Leadership matters. It always has and always will. There was an insightful article recently about Nike’s CEO Mark Parker in USA Today telling how Parker has kept Nike growing during our Great Recession. Nike has not just grown; it’s blitzing its competition by playing offense and defense at the same time. This is nothing short of remarkable at a time when people are not anxious to spend $100 on a pair of sneakers. But Parker is smart enough to use the economic downturn as a chance to turn up the pace on investing in the future. Of course he’s done the obvious things like expanding in China, but he’s also done some wildly disruptive things that are crushing his slow-to-react competition.
- Parker is first a designer who knows great products are the foundation of growth and prosperity…so he has turned Nike’s formidable websites into consumer innovation studios that enable and encourage consumers to design their own shoes and apparel. Nike’s margin on this zero inventory direct-to-consumer mass-customization business model blows away any known success metrics traditional consumer businesses operate by. More importantly, it’s a volcano of consumer design input that informs their traditional business. “Let’s see what happens if our consumers design what they buy…would they pay top price for it?” Yes, they would. Simple.
- They are creating new standards of large-scale sustainability in product standards. Their design parameters require every shoe to meet their sustainable sourcing materials and manufacturing standards by 2011. This saves money, inspires their workforce and impresses consumers.
- They continue to humanize their products by endorsing champions and championing causes that matter. Using their athletes as ambassadors, they’ve helped the Lance Armstrong Foundation raise $350 million in pledges to fight cancer from governments and foundations around the world.
- They are moving into new markets so they can be the brand of the future. Smartly, instead of buying their way into action sports like surfing and snowboarding, they are earning credibility by supporting young new athletes instead of writing huge checks to established stars. This long term, relentless commitment is paying off with keeping Nike’s brands on the front end of consumer cool.
- Most importantly, Nike puts its wallet where its values are. They have always viewed sport as a powerful way to obliterate racial and gender prejudice. The Nike Foundation is committed to the Girl Effect, which is focused on helping 200,000,000 girls worldwide get access to education. For over a decade they have been grinding old shoes into new sports playing surfaces for low-income areas. Last year they sponsored the Homeless World Cup in Australia. And of course they have revolutionized cause marketing with their LiveStrong campaign.
All of this is very impressive, but the engine of all this success is inspired, courageous leadership. Leadership that’s not afraid to stop doing what’s wasteful, frivolous and irrelevant and start doing what the 21st century demands which means a full-blown commitment to sustainability, customer engaging design, and world changing social meaning. Yes, I have to say it…instead of just talking about it, Nike is going out and just doing it!
