Chobani, Leadership & The Cultural Future
Chobani CEO Hamdi Ulukaya’s surprise announcement that the 2000 full time employees of Chobani would be receiving a 10% stake in the company has entered the media bloodstream with force. Segments on NBC and other major outlets shined a light on this act of genuine leadership and real financial reward.
Chobani employees were given shares in the company based on seniority, a scale that would make some of the longest tenured employees instant millionaires. The shares were issued from Mr. Ulukaya’s stake in the business, essentially diluting his own share of the business.
Mr. Ulukaya explained his decision “I’ve built something I never thought would be such a success, but I cannot think of Chobani being built without all these people, Now they’ll be working to build the company even more and building their future at the same time”
The vision that Mr. Ulukaya has used to grow Chobani into a multi billion-dollar brand is on full display with this decision. In a time of historic inequality and culture of Corporate “shortcuts” Mr. Ulukaya has decided to buck that trend and tap into an emerging demand for greater equity.
Chobani knows that the future of work is dependent on compensating employees fairly. Measuring what is “fair” is not merely a function of dollar amount but it is an acknowledgment that the success of the company should be shared with those who helped make it possible. The quarter-by-quarter cycle has been broken, as Chobani has made a decision to take a long-term view when it comes to the future of work. They know if they are to maintain a highly motivated and productive workforce they must create a company that rewards “win-win’ scenarios. The collective future of Chobani is directly linked to the future of their workforce. Their relationship is not a predatory one but a symbiotic one very much in line with our Cultural Prime Directive. Chobani, by design, has embraced a decision to view the viability of their business over the long term. Mr. Ulukaya made both a brave decision and a love centered decision to reward those who built this business with him. Love in this context can be thought of as gratitude. Although one might be tempted to dismiss this they do so at their own peril.
Gratitude is actually in short supply so when we come across it we gravitate to it like bees to honey.
Chobani’s meteoric rise is a testament to executing their brand strategy in the face of difficult times and often countervailing opinions. Rather than rest on their laurels they are committing resources to their most valuable resource, their people and positioning themselves as a leader in an increasingly cultural economy.
No doubt, this is already paying dividends in media exposure and public good will. Brands rightly pay attention to work cultures and want to create a sense of investment and ownership in their employees. Chobani just made rhetoric real and followed through on the brand promise of an engaged workforce by delivering real value. The question for future leaders is will you get ahead of the curve on this type of trend before it is the rightly demanded norm. Ultimately love overcomes fear in profitability and in life.
The Deep Dive
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