Maybe the company didn't change as much as the employees became entitled whiners.
18 replies (most recent on top)
Nike is a Company became the focus at the expense of all of the other maxims
@3ogx+16l0q0So: unfortunately and insider (MP) allowed all the outsiders in and ruined the culture. Nike is part of the machine now. There is a lot to be cleaned up and I think JD is on his way to doing that, all of the redundant VP's, Sr. Directors and Directors. Once he manages that initial clean-up, I hope he can put a vision in place and has the right strategists to see it through.
I worked on strategy when I was at Nike, most of the Sr. Directors I worked with didn't even know how to develop or follow through on it, It was laughable that these people were in the positions that they were in. Before moving forward on any strategy, I would always sample the people doing the direct work and a lot of them were worn out, but vision/strategy changes every few months.
To make a company/organization successful it needs to have a solid foundation, long term vision and a sound strategy to get to that vision. The people who came in to Nike over the last 10+ years had no ability to manage that. And those who did and tried to push it were pushed out because they didn't play the political game.
From an investment perspective, I think JD will do a good job at clean-up and assimilating to Wall St.
From a former employee/people perspective, very sad that the culture is no longer what it was. It was a VERY COOL place to work 10+ years ago.
“ Just my .02 cents and not worth much but here goes” - YES, I totally agree, particularly about managing up to get a leg up. I still love my job and I think I work with great people, smart, clever and business savvy. I’ve also experienced those that come into a new position only eager for the next “promotion” with little to no care expressed about mastering the role they’re in. Walk before you run. Stabilize with solid footing.
last time outsider tried to mess up the Nike culture, Phil stepped in and fixed it.
Now he is not there so if JD messes up, I don't know who will step in and fix it.
Phil is 82 and by the time they figure out JD's effort is failure then he might be 84 or 85.
It is very difficult figure out the direction that the company is going and that is main problem.
I don't think that Nike has soul nor brain. That makes them a Zombie.
Just my .02 cents and not worth much but here goes.
Nike used to be cool because of the people who worked there, now people are cool because they work at Nike. When I started, MP was CEO but you could still see Phil generally 3 days a week sitting at his table in Bowerman’s (I forgot the name) I think, the restaurant in Mia Hamm. He still had a presence and it was felt.
Now during a lot of this run, it was run by some who were deemed or were the “good ole boy network” but the bleed orange and they convinced us to as well. They didn’t brainwash us but they got us to buy into their vision. My 1st GM was the most motivating human I have ever worked for. He gave credit to everyone and always introduced all of us up the ladder. He made sure those above him knew who everyone was that worked on anything moderately successful. This lead to us not wanting to let him down or each other down. We never asked for product but it showed up. Big project deemed successful by someone higher up, a pair of shoes designed only for everyone on the team that worked on it. A great quarter, the newest jacket, etc.
Then things started to change, slowly but it was noticeable. One of Nike’s biggest faults is moving people just for the sake of change. Now the 2 hr lunch and gym session crept in. People started expecting and taking product because they worked there not because they earned it. Expense accounts being used for the wrong thing and people looking the other way. Which led to people taking the point of view of “its not my money” and having a complete disregard for budgets.
Last, and IMO, the biggest downfall was bringing outsiders in. Their was and is SOOO much talent employed there but they started looking to bring Sr Directors and higher in from the outside. The vast majority of these people had no concept of the culture at Nike. To them it was a job that looked great on their resume. They came in wanting to do things there way. Who cares how successful things were, it just had to be there way. They stopped managing down and started managing up. And with that the good ole boy network was replaced with kiss butt and play the game network that has Nike where it is.
Also, I am a woman. The network bothered me and I was passed over for someone deemed more attractive but my work still got me there. It also got me respect from my peers. But for the most part, the group I was in always did what they deemed best for Nike and not what they thought would make themselves look best.
Nike is not any different than any empire and kingdoms that needed man power when they were going up and but once they were at the top, they had to cut all the people that was part of its success.
It happens time and time again including at a corporate level.
When Reebok went down to adidas and Nike bought Converse while adidas was unreachable distance away, it became obvious that Nike need to get rid of many groups that was part of its ascendancy.
FYI, the Great Wall of China was built for that reason. When empires in China was established, the leaders(upper management) realized that they don't need all the people that was part of it growth. Since they cannot let go their former allies to their hometown (for the fear that they might start rebellion), they sent them far away to great distance for them to work and die while building the Great Wall. The Great Wall of China is also known as world's longest grave yard.
My friends, we are in that stage. At least JD will not send us to build the Great Wall and die while doing it.
While MP was doodling Nike was burning.
Knight left, things changed
Any thoughts on nike shrinking its engine so knight can sell off his shares and really retire
Nike caught lightening in a bottle with Jordan and Tiger, which raised the boats for the entire organization for a good 20+ years and cemented Nike as a premium brand. I'd say LeBron and Serena are probably the alpha Nike athletes at this point (RIP Kobe), but don't have nearly the impact that Jordan/Tiger had at their peaks. No knock on LeBron - he's the GOAT for our era - but the world has changed a lot.
I feel like Nike has a great opportunity coming out of COVID and Trump to capitalize on transforming our culture through sports and iconic athletes. Just hope they don't squander it by focusing on short term revenue to make investors happy for another quarter.
The further Phil Knight got from the CEO chair, the worse things got. That is undeniable. The reality is that Nike will never be the same. Its hard to sell a rebel or underdog image at a massive conglomerate that has been no.1 for at least 20 years. During my long tenure, the amount of unearned arrogance by many managers was absolutely astounding. This all started happening when Phil stepped down and got downright toxic through Parker's run as CEO. He made lots of money for shareholders but he destroyed the culture and the wonder of the place for those profits. I dont know many people in the Portland Metro area that consider Nike a great place to work anymore. If they have options they generally avoid it because they know its a meat grinder now.
McKinsey
@hft, we cannot ALL just make shoes. Who designs the shoes? Who build the systems that allows designers demo their designs and bring to reality? Who builds the machines used to manufacture the shoes? What about the material used to manufacture the shows? Who prices these shows so they can sell? Who markets these shows? How build the systems to do all that - price, display, market, sell, collect money, package and label, ship, communicate, returns and refuns, taxes, legal compliance, international affairs, etc? How do you get paid? How is your paycheck is accurate and timely? Is deposited to you account on time? Do you have benefits? Are these benefits all paper based? Jesus, I could go all day. IT IS NOT JUST ABOY MANKIN THE SHOE.
The top 1% of worldwide income is roughly $35,000 a year USD. Mexico's median income, for example, is in the world's upper quartile. The world's rising middle class that has discretionary income has risen by 1.5 billion this century, and their definition of what's affordable is far different than elites in America, where even minimum wage gets you in the top 15%. Contrast this with say India, where 80% of people live on less than $1.00 USD a day. White collar workers bemoan "executives" making their excess amount of money, when they are working off the backs of blue collar wage slaves, some of whom who aren't even making a dollar an hour as they work outside of the eyes of inspectors who are supposed to enforce compliance. Before they complain about the excesses of the C-Suite, most complaining here need to take a good hard look in the mirror. Are they actually making shoes? Or are they themselves fat cats enjoying the fruits of labor exploiting the back breaking work of some of the world's poorest? All First World Nike employees enjoy lofty positions in the Nike pyramid.
@ush, while I completely agree with your assessment from a demand and supply perspective, Nike, as an workplace, has changed and lost its way years before COVID-19. The identity of the company and its "leadership" has long been lost and it all started with MP who failed to uphold and enhance the culture. Under his leadership, we went from one big scandal into another. He was not a visible leader nor was he a vocal one. He did not have the foresight to see what was happening and did not do enough to stop it or prevent it. When leadership at the highest level only can about their own livelihood and their own pockets, that opens the door for cultural rot to set in. Can Nike get back to its former self? I think it can though that will require a massive shift from the current trajectory and some very tough calls to be made. Responsibility and accountability go hand-in-hand but that is not the case at Nike. It pains me to say these things and they sadden me but seriously, something has got to give.
There was a coronavirus called COVID-19 that shut down the global economy for months, causing discretionary spending to massively fall, putting many apparel retailers out of business, including Nike. Many went bankrupt, and even previously extremely profitable companies like Nike were forced to cut perks, entitlements, and layoff people for demand that was no longer there, because their structure and gross profit margin was predicated on the previous demand that they had assumed would only go up. Just like the rest of retail, as profit margins go down, the benefits enjoyed by employees go down as well. The luxury premium consumers are willing to spend on goods that are made by foreign laborers who in uncovered scandals sometimes make less than a dollar an hour no longer exists.