American Flatbread Fires up Employees

George Schenk’s passion is making work meaningful, sustainable, and personal. He learned about wood-fired cooking Sample Pagefrom his grandmother in Vermont and, years later, rekindled his love of it when he founded the American Flatbread Company. His company produces frozen wood-fired flatbread pizzas from allnatural, locally grown ingredients, handmade by 100 employees in Waitsfield and Middlebury, Vermont. On Mondays, Tuesdays, Wednesdays, and Thursdays, two shifts of employees stoke the bakeries’ wood-fired ovens to a temperature of 800°F and prepare the flatbreads. After the products are baked, frozen, and wrapped, they are shipped to grocery and specialty stores such as Whole Foods supermarkets. Both bakeries are transformed into casual pizza restaurants on Friday and Saturday nights, where diners sit in view of the gigantic ovens to enjoy salads and flatbreads. Schenk also has licensed American Flatbread’s brand and wood-fired cooking methods to bakeries and restaurants in New England and in Los Alamos, California. One-third of American Flatbread’s annual revenue comes from the licensing deals and restaurant receipts; the wholesale frozen pizza operation contributes the remaining twothirds. Schenk’s enthusiasm for wood-fired cooking is matched by his drive to build a business in which the work has longterm significance to both the employees and the community. Among American Flatbread’s goals are to “create a pleasant, fulfilling, sustainable, and secure workplace” and “to trust one another and practice respectful relationships with everyone involved in this work.” Another goal mentioned in the mission statement is to be grateful, respectful, and forgiving—and to encourage the same in others. In line with this goal, Schenk has worked hard to avoid what he calls “founder’s syndrome,” the notion that the founder can do no wrong. Because Schenk is quick to admit he’s not perfect, his managers and employees know they can speak up about their own mistakes and not lose the opportunity to try new things. Jennifer Moffroid, the company’s director of marketing, says Schenk has created an environment in which employees can do work in keeping with what they want for their lives. Making the work day fun is one of Schenk’s priorities, as is making the workplace an inviting place to be. Moffroid also notes that Schenk not only delegates, but he also “empowers employees and celebrates their work.” The company’s seven senior managers are involved in decision making, and every suggestion is evaluated on its merit, not its source. “We’re all in this together,” Schenk says. Since the beginning, American Flatbread has supported local food producers and given back to the community in a variety of ways. For example, the restaurants hold “benefit bakes” to raise money for causes such as public health clinics and habitat preservation. In turn, the community has come to the company’s aid on more than one occasion. When flood waters inundated American Flatbread’s bakery, people came from miles around to clean and rebuild the facility. Thanks to this outpouring of support, the bakery was able to reopen in only seven days. Without the help of the community, Schenk observes, the company might well have failed. Today, the Vermont bakeries turn out 10,000 flatbreads every week; the California bakery produces another 4,000 for distribution in western states. The company now has its own Facebook page with news and images, and Schenk also keeps its values in the spotlight by writing a dedication for each week’s menu. These dedications focus employees on what’s important and provide “food for thought” for restaurant customers. Sharing values, being “a good neighbor,” and building trusting, respectful relationships with stakeholders have enabled American Flatbread to keep employees happy and productive, minimize turnover, and strengthen financial performance.26 For more information about this company, go to www.americanflatbread.com.

Questions

1. Does George Schenk manage American Flatbread as a type A or a type Z firm? Support your answer.

2. Would you recommend that American Flatbread offer bakery and restaurant employees flextime arrangements? Why or why not?

3. How has George Schenk paved the way for empowerment at his company?