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What have we learned?Level 5 leadershipFirst Who… Then WhatConfront the Brutal FactsHedgehog ConceptCulture of DisciplineTechnology Accelerators
Humility + Will = Level 5 LeaderLooks more like a brewmaster
than a corporate typeHad the will and passion to serve
Americans real beer◦Started brewery with only a handful
of people in 1984 and sold his beer in person bar-to-bar
Setting up Successors for SuccessJim Koch
◦Founder and brewmaster and CEO untill 2001
◦Currently Chairman and ClerkMartin Roper
◦CEO since 2001◦Started working in the brewery in
1994◦Helped increase revenues 20% in
2006
Mirror-WindowWon an award for Lifetime
Achievement◦Gave credit to others◦Koch emphasized the award
recognized the achievements of the entire craft (real) beer movement, not just one man alone
Unwavering ResolveEven in the face of economic
downturn, Boston beer company stayed ahead of the curve and turned a profit◦Instead of lowering costs, he stayed
true to what they do.....Real beer
First Who, Then WhatPeople are not your most important
asset, the RIGHT PEOPLE are.◦Boston Beer employed 350 people who
shared the common passion for bringing great beers to beer lovers everywhere
The RIGHT PEOPLE want to be apart of something great.◦Employees are passionate about beer and
enjoy coming to work everyday◦The RIGHT PEOPLE love what they do largely
because they love who they do it with.
The RIGHT PEOPLE transform personal ambition into ambition for the company.◦Hard-working, quality people are taught about the
company and its industry as well as its beer and the brewing process. Each employee is taught how to taste and appreciate beer.
The guidance for strategy lies in group discussions and shared insight from employees◦Boston Beer looks for quality, growth, respect for
others, and open-mindedness when looking for the RIGHT PEOPLE Believes in the value of the individual both inside and outside
the company Establishes that everyone has a valuable contribution to the
company
Sam Adams
What are Sam Adams brutal facts??◦Much smaller of a company than Inbev
and MillerCoors ◦Miller Brewing Company and Coors
Brewing Company are now MillerCoors
BUT Sam Adams is the largest amongst all the independent breweries
Independent Brewery-◦ A company that makes and sells beer,
especially one that has only one factory, or only a small number of factories, and that sells beers to any bar, restaurant etc.
The Small Luxury of Sam AdamsQuote 1
“Boston Beer has already raised prices around 5 percent this year, which still doesn't cover growing costs. And because Boston Beer is more dependent on restaurant sales than cheaper beers--30 to 40 percent of its sales are at bars and restaurants”
The Small Luxury of Sam AdamsQuote 2
Too big? If Boston Beer keeps expanding at current rates, the company's biggest problem may soon be not sales but image. A craft brewer is defined as one making fewer than 2 million barrels a year. Last year, Boston Beer produced 1.8 million. Since InBev's purchase of Anheuser-Busch earlier this year made Boston Beer the largest American-owned brewer, Koch has promoted the notion that Sam Adams is still very, very small. By the numbers, Boston Beer is relatively small, with less than a 1 percent share of the domestic market.
Hedgehog ConceptKiss- Keep it simple stupid. Be
good at one big thing.Three circles- what you can you
be the best at? What can you make money off of? What are you passionate about?
Boston beers economic denominator wasn’t selling the largest quantity but a higher profit margin on better tasting beer
You can’t produce passion, it builds over time. Sam Adams employees become infused in the beer culture leading to greater product development.
Boston Beer created a beer for those wanting flavor and quality
Sam Adams realized it was going to be the best at brewing affordable higher quality beers rather than trying to compete with advertising giants pitching various brands of cheaper beer
A Culture of DisciplineGood-to-Great Matrix of Creative
Discipline1. Build a culture around the idea
of freedom and responsibility2. Fill that culture with self
disciplined people3. Don’t confuse with tyranny4. Hold fast to Hedgehog concept
Technology Accelerators
Website◦ World of
Beer◦ Beer Styles◦ Brewery Tour◦ Beer
Encyclopedia◦ Food and
Beer
Inviting Design◦ Fun
appearance◦ Interactive ◦ Made for
browsing
E-Store
1) Wearable
• Clothing and Accessories
2) Barware
• Glassware and Essentials
3) Specialty
• Special Shirts, Standees, and Glasses
Conclusion Jim Koch
◦ A Level 5 Leader◦ Started brewery with only a handful of people in 1984 and sold his beer in person
bar-to-bar◦ Won an award for Lifetime Achievement
Gave credit to others First Who, Then What
◦ Boston Beer employed 350 people who shared the common passion for bringing great beers to beer lovers everywhere
A Culture of Discipline◦ Good-to-Great Matrix of Creative Discipline
Hedgehog Concept◦ Boston beers economic denominator wasn’t selling the largest quantity but a
higher profit margin on better tasting beer Technology Accelerators
◦ Website◦ Beer Encyclopedia◦ E-Store