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Marc Malnati Interview – In case you missed it

February 21, 2014 by Bob Clinkert Leave a Comment

In case you missed the latest Willow Creek Association “BizBreakfast” – “Deep Dishing with Marc Malnati”, on Friday, February 21, 2014, at Willow, I put together the following summary of the interview. Marc Malnati is the current owner of the family-owned pizza business Lou Malnati’s. Lou Malnati’s has approximately 36 locations in the Chicagoland area. malnatiSmall

A short disclaimer. I was taking notes and it is entirely possible that some of what I write below from my notes and memory may not be entirely accurate. I accept your grace in advance, and please feel free to correct me!

History

  • In 1978, when he was 22 years old he graduated with a business degree, and the same year his dad died they had to close the Flossmoor store for lack of revenue. They lost about a half-million dollars that took several years to pay off.

  • Marc says, “The mistakes you make early on in your business can kill you.” It is much easier to lose money than make money. One bad business can lose enough money to close three healthy businesses.

  • In 1979 his mom suggested that he set up at “Chicagofest” to sell pizza. The sold more than 80,000 slices of pizza in ten days. That positive experience motivated him to pursue growing the business.

Marc’s Employees and Organizational Culture

  • His employees are willing to treat his business like it was their own. Over 25% of his full-time staff has been with the business for 10 years or more – significantly better than the average for the restaurant business.

  • Their staff, NOT the customer, is the highest priority of the Lou Malnatis business. Of course, the end result of that decision is much better customer experience across the board.

  • People – the staff – their development, care and support – are always the biggest challenge to contend with at Lou Malnatis.

  • One thing he and his staff take pride in is the organizational culture.

Marc’s Secret Sauce for Business Success – Leadership Coaching

  • About 25 years ago, Marc decided to bring in a counselor/executive coach for a two hour off-site meeting with him and his executive staff to help them work through issues. He figured that should be plenty of time. After about 25 minutes of pleasantries, things quickly devolved into yelling, screaming and verbal sparring.

  • Marc decided to schedule a “wrap-up” session for the next month to get the issues completely solved. This time, the pleasantries only lasted a few minutes.

  • Needless to say, those sessions have continued for the last 25 years. The executive leadership team eventually extended these coaching session to other groups of employees to spread the “secret sauce” throughout the organization.

  • He brings his leadership staff to the Willow Leadership Summit every year. The utilize things they learn during the summit. Their latest take away is Bill Hybel’s 6×6 idea he shared at the 2013 Summit.

  • This is almost a direct quote, “If you are going to be around in business a long time, whether you are a Christian-owned business or not, you have to adopt Christian principles.”

  • These principles include integrity, generosity, and “investing in and developing people so they rise to a level beyond which they ever dreamed they could” – **I love that one by the way!! Unleash the Masterpiece!!**

Lawndale Location

  • In 1996, Malnatis had 9 locations. At that time, Wayne Gordon – a Chicago pastor who decided to move his family into one of the poorest and most crime-ridden Chicago neighborhoods – asked Marc Malnati to consider “tithing” his tenth location by opening it in the Lawndale neighborhood. Wayne explained that the area needed a family-owned restaurant where community members could celebrate birthdays, hold business meetings, and just get out and enjoy some good pizza.

  • After a great deal of prayer and discussion, Marc agreed and opened the tenth location in an old, long-vacant and distressed local grocery store. Marc hoped that the location would become a bright spot in that community and be able to provide a health community hangout as well as local jobs for the areas under-resourced residents.

  • For the first 13 years, the area was too dangerous to do deliveries.

  • The Lawndale location recently celebrated their 20 year anniversary, with the last three years being profitable, after more than a million dollar investment.

  • When Marc opened the store, he committed to invest any and all profits back into the community. Since profitability occurred three years ago, Marc has kept that promise.

  • The spirit of the Lawndale location has energized his business over the years

Marc’s Style and Background

  • Marc is a self-proclaimed ready-fire-aim guy and has surrounded himself with people much better than him at planning

  • Marc came to follow Jesus in college in Indiana through Crusade, and the leader of Crusade at his campus named Tom Burnett.

  • When Marc was asked, “How would you describe your leadership?” he respectfully passed on the question.

  • One of his favorite leadership quotes is from General Colin Powell. He said, “I have never had to tell anyone ‘that’s an order’.” Marc loves that and says that you should be able to lead without having to remind people that you are the leader. They should already know and already respect you if you are doing it right.

  • When you go from one location to two, you will

    • Make less money – you will need to get to five stores before your margin improves again

    • Need to transition your leadership skills as an executive from a generalist to a specialist – an expert at developing and growing people.

  • Marc would rather tap investors than have to borrow money. If he has to borrow money, he likes to limit it to real estate purchases.

Future Plans

  • Marc plans on opening three new restaurants in 2014. The new stores, couples with the usual turnover, will mean Lou Malnatis needs to hire about 900 new people in 2014.

Jon Stewart and the Daily Show Situation

  • Marc Malnati has been in the news lately regarding an ongoing feud between Chicago-style pizza and New York style pizza

  • Back in November 2013, Jon Stewart went off on deep dish pizza during his show. He said some nasty things that included some inappropriate language

    • “Let me explain something, deep-dish pizza is not only not better than New York pizza. It’s not pizza,” Stewart explained. “It’s a **blanking** casserole!”

    • Stewart went on to liken Chicago-style pizza to “tomato soup in a bread bowl,” “an above-ground marinara swimming pool for rats” and, most damningly, “**blank** with a corpse made of sandpaper.”

  • Of course, Marc could not take these accusations lying down. He made a video response and posted it on youtube. The video went viral. You can see it here: Marc Malnati Response to Jon Stewart

  • After the video went viral, Marc was invited to have a discussion with Jon Stewart live during one of his shows. Marc accepted and they buried the hatchet as it were.

  • Marc had never seen the show, but was grateful for the free advertising he got his business given the more than two million viewers of The Daily Show!

My Parting Thoughts

  • Thanks for reading through my summary. I hope it has inspired you.

  • The closing of the meeting, since it was a Christian meeting, discussed a passage from the Bible – Matthew Chapter 5  – about being salt, light, letting your good deeds shine. We were encouraged to carry our salt and light with us and think through the good we can do wherever God has us in our daily lives, including our workplace. Sounds like he is saying we need to express our masterpiece in the “ordinary” living of our lives! Sounds good to me!

Filed Under: Book/Speaker/Conference, Character, Main, Social Enterprise

What Henry Ford Really Thinks of You – Full Article

October 25, 2013 by Bob Clinkert Leave a Comment

 

The Man, The Legacy

Make no mistake about it, Henry Ford has been one of the greatest, if not the greatest influencers of our society for 100 years or more. His business savvy and creative genius have given the US, and the world many marvelous inventions, paradigms and nuggets of wisdom.

Most notably, Henry Ford perfected the factory and the assembly line inside of it, which together formed the primary means of production in the industrial economy. While the assembly line and factory did much to advance the nation as a whole, and significantly line the pockets of a few, it has also done a great deal of damage to “the masses.”

 FordAssemblylineSmall

Means of Production

Henry Ford’s factory/assembly line production model dictates which roles, responsibilities and skills are important, and which are not. Overall, I believe what this model implies about the value of “average” people, ultimately resulted in a much greater negative influence in our society than it has for good; and, perhaps has precipitated some of the deep rooted economic and societal issues we are struggling with today in this nation and around the world.

It was Seth Godin who articulated this phenomenon and enlightened me to the serious ramifications of the  the industrial revolution model, especially as we begin to move into a post-industrial economy. Seth explains that the Henry Ford factory production model, stresses compliance, uniformity, falling in line, and clear-cut, simplistic delineation of roles and responsibility.

There are assembly-line workers, assembly-line supervisors, factor managers and factory owners. Owners, and to a lesser extent managers, hold all of the cards and are responsible for all of the innovation and creative thinking. Innovative and creative thinking at the assembly-line level is not only discouraged, but in most cases forbidden. The assembly-line worker and even the direct supervisor are thought of as little more than trained monkeys.

 

Give me Monkeys, Please

Henry Ford is quoted as saying, “Why is it every time I ask for a pair of hands, they come with a brain attached?” In Henry Ford’s system, people are only as valuable as the simple, repetitive task that they can perform. They are interchangeable, nameless and faceless. Henry Ford has no use for uniquely created masterpieces made in the image of God; what he needs are robots without brains, without personalities, feelings, dreams and desires.

 

I have worked for several large tech companies at various levels of management. One of the primary objectives of the executive management was to eliminate the high-paid coding experts through a combination of rigorous processes that eliminate the need for high competence, and outsourcing / offshoring which allows leverage of under-resourced individuals to lower salaries.

The message from the top at every company I worked was very similar, “I want to be able to put monkeys in the chairs and have them cranking out code that works!” That is a great illustration of the value system of the industrial economy. Creativity, leadership, excellence, high pay and leverage only belongs at the very top of the executive food chain. The goal for every level beneath the executive level is – monkeys. Inexpensive robots – mindless automatons that can and should be replaced with the lowest priced alternatives on an ongoing basis.

 

Societal Impact

That is the value system that the industrial economy is based on, and the foundation that our modern society is built on. Of the industrial economy, Seth says, “We invented public schools… jobs … suburbs—so many of the things that are part of our lives because we wanted and needed to support the industrial economy…. It was a very seductive bargain: if you gave up certain elements of self-determination and elements of your dreams—in return, the industrial economy would take good care of you.”

That’s right. Everything for the last 120+ years has been designed around the industrial economy – factory/assembly-line production model. Daycares, grade schools, secondary schools, colleges, job training programs, management and HR practices, churches – most everything. The system sees most of us, our kids, friends, relatives and neighbors as tools/cogs the elite use to make more money.

 

Are we Ready for the Future?

Certainly devaluing most of society and relegating them to a mindless, innovation and creativity free existence is a bad thing, but we have another, more pressing issue with running our organizations and societies on industrial economy principles – we are quickly moving into a post-industrial society, where uniqueness, individuality, entrepreneurship and specialty will rule the day.

The skills, abilities and motivations that prepare someone for a life-long journey in the industrial economy are completely inadequate for preparing someone to be successful in the post-industrial, connection-based economy that we have been moving into for the last several years. The good news is that it is not too late to opt out of the old system and jump into a new system. It will require a complete paradigm shift, and the onboarding of new systems and processes that value the individual over the task.

 

A Better Way

Seeing every individual as a unique, creative, critical, contributing component to any endeavor from business to education to outreach and ministry is the key to thriving in the new post-industrial, connection-based economy. We need to adopt new systems that formulate the tactics that align with this new overall strategy. What may these new strategies and tactics be? I’m glad you asked!

The research, development and effective onboarding of the most effective systems and processes that implement the strategies and tactics around post-industrial excellence have been the center of many of the efforts my partners and I have investing in over the last several years. We will be unpacking what we have learned through new initiatives over the next several weeks and months. Stay tuned!

 

Read this short story excerpt taken from Set Godin’s eBook titled, Stop Stealing Dreams Read Story

Filed Under: Book/Speaker/Conference, Character, Full Article

What Henry Ford Really Thinks of You – Quick Summary

October 25, 2013 by Bob Clinkert Leave a Comment

Means of Production –

Henry Ford perfected the factory and the assembly line inside of it, which together formed the primary means of production in the industrial economy. While the assembly line and factory did much to advance the nation as a whole, and significantly line the pockets of a few, it has done a great deal of damage to “the masses.”

Henry Ford’s factory/assembly line production model dictates which roles, responsibilities and skills are important, and which are not. Overall, I believe what this model implies about the value of “average” people,

ultimately resulted in a much greater negative influence in our society than it has for good; and, perhaps has precipitated some of the deep rooted economic and societal issues we are struggling with today in this nation and around the world.

 

Hands not Brains

Henry Ford is quoted as saying, “Why is it every time I ask for a pair of hands, they come with a brain attached?” In Henry Ford’s system, people are only as valuable as the simple, repetitive task that they can perform. They are interchangeable, nameless and faceless. The industrial economy has no use for uniquely created masterpieces made in the image of God; what he needs are robots without brains, without personalities, feelings, dreams and desires.

Certainly devaluing most of society and relegating them to a mindless, innovation- and creativity-free existence is a bad thing, but we have another, more pressing issue with running our organizations and societies on industrial economy principles – we are quickly moving into a post-industrial society, where uniqueness, individuality, entrepreneurship and specialty will rule the day.

 

Post-industrial Fallout

The skills, abilities and motivations that prepare someone for a life-long journey in the industrial economy are completely inadequate for preparing someone to be successful in the post-industrial, connection-based economy that we have been moving into for the last several years. The good news is that it is not too late to opt out of the old system and jump into a new system. It will require a complete paradigm shift, and the onboarding of new systems and processes that value the individual over the task.

 

Would you like to learn more? – Read this short story excerpt taken from Set Godin’s eBook titled, Stop Stealing Dreams Read Story
Read the full article about the importance of honestly assessing your leadership effectiveness. Full Article

Filed Under: Book/Speaker/Conference, Character, Main, Quick Summary

What Henry Ford Really Thinks of You – Story

October 25, 2013 by Bob Clinkert Leave a Comment

From Seth Godin’s –  Stop Stealing Dreams – http://www.sethgodin.com/sg/docs/stopstealingdreamsscreen.pdf

Schools for the Masses

The industrialized mass nature of school goes back to the very beginning, to the common school and the normal school and the idea of universal schooling. All of which were invented at precisely the same time we were perfecting mass production and interchangeable parts and then mass marketing.

Some quick background:

The common school (now called a public school) was a brand new concept, created shortly after the Civil War. “Common” because it was for everyone, for the kids of the farmer, the kids of the potter, and the kids of the local shopkeeper.  Horace Mann is generally regarded as the father of the institution, but he didn’t have to fight nearly as hard as you would imagine—because industrialists were on his side. The two biggest challenges of a newly industrial economy were finding enough compliant workers and finding enough eager customers. The common school solved both problems.

The normal school (now called a teacher’s college) was developed to indoctrinate teachers into the system of the common school, ensuring that there would be a coherent approach to the processing of students. If this sounds parallel to the notion of factories producing items in bulk, of interchangeable parts, of the notion of measurement and quality, it’s not an accident.

FordAssemblylineSmall

For the Lower Orders

In 1914, a professor in Kansas, named Frederick J. Kelly  invented the multiple-choice test. Yes, it’s less than a hundred years old.

There was an emergency on. World War I was ramping up, hundreds of thousands of new immigrants needed to be processed and educated, and factories were hungry for workers. The government had just made two years of high school mandatory, and we needed a temporary, high-efficiency way to sort students and quickly assign them to appropriate slots. In the words of Professor Kelly, “This is a test of lower order thinking for the lower orders.”

A few years later, as President of the University of Idaho, Kelly disowned the idea, pointing out that it was an appropriate method to test only a tiny portion of what is actually taught and should be abandoned. The industrialists and the mass educators revolted and he was fired.

The SAT, the single most important filtering device used to measure the effect of school on each individual, is based (almost without change) on Kelly’s lower order thinking test. Still. The reason is simple. Not because it works. No, we do it because it’s the easy and efficient way to keep the mass production of students moving forward.

 

More Fear, Less Passion

School’s industrial, scaled-up, measurable structure means that fear must be used to keep the masses in line. There’s no other way to get hundreds or thousands of kids to comply, to process that many bodies, en masse, without simultaneous coordination.

And the flip side of this fear and conformity must be that passion will be destroyed.  There’s no room for someone who wants to go faster, or someone who wants to do something else, or someone who cares about a particular issue. Move on. Write it in your notes; there will be a test later. A multiple-choice test.

Do we need more fear?

Less passion?

 

Read the full article about the importance of honestly assessing your leadership effectiveness. Full Article
Read the quick summary of the full article. Quick Summary

From Seth Godin’s –  Stop Stealing Dreams – http://www.sethgodin.com/sg/docs/stopstealingdreamsscreen.pdf

 

Filed Under: Book/Speaker/Conference, Character, Story

How am I Doing as a Leader? Full Article

October 21, 2013 by Bob Clinkert Leave a Comment

Return to Summary

 

Ask yourself, “How am I doing as a leader?” I don’t mean how well are you performing the functional factors of your role – related to business results, revenue, sales, market share, impact, influence, throughput, defects, the direction of the organization, handling of deals, etc.

emperorSmall

I am asking about your effectiveness at your primary leadership responsibilities around the skills of motivating, inspiring, engaging, handling interpersonal relationships, leading by example, managing other’s strengths and weaknesses, listening, clarifying, being approachable and having empathy. Factors that are related to your emotional intelligence quotient, or EQ.

After you come up with an initial answer to that question, the next question to ask yourself is, “How do I know my perception of my effectiveness as a leader is accurate?” Or at a minimum, “Do I know roughly how accurate my perception is, and how?”

Putting the two questions together you get, “How closely does my opinion of my leadership performance match the opinion of my direct reports, my peers, my organization at-large and my customers/bosses?”

Why is this important to ask? No matter how good you feel your leadership performance is or how great the organization seems to be doing, the question remains: “How much better might the organization be doing if I added the development of my own leadership ability to the business plan?” The other side of the coin is, “What are the opportunity costs of blind spots in my leadership performance?”

Every leader has blind spots. A study by the Consortium for Research on Emotional Intelligence illustrates the extent of these blind spots. According to their research, first, mid and senior level leaders had a significant pattern of rating themselves higher on their leadership performance than those around them rated them. In other words, these leaders thought they were doing better with emotional intelligence related skills than did the people they led, served, worked with, and reported to. What’s more, the higher a person’s rank, the greater this gap became.

The underlying issue beneath these results stems from the fact that self-awareness does NOT come from self, it comes from a relentless, rigorous, ongoing pursuit of open, honest and meaningful feedback from those you lead, serve, work with and report to.

The higher the leadership position you hold, the more likely you are to suffer from what is called CEO disease, or CEO syndrome. Daniel Goleman in his book Primal Leadership defines this disease as “an acute lack of feedback…Leaders have more trouble than anybody else when it comes to receiving candid feedback, particularly about how they’re doing as leaders…the paradox, of course, is that the higher a leader’s position in an organization, the more critically the leader needs that very feedback.”

Geoff Colvin has a very simple, yet powerful illustration of this phenomenon in his book, Talent is Overrated” . Imagine a professional bowler, trying to improve his game by practicing more. During his practices, he decides to put a curtain in front of the foul line from the ceiling to about knee-height. He puts in ear plugs that block out all sounds, including the sound of the ball hitting the pins, and going into the gutter. He then proceeds to practice bowling. Colvin goes on to say that two things are going to happen as a result of eliminating feedback from his practice sessions, the first of which is obvious, the second of which, not so much.  First, the bowler is not going to get better at bowling, he is going to get worse. The second came as a surprise to me. The bowler, will stop caring about getting better.

Is it possible that this systemic, lack of feedback at the leadership level is degrading our skills as leaders? Is this lack of feedback causing us to become numb, and even blind to the importance and desire to obtain open, candid and regular feedback from those we influence? I have found in my own leadership, and in my experience with other leaders, this gap between self-perception of one’s leadership performance and the perception of other’s, is the single largest influencer of the extent of anyone’s success as a leader.

A study of 39,000 leaders by PDI Ninth House confirms this conclusion. They demonstrated a significant correlation between this perception gap, and their performance as leaders. Those who were identified as out of touch with this gap, were 629% more likely to perform below the level of expected achievement. To say it again, that is, six hundred and twenty-nine percent. I would say that is a pretty strong correlation.

It is not difficult to conclude, that closing this perception gap, is one of the most important, if not the most important activity that a leader can engage in. I have spent the better part of the last decade investigating the possibility of rigorous, well-defined systems and frameworks that could be strategically, and tactically engaged to close the gap between self-perception of leadership performance and other’s perception. In my research, I discovered a program that is centered around the development of what is called Personal Leadership Effectiveness on an individual basis, and a Personal Leadership Effectiveness Culture at an organizational level.

Executing this program on an ongoing basis will not only assist you in closing the gap, but will also result in the overall improvement of several other significant factors to achieving high leadership performance. I am excited to share more about this program in upcoming articles and posts around this topic!

 

Read a short, real-life story about a leadership team who decided to bravely go after the blindspots in their leadership effectiveness. Read Story

 

 

Filed Under: Book/Speaker/Conference, Character, Full Article

How am I Doing as a Leader? Quick Summary

October 21, 2013 by Bob Clinkert Leave a Comment

“How am I doing as a leader?” and “How would I know?” can be combined into one similar question – “How closely does my opinion of my leadership performance match the opinion of my direct reports, my peers, my organization at-large and my customers/bosses?”

emperorSmall

Why is this important to ask? No matter how good you feel your leadership performance is or how great the organization seems to be doing, the question remains: “How much better might the organization be doing if I added the development of my own leadership ability to the business plan?” The other side of the coin is, “What are the opportunity costs of blind spots in my leadership performance?”

Every leader has blind spots. A study by the Consortium for Research on Emotional Intelligence illustrates the extent of these blind spots. According to their research, first, mid and senior level leaders had a significant pattern of rating themselves higher on their leadership performance than those around them rated them. In other words, these leaders thought they were doing better with emotional intelligence related skills than did the people they led, served, worked with, and reported to. What’s more, the higher a person’s rank, the greater this gap became.

The higher the leadership position you hold, the more likely you are to suffer from what is called CEO disease, or CEO syndrome. Daniel Goleman in his book Primal Leadership defines this disease as “an acute lack of feedback…Leaders have more trouble than anybody else when it comes to receiving candid feedback, particularly about how they’re doing as leaders…the paradox, of course, is that the higher a leader’s position in an organization, the more critically the leader needs that very feedback.”

Would you like to learn more? – Read this short, real-life story about a leadership team who decided to bravely go after the blind-spots in their leadership effectiveness. Read Story
Read the full article about the importance of honestly assessing your leadership effectiveness. Full Article

Filed Under: Book/Speaker/Conference, Character, Main, Quick Summary

Looking beneath the surface

January 22, 2013 by Bob Clinkert Leave a Comment

I was reading in Lk 21:1-4 this morning about the “widow’s mite.” Jesus was pushing his disciples to observe their surroundings in a much deeper, more meaningful, and more time-consuming way. On the surface, to the “casual observer”, it would appear that the richer people were giving tons of money and the widow gave almost nothing. Beneath the surface however, was reality. Reality was not visible on the surface. You had to dig down deeper to get a reality. Being a casual observer wasn’t good enough. You needed to be a “discerning observer” – a disciplined, thoughtful, caring, and wise observer to see through the fake and get to the reality of the situation. Of any situation.

We are living in a “face-value” world. We really don’t have the time or the desire to dig deep and seek reality. 140 character texts, Facebook posts, 10 second advertising blurbs. The problem is, everything starts looking the same. How can you discern a good company? All the websites, vision and mission statements all sound the same. All of them are love quality, love the customer, love their employees, love the environment. All resumes out there look the same. Amazing depth of experience, that oddly seems to fit the current job posting to the tee.

Facebook is a vehicle to promote the story of your life that you would want to be told, rather than the real story. How many people feel bad about the realities of their own life, family and circumstances when compared against the Facebook highlight reel of the life everyone else wishes they lived?

I was talking to someone recently about how much they hated church. The primary reason was their family would get dressed up and go to church every Sunday as a little kid, and everyone thought they were the best family. Behind the scenes, at home, there was physical and sexual abuse that was unchecked and terribly destructive. When we cater to the false realities, people lives can be damaged.

Even at a youth retreat like Blast. How do we look at the troubled youth? The youth that are trying to be hard, and difficult, belligerent, rebellious. Who want us to know they are not going to participate and don’t care about anything? Does it stop there? Should we wish for the difficult kids to be gone, or should we dig in, and try to get to the reality of the individual situations?

Frankly, I am so busy, distracted and exhausted that it is very easy for me to be a casual observer, and invest where I will get the best ROI, at least for the sake of appearances. Have I created even the margin in my life (spiritually, emotionally, physically) that is necessary to be a discerning observer in every hand-crafted-by-God opportunity for influence that I get on a daily basis?

Filed Under: Character, Main, Spiritual

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The 411 on Me

Ridiculously, happily married 31 years to Vicky, seven kids, three grandkids (so far). Comfortable in the gray. Stumbling after Jesus. Trying to make small investments to Unleash the Masterpiece in myself and others.

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