Nothing can feel quite as soul crushing at work as when we take initiative to try something new and we’re shot down with words: “That’s not how we do things here.”
It’s simply a fact that, in any business, there’s a persistent tension between a centralized, top-down approach and the desire for team autonomy. This balancing act is crucial: how can we maintain alignment with the company’s goals while empowering employees to adapt, innovate, and take initiative on the front lines?
Striking this balance is essential for success. We need employees to buy into the larger corporate direction, but not at the cost of stifling individual creativity.
Will Guidara, bestselling author, renowned restaurateur, and former owner of the world’s #1 restaurant, Eleven Madison Park, describes this dilemma as the battle between “restaurant smarts” and “corporate smarts.” While his lessons are rooted in the restaurant industry, they are universally applicable to any business environment.
What Does “Restaurant Smart” Mean?
“Restaurant smart” companies lead with trust, granting frontline workers autonomy and creative freedom. These companies cultivate nimble environments where employees can serve customers with ingenuity.
“Think about Zappos, the online shoe retailer,” says Will. “In their call center, the customer service agents are given the freedom to go above and beyond for their customers. On one occasion, when one of the phone representatives learned of a customer’s sick mother, they took it upon themselves to send flowers to the mother’s hospital room. Most companies would think that was a waste of time and money. Zappos looked at it as an investment.”
However, while this approach fosters innovation and customer-centric service, it can also pose challenges. Companies that rely too heavily on flexibility and creativity may struggle with profitability due to a lack of standardized processes and controls.
As Will says, “It’s very hard to scale a company if you’re only restaurant smart.” The very flexibility that drives innovation can also hinder consistency and efficiency—both critical for growth.
What About “Corporate Smarts?”
On the other hand, “corporate smart” companies prioritize systems, controls, and profitability, ensuring that every operation is streamlined and consistent. This approach, often driven by centralized decision-making, guarantees a uniform product and experience, regardless of location.
“McDonald’s is a corporate-smart company,” says Will. “Every time you walk into a McDonald’s, the product is exactly the same. You can expect consistency and efficiency, but it’s very rare that you leave a McDonald’s feeling anything but full.”
The strength of corporate smarts lies in scalability and profitability, but it often comes at the expense of creativity and customer satisfaction. Frontline workers may feel disempowered, with little autonomy to make decisions that could elevate the customer experience.
Striking the Right Balance
The key to success lies in merging the best aspects of both approaches. By fostering creativity within a framework of efficiency and control, businesses can enhance customer satisfaction while achieving sustainable growth and profitability. This balance also fosters a sense of passion and purpose among employees.
“The challenge is to figure out how your company can be both restaurant smart and corporate smart, how to embrace the tension between control and creativity, and find the balance between the two,” says Will.
One example is Pret a Manger, which empowers its frontline staff while maintaining corporate controls. Pret cashiers have the autonomy to give away free drinks or food to customers they feel deserve it, acknowledging that those on the front lines have the insight needed to make such decisions.
To achieve this balance in your business, consider the following steps:
- Empower Your Frontline Workers: Give employees the autonomy to make decisions that enhance the customer experience. Start small and build from there.
- Establish Clear Systems: While empowering your team, ensure that systems are in place to maintain efficiency and control. This could involve setting guidelines for decision-making or implementing feedback loops to monitor the impact of creative initiatives.
- Foster a Culture of Trust: Encourage open communication and trust within your organization. Make sure that creative ideas are welcomed and that employees feel supported in their roles.
As Will reminds us, “Even the smallest change can have a very significant result.” Start small, but start today—your business’s future depends on it.
For more, check out Will and Simon’s course, The Art of Creating Fiercely Loyal Customers.
