Good to GreatTeam 3: Ryan, Gerald, Courtney, Scott, Brandon, Kara, William, Brett

What have we learned?Level 5 leadershipFirst Who… Then WhatConfront the Brutal FactsHedgehog ConceptCulture of DisciplineTechnology Accelerators

Jim KochA Level 5 Leader

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

Confront the Brutal facts(Yet never lose faith)

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

Beer Encyclopedia

Ingredients

Craft Beers

Measures

Brewing

Tasting

Styles

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