The Creative CEO Theory at Work
I’m a firm believer in the power of creativity — especially in the CEO’s office.
Swoosh? More like smushed.
Nike has lost $112 billion dollars in market capitalization since January 2020.
Since that time the Dow Jones is up 39%. The S&P is up 41%. The Nasdaq is up 53%.
But Nike is down 30%.
So what’s the difference between now and then?
Well, for one, Nike changed CEOs.
John Donahoe replaced Mark Parker.
John Donahoe is known as a “Digital guy.”
Mark Parker was a “Creative.”
And in making this change, Nike took their eye off the ball. Literally. They went from focusing on athletes and product to focusing on digital transformation and performance marketing.
I have a theory about this. It’s all about what I call, the “Creative CEO.”
A Creative CEO is a leader who prioritizes the assets of a business beyond the numbers. (Knowing that these assets drive the numbers).
It’s a different point of view.
It begins with a creative’s need to simplify. As in what’s a business?
For a Creative CEO it’s as simple as: People, Process and Product. And if all is aligned that leads to Profit.
Now, if that third P, Product, isn’t insanely great — a Creative CEO knows there’s a real problem.
This has been true for Nike. The sneaker product has been good, but not insanely great.
Also, focus on digital transformation has come at the expense of a more generic retail experience (and the shopping experience is something Nike has traditionally been insanely great at).
Want some more Creative CEO thinking?
Creative CEOs put a premium and priority on creating a Vision — and executing to it.
When Mark Parker was in charge, he re-committed to the Nike founders’ original Vision expressed as the “11 Maxims.”
It is our nature to innovate.
Nike is a company.
Nike is a brand.
Simplify and go.
The consumer decides.
Be a sponge.
Evolve immediately.
Do the right thing.
Master the fundamentals.
We are on the offense—always.
Remember the man (the late Bill Bowerman, Nike co-founder)
And under Parker there was relentless innovation and creativity which ultimately yielded a steady and strong profit.
Nike is still the number one brand in all of sport.
And they will no doubt bounce back.
In fact, Nike launched a return to form of sorts with their recent Olympics advertising.
Could this be a sign that Mr Donahoe is starting to become a “Creative CEO?”
Image: Mark Parker, Nike
With the “reasonable people can differ” exception that I’m no fan of “Bad Person” (and with the exception within the exception for Dafoe’s exceptional voiceover performance) this is big picture thinking that goes far, far beyond a single company, or even category.
You’re also in big shoes company on this: Peter Drucker famously opined that innovation and marketing were the only two real sources of profit for a company, and I think your “insanely great” quality characterization worships in the same church, if not precisely the same pew.
Well said and this still sounds like solid advice - https://www.inc.com/mikael-cho/how-steve-jobs-saved-nike-and-apple-with-one-simple-piece-of-advice.html