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%, and 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.
Mark Parker, Nike
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.”
For a Creative CEO, it’s as simple as: People, Process, and Product. And if all is aligned that leads to Profit.
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?”
Rob Schwartz is the Chair of the TBWA New York Group and an executive coach who channels his creativity, experience and wisdom into helping others get where they want to be. This was originally posted on his Substack, RobSchwartzHelps, where he covers work, life, and creativity.
Header image: Unsplash+ in collaboration with Getty Images.