Small Changes, Inc.

Ethics and Relationships: All the Rest is Commentary

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Author

Arthur Lewy

Arthur Lewy

School

Case Western Reserve University - Weatherhead School of Management

Case Western Reserve University - Weatherhead School of Management

Professor

Ron Fry

Ron Fry

Global Goals

4. Quality Education 8. Decent Work and Economic Growth 12. Responsible Consumption and Production 16. Peace, Justice and Strong Institutions

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Summary

  • Distribution of alternative print media and calendars
  • A business organized around social ethics and constructive reciprocal relationships with customers
  • Community partnerships with schools and women's shelters.

Innovation

“We decided to choose the ‘path of relationships’ with our customers.” Small Changes was designed as an alternative, in terms of the products offered and how the products are offered, to faceless large print media distributorships. David and Shari, owners of Small Changes, described a typical business model for print media distributors, where available offerings are chosen in advance with no input from retail outlets for products. Oftentimes, large amounts of media are shipped and there is limited support, for businesses selling the media, to manage the volume or returns of unsold products. “We emphasized service and human contact.” Shari continued, “We wanted a business based on considering the needs of other small businesses. We wanted reciprocity, not decisions made from the top down.” Small Changes gives their customers (usually natural food markets and bookstores) the media they want, when they want it. Part of the Small Changes business process model is to be prompt. This is especially important for small businesses where cash flow is a critical issue. Prompt service has resulted in being able to learn from the stores about what is wanted from stores who do business with Small Changes. The stores, in turn, learn from their customers about types of printed media that are desired. There is an emphasis on reciprocal “hands on” relationships between Small Changes and the businesses that sell Small Changes media products. Owners Shari and David explained, ““We are conscious of treating other businesses how we want to be treated. We use bookstores to look for new products. The stores in turn get feedback from their customers." Shari and David continued, "Local stores have also come to trust our judgement when we recommend new products to them.” This reciprocal process is also used in business dealings between Small Changes and the publishers of the products Small Changes sells. “We develop relationships with publishers. (These relationships) became the basis for our (now very successful) calendar business.”

Ethics and Relationships: All the Rest is Commentary

Inspiration

David said that Small Changes is “grounded in ethics.” After listening to these remarkable business owners, I would add that Small Changes is also grounded in life experience and family history. Shari’s interest in printed media distribution was nurtured by her parents. Her father worked for a large commercial magazine. Shari's grandfather worked for the Jewish Daily Forward, one of the oldest progressive Jewish publications in America. (www.forward.com) During her childhood, members of Shari’s family were involved in the social issues of their times. She shared a story of her grandfather’s efforts, in the time after WWII, to bring refugees to America from Europe. Shari combined family values with her interests in herbs and alternative healing arts, college degrees in art and psychology, work in art therapy on a psychiatric unit, and involvement in the natural foods movement and women’s health movement of the 1960s-1970s. In the context of these life experiences and values, Small Changes was born in 1976. This was a time of transition for Shari who was newly divorced and had young children to support.

After I explained the purpose of the interview and talked of the importance of inspiration in Appreciative Inquiry, David spoke about "grounding in ethics." As he spoke throughout our interview, it was obvious that this simple statement was a central organizing principle in his work at Small Changes, and indeed in all of his life. His father, who worked for the Federal government, advocated for people drawn in by the dragnet of the McCarthy era. Later, in the 1950s and 60s David’s father was involved in the American civil rights movement. David continued, “I learned at my parents’ knee about proper behavior and how people should be treated.” These values have motivated him in his work guiding Small Changes.

The integrated business model of Small Changes emerged from these core ethical principles and life experiences of the owners, Shari and David. They shared a wonderful story about the early days of the company. Unlike most enterprises, which stress profitability analyses and marketing surveys, the founding documents of Small Changes were ethical mission statements to “clarify the ground we are coming out of.”

Overall impact

The reciprocal interactive model of business that is a key part of the Small Changes innovation has resulted in the ability to seek out new opportunities for products. There is an emphasis on making products available that are unusual in the retail environment, while at the same time maintaining networks of community connections where buyers and sellers are known to each other.

There is an integrated series of relationships locally, and now nationally, organized around products intended to encourage the growth of Small Changes and its customers. This has grown from the personal histories of the owners in the context of life affirming values and ethics.

Small Changes is a now a wide distribution network for alternative print media, especially calendars and journals. The Small Changes network has expanded from the Seattle area to the entire Pacific Northwest. There are also national clients, including Whole Foods stores. Small Changes does a large business in distribution of specialty calendars, with an emphasis on supporting small and local artists and calendar publishers. Small Changes responds to unique customer needs in unique ways through distribution of journals and magazines that are not readily available in mainstream media. Shari pointed out that “consumers have relationships with certain magazines that are outlets for (their) important interests, magazines that are often not readily available, even in bookstores.” Conversely, as a purchaser of printed media to distribute for retail, Small Changes supports alternative publishers who may not otherwise be able to reach retail outlets and individual consumers.

Business benefit

This small company has been in business for 40 years. Currently there are over fifteen employees. Last year, revenues were several million dollars.

Social and environmental benefit

There are many social impacts of the Small Changes business model and innovations. Small Changes has won environmental awards for wise use of materials, reducing waste and involvement with the community. Shari and David spoke with pride of the donation of their journals to local school libraries and their calendars to social services organizations for clients who may be making new starts in life. They have established and maintained a life enhancing workplace. Psychologists have long known the importance of work with meaning and purpose. In contrast, work devoid of connection, relationships and opportunities for growth are associated with increased mental and physical illnesses. In talking with Shari and David their excitement and thoughtfulness about their employees and Small Changes as a workplace was palpable. They hire people who are share their excitement about what Small Changes does and how it does it. Work at Small Changes is designed to be meaningful and interesting, with the capacity to give input into the business. Employees are encouraged to rotate through all of the jobs at Small Changes. This includes opportunities for learning, flexibility (ways to balance work and personal life) and to integrate family into work. Humor at work is encouraged, as are flexible schedules.

I asked Shari and David about the future for Small Changes. “We want to be an alternative to Amazon.” This was not said in admiration for the retail giant. Instead they talked of wanting to find “constant improvements” in sustainability, local shopping and increasing employee input.

Interview

Shari Basom and Davd Spiekerman, Owners

Photo of interviewee

Business information

Small Changes, Inc.

Small Changes, Inc.

Seattle, WA, US
Business Website: https://www.smallchanges.com
Year Founded: 1977
Number of Employees: 11 to 50
Small Changes, Inc. is a wholesale magazine, calendar and gift distributor with specialty markets in natural food stores, news stands and specialty shops. Calendars are distributed nationwide.