The Nike Chronicles -- Part II: Corporate Culture

As we toured the buildings and grounds of Nike's campus, one could easily mistake it for that of a liberal arts college, nestled in a lush northwest small town.  The same stately venues, the same soothing tranquility.  Buildings carefully placed around large ponds, Japanese gardens, external signage kept to a minimum.  Environment always affects behavior, and Nike's campus layout obviously advocates and promotes a "collegial" approach to corporate life.

It would be naive to assume that the company doesn't have its fair share of internal political battles and the all too common individual agenda.  But I would also guess that in that relative pastoral environment, turf battles and the like don't have much of a shelf life.  I've never met Nike co-founder Phil Knight, but it seems obvious that minimizing the ugly stuff and promoting an atmosphere where staffers would be inclined to truly work together is what he had in mind. 

The factors that impact "corporate life" and therefore "corporate culture" are pretty universal and unavoidable.  Financial performance, competitive pressures, budget cuts, customer satisfaction, etc. are the issues that define the agenda in any publicly traded corporation.  The range of responses to these issues from company to company is breathtaking.  The "enlightened" firms typically take a proactive stance and encourage fresh thinking from everyone engaged in the enterprise.  And the results of that approach typically show up on the bottom line--dramatically.  Nike certainly belongs in that category.

Aside from pretty trees, and stately buildings, what else has Nike done to promote that kind of culture?  One thing that was clearly obvious was the sense of history and the heritage Nike's employees seem to have in spite of the company's amazingly short life of 40 years and counting.  Start with the fact that Nike is easily the biggest source of local commercial pride that Oregonians could possibly have--Portland's answer to Seattle's Starbucks if you will.  A work force that knows and feels that it was part of the early development of one of the world's great companies.  Call it a positive and progressive sense of pride that generates loyalty and general good feelings among the rank and file.

Along with its superior brand name and commitment to innovation, Nike's corporate culture should serve it well for years to come.

The Nike Chronicles -- Part One: Innovation

Spending a day recently at Nike's corporate campus in Beaverton, Oregon has me thinking about three distinct topics.  Innovation, corporate culture, and the future of advertising.  Yes, the trio overlaps a bit but each deserves its own perusal.

Innovation may be the most overused word in corporate America today.  Steve Jobs and Apple are the icons but Nike deserves its own spotlight here.  We need to remember that the company was co-founded by a track coach pouring polyurethane into his wife's waffle iron to produce a new sole for his runners.  A few hours spent at Nike's research lab confirmed that the same innovative flame is burning bright there. 

The common DNA thread that runs through Apple and Nike is the commitment to developing products that are concept- and design-driven as opposed to necessarily market-driven.  Innovation on steroids requires almost a blind faith that the consumer will be attracted to a great product once it actually exists.  "Classic" market research that tries to predict and define demand would pretty much be scoffed at in Beaverton.  Build a better mouse trap, they would say, and watch the market beat a path to your door.

Is it easier for a world class brand to pull off this not so common trick?  Probably not.  Most brands of that stature tend to play defense, building castles and moats that give a false sense of invincibility.  Nike has consciously chosen to keep living on the edge for forty years now, consistently putting out new stuff that the market didn't necessarily ask for, but went bananas once that same stuff hit the shelves.

The only logical explanation for this repeated phenomenon is that Apple, Nike and precious few others have made "innovation" and their respective brands synonomous.  When you hear/think the word "Nike", you expect (and accept) innovation in athletic footwear and clothing.  So the best part of this trick isn't the attempt per se, it's the almost flawless execution that really impresses.  Which also may be the reason why so many companies never get serious about innovation in the first place.  Yes, it's risky and yes, you can fail.

Nike's answer?  Just do it.