Reset Your Thinking Podcast

Book: Small Giants

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This briefing document summarizes the key themes and important ideas presented in the provided excerpts from Bo Burlingham's "Small Giants." The central argument revolves around the conscious choice some entrepreneurs make to prioritize being great over being big. These "small giants" deliberately limit their growth to maintain a strong sense of purpose, deeper connections with stakeholders (employees, customers, community, suppliers), and a unique company culture often referred to as "mojo." The excerpts explore the motivations behind this choice, the challenges these companies face (particularly the pressure to grow), the strategies they employ to remain successful while staying true to their values, and the eventual considerations around succession and the lasting impact of these organizations.

Main Themes and Important Ideas:

1. The Deliberate Choice Not to Grow (Beyond a Certain Point):

  • The book highlights that growth is not an inevitable or universally desirable goal for all businesses. Entrepreneurs like Fritz Maytag of Anchor Brewing consciously chose to limit their company's size.
  • "I realized we were doing the IPO out of desperation—because we thought we had to grow,” Maytag recalled. “It occurred to me that you could have a small, prestigious, profitable business, and it would be all right. Like a restaurant. Just because it’s the best around doesn’t mean you have to franchise or even expand. You can stay as you are and have a business that’s profitable and rewarding and a source of great pride. So we made a decision not to grow... This was not going to be a giant company—not on my watch.”"
  • This decision is often driven by a desire to maintain control, preserve company culture, and focus on quality and relationships rather than sheer scale.
  • Entrepreneurs like Gary Erickson of Clif Bar experienced a moment of revelation when faced with acquisition, realizing that financial windfall wasn't the sole measure of success or fulfillment.

    • 2. "Mojo": The Intangible Essence of Great Small Companies:

    • The author explores the concept of "mojo," the special quality that sets these companies apart. It's not easily defined but is evident in their vibrant culture, engaged employees, loyal customers, and positive impact.
    • "To me mojo means, ‘You got that engine running baby and the sky is the limit!’ ” (Employee definition)
    • Mojo seems to stem from a combination of factors, including a clear sense of purpose beyond just profit, a commitment to excellence, strong values, and authentic relationships.

      • 3. Resistance to the Pressure to Grow:

      • Small giants face significant pressure to expand from various sources, including customers, employees, investors, and competitors.
      • "All successful businesses face enormous pressures to grow, and they come from everywhere—customers, employees, investors, suppliers, competitors—you name it."
      • Saying "no" to growth opportunities can be difficult, especially for entrepreneurs who may equate growth with success. Jay Goltz, for example, describes himself as a "recovering entreprenueraholic."
      • "For years, I’d been pushing, pushing, pushing, and suddenly I realized I could stop. I began to think, What would you do with all that money if you made it anyway? That was a revelation.”" (Jay Goltz)
      • Resisting this pressure requires discipline and a clear understanding of the company's core values and desired outcomes.

        • 4. Deep Connections with Stakeholders:

        • These companies prioritize building intimate and meaningful relationships with their employees, customers, suppliers, and the local community.
        • Community: Companies like Zingerman's Deli and Righteous Babe Records are deeply rooted in their communities, with their identities often intertwined with the local environment.
        • "Those restaurants are part of their community, and the community is part of what they are. They wouldn’t fit in in Las Vegas, given the transience of the people and the nature of the place. It’s the wrong context.”" (Danny Meyer on Union Square Hospitality Group's expansion decisions)
        • Customers: They focus on providing exceptional service and building loyalty, often going above and beyond to create memorable experiences. The story of the Zingerman's sandwich named after a loyal customer exemplifies this.
        • Employees: They foster a sense of belonging, empowerment, and often share the rewards of the company's success through profit-sharing or other means. Norm Brodsky's "knock-your-socks-off policy" and Fritz Maytag's approach to bonuses illustrate different ways of appreciating employees.
        • Suppliers: They build trust and loyalty, sometimes even prioritizing long-standing relationships over potentially more profitable ones, as seen with Righteous Babe's distributor choices.

          • 5. The Importance of Values and Purpose:

          • Small giants are often driven by a strong sense of purpose that goes beyond just making money. This could be a passion for their craft (like Fritz Maytag's brewing philosophy), a commitment to quality, or a desire to make a positive impact.
          • "We have a theme,” Maytag said in the early days of the American craftbrewing renaissance... “It is that we make everything as simply as we can with as few shortcuts, adjuncts, and additives as possible, and in a pure, traditional manner."
          • This purpose informs their decision-making and helps to attract like-minded employees and customers. Joe Arnold's ethical dilemma at Reell Precision Manufacturing highlights the importance of aligning company projects with employee values.

            • 6. Financial Prudence and Sustainability:

            • While not focused solely on maximizing profit, small giants understand the importance of financial health for long-term sustainability. This includes protecting gross margins and maintaining a healthy balance sheet.
            • The struggles of Nick's Pizza & Pub illustrate the dangers of unchecked growth fueled by debt and the critical need for sound financial management.
            • They may prioritize long-term viability over short-term gains and be wary of taking on excessive debt or diluting ownership through outside investors. Fritz Maytag's analysis of the capital required for rapid growth highlights this concern.

              • 7. Leadership and Culture:

              • The founders and leaders of small giants play a crucial role in shaping the company's culture and values. They often exhibit passion, integrity, and a genuine interest in their people.
              • Carl Schmitt of University National Bank & Trust (UNBT) created a unique and successful culture by prioritizing employee empowerment and exceptional customer service.
              • "What will kill this company first is a bunch of people running around with their noses stuck in rule books and manuals,” he said." (Carl Schmitt)
              • A strong culture helps to attract and retain talent, fosters innovation, and contributes significantly to the company's "mojo."

                • 8. Succession Planning and Legacy:

                • The excerpts touch upon the challenges of succession for small giants, particularly when the company's identity is closely tied to its founder.
                • Fritz Maytag's considerations about selling Anchor Brewing and Selima Stavola's disinterest in turning Selima Inc. into a transferable business illustrate these challenges.
                • The sale of University National Bank & Trust (UNBT) highlights the potential loss of unique culture and values when a small giant is absorbed by a larger corporation.

                  • Conclusion:

                  The excerpts from "Small Giants" offer a compelling perspective on an alternative path to business success – one that prioritizes depth, connection, and enduring values over relentless growth. These companies, by consciously choosing to remain a certain size, cultivate unique cultures, build strong relationships, and often achieve remarkable levels of success and impact within their chosen spheres. The book suggests that true "mojo" arises from this intentionality and the passionate pursuit of excellence, making these "small giants" models of a different kind of business leadership.

                  RYT Podcast is a passion product of Tyler Smith, an EOS Implementer (more at IssueSolving.com). All Podcasts are derivative works created by AI from publicly available sources. Copyright 2025 All Rights Reserved.
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