By Peter J. Thompson
Each week, the Financial Post will profile one winner of Waterstone Human Capital’s 2008 10 Most Admired Corporate Cultures program. This week, Sanam Islam spoke with Mark Pacinda, Boston Pizza International’s president, about how the company demonstrated excellence in the five areas used to evaluate companies nominated for the program.
Company: Boston Pizza International Inc.
CEO: Mike Cordoba
Number of employees: 27,825
System-wide sales 2007: $755-million
Vision and leadership In 1983, when Boston Pizza franchisees Jim Treliving and George Melville bought the company, their vision was to expand the western-based chain of 46 restaurants across the country. As the company evolved, its leaders introduced the Three Pillar Success Strategy, which emphasizes continually improving guest experience, franchise profitability and building the brand, to promote expansion. Mr. Pacinda says this strategy has been a huge success. “In any company, if you have a vision of growth, people get excited because it brings challenge and opportunity for them,” he says. “Over the past 10 years, we’ve grown quite dramatically, and I think that keeps people energized and believing in the company.”
Cultural alignment, measurement and sustainability Regular and open communication is important in aligning corporate culture and the Three Pillars Strategy at all levels, Mr. Pacinda says. “We make sure we’re constantly communicating and being very consistent with our message, our goals and our objectives.” The company’s leaders hold many meetings with franchisees and staff throughout the year, and meet with a franchisee advisory council twice a year. To keep franchises informed, the company prints a quarterly newsletter and runs an intranet system with the latest updates. In addition, it hosts leadership workshops and conferences, and provides performance reviews and in-store training materials to sustain and measure corporate culture.
Rewards, recognition and innovative business achievement One of the company’s largest rewards programs is the Boston Pizza Incentive Plan, which allows corporate employees to share in the company’s financial achievements based on meeting corporate targets. There are also recognition programs for mid-level and senior management. “We feel strongly that everyone should participate and everyone should be rewarded in company growth and success,” Mr. Pacinda says. For franchisees, Boston Pizza holds an annual awards gala, has awarded more than $500,000 through its All Stars program, and celebrates employee milestones in service to the company. The company has also awarded employees more than $100,000 in post-secondary education scholarships.
Corporate performance Ten years ago, Boston Pizza owned 112 restaurants, now it has 305 nationally. The company says it is Canada’s No. 1 casual dining chain. Mr. Pacinda contends corporate culture is probably one of the most important factors in the company’s performance. “We felt like our success was because we cared about our guests and we worked together as a team.” Sales have risen 350%, to $775-million in 2007 from $170-million in 1998. Mr. Pacinda says the numbers are fuelled by additional units, but also by their same-store sales growth, which has averaged 6.4% in the past 10 years.
Corporate social responsibility Since 1990, the company has raised more than $8.2-million for the Boston Pizza Foundation, for charities across Canada. At the franchise level, the company hosts fund-raising golf tournaments, barbecues and eauctions; it also runs national events such as the Valentines Day program, which raised a record $506,000 last year from sales of heart-shaped pizzas and paper hearts. This year, the foundation donated $25,000 to a summer camp in British Columbia for children with chronic illnesses or disabilities. “We get involved, our franchisees get involved, our staff gets involved. It’s part of our culture; it’s part of giving back to the communities we’re in,” Mr. Pacinda says.
