Leadership Lessons from "Small Giants"
Since many who follow me are students of how to be a better leader, you have likely read Jim Collins' book "Good to Great". It has been a staple for many business leaders, exploring what it takes to transform companies into large, successful enterprises. Today, I highlight a book that is in contrast to what Jim Collins wrote. Bo Burlingham's "Small Giants" offers a different perspective, celebrating companies that choose to prioritize greatness over growth. These businesses often reject the conventional notion that "bigger is always better," and focus on building exceptional organizations with trust, a strong sense of purpose, deep relationships, and sustainable practices. In this book, Bo provides valuable insights for leaders who seek to create a lasting impact without sacrificing core values.
A key theme, which I appreciated, is that "Small Giants" presents the challenge of maintaining a "family" culture as a company grows. Burlingham quotes Fritz Maytag, founder of Anchor Brewing Company, who stated, "There is generally an inverse correlation between the number of people who work for a company and the strength of their emotional ties to it." Fritz fostered a strong sense of community and overall health of the company and the corporate culture over short-term profit demands prevalent in today’s business arena. This observation resonates deeply with me as I have witnessed firsthand how rapid expansion can dilute the trust, close-knit relationships, and shared sense of identity that define smaller organizations. The book delves into how several Small Giants navigate this challenge, emphasizing the importance of intentionality in preserving culture, even as the company scales. Leaders of these companies recognize that fostering strong emotional ties requires ongoing effort, investment in employee development, and a commitment to open communication.
Another thought-provoking aspect of "Small Giants" is its exploration of the potential pitfalls of setting priorities that are out of balance. A primary example is the idea of social responsibility at the expense of business fundamentals. Burlingham quotes Ari Weinzweig, CEO of Zingerman's, who states, "I have never encountered angrier and more cynical employees than those I've met in socially responsible companies that have been so focused on saving the world they neglect to do what was necessary to save themselves." This thought is a caution for leaders. While social responsibility is important, Weinzweig suggests that it cannot come at the cost of financial stability and employee well-being. Small Giants demonstrate that true sustainability requires a balanced and long-term thinking approach, where purpose and profit work in harmony.
"Small Giants" raises important questions about the long-term sustainability of exceptional companies. Burlingham asks, "Can companies maintain and preserve their mojo when the founder leaves, or dies? Can they even preserve their independence?" In today's business environment, mergers and acquisitions, and Private Equity firms are commonplace, and the pressure to maximize shareholder value often trumps other considerations. The book explores how several Small Giants grapple with these challenges, highlighting the importance of succession planning, values-based leadership, and a deep commitment to preserving the company's unique identity.
"Small Giants" is a refreshing and inspiring perspective on leadership. It’s a reminder that success can be defined in many ways, and that building a great company is not always about achieving massive scale. Bo illustrates that by prioritizing people, trust, purpose, and sustainable practices, leaders can create organizations that not only thrive but also make a positive impact on the world. The lessons from "Small Giants" are numerous and a valuable resource for any leader who seeks to cultivate a company culture that is both enduring and exceptional.
