Nike's Management Philosophy Revealed

Ever since I bought my first pair of spikes in 1982, Nike has been my favourite brand. 32 years later and I admire them just as much ~ although today I am more impressed by their management philosophy than I am by their shoes. There has been many great books and papers written about them, most of which I have probably read ~ but little has been written about their management style, which I discovered today...

Closer inspection of Nike’s CSR report revealed to me that the core driving force behind Nike's management team are 1 simple mission statement, 11 maxims and 4 core values. Nothing complicated. And nothing over-indulgent or laden with buzz-words. Just a simple set of words and statements. They obviously work, as they have been at the core of the Nike management program almost since the company was founded in 1964. I had never seen them before, so as much for my own amusement as anyone else's ~ I thought I'd share them here. Maybe you will find them interesting too...

Nikes Mission Statement

To bring inspiration and innovation to every athlete* in the world.
*If you have a body, you are an athlete.

[Reportedly the asterisked clarification came from co-founder Bill Bowerman].

In addition to their mission statement, Nike has a set of guiding principles which it refers to as its “11 Maxims”. They aim to guide employees at all levels as they go about their work and represent the brand globally.

Nike’s 11 Management Maxims

1. “It is our nature to innovate.” The company sees innovation as one of its core organizational competencies.
2. “Nike is a company.”
3. “Nike is a brand.” The “swoosh” logo is instantly recognizable around the world. Nike sees this as the symbol of its global leadership. It will enter only those markets that it thinks it can dominate. It says: ‘lf we can’t lead it, we don’t need it.”
4. “Simplify and go.” Nike products have short life-cycles in terms both of technology and fashion. The company believes that making quick yet skilful decisions is key to its success. This aspect of Nike’s vision, together with the seventh maxim, is particularly powerful in articulating the company’s hugely successful use of emergent strategy.
5. “The consumer decides.” The company is keenly aware of the sophistication of its customers and it treats them as its key stakeholder.
6. “Be a sponge.” Employees at Nike are encouraged to be curious and open to new ideas, whatever their source.
7. “Evolve immediately.” Nike sees itself as being in perpetual motion–viewing change as a key source of innovation. This attitude can easily be observed in the wide range of products that Nike offers its consumers. It is another example of the company’s use of emergent strategy to good effect.
8. “Do the right thing.” (Even when it's the hard thing). Nike thinks of itself as a responsible global citizen, embracing the stakeholder view of corporate social responsibility. It encourages its people to be honest and transparent and to promote diversity and sustainability.
9. “Master the fundamentals.” All the innovation in the world is useless if you can’t put it into action. A crucial part of Nike’s success is its ability to refine its performance–the recent growth in profits suggests that it’s achieving this.
10. “We are on the offense–always.” To stay ahead in an extremely competitive environment, Nike urges its people to act like leaders in their field to achieve victory.
11. “Remember the Man.” The late Bill Bowerman is still held in high esteem throughout Nike, both for his understanding of athletes’ needs and for his innovative spirit.

Additionally, Nike developed what it calls its Manager Manifesto, which is a set of core principles that describe how Nike managers lead with excellence. These core principles are:

Nikes Core Management Values

• Lead
• Coach
• Manage
• Inspire

[In that order].

Like all good values, manifesto’s and maxim’s, each leader at Nike is encouraged to find their own interpretation of what this all means. To many outsiders, they just look like a bunch of clever words or slogans that would not be out of place on a motivational poster. But to the executives at Nike, they represent everything that the brand stands for ~ and that's why I like them. They remind me of that old cheesy saying,

What you stand for is more important than what you sell”...