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Social Enterprise Symposium

03.01.2018

12 nATUraLlawS of BUSINesS

Presented by Ari Weinzweigfor MACC Social Enterprise Symposium

March 1, 2018

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By the end of the workshop, you will be able to:

• Explain the "12 Natural Laws of Business" and how to use this framework to approach starting and operating an impactful business.

• Use a variety of new tools and techniques to leverage these laws back in your own organization.

• Call upon a network of peers to help get past roadblocks.

workshop objectIves

Training CompactTrainees agree to:

Take responsibility for the effectiveness of their training

at Zingerman’s.

Trainer agrees to: a) Document clear performance expectations.

b) Provide training resources. c) Recognize performance.

d) Reward performance.

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misSIon staTemEntWe share the Zingerman's ExperienceSelling food that makes you happyGiving service that makes you smileIn passionate pursuit of our missionShowing love and care in all our actionsTo enrich as many lives as we possibly can.

Fiscal Year 2014 - 2015

CurRenT StATE ofManaging Partner(s) Staff Annual Plan Sales

Q1-2 Actual + Q3-4 Forecast Sales

1982Grace SingletonRick StrutzRodger Bowser

185 $ 15.4 million $ 15.2 million

1992 Frank CarolloAmy Emberling 138 $ 10.4 million $ 10.6 million

1994 Maggie Bayless 10 $ 1.9 million $ 1.9 million

1996Mo FrechetteToni MorellTom Root

82(Q2

300+)$ 13 million $ 14.1 million

2001 John LoomisAubrey Thomason 16 $ 1.5 million $ 1.5 million

2003 Alex Young 165 $ 8.9 million $ 9.0 million

2004 Steve Mangigian 19 $ 2 million $ 2.3 million

2009 Charlie Frank 4 $ 459,000 $ 394,000

2014 Kieron Hales 7 $ 1.1 million $ 820,000

2015 Ji Hye Kim 1 0 0

Ari WeinzweigPaul Saginaw - Co-Founding PartnersRon Maurer, VPA

36Larry RobillardArianna TellezSara Whipple

ZCoB TOTALS 662 $ 54.6 million $ 55.9 million* Staff Partners; employees from the ZCoB who are an active part of the Partner’s Group & included in the consensus decision making

Department for People, Donations, Finance, Intentional Technology, Marketing & Graphics, Payroll, Service Steward, Zingerman’s Press

stAfF parTnErS

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To help raise awareness of how our energy level impacts our workplace.

1. Think of a business you've gone into and it felt flat as can be. What did that feel like? Write down words that describe that feeling.

2. Now think of a business with really great "buzz." Imagine yourself walking into that business. Write down some adjectives that describe how it feels.

3. If you were a new staff member and you came on shift in each of those settings, how would you react/what would you think?

4. If you were a shift manager arriving at the flat business, what would you do to generate more energy?

Energy

Agenda:

Purpose:

Limit: _____ minutes to complete

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Energy crisISEnvironment

Workplace

3720201520

Power of Purpose - Dean Tucker

42222

Football Analogy

Organic vs. Commercial Farming

Bad Work < > Good Jobs < > Good Work

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12 natural Laws of businesS1. An inspiring, strategically sound vision leads to

greatness.

2. You need to give your customers some really compelling reasons to buy from you.

3. Without good finance, you fail.

4. People do their best work when they’re part of a really great organization.

5. If you want staff to give great service, give great service to staff.

6. To get great performance, you need to give clear expectations and training tools.

7. Successful businesses do things others know they should do, but generally don’t.

8. To get to greatness you’ve got to keep getting better. All the time!

9. Success means you get better problems.

10. Strengths lead to weaknesses.

11. It takes longer to make something great happen than you think.

12. Great organizations are appreciative and the people in them have more fun.

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2. You need to give your customers really compelling reasons to buy from you.

3. Without good finance, you fail.

4. People do their best work when they are part of a really great organization.

1. An inspiring, strategically sound vision leads to greatness.

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reasONS to BUY

To analyze why your customers buy from you.

What are the most compelling reasons your customers do business with you rather than with the competition?

Now Future/Vision

Agenda:

Purpose:

Limit: _____ minutes to complete

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5. If you want staff to give great service, give great service to staff.

5 stepS To efFectivEly handLINg customer complaints

1. Acknowledge the complaint.

2. Sincerely apologize.

3. Take action to make things right.

4. Thank the guest.

5. Document the complaint.

3 stepS To grEat SERvice1. Figure out what the guest wants.

2. Get it for them.

• Accurately

• Politely

• Enthusiastically

Customer Service Expectations

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stages of learning a skiLl

U C

C C

C I

U I

6. To get great performance from your staff, you need to give them clear expectations and training tools.

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7. Successful businesses do things others know they should do, but generally don't.

8. To get to greatness, you've got to keep getting better. All the time!

9. Success means you get better problems.

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Take a moment to reflect on this question:

Jot down any thoughts that come to mind.

doing the "hard" thing

What have I resisted doing because it doesn't sound like fun/it would be a lot of work, but I know in my gut it would be good for our company?

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10. Strengths lead to weaknesses.

11. It takes longer to make something great happen than you think.

12. Great organizations are appreciative and the people in them have more fun.

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my belief

my action

others' beliefs

others' actions

How Beliefs are Formed

the belief cycle

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creating a vision ofgreatness

how defines visIoN

What Vision is NOT: Mission Strategic Plan Something a consultant does for you Only for top of the organization

Elements of an Effective Vision:1) Inspiring2) Strategically sound3) Documented4) Communicated

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To practice drafting a vision of success.

Step 1: Pick your topic

Step 2: Pick your time frame

Step 3: Put together a list of "Prouds"

Step 4: Write the first draft of the vision

• Go for something great

• Write it from the heart

• Get in the future

• Go quickly

• Use the "Hot Pen" technique

• Get Personal

--------------------------------------------------------

Step 5: Re-view and re-draft

Optional - Step 6-A, 6-B, 6-C - more re-drafts

Step 7: Get input from ACES

Step 8: Let's go! Start sharing the vision

drafting a visION of sucCesS

Purpose:

Agenda:

LimIT: minutes

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As a group:

1. Choose a facilitator to keep you on time, a recorder to write your group's questions, and a spokesperson to ask the questions.

2. At tables, please discuss: • What have we heard? • What is our reaction? • What questions do we have?

3. Document your questions and prioritize them.

4. Be ready to ask your group’s top priority question.

open forum

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HOw having Hope helps

Why hope?

Cantril's Ladder

Where hope comes from

Benefits of having hope

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Help people see a better future

Help them see how they might get there

Show people how much they matter

Help them see how much their work matters

Help them see how small steps are key to success

Show them how they fit into a larger whole

A Six Pointed Hope Star

1.

3.

4.

5.

6.

1

2

3

4

5

6

2.

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solVing the OrganizationaL enERGY criSIs

Living Zingerman's 12 Natural Laws of Business

• Laws that help manage organizational energy effectively (9,10)

• Laws that take organizational energy (7,8,11)

• Sustainable business/sustainable farming (12)

• Laws that build organizational energy (1-6)

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1. Which Natural Law was the most surprising/interesting? Why?

2. What was the most interesting or useful thing you learned today?

3. What is your top priority Action Plan item when you return to work?

zingerman's 12 NaturAL laws

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 Ari Weinzweig Co-Founding Partner, Zingerman’s Community of Businesses In 1982, Ari Weinzweig, along with his partner Paul Saginaw, founded Zingerman’s Delicatessen with a $20,000 bank loan, a Russian History degree from the University of Michigan, 4 years of experience washing dishes, cooking and managing in restaurant kitchens and chutzpah from his hometown of Chicago. They opened doors with 2 employees and a small selection of specialty foods and exceptional sandwiches. Today, Zingerman’s Delicatessen is a nationally renowned food icon and the Zingerman’s Community of Businesses has grown to 10 businesses with over 750 employees and over $55 million in annual revenue. Aside from the Delicatessen, these businesses include Zingerman’s Bakehouse, Coffee Company, Creamery, Roadhouse, Mail Order, ZingTrain, Candy Manufactory, Cornman Farms and Miss Kim, a Korean restaurant that opened in November 2016. No two businesses in the Zingerman’s Community of Businesses are alike but they all share the same Vision and Guiding Principles and deliver “The Zingerman’s Experience” with passion and commitment. Besides being the Co-Founding Partner and being actively engaged in some aspect of the day-to-day operations and governance of nearly every business in the Zingerman’s Community, Ari Weinzweig is also a prolic writer. His most recent publications are the rst 4 of his 6 book series Zingerman’s Guide to Good Leading Series: A Lapsed Anarchist’s Approach to Building a Great Business (Part 1), Being a Better Leader (Part 2), Managing Ourselves (Part 3) and the newly-released Part 4, The Power of Beliefs in Business . Earlier books include the Zingerman’s Guides to Giving Great Service, Better Bacon, Good Eating, Good Olive Oil, Good Vinegar and Good Parmigiano-Reggiano . Ari regularly travels across the country (and world) on behalf of ZingTrain, teaching organizations and businesses about Zingerman’s approach to business. He is a sought-after Keynote speaker, having delivered keynotes for Inc. 500, Microsoft Expo Spring Conference, Great Game of Business Gathering of Games, Positive Business Conference at the University of Michigan Ross School of Business, American Society for Quality (ASQ), and the American Cheese Society. Recently, Ari and Paul Saginaw addressed an audience of 50,000 as speakers for the University of Michigan’s 2015 Spring Commencement. One of Zingerman’s Guiding Principles is being an active part of the community, and in 1988 Zingerman’s was instrumental in the founding of Food Gatherers, a food rescue program that delivers over 5 million pounds of food each year to the hungry residents of Washtenaw county. Every year Zingerman’s donates 10% of its previous year’s prots to local community organizations and non-prots. Ari has served on the board of The Ark, the longest continuously operating folk music venue in America. Over the decades, the Zingerman’s founding partners have consistently been the recipients of public recognition from a variety of diverse organizations. In April 1995, Ari and Paul were awarded the Jewish Federation of Washtenaw County’s rst Humanitarian Award. In 2006, Ari was recognized as one of the “Who’s Who of Food & Beverage in America” by the James Beard Foundation. In 2007, Ari and Paul were presented with the Lifetime Achievement Award from Bon Appetit magazine for their work in the food industry. Ari was awarded the Lifetime Achievement Award by the American Cheese Society in 2014. And Ari’s book, Building a Great Business was on Inc. magazine’s list of Best Books for Business Leaders. Notwithstanding the awards, being engaged on a daily basis in the work of 10 businesses and 21 partners, writing books on business and in-depth articles on food for the Zingerman’s newsletter, Ari nds time to be a voracious reader. He acquires and reads more books than he can nd room for. Ari might soon nd himself the owner of the largest collection of Anarchist books in Ann Arbor outside the Labadie collection at the University of Michigan library!

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Maggie BaylessManaging Partner, Zingerman’s Training Inc.

Zingerman’s Delicatessen has become an Ann Arbor institution, and Maggie Bayless has been associated with it since the doors opened in 1982. Back then, as a student in the University of Michigan’s MBA program, she left at 4:00 AM every Saturday to drive to the Detroit suburbs and collect the bread needed to make the Deli’s world-famous sandwiches. According to Maggie, “After a week of dealing with business theory, it was great to get behind the wheel of the bread truck. I’d spend my day loading and unloading bread, selling cheese, and helping make a brand new business successful. I’d collapse into bed on Saturday night—physically exhausted but ready to face school again on Monday morning.”

Maggie moved to Ann Arbor in 1979, after graduating from Oberlin College with a degree in German Literature and spending two years working in a Chicago bank. Her first job in Ann Arbor was as a server in a restaurant, where she met Ari Weinzweig and Paul Saginaw, founders of Zingerman’s. After receiving her MBA, Maggie worked for General Motors before joining American Natural Beverage (maker of Soho Natural Soda), as Midwest Regional Sales Manager. In 1988, she helped Zingerman’s computerize their inventory and product costing systems, while working full-time as project manager and instructional designer for Arbor Systems Group. At Arbor Systems, and later on a freelance basis, Maggie managed the development of training courses for corporate clients that included IBM, NCR, and the Ford Motor Company.

In 1994, Maggie read Ari and Paul’s just written long-term vision (Zingerman’s 2009) and saw an opportunity to partner up with her old pals. Zingerman’s Training, Inc. (a.k.a. ZingTrain) was born to act as “keeper of the corporate knowledge” within the Zingerman’s Community of Businesses, helping Zingerman’s managers improve their departmental training. Through the years, ZingTrain has shared Zingerman’s expertise with thousands of outside clients through seminars and customized training. ZingTrain’s clients include not only specialty food retailers, but also organizations from many other industries, including banking, real estate, health care, manufacturing and non-profits. Started in Maggie’s attic, ZingTrain now has its own training space, a staff of 12 and sales of $2 million/year.

Maggie developed Zingerman’s approach to training (Bottom-Line Training®) and regularly leads Zingerman’s staff Train-the-Trainer and internal customer service classes. She also facilitates ZingTrain seminars and ZingTrain’s executive roundtable. Her “Staff Training” column was a regular feature in Gourmet Retailer magazine from 2000-2014.

[email protected]

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ZingTrain was founded in 1994 to share Zingerman's unique and uniquely successful approach to business.

Our training covers a variety of topics including customer service, marketing, leadership, training, visioning, open book management, and more!

We offer:• Public 2-day seminars and 4-hour workshops• Private training at our location or yours• Implementation support and Vision Facilitation• Books and Training DVDs• Keynotes

ZingTrain shares the tools, techniques and philosophies that are honed by constant use and improvement in Zingerman’s businesses, each and every day.

Amongst the praise we frequently hear from our clients is that our approach and systems are applicable to businesses of varying industries, organizational structures and size -- and that they love how committed we are to their success!

what is ?

• Restaurants, Hospitality, andEntertainment

• Governments, Cities andPublic Associations

• Real Estate and PropertyManagement

• IT Services• Retailers and Food Co-ops• Law Firms• Libraries, Universities, Schools• Non-Profi ts• Financial Services• Manufacturers/Makers/

Producers• Dental and Health Care• Trade Associations, including

the National CooperativeGrocers Association (NCGA)

Sign up for e-news: zingtrain.comCall us: 734-930-1919Email us: [email protected]

sTay iNtOuCh!

Our Clients

Go to zingtrain.com to see a list of specifi c clients and read real-life client stories!

“The ZingTrain work was just the absolute perfect message at the perfect time. Every single person in the group was impacted by it. It’s changing the way our entire team is working.” - Rick Bayless, Frontera Grill