Let's take an example on the power of culture from Nick Sarillo, owner of Nick’s Pizza and Pub. (I pulled this from the article “Lessons from a Blue-Collar Millionaire” written by Bo Burlingham). Back to Sarillo, here’s a restaurant business (2 stores) who boasts an employee turnover rate of 20% compared to the industry’s 200% per year. As if that wasn’t enough to convice you, Nick’s has a net operating profit margin of around 14% compared to the industry’s 6.6% per year.
Ok, so now I have you convinced about the value of company culture… Maybe… Please… What if I show you how Sarillo has put together a culture that is able to do $7 million a year between his two stores?
Sarillo started with a vision of developing a company using the “trust and track” system. Along with this he says “I wanted a place where everyone worked hard and cared a lot; where people enjoyed coming to work, felt good afterward, and weren't motivated to steal. If I couldn't have that kind of business, I didn't want to have a business."
Good start huh? I think so. (Remember the 20% TO rate) Sarillo’s business is based off this philosophy and focuses on giving back to the community. From ½ price Monday’s and Tuesday’s to the time when he picked up the tab for everyone in the restaurant one night. Cost him $20,000. Worth it? If your’re developing the type of culture Sarillo is going for then it is crucial. Along with this, Sarillo has multiple benefit events and charity organizations that he supports. Doesn’t seem to be anything more than your everyday business, but it is the commitment to this. Ever heard of employees giving their tips to help out the benefits? What makes it different is that it is each of the individuals voluntarily giving back. In fact check this out, Nick’s was given the Community Improvement Award two years in a row. (http://www.nickspizzapub.com/news/)
One of the greatest aspects of Sarillo’s culture is his casting and training of his employees. Interviews consist of a personality test, role-playing exercises, and questions such as “What are you doing to improve yourself physically, mentally, or spiritually?” Ever been asked that one before? When you look at your company you want to be able to apply this type of dedication to your hiring process, however that may look, to fit your particular culture. It may, and probably will, be completely different from Nick’s.
Once employees are hired they are then ushered through (involuntarily after basic 101 and 201) a set of training classes. Numbers are given to the classes and continual training is emphasized. Maybe Sarillo read my book… Doubt it. Anyways, 101 consists of a 2-day orientation that includes the company purpose, culture, and values, and then a 4-hour kitchen prep. I’ve never spent 4 hours in a kitchen! Graduates of 101 are sent to 201 and so on. Employees are then encouraged to take additional courses and learn different jobs within the restaurant. As they graduate, they get an increase in wages and a different colored hat!
The final point I want to take from Nick’s, is that culture doesn’t happen unless top management is on board. Sarillo can be found in the kitchen helping out on busy nights. He has built his two stores on a foundation of trust. One in which he even got called out by a team member for. Ever call out a CEO in your company? At Nick’s there is trust and understanding through all the employees and no one is exempt from that. This allows the employees to focus on their jobs and not worry about management hovering over them.
Now don’t get me wrong. This sounds easy, but Sarillo can attest to the fact that it wasn’t. He will admit that it almost got out of his control, but he was able to revamp the culture he was going after. Luckily, he found the right employees (186 in all) and people to get on board. Now, he plans on expanding and spreading his impact of improving the community.
I read this from: http://www.inc.com/magazine/20100201/lessons-from-a-blue-collar-millionaire.html
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