company cares for them personally, standing by them through challenges. The author then uses Anchor Brewing, under Fritz Maytag, as an example of how a smaller staff can create such an environment, emphasizing the importance of interconnectedness and shared responsibility. Maytag's philosophy was rooted in trust and empowerment, fostering a cooperative rather than adversarial atmosphere. He also contrasts this with his experience at the larger Maytag factory, where he witnessed the downsides of impersonal work environments. Burlingham then examines O.C. Tanner Company, a larger organization, and how its founder, Obert Tanner, managed to cultivate a similar sense of intimacy through personal connections and generous employee benefits, even establishing a trust to protect employees' jobs after his death. The chapter builds tension around the question: how can a company create an environment where employees are deeply connected and committed? The author then offers three imperatives: imbuing the company with a higher purpose, demonstrating unexpected care for employees, and fostering collegiality. Norm Brodsky's 'knock-your-socks-off policy' at CitiStorage exemplifies the second imperative, while the close-knit road crew of LFS Touring illustrates the power of collegiality, made possible by unique employment practices. Burlingham concludes by emphasizing that small giants are aware of the internal worlds they create, striving to build businesses where people can lead fulfilling lives, making the quest for such an environment a fulfilling mission in itself. It’s about building a better way of life, right there in their own little corner of the globe, a place where humanity thrives amidst commerce.

In Bo Burlingham's exploration of Reell Precision Manufacturing, a compelling narrative unfolds, revealing a company where ethical considerations and employee empowerment take center stage. The story of Joe Arnold, an engineer grappling with the moral implications of designing a hinge for a cigarette display, sets the stage for understanding Reell's unique culture. Arnold's dilemma, a microcosm of larger ethical questions, highlights the tension between personal values and corporate objectives. The resolution—Reell's decision to forgo the project—underscores a commitment to values over immediate profits, a testament to their belief that a company's soul is worth more than any contract. Burlingham then broadens the scope, introducing Reell as a real-world 'Galt's Gulch,' a haven where founders reorder the world within their walls, defying conventional management wisdom. The company's matrix organizational chart, the roles of 'advisers' rather than supervisors, and the 'forum' for employee concerns paint a picture of radical decentralization. The founders, former 3M employees, instilled Judeo-Christian values, initially sparking both unity and division, eventually leading to a more inclusive 'Direction Statement'. This evolution underscores the insight that a company's values must be both deeply held and adaptable to diverse perspectives. Furthermore, Reell's embrace of 'teach-equip-trust' (TET) marks a shift from command-and-control to empowerment, revealing that true quality and efficiency arise when employees are trusted to use their full potential. As the founders approach retirement, their commitment to employee ownership through an ESOP reinforces their belief in shared prosperity and enduring values. However, Burlingham doesn't shy away from contrasting perspectives, introducing Jay Goltz of The Goltz Group, who champions a more demanding, profit-driven approach, suggesting that compassion must be balanced with accountability. Goltz's philosophy serves as a counterpoint, reminding us that financial stability is essential for any company to fulfill its promises to employees. The chapter ends with the story of Selima Inc. and Hammerhead Productions, highlighting that success can also mean prioritizing personal freedom and creative passions over growth and profits, as both entities deliberately chose to remain small and focused. Finally, the cautionary tale of Rhythm Hues, a company with a vibrant culture and deep employee care but struggling financially, serves as a stark reminder that even the strongest values cannot sustain a business without a solid financial foundation, a lesson etched in the annals of small giant aspirations.

In Bo Burlingham's exploration of how even the mightiest small giants can stumble, he recounts the near-collapse of Reell Precision Manufacturing, a company celebrated in the original edition of "Small Giants." The initial shock came with the sudden departure of co-CEO Steve Wikstrom, signaling a cultural disintegration that threatened the company’s very existence. Burlingham, like a seasoned detective, retraces Reell's steps, revealing a critical misstep: prioritizing market share over maintaining healthy gross margins. A decision in the late 90s to chase Asian markets, driven by a fear of layoffs, led Reell down a path of price concessions and compromised its long-standing commitment to quality and profitability, a decision that rippled through the company like a seismic event, fracturing the bedrock of its values. Burlingham then broadens the scope, introducing Nicks Pizza Pub, a beloved community hub, which faced its own crisis due to financial naiveté and excessive debt, illustrating the importance of understanding a balance sheet. Sarillo’s vision, though noble, nearly crumbled under the weight of ignored financial realities, a stark reminder that passion alone cannot sustain a business. The author further dissects the downfall of Rhythm Hues, an award-winning visual effects company, which succumbed to an unsustainable business model in the cutthroat film industry, where fixed-bid contracts and government subsidies eroded their margins. John Hughes, the CEO, delayed layoffs to preserve the company's culture, but this decision ultimately led to bankruptcy, revealing the agonizing choices leaders face when a business model falters. Burlingham distills three financial imperatives for long-term success: protect gross margins, maintain a healthy balance sheet, and ensure a sound business model. Reell's story offers a beacon of hope, as Kyle Smith navigated the company back from the brink by prioritizing profitability over revenue and restoring the company’s core values. Nicks Pizza Pub also survived, thanks to an outpouring of community support, underscoring the enduring power of connection and trust. Ultimately, Burlingham paints a vivid portrait of resilience, urging leaders to proactively address financial vulnerabilities and adapt their business models to changing realities. The lesson is clear: a small giant's strength lies not only in its unique culture but also in its unwavering commitment to financial stewardship.

In "Small Giants," Bo Burlingham presents the story of University National Bank Trust Co. (UNBT) as a case study in succession and maintaining 'mojo.' The narrative centers on Carl Schmitt, UNBT's founder, who built a unique banking culture celebrated for its unconventional marketing and exceptional customer service. Schmitt believed in limiting growth to preserve service quality and employee satisfaction, a philosophy that led to impressive returns. However, fate intervened when Schmitt faced health issues and regulatory pressures, leading to the bank's sale to Comerica. This event underscores the central tension: how small giants can preserve their unique qualities during leadership transitions. Burlingham then broadens the discussion to other companies, highlighting the challenges of succession planning, particularly the emotional and financial sacrifices required to maintain a company's core values. He contrasts Norm Brodsky's indifference to succession with Fritz Maytag's desire to see his company's personality continue, emphasizing that a company often develops a unique character akin to its founder, something difficult to replicate. Gary Erickson of Clif Bar is presented as a proactive planner, stressing the importance of estate planning to avoid forced sales due to taxes, a fate that threatens many small businesses. The narrative further explores employee stock ownership plans (ESOPs) as a means of transferring ownership, with examples from Reell Precision Manufacturing and ECCO. ECCO’s journey, from Jim Thompson's gradual handover to Ed Zimmer to its eventual sale to Berwind Corporation, illustrates the complexities and potential benefits of such transitions. Finally, the chapter examines Kent Murdock's transformation of O.C. Tanner, a company that had to reinvent itself to survive, revealing that even successful companies must adapt to changing market conditions. O.C. Tanner shifted from selling products to providing solutions, embracing technology and cultural changes to thrive. The chapter closes by acknowledging that some companies, like Selima Inc. and Righteous Babe, are so intrinsically linked to their founders that their mojo may not survive their departure, posing a question: Can a company truly outlive its founder’s vision, or is it destined to fade once the original spark is gone?

In this chapter of *Small Giants*, Bo Burlingham explores the essence of successful, passion-driven businesses through the lens of Bernard A. Goldhirsh, the founder of *Inc.* magazine. Burlingham recounts Goldhirsh's unconventional journey from a sailing enthusiast to a publishing magnate, emphasizing how Goldhirsh's early dreams of a cooperative school ship, a "Buckminster Fuller, spaceship-earth model," shaped his approach to business. Goldhirsh saw entrepreneurship as an art form, a creative endeavor akin to painting on a blank canvas, where business was the medium of expression. Burlingham illustrates this with Goldhirsh's experience at Polaroid under Dr. Edwin Land, where he witnessed the profound impact of one person's idea on creating jobs and driving economic renewal. The author reveals how Goldhirsh championed the idea that a company's value isn't measured by size or profit alone, but by the strength of its relationships with employees, customers, and the community, a sentiment echoed by figures like Fritz Maytag of Anchor Brewing, who valued tradition and quality over cost-cutting efficiencies, seeing his craft as a means of contributing something unique to the world. Burlingham contrasts Selima Stavola, who focused almost solely on the art of clothing design, with Norm Brodsky, who found artistry in the challenge of building a records storage business, seeing it as a puzzle to be solved with peripheral vision. Ari Weinzweig's emphasis on great food, great service, and great finance at Zingermans exemplifies the balance required to sustain a passion-driven enterprise. The author also uses the example of Righteous Babe Productions, where Ani DiFranco and Scot Fisher navigated the complexities of blending art and commerce, each respecting the other's role. Burlingham shows that the small giants prioritize passion, ensuring that the business remains a mechanism for pursuing their creative endeavors, rather than the other way around; otherwise, the company risks losing its soul. Finally, the author resolves that these companies, like New Hope Contracting, set a new standard for excellence, reminding us that businesses shape our communities and values, and that a commitment to high standards can make the world a better place. Ultimately, the chapter serves as a reminder that a business can be more than just an economic mechanism; it can be a reflection of one's deepest passions and a source of profound satisfaction.

In “Ten Years On,” Bo Burlingham revisits the companies profiled in *Small Giants*, examining how they fared in the decade following the book’s initial publication, a period marked by significant economic and technological shifts. Burlingham observes that while change is inevitable in business, the *reasons* for change vary widely, from broad economic forces like the Great Recession, which hammered The Goltz Group and W.L. Butler Construction, to more personal factors, such as Ani DiFranco’s shift to a less demanding touring schedule after starting a family, impacting Righteous Babe Records. The author notes that Hammerhead Productions, initially resistant to the challenges faced by the VFX industry, eventually had to reinvent itself by producing original content rather than just providing services. Norm Brodsky’s CitiStorage was sold, and Fritz Maytag eventually sold Anchor Brewing to owners who would preserve the company’s culture. Burlingham emphasizes that a key tension for small giants is balancing growth with their core values, and he highlights how Clif Bar, Union Square Hospitality Group, and Zingermans Community of Businesses each navigated this challenge. Clif Bar embraced employee ownership, fostering commitment during a salmonella outbreak-related recall. Danny Meyer of Union Square Hospitality Group, once wary of growth, came to see it as an engine for cultural advancement, provided it was well-paced and intentional. He even spun off Shake Shack to keep USHG a *small* giant. Zingermans adopted open-book management, empowering employees to make financially intelligent decisions, a move that proved crucial during the recession. These examples, like individual trees weathering a storm, illustrate that even the strongest companies must adapt to survive, but those that remain true to their values often emerge even stronger. Burlingham underscores that greatness in business isn't about size but about the choices companies make and the values they uphold, a message that has resonated globally, inspiring business leaders to prioritize purpose over pure expansion.

Small Giants champions a business philosophy prioritizing values, relationships, and community impact over relentless growth. The core takeaway is that 'enough' is a valid and powerful choice. Success isn't solely defined by financial metrics, but by the depth of connection with employees, customers, and the surrounding community. Emotionally, the book emphasizes the fulfillment derived from building a business that reflects personal values and contributes positively to society. Practical wisdom includes consciously choosing a growth path aligned with values, cultivating strong company culture, prioritizing customer intimacy, and ensuring financial stability to support long-term sustainability. The book underscores the importance of adapting to change while staying true to core principles, fostering employee empowerment, and viewing business as a creative endeavor. Ultimately, Small Giants redefines success, advocating for a more humanistic and purpose-driven approach to entrepreneurship.