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Troubleshooting Innovation

S19E2: Culture as a Business Practice

Welcome to Season 19 of the Troubleshooting Innovation podcast. We’re talking with Kristen Boschetto, owner and GM of Boston Baking, to learn how generations of baking experience can lead a midsize bakery straight to the future. Sponsored by Tutor Intelligence.

In our second episode, Kristen shares how Boston Baking turns culture into a powerful, people-first business strategy.

Learn more about this season here, and tune into Troubleshooting Innovation on Apple or Spotify.

Joanie Spencer: In this episode, Kristin and I are talking about how culture is a business practice. Hi, Kristen, welcome back to episode two.

Kristen Boschetto: Hi Joanie. It’s great to be back.

Spencer: Okay, I am really looking forward to this conversation. Culture is a big part of your company and your go to market and your everyday practices. So, why? Why is culture important to Boston baking?

Boschetto: I’m glad you asked me that because it’s a huge part of who we are. So, we always say that our employees, which we call team members, are the heart of the organization. But our culture is our framework, and culture is so important. Our mission statement is to make everyday life more pleasurable. It isn’t rooted around baked goods. It isn’t rooted around profitability. It’s about making people feel good, at any capacity, with, hopefully, our products, with our service, with how we interact with people. But culture is such a huge part of who Boston Baking is. It is woven into every single aspect of the organization. So, it is very, very important. It’s something that is very passionate for my dad, so he brings that passion of culture into the organization. And it is just filtered all the way throughout.

Spencer: Okay, I once heard you say that it takes a long time to build culture. So how would you describe the culture of Boston baking today compared to what bakery culture was like, you know, two generations ago? And I’m thinking more like old-school manufacturing, or the days when your uncle gave you your first task of scrubbing the floor with a toothbrush. In general, how would you say there’s been an evolution of culture that that the company is living into?

Boschetto: So the business, I remember when I was a child, was very different from the business today. My great grandfather, my grandfather and my uncles, they all ran the organization how they would run it, which was fine, but it was very disciplinary. It was different. It was very authoritative, so not a lot of collaboration.

They’re a culture where there are values of, you know, quality, integrity and consistency. You know, that really was the focus. If you have quality products, you have consistent products, and you have integrity, your business will continue multi generations.

But what we have done over the years is we’ve taken it to that next level and that next step, to really attract the vendors that we want to work with, the partners that we want to partner with, you know, the team that we want to surround ourselves with, and that takes a long time to cultivate. It really does, because culture isn’t just a word. You can say words all of the time, but they have to have meaning. And how they have meaning is through discipline, through behavior, through repetitive behavior, through that consistency. So, we’ve kind of taken what my great grandfather, my grandparents, and then my uncle have started, and then we have just expanded on that and just made it into something greater. And I’m just super proud of the culture at Boston Baking, and I’m just so proud to be part of that evolution.

And we’re, we are not perfect by any means. You know, we do struggle from time to time, but we’re constantly looking for ways … How do we improve? We’re always reflecting on certain decisions that are made or certain discussions that we have had, and how can we do a little bit better? What we really try to instill here in Boston Baking is ‘practice the pause.’ So you know, if you are in a situation where it’s confrontational, practice a pause before you say something. And I think that’s so important to do because you don’t realize the impact that what you’re going to say could have on somebody else. But if you really take the time to listen, think of your thoughts, of what you want to say, then that message is going to come out so different. And it is going to be received different. And then therefore you’re going to get different results in the end. So, culture is just such a big part of who we are, how we make decisions, and our longevity, to be honest.

Spencer: And we’ll get into it later in this episode, but when you say longevity, retention is a really big thing right now. It’s really important.

I’ve noticed that you’ve used this word, and you mentioned it last week as well, and that’s partner. I’ve heard you say it in other conversations too, using that word, partner or partnership. I want to sort of unpack that and dig into, from your perspective, what happens when all relationships, whether it’s with a vendor, with a customer, if it’s with one of the teammates, or even the UPS driver, what happens when all relationships are viewed as partnerships?

Boschetto: It changes the whole trajectory of your organization. I mean, anyone can have customers, anyone can have vendors, anyone can have suppliers, but building that partnership just creates longevity and retention, as you mentioned, and it puts you in a different category. It differentiates you from your competitors. It’s so critical to have those key relationships with your customers, with your vendors, with your employees or team members. And just changing up that vernacular and your approach to them, it really changes the way that you do business and the way that you interact with people, and the outcome that you’re going to get. You know, there’s situations that we’re faced with right now with the supply chain, and if we have a vendor that will just say, ‘Oh, we’re not going to ship because of x, y, z, whatever the reason is.’ But if you have a partnership with your vendor, they’re going to go out of their way to be able to figure out, ‘How can I come up with a solution to help Boston Baking? We know the impact that it has on them because they’re supplying the food chain.’ So, really understanding. And those take years to develop because they understand our business so intimately. So, it has such a chain reaction on the entire organization and the flow of the business, that taking the time, really to develop those partnerships — to us — is critical for our success.

Spencer: So, when you’re choosing a vendor or even looking at an opportunity with a new customer, do you put that framework around it? Like, ‘Is this someone that we want to partner with?’

Boschetto: So, we have a filter system, and one of the very first filters that we use to qualify someone is culture. Do they fit with our mission? Do they fit with our values? Do they fit with our vision, you know, for future? Can they grow with us? If they check all of those boxes, then we move to the next step.

I mean, pricing is obviously critical. The market has kind of established pricing. So, if it doesn’t fit within that landscape, then unfortunately — either a customer or a vendor — it may not work at this, you know, particular time. But if a vendor is going to mistreat our buyer, then we don’t want to do business with them. If a customer is going to mistreat our order entry personnel, then that doesn’t fit with who we are. You know, why should they have to kind of put up with that type of behavior? That’s not who we are. So, it could be the best customer, but if they’re, you know, they just don’t have the same value set as we do, we would pass on that opportunity. You know, our team, as I mentioned, is the heart of the organization, it’s important to us so and we want to make sure that they are all treated with, you know, respect and kindness.

Spencer: I feel like it’s not an easy decision to say, ‘This isn’t the type of partnership that we want to have’ if it’s negatively impacting your workforce. It’s not always easy to put that at the forefront and say, ‘Is the business worth it, if it’s mistreating or not aligning with our values?’ Those are really hard decisions to make.

Boschetto: No. But if it’s not making their day more pleasurable, then we’re not living our own mission. So, if there isn’t that alignment, then we just, we will not do business with certain people.

Spencer: I want to talk about objectives. I heard that you guys work with a consultant every few years to develop new objectives. Is that true?

Boschetto: Yes, that is true. And they are excellent.

Spencer: So, would you say that the culture of Boston Baking drives that initiative, or is it the opposite? Does setting those objectives with a consultant help you refine your culture.

Boschetto: So, before we even set objectives or worked with consultants, I have to give credit to my father. He recognized that we did an amazing job of getting us to this point. But if we really want to grow and take the business to the next level, we need outside help.

So, we were really selective in who we worked with, and we call them our strategic partners. They helped us get in that mindset of, you know, ‘How do we think objectively? This is where we want the company to be.’ And they, they taught us the Rule of Three. You can’t do everything all at once, so let’s prioritize Rule of Three. So, we have three objectives, and all of our decision making, all of our tasks, all of our expectations for every single department is working towards meeting those objectives. So, they were integral in helping us create kind of that business plan in order to support the initiatives.

Spencer: And so you do this exercise with them every is it…

Boschetto: We try to do it every three years or so. They’ll do an assessment of where we are today, where we want to go, and then are we on track to meeting our objectives? And as we have started to complete some of these initiatives and goals, we then set more goals. So, then we’ll set new goals. So, we’re constantly challenging ourselves.

Spencer: Okay, here’s another thing about Boston Baking culture that I’ve heard a little bit about, and that is giving back. How does giving back feed the overall culture of the organization?

Boschetto: So, one of our initiatives or objectives is a BB Community. It’s a Boston Baking Community, and this is something that is near and dear to my dad’s heart. If he could do anything in the world, this is what he would do. He is so people-centric and people-focused. And ever since I was a child, I would call them ‘dad lectures.’ But as I have grown and matured, I realized he’s not necessarily lecturing, but he’s trying to instill his wisdom on people, and he’s trying to help, at some capacity, to improve lives.

Externally, we do partner with, you know, a few different organizations, and internally, we have hired a learning and development specialist, which not a lot of bakeries have. And why would you have that role and, you know, extend those resources? But it’s so important to developing the team members, both personally and professionally. So, she has put together different personal and professional modules to help get them to the next level. You know, just learning about finance, balancing a checkbook. If they want to work towards a financial goal, what are the steps needed to get there? If they want to work towards a professional goal, what are the steps needed to get there? So just getting in that mindset that you can’t take over, you know, a mountain all at once, but you can if you just put one foot in front of the other. It’s just a different way of, you know, approaching a situation. So, if they want to start as a line worker, but eventually they want to be a, you know, a team leader, even a baker, there’s a pathway for you, and we can help to get you there. So that’s really, really important to us, is not only, you know, internal give back, but also external as well, and helping out the community.

Spencer: Okay, so in turn, I want to focus on internally right now and then I do have some external questions, because there was one organization I’m super curious about.

But describe, for me, the difference that it makes in the lives of the workforce when they have this resource to not only figure out — have help with figuring out their professional development — but also a resource for learning life skills.

What is … that has to have an impact on their lives.

Boschetto: Oh, it does, immensely. I mean, some of our team members have been able to purchase a house, not only for themselves but then for their parents or their uncles or even their children. So that is just super rewarding in and of itself.

Having this kind of platform, it builds trust. They trust us. So, we have excellent team member retention. We have some team members that started as a temp 18 years ago and is now our director of operations. I mean, her story is just fascinating. How when she came over to this country, having absolutely nothing and worked for us as a temp, and she has just grown and developed into the director of operations for this organization. I’m just so proud of her, and we’ve been able to provide her with those resources. But she trusted us, and we trusted her. So that trust is mutual. It does work both ways. But you can just see when you walk on the floor the smiles on everyone’s faces, just the hugs. I mean, my father hugs everyone as he walks through the facility. And we have over 100 employees — team members — and every single one he gives a hug, or they have their own private handshake. He gets to know each person so intimately. It’s really amazing to watch that interaction.

Spencer: I have always  loved when I’m at a bakery and seeing a president or CEO walk through the plant floor and call people by name and talk to them or stop what they’re doing and introduce them to me and say, you know, ‘He or she’s been working here for 10 years, and they started doing this.’ It just always makes me feel so good to see that interaction and see somebody in top leadership know their employees personally. But I’ve never seen hugs on the operation floor, so I need to see that.

Boschetto: It’s something. It’s very intentional, and, yeah, it’s really wonderful to see. I’ve been in other facilities where the CEO will walk the floor, and it’s an intimidating experience. When my dad walks the floor, it is very authentic. It’s just seeing kind of that change in in behavior. I mean, he still has that authoritative type presence, but it’s respected. That really goes back to instilling these programs and establishing them, because it’s for them, it’s not for us. It’s for them. And they recognize that.

At first, you know, we didn’t have a great reception. I think it was foreign to them, you know. They didn’t really understand. But as people started to participate, because nothing, none of it is forced. It’s highly encouraged, but none of it is forced. You can participate, or you can opt not to, but we’re now getting, you know, 90 to 100% of the people that are participating, and that, to me, is amazing, just to watch it grow and evolve.

Spencer: And I could see where there might be a little bit of trepidation in the beginning, especially like in manufacturing jobs that are probably like, ‘You want me to do what? You want to do what for me? I just came here to clock in and work at the machine and clock out. What do you mean you want me to learn about professional development and how to balance my checkbook?’

I can see where that might be a little jarring for someone in that environment.

Spencer: I was thinking — and you said it — this has to really support retention in keeping your employees for the long term. But in the back of my mind, I feel like BB Community is something that’s even bigger than that. I think you named it for me when you said you do it for them. You don’t do it for you. And I think retention then becomes a byproduct of it.

Boschetto: Agreed, 100%. That’s our why. I mean, that really is our why. It is so fulfilling to see somebody develop in that way, and to walk on the floor and see smiles. I mean, as you mentioned, they’re on a production line. Some of them are doing monotonous work, you know, tedious work. And for somebody that could just be very unfulfilling, but for them, they feel so fulfilled because they know that they’re contributing to the food chain. And they understand what it is has purpose, because every single job in this facility has purpose. And to be able to let them know that that they are worth something and they have purpose, and to help with their development, whatever it is. What we are giving back to them, it means something. It really does. So, I’m grateful for this opportunity. I’m grateful that my dad has that, you know, sense to be able to want to enhance lives and that he is not just revenue-driven or profit-driven. I mean, without revenue and profit, we can’t, you know, fund these programs. It is important, but it’s not why we do this.

Spencer: And, you know, I think his own experience as a single dad probably gives him that empathy to know what it’s like to have to, fight for everything and work extra hard and fight for the things and put food on the table for your family when you’re doing it essentially on your own. You have the extended family to help, but I just feel like he’s got to be interacting with the teammates and kind of understanding where some of them are coming from.

Okay, I want to talk about, you know, he talked about, it’s really fulfilling, and there’s something else that I’ve heard about you guys that I feel like is really fulfilling. And I wanted to ask you, and that’s looking at your give backs externally and specifically with organizations like Community Servings. Am I correct that you all made a bunch of pies for Community Servings?

Boschetto: We did, and we do. So, I’ll just start by saying they are a wonderful nonprofit organization, and they are local to the Boston area. They serve families with food who have a terminal illness, so somebody who cannot produce a meal for their family. They take care of that so that burden, they don’t have to worry about that at all, so they know that their son or daughter will get, you know, a healthy breakfast, lunch, dinner and snack. They do certain fundraisers throughout the year, and one of their largest fundraiser is a pie sale. It’s just a basic pie sale. And from this pie sale, they are able to raise over a million dollars of revenue to help fund their organization. And we produce 99% of these pies. They do tap into local businesses that do help support, and they’ll provide a few pies, but the bulk of the pies comes here, and we produce fresh pies. So, in keeping with Community Servings and their finest, freshest local ingredients, so we do make sure that we’re aligned with them. So, our pecan to our apple pies are all made fresh here in one weekend.

We bring in the entire team, leadership as well, and we’re mixing pie dough, pressing pie dough, mixing filling, filling pies, baking, packaging. All thousands and thousands of these pies happen over a three-day period, and it is the help and support of our team members that are able to make this such a success. And we’ve been doing it now for almost seven years in supporting them. Everyone looks forward to this time of year. Everyone talks about it. The hype leading up to the weekend is so exciting. It’s so energizing. And you would think, you know, leading up to a holiday weekend that people would, ‘Oh, I don’t want to do this,’ but that’s quite the opposite. They’re just so energized. You know, and they feel good about themselves. It’s an amazing, amazing organization, and the fact that we have even a small part to contribute to it just makes us feel so good.

Spencer: Well, you know, I just a few weeks ago saw a documentary called PIEOWA, and it’s about pie culture in the state of Iowa, and the documentarian, she actually lives in the American Gothic House and has the pitchfork in front of her in front of her house, and people come in and take photos, and she’s an Iowan, and she just loves pie. And so, she made this documentary about the pie culture in Iowa, which is very big. And so just hearing about the work that you did with Community Servings just reiterates in my brain that there truly is something about service and care that’s intrinsically woven specifically into pie.

Knowing the culture of your company, I think you would get that same enthusiasm and participation. But I think that because you’re making pies and you’re doing it together as a team for this incredible cause and this important fundraiser, I just feel like it gives it a little extra that people just put have a little bit extra love. If you ever have a chance to find this documentary called PIEOWA, it’s amazing.

BOSCHETTO: There’s just a certain comfort around pie, right? It’s just so American, so nostalgic. It’s just kind of a part of who we are too, like, it’s not something that we just outwardly, you know, broadcast. But it’s just, I don’t know. It’s just part of who we are. We produce pies for Community Servings. You know? I just, I don’t think of it like that, but I should, I guess.

Spencer: From like your product lineup and manufacturing, you all make pie shells?

Boschetto: Correct! We don’t even make pies. So, we set up this entire production line just to support this one event. So it’s outside of the scope of what we do, for sure.

Spencer: Amazing. I love it so much.

I have one last thought to share with you on culture, to sort of tie this all together. I mentioned it a little bit, like those old-school bakers, they really can have a hard time with the idea of culture because the old-school way of thinking, especially like in food manufacturing, is that culture falls under soft skills. And soft skills ‘don’t have a place,’ really, in manufacturing. But what would you say, like, what’s your counter response to that? And what would you say is the business case for having a strong culture?

Boschetto: I think it has every part of being included in your business. It’s all I know as well.

So, I think if you don’t have culture, I think you’re a ‘me too,’ and then you’re just competing, really on price and volume. And how fun is that? I mean, and what does that do for morale? What does that do for employee retention? To me, it’s synonymous with business, is culture. So, I just, I don’t see a business world without it.

And everyone has their own iteration of culture. It doesn’t have to be exactly, you know, the Boston Baking way. Put your own spin on it. I think it is so critical to the success of any organization. You know, otherwise, you’re just another competitor. And which is fine, there is a place in the market for that, for sure.t’ It’s just not an organization that I would want to be part of.

Spencer: I think you really make a good point. Every organization can define what their culture is, so it doesn’t have to be soft. Without some sort of culture … like, every company should have some element of culture to it. Because without it, you’re right, it’s just robots. There’s no personality, there’s no humanity to it. And so, it doesn’t mean that it has to be like rainbows and butterflies. It doesn’t have to be soft. It just needs to exist.

Boschetto: Yes! And believe me, we’re very passionate in the conference room at times, so there’s lots of loud voices. We don’t always agree on everything, but it is that culture that allows us to agree with the decision, and that is what I think is important. And that’s what is important, to show the your team members and your leadership teams that you may not always agree on something, but you need to agree with the decision, and you need to buy in. And I think once you have that buy in, it just changes the whole trajectory of your organization. But by no means are we, you know, unicorns and butterflies at all times over here. We have our team members challenging us often, and I encourage that. I want that collaboration. It means that they care. It means that they’re thinking. They’re using a process. I don’t want it just to be a dictatorship that you know, whatever me or my dad says goes. Absolutely not. Challenge me. We’re very lucky in our team and who we surround ourselves with, and they are experts in their fields. And we would be remiss to not welcome their opinions and not take their leadership and their suggestions. So, we have our we have our struggles. We have our challenges. Absolutely.

Spencer: Well, this has been a really enlightening conversation. Kristen, I think you guys are doing an amazing job. And yeah, we all have our struggles, and it’s going to be hard. And I know about loud voices in the conference room. I’m often one of them. I get very passionate about having my voice heard.

Boschetto: We call it passion here.

Spencer: Yeah, exactly. It’s passion. Yeah, nobody’s perfect, but I do think that you all are doing great things for your culture, for your teammates, for the community, and for those relationships that you have with vendors and suppliers and anybody who’s walking through the door, even if they’re just delivering a package. I think that’s really cool, and I think it’s important, especially in the job market that we are in, anything that can result in employee retention, is worth exploring. Thank you so much for sharing your insight into the culture of Boston Baking this week, I’m going to say thank you for this conversation, and I look forward to next week when we talk about a midsize bakery with large scale product development. So, I’m excited for that one.

Boschetto: Oh, that’s exciting!

Spencer: Yes! Okay, thanks so much, Kristen.

Boschetto: Thanks, Joanie.

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