I've had the good fortune recently to meet some companies that are doing an extremely good job of practicing The Phoenix Principle.  Although no company story can be told well within the shortness of a blog, some of these stories are so powerful I want share some of the good things I'm seeing. Especially now, when it seems bad news is dominating.  That's not true everywhere – and it's worth profiling a few winners (and hoping they'll excuse the brevity of these descriptions.)

Recently I met with Tasty Catering in suburban Chicago.  Tasty is by far not the largest caterer in the U.S. (or even Chicago), nor the smallest.  Nor is it the oldest, nor youngest.  You could easily miss it as "just another company."  One of those nearly faceless businesses crowded into the business parks around America.  But this company is by no means normal, and as a result

• It's been named "Caterer of the Year" by top food magazines
• It's been The Best Company to Work For in Chicago 3 times
• It's been honored by Winning Workplaces and The Wall Street Journal as a top American business.
• There were a lot of awards, these are just the ones that come to top of mind. 

When Tasty Catering created its vision – it's BHAG (in Jim Collins venacular) – nowhere does it say "caterer".  Their ambition is to be the best.  At whatever the company does.  The 50-ish founder told me that his employees were insistent about this, because they did not think Tasty would just be a caterer.  There are too many possibilities, according to the internal teams.  The people at Tasty want to go wherever the market leads them.  Their ambition is to GROW.

Everyone in Tasty is challenged to scan the horizons for new business opportunities.  .  And create business plans.  The CEO encourages his people to work with college professors and get school credit – but if the plans are good Tasty funds them.  And the business ideas don't have to be in catering, or even food.  Whatever has the opportunity for growth.  So Tasty now has a finance company, a "green" gift business, a supplier to large-scale retailers of packaged food, and a trucking company.  Again, those are just the ones I remember.  And at least one of these was created by employees who are first-generation immigrants with little formal education – employees another company might deride as "kitchen workers" – but with a massive desire to grow the business.  At Tasty, everyone is considered capable of seeing a market opportunity that can create profitable revenue, and everyone is encouraged to bring those market-based ideas to the table.

Tasty obsesses about competition.  Everyone in the company has internet access.  And manager after manager told me stories about using the web to track competitors.  Press releases, articles, anything that's on the web – they keep track of what competitors are doing.  When they see competitors do something, they want to know why – and if it works.  Tasty uses competitors as much as test beds for ideas – what works and doesn't – while simultaneously tracking their activities in traditional areas.  They track customer reactions to competitive ideas, and use that to bring out their own ideas.  As a result, Tasty finds new customers, finds new products to sell and finds new markets to develop. 

The CEO told me that when he started he had a bunch of hot
dog/hamburger joints.  But it was an intern who told him he'd be
better off to sell those assets and change into catering.  This was an
incredible distruption, to change from a fast food operator to a
caterer, but with the growth of franchise fast food staring him in the face he made the
switch.  Now the CEO relishes the Disruptions his staff bring.  Wouldn't trucks make great rolling billboards – if painted for that purpose?  Time to change the trucks.  Wouldn't having a menu that's all healthy, and disposable products that are entirely eco-friendly, snare some accounts?  Why not try it?  If the kitchen isn't busy 24×7, couldn't we make packaged food for sale as retailer brands?  If we need financing for a new business line, can't we fund that from internal cash flow?  Why not start an internal finance company?  If restaurant and store operators want prepared food, why not start pursuing RFPs and see if we can win some retail business (even though it means we'd have to double our equipment overnight)?  Disruptions are so common at Tasty they don't even think aboout them as disruptions – they are the norm.

And as the last paragraph indicated, White Space is everywhere.  When an employee has an idea they can turn it into a business plan.  The people inside Tasty even help work on it.  Then the plan is vetted and reviewed.  If it looks good, Tasty will set up a separate company to implement the plan, and make the employee the CEO.  Now this person has the permission to go make it happen, and the money to do it.  There are goals, and report-backs.  And discussions about how to make the business grow.  And every project is visible for everyone in the company to see.  No "skunk works."  Everyone knows what's happening, and looking to see what works.  Everyone wants to learn and migrate toward a growing future so the business will succeed and they can succeed with it.

2009 started off with a sledge hammer for catering.  The recession caused companies to cancel events, big and small, and quit catering in food.  It would have been easy for Tasty to falter – because revenues went down for the very first time.  But instead, everyone met and put their heads into finding ways to get back on the growth track.  Resources were cut in the tradtiional business.  Belt tightening went around the board.  But resources were expended in new marketing – viral on-line campaigns for example – to find the customers who still have needs.  People put more energy into differentiation programs – like the non-plastic clear wrap and non-plastic disposable utensils – to make the business more appealing to those who still have events.  And new business opportunities – like the private label manufacturing – took on new urgency and more resources.  As a result, while many caterers have failed and others are in dire straits Tasty has returned to growth – and not just in catering.

Meanwhile, the employees at Tasty are some of the most gratified I've seen.  Here in this recession, they still are highly motivated and love their work.  Even though they could do other jobs, they stay.  They don't expect the CEO to find them work, or promise them a job, or guarantee their income.  But they do understand that if they keep growing, working at Tasty is great.  They tie their success to the success of the business – which they tie to identifying market opportunities and fulfilling them better than competitors.  They work at Tasty because they are connected to the market – and it is empowering.  It's not paternalism that keeps them satisfied (far from it, peer reviews assure paternalism is not allowed), it is seeing market results from the innovations they develop and implement.

If you have an event of any kind, go to the Tasty Catering web site and/or give them a call.  If you have a need for someone to supply you with muffins, cookies, baked goods or other foodstuffs private label – again, to the web site and/or give them a call.  This is one great company.  Given a little time, they just might give Sysco Foods (the country's largest supplier of food to restaurants) or another mega-company a run for their money.  This company is out to WIN – and all eyes are focused on the market, everyone pays attention to competition, Disruptions are the norm and new White Space is created every few months (regardless of the economy.)