Product
A few weeks ago I had written about the crisis at Nike and the need for a “Creative CEO.”
You may recall Nike bringing in John Donahoe, a former Bain consultant and “Digital Guy” who replaced Mark Parker the “Creative Guy.”
And while the desire to modernize and streamline Nike was sound, the results were disastrous.
A destruction of value of some $28 billion. And the loss of something, that’s arguably even more valuable: cool.
This week, Nike took care of business by exiting Mr Donahue and luring back longtime Nike executive, Elliot Hill, to the top post. Mr Hill has held a variety of Nike roles in his three-decade career with the company all of which started in the Nike “Sports Graphics” department. A creative department.
All of this windup brings me to the real topic of this post: Product.
You see, as Nike turned its focus onto systems, supply chains and digital experiences, it turned its eye away from its heart and soul: sneakers.
You could say, “It’s the sneakers, stupid.” Sneakers are the thing that Nike should never lose focus on. Streamline the enterprise? Sure. Challenge distribution models? Ok. But never ignore your bread and butter. And bread and butter are products.
Products are what drives companies. Look no further than the Apple revival of 1997. Steve Jobs came back to the ailing computer company and streamlined the product portfolio adjusting the focus to making core products like Mac and PowerBook, and then innovating with iPod.
At Nissan, at the dawn of the 21st Century, then-CEO Carlos Ghosn famously proclaimed, “There is no problem at a car company that good products can’t solve.” And extremely popular and best-selling new Nissan models from Altima to Z proved this point.
Hollywood has forever been saved by a blockbuster product. Godfather for Paramount. Star Wars for 20th Century Fox. Batman for Warner Bros.
In my own personal experience, when I was CEO of TBWA\Chiat\Day NY, creative product truly changed the fortunes of the company as we pumped out incredible and award-winning work for the likes of adidas, H&M, Hilton, McDonald’s, Michelin and Nissan.
At the time, we changed a lot of systems and people — but we never lost sight and obsession with our creative product.
Product.
It’s the thing that will save Nike.
And it’s the thing that will help drive you.
What are you working on?
What’s your product?
Image: Looney Tunes, Warner Bros Entertainment
great post! Sometimes companies forget how important their product really is – if they get lost in all the marketing and social media stuff.
In my older times at P&G we used to say never to fall in love with your products.
As it might take us away from the consumers.
And from the Brand.
Brands and consumers - before products :-)
And thanks for the weekly rendez vous …