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