Episode #21: Tasty Catering's Cultural Revolution and Entrepreneurial Spirit with Tom Walter

In this episode of The Freedom Experience® Podcast, I sit down with Tom Walter, Founder, CEO, and Chief Culture Officer at Tasty Catering. Tom is a true serial entrepreneur, having grown Tasty Catering from its humble beginnings as a Chicago hot dog stand into one of the top four catering companies in Chicago, with group revenues surpassing $85 million.

Tom's story is one of transformation, driven by a deep belief in the power of relationships, culture, and people. In this conversation, we dive into the cultural revolution that took place at Tasty Catering in 2005, when two young employees challenged Tom’s leadership style. Their call for change was the catalyst for a complete turnaround, resulting in a more people-centered, values-driven company that continues to thrive.

Tom shares how hitting rock bottom, both personally and professionally, forced him to rethink how he led the business. With a renewed focus on fostering an entrepreneurial spirit within the team, Tasty Catering went from $2-3 million in revenue to $85 million today.

The driving force?

Tom's emphasis on understanding people’s skills, creating a values-based culture, and removing workplace "disruptors" that prevent employees from performing at their best.

One of the standout concepts we discuss is the idea of "entangled employees"—people who are deeply woven into the fabric of the company and who think and act like owners. Tom shares how empowering his team to take responsibility for their own areas of work and decision-making has led to innovation and incredible growth, especially during challenging times like COVID-19.

Key Takeaways:

• The Power of Culture: Building a company culture based on core values can transform both the business and the people within it. Tom’s 2005 cultural revolution was the turning point for Tasty Catering.
• Discretionary Effort: The average employee only gives 4% of their 60,000 daily thoughts to their employer. By removing disruptors and fostering a positive, values-driven workplace, Tom has helped his employees unlock their full potential.
• Circle of Discipline: Tom shares how freedom within a framework allows employees to take ownership of their roles, empowering them to innovate and drive the business forward.
• Entangled Employees: Beyond engagement, entangled employees are those who care deeply about the company's success and contribute extra discretionary effort. During COVID-19, Tom felt like he had 60 CEOs in the room, all working together to find solutions.

Resources:

• Connect with Tom Walter on LinkedIn
• Explore Tasty Catering and learn about its unique culture
• Read more about Tom's leadership philosophy in It's My Company Too!

This episode is a must-listen for any entrepreneur or business leader looking to transform their company culture and foster an environment where employees thrive and contribute at their highest potential.

Books:

1. "Good to Great" by Jim Collins – This book is central to the cultural change that took place at Tasty Catering, with the team using its principles to shape core values and drive growth.
2. "The 8 Steps of Change" by John Kotter – Though Tom initially didn’t know about Kotter’s framework, the change process at Tasty Catering followed Kotter's 8-step model of transformation.
3. "It's My Company Too!" – Co-authored by Tom Walter, this book explores what makes small companies great, with a focus on employee engagement and culture.
4. "Creating a Culture of Accountability" (Gravitas Impact Monograph) – Though not mentioned directly, this is related to the principles Tom discussed about accountability and leadership.
5. "The Great Game of Business" by Jack Stack – Tasty Catering uses the financial transparency and open-book management principles from this book to involve all employees in the company’s success.
6. "The Big Hairy Audacious Goal (BHAG)" from Good to Great – This concept was part of the culture-building at Tasty Catering, shaping its long-term vision.

Thought Leaders:

1. Jim Collins – Author of Good to Great, Collins’ work on core values and the BHAG (Big Hairy Audacious Goal) concept significantly influenced the cultural shift at Tasty Catering.
2. John Kotter – His 8-step process for leading change was mirrored in Tasty Catering's transformation, even though Tom wasn’t initially aware of it.
3. Edgar Schein – A renowned thought leader in organizational culture, Schein’s "pyramid model for culture" deeply influenced how Tasty Catering embedded values into the company.
4. Immanuel Kant – Tom references Kant’s philosophy of freedom within discipline, which shaped Tasty Catering’s "Circle of Discipline" approach to employee empowerment.
5. Ari Weinzweig – Co-founder of Zingerman's Deli and a fellow Small Giants leader, Tom mentions that Weinzweig personally teaches his company's culture courses, inspiring Tom’s approach at Tasty Catering.
6. Bo Burlingham – Author of Small Giants, Bo’s work on great companies that prioritize values over size also influences Tom’s business approach.
7. Sue Funkhouser – An organizational development specialist who spoke at a Small Giants gathering, Sue provided insights into the impact of culture on discretionary effort and employee engagement.

These books and thought leaders play a significant role in shaping Tom Walter's leadership philosophy and the culture at Tasty Catering.