Leadership: How to build a beautiful company
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Leadership: How to build a beautiful company
Editor's Notes
- Leadership article - Bill Witherspoon: How to build a beautiful company June 2010 Author of article: Leigh Buchanan Publication: Inc, Magazine
- Magazine provides Advice, tools & services helping business owners and CEOs start, run, and grow their business more successfully. Why Witherspoon? • winner of one of Inc, Magazine’s “Top Small company workplaces” • selected because they are successful in their industries and proudly trace that success back to their culture. • I also found it intriguing and inspiring how Bill turned his passion for art and painting into a profitable business. - in the early 70’s, he lived for months in a school bus parked in the Oregon dessert a 100 miles from the nearest town. He spent his days painting the sky and clouds • those paintings later were the basis for his now successful business – The Sky Factory
- About Witherspoon & The Sky Factory • From the 70’s on, Witherspoon alternated between painting and launching businesses. • first company was co-founded in 1982, called Westbridge Research Group • Developer of eco-friendly agricultural products As with any entrepreneur he had his high and low periods. • during a low period, attempted to barter his artistic services in exchange for braces for his children. • He offered to tear out the ceiling in the orthodontist’s office and replace it with painted tiles. • This exchange spawned the idea for The Sky Factory in 2002.
- The Sky Factory Based out of Fairfield, Iowa
- Designs and manufactures backlit images of sea and sky that are installed in ceilings and walls.
- Used in hospitals, hotels, restaurants, etc – I’ve specifically seen them while sitting in the dentist chair
- Sky Factory employs 35 people
- 2009 revenue: $3.9 million
- When Witherspoon began developing Sky Factory, he established he wanted his people to behave and think like entrepreneurs, not like robots.
- He wanted them to remain creative and curious. In order to sustain such an environment, he chose to give his people the opportunity to purchase discounted ownership in the company. 100% of his employees have participated
- In addition to company ownership, he built a work environment based on the 5 cultural principles;
- Share information - a.k.a. Open Book Management Secrets corrupt cultures, cause backstabbing and power plays, secrets can’t survive in an environment of total openness At Sky Factory, transparency is KEY, everything is out on the table, except HR issues and salaries – which was the decision of the group. Every Friday a 2 hour meeting is held – go over metrics, critical numbers and people are given the opportunity to raise questions or problems Everyone is also trained to be able to read and understand the financial side of things
- Give everyone equal footing No hierarchy – no managers or supervisors Facilitators are used to coordinate, facilitator roles rotate through the company, every week a different person also runs their general meeting. Company operates on the idea that people who SEE A JOB DO THE JOB because they don’t feel constrained by their perceived place in the company Also operates on the idea that great ideas come from everyone & a FLAT organization ensures that all ideas are heard and given equal consideration. Example: last year they had an abundance of cash and as a group discussed the best use of it. The idea of their newest, youngest employee, who is responsible for data entry and international shipping was selected. They decided to pay off the mortgage on their new factory.
- Make decisions as a group - a.k.a. CONSENSUS N o decisions made behind closed doors, everyone is a part of it and in the end everyone buys in believes that in a company where there are no levels, everyone knows everything and most people are on the same page or have the same agenda, it is possible – and they do make it work And if they can’t make it work, they don’t move forward – just let the issue “die” and maybe it will pop up again in future discussions. The way they make this work is by making sure people are able to support their objection with an alternative solution or reasoned point of view. “ You are always welcome to say no, but you cannot just say no.” Example: Witherspoon pitched the idea of establishing a Sky Factory in Europe for 15 mins, and still others did not like that. He ended the conversation by saying, “Clearly we don’t have consensus, so we’ll forget about it.”
- Serve each other – Their culture is built on two kinds of service … ONE – I do this for you and I expect a return TWO – selfless service – I do something for you without thought of a return Their workplace strives for selfless service – it’s a powerful, relationship builder and it’s rewarded – at the start of every Friday meeting, the leader for the week tells a story about someone in the company that helped spontaneously, without asking anything in return and presents them $25. In order to support the selfless service and ability to assist others, Sky Factory strongly values learning new skills so they can help others. Believe in the idealistic notion that everyone should not only know everything, but everyone should be able to do everything.
- Share the rewards - Reward based on performance – of the individual, of the group and of the business. Every month, 50% of the net profit is distributed to everyone, AS LONG AS their have been - no late shipments since the last bonus, - cash does not drop below 6 months’ operating expenses, - they have experienced positive cash flow for the previous 12 weeks.
- Definitely … while there was no reference to it in the article, it’s very apparent through his leadership & management style. It’s very easy to identify the currencies used. Information, equality, ownership (when it comes to major/minor decision making), support, and significant reward … IS EXCHANGED FOR … the employees to do/give their very best for benefit of themselves, others and the company. Their loyalty to the company is solid and strong because of the exchanges offered. Jack Stack’s Great Game of Business
- * Admire his courage to try a unique approach to managing/leading Ability to recognize the shortcomings of operating his business in such a way. - He’s aware its an “experiment” and an imperfect one at that. - The collaboration and lack of hierarchy creates inefficiencies, but he’s willing to accept those issues due to the greater INFLUENCE this approach has on his people. This approach works for him because he’s established TRUST. It is a powerful tool and empowers each & every employee The 5 waves of trust are definitely fulfilled. - self-trust, relationships, organizational, market place (brand), societal trust Resonated with me regarding my developing leadership philosophy: “Both painting and company building start with a blank canvas. In a painting you create beauty with the addition of each brush stroke. In a company you create it, with the addition of each talented engaged person and with each thoughtful act. “